PMP Exam Preparation Course Page 1 Project Management Professional Exam Preparation Course
Oct 28, 2014
PMP Exam Preparation Course Page 1
Project Management Professional
Exam Preparation Course
Copyrights
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This book is produced by Techno Management®, a project management
consulting company, registered in Canada. This document may not be
reproduced, stored in a retrieval system, or transmitted in whole or in part, in
any form or by any means, electronic, mechanical, photocopying, recording,
or otherwise, without the prior written permission of Techno Management®.
PMBOK and PMP are trademarks registered by the Project Management
Institute (PMI) in the United States and other nations.
1- Introduction
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Table of Contents 1. Introduction ............................................................................................................ 5
2. Project Management Framework ........................................................................... 7 2.1 TERMS AND DEFINITIONS .................................................................................................. 7 2.2 COMPARATIVE OVERVIEW ................................................................................................ 9 2.3 PROJECT CHARACTERISTICS ............................................................................................ 9 2.4 PROJECTS VS. OPERATIONAL WORK: .............................................................................. 11 2.5 PROJECT CONSTRAINTS ................................................................................................. 11 2.6 ROLE OF A PROJECT MANAGER ....................................................................................... 14 2.7 PROJECT STAKEHOLDERS .............................................................................................. 14 2.8 PROJECT ORGANIZATION STRUCTURE ............................................................................ 15 2.9 ORGANIZATIONS CHARACTERISTICS ................................................................................ 18 2.10 LIFE CYCLES AND PROCESS GROUPS ............................................................................. 19 2.11 PROCESS GROUPS ........................................................................................................ 19 2.12 INTERACTION BETWEEN PHASES ..................................................................................... 20 2.13 PMI KNOWLEDGE AREAS ............................................................................................... 21
3. Project Initiation Phase ........................................................................................ 29 3.1 DEVELOP PROJECT CHARTER ......................................................................................... 30 3.2 IDENTIFY STAKEHOLDERS ............................................................................................... 35
4. Project Planning Phase ......................................................................................... 40 4.1 DEVELOP PROJECT MANAGEMENT PLAN ......................................................................... 41 4.2 COLLECT REQUIREMENTS .............................................................................................. 45 4.3 DEFINE SCOPE .............................................................................................................. 51 4.4 CREATE WBS ................................................................................................................ 58 4.5 DEFINE ACTIVITIES ......................................................................................................... 63 4.6 SEQUENCE ACTIVITIES ................................................................................................... 69 4.7 ESTIMATE ACTIVITY RESOURCES .................................................................................... 75 4.8 ESTIMATE ACTIVITY DURATIONS ..................................................................................... 80 4.9 DEVELOP SCHEDULE ...................................................................................................... 85 4.10 ESTIMATE COSTS ........................................................................................................... 94 4.11 DETERMINE BUDGET .................................................................................................... 100 4.12 PLAN QUALITY ............................................................................................................. 104 4.13 DEVELOP HUMAN RESOURCE PLAN .............................................................................. 117 4.14 PLAN COMMUNICATIONS............................................................................................... 123 4.15 PLAN RISK MANAGEMENT ............................................................................................. 129 4.16 IDENTIFY RISKS............................................................................................................ 133 4.17 PERFORM QUALITATIVE RISK ANALYSIS ........................................................................ 139 4.18 PERFORM QUANTITATIVE RISK ANALYSIS ...................................................................... 144 4.19 PLAN RISK RESPONSES ............................................................................................... 149 4.20 PLAN PROCUREMENTS ................................................................................................. 155
5. Project Execution Phase ..................................................................................... 167 5.1 DIRECT AND MANAGE PROJECT EXECUTION .................................................................. 168 5.2 PERFORM QUALITY ASSURANCE ................................................................................... 172 5.3 ACQUIRE PROJECT TEAM ............................................................................................. 176 5.4 DEVELOP PROJECT TEAM ............................................................................................. 180 5.5 MANAGE PROJECT TEAM .............................................................................................. 187 5.6 DISTRIBUTE INFORMATION ............................................................................................ 191 5.7 MANAGE STAKEHOLDER EXPECTATIONS ....................................................................... 194 5.8 CONDUCT PROCUREMENT ............................................................................................ 197
1- Introduction
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6. Project Monitor and Control Phase .................................................................... 203 6.1 MONITOR AND CONTROL PROJECT WORK ..................................................................... 204 6.2 PERFORM INTEGRATED CHANGE CONTROL ................................................................... 207 6.3 VERIFY SCOPE ............................................................................................................. 210 6.4 CONTROL SCOPE ......................................................................................................... 212 6.5 CONTROL SCHEDULE ................................................................................................... 216 6.6 CONTROL COSTS ......................................................................................................... 219 6.7 PERFORM QUALITY CONTROL ....................................................................................... 231 6.8 REPORT PERFORMANCE............................................................................................... 241 6.9 MONITOR AND CONTROL RISKS .................................................................................... 246 6.10 ADMINISTER PROCUREMENTS ....................................................................................... 250
7. Project Closing Phase ........................................................................................ 254 7.1 CLOSE PROJECT OR PHASE.......................................................................................... 255 7.2 CLOSE PROCUREMENT ................................................................................................. 258
8. Appendix-1 Case Study ..................................................................................... 261
9. Appendix-2 Exercise Forms .............................................................................. 262 9.1 PROJECT CHARTER ...................................................................................................... 262 9.2 SCOPE STATEMENT ..................................................................................................... 263 9.3 ASSUMPTION LIST ........................................................................................................ 264 9.4 WORK BREAKDOWN STRUCTURE .................................................................................. 265 9.5 ACTIVITY LIST, RESOURCE ASSIGNMENT, DEPENDENCY & TIME ESTIMATE ..................... 266 9.6 QUALITY MANAGEMENT PLAN ....................................................................................... 267 9.7 RISK ANALYSIS ............................................................................................................ 268 9.8 RISK ANALYSIS ............................................................................................................ 269 9.9 CHANGE CONTROL....................................................................................................... 270
10. Appendix-3 List of Figures ............................................................................. 271
11. Appendix-4 List of Tables .............................................................................. 274
12. Appendix-5 List of Exercises .......................................................................... 275
13. Appendix-6 List of Group Discussions........................................................... 276
1- Introduction
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1. Introduction
This book is directed to the project management professionals who are seeking the Project Management Professional certification. It covers al the material that needed to be covered to help passing the PMP exam and covered in the PMBOK®. The approach taken here to present the material is different than the one taken in the PMBOK® in that the material goes through the project phase rather than the knowledge areas. This will help presenting the knowledge in a better logical flow that will make it more clear and logical to understand. This book addresses the practical side of the project management by having a case study that will be taken from the very initial project stage to its completion. This will bone through comprehensive group workshops that will facilitate explaining the material in a clear and practical approach. The book is structured as follow:
1- Project Framework 2- Project Initiation Phase 3- Project Planning Phase 4- Project Executing Phase 5- Project Monitor and Control Phase 6- Appendix-1, Case Study 7- Appendix-2, Exercise Forms 8- Appendix-3, List of Figures 9- Appendix-4, List of Tables 10- Appendix-5, List of Exercises 11- Appendix-6, List of Group Discussions
1- Introduction
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Group Discussion 1-1-Student’sExpectations
Group Discussion 1.1– Student’s Expectations Please write down your expectations out of the course. This sheet will be collected, compiled to produce the overall class expectations and will be reviewed by the end of the course.
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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2. Project Management Framework
This section provides an introduction to the key concepts covered by the PMBOK® Guide. These concepts are valid to manage any project in any size. It will cover the following areas:
1- The purpose of the PMBOK® Guide 2- Project definition 3- Project management definition 4- Relationship among the Project Management, Program
management and Portfolio Management 5- Project Management and Operations Management 6- The role of the project manager 7- Project management body of knowledge
2.1 Terms and Definitions
1. Project A project is a temporary endeavor undertaken to create a unique product or service. (Source: PMBOK® Guide - Fourth Edition, page 5) A project is a sequence of unique and connected activities having one goal that must be completed by a specific time, within a budget and according to specification.
2. Program A program is a group of related projects managed in a coordinated way to obtain benefits not available from managing them individually. (Source: PMBOK® Guide - Fourth Edition, page 9)
3. Portfolio
A program is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. (Source: PMBOK® Guide - Fourth Edition, page 8)
4. Project management
Project management is the application of knowledge, skills, tools, and techniques to project activities to meet projects requirements. (Source: PMBOK® Guide – Release 4, page 6)
5. Project Portfolio Management
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Project portfolio management refers to the selection and support of projects or program investments, which are guided by the organization's strategic plan and available resources.
6. Standards It is a document established by consensus and approved by recognized body that provides for common and repeated use rules, guidelines and regulations. They are imposed requirement which specifies product, process or service characteristics.
7. Project Management Office A project management office (PMO) is an organizational unit to centralize and coordinate the management of projects under its domain. PMOs can operate on a continuum, from providing project management support functions in the form of training, software, standardized policies, and procedures, to actual direct management and responsibility for achieving the project objectives. (Source: PMBOK® Guide – Release 4, page 11)
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2.2 Comparative Overview
PROJECT PROGRAMS PORTFOLIOS
Scope Project have defend objectives, Scope is progressively elaborated throughout the project life cycle
Programs have a larger scope and provide more significant benefits.
Portfolios have a business scope that change with the strategic goals of the organization.
Change Project managers expect change and implement processes to keep change managed and controlled.
The program manager must expect change from both inside and outside the program and be prepared to manage it.
Portfolio managers continually monitor changes in the broad environment.
Planning Project mangers progressively elaborate high-level information into detailed plans throughout the project life cycle.
Program managers develop the overall program plan and create high-level plans to guide detailed planning at the component level.
Portfolio managers create and maintain necessary processes and communication relative to the aggregate portfolio.
Management Project managers manage the project team to meet the project objectives
Program managers manage the program staff and the project managers; they provide vision and overall leadership.
Portfolio managers may manage or coordinate portfolio management staff.
Success Success is measured by product and project quality, timeliness, budget compliance, and degree of customer satisfaction.
Success is measured by the degree to which the program satisfies the needs and benefits for which it was undertaken.
Success is measured in terms of aggregate performance of portfolio components.
Monitoring Project managers monitor and control the work of producing the products, service or results that the project was undertaken to produce.
Program managers monitor the progress of program components to ensure the overall goals, schedules, budget, and benefits of the program will be met.
Portfolio managers monitor aggregate performance and value indicators.
Table 2-1- Comparative Overview
Source: PMBOK® Guide - Fourth Edition, page 9
2.3 Project Characteristics
Projects vary in size and complexity. Regardless the project nature, they all share common characteristics that should be maintained throughout the project life cycle. These characteristics are:
Unique. There is no two identical projects
One time efforts. No second chance.
Defined duration
Defined output
Defined Budget
Use Resources
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Group Discussion 2-1- Which one is not a project
Group Discussion 2.1 – Which one is not a project? Which one of the following list is not a project? I.e. does not match the project definition criteria? Justify your answers:
1. Building a bridge. 2. Painting the house. 3. Learning Tango dance. 4. Having a Family. 5. Implementing National Social Number. 6. Preparing a morning coffee.
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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2.4 Projects vs. Operational Work:
Projects in nature are one time effort, as opposed to operations, which is a repetitive effort that is systematically repeated on periodical way. Although they are different in their nature, and hence in the way they are managed, yet they share the following characteristics:
Performed by people
Constrained by limited resources
Planned, executed, and controlled. Also, Projects and operations differ in that:
Operations are ongoing and repetitive, while projects are temporary and unique.
Operational work can be thought of repetitive work that each one is comprised of many related small projects.
2.5 Project Constraints
They are the known factors that limit the project teams’ options. Three main constraints from which, other derivates are produced:
1- Time (Schedule) 2- Budget (Cost) 3- Specifications (Quality)
Project Success Criteria Projects are said to be successful when the project team manages to complete the project within the agreed upon (contracted) constrains. Generally speaking the project is successful if it is completed:
Within time (schedule)
Within cost (budget)
Within specifications (requirements)
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A project may be sensitive to one of those constraints, but once contract is signed, they are all important and the project manager should adhere to all constraints.
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Group Discussion 2-2-Project Constraints
Group Discussion 2.2– Project Constraints From your perspective, and considering the nature of business of your organization, which of the following constraints is more important?
1. Cost 2. Time 3. Budget
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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2.6 Role of a Project Manager
The project manager is the maestro who orchestrates all the project activities. By doing the analogy with the maestro, the project team will never perform in harmony unless the project manager leads the team and guides each team member to his / her role of the project. The project manager job is a full time job that requires the project manager doing many activities that are not limited to, but include the following:
Acts as the single point of contact on the project.
Planning and organizing the work
Managing the day-to-day activities of a project
Delivering the project deliverables to the client
Identifying potential stakeholders
2.7 Project Stakeholders
Projects are done by people, for people to produce products that will be used by other people. The combined people of these three groups (done by, for, to be used) is called “Stakeholders”. Stakeholders are defined as “any one impacts the project positively or negatively”. The stakeholder list includes, but not limited to:
Project Manager
Customer
Performing organization, owners, government agencies
Project Sponsor
Developing Team
Internal external users
End user
Society, citizens
Others: owners, funders, suppliers It is the project manager’s responsibility to identify the project stakeholders, as he will need to communicate with them throughout the project life cycle. Missing any stakeholders may lead to miscommunication problems that may jeopardize the project success.
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2.8 Project Organization Structure
Organization structure influences the way how projects are managed. The degree of the project management maturity and its project management system also has a high impact on the project success. Organization structure is an organizational environmental factor which affects the resources availability and how they are controlled. It also affects the degree of the authorities of the project manager in the decision making process. Below are the basic organization structures that PMBOK® Guide identifies:
Functional
Matrix
Weak matrix
Balanced matrix
Strong matrix
Projectized
Composite The PMBOK® Guide is addressing the “Project” organization structure and not the “Company” organization structure. Most companies are based on Functional organization structure, but a project manager in this company can manage a project(s) based on Functional project organization and at the same time other project(s) based on Matrix organization structure.
2.8.1 Functional Project Organization
This is the classical functional organization. In this structure, each employee has one clear superior. Staff members are grouped by specialty area that is called departments or divisions. These areas may be divided further down to a lower level of hierarchy, but they all share the fact that each employee has one clear superior.
Figure 2-1- Functional Origination
Source: PMBOK® Guide - Fourth Edition, page 29
Staff
Chief Executive
Officer
Staff
Functional
Manager 3
Functional
Manager 2
StaffStaff
Staff
Staff
Functional
Manager 1
Staff
Staff
Staff
Project Coordination
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2.8.2 Matrix Organization
Projects that need to be implemented and managed across divisions need an organizational model that allows communication across divisions. The classical functional organizational will not fit here, as communication between the project manager and the team members should be very fast and does not tolerate the bureaucracy of the functional organization. A new organizational structure is applied here. It is called Matrix, as it works across organization in rows and columns like the mathematical matrix structure. There are three types of matrix organizations:
1. Weak 2. Strong 3. Balanced
1- Weak Matrix Organization In this organizational structure, many of the functional organization features are maintained. The project manager role is more of a coordinator or expeditor. The project manager can work in this model on part time basis.
Figure 2-2- Weak Matrix Origination
Source: PMBOK® Guide - Fourth Edition, page 29
2- Strong Matrix Organization This structure requires a full time project manager with considerable authority. Based on the project size, he may be assisted with a full time administrative staff to help in the different project administration functions. This model fits with projects that need high authority project manager. In many cases, the company needs to be structured in a
Staff
Chief Executive
Officer
Staff
Functional
Manager 3
Functional
Manager 2
StaffStaff
Staff
Staff
Functional
Manager 1
Staff
Staff
Staff
Project Coordination
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certain way to serve this model. A PMO “Project Management Office” is an example of this implementation.
Figure 2-3- Strong Matrix Origination
Source: PMBOK® Guide - Fourth Edition, page 30
3- Balanced Matrix Organization This model does not provide a full authority to the project manager, yet, it gives him/her enough authority to manage the resources. This model fits with projects that require managing projects across divisions and do not need a high authority project manager.
Figure 2-4- Balanced Matrix Origination
Source: PMBOK® Guide - Fourth Edition, page 30
Staff
Staff
Staff
Staff
Staff
Staff
Project Coordination
Project Manager
Project Manager
Project Manager
Staff
Chief
Executive
Officer
Staff
Functional
Manager 3
Functional
Manager 2
Staff
Functional
Manager 1
Manager of
Project Managers
Staff
Chief Executive
Officer
Staff
Functional
Manager 3
Functional
Manager 2
StaffProject Manager
Staff
Staff
Functional
Manager 1
Staff
Staff
Staff
Project Coordination
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2.8.3 Projectized Organization
This is the model that the project manager exercises the highest level of authority. Most of the company employees are co-located and involved in the project work.
Figure 2-5- Projectized Origination
Source: PMBOK® Guide - Fourth Edition, page 31
2.9 Organizations Characteristics
Functional Matrix Projectized
Weak Balanced Strong
Project Manager’s Authority
Little or None Limited Low to Moderate
Moderate to High
High to Almost Total
Resource Availability
Little or None Limited Low to Moderate
Moderate to High
High to Almost Total
Who controls the Budget?
Functional Manager
Functional Manager
Mixed Project Manager
Project Manager
Project manager’s role
Part-Time Part-Time Full-Time Full-Time Full-Time
PM admin. Staff Part-Time Part-Time Part-Time Full-Time Full-Time
Table 2-2- Organizational Influence on Projects
Source: PMBOK® Guide - Fourth Edition, page 28
Staff
Chief Executive
Officer
Staff
Project
Manager 3
Project
Manager 2
Staff
Staff
Project
Manager 1
Staff
Staff
Staff
Project Coordination
Staff
Staff
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2.10 Life Cycles and Process Groups
Projects are exactly like people. They grow over time. They are created (incepted), grow (managed) and die (close out). This forms a typical life cycle that projects go through. There two interdependent life cycles:
1- Project Life Cycle 2- Project Management Life Cycle
2.10.1 The Project Life Cycle
This is a product based cycle, through which the product of the project goes through. People involved in this are technical people (accountants, engineers, programmers, architect, lawyers etc.) They need to have a strong technical knowledge in their expertise area and they do not need to possess strong project management knowledge, although having it is a plus.
Figure 2-6- Project Life Cycle
2.10.2 The Project Management Life Cycle
This is a project based cycle, through which the project goes through. The project manager will manage the project based on this cycle. Each phase will contain many project management activities. Project managers need to have a strong knowledge in the different project management knowledge areas, and do not need, although will be a plus, to have a strong business knowledge.
Figure 2-7- Management Project Life Cycle
2.11 Process Groups
1- Initiating Process Group. Defines and authorizes the project or a project phase.
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2- Planning Process Group. Defines and refines objectives, and plans the course of action required to attain the objectives and scope that the project was undertaken to address. 3- Executing Process Group. Integrates people and other resources to carry out the project management plan for the project 4- Monitoring and Controlling Process Group. Regularly measures and monitors progress to identify variances from the project management plan so that corrective actions can be taken when necessary to meet project objectives. 5- Closing Process Group. Formalizes acceptance of the product, service or result and brings the project or a project phase to an orderly end.
Figure 2-8- Project Process Groups
2.12 Interaction between Phases
The process groups explained above are not to be performed one time only across the project life cycle, but also will be done within each project phase. From the project management perspective, each phase is treated as a complete project that includes all the project management process groups as illustrated in the following figure.
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Figure 2-9- Project Process Groups Interaction
Process groups are not discrete. In other words, they should not be done and completed sequentially. There are some overlaps between them as illustrated in the following figure.
Figure 2-10- Process Group Overlapping
2.13 PMI Knowledge Areas
Project Management Institute (PMI) defined the following knowledge areas that are needed to be known by the professional project managers:
1- Project Integration Management 2- Project Scope Management 3- Project Time Management 4- Project Cost Management 5- Project Quality Management 6- Project Human Resources Management 7- Project Communication Management 8- Project Risk Management 9- Project Procurement Management
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On top of the above areas, the “Professional Responsibility” supplement was
added. It is not considered as a tenth area, but will be included in the PMP
exam preparation test with a relatively low weight.
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Project Management Process Groups and Knowledge Area Mapping Note: Numbering starts form 4, to match the numbering of the PMBOK® Guide
Knowledge Areas
Project Management Process Groups
Initiating Process Group
Planning Process Group
Executing Process Group
Monitoring & Controlling
Process Group
Closing Process Group
4. Project Integration Management
4.1 Develop Project Charter
4.2 Develop Project Management Plan
4.3 Direct and Manage Project Execution
4.4 Monitor and Control Project Work 4.5 Perform Integrated Change Control
4.6 Close Project or Phase
5. Project Scope Management
5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS
5.4 Verify Scope 5.5 Control Scope
6. Project Time Management
6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule
6.6 Control Schedule
7. Project Cost Management
7.1 Estimate Costs 7.2 Determine Budget
7.3 Control Costs
8. Project Quality Management
8.1 Plan Quality
8.2 Perform Quality Assurance
8.3 Perform Quality Control
9. Project Human Resource Management
9.1 Develop Human Resource Plan
9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team
10. Project Communications Management
10.1 Identify Stakeholders
10.2 Plan Communications
10.3 Distribute Information 10.4 Manage Stakeholder Expectations
10.5 Report Performance
11. Project Risk Management
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 Monitor and Control Risks
12. Project Procurement Management
12.1 Plan Procurements
12.2 Conduct Procurements
12.3 Administer Procurements
12.4 Close Procurements
Table 2-3- Project Management Process Groups and Knowledge Area Mapping
Source: PMBOK® Guide - Fourth Edition, page 43
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Initiating Process Group 4.1 Develop Project Charter 10.1 Identify Stakeholders
Figure 2-11- Initiating Process Group
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Planning Process Group 4.2 Develop Project Management Plan 5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 7.1 Estimate Costs 7.2 Determine Budget 8.1 Plan Quality 9.1 Develop Human Resource Plan 10.2 Plan Communications 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 12.1 Plan Procurements
Figure 2-12- Planning Process Group
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Executing Process Group 4.3 Direct and Manage Project Execution 8.2 Perform Quality Assurance 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team 10.3 Distribute Information 10.4 Manage Stakeholder Expectations 12.2 Conduct Procurements
Figure 2-13- Executing Process Group
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Monitoring & Controlling Process Group 4.4 Monitor and Control Project Work 4.5 Perform Integrated Change Control 5.4 Verify Scope 5.5 Control Scope 6.6 Control Schedule 7.3 Control Costs 8.3 Perform Quality Control 10.5 Report Performance 11.6 Monitor and Control Risks 12.3 Administer Procurements
Figure 2-14- Monitor and Control Process Group
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Closing Process Group 4.6 Close Project or Phase 12.4 Close Procurements
Figure 2-15- Closing Process Group
Project Management Process Interaction
Figure 2-16- Project Management Process Interaction
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3. Project Initiation Phase
Project initiation phase is the phase in which the project idea is incepted and a
decision is made whether the project will be selected by the organization for
implementation or will be postponed for a later date or will be rejected. This
phase combines the following two processes, within the initiation process
group:
4.1 Develop Project Charter 10.1 Identify Stakeholders
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3.1 Develop Project Charter
Figure 3-1- Develop Project Charter Process
Source: PMBOK® Guide – Fourth Edition, page 73
Definition Develop Project Charter is the process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholders' needs and expectations.
Source: PMBOK® Guide – Fourth Edition, page 73
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Process Interaction
Figure 3-2 - Develop Project Charter – Process Interaction
3.1.1 Inputs to Develop Project Charter
1. Project statement of work 2. Business case 3. Contract (if available) 4. Enterprise environmental factors 5. Organizational process assets
1. Project statement of work Statement of work is the document that describes the project work. It contains the following:
Business needs
Product scope description
Strategic plan
2. Business case It is the document that includes the necessary information from the business perspective. It contains:
Market demand
Organizational need
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Customer request
Technologies advance
Legal requirement
Ecological impacts
Social need
3. Contract (if available) A contract from the customer’s acquiring organization is an input if the project is being done for an external customer.
4. Enterprise environmental factors
Governmental or industry standards
Organization infrastructure
Marketplace conditions
5. Organizational process assets
Organizational standard processes, policies, and standardized process definitions for use in the organization
Templates (e.g. project charter template)
Historical information and lessons learned knowledge base
3.1.2 Tools and Techniques for Develop Project Charter
1. Expert judgment
1. Expert judgment Expert judgment is used to assess the input used to develop the charter. The expertise is obtained from:
Other units from the organization
Consultants
Stakeholders, including customers or sponsors
Professional and technical associations
Industry groups
Subject matter experts
Project management office (PMO)
3.1.3 Outputs of Develop Project Charter
1. Project charter
1. Project charter The project charter documents the business needs and the current customer requirements by addressing:
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Project purpose or justification
Measurable project objectives and related success criteria
High-level requirements
High-level project description
High-level risks
Summary milestone schedule
Summary budget
Project approval requirements (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.
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Exercise 3-1 - Develop Project Charter
Exercise 3.1 – Develop Project Charter In the provided case study in Appendix 1, develop the project charter. Note: use the following form.
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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3.2 Identify Stakeholders
Figure 3-3- Identify Stakeholders Process
Source: PMBOK® Guide – Fourth Edition, page 246
1.Project charter
2.Procurement
documents
3.Enterprise
environmental
factors
4.Organizational
process assets
Inputs
1.Stakeholder
analysis
2.Expert judgment
Tools &
Techniques
1.Stakeholder
register
2.Stakeholder
management
strategy
Outputs
Definition Identify Stakeholders is the process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success.
Source: PMBOK® Guide – Fourth Edition, page 246
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Process Interaction
Figure 3-4 Identify Stakeholders – Process Interaction
Dimensions of Communication Activities The project manager is the center of the communication hub within the project. He communicates will all project stakeholders in many different levels, as follows:
Internal and External
Formal and Informal
Vertical and Horizontal
Official and unofficial
Written and Oral
Verbal and Non-Verbal
3.2.1 Inputs to Identify Stakeholders
1. Project charter 2. Procurement documents 3. Enterprise environmental factors 4. Organizational process assets
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3.2.2 Tools and Techniques for Identify Stakeholders
1. Stakeholder analysis 2. Expert judgment
1. Stakeholder analysis It is the technique of systematically gathering and analyzing qualitative and quantitative information to determine whose interest should be taken into account. It defines the interest, expectations and influence of stakeholders and relate them to the purpose of the project.
Steps of Stakeholders Analysis Step 1: Identify all potential project stakeholders and relevant information. Step 2: Identify the potential impact or support each stakeholder could generate:
Power/interest grid
Power/influence grid
Influence/impact grid
Salience model Step 3: Assess how key stakeholders are likely to react or respond in various situations.
Power / Interest Grid Power interest grid is the method of grouping the stakeholders based on their level of authority (power) and their level of concern (interest) regarding the project outcome.
Figure 3-5 Power / Interest Grid
2. Expert judgment
Keep
Satisfied
Monitor Keep
Informed
Manage
Closely
Interest
Power
LowHigh
High
GF
A
D
H
B
E
C
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Identifying the project stakeholders requires high level of knowledge and expertise in order not to miss any one who could be with an important role in the project and missing him/her may damage the project outcome. Experts include, but not limited to the following:
Senior management
Other units within the organization
Identified key stakeholders
Project managers who have worked on projects in the same area
Subject matter experts (SMEs) in business or project area
Industry groups and consultants, and
Professional and technical associations
3.2.3 Outputs of Identify Stakeholders
1. Stakeholder register 2. Stakeholder management strategy
1. Stakeholder register Stakeholder register is the repository that contains all the details about each stakeholder, including the following:
Identification information
Assessment information
Stakeholder classification
2. Stakeholder management strategy Based in the identified stakeholders, included in eth stakeholders’ register, a strategy will be assigned to each key stakeholder. The strategy will include elements such as:
Key stakeholders who can significantly impact the project
Level of participation in the project desired for each identified stakeholder, and
Stakeholder groups and their management (as groups)
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Exercise 3-2 - Stakeholder Analysis
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 3.2 – Stakeholder Analysis In the provided case study, analyze the stakeholder and communication needs by providing the following information:
1. Stakeholder 2. Organization 3. Position 4. Communication Needs
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4. Project Planning Phase
Project planning phase is the phase where all the project plans are created. It is the time where all project activities are identified, assigned and scheduled. During the phase, the following twenty planning processes are executed:
4.2 Develop Project Management Plan 5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 7.1 Estimate Costs 7.2 Determine Budget 8.1 Plan Quality 9.1 Develop Human Resource Plan 10.2 Plan Communications 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 12.1 Plan Procurements
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4.1 Develop Project Management plan
Figure 4-1 - Develop Project Management plan Process
Source: PMBOK® Guide – Fourth Edition, page 78
1.Project charter
2.Outputs from
planning
processes
3.Enterprise
environmental
factors
4.Organizational
process assets
Inputs
1.Expert judgment
Tools &
Techniques
1.Project
management
plan
Outputs
Definition Develop Project Management Plan is the process of documenting the actions necessary to define, prepare, integrate and coordinate all subsidiary plans.
Source: PMBOK® Guide – Fourth Edition, page 78
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Process Interaction
Figure 4-2 Develop Project Management plan – Process Interaction
4.1.1 Inputs to Develop Project Management plan
1- Project charter 2- Outputs from all planning processes 3- Enterprise environmental factors 4- Organizational process assets
4.1.2 Tools and Techniques for Develop Project Management plan
1- Expert judgment
1. Expert judgment In this process, expert judgment is utilized to:
Tailor the process to meet the project needs
Develop technical and management details
Determine the requires resources and skill levels
Define the required level of configuration management
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4.1.3 Outputs of Develop Project Management plan
1- Project management plan
1. Project management plan The project management plan integrates and consolidates all of the subsidiary management plans and baselines from the planning processes and includes the project baseline and subsidiary plans Project Baseline Project baselines include, but are not limited to:
Schedule baseline
Cost performance baseline, and
Scope baseline Subsidiary Plans Subsidiary plans include, but are not limited
Scope management plan
Requirements management plan
Schedule management plan
Cost management plan
Quality management plan
Process improvement plan
Human resource plan
Communications management plan
Risk management plan
Procurement management plan
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Exercise 4-1 - Change Management Process
Exercise 4.1 – Change Management Process Change management plan is part of the overall project plan, discuss the below change management process and reflect it to your environment.
Initial assessment,
appoint assessor
Analysis,
evaluation, assess
Impact
Complete chg. req.
Impact Study
Agree Make changes
File Change
Request
Initial review &
discussion
Discuss/ negotiate
with Tech.Lead
Call Change Mgnt.
Meeting
Agree
Stop
Raise Change
Request Form
START
Tech. Lead
Assessor
Assessor
Review assessment
Tech. Lead
Yes
No Impact
Dev. Team
Stop
Initiator
Yes
No
No
Yes
Change has an Impact
Amend Agreements
Update Proj. Plan
Re-baseline
Will it affect
Cost or
timescales
No
Change Reqest
Endorsement by
Steering Committee
Yes
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4.2 Collect Requirements
Figure 4-3- Collect Requirements Process
Source: PMBOK® Guide - Fourth Edition, page 105
4.2.1 Inputs to Collect Requirements
1- Project Charter 2- Stakeholder Register
1- Project Charter: is used to provide the high-level project requirements that can be developed.
2- Stakeholder Register: is used to identify stakeholders that can provide information on detailed project and product requirements.
4.2.2 Tools and Techniques for Collect Requirements
1- Interviews 2- Focus Groups
1.Project charter
2.Stakeholder
register
Inputs
1. Interviews
2.Focus groups
3.Facilitated
workshops
4.Group creativity
techniques
5.Group decision
making
techniques
6.Questionnaires
and surveys
7.Observations
8.Prototypes
Tools &
Techniques
1.Requirements
documentation
2. Requirements
management
plan
3.Requirements
traceability
matrix
Outputs
Definition Collect requirements is the process of defining and documenting stakeholders’ needs to meet the project objectives.
Source: PMBOK® Guide – Fourth Edition, page 103
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3- Facilitated Workshops 4- Group Creativity Techniques
1. Interviews They are formal or informal approach to discover information from stakeholders by talking to them directly. It is typically performed by asking prepared and spontaneous questions and recording the responses. Interviews are often conducted “one-on-one”, but may involve multiple interviewers and/or multiple interviewees. Interviewing experienced project participants, stakeholders and subject matter experts can aid in identifying and defining the features and functions of the desired project deliverables. 2. Focus Groups Bring together pre-qualified stakeholders and subject matter experts to learn about their expectations about a proposed product. A trained moderator guides the group through an interactive discussion, designed to be more conversational than a one-on-one interview. 3. Facilitated Workshops Requirements workshops are focused sessions that bring key cross-functional stakeholders together to define product requirements. Workshops are considered as primary techniques for quickly defining cross-functional requirements and reconciling stakeholder differences. These differences can be discovered and resolved more quickly than in individual interviews 4. Group Creativity Techniques
Brainstorming
Nominal group technique
Delphi Technique
Idea/mind mapping
Affinity diagram
4.2.3 Outputs of Collect Requirements
1- Requirements documentation 2- Requirements management plan 3- Requirements traceability matrix
1. Requirements documentation Requirements Documentation describes how individual requirements meet the business need of the project. Requirements may start out at a
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high level and become progressively more detailed as more information is known. Before being baselined, requirements must be unambiguous, traceable, complete, consistent, and acceptable to key stakeholders.
Requirements Documentation Components
There is no standard template to produce the requirements document. But below are its general components:
Business need or opportunity to be seized.
Business and project objectives for traceability
Functional requirements, describing business process, information and interaction with the product as appropriate which can be documented textually in a requirements list
Non-functional requirements such as level of service, performance, safety, security, compliance, supportability, retention etc.
Quality requirements
Acceptance criteria.
Business rules stating the guiding principles of the organization
Impacts to other organizational areas
Impacts to other entities inside or outside
Support and training requirements
Requirements assumptions and constraints
2. Requirements management plan It documents how requirements will be analyzed, documented and managed throughout the project. It contains the following components:
How requirements activities will be planned, tracked and reported.
Configuration management activities such as how changes to the product, service or result requirements will be initiated, how impacts will be analyzed
Requirements prioritization process
Product metrics that will be used and the rationale for using them
Traceability structure that is which requirements attributes will be captured on the traceability matrix and to which other project documentation requirements will be traced.
The Delphi Technique It is an anonymous way to reach a consensus of experts on a subject. It involves the following:
Questionnaire to solicit ideas from the experts
Responses are submitted anonymously, compiled, and then circulated to the experts for review
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3. Requirements traceability matrix It is a table that links requirements to their original business objective. This process includes:
Requirements to business needs, opportunities, goals, and objectives
Requirements to project objectives
Requirements to project scope/WBS deliverables
Requirements to product design
Requirements to product development
Requirements to test strategy and test scenarios, and
High-level requirements to more detailed requirements
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Group Discussion 4-1-Requirements Gathering Challenges
Group Discussion 4.1 – Requirements Gathering Challenges Highlight the most problematic areas in the process of gathering requirements in your organization. Use the following as guidelines:
1. Lacking time to complete the requirement gathering process 2. Customers may not know what they really want 3. Too many changes
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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Exercise 4-2-Create Project Charter
Exercise 4.2 – Create Project Charter Based on the supplied case study, create the Project Charter that will provide a high authority for the project manager. Consider specifying the following:
1. Customer 2. Project Name 3. Project Description 4. Project Manager: Name and Authority Level 5. Business Needs 6. Issued By Manager
Note: Use form 9.1 in Appendix 2
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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4.3 Define Scope
Figure 4-4- Define Scope Process
Source: PMBOK® Guide - Fourth Edition, page 112
1.Project charter
2.Requirements
documentation
3.Organizational
process assets
Inputs
1.Expert judgment
2.Product analysis
3.Alternatives
identification
4.Facilitated
workshops
Tools &
Techniques
1.Project scope
statement
2.Project
document
updates
Outputs
Definition Define Scope is the process of developing a detailed description of the project and product.
Source: PMBOK® Guide – Fourth Edition, page 103
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Group Discussion 4-2- Scope Creep Indicators
Group Discussion 4.2– Scope Creep Indicators From your perspective, what do you think of the following three statements?
1. Exceeding Customer Expectations 2. Delivering State of the art products 3. Providing low cost items, that may not cost anything free of charge
Your Notes 1. Exceeding Customer Expectations
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
2. Delivering State if the art products _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
3. Providing low cost items, that may not cost anything free of charge
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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4.3.1 Inputs of Define Scope
1- Project charter 2- Requirements documentation 3- Organizational process assets: 4- Policies, procedures, and templates for a project scope statements 5- Project files from previous projects, and 6- Lessons learned from previous phases or project
4.3.2 Tools and Techniques for Define Scope
1- Expert judgment 2- Product analysis 3- Alternatives identification 4- Facilitated workshops
1. Expert judgment This is the tools of getting the opinion of experts who have had previous experience in similar projects. Experts can be obtained from the following categories:
Other units within the organization
Consultants
Stakeholders including customers or sponsors
Professional and technical associations
Industry groups and
Subject matter experts
2. Product analysis Each application area has one or more generally accepted methods for translating high-level product descriptions into tangible deliverables. Product analysis includes techniques such as:
Product breakdown
Systems analysis
Requirements analysis
System engineering
Value engineering
Value analysis.
3. Alternatives identification Identifying alternatives is a technique used to generate different approaches to execute and perform the work of the project. A variety of general management techniques can be used such as brainstorming, lateral thinking, pair wise comparisons, etc.
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4.3.3 Outputs of Define Scope
1- Project scope statement 2- Project document updates
1. Project scope statement This document describes, in detail, the projects deliverables and the work required to create those deliverables. It also provides a common understanding of the project scope among project stakeholders. The Project Scope Statement may contain explicit scope exclusions that can assist in managing stakeholder expectations. Below are some of the benefits of the project scope statement:
Help the project team to perform more detailed planning
Guides the project team’s work during execution
Provides the baseline for evaluating whether requests for changes or additional work are contained within or outside the project’s boundaries
Scope Statement Content As the details are not always ready from day one of the project, so this document may be compiled progressively over a period of time. The contents of this document include, but not limited to the following:
Product scope description
Product acceptance criteria
Project deliverables
Work breakdown structure
Project exclusions
Project constraints
Project assumptions
Project boundaries
Project resources
Project milestones
Project stakeholders
Project Risks
Identifying Constraints Examples of constraints that may be faced during a project:
Budget
Schedule
People
Facilities and Equipment
Constraints: Are known factors, which limit the project team’s options. Assumptions: Are factors that, for planning purposes, are considered to be true, real, or certain. They need to be validated during the course of project planning
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Fault tolerant objectives
Portability requirements
The real world
Identifying Assumptions Assumptions are identified and documented during the planning process as they affect all aspects of planning. They need to be verified to ensure that they are true. In case if it is proven to be false, then re-planning is needed. They always carry a certain degree of risk
Unquantifiable Expectations Some expectations “requirements” may be difficult to quantify, they need to be quantified as much as possible, and otherwise they become a risk item of unclear requirements. Examples of these are:
Customer satisfaction
Company Image
Community Perception
2. Project Document Updates As mentioned earlier, the project management team does not always have answers to all planning questions. Facts come up during different times during the project life cycle. This entails changing the project related documents as and when new facts come up. Changes also come due handling authorized change requests. Examples of the documents that will be changed in this process are:
Stakeholder register
Requirements documentation
Requirements traceability matrix.
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Exercise 4-3-Create Scope Statement
Exercise 4.3 – Create Scope Statement Based on the supplied case study, create the Project Scope Statement that will highlight the minimum project information. Consider this as the business case used in your organization. Include the following information:
1. Project Name 2. Project Manager 3. Business Needs (project justification) 4. Summary of Product Description 5. Deliverables 6. Objectives (cost, schedule, quality measures, other) 7. Project Constraints 8. Project Risks (high level)
Note: Use form 9.2 in Appendix 2
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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Exercise 4-4-Create Project Assumptions
Exercise 4.4 – Create Project Assumptions Based on the supplied case study and the developed scope statement, create the Project Assumptions List. Include the following information:
1. Area: the area of the assumption, can be technical, financial, business etc.
2. The Assumption that you see true or false and that will be verified later on.
Note: Use form 9.3 in Appendix 2
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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4.4 Create WBS
Create WBS is the process of subdividing project deliverables and project work into smaller, more manageable components. It is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. Each descending level of the WBS represents an increasingly detailed definition of the project work. The WBS organizes and defines the total scope of the project and represents the work specified in the current approved project scope statement. The planned work is contained within the lowest level WBS components, which are called work packages. A work package can be scheduled, cost estimated, monitored and controlled. In the context of the WBS, work refers to work products or deliverables that are the result of effort and not to the effort itself.
Figure 4-5- Create WBS Process
Source: PMBOK® Guide - Fourth Edition, page 115
1.Project scope
statement
2.Requirements
documentation
3.Organizational
process assets
Inputs
1. Decomposition
Tools &
Techniques
1.WBS
2.WBS dictionary
3.Scope baseline
4.Project
document
updates
Outputs
Definition Create WBS is the process of subdividing project deliverables and project work into smaller.
Source: PMBOK® Guide – Fourth Edition, page 103
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Example of a WBS 1. Hardware
1.1 Servers 1.1.1 Head Office Server 1.1.2 Branch Server 1.2 Network 1.2.1 Switches 1.2.2 Routers
1.2.2.1 Head Office Router 1.2.2.1 Branch Router
2. Software 2.1 Application 2.1.1 Portfolio Management 2.1.2 Real Estate Management 2.1.3 Asset Management 2.2 Licenses
2.2.1 Windows Server 2.2.2 SharePoint Portal 3.2.3 Office 2003.
3. Training 3.1 Windows Training
3.1.1 Windows Server Admin 3.1.2 Office Training
3.2 Application Training 3.2.1 DB Admin 3.2.2 Application Admin
Why WBS is so Important It is the base of all other planning activities. The following diagram shows that the activity list, resources, duration, dependencies, cost and schedule are all dependants on the WBS.
Figure 4-6- Example of WBS
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4.4.1 Inputs to Create WBS
1- Project scope statement 2- Requirements documentation 3- Organizational process assets
4.4.2 Tools and Techniques for Create WBS
1- Decomposition
1. Decomposition It is the subdivision of project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level. Decomposition of the total project work into work packages generally involves the following activities:
identifying and analyzing the deliverables and related work
Structuring and organized the WBS
Decomposing the upper WBS levels into lower level detailed components
Developing and assigning identification codes to the WBS components
Verifying that the degree of decomposition of the work is necessary and sufficient.
Reaching to the lowest level of decomposition “Work Package”
4.4.3 Outputs of Create WBS
1- Work Breakdown Structure (WBS) 2- WBS dictionary 3- Scope baseline 4- Project document updates
1. Work Breakdown Structure (WBS) The WBS is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. Each descending level of the WBS represents an increasingly detailed definition of the project work. The WBS is finalized by establishing control accounts for the work packages and a unique identifies from a code of accounts. A control account is a management control point where scope, cost, and schedule are integrated and compared to the earned value for performance measurement.
Work Package: It is the smallest level of the WBS breakdown. It is the result of breaking down the deliverables to the smallest necessary (i.e. not too much of unnecessary breakdown) and sufficient (not very little of break down) level
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2. WBS dictionary The WBS dictionary provides more detailed descriptions of the components in the WBS including work packages and control accounts. It may contain the following information:
code of account identifies
Description of work
Responsible organization
List of schedule milestones
Associated schedule activities
Resources required
Cost estimates
Quality requirements
Acceptance criteria
Technical references
Contract information
3. Scope baseline The scope baseline is a component of the project management plan. The components of the scope baseline include:
Project scope statement
WBS
WBS dictionary
4. Project document updates Project documents that may be updated include:
Requirements documentation
Change requests results from the create WBS process
Other Breakdown Structures The WBS should not be confused with other kinds of breakdown structures, like:
Organizational Breakdown Structure (OBS)
Bill of Materials (BOM)
Risk Breakdown Structure (RBS)
Resource Breakdown Structure (RBS).
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Exercise 4-5- Create WBS
Exercise 4.5 – Create WBS Based on the supplied case study, create the Project Work Breakdown Structure. Note: Use form 9.4 in Appendix 2
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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4.5 Define Activities
Activities vs. WBS
Both use decomposition tool
The decomposition in the “Define Activities” process breaks down the work packages into activities. The result is activity “verb” oriented
The decomposition in the “Create WBS” process breaks down the deliverables into work pancakes. The result is deliverable “noun” oriented
Figure 4-7- Define Activities Process
Source: PMBOK® Guide – Fourth Edition, page 133
1.Scope baseline
2.Enterprise
environmental
factors
3.Organizational
process assets
Inputs
1.Decomposition
2.Rolling wave
planning
3.Templates
4.Expert judgment
Tools &
Techniques
1.Activity list
2.Activity
attributes
3.Milestone list
Outputs
Definition Define Activities is the process of identifying the specific actions to be performed to produce the project deliverables.
Source: PMBOK® Guide – Fourth Edition, page 133
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Process Interaction
5.3 Create WBS
6.1 Define Activities
Ø Organizational
process assets
Ø Enterprise
environmental
factors
Ø Scope baseline
6.2 Sequence
Activities
6.3 Estimate
Activity
Resources
6.4 Estimate
Activity
Durations
6.5 Develop
Schedule
Ø Milestone List
Involved Documents (IN)
ØScope baseline
ØEnterprise environmental
factors
ØOrganizational process assets
Involved Documents (OUT)
ØActivity list
ØActivity attributes
ØMilestone list
Ø Activity List
Ø Activity attributes
Enterprise/
Organization
Source: PMBOK® Guide – Fourth Edition
Diagram Developed by Techno Management
Ø
Figure 4-8- Define Activities – Process Interaction
4.5.1 Inputs to Define Activities
1. Scope baseline 2. Enterprise environmental factors 3. Organizational process assets: 4. Existing formal and informal activity planning-related policies,
procedures and guidelines.
4.5.2 Tools and Techniques for Define Activities
1. Decomposition 2. Rolling wave planning 3. Templates 4. Expert judgment
1. Decomposition The technique of decomposition as applied to defining activates, involves subdividing the project work packages into smaller, more manageable components called activities. Activities represent the effort needed to complete a work package. The Define Activities process defines the final outputs as activities rather than deliverables as in the work packages.
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2. Rolling wave planning It is a form of progressive elaboration planning where the work to be accomplished in the near term is planned in detail and future work is planned at a higher level of the WBS. Therefore, work can exist at various levels of detail depending on where it is in the project life cycle. 3. Templates Experience from previous projects can be used as templates to be used in similar projects. 4. Expert judgment Generally speaking, the project manager is not supposed to acquire the skills and knowledge to produce the activities of the project. He may have a limited experience in one or more domains, but he should rely on others who are experts n their domains to produce the activities of that particular domain. Even if the project manager has an experience in any of the domains, it is recommended to take the activities from the member who is in charge of this domain to grant his commitment to the activities, and later on, the schedule that he will be in charge.
4.5.3 Outputs of Define Activities
1. Activity list 2. Activity attributes 3. Milestone list
1. Activity list The activity list is a comprehensive list including all schedule activities required on the project. The activity list includes the activity identifier and a scope of work description for each activity in sufficient detail to ensure that project team members understand what work is required to be completed
2. Activity attributes This is an explanation of the activity that adds more information to help further activity planning. This information will help in assigning the resources, identify the dependencies, etc. it may include the following information.
Responsibility (who will do the work)
Geographic Area (where the work will be performed)
Activity Type (summary or detailed)
WBS Classification (for ordering and
The Activity List Must include all
activities in the project
Should be organized as an extension to WBS to help ensure that it is complete.
Should include descriptions of each activity.
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sorting)
3. Milestone list A milestone is a significant point or event in the project. A milestone list identifies all milestones and indicates whether the milestone is mandatory, such as those required by contract, or optional such as those based upon historical information.
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Group Discussion 4-3-Creating Activities
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Group Discussion 4.3– Creating Activities Do you have a standard process or templates you use in your organization that helps you to create project activities? What are the challenges you and your organization have in this regard?
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Exercise 4-6-Create Activity List
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 4.6 – Create Activity List Based on the supplied case study and the produced WBS, create the detailed activity list for only one work package. You may consider the following WBS: 1 Hardware
1.1 Servers 1.1.1 Head Office Serve 1.1.2 Branch Server
1.2 Network 1.2.1 Switches 1.2.2 Routers
1.2.2.1 Head Office Router 1.2.2.1 Branch Router
2 Software 2.1 Application
2.1.1 Portfolio Management 2.1.2 Real Estate Management 2.1.3 Asset Management
2.2 Licenses 2.2.1 Windows Server 2.2.2 SharePoint Portal 3.2.3 Office 2003.
3 Training 3.1 Windows Training
3.1.1 Windows Server Admin 3.1.2 Office Training
3.2 Application Training 3.2.1 DB Admin 3.2.2 Application Admin
Note: Use form 9.5 in Appendix 2
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4.6 Sequence Activities
Figure 4-9 - Sequence Activities Process
Source: PMBOK® Guide – Fourth Edition, page 136
1.Activity list
2.Activity
attributes
3.Milestone list
4.Project scope
statement
5.Organizational
process assets
Inputs
1.Precedence
diagramming
method (PDM)
2.Dependency
determination
3.Applying leads
and lags
4.Schedule
network
templates
Tools &
Techniques
1.Project
schedule
network
diagrams
2.Project
document
updates
Outputs
Definition Sequence Activities is the process of identifying and documenting relationships among the project activities.
Source: PMBOK® Guide – Fourth Edition, page 136
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Process Interaction
6.2 Sequence
Activities
5.2 Define ScopeEnterprise /
Organization
6.1 Define Activities
`Project
Documents
6.5 Develop
Schedule
Ø Organizational
process assets
Ø Project Scope
Statement
Ø Project
Documents
Updates
Ø Project schedule
network diagrams
Ø Activity list
Ø Activity attributes
Ø Milestone list
Involved Documents (IN)
ØActivity list
ØActivity attributes
ØMilestone list
ØProject scope statement
ØOrganizational process assets
Involved Documents (OUT)
ØProject schedule network
diagrams
ØProject document updates
Source: PMBOK® Guide – Fourth Edition
Diagram Developed by Techno Management
Ø
Figure 4-10- Sequence Activities – Process Interaction
4.6.1 Inputs of Sequence Activities
1- Activity list 2- Activity attributes 3- Milestone list 4- Project scope statement 5- Organizational process assets
4.6.2 Tools and Techniques for Sequence Activities
1- Precedence diagramming method (PDM) 2- Dependency determination 3- Applying leads and lags 4- Schedule network templates
1. Precedence diagramming method (PDM) PDM is a method used in Critical Path Methodology (CPM) for constructing a project schedule network diagram. It uses boxes or rectangles referred to as nodes, to represent activities, and connect them with arrows that show the logical relationships that exist between them. This technique is called Activity-On-Node (AON) and is the method used by most project management software packages.
4- Planning Phase
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Figure 4-11- Precedence Diagram (Activity on the node)
Activity on the Arrow (AOA) – An old Technique This is an old technique which shows the activities on the arrows and the relationships between the activities are made by joints (circles) connecting the arrows. This model shows only Finish to Start relationship. In the below diagram, in order to make a dependency between task B and C, a dummy activities (new arrow) is created.
Figure 4-12- Activity on the arrow
Task Dependencies Relationships between tasks are determined by the dependencies that link these tasks together. There are mainly four types of tasks, they are:
1- Finish-to-start (FS) 2- Finish-to-finish (FF) 3- Start-to-Start (SS) 4- Start-to-finish (SF)
A
Start
DC
B
Finish
E
D
C
Dummy
Activity
B
A
StartEnd
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Figure 4-13- Task Dependencies
2. Dependency determination
Three types of dependencies are used to define the sequence among the activities:
Mandatory dependencies: Also known as hard logic. It is applied when one dependency type must be used. For example, we have to use a finish to start relationship between task1 (building floor 1) and task 2 (building floor 3). This dependency, once identified cannot be changed.
Discretionary dependencies: Also known as soft logic or preferred logic. It is applied when the project team have the option of applying more than dependency on two tasks, then they prefer to use on the over and keep the right to change it as necessary.
External dependencies: Tasks dependant on other tasks that are performed by external parties are highlighted as External dependencies to give it more wait to be monitored and controlled to avoid problems.
Type of interdependency or
Precedence Relationship
Description
Finish to start (FS)
The finish of Task1 drives the start of Task2
Start to Start (SS)
The start of Task1 drives the start of Task2
Finish to Finish (FF)
The finish of Task1 drives the finish of Task2
Start to Finish (SF)
The start of Task1 drives the finish of Task2
1
2
1
2
1
2
1
2
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Group Discussion 4-4-Creating Activities
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Group Discussion 4.4– Dependencies What is the usefulness of identifying dependencies as mandatory or
discretionary?
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3. Applying leads and lags A lead allows an acceleration of the successor activity, while a lag directs a delay in the successor activity
Lag Time is a delay between a task and its predecessor. It is usually expressed using a specific amount of time.
Figure 4-14- Lag Time
Lead Time is an overlap between a task and its predecessor. In project management software, lead time may be expressed as a negative number in the lag field.
Figure 4-15- Lead Time
4.6.3 Outputs of Sequence Activities
1- Project schedule network diagrams 2- Project document updates:
Activity lists,
Activity attributes, and
Risk register
1 22 Days
1
2
2 Days
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4.7 Estimate Activity Resources
Figure 4-16- Estimate Activity Resources Process
Source: PMBOK® Guide - Fourth Edition, page 142
1.Activity list
2.Activity
attributes
3.Resource
calendars
4.Enterprise
environmental
factors
5.Organizational
process assets
Inputs
1.Expert judgment
2.Alternatives
analysis
3.Published
estimating data
4.Bottom-up
estimating
5.Project
management
software
Tools &
Techniques
1.Activity
resource
requirements
2.Resource
breakdown
structure
3.Project
document
updates
Outputs
Definition Estimate Activity Resources is the process of estimating the type and quantities of material, people, equipment or supplies required to perform each activity.
Source: PMBOK® Guide – Fourth Edition, page 141
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Process Interaction
9.2 Acquire
Project Team
12.2 Conduct
ProcurementsEnterprise /
Organization
6.3 Estimate
Activity Resources
12.1 Plan
Procurements
9.1 Develop
Human Resource
Plan
`Project
Documents
Ø Organizational
process assets
Ø Enterprise
environmental
factors
Ø Activity list
Ø Activity attributes
6.1 Define
Activities
Involved Documents (IN)
ØActivity list
ØActivity attributes
ØResource calendars
ØEnterprise environmental
factors
ØOrganizational process assets
Involved Documents (OUT)
ØActivity resource requirements
ØResource breakdown structure
ØProject document updates6.4 Estimate
Activity Durations
6.5 Develop
Schedule
Ø Resource
breakdown
structure
Ø Project
Documents
Updates
Ø Activity resource
requirements
Ø Resource
Calendars
Source: PMBOK® Guide – Fourth Edition
Diagram Developed by Techno Management
Ø
Figure 4-17- Estimate Activity Resources – Process Interaction
4.7.1 Inputs to Estimate Activity Resources
1- Activity list 2- Activity attributes 3- Resource calendars 4- Enterprise environmental factors 5- Organizational process assets
1. Activity list
This is the output on the Define Activities process.
2. Activity attributes Activity attributes plays a role in defining the required resources. Based on the type and nature of the task, team members may decide to perform it with certain recourses that may have specific skills or does not conflict with another type of activities he is also involved in within the same project or others.
3. Resource calendars The resource calendar determines the resources that will be assigned, based on their availability. Each resource will have a resource calendar that shows their assignments and availability.
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4. Enterprise environmental factors This is all the enterprise environmental factors that have an impact on deciding the required resources. This includes, but not limited to:
Resource availability Resources skills Multi-culture structure
5. Organizational process assets This is all the organizational process assets that have an impact on deciding the required resources. This includes, but not limited to:
Staffing policy and procedures Procurement policy and procedures Outsourcing policy and procedures Job market conditions
4.7.2 Tools and Techniques for Estimate Activity Resources
1- Expert judgment 2- Alternatives analysis 3- Published estimating data 4- Bottom-up estimating 5- Project management software
1. Expert judgment All inputs related to the resource need to be assessed by an expert to decide on the way how the resources are identified and assigned. Experts can be team members, other team members within the organization or external consultants. 2. Alternatives analysis Analyzing the tasks and which resources and skills can be applied may result in options to the project team that they find useful in terms of schedule and budget optimization.
3. Published estimating data Some companies rely on published resources estimates that are either done internally or purchased from third parties.
4. Bottom-up estimating In case if the resource requirements to a certain activity could not be estimated to an acceptance level of confidence, this activity is decomposed (broken down) into further small activities that can be easily analyzed and identify their resource requirements. Once this is doe, the resource requirements are aggregated upward.
5. Project management software
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Many project management software provide the automation of planning, organizing and optimizing resources. Some also allow creating resources pools that can be managed across the organization.
4.7.3 Outputs of Estimate Activity Resources
1. Activity resource requirements It identifies the types and quantities of resources required for each activity in a work package. These requirements can then be aggregated to determine the estimated resources for each work package. The amount of detail and the level of specificity of the resource requirements descriptions can vary by application area. The resource requirements documentation for each activity can include the basis of estimate for each resource, as well as the assumption that were made in determining which types of resources are applied, their availability and what quantities are used.
2. Resource breakdown structure The Resource Breakdown Structure is a hierarchical structure of the identified resources by resource category and resource type. Resource categories include labor, material, equipment, and supplies. Resource types can include the skill level, grade level or other information as appropriate to the project. The resource breakdown structure is useful for organizing and reporting project schedule data with resource utilization information.
3. Project document updates
Activity list
Activity attributes
Resource calendars
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Exercise 4-7-Resource Assignment
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 4.7 – Resource Assignment Based on the supplied case study and the produced activity list, identify the required resources for each task. Note: Use form 9.5 in Appendix 2
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4.8 Estimate Activity Durations
Figure 4-18- Estimate Activity Durations Process
Source: PMBOK® Guide - Fourth Edition, page 146
1.Activity list
2.Activity attributes
3.Activity resource
requirements
4.Resource
calendars
5.Project scope
statement
6.Enterprise
environmental
factors
7.Organizational
process assets
Inputs
1.Expert judgment
2.Analogous
estimating
3.Parametric
estimating
4.Three-point
estimates
5.Reserve
analysis
Tools &
Techniques
1.Activity duration
estimates
2.Project
document
updates
Outputs
Definition Estimate Activity Durations is the process of approximating the number of work periods needed to complete individual activities with estimated resources.
Source: PMBOK® Guide – Fourth Edition, page 146
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Process Interaction
5.2 Define Scope9.2 Acquire
Project Team
Enterprise /
Organization
6.4 Estimate
Activity Durations
11.2 Identify Risks`
Project
Documents
Ø Resource
Calendars
Ø Organizational
process assets
Ø Enterprise
environmental
factors
Ø Project
Document
s Updates
6.1 Define
Activities
6.3 Estimate
Activity Resources
6.5 Develop
Schedule
Involved Documents (IN)
ØActivity resource requirements
ØActivity list
ØActivity attributes
ØProject scope statement
ØResource calendars
ØEnterprise environmental
factors
ØOrganizational process assets
Involved Documents (OUT)
ØActivity duration estimates
ØProject document updates
12.2 Conduct
Procurements
Ø Activity duration
estimates
Ø Project scope statement
Ø Activity
resource
requirements
Ø Activity list
Ø Activity
attributesSource: PMBOK® Guide – Fourth Edition
Diagram Developed by Techno Management
Ø
Figure 4-19- Estimate Activity Duration – Process Interaction
Activity Duration compared to Effort
Elapsed time: The time that shows on the calendar. Includes the holidays and weekends.
Duration: The number of working days. It does not include holidays or week ends
Working time (Effort): The actual aggregated time, It adds the working time of all the involved resource.
4.8.1 Inputs to Estimate Activity Durations
1. Activity list 2. Activity attributes 3. Activity resource requirements 4. Resource calendars 5. Project scope statement 6. Enterprise environmental factors 7. Organizational process assets
4.8.2 Tools and Techniques for Estimate Activity Durations
1. Expert judgment 2. Analogous estimating 3. Parametric estimating 4. Three-point estimates 5. Reserve analysis
1. Expert judgment
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All inputs related to the resource need to be assessed by an expert to decide on the way how the resources are identified and assigned. Experts can be team members, other team members within the organization or external consultants.
2. Analogous estimating Actual duration of a previous, similar activity is basis for estimating the future activity. It is a form of Expert Judgment. It is most reliable when:
Activities are really similar.
Individuals preparing the estimates have needed expertise
3. Parametric estimating Parametric estimating uses a statistical relationship between historical data and other variables to calculate an estimate for activity parameters, such as cost, budget and duration. Activity durations can be quantitatively determined by multiplying the quantity of work to be performed by labor hours per unit of work. This technique can produce higher levels of accuracy depending upon the sophistication and underlying data built into the model.
4. Three-point estimates This concept originated with the Program Evaluation and Review Technique (PERT), PERT uses three estimates to define an approximate range for an activity’s duration:
Most likely
Optimistic
Pessimistic PERT analysis calculated an Expected activity duration using a weighted average of these three estimates. It uses the following formulas: Estimated Time:
Standard Deviation:
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Final Time Estimate:
Where: tE = Expected time tO = Optimistic time tM = Most likely time tP = Pessimistic Time SD = Standard Deviation
Determine Probability of Achievement Estimated time = tE + 1 x SD with 68% confidence Estimated time = tE + 2 x SD with 95% confidence Estimated time = tE + 3 x SD with 99% confidence
5. Reserve analysis It is also called time buffer, reserve, or contingency. It is Added by project team to an activity as a recognition of project risk. It can be either a percent of estimated duration, or fixed duration. It should be documented in order to facilitate future reference.
4.8.3 Outputs of Estimate Activity Durations
1- Activity duration estimates 2- Project document updates
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Exercise 4-8-Task Duration Estimate
Exercise 4.8 – Task Duration Estimate The following information and questions 1 through 4 refer to below network diagram and table
B
I
HEC
A
GFD
Activity Optimistic Pessimistic Most Likely
A 1 1 1
B 2 3 3
C 10 13 12
D 5 15 5
E 3 6 4
F 1 1 1
G 5 8 6
H 9 13 10
I 5 5 5
1. What is the expected value of the number of days to complete the project?
2. What is the expected value of the duration for activity B?
3. What is the standard deviation for the duration of activity B?
4. It is desirable to make an estimate that has a greater than 95%
chance of being correct. Which of the following ranges of time for the completion of the project best describes this probability of being correct?
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4.9 Develop Schedule
Figure 4-20- 6.5 Develop Schedule Process
Source: PMBOK® Guide - Fourth Edition, page 152
1. Activity list
2. Activity attributes
3. Project schedule
network diagrams
4. Activity resource requirements
5. Resource calendars
6. Activity duration
estimates
7. Project scope statement
8. Enterprise envi.
factors
9. Organizational
process assets
Inputs
1.Schedule
network analysis
2.Critical path
method
3.Critical chain
method
4.Resource
leveling
5.What-if analysis
6.Applying leads
and lags
7.Schedule
compression
8.Scheduling tool
Tools &
Techniques
1.Project
schedule
2.Schedule
baseline
3.Schedule data
4.Project
Document
Updates
Outputs
Definition Develop Schedule is the process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.
Source: PMBOK® Guide – Fourth Edition, page 152
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Process Interaction
4.2 Develop
Project
Management Plan
6.5 Develop
Schedule
Enterprise /
Organization
6.1 Define
Activities
`Project
Documents
7.1 Estimate
Costs
7.2 Determine
Budget
6.2 Sequence
Activities
8.1 Plan Quality
Ø Organizational
process assets
Ø Enterprise
environmental
factors
Ø Project Documents Updates
Ø Project schedule
network diagrams
Ø Activity list
Ø Activity attributes
Involved Documents (IN)
ØActivity list
ØActivity attributes
ØProject schedule network
diagrams
ØActivity resource requirements
ØActivity duration estimates
ØProject scope statement
ØResource calendars
ØEnterprise environmental factors
ØOrganizational process assets
Involved Documents (OUT)
ØProject schedule
ØSchedule baseline
ØSchedule data
ØProject documents updates
12.1 Plan
Procurements
5.2 Define Scope 9.2 Acquire
Project Team
12.2 Conduct
Procurements
6.3 Estimate
Activity
Resources
6.4 Estimate
Activity Duration
6.6 Control
Schedule
Ø Project Scope Statement
Ø Project
ScheduleØ Activity duration
estimates
Ø Activity resource
requirements
Ø Schedule data
Ø Resource Calendars
Ø Schedule baseline
Source: PMBOK® Guide – Fourth Edition
Diagram Developed by Techno Management
Ø
Figure 4-21- Develop Schedule – Process Interaction
Schedule Constraints Two categories of constraints are directly related to scheduled development: Imposed Dates, they are:
Key Events Major Milestones
Example of Constraints:
Constraint Type Description
Start No Later Than The task must start before or on that date.
Start No Earlier Than The task may not start before this date.
Finish No Later Than The task must be completed by that date.
Finish No Earlier Than The task may not be completed before this date.
4.9.1 Inputs to Develop Schedule
1. Activity list 2. Activity attributes 3. Project schedule network diagrams
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4. Activity resource requirements 5. Resource calendars 6. Activity duration estimates 7. Project scope statement 8. Enterprise environmental factors 9. Organizational process assets Project Calendars Project and resource calendars identify when work is allowed. They affect all resources. Resource calendars affect only that resource or group of resources.
4.9.2 Tools and Techniques for Develop Schedule
1. Schedule network analysis 2. Critical path method 3. Critical chain method 4. Resource leveling 5. What-if analysis 6. Applying leads and lags 7. Schedule compression 8. Scheduling tool
1. Schedule network analysis Schedule network analysis is a technique that generates the project schedule. It employs various analytical techniques, such as:
Critical path method
Critical chain method
What-if analysis
Resource leveling
2. Critical path method The critical path method calculates the theoretical early start and finish dates and late start and finish dates without regard for any resource limitations. This is done by performing a forward and backward pass analysis through the schedule network. The resulting early and late start and finish dates are not necessarily the project schedule; rather they indicate the time periods within which the activity could be scheduled. Float
Total Float: is the amount of time that an activity may be delayed from its early start without delaying the project finish date.
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Free Float: is the amount of time that an activity can be delayed without delaying the early start of any immediately following activities.
Calculating Path and Float Forward Pass:
Early Start (ES) = Total of task durations for all precedent (necessary) tasks
Early Finish (EF) = ES + Task Duration Backward Pass:
Late Finish (LF) = Last day of project – Duration of sequential (necessary) tasks to end of project
Late Start (LS) = LF – Task Duration Float = LF – ES – Task Duration
Task Coding Convention
Early Start = ES Early Finish = EF Late Start = LS Late Finish = LF Duration = DU
Process
a. Construct the Network Diagram b. Apply the Task Duration c. Calculate the Forward Pass d. Calculate the Backward Pass e. Calculate Floats
a. Construct the Network Diagram
EF
LS LF
ES
DU
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b. Apply the Task Duration
c. Calculate the Forward Pass
d. Calculate the Backward Pass
58
CB
A
FE
D
G
59
C1
B3
A1
F6
E6
D3
G2
60
C
54
1
B
41
3
A
10
1
F
137
6
E
71
6
D
107
3
G
1513
2
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61
C
5
9 10
4
1
B
4
6 9
1
3
A
1
0 1
0
1
F
13
7 13
7
6
E
7
1 7
1
6
D
10
10 13
7
3
G
15
13 15
13
2
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e. Calculate Floats
3. Critical chain method The critical path methods calculates the theoretical early start and finish dates, and late start and finish dates without regard for any resource limitations. This is done by performing a forward and backward pass analysis through the schedule network. The resulting early and late start and finish dates are not necessarily the project schedule; rather they indicate the time periods within which the activity could be scheduled.
4. Resource leveling Resource leveling is necessary when resources are over-allocated such as when the resource is:
Assigned to two or more activities during the same time period Shared or critical required resources are only available at certain
times Only available in limited quantities.
Resource leveling can often cause the original critical path to change. It mostly results in extended schedule
Figure 4-22- Resource Leveling
63
C
5
9 10
4
1
B
4
6 9
1
3
A
1
0 1
0
1
F
13
7 13
7
6
E
7
1 7
1
6
D
10
10 13
7
3
G
15
13 15
13
2
TF=5
FF=0
TF=0
FF=0
TF=0
FF=0
TF=0
FF=0
TF=5
FF=2TF=3
FF=3
TF=0
FF=0
65
2
2
3 Days
2
2
4 Days
Before After
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5. What-if analysis This is based on the calculation of multiple project durations with different sets of activity assumptions. “What-if analysis” using the logic in the network diagram. A well known technique of “What if analysis” is called Monte Carlo Analysis, it is: The most common technique. Distribution of probable results is defined for each activity, and then
used to determine the distribution of probable results for the total project.
Also used in Project Risk Management
6. Applying leads and lags A lead allows an acceleration of the successor activity, while a lag directs a delay in the successor activity
7. Schedule compression The two main techniques that are used to compress schedules are:
a- Fast tracking: A schedule compression technique in which phases or activities normally performed in sequence are performed in parallel. b- Crashing: It is a schedule compression technique in which cost and schedule tradeoffs are analyzed to determine how to obtain the greatest amount of compression for the least incremental cost.
8. Scheduling tool
MS Project
Primavera
4.9.3 Outputs of Develop Schedule
1. Project schedule: Milestones charts Bar charts Project schedule network diagrams
2. Schedule baseline 3. Schedule data 4. Project document updates:
Activity resource requirements Activity attributes Calendar Risk register
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Exercise 4-9- Develop Schedule
Exercise 4.9 – Develop Schedule The following information and questions 1 through 9 refer to below network diagram Assume that the work is on a single shift basis and will seven days per week until the job is done. The project is to begin on May 1.
B
HE
C
A
FD
G
3
FS-2
1
3 4
5
42
7
1. What day in May will activity D have for its early finish date? 2. What is the free float for activity F? 3. What is the free float for activity D? 4. What is the critical path of the project? 5. What is the late start for activity F? 6. How long is the project in days? 7. What is the early start for activity F? 8. If there is a delay in activity F of six days, what is the effect on the
project completion date? 9. What is the early finish date of activity A?
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4.10 Estimate Costs
Figure 4-23- Estimate Costs Process
Source: PMBOK® Guide – Fourth Edition, page 169
1.Scope baseline
2.Project
schedule
3.Human
resource plan
4.Risk register
5.Enterprise
environmental
factors
6.Organizational
process assets
Inputs
1. Expert judgment
2. Analogous
estimating
3. Parametric
estimating 4. Bottom-up
estimating
5. Three-point
estimates
6. Reserve analysis 7. Cost of quality
8. PM Estimating
software
9. Vendor bid
analysis
Tools &
Techniques
1.Activity cost
estimates
2.Basis of
estimates
3.Project
document
updates
Outputs
Definition Cost Estimating is the determination of approximately how much will it cost the performing organization to provide the product or service involved.
Source: PMBOK® Guide – Fourth Edition, page 168
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Process Interaction
Figure 4-24- Estimate Costs – Process Interaction
Life Cycle Costing vs. Value Engineering Project cost can be seen from different perspectives, and important perspective is the cost of the project during its whole life cycle. The process of evaluating the project cost over its life cycle is called Life Cycle Costing process. Life-Cycle Costing (LCC) is the total cost to the organization for the ownership and acquisition of the product over its full life cycle.
LCC = R&D costs + production cost + construction cost + operation and maintenance cost + product retirement and phase-out cost.
Value Engineering (VE) is a creative approach used to optimize life-cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more effectively.
Cost Estimate as an Iterative Process Cost estimate is refined during the course of the project. Cost Estimate increase as the project progresses over time. This is part of the progressive elaboration concept. Types of Estimates and Degree of Accuracy
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Depending on the project phase, different levels of estimates with different levels f accuracy are applied. Below are examples of these levels.
Table 4-1 - Estimate Accuracy
4.10.1 Inputs to Estimate Costs
1. Scope baseline 2. Project schedule 3. Human resource plan 4. Risk register 5. Enterprise environmental factors 6. Organizational process assets
4.10.2 Tools and Techniques for Define Activities
1. Expert judgment 2. Analogous estimating 3. Parametric estimating 4. Bottom-up estimating 5. Three-point estimates 6. Reserve analysis 7. Cost of quality 8. PM Estimating software 9. Vendor bid analysis
5. Analogous Estimating It is based on using the actual cost of previous and similar projects as the basis for estimating the cost of the current project. This technique is frequently used to estimate costs when there is a limited amount of detailed information about the project. It relies heavily on expert judgment and it is generally less costly and less accurate than other techniques. 6. Parametric Estimating
Type Accuracy Project Phase
Rough Order of Magnitude (ROM))
or
Ball Park
50% Initiation
Budget Estimate 10% Early Planning
Definitive Estimate 5% Late Planning &
Execution
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This technique uses a statistical relationship between historical data and other variables. It can produce higher levels of accuracy depending upon the sophistication. It also involves multiplying the planned quantity of work to be performed by the historical cost per unit to obtain the estimated cost. 7. Bottom-up Estimating It involves estimating the cost of individual work packages or individual schedule activities. This detailed cost is then rolled up to higher levels for reporting and tracking purposes. The cost and accuracy of bottom-up cost estimating is typically motivated by the size and complexity of the individual schedule activity or work package. Generally, activities with smaller effort increase the accuracy of the schedule activity cost estimates.
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8. Three-Point Estimates It is also called “Probabilistic Estimate” or “Weighted Average”. This concept originated with the Program Evaluation and Review Technique (PERT). PERT uses three estimates to define an approximate range for an activity’s duration:
o Most likely o Optimistic o Pessimistic
PERT analysis calculates an Expected activity duration using a weighted average of these three estimates. It uses the following formulas:
Estimated Cost:
Standard Deviation:
Final Cost Estimate:
Where: cE = Expected Cost cO = Optimistic Cost cM = Most likely Cost cP = Pessimistic Cost SD = Standard Deviation
Determine Probability of Achievement Estimated cost = cE + 1 x SD with 68% confidence Estimated cost = cE + 2 x SD with 95% confidence Estimated cost = cE + 3 x SD with 99% confidence
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4.10.3 Outputs of Estimate Costs
1. Activity cost estimates 2. Basis of estimates 3. Project document updates
1. Activity Cost Estimates A quantitative assessment of the likely costs of the resources required to complete schedule activities. This type of estimate can be presented in summary form or in detail. Costs are estimated for all resources that are applied to the activity cost estimate. This includes, but is not limited to:
Labor
Materials
Equipment
Services
Facilities
Information technology
Special categories such as an inflation allowance or cost contingency reserve.
2. Basis of estimates It is mandatory for the project manager to keep records for the supporting documents that proves the information on which he based his estimates on. These supporting documents include, but not limited to:
Documentation of the basis of the estimate (i.e. how it was developed)
Documentation of all assumptions made
Documentation of any known constraints
Indication of the range of possible estimates (e.g. $10,000(+10%) to indicate that the item is expected to cost between a range of values)
Indication of the confidence level of the final estimate. 3. Project Document Updates Depending on which phase the project is in, all project documents related to the cost estimates are subject to be updated based on the estimates and its type.
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4.11 Determine Budget
Figure 4-25 - Determine Budget Process
Source: PMBOK® Guide – Fourth Edition, page 175
1.Activity cost
estimates
2.Basis of
estimates
3.Scope baseline
4.Project
schedule
5.Resource
calendars
6.Contracts
7.Organizational
process assets
Inputs
1.Cost
aggregation
2.Reserve
analysis
3.Expert judgment
4.Historical
relationships
5.Funding limit
reconciliation
Tools &
Techniques
1.Cost
performance
baseline
2.Project funding
requirements
3.Project
document
updates
Outputs
Definition Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.
Source: PMBOK® Guide – Fourth Edition, page 147
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Process Interaction
Figure 4-26- Determine Budget – Process Interaction
4.11.1 Inputs of Determine Budget
1- Activity cost estimates 2- Basis of estimates 3- Scope baseline 4- Project schedule 5- Resource calendars 6- Contracts 7- Organizational process assets
4.11.2 Tools and Techniques for Determine Budget
1- Cost aggregation 2- Reserve analysis 3- Expert judgment 4- Historical relationships 5- Funding limit reconciliation
1. Cost aggregation
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Schedule activity cost estimates are aggregated by work packages in accordance with the WBS. The work package cost estimates are then aggregated for the higher component levels of the WBS, such as control accounts, and ultimately for the entire project. 2. Reserve analysis Budget reserve analysis can establish both the contingency reserves and the management reserves for the project. Contingency reserves are allowances for unplanned but potentially required changes that can result from realized risks identified in the risk register. Management reserves are budgets reserved for unplanned changes to project scope and cost. Management reserves are not a part of the project cost baseline, but may be included in the total budget for the project. They are not included as a part of the earned value measurement calculations. 3. Expert Judgment Expert judgment is based on any of the following:
Other units within the performing organization
Consultants
Stakeholders, including customers
Professional and technical associations, and
Industry groups 4. Historical Relationships Any historical relationship that results in parametric or analogous estimates that will help in develop a mathematical model to predict the total project cost The model will be accurate when:
The historical information used to develop the model is accurate
The parameters used in the model are readily quantifiable
The model is scalable, such that it works for a large project as well as a small one.
5. Funding Limit Reconciliation The expenditure of funds is reconciled with the funding limits set by the customer. Reconciliation will necessitate the scheduling of work to be adjusted to smooth or regulate those expenditures. Rescheduling can impact the allocation of resources. The final product of these planning iterations is a cost baseline
4.11.3 Outputs of Determine Budget
1- Cost performance baseline 2- Project funding requirements 3- Project document updates
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1. Cost Performance Baseline A time-phased budget that is used as a basis against which to measure, monitor, and control overall cost performance on the project. It is developed by summing estimated costs by period and is usually displayed in the form of an S-curve. The cost baseline is a component of the project management plan. Many projects, especially large ones, have multiple cost or resource baselines. For example, management may require that the project manager track internal costs (labor) separately from external costs (contractors and construction materials) or total labor hours.
2. Project Funding Requirements Funding requirements, total and periodic (e.g., annual or quarterly), are derived from the cost baseline. They can be established to exceed, usually by a margin, to allow for either early progress or cost overruns. Funding usually occurs in incremental amounts that are not continuous The total funds required are those included in the cost baseline plus the management contingency reserve amount.
Figure 4-27- Project Funding Requirements
3. Project Document Updates All related cost documents such as:
Risk register
Cost estimates
Project Schedule
Cum
ula
tive V
alu
es
Time
Funding Requirements
Expenditures
Cost Baseline
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4.12 Plan Quality
Figure 4-28- Plan Quality Process
Source: PMBOK® Guide – Fourth Edition, page 192
1.Scope baseline
2.Stakeholder
register
3.Cost
performance
baseline
4.Schedule
baseline
5.Risk register
6.Enterprise
environmental
factors
7.Organizational
process assets
Inputs
1. Cost-benefit
analysis
2. Cost of quality
3. Control charts
4. Benchmarking 5. Design of
experiments
6. Statistical sampling
7. Flowcharting
8. Proprietary quality management
methodologies
9. Additional quality
planning tools
Tools & Techniques
1.Quality
management
plan
2.Quality metrics
3.Quality
checklists
4.Process
improvement
plan
5.Project
document
updates
Outputs
Definition Plan Quality is the process of identifying quality requirements and/or standards for the project and product and documenting how the project will demonstrate compliance.
Source: PMBOK® Guide – Fourth Edition, page 192
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Process Interaction
8.1 Plan Quality
5.3 Create WBS10.1 Identify
stakeholders
8.3 Perform Quality
Control
`Project
Documents
8.2 Perform Quality
Assurance
Ø Stakeholder registerØ Scope
baseline
Ø Project
Documents
Updates
Ø Quality
management plan
Involved Documents (IN)
ØScope baseline
ØStakeholder register
ØCost performance baseline
ØSchedule baseline
ØRisk register
ØEnterprise environmental
factors
ØOrganizational process assets
Involved Documents (OUT)
ØQuality metrics
ØQuality checklists
ØQuality management plan
ØProcess improvement plan
ØProject document updates
7.2 Determine
budget
6.5 Develop
Schedule
Enterprise /
Organization
Ø Cost
performance
baseline
Ø Organizational
process assets
Ø Enterprise
environmental
factors
Ø Quality
checklists
Ø Quality
metrics
11.2 Identify Risks
Ø Schedule
baselineØ Risk register
11.2 Identify Risks
4.2 Develop
Project
Management Plan
Ø Process improvement plan
Source: PMBOK® Guide – Fourth Edition
Diagram Developed by Techno Management
Ø
Figure 4-29- Plan Quality – Process Interaction
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Group Discussion 4-5-Quality vs. Grade
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Group Discussion – Quality vs. Grade Two persons went to purchase electrical bulbs on bulk basis, a box of 100 pieces. The first one went for a high price brand, he purchased a box of 100 bulbs with 5% out of the box faulty rate. This means that there is 5 faulty bulbs may be found in each 100 bulbs. The second person went for a cheaper brand; he purchased a box of 100 bulbs with 20% faulty specifications. When the second person returned back home, he found that 19 bulbs were out of order, while the first person found only 6 bulbs were out of order. Which lot is higher quality?
a- The higher price brand b- The low price brand
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Quality vs. Grade Quality and grade are closely related terms, but it is important to understand the distinction between the two in order to understand the requirements of each for a specific project. Quality requirements and grade requirements vary from one project to another. However, low quality should always be avoided.
Quality: is the degree to which a set of inherent characteristics fulfills requirements. Grade: is a category or rank given to entities having the same functional use but different technical characteristics.
Precision vs. Accuracy
Precision: The values of repeated measurements are cluster and have little scatter Accuracy: The measurement value is very close to the true value
Quality Improvement Initiatives Over years, many initiatives were developed to help defining and managing
the project quality, examples are:
International Standard:
o ISO 9000
Proprietary Approaches:
o Deming, Juran, Crsoby and others’ recommendations
Non Proprietary Approaches:
o Total Quality Management (TQM)
o Six Sigma
o Failure mode and Effect Analysis (FMEA)
o Design Reviews
o Voice of the Customer
o Cost of Quality (COQ)
o Continuous Improvement (KAIZEN)
o Just-in-time (JIT)
Quality Management Complements Project Management Both Quality Management and Project Management aim to eh same
objective, finishing the project as per the required quality. Both concepts
agree the same basics as follows:
Customer satisfaction:
o Meeting the customer requirements, conformance to
requirements and fitness for use.
Prevention over inspection:
o Quality is planned in , not inspected in
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Continuous improvement:
o Plan, Do, Check and Act is the basis of quality improvement.
o Process improvement models include Malcolm Baldridge, OPM3
® and CMMI®
Management Responsibility:
o Management is responsible for providing the required resources
for success.
Statistical Quality Control Terms
Term A Term B
Prevention Keeping errors out of the process
Inspection Keeping errors out of the deliverable to the customer
Attribute sampling Result does or does not conform (binary, pass/fail, conformance/nonconformance) An attribute is the measurement.
Variables sampling Result is rated on a continuous scale measuring the degree of conformity A variable is the characteristic.
Special causes Unusual events
Random causes Normal process variation
Tolerances Result is acceptable within a specified range
Control limits Process is in control if the result is within the control limits
Table 4-2- Statistical Quality Control Terms
4.12.1 Inputs to Plan Quality
1. Scope baseline 2. Stakeholder register 3. Cost performance baseline 4. Schedule baseline 5. Risk register 6. Enterprise environmental factors 7. Organizational process assets
4.12.2 Tools and Techniques for Plan Quality
1. Cost-benefit analysis 2. Cost of quality
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3. Control charts 4. Benchmarking 5. Design of experiments 6. Statistical sampling 7. Flowcharting 8. Proprietary quality 9. management methodologies 10. Additional quality planning tools
1. Cost-Benefit Analysis Quality planning must consider cost-benefits tradeoffs. The primary benefit of meeting quality requirements is less rework, which means:
Higher productivity
Lower costs
Increased stakeholder satisfaction. The primary cost of meeting quality requirements is the expense associated with Project Quality Management activities. 2. Cost of Quality Quality costs are the total costs incurred by:
Investment in preventing nonconformance to requirements
Appraising the product or service for conformance to requirements
Failing to meet requirements (rework).
Failure costs are often categorized into internal and external.
Failure costs are also called cost of poor quality.
Examples of Cost of Conformance
Examples of Cost of Non-Conformance
• Prevention (build a quality product):
– Training – Documenting
processes – New equipment – Allow time to do it
right – Briefing – Maintenance – Audit
• Appraisal (asses the quality):
– Testing – Inspection
• Internal Failure – Rework – Scrap
• External Failure – Recalls – Warranty costs – Handling customer
complaints – Lost Business
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– Destructive testing loss
Table 4-3- Cost Conformance
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Exercise 4-10 - Cost of Quality
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 4.10 – Cost of Quality Define examples of each of the following type of cost:
1. Prevention 2. Appraisal 3. Internal failure 4. External failure
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3. Control Charts It is used to determine whether or not a process is stable or has predictable performance. It serves as a data gathering tool to show when a process is subject to special cause variation, which creates an out-of-control condition. Illustrate how a process behaves over time. Below are the main attributes of the control charts:
They are a graphic display of the interaction of process variables on a process to answer the question: Are the process variables within acceptable limits?
Examination of the non-random pattern of data points on a control chart may reveal wildly fluctuating values, sudden process jumps or shifts, or a gradual trend in increased variation.
By monitoring the output of a process over time, a control chart can be employed to assess whether the application of process changes resulted in the desired improvements.
When a process is within acceptable limits, the process need not be adjusted.
When a process is outside acceptable limits, the process should be adjusted.
The upper control limit and lower control limit are usually set at +/- 3 sigma (i.e., standard deviation).
Figure 4-30- Control Chart
Upper Control Limit (UCL)
X
Lower Control Limit (LCL)
Upper Specification Limit (USL)
Lower Specification Limit (LSL)
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4. Benchmarking Benchmarking involves comparing actual or planned project practices to those of other projects. This is to generate ideas for improvement and to provide a basis by which to measure performance. These other projects can be within the performing organization or outside of it, and can be within the same or in another application area. 5. Design of Experiments It is a statistical method that helps identify which factors may influence specific variables of a product or process. It also plays a role in the optimization of products or processes. It provides a statistical framework for systematically changing all of the important factors. 6. Statistical Sampling Statistical sampling involves choosing part of a population of interest for inspection. Appropriate sampling can often reduce the cost of quality control. There is a substantial body of knowledge on statistical sampling; in some application areas, it may be necessary for the project management team to be familiar with a variety of sampling techniques.
7. Flowcharting Flowcharting helps to analyze how problems occur. A flowchart is a graphical representation of a process. There are many styles, but all process flowcharts show activities, decision points, and the order of processing. They show how various elements of a system interrelate.
Figure 4-31- Flow Chart
22
Pressurization test
X-ray the weld to
detect micro-fractures
Fractures
detected
?
Connect pressure unit
to open end of pipe
Pressurization test
Pressurization test
Yes
No
YesNo
C
A
B
Grind out the old weld
Prepare the weld
surface
Apply the new weld
Test completeTime
elapsed?
Leaks
detected?
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8. Proprietary Quality Management Methodologies Many organizations in different industries developed quality approaches to manage quality in specific industries of line of business. Some of them are:
Six Sigma
Lean Six Sigma
CMMi
Others 9. Additional Quality Planning Tools
Brainstorming
Affinity diagrams
Force field analysis
Nominal group techniques
Matrix diagrams
Flowcharts
Prioritization matrices
4.12.3 Outputs of Plan Quality
1. Quality Management Plan 2. Quality Metrics 3. Quality Checklists 4. Process Improvement Plan:
o Process boundaries o Process configuration o Process metrics o Targets for improved performance
5. Project Documents Updates: o Stakeholder register o Responsibility Assignment Matrix
1. Quality Management Plan It describes how the project management team will implement the performing organization’s quality policy. The quality management plan is a component or a subsidiary plan of the project management plan. The quality management plan provides input to the overall project management plan and must address:
Quality control (QC)
Quality assurance (QA)
Continuous process improvement for the project.
2. Quality Metrics A metric is an operational definition that describes, in very specific terms, what something is and how the quality control process measures it. A measurement is an actual value. Quality metrics are used in the QA and QC processes. Some examples of quality metrics
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include Defect density, Failure rate, Availability, Reliability and Test coverage.
3. Quality Checklists A checklist is a structured tool, used to verify that a set of required steps has been performed. They are usually phrased as imperatives (“Do this”) or interrogatories (“Have you done this?”). Many organizations have standardized checklists available to ensure consistency in frequently performed tasks. Checklists are also available from professional associations or commercial service providers. Quality checklists are used in the quality control process. 4. Process Improvement Plan It is a subsidiary of the project management plan. It details the steps for analyzing processes that will facilitate the identification of waste and non-value added Activity. It increases customer value, such as:
Process boundaries.
Process configuration.
Process metrics.
Targets for improved performance.
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Exercise 4-11 - Create Quality Management Plan
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 4.11 – Create Quality Management Plan For the case study provided by the instructor, create the project quality management plan. Note: Use form 9.6 in Appendix 2
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4.13 Develop Human Resource Plan
Figure 4-32- Develop Human Resource Plan Process
Source: PMBOK® Guide – Fourth Edition, page 218
1.Activity
resource
requirements
2.Enterprise
environmental
factors
3.Organizational
process assets
Inputs
1.Organization
charts and
position
descriptions
2.Networking
3.Organizational
theory
Tools &
Techniques
1.Human
resource plan
Outputs
Definition Develop Human Resource Plan is the process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan.
Source: PMBOK® Guide – Fourth Edition, page 218
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Process Interaction
Figure 4-33- Develop Human Resource Plan – Process Interaction
The Project Management Team The project management team is subset of the project team. This group is referred to as, the core, executive or leadership team. Their main role is the project management and leadership activities. The figure below shows the position of the project management team with respect to the other stakeholders.
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Source: PMBOK® Guide – Fourth Edition, page 24
Figure 4-34 - Develop Human Resource Plan Process
4.13.1 Inputs to Develop Human Resource Plan
1. Activity resource requirements 2. Enterprise environmental factors 3. Organizational process assets
4.13.2 Tools and Techniques for Develop Human Resource Plan
1. Organization charts and position descriptions 2. Networking 3. Organizational theory
1. Organization Charts and Position Descriptions These are tools used to document roles and responsibilities of each team member with respect to the project tasks. Unclear roles and responsibilities are a major source of team conflicts. It is very important to document them clearly, and maintain the clarity by a continuous update and review. They may be documented in any of the following formats:
P
Project
Management
Team
Other Project
Team
Members
Project
Manager
Project
SponsorProject
Team
Project
StakeholdersOperations
Mngt.
Other
Stake-Holders
Portfolio
Manager
Program
Manager
Project
Mngt.
Office
Customers
/ Users
Sellers /
Business Partners
Function
al Managers
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Figure 4-35- Organization Charts and Position Descriptions
Hierarchical This is a top-down graphical format that is used to represent the team members’ positions and their relationships with each other. Like the work Breakdown Structure (WBS), this is an Organization Breakdown Structure (OBS)
Matrix A responsibility assignment matrix is used to show the relationship between the project work packages or activities and the project team members. Below is an example of the responsibility matrix in RACI (Responsibility, Accountability, Consult and Inform) format.
Table 4-4- Human Resource Management Process Mapping
Text oriented A routinely produced text documents; that describe the responsibility of each team member. They can be given many names, like position description, job description, job responsibilities etc.
Activity John Jimmy
John
Jimmy
Sara
Name: ________
Role: ___________Responsibility: _______Authority: ________
Hierarchical Matrix Text oriented
RACI Chart Person
Activity John Jimmy Sarah Andrew Ben
Produce functional requirements A R I I I
Produce system Pilot (first branch) I A R C C
Roll our remaining branchesI A R C C
Roll our remaining branchesA I I R I
R=Responsible A=Accountable C=Consult I=Inform
RACI= Responsible, Accountable, Consult and Inform
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2. Networking Interaction with others in the organization, either in formal or informal way can be done by the following: Information interaction with others. Proactive correspondences. Luncheon meetings. Informal conversations. Trade conferences.
3. Organizational Theory
Organizational theory provides information regarding the ways that people, teams, and organizational units behave. Applying proven principles shortens the amount of time needed to create the Human Resource Planning outputs and improves the likelihood that the planning will be effective.
4.13.3 Outputs of Develop Human Resource Plan
1. Human resource plan, that includes: Roles and responsibilities Project organization charts Staffing management plan
Roles and Responsibilities: Role: The label describing the portion of a project for which a person is accountable. Authority: The right to apply project resources makes decisions, and sign approvals. Responsibility: The work that a project team member is expected to perform in order to complete the project's activities. Competency: The skill and capacity required to complete project activities. Project Organization Charts Graphics display of the project team members that shows the communication and reporting lines, below are examples.
Figure 4-36- Develop Human Resource Plan – Process Interaction
P
Project
Management
Team
Other Project
Team
Members
Project
Manager
Project
SponsorProject
Team
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Staffing Management Plan Staffing management plan includes, but not limited to the following:
Staff acquisition Resource calendars Staff release plan Training needs Recognition and rewards Compliance Safety
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4.14 Plan Communications
Figure 4-37 - Plan Communications Process
Source: PMBOK® Guide – Fourth Edition, page 252
1.Stakeholder
register
2.Stakeholder
management
strategy
3.Enterprise
environmental
factors
4.Organizational
process assets
Inputs
1.Communication
requirements
analysis
2.Communication
technology
3.Communication
models
4.Communication
methods
Tools &
Techniques
1.Communication
management
plan
2.Project
document
updates
Outputs
Definition Plan Communications is the process of determining the project stakeholder information needs and defining a communication approach.
Source: PMBOK® Guide – Fourth Edition, page 251
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Process Interaction
Figure 4-38 Plan Communications – Process Interaction
4.14.1 Inputs to Plan Communications
1- Stakeholder register 2- Stakeholder management strategy 3- Enterprise environmental factors 4- Organizational process assets
4.14.2 Tools and Techniques for Plan Communications
1- Communication requirements analysis 2- Communication technology 3- Communication models 4- Communication methods
1. Communication requirements analysis The analysis of the communications requirements results in the sum of the information needs of the project stakeholders. These requirements are defined by combining the type and format of information needed with an analysis of the value of that information. Project resources are expended only on communicating information that contributes to success, or where a lack of communication can lead to failure. This
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does not mean that “Bad news” should not be shared; rather, the intent is to prevent overwhelming stakeholders with minutiae. Information typically required to determine project communications requirements includes:
Organization charts
Project organization and stakeholder responsibility relationships
Disciplines, departments, and specialties involved in the project
Logistics of how many persons will be involved with the project and cat which locations
Internal information needs (e.g., communicating across organizations)
External information needs (e.g., communicating with the media or contractors)
Stakeholder information.
Communication Channels Project team members communicate with each other through channels. The ore the members are, the more channels exist. Every party has its own communication needs. The number of Communication channel can be determined by the following equation:
2. Communication technology Communications technology factors that can affect the project include:
The urgency of the need for information
The availability of technology
The expected project staffing
The length of the project
The project environment
3. Communication models Both the sender and receiver of a message have responsibilities in communication. The sender of information is responsible for making information clear and complete. The receiver is responsible for making sure that all of the information has been received and understood.
Communication Model Components
Encode
Message and feedback-message
Medium
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Noise
Decode Sender / Receiver Model The communication model states the following:
An idea is translated in the brain into words (encode)
The lips spell out the message in words that are understood by the receiving party
The words travel in the medium to the receiver
The message is received by the receiving party and translated back into the idea (encoding)
Figure 4-39- Sender / Receiver Model
It is important to note here that the responsibility of ensuring the successful message delivery is on the sender. He has to ensure that a feedback happens from the receiver to confirm his understanding.
4. Communication Methods Many communication methods exist for the project team to communicate, depending on the need and situation, as follows:
Interactive Communication: a Multidirectional, most efficient to ensure a common understanding.
Push communication: Sent to specific recipient, ensure that information is distributed but does not ensure that it reached or understood.
Pull communication: for a large volume of information or audience, intranet, e-learning etc.
30
1- Idea
2- Encode
4- Decode
5- Encode
3- Message
6- Message Feedback
Sender
Receiver
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4.14.3 Outputs of Plan Communications
1- Communication management plan 2- Project document updates
1. Communication management plan The communication management plan includes, but not limited to:
Stakeholder communication requirements
Information to be communicated, including language, format, content, and level of detail;
Reason for the distribution of that information
Time frame and frequency for the distribution of required information
Person responsible for communicating the information
Person responsible for authorizing release of confidential information
Person or groups who will receive the information
Methods or technologies used to convey the information, such as memos, e-mail, and/or press releases
Resources allocated for communication activities, including time and budget
Escalation process identifying time frames and the management chain (names) for escalation of issues that cannot be resolved at a lower staff level.
Method for updating and refining the communications management plan as the project progresses and develops;
Glossary of common terminology
Flow charts of the information flow in the project, workflows with possible sequence of authorization, list of reports and meeting plans, etc.
Communication constraints usually derived from specific legislation or regulation, technology, and organizational policies, etc.
2. Project document updates This planning process may result into changing some of the already prepared documents, like:
Project schedule
Stakeholder register
Stakeholder management strategy
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Exercise 4-12 - Number of Communication Channels
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 4.12 – Number of Communication Channels How many communication channels exist in a project with a project manager, three team members and another three stakeholders?
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4.15 Plan Risk Management
Figure 4-40- Plan Risk Management Process
Source: PMBOK® Guide – Fourth Edition, page 277
1.Project scope
statement
2.Cost management
plan
3.Schedule
management plan
4.Communication
management plan
5.Enterprise
environmental
factors
6.Organizational
process assets
Inputs
1.Planning
meetings and
analysis
Tools &
Techniques
1.Risk
management
plan
Outputs
Definition Risk Management Planning is the process of defining how to conduct risk management activities for a project.
Source: PMBOK® Guide – Fourth Edition, page 276
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Process Interaction
Figure 4-41 - Plan Risk Management – Process Interaction
Uncertainty Risks are originated from uncertainties. Many decisions are taken while most of the information is not complete or “uncertain”, so the nature of decision is that they are taken with certain amount of uncertainty involved. Only when things are “certain”, the decision id found wrong or right. Risk Management as a Proactive Approach Risks are events that “May or May not” happen in the future. Project managers are working on influencing the risk before they happen, once a risk is realized “happened”, then it is not any more a risk, it is a “certain” event that requires corrective actions (contingencies). Risk Tolerance Risk tolerance is the degree to which organizations are willing to accept risks. Organizations may accept risks if they are within the tolerance they set. Risks should be balanced with the rewards that may be gained by taking them. Known / Unknown Risks Known risks:
Those that have been identified and analyzed.
It may be possible to plan for known risks. Unknown risks:
Cannot be managed
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Project managers may address them by applying a general contingency plan, based on past experience with similar projects.
Threats and Opportunities Organizations perceive risk as:
Threats to project success
Opportunities to enhance chances of project success Risks that are threats to the project may be accepted if the risk is in balance with the reward that may be gained by taking the risk.
4.15.1 Inputs to Plan Risk Management
1. Project scope statement 2. Cost management plan 3. Schedule management plan 4. Communication management plan 5. Enterprise environmental factors 6. Organizational process assets
4.15.2 Tools and Techniques for Plan Risk Management
1. Planning meetings and analysis
1. Planning meetings and analysis Project teams hold planning meetings to develop the risk management plan. Attendees at these meetings may include:
Project manager
Selected project team members
Stakeholders
Anyone in the organization with responsibility to manage the risk planning and execution activities
Others, as needed. General organizational templates for risk categories and definitions of terms will be tailored to the specific project such as:
Levels of risk
Probability by type of risk
Impact by type of objectives
Probability and impact matrix The outputs of these activities will be summarized in the risk management plan.
4.15.3 Outputs of Plan Risk Management
1. Risk management plan
1. Risk management plan
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The risk management plan describes how risk management will be structured and performed on the project. It becomes a subset of the project management plan and will include the following:
Methodology
Roles and responsibilities
Budgeting
Timing
Risk categories
Definitions of risk probability and impact
Probability and impact matrix
Revised stakeholders’ tolerances
Reporting formats
Tracking
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4.16 Identify Risks
Identify Risk Team Participants in risk identification activities can include the following:
Project manager
Project team members
Risk management team (if assigned)
Subject matter experts from outside the project team
Customers
End users
Other project managers
Stakeholders
Risk management experts Identify Risk is Iterative Identify Risk is an iterative process because new risks may become known as the project progresses through its life cycle. The frequency of iteration and who participates in each cycle will vary from case to case. The project team should be involved in the process so that they can develop and maintain a sense of ownership of, and responsibility for, the risks and associated risk response actions. Stakeholders outside the project team may provide additional objective information. Identify Risk Following Process The Identify Risk process usually leads to the Qualitative Risk Analysis process. Alternatively, it can lead directly to the Quantitative Risk Analysis process when conducted by an experienced risk manager.
Definition Identify risk determines which risks might affect the project and documents their characteristics.
Source: PMBOK® Guide – Fourth Edition, page 282
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Figure 4-42 - Identify Risks Process
Source: PMBOK® Guide – Fourth Edition, page 282
Process Interaction
Figure 4-43 Identify Risks – Process Interaction
1. Risk MP
2. Activity cost
estimates
3. Activity duration
estimates4. Scope baseline
5. Stakeholder register
6. Cost MP
7. Schedule MP
8. Quality MP9. Project documents
10. Enterprise env.
factors
11.Organizational
process assets
Inputs
1.Documentation
reviews
2. Information
gathering
techniques
3.Checklist
analysis
4.Assumptions
analysis
5.Diagramming
techniques
6.SWOT analysis
7.Expert judgment
Tools &
Techniques
1. Risk register
Outputs
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4.16.1 Inputs to Identify Risks
1- Risk management plan 2- Activity cost estimates 3- Activity duration estimates 4- Scope baseline 5- Stakeholder register 6- Cost management plan 7- Schedule management plan 8- Quality management plan 9- Project documents 10- Enterprise environmental factors 11- Organizational process assets
4.16.2 Tools and Techniques for Identify Risks
1- Documentation reviews 2- Information gathering techniques 3- Checklist analysis 4- Assumptions analysis 5- Diagramming techniques 6- SWOT analysis 7- Expert judgment
1. Documentation reviews A structured review may be performed of project documentation, including:
Plans
Assumptions
Prior project files
Other information The quality of the plans, as well as consistency between those plans and with the project requirements and assumptions, can be indicators of risk in the project. 2. Information gathering techniques Information gathering techniques that include but not limited to the following:
Brainstorming
Delphi technique
Interviewing
Root cause identification
Strengths, weaknesses
3. Checklist analysis Risk identification checklists can be developed based on historical information and knowledge that has been accumulated from previous
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similar projects and from other sources of information. The lowest level of the RBS can also be used as a risk checklist. While a checklist can be quick and simple, it is impossible to build an exhaustive one. Care should be taken to explore items that do not appear on the checklist. The checklist should be reviewed during project closure to improve it for use on future projects. 4. Assumptions analysis Every project is conceived and developed based on a set of hypotheses, scenarios, or assumptions. Assumptions analysis is a tool that explores the validity of assumptions as they apply to the project. It identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions
5. Diagramming techniques The following techniques will be used in this process:
Cause-and-effect diagrams (Ishikawa or fishbone diagrams)
System or process flow charts
Influence diagrams
6. SWOT analysis When used in Risk Identification, SWOT analysis involves examining the project from each of the SWOT perspectives in order to increase the breadth of risks considered. Depending upon the magnitude of impact to the organization, SWOT analysis for the project can parallel SWOT analysis as applied to strategic planning for the organization and will use many of the same elements. This approach uses the following components:
Strengths
Weaknesses
Opportunities
Threats The above can also be seen as internal and external components, as follows: Internal Components - Strengths and weaknesses Strengths and weaknesses are internal to your project and organization, and can be assessed through:
Internal surveys
Focus Groups
Open Forums
Internal reports: finance, performance, quality, production capabilities
External Components - Opportunities and Threats
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Opportunities and threats are external to your project and/or organization, and can be assessed through:
Internal and external surveys
Industry research on global trends and competition
Marketing research on customer needs and preferences Opportunities and Threats can be identified by examining the following factors:
The Competition
Markets
Technological Advances
Political and Economic Climate
7. Expert judgment Subject matter experts internal or external to the organization, such as engineering or statistical experts, validate data and techniques.
4.16.3 Outputs of Identify Risks
1- Risk register
1. Risk Register The primary outputs from Risk Identification are the initial entries into the risk register, which becomes a component of the project management plan. The risk register ultimately contains the outcomes of the other risk management processes as they are conducted. The preparation of the risk register begins in the Risk Identification process with the following information, and then becomes available to other project management and Project Risk Management processes.
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Exercise 4-13 - Risk List
Exercise 4.13 – Identify Risks In the provided case stud, identify 10 potential risks that may come up during the project execution. Note: Use form 9.7 in Appendix 2 Do not fill the Probability, Impact and Overall Impact columns.
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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4.17 Perform Qualitative Risk Analysis
Figure 4-44- Perform Qualitative Risk Analysis Process
Source: PMBOK® Guide - Fourth Edition, page 289
1.Risk register
2.Risk
management
plan
3.Project scope
statement
4.Organizational
process assets
Inputs
1.Risk probability
and impact
assessment
2.Probability and
impact matrix
3.Risk data quality
assessment
4.Risk
categorization
5.Risk urgency
assessment
6.Expert judgment
Tools &
Techniques
1.Risk register
updates
Outputs
Definition Perform Qualitative Risk Analysis includes methods for prioritizing the identified risks for further action, such as Quantitative Risk Analysis or Risk Response Planning.
Source: PMBOK® Guide – Fourth Edition, page 289
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Process Interaction
Figure 4-45- Perform Qualitative Risk Analysis – Process Interaction
4.17.1 Inputs to Perform Qualitative Risk Analysis
1- Risk register 2- Risk management plan 3- Project scope statement 4- Organizational process assets
4.17.2 Tools and Techniques for Perform Qualitative Risk Analysis
1- Risk probability and impact assessment 2- Probability and impact matrix 3- Risk data quality assessment 4- Risk categorization 5- Risk urgency assessment 6- Expert judgment
1. Risk probability and impact assessment Risk probability assessment investigates the likelihood that each specific risk will occur. Risk impact assessment investigates the potential effect on a project objective such as time, cost, scope, or quality, including both negative effects for threats and positive effects for opportunities. 2. Probability and impact matrix Risks can be prioritized for further quantitative analysis and response, based on their risk rating. Ratings are assigned to risks based on their assessed probability and impact. Evaluation of each risk’s importance
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and, hence, priority for attention is typically conducted using a look-up table or a probability and impact matrix. Such a matrix specifies combinations of probability and impact that lead to rating the risks as low, moderate, or high priority. The organization should determine which combinations of probability and impact result in a classification of high risk “red condition”, moderate risk “yellow condition”, and low risk “green condition”. Impact can be ordinal (low, moderate, high, and very high) or cardinal (.1/ .3/ .5/ .7/ .9). Below is s sample probability and impact matrix
Figure 4-46- Probability and Impact Matrix
3. Risk data quality assessment A qualitative risk analysis requires accurate and unbiased data if it is to be credible. Analysis of the quality of risk data is a technique to evaluate the degree to which the data about risks is useful for risk management. It involves examining the degree to which the risk is understood and the accuracy, quality, reliability, and integrity of the data about the risk. The use of low-quality risk data may lead to a qualitative risk analysis of little use to the project. If data quality is unacceptable, it may be necessary to gather better data. Often, collection of information about risks is difficult, and consumes time and resources beyond that originally planned. 4. Risk categorization Risks to the project can be categorized by:
Sources of risk
The area of the project affected
Other useful category
51
1.5
1.0
0
5.0
3.0
.5
9.0
6.0
1.9
0.9
Ve
ry H
igh
0.5
Me
diu
m
0.1
Ve
ry L
ow
Very Low
1.5
Medium
5.5
Very High
8.5
Pro
ba
bilit
y
Impact
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To determine areas of the project most exposed to the effects of uncertainty. Grouping risks by common root causes can lead to developing effective risk responses. 5. Risk urgency assessment Risks requiring near-term responses may be considered more urgent to address. Indicators of priority can include time to affect a risk response, symptoms and warning signs, and the risk rating. 6. Expert judgment Subject matter experts internal or external to the organization, such as engineering or statistical experts, validate data and techniques.
4.17.3 Outputs of Perform Qualitative Risk Analysis
1- Risk register updates
1. Risk register updates The risk register is initiated during the Risk Identification process. The risk register is updated with information from Qualitative Risk Analysis and the updated risk register is included in the project management plan. The risk register updates from Qualitative Risk Analysis include:
Relative ranking or priority list of project risks
Risks grouped by categories
Causes of risks or project areas requiring particular attention
List of risks requiring response in the near-term
List of risks for additional analysis and response
Watch lists of low priority risks
Trends in qualitative risk analysis results The following table shows a sample of prioritized risks
Figure 4-47- Qualitatively Sorted Risks
* RISK Item Prb. Impact Overall
Risk
Poor understanding of customer’s requirements
Unavailable H/W before 3rd party arrival
Unavailable resources during Ramadan
Hardware component de-release
Management change
Requirements Change
1
2
3
4
5
6
L
M
M
H
M
L
H
L
M
M
H
H
H
L
M
H
H
H
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Exercise 4-14 - Qualitative Risk Prioritization
Exercise 4.14 – Qualitative Risk Prioritization Based on the previous exercise, study each risk and assign a value (L, M, H) to each of the following parameter for each risk:
1- Probability 2- Impact 3- Overall Impact
`
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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4.18 Perform Quantitative Risk Analysis
Perform Quantitative Risk Analysis is performed on risks that have been prioritized by the Qualitative Risk Analysis process as potentially and substantially impacting the project’s competing demands. The Perform Quantitative Risk Analysis process analyzes the effect of those risk events and assigns a numerical rating to those risks. It also presents a quantitative approach to making decisions in the presence of uncertainty.
Figure 4-48- Perform Quantitative Risk Analysis Process
Source: PMBOK® Guide - Fourth Edition, page 295
1.Risk register
2.Risk
management
plan
3.Cost
management
plan
4.Schedule
management
plan
5.Organizational
process assets
Inputs
1.Data gathering
and
representation
techniques
2.Quantitative risk
analysis and
modeling
techniques
3.Expert judgment
Tools &
Techniques
1.Risk register
update
Outputs
Definition Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of the identified risks on overall project objectives.
Source: PMBOK® Guide – Fourth Edition, page 294
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Process Interaction
Figure 4-49- Perform Quantitative Risk Analysis – Process Interaction
4.18.1 Inputs to Perform Quantitative Risk Analysis
1. Risk register 2. Risk management plan 3. Cost management plan 4. Schedule management plan 5. Organizational process assets
4.18.2 Tools and Techniques for Perform Quantitative Risk Analysis
1. Data gathering and representation techniques 2. Quantitative risk analysis and modeling techniques 3. Expert judgment
1. Data gathering and representation techniques Interviewing Interviewing techniques are used to quantify the probability and impact of risks on project objectives. The information needed depends upon the type of probability distributions that will be used Probability distributions Continuous probability distributions represent the uncertainty in values, such as durations of schedule activities and costs of project
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components. Discrete distributions can be used to represent uncertain events, such as the outcome of a test or a possible scenario in a decision tree. Continuous Distribution Examples:
Asymmetrical distributions
Uniform distributions Probability distribution types are:
Uniform
Normal
Triangular Below is example for each:
Uniform Normal Triangular
Figure 4-50- Probability distributions
2. Quantitative risk analysis and modeling techniques This includes the following techniques:
Sensitivity analysis Sensitivity analysis helps to determine which risks have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values. Expected monetary value analysis Expected monetary value (EMV) analysis is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen. The EMV of opportunities will generally be expressed as positive values, while those of risks will be negative. EMV is calculated by multiplying the value of each possible outcome by its probability of occurrence, and adding them together. The EMV is calculated by multiplying the value of the event with its probability of happening. Decision tree analysis Decision tree analysis is usually structured using a decision tree diagram that describes a situation under consideration, and the implications of each of the available choices and possible
Pro
ba
bilit
y
Impact
Pro
ba
bilit
y
Impact
Pro
ba
bilit
y
Impact
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scenarios. It incorporates the cost of each available choice, the probabilities of each possible scenario, and the rewards of each alternative logical path. Solving the decision tree provides the EMV for each alternative, when all the rewards and subsequent decisions are quantified. Modeling and simulation A project simulation uses a model that translates the uncertainties specified at a detailed level of the project into their potential impact on project objectives. Simulations are typically performed using the Monte Carlo technique.
4.18.3 Outputs of Perform Quantitative Risk Analysis
1- Risk register update 1. Risk register update The risk register is initiated in the Risk Identification process and updated in Qualitative Risk Analysis. It is further updated in Quantitative Risk Analysis. The risk register is a component of the project management plan. Updates include the following main components:
Probabilistic analysis of the project
Probability of achieving cost and time objectives
Prioritized list of quantified risks
Trends in quantitative risk analysis results By the end of this process a risk list with the quantified values will be produced, as the following sample list.
Figure 4-51- Quantitatively Sorted Risks
* RISK Element Prb. Impact Overall
Risk
1
2
3
4
5
Wrong Track 2 Data on Credit Card
Installing Cables by Unqualified Team
Delay in Visa Certification
In-Operable Encryption S/W
In-Availability of Comms from SP
TOTAL
50%
40%
30%
40%
30%
1,000
2,000
1,500
2,000
1,000
500
800
500
800
300
2,900
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Exercise 4-15 - Expected Monetary Value
You’re Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 4.15 – Expected Monetary Value What is the Expected Monetary Value of an event that has 60% chance of making profit? In the case of achieving profit, the profit value will be US$ 10,000, while in the case of loss; the loss value will be US$ 3,000.
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4.19 Plan Risk Responses
Figure 4-52- Plan Risk Responses Process
Source: PMBOK® Guide - Fourth Edition, page 302
1.Risk register
2.Risk
management
plan
Inputs
1.Strategies for
negative risks or
threats
2.Strategies for
positive risks or
opportunities
3.Contingent
response
strategies
4.Expert judgment
Tools &
Techniques
1.Risk register
updates
2.Risk-related
contract
decisions
3.Project
management
plan updates
4.Project
document
updates
Outputs
Definition Risk Response Planning is the process of developing options, and determining actions to enhance opportunities and reduce threats to the project’s objectives.
Source: PMBOK® Guide – Fourth Edition, page 302
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Process Interaction
Figure 4-53- Plan Risk Responses – Process Interaction
4.19.1 Inputs to Plan Risk Responses
1. Risk register 2. Risk management plan
4.19.2 Tools and Techniques for Plan Risk Responses
1. Strategies for negative risks or threats 2. Strategies for positive risks or opportunities 3. Contingent response strategies 4. Expert judgment
1. Strategies for negative risks or threats Below are the strategies for the negative risks
Risk Avoidance Risk avoidance involves changing the project management plan to:
Eliminate the threat posed by an adverse risk
Isolate the project objectives from the risk’s impact
Relax the objective that is in jeopardy, such as extending the schedule or reducing scope.
Risk Transference Risk transference requires shifting the negative impact of a threat, along with ownership of the response, to a third party.
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Transferring the risk simply gives another party responsibility for its management; it does not eliminate it. Transferring liability for risk is most effective in dealing with financial risk exposure. Risk transference nearly always involves payment of a risk premium to the party taking on the risk. Risk Mitigation Risk mitigation implies a reduction in the probability and/or impact of an adverse risk event to an acceptable threshold. Taking early action to reduce the probability and/or impact of a risk occurring on the project is often more effective than trying to repair the damage after the risk has occurred. Risk Acceptance This is a strategy that is adopted because it is seldom possible to eliminate all risk from a project. This strategy indicates that the project team has decided not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy.
2. Strategies for positive risks or opportunities
Exploit This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. This strategy seeks to eliminate the uncertainty associated with a particular upside risk by making the opportunity definitely happen. Exploiting responses include assigning more talented resources to the project to reduce the time to completion, or to provide better quality than originally planned. Share Sharing a positive risk involves allocating ownership to a third party who is best able to capture the opportunity for the benefit of the project. Enhance This strategy modifies the “size” of an opportunity by increasing probability and/or positive impacts, and by identifying and maximizing key drivers of these positive-impact risks. Accept Being willing to take an advantage of the opportunity if it comes along, but will not actively pursuing it.
3. Contingent response strategies
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Some responses are designed for use only if certain events occur. For some risks, it is appropriate for the project team to make a response plan that will only be executed under certain predefined conditions. Events that trigger the contingency response (triggers), such as missing intermediate milestones or gaining higher priority with a supplier, should be defined and tracked. 4. Expert judgment Subject matter experts internal or external to the organization, such as engineering or statistical experts, validate data and techniques.
4.19.3 Outputs of Plan Risk Responses
1. Risk register updates 2. Risk-related contract decisions 3. Project management plan updates 4. Project document updates
1. Risk register updates These updates include:
Identified risks, their descriptions, area(s) of the project (e.g., WBS element) affected, their causes (e.g., RBS element), and how they may affect project objectives
Risk owners and assigned responsibilities
Outputs from the Qualitative and Quantitative Risk Analysis processes, including prioritized lists of project risks and probabilistic analysis of the project
Agreed-upon response strategies
Specific actions to implement the chosen response strategy
Symptoms and warning signs of risks’ occurrence
Budget and schedule activities required to implement the chosen responses
Contingency reserves of time and cost designed to provide for stakeholders’ risk tolerances
Contingency plans and triggers that call for their execution
Fallback plans for use as a reaction to a risk that has occurred, and the primary response proves to be inadequate
Residual risks that are expected to remain after planned responses have been taken, as well as those that have been deliberately accepted
Secondary risks that arise as a direct outcome of implementing a risk response
Contingency reserves that are calculated based on the quantitative analysis of the project and the organization’s risk thresholds.
2. Risk-related contract decisions
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Contractual agreements, such as agreements for insurance, services, and other items as appropriate, can be prepared to specify each party’s responsibility for specific risks, should they occur. 3. Project management plan updates
Schedule management plan
Cost management plan
Quality management plan
Procurement management plan
Human Resources management plan
Work breakdown structure
Schedule baseline
Cost performance baseline
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Exercise 4-16 - Risk Response
Exercise 4.16 – Risk Response Based on the previous exercises, document at least five risks and provide the following:
1- Quantitative Probability, Impact and Overall Impact 2- Risk response (strategy) use all of the following:
a. Avoidance b. Transference c. Acceptance d. Mitigation e. Exploit
3- For risks that will have mitigation strategy, identify the mitigation plans and the contingency plans.
` Note: Use form 9.8 in Appendix 2
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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4.20 Plan Procurements
Figure 4-54- Plan Procurements Process
Source: PMBOK® Guide – Fourth Edition, page 317
1. Scope baseline
2. Req. documentation
3. Teaming agreements
4. Risk register
5. Risk-related contract decisions
6. Activity resource req.
7. Project schedule
8. Activity cost
estimates 9. Cost performance
baseline
10.Enterprise env.
factors
11. Organizational PA
Inputs
1.Make-or-buy
analysis
2.Expert judgment
3.Contract types
Tools &
Techniques
1.Procurement
management
plan
2.Procurement
statements of
work
3.Make-or-buy
decisions
4.Procurement
documents
5.Source selection
criteria
6.Change requests
Outputs
Definition Plan Procurement is the process of documenting project purchases decision
Source: PMBOK® Guide – Fourth Edition, page 317
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Process Interaction
Figure 4-55- Plan Procurements Data Flow
Contracts A contract is a mutually binding legal agreement that obligates the seller to provide the specified products, services, or results, and obligates the buyer to pay the seller. Buyer Seller Model The seller can be called a contractor, subcontractor, vendor, service provider, or supplier, depending on the buyer’s position in the project acquisition cycle. The buyer can be called a client, customer, prime contractor, contractor, acquiring organization, governmental agency, service requestor, or purchaser. The seller can be viewed during the contract life cycle first as a bidder, then as the selected source, and then as the contracted supplier.
4.20.1 Inputs to Plan Procurements
1. Scope baseline 2. Req. documentation 3. Teaming agreements 4. Risk register 5. Risk-related contract decisions 6. Activity resource req. 7. Project schedule 8. Activity cost estimates 9. Cost performance baseline
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10. Enterprise environmental factors 11. Organizational process assets
4.20.2 Tools and Techniques for Plan Procurements
1. Make-or-buy analysis 2. Expert judgment 3. Contract types
1. Make-or-Buy Analysis Some general rules to keep in mind during the decision-making process are:
Leverage internal resources first (staff, factories, etc.) and supplement with procured resources as needed.
Consider both the direct costs and indirect costs during make-or-buy analysis.
Primary contractors may subcontract parts of the work. Considering that overhead expenses will be charged by both parties, it may not be advantageous to the primary contractor to subcontract the majority (over half) of the work.
Reasons to Make over Buy Sometimes, the organization may decide to make the product internally, rather than outsourcing it from outside based on many factors, like:
Protect proprietary information that provides competitive advantage
Surplus staff
Surplus plant capacity
Ease of project control Make-or-buy decisions should always take into consideration both the direct costs to the buyer and the indirect costs to the buyer
Make Product Buy Product
• Direct Costs: Labor Material Other
• Indirect Costs: Overhead Salaries of Executives General Administrative Other
• Direct Costs: Purchase price Other
• Indirect Costs: Contract administration Other
Table 4-5 - Reasons to Make over Buy
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Exercise 4-17 - Make or Buy Decision
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 4.17 –Make or Buy Decision Based on the supplied case study, which part of the project will your organization prefer to make and which part your organization will prefer to buy? Provide your reasons.
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2. Expert Judgment Expert technical judgment will often be required to assess the inputs to and outputs from this process. Expert purchasing judgment can also be used to develop or modify the criteria that will be used to evaluate offers or proposals made by sellers. 3. Contract Types The three major types of contracts are:
Fixed-price or lump-sum contracts.
Cost-reimbursable contracts.
Cost-Plus-Fee (CPF) or Cost-Plus-Percentage of Cost (CPPC).
Cost-Plus-Fixed-Fee (CPFF).
Cost-Plus-Incentive-Fee (CPIF).
Time and Material (T&M) contracts. Although there are three choices of contract type from which to choose, the “default” choice commonly selected is fixed-price. This may cause problems for the project if the conditions under which to use this contract type are not true. For example, fixed-price contracts are most useful when no scope changes are expected Purchase Order (PO) Purchase Order (PO) is a legal document (contract) issued by the buyer authorizing a purchase. It is a unilateral document in that only one party; the buyer in this case, need sign the document. PO’s are used for simple procurements.
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Fixed Price Contract
Fixed Price
Other Names Lump-sum, Firm Fixed Price, FP
When to Use • Scope of work is well defined • Substantial changes are not expected
Advantages • Requires least amount of managerial oversight by buyer
• Least cost risk to buyer if scope is well defined • Seller has incentive to control costs • Project budget is known at the beginning
Disadvantages • Takes greatest effort to create scope of work • Scope changes are difficult to accommodate and
typically expensive
Forms of Contract Type
• Firm Fixed Price Contracts (FFP) • Fixed Price Incentive Fee Contracts (FPIF) • Fixed Price with Economic Price Adjustment
Contracts (FP-EPA)
Cost Risk Carried By…
Seller – assuming that the product is well defined, the seller carries the most risk for higher costs
Table 4-6 - Fixed Price Contract
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Cost-Reimbursable Contract
Fixed Price
Other Names CR
When to Use • Desired results are known but requirements to achieve results are not known
• Flexibility in change control is needed
Advantages • Takes less effort to create scope of work than FP • Provides more flexibility to the buyer in
accommodating scope changes than FP
Disadvantages • Requires greater amount of managerial oversight by buyer than FP
• Seller has less incentive to control costs than in FP
Forms of Contract Type
• Cost plus Fixed Fee Contracts (CPFF) • Cost Plus Incentive Fee Contracts (CPIF) • Cost Plus Award Fee Contracts (CPAF)
Cost Risk Carried By…
Buyer – total costs are not known until project completion
Table 4-7 - Cost Reimbursable Contract
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Time and Material Contract
Fixed Price
Other Names T&M, Unit Price, Hybrid of FP and CR
When to Use Short-term project
Scope of work is not well defined
Cost is small
Buyer wants more control
Advantages Takes least effort to create scope of work and contract
Ease of use when the item being purchased is skilled labor (engineering or technical) or when work must begin immediately (repairs, emergencies, etc.)
Disadvantages Seller has no incentive to control costs
Requires greatest amount of day-to-day oversight by buyer
Cost Risk Carried By…
Buyer – medium risk because T&M typically used for short-term delivery. The seller has no financial risk on T&M contracts.
Table 4-8 - Time and Material Contract
4.20.3 Outputs of Plan Procurements
1. Procurement management plan 2. Procurement statements of work 3. Make-or-buy decisions 4. Procurement documents 5. Source selection criteria 6. Change requests
1. Procurement Management Plan The Procurement Management plan document contains the guidelines of how the organization will go about the procurement in this project, it contains the following information:
Types of contracts to be used
Risk management issues
Whether independent estimates will be used and if they are needed as evaluation criteria;
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Those actions the project management team can take unilaterally, if the performing organization has a prescribed procurement, contracting, or purchasing department.
Standardized procurement documents
Managing multiple suppliers
Coordinating procurement with other project aspects, such as scheduling and performance reporting.
Any constraints and assumptions that could affect planned procurements.
Handling the make-or-buy decisions and linking them into the Administer Procurements and Close Procurements
Setting the scheduled dates in each contract for the contract deliverables and coordinating with the schedule development and control processes
Identifying requirements for performance bonds or insurance contracts to mitigate some forms of project risk;
Establishing the direction to be provided to the sellers on developing and maintaining a work breakdown structure (WBS)
Establishing the form and format to be used for the procurement/contract statements of work
Identifying pre-qualified sellers, if any to be used
Procurement metrics to be used to manage contracts and evaluate sellers
2. Procurement Statements of Work Each procurement statement of work defines, for those items being purchased or acquired, just the portion of the project scope that is included within the related contract. The statement of work (SOW) for each contract is developed from:
The project scope statement
The project work breakdown structure (WBS)
WBS dictionary. The procurement SOW describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the item. 3. Make-or-Buy Decisions The documented decisions of what project products, services, or results will be either acquired or will be developed by the project team. 4. Procurement Documents A term such as proposal is generally used when other considerations, such as technical skills or technical approach, are paramount. However, the terms are often used interchangeably and care is taken not to make unwarranted assumptions about the implications of the term used.
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A term such as proposal is generally used when other considerations, such as technical skills or technical approach, are paramount. However, the terms are often used interchangeably and care is taken not to make unwarranted assumptions about the implications of the term used. Common Names for Different Types of Procurement Documents
Invitation for bid (IFB)
Request for proposal (RFP)
Request for quotation (RFQ)
Tender notice
Invitation for negotiation
Contractor initial response. Comparison of Procurement Documents Types
Type When to use
IFB, ITB, RFB
For simple procurements
To obtain best price from prospective seller(s)
RFI • To obtain information on a specific company or product from prospective seller(s)
RFQ For less complex procurements
To obtain information and firm quotes from prospective seller(s).
Takes less time than RFP to: write, receive response from sellers, and evaluate
RFP, RFT Used for complex procurements – such as new development
To obtain firm quotes from prospective seller(s), but also a description in detail of the seller’s approach to fulfilling requirements: management approach, key human resource requirements, technical specifications, special provisions, terms and conditions, etc.
Takes more time than RFQ to: write, receive response from sellers, and evaluate
Table 4-9 - Comparison of Procurement Documents Types
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5. Source Selection Criteria During the planning phase, the project team will identify the selection criteria, on which the project source or vendor selection will be based on. Below are some factors of a typical selection criteria:
Understanding of need
Overall or life-cycle cost
Technical capability
Risk
Management approach
Technical approach
Warranty
Financial capacity
Production capacity and interest
Business size and type
Past performance of sellers
References
Intellectual property rights
Proprietary rights
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Exercise 4-18-Contract Types
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 4.18 –Contract Types 1- Based on the supplied case study, what contract should your
organization engage with the supplier? Provide your reasons. 2- What are the project circumstance that will make your
organization go in this project in the following contracts: a. Fixed Price b. Time and Material
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5. Project Execution Phase
This is the phase where all the project plans are executed and moved from being on paper to reality on the ground. During this phase, the following eight execution processes are executed:
4.3 Direct and Manage Project Execution 8.2 Perform Quality Assurance 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team 10.3 Distribute Information 10.4 Manage Stakeholder Expectations 12.2 Conduct Procurements
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5.1 Direct and Manage Project Execution
Figure 5-1- Direct and Manage Project Execution Process
Source: PMBOK® Guide - Fourth Edition, page 84
1.Project
management
plan
2.Approved
change
requests
3.Enterprise
environmental
factors
4.Organizational
process assets
Inputs
1.Expert judgment
2.Project
management
information
system
Tools &
Techniques
1.Deliverables
2.Work
performance
information
3.Change
requests
4.Project
management
plan updates
5.Project
document
updates
Outputs
Definition Direct and Manage Project Execution is the process of performing the work defined in the project management plan to achieve the project objectives.
Source: PMBOK® Guide – Fourth Edition, page 83
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Process Interaction
Figure 5-2- Direct and Manage Project Execution – Process Interaction
5.1.1 Inputs to Direct and Manage Project Execution
1- Project management plan 2- Approved change requests 3- Enterprise environmental factors 4- Organizational process assets
1- Enterprise Environmental Factors
Organizational, company or customer culture and structure
Infrastructure (e.g. existing facilities and capital equipment)
Personnel administration (e.g. hiring and firing guidelines, employee performance reviews and training records)
Stakeholder risk tolerances
Project management information systems
2- Organizational Process Assets
Standardized guidelines and work instructions
Communication requirements defining allowed communication media, record retention, and security requirements
Issue and defect management procedures defining issue and defect controls, issue and defect identification and resolution , and action item tracking
Process measurement database used to collect and make available measurement data on processes and products
Project files from prior projects
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Issue and defect management database containing historical issue and defect status, control information, issue and defect resolution, and action item results.
5.1.2 Tools and Techniques for Direct and Manage Project Execution
1- Expert judgment 2- Project management information system
1. Expert judgment
Other units from the organization
Consultants
Stakeholders, including customers or sponsors
Professional and technical associations 2. Project management information system
It is an automated system, is used by the project management team to:
Support generation of a preliminary project scope statement
Facilitate feedback as the document is refined
Control changes to the project scope statement
Release the approved document
5.1.3 Outputs of Direct and Manage Project Execution
1- Deliverables 2- Work performance information 3- Change requests 4- Project management plan updates 5- Project document updates
1. Deliverables
Unique and verifiable product
Must be produced to complete the process, phase or a cycle 2. Work performance information
Deliverable status
Schedule progress
Costs incurred 3. Change requests
Corrective action
Preventive action
Defect repair
Updates 4. Project management plan updates
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Requirements management plan
Schedule management plan
Cost management plan
Quality management plan
Human resource plan
Communications management plan
Risk management plan
Procurement management plan
Project baseline 5. Project document updates
Requirements documents
Project logs (issue, assumptions. etc.)
Risk register
Stakeholder register
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5.2 Perform Quality Assurance
Figure 5-3 - Perform Quality Assurance Process
Source: PMBOK® Guide – Fourth Edition, page 202
1.Project
management
plan
2.Quality metrics
3.Work
performance
information
4.Quality control
measurements
Inputs
1.Plan Quality and
Perform Quality
Control tools
and techniques
2.Quality audits
3.Process analysis
Tools &
Techniques
1.Organizational
process asset
updates
2.Change requests
3.PM plan updates
4.Project
document
updates
Outputs
Definition Perform Quality Assurance is the process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.
Source: PMBOK® Guide – Fourth Edition, page 202
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Process Interaction
4.2 Develop
Project
Management Plan
8.2 Perform Quality
Assurance
Enterprise/
Organization
`Project
Documents
Ø Quality management plan
Ø Process improvement plan
Ø Project
Documents
Updates
8.1 Plan Quality
8.3 Perform
Quality Control
Ø Quality Metrics
Involved Documents (IN)
ØQuality control measurements
ØQuality metrics
ØQuality management plan
ØProcess improvement plan
ØWork performance information
Involved Documents (OUT)
ØOrganizational process assets
updates
ØChange requests
ØProject management plan
updates
ØProject document updates
4.5 Perform
Integrated change
Control
Ø Change
requests
Ø Project management
plan updates
Ø Work Performance information
Ø Organizational
process assets
updates
4.3 Direct and
Manage Project
Execution
Ø Quality Control
measurements
Source: PMBOK® Guide – Fourth Edition
Diagram Developed by Techno Management
Ø
Figure 5-4- Perform Quality Assurance– Process Interaction
5.2.1 Inputs of Perform Quality Assurance
1- Project management plan 2- Quality metrics 3- Work performance information 4- Quality control measurements
5.2.2 Tools and Techniques for Perform Quality Assurance
1- Plan Quality and Perform Quality Control tools and techniques 2- Quality audits 3- Process analysis
1. Plan Quality and Perform Quality Control
Cost-benefit analysis
Cost of quality
Control charts
Benchmarking
Design of experiments
Statistical sampling
Flowcharting
Proprietary quality
management methodologies
Additional quality planning tools
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2. Quality Metrics Structured, independent review to determine whether project activities comply with policies, processes, and procedures. The objective of a quality audit is to identify inefficient and ineffective policies, processes, and procedures in use on the Quality audits may be scheduled or at random, and may be carried out by properly trained in-house auditors or by third parties. Quality audits confirm the implementation of approved change requests, corrective actions, defect repairs, and preventive actions. 3. Process Analysis Process analysis follows the steps outlined in the process improvement plan to identify any needed improvements. This analysis also examines:
Problems experienced
Constraints experienced
Non-value-added activities Includes root cause analysis, a specific technique to analyze a problem / situation, determine the underlying causes that lead to it, and create preventive actions for similar problems.
5.2.3 Outputs of Perform Quality Assurance
2- Organizational process asset updates 3- Change requests 4- PM plan updates 5- Project document updates
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Exercise 5-1 - Quality Assurance Activities
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 5.1 – Quality Assurance Activities Based on the provided case study, identify some activates that you need to perform to ensure the adherence to the required quality
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5.3 Acquire Project Team
Figure 5-5 - Sequence Activities Process
Source: PMBOK® Guide – Fourth Edition, page 226
1.Project
management
plan
2.Enterprise
environmental
factors
3.Organizational
process assets
Inputs
1.Pre-assignment
2.Negotiation
3.Acquisition
4.Virtual teams
Tools &
Techniques
1.Project staff
assignments
2.Resource
calendars
3.Project
management
plan updates
Outputs
Definition Acquire Project Team is the process of confirming human resource availability and obtaining the team necessary to complete project assignments.
Source: PMBOK® Guide – Fourth Edition, page 225
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Process Interaction
Figure 5-6- Acquire Project Team – Process Interaction
5.3.1 Inputs of Acquire Project Team
1- Project management plan 2- Enterprise environmental factors 3- Organizational process assets
Enterprise Environmental Factors
Existing information for human resources including who is available
Personnel administration policies such as those that affect outsourcing
Organizational structure Location or multiple locations
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5.3.2 Tools and Techniques for Acquire Project Team
1- Pre-assignment 2- Negotiation 3- Acquisition 4- Virtual teams
1. Pre-assignment In some cases, project team members are known in advance. This situation can occur if:
The project is the result of specific people being promised as part of a competitive proposal.
The project is dependent on the expertise of particular persons. Some staff assignments are defined within the project charter.
2. Negotiation The project management team may need to negotiate with:
Functional managers to ensure that the project receives appropriately competent staff in the required time frame.
Other project management teams within the performing organization to appropriately assign scarce or specialized resources.
3. Acquisition When the performing organization lacks the in-house staff needed to complete the project, the required services can be acquired from outside sources. This can involve hiring individual consultants or subcontracting work to another organization.
4. Virtual Team Virtual team creates new possibilities when acquiring project team members. Virtual teams can be defined as groups of people with a shared goal, who fulfill their roles with little or no time spent meeting face to face. The availability of electronic communication, such as e-mail and video conferencing, has made such teams feasible. The virtual team format makes it possible to:
Form teams of people from the same company who live in widespread geographic areas.
Add special expertise to a project team, even though the expert is not in the same geographic area.
Incorporate employees who work from home offices.
Form teams of people who work different shifts or hours
Include people with mobility handicaps.
Move forward with projects that would have been ignored due to travel expenses.
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5.3.3 Outputs of Acquire Project Team
1- Project staff assignments. 2- Resource calendars. 3- Project management plan updates.
1. Project Staff Assignments The project is staffed when appropriate people have been assigned to work on it. Documentation can include:
Project team directory Memos to team members Names inserted into other parts of the project management plan,
such as project organization charts and schedules.
2. Resource calendars Each resource will have a calendar that documents the time period he or she will be available during the project life cycle.
3. Project management plan updates As part of the project management plan, updates to the human resource plan may reflect any changes or additions that respond to any planning output.
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5.4 Develop Project Team
Figure 5-7- Develop Project Team Process
Source: PMBOK® Guide - Fourth Edition, page 230
Objectives of Developing Project Team
Improve knowledge and skills of team members Improve feelings of trust and agreement among team members Create a dynamic and cohesive team culture
1.Project staff
assignments
2.Project
management
plan
3.Resource
calendars
Inputs
1. Interpersonal
skills
2.Training
3.Team-building
activities
4.Ground rules
5.Co-location
6.Recognition and
rewards
Tools &
Techniques
1.Team
performance
assessments
2.Enterprise
environmental
factors updates
Outputs
Definition Develop Project Team is the process of improving the competencies, team interaction, and the overall team environment to enhance project performance.
Source: PMBOK® Guide – Fourth Edition, page 229
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Process Interaction
Figure 5-8- Develop Project Team – Process Interaction
5.4.1 Inputs to Develop Project Team
1- Project staff assignments 2- Project management plan 3- Resource calendars
5.4.2 Tools and Techniques for Develop Project Team
1- Interpersonal skills 2- Training 3- Team-building activities 4- Ground rules 5- Co-location 6- Recognition and rewards
1. Interpersonal skills Interpersonal skills, sometimes known as Soft skills, are particularly important to team development. The following aspects are part of the soft skills the project manager should practice:
Understanding the sentiments of project team members Anticipating their actions
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Acknowledging their concerns Following up on their issues
Key interpersonal skills include, but not limited to the following:
Leadership Team Building Motivation Communication Influencing Decision Making Political and Cultural Awareness Negotiations Source: PMBOK® Guide – Fourth Edition, page 417
Leadership Leadership involves focusing the efforts of a group of people towards a common goal. The key elements are respect and trust rather than fear and submission. Team Building It is the process of helping a group of individuals to work interdependently with each other. Team building activities:
Establish goals Define and negotiate roles and procedures
Team building Processes: Communication Conflict management Motivation Leadership
Motivation Project success depends highly on the team commitment, which is related to their level of motivation. It involves creating the environment to meet the project objectives. Communication It is identified as one of the single biggest reason for project success (or failure). Project manager should be aware of:
Communication styles of other parties Cultural issues Relationships Personalities Situational context
Influencing It is the strategy of sharing power. It involves relying on the interpersonal skills to get others to cooperate towards a common goal like:
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Lead by example Clarify how eh decision will be made Use flexible interpersonal style Apply the power skillfully and cautiously
Decision Making Four basic decision making styles:
Command Consultation Consensus Coin Flip (random)
A decision making model (Six Phase): Problem definition Problem solution generation Ideas to action Solution action planning Evaluation of the outcome and process
Political and Cultural Awareness Politics are inevitable in project environments. Skillful use of politics and power will help the project managers to succeed. Ignoring project politics will lead to difficulty in managing people Negotiations It is the strategy of conferring with parties of shared or opposed interests. The focus is on compromising or reaching an agreement. It is an integral part of project management, if done well, increases the chances of success
2. Training Training includes all activities designed to enhance the competencies of the project team members. Training can be formal or informal. Examples of training methods include:
Classroom Online Computer-based On-the-job training from another project team member Mentoring Coaching
3. Team-Building Activities Team building activities include management and individual actions taken specifically and primarily to improve team performance. Enhancing team performance can result from various activities. A few examples are:
Involving team members in the planning process Establishing rules for dealing with conflict
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Improving the climate for team discussions Improving stakeholder interaction by holding an off-site,
professionally facilitated event.
Team Formation Stage Forming: Initial judgments about teammates are made Storming: Control issues emerge Norming: Productive works begins Performing: Optimum productivity reached Adjourning: Project is done, team moves out of the project
4. Ground Rules Ground rules establish clear expectations regarding acceptable behavior by project team members. Early commitment to clear guidelines decreases misunderstandings and increases productivity. The process of discussing ground rules allows team members to discover values that are important to one another. All project team members share responsibility for enforcing the rules once they are established.
5. Co-Location Co-location involves placing many or all of the most active project team members in the same physical location. This is to enhance their ability to perform as a team. Co-location can be temporary, such as at strategically important times during the project, or for the entire project. Co-location strategy can include a meeting room, sometimes called a war room, with electronic communication devices, places to post schedules, and other conveniences that enhance communication and a sense of community. 6. Recognition and Rewards Part of the team development process involves recognizing and rewarding desirable behavior. Only desirable behavior should be rewarded. Willingness to work overtime to meet an aggressive schedule objective should be rewarded. Needing to work overtime as the result of poor planning should not be rewarded. Win-lose (zero sum) rewards that only a limited number of project team members can achieve, such as team member of the month, can hurt team cohesiveness. Rewarding win-win behavior that everyone can achieve, such as turning in progress reports on time, tends to increase support among team members.
5.4.3 Outputs of Develop Project Team
1- Team performance assessments 2- Enterprise environmental factors updates
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Motivational Theories When planning reward and recognition activities, as well as when using a project manager’s reward power, motivational theory is an important consideration. What motivates people to perform? Consider the theories of:
Maslow McGregor Herzberg.
Maslow’s Hierarchy of Needs According to Maslow’s theory:
Once a level of need is satisfied, it is no longer a motivational factor.
One cannot ascend to the next level until the levels below are fulfilled.
People do not perform for security or money, but rather to get a chance to contribute (self-actualization).
Figure 5-9- Maslow’sHierarchyofNeeds
McGregor’s Theory of X & Y Theory X: Workers are lazy and require close and constant supervision. Theory Y: Workers want to work and do not require constant supervision.
Herzberg’s Theory
Self-
Actualizat
ion
Self-fulfillment, growth,
learning
Esteem Accomplishment, respect
Social Love, affection, approval
SafetySecurity, stability, free from
harm
PhysiologicalAir, water, food, housing,
clothing
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Motivating Agents: Motivators are mostly intrinsic to the job and serve as motivators. Hygiene Factors (Demotivators): Are mostly environmental, the absence of which demotivate, however when present do not necessarily serve to motivate.
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5.5 Manage Project Team
Figure 5-10- Manage Project Team Process
Source: PMBOK® Guide - Fourth Edition, page 236
1.Project staff
assignments
2.Project
management
plan
3.Team
performance
assessments
4.Performance
reports
5.Organizational
process assets
Inputs
1.Observation and
conversation
2.Project
performance
appraisals
3.Conflict
management
4. Issue log
5. Interpersonal
skills
Tools &
Techniques
1.Enterprise
environmental
factors updates
2.Organizational
process assets
updates
3.Change
requests
4.Project
management
plan updates
Outputs
Definition Manage Project Team is the process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance.
Source: PMBOK® Guide – Fourth Edition, page 236
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Process Interaction
Figure 5-11- Manage Project Team – Process Interaction
5.5.1 Inputs to Manage Project Team
1. Project staff assignments 2. Project management plan 3. Team performance assessments 4. Performance reports 5. Organizational process assets
5.5.2 Tools and Techniques for Manage Project Team
1. Observation and conversation 2. Project performance appraisals 3. Conflict management 4. Issue log 5. Interpersonal skills
1. Observation and conversation The project manager needs to stay in touch with the work and attitudes of project team members. Monitors indicators such as:
Progress toward project deliverables Accomplishments Interpersonal issues.
2. Project Performance Appraisals
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The need for formal or informal project performance appraisals depends on:
The length of the project Complexity of the project Organizational policy Labor contract requirements The amount and quality of regular communication.
Objectives for conducting performance appraisals during the course of a project can include:
Re-clarification of roles and responsibilities Structured time to ensure team members receive positive
feedback in what might otherwise be a hectic environment Discovery of unknown or unresolved issues Development of individual training plans Establishment of specific goals for future time periods.
3. Conflict Management Successful conflict management results in greater productivity and positive working relationships. Sources of conflict include scarce resources, scheduling priorities, and personal work styles. Team ground rules, group norms, and solid project management practices, like communication planning and role definition, reduce the amount of conflict. When managed properly, differences of opinion are healthy, and can lead to increased creativity and better decision-making. When the differences become a negative factor, project team members are initially responsible for resolving their own conflicts. If conflict escalates, the project manager should help facilitate a satisfactory resolution. Conflict should be addressed early and usually in private, using a direct, collaborative approach. If disruptive conflict continues, increasingly formal procedures will need to be used, including the possible use of disciplinary actions.
The term “conflict” often carries negative connotations. Conflict is inevitable on most projects due to many factors:
Competing needs of stakeholders Competition for limited resources Limited power of the project manager
Unnecessary conflict can be avoided to some extent through:
Communication to stakeholders of project objectives, status, and changes
Clearly and separately assigned tasks
Examples of Sources of Conflict Personalities Cost Objectives Schedule Objectives
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Administrative procedures Project Priorities Limited Human Resources (Personnel) Technical Opinions
Conflict Resolution Approaches
Withdrawing / Avoiding: Retreating from the area of disagreement or postponing a decision that will likely cause conflict
Smoothing / Accommodating: Emphasizes areas of agreement, not differences of opinion
Compromising: Give and take approach that brings some degree of satisfaction to all parties
Forcing: Imposing one viewpoint at the expense of another Collaborating: Including multiple viewpoints from different
perspectives. Confronting / Problem Solving: identify the real problem, then
solve it
4. Issue log A written log should document persons responsible for resolving specific issues by a target date. The log helps the project team monitor issues until closure. Issue resolution addresses obstacles that can block the team from achieving its goals. These obstacles can include factors such as differences of opinion, situations to be investigated, and emerging or unanticipated responsibilities that need to be assigned to someone on the project team.
5. Interpersonal Skills High command on interpersonal skills is required from the project team to properly handling conflicts. Detailed skills are included in section 9.3.2 above, however the following ones are important to be applied to resolve team conflicts within the project: Leadership Influencing Decision making
5.5.3 Outputs of Manage Project Team
1- Enterprise environmental factors updates 2- Organizational process assets updates 3- Change requests 4- Project management plan updates
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5.6 Distribute Information
Effective Information Distribution Effective information distribution includes a number of techniques including:
Sender-receiver models
Choice of media
Writing style
Meeting management techniques
Presentation techniques
Facilitation techniques
Figure 5-12- Distribute Information Process
Source: PMBOK® Guide - Fourth Edition, page 258
1.Project
management
plan
2.Performance
reports
3.Organizational
process assets
Inputs
1.Communication
methods
2. Information
Distribution tools
Tools &
Techniques
1.Organizational
process assets
updates
Outputs
Definition Distribute information is the process of making relevant information available to project stakeholders as planned.
Source: PMBOK® Guide – Fourth Edition, page 258
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Process Interaction
Figure 5-13- Distribute Information – Process Interaction
5.6.1 Inputs to Distribute Information
1- Project management plan 2- Performance reports 3- Organizational process assets
5.6.2 Tools and Techniques for Distribute Information
1- Communication methods 2- Information Distribution tools
1. Communication methods To achieve the effective communication, the project team has to use all possible and available communication methods. This includes, but limited to:
Individual meetings
Group meetings
Video and audio conferences
Computer chats
Remote communication methods
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2. Information Distribution tools Project information can be distributed by many tools, including:
Project meetings
Hard-copy document distribution
Manual filing systems
Shared-access electronic databases
Fax Voice mail
Telephone
Video
Web conferencing
Web publishing
Electronic tools for project management, such as Web interfaces to scheduling and project management software, meeting and virtual office support software, portals, and collaborative work management tools.
5.6.3 Outputs of Distribute Information
1- Organizational process assets updates
1. Organizational process assets updates The following documents may be updated as a result of this process:
Stakeholder notifications
Project reports
Project presentations
Project records
Feedback from stakeholders
Lessons learned documentation
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5.7 Manage Stakeholder Expectations
Proactive Approach Managing stakeholders is a proactive approach in the following perspectives:
Managing stakeholders expectations increase the chance of project acceptance
Proactively managing concerns before turning into issues
Resolve identified issues before they become concerns, problems and then disasters
Figure 5-14- Manage Stakeholder Expectations Process
Source: PMBOK® Guide - Fourth Edition, page 146
Definition Manage stakeholder expectations is the process of communicating and working with stakeholders to meet their needs and addressing issues as they occur.
Source: PMBOK® Guide – Fourth Edition, page 261
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Process Interaction
Figure 5-15- Manage Stakeholder Expectations – Process Interaction
5.7.1 Inputs to Manage Stakeholder Expectations
1. Stakeholder register 2. Stakeholder management strategy 3. Project management plan 4. Issue log 5. Change log 6. Organizational process assets
5.7.2 Tools and Techniques for Manage Stakeholder Expectations
1. Communication methods 2. Interpersonal skills 3. Management skills
1. Interpersonal Skills Managing stakeholders need applying interpersonal skills, like:
Building trust
Resolve conflicts
Active listening
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Overcoming resistance to change
5.7.3 Outputs of Manage Stakeholder Expectations
1- Organizational process assets updates 2- Change requests 3- Project Management plan updates 4- Project document updates
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5.8 Conduct Procurement
Figure 5-16 - Conduct Procurement Process
Source: PMBOK® Guide – Fourth Edition, page 329
1.PM plan
2.Procurement
documents
3.Source selection
criteria
4.Qualified seller list
5.Seller proposals
6.Project documents
7.Make-or-buy
decisions
8.Teaming
agreements
9.Organizational PA
Inputs
1.Bidder
conferences
2.Proposal
evaluation
techniques
3. Independent
estimates
4.Expert judgment
5.Advertising
6. Internet search
7.Procurement
negotiations
Tools &
Techniques
1.Selected sellers
2.Procurement
contract award
3.Resource
calendars
4.Change
requests
5.Project
management
plan updates
6.Project
document
updates
Outputs
Definition Conduct Procurement is the process of obtaining seller responses, selecting a seller, and awarding a contract.
Source: PMBOK® Guide – Fourth Edition, page 329
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Process Interaction
Figure 5-17- Conduct Procurement Data Flow
5.8.1 Inputs of Conduct Procurement
1- Project Management plan 2- Procurement documents 3- Source selection criteria 4- Qualified seller list 5- Seller proposals 6- Project documents 7- Make-or-buy decisions 8- Teaming agreements 9- Organizational process assets
5.8.2 Tools and Techniques for Conduct Procurement
1- Bidder conferences 2- Proposal evaluation techniques 3- Independent estimates 4- Expert judgment 5- Advertising 6- Internet search 7- Procurement negotiations
1. Bidder Conferences Bidder conferences are meetings with prospective sellers prior to preparation of a bid or proposal. They are used to ensure that all prospective sellers have a clear, common understanding of the procurement. Responses to questions can be incorporated into the
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procurement documents as amendments. All potential sellers are given equal standing during this initial buyer and seller interaction to produce the best bid. 2. Proposal Evaluation Techniques Proposals are seller-prepared documents that describe the seller’s ability and willingness to provide the requested products, services, or results described in the procurement documentation. Proposals are prepared in accordance with the requirements of the relevant procurement documents and reflect the application of applicable contract principles. The seller’s proposal constitutes a formal and legal offer in response to a buyer’s request. After a proposal is formally submitted, the buyer sometimes requests the seller to supplement its proposals with an oral presentation. The oral presentation is meant to provide additional information with respect to the seller’s proposed staff, management proposal, and technical proposal, which can be used by the buyer in evaluating the seller’s proposal. Evaluation Criteria Evaluation criteria are developed and used to rate or score proposals. They can be Objective or subjective Evaluation criteria are often included as part of the procurement documents. Selection criteria can be identified and documented to support an assessment for a more complex product or service. Evaluation criteria can be as straightforward as price only. It can also be complex, based on ratings in several categories:
Demonstrated understanding of requirements
Management Approach
Technical capacity
Life cycle cost
Financial capacity (stability )
Project management capacity (Organizational pm maturity)
Past performance on similar projects Weighting System It is a method for quantifying qualitative data to minimize the effect of personal prejudice on seller selection. Most such systems involve assigning a numerical weight to each of the evaluation criteria, rating the prospective sellers on each criterion, multiplying the weight by the rating, and totaling the resultant products to compute an overall score. Weighting systems typically involve four steps:
Assign a numerical weight (percentage) to each of the evaluation criteria
Rate prospective sellers, or their proposal, on each criterion
Multiply the weight from step 1 by the rate from step 2 to derive the score for that criterion
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Add all scores from step 3 to derive the total score for each seller
Below is an example of an evaluation sheet that compares between two proposals:
Proposal 1 Proposal 2
Evaluation Criteria Weight Rating Score Rating Score
Demonstrated understanding of requirements
20%
Management Approach
Project management capacity (Organizational pm maturity)
Key human resource requirements
20%
Technical capacity
Skills
Knowledge
15%
Life cycle cost
Purchase price
Operating cost
20%
Financial capacity (stability )
10%
Past performance on similar projects
15%
Total 100 %
Table 5-1 - Weighting System
3. Independent Estimates The procuring organization can either prepare its own independent estimates or have prepared an independent estimate of the costs as a check on proposed pricing. This independent estimate is sometimes
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referred to as a Should-cost estimate. Significant differences from these cost estimates can be an indication that the contract statement of work was not adequate 4. Expert Judgment May include:
Multi-discipline review teams
Cross-functional discipline 5. Advertising Existing lists of potential sellers can often be expanded by placing advertisements in general circulation publications. Some government jurisdictions require public advertising of certain types of procurement items; most government jurisdictions require public advertising of pending government contracts. 6. Internet Search Internet is considered to be a very good source for small commodities procurement. It may not be appropriate for large projects where close monitoring is required. 7. Procurement Negotiations It clarifies the structure and requirements of the contract so that mutual agreement can be reached prior to signing the contract. The final contract language reflects all agreements reached. The subjects covered include:
Responsibilities and authorities
Applicable terms and law
Technical and business management approaches
Proprietary rights
Contract financing
Technical solution
Overall schedule
Payments and price.
5.8.3 Outputs of Conduct Procurement
1- Selected sellers 2- Procurement contract award 3- Resource calendars 4- Change requests 5- Project management plan updates 6- Project document updates
5- Execution Phase
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Exercise 5-2 - Evaluation Criteria
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 5.2 –Evaluation Criteria Based on the provided case study; set evaluation criteria to select between the proposals. Use the format shown in the “Weighting System” section. Assign weight to each criterion, make sure that a total is 100%.
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6. Project Monitor and Control Phase
Nothing is easier than putting mice plans on paer and hanging project
schedules on the ealls. But the realy challenge is ensuring that these plans
are really implemented as the way they are planned. Control is needed to
ensure that all planned activeitoes hat are being executed ae really achieving
their planned tarher. This is the main functin of the following ten Monitor and
Control process group:
4.4 Monitor and Control Project Work 4.5 Perform Integrated Change Control 5.4 Verify Scope 5.5 Control Scope 6.6 Control Schedule 7.3 Control Costs 8.3 Perform Quality Control 10.5 Report Performance 11.6 Monitor and Control Risks 12.3 Administer Procurements
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6.1 Monitor and Control Project Work
Monitoring is an aspect of project management performed throughout the project. Monitoring includes collecting, measuring and distributing performance information, and assessing measurements and trends to effect process improvements. The Monitor and Control Project Work process is concerned with:
Comparing actual project performance against the project management plan
Assessing performance to determine whether any corrective or preventive actions are indicated and then recommending those actions as necessary
Identifying new risks and analyzing, tracking, and monitoring existing project risks
Maintaining an accurate, timely information base concerning the project's product (s) and their associated documentation through project completion.
Provide information to support status reporting, progress measurement, and forecasting
Providing forecasts to update current cost and schedule information
Monitoring implementation of approved changes as they occur
Definition Monitor and Control Project Work is the process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan.
Source: PMBOK® Guide – Fourth Edition, page 89
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Figure 6-1- Monitor and Control Project Work Process
Source: PMBOK® Guide - Fourth Edition, page 89
Process Interaction
Figure 6-2- Monitor and Control Project Work – Process Interaction
1.Project
management
plan
2.Performance
reports
3.Enterprise
environmental
factors
4.Organizational
process assets
Inputs
1.Expert judgment
Tools &
Techniques
1.Change
requests
2.Project
management
plan updates
3.Project
document
updates
Outputs
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6.1.1 Inputs to Monitor and Control Project Work
1. Project management plan 2. Performance reports 3. Enterprise environmental factors 4. Organizational process assets
6.1.2 Tools and Techniques for Monitor and Control Project Work
1. Expert judgment
6.1.3 Outputs of Monitor and Control Project Work
1- Change requests 2- Project management plan updates 3- Project document updates
1. Change requests
Corrective action
Preventive action
Defect repair 2. Project management plan updates Not limited to:
Schedule management plan
Cost management plan
Quality management plan
Scope baseline
Schedule baseline
Cost performance baseline 3. Project document updates Not limited to:
Forecasts
Performance reports
Issue log
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6.2 Perform Integrated Change Control
Change Management Activities
Influencing the factors that circumvent integrated change control so that only approved changes are implemented'
Reviewing analyzing and approving change requests promptly, which is essential, as a slow decision may negatively affect time, cost, or the feasibility of a change
Managing the approved changes
Maintaining the integrity of baseline by releasing only approved changes for incorporations into the project management plan and project documents.
Reviewing, approving, or denying all recommended corrective and preventive actions.
Coordinating changes across the entire project (e.g. a proposed schedule change will often affect cost, risk, quality and staffing)
Documenting the complete impact of change requests
Configuration Management Activities
Configuration identification
Configuration status accounting
Configuration verification and audit
Definition Perform Integrated Change Control is the process of reviewing all change requests, approving changes and managing changes to the deliverables, organizational process assets, project documents and the project management plan.
Source: PMBOK® Guide – Fourth Edition, page 93
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Figure 6-3- Perform Integrated Change Control Process
Source: PMBOK® Guide - Fourth Edition, page 95
Process Interaction
Figure 6-4- Perform Integrated Change Control – Process Interaction
1.Project
management
plan
2.Work
performance
information
3.Change
requests
4.Enterprise
environmental
factors
5.Organizational
process assets
Inputs
1.Expert judgment
2.Change control
meetings
Tools &
Techniques
1.Change
requests
2.Project
management
plan updates
3.Project
document
updates
Outputs
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6.2.1 Inputs to Perform Integrated Change Control
1. Project management plan 2. Work performance information 3. Change requests 4. Enterprise environmental factors 5. Organizational process assets
6.2.2 Tools and Techniques for Perform Integrated Change Control
1. Expert judgment 2. Change control meetings
6.2.3 Outputs of Perform Integrated Change Control
1. Change requests 2. Project management plan updates 3. Project document updates
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6.3 Verify Scope
Verifying scope includes reviewing deliverables with the customer or sponsor to ensure that they are completed satisfactorily and obtaining formal acceptance of deliverables by the customer or sponsor. Verify scope does not happen only at the end of the project, but it is at the end of each phase and at the key milestones.
Figure 6-5- Verify Scope Process
Source: PMBOK® Guide - Fourth Edition, page 123
6.3.1 Inputs to Verify Scope
1. Project management plan 2. Requirements documentation 3. Requirements traceability matrix 4. Validated deliverables
1.Project
management
plan
2.Requirements
documentation
3.Requirements
traceability
matrix
4.Validated
deliverables
Inputs
1. Inspection
Tools &
Techniques
1.Accepted
deliverables
2.Change
requests
3.Project
document
updates
Outputs
Definition Verify Scope is the process of formalizing acceptance of the completed project deliverables.
Source: PMBOK® Guide – Fourth Edition, page 103
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6.3.2 Tools and Techniques for Verify Scope
1. Inspection
1. Inspection This is the tool that includes activities such as measuring, examining, and verifying to determine whether work and deliverables meet requirements and product acceptance criteria. Inspections are sometimes called reviews, product reviews, audits and walkthroughs.
6.3.3 Outputs of Verify Scope
1- Accepted deliverables 2- Change requests 3- Project document updates
1. Accepted deliverables Deliverables that are signed off after passing the acceptance testing are documented and made ready to be used during the “Close Project or Phase” process. 2. Change requests Unaccepted deliverables for not meeting the acceptance criteria will be handled by issuing change requests. These change requests will be processed by further processes until the deliverable is accepted and signed off.
3. Project document updates Based on the verification process, some documents may be updated. These include, but not limited to the following documents:
Project budget
Project schedule
Scope statement
Requirement document
Different project plans
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6.4 Control Scope
Controlling the project scope ensures all requested changes and recommended corrective or preventive actions are processed through the Perform Integrated Change Control process.
Figure 6-6- Control Scope Process
Source: PMBOK® Guide - Fourth Edition, page 125
Scope Change Considerations While doing the scope change process, the following issues should be considered:
Will the request to change project scope affect the project schedule?
Will the request to change project scope affect the project cost?
Will the request to change project scope affect the project quality?
Is the total impact a significant change to the project overall?
What is the impact of no change?
1.Project
management
plan
2.Work
performance
information
3.Requirements
documentation
4.Requirements
traceability
matrix
5.Organizational
process assets
Inputs
1.Variance
analysis
Tools &
Techniques
1.Work
performance
measurements
2.Organizational
process assets
updates
3.Change
requests
4.Project
management
plan updates 5. Project document
updates
Outputs
Definition Control Scope is the process of monitoring the status of the project and product scope and managing changes to the scope baseline.
Source: PMBOK® Guide – Fourth Edition, page 103
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What are all the alternative methods of accommodating the requested change?
Does the individual requesting the scope change have the authority to approve resulting changes to project cost, schedule, quality, or other considerations?
6.4.1 Inputs to Control Scope
1. Project management plan 2. Work performance information 3. Requirements documentation 4. Requirements traceability matrix 5. Organizational process assets
1. Project Management Plan The Control Scope process will use different control information set in the different project plans. Below is some of this information.
Scope baseline
Scope management plan
Change management plan
Configuration management plan
Requirements management plan
6.4.2 Tools and Techniques for Control Scope
1. Variance analysis
1. Variance analysis Project performance measurements are used to assess the magnitude of variation from the original scope baseline. Important aspects of project scope include determining the cause and degree of variance relative to the scope baseline and deciding whether corrective or preventive action is required.
6.4.3 Outputs of Control Scope
1. Work performance measurements 2. Organizational process assets updates 3. Change requests 4. Project management plan updates 5. Project document updates
1. Work performance measurements These are the measures that will determine if the deliverable is conformant with the acceptance criteria or not. Measures are normally in the form of variance analysis between the plan and the actual; these measures will be used to decide on the deliverable acceptance.
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2. Organizational process assets updates Below are some examples of the organizational process assets that will be updated:
Cause of variance
Corrective actions chosen
Lessons learned
3. Change requests Analysis of the scope performance may result in change requests that will remedy the problem and bring back the scope into the baseline by issuing the proper change request that handles the cause of the problem. 4. Project management plan updates If the approved change request have an effect on the project scope, then the following baselines may be affected also and need to be considered (updated):
Cost baseline
Schedule baseline
WBS
WBS Dictionary 5. Project document updates Some project documents may need to be updated, including, but not limited to:
Requirements documents
Requirement traceability matrix
Scope Change Control System A scope change control system is used to define the procedures by which the project scope can be changed. It may include the paper work, tracking systems, and approval levels necessary for authorizing changes.
Figure 6-7- A Typical Change Management Process
Start
Raise Change
Control Form
Identify Change
Assess Priority
Assess Impact of
no Change
Assess Impact on
Cost (Resources)
Assess Impact on
Schedule
Assess Impact on
Quality
Propose Change to
the Baseline
Accepted
?
Urgent?
Negotiate Proposal
File the Change
End
Change the
Baseline
Implement Change
Yes
No
Yes
No
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Exercise 6-1-Simulate Requirement Change
Exercise 6.1 – Simulate Requirement Change Based on the provided case study, simulate a change and complete a change request form. Consider the following information:
1. Customer 2. Project Name 3. Project Manager 4. Change Request Date 5. WBS Task Number 6. Change Request ID 7. Priority (1-low to 5-high) 8. Requested by: 9. Identified by: 10. Assigned to: 11. Description 12. Impact of no change 13. Estimated impact on cost, schedule, quality and others 14. Supporting documentation
Note: Use form 9.9 in Appendix 2
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
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6.5 Control Schedule
Figure 6-8- Control Schedule Process
Source: PMBOK® Guide - Fourth Edition, page 160
1.Project
management
plan
2.Project
schedule
3.Work
performance
information
4.Organizational
process assets
Inputs
1.Performance
reviews
2.Variance
analysis
3.PM software
4.Resource
leveling
5.What-if analysis
6.Adjusting leads
and lags
7.Schedule
compression
8.Scheduling tool
Tools &
Techniques
1.Work
performance
measurements
2.Organizational
process assets
updates
3.Change
requests
4.PM plan
updates
5.Project
documents
updates
Outputs
Definition Control Schedule is the process of monitoring the status of the project to update project progress and manage changes to the schedule baseline.
Source: PMBOK® Guide – Fourth Edition, page 160
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Process Interaction
a
4.5 Perform
Integrated Change
Control
8.3 Perform
Quality Control
6.6 Control
Schedule
4.3 Direct and
Manage Project
Execution
4.2 Develop
Project
Management Plan
6.5 Develop
Schedule
`Project
Documents
Ø Project
management
plan
Ø Work performance
information
Ø Project Documents Updates
Ø Project schedule
Ø Schedule baseline
Involved Documents (IN)
ØProject schedule
ØSchedule baseline
ØWork performance information
ØProject management plan
ØOrganizational process assets
Involved Documents (OUT)
ØWork performance
measurements
ØChange requests
ØProject management plan
updates
ØOrganizational process assets
updates
ØProject documents updates
Ø Change requests
Ø Work performance
Ø measurements
Enterprise/
Organization
Ø Project
management
plan updates
Ø Organizational
Process assets
Ø Organizational process
assets updates
10.5 Report
Performance
Source: PMBOK® Guide – Fourth Edition
Diagram Developed by Techno Management
Ø
Figure 6-9- Control Schedule– Process Interaction
6.5.1 Inputs to Control Schedule
1- Project management plan 2- Project schedule 3- Work performance information 4- Organizational process assets
6.5.2 Tools and Techniques for Control Schedule
1- Performance reviews 2- Variance analysis 3- PM software 4- Resource leveling 5- What-if analysis 6- Adjusting leads and lags 7- Schedule compression 8- Scheduling tool
1. Performance reviews
Performance Reviews measure, compare, and analyze schedule performance such as actual start and finish dates, percent complete, and remaining duration for work in progress. If earned value management (EVM) is utilized the schedule variance (SV) and schedule performance index (SPI) are used to assess the
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magnitude of schedule variations. An important part of schedule control is to decide if the schedule variation requires corrective action or not.
2. Variance analysis Schedule performance measurements (SV, SPI) are used to assess the magnitude of variation to the original schedule baseline. The total float variance is also an essential planning component to evaluate project time performance. Important aspects schedule control include determining the cause and degree of variance relative to the schedule baseline and deciding whether corrective or preventive action is required.
Sample Tracking Chart
Figure 6-10- Schedule Valiance on Microsoft Project
6.5.3 Outputs of Control Schedule
1- Work performance measurements SV SPI
2- Organizational process assets updates Causes of variances Corrective action chosen and the reasons Other types of lessons learned from project schedule control
3- Change requests 4- PM plan updates 5- Project documents updates
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6.6 Control Costs
Figure 6-11- Control Costs Process
Source: PMBOK® Guide - Fourth Edition, page 180
1.Project
management
plan
2.Project funding
requirements
3.Work
performance
information
4.Organizational
process assets
Inputs
1.Earned value
management
2.Forecasting
3.To-complete
performance
index (TCPI)
4.Performance
reviews
5.Variance
analysis
6.Project
management
software
Tools &
Techniques
1.Work
Performance
measurements
2.Budget forecasts
3.Organizational
process assets
updates
4.Change
requests
5.PM plan
updates
6.Project
document
updates
Outputs
Definition Control Costs is the process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.
Source: PMBOK® Guide – Fourth Edition, page 179
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Process Interaction
Figure 6-12- Estimate Activity Resources – Process Interaction
Control Costs Objectives Cost control does not necessary mean cost reduction, rather ensuring that expenditures are done as planned. It includes the following:
Influencing the factors that create changes to the authorized cost baseline.
Ensuring that all change requests are acted on in a timely manner
Managing the actual changes when and as they occur
Ensuring that cost expenditures do not exceed the authorized funding, by period and in total for the project
Monitoring cost performance to isolate and understand variances from the approved cost baseline
Monitoring work performance against funds expended.
Preventing unapproved changes from being included in the reported cost or resource usage
Informing appropriate stakeholders of all approved changes and associated cost.
Acting to bring expected cost overruns within acceptable limits.
6.6.1 Inputs to Control Costs
1- Project management plan
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2- Project funding requirements 3- Work performance information 4- Organizational process assets
6.6.2 Tools and Techniques for Control Costs
1- Earned value management 2- Forecasting 3- To-complete performance index (TCPI) 4- Performance reviews 5- Variance analysis 6- Project management software
1. Earned Value Management Earned Value management (EVM) in its various forms is a commonly used method of performance measurement. It integrates project scope, cost and schedule measures to help the project management team assess and measure project performance and progress. EVM develops and monitors three key dimensions for each work package and control account:
Planned value
Earned value
Actual cost
Schedule variance
Cost variance
Schedule performance index
Cost performance index
Earned Value Components
Planned Value (PV) – Old name was (BCWS)
Earned Value (EV) – Old name was (BCWP)
Actual Costs (AC) – Old name was (ACWP)
Budget at Completion (BAC)
Estimate at Completion (EAC)
Management Reserve (MR)
Schedule Variance (SV)
Cost Variance (CV)
Schedule Performance Index (SPI)
Cost Performance Index (CPI)
S Curve
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Figure 6-13 - S Curve
Earned Value Variances
Cost Variance: CV = EV – AC Schedule Variance: SV = EV – PV
Figure 6-14 - Earned Value Diagram
AC= Actual Cost PV= Planned Value EV= Earned value BAC= Budget at Completion EAC= Estimate at Completion MR= Management Reserve
48
NOW
EAC
MRBAC
$$
Time
Contract Budget Base
PVAC
EV
NOW
EAC
MRBAC
$$
Time
Contract Budget Base
Cost Variance
Schedule VariancePV
AC
EV
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Schedule Variance
Figure 6-15 - Schedule Variance
Cost Variance
Figure 6-16 - Cost Variance
Planned Value (PV) = $ 100
Earned Value (EV) = $ 100
SV = EV - PV
SV = 100 – 100 = $ 0
Today
$100Scheduled
Actual $200
SV= EV – PV
Actual Cost (AC) = $ 200
Earned Value (EV) = $ 100
CV = EV – AC
= 100 – 200 = $ -100
Today
$100Scheduled
Actual $200
CV= EV – AC
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The 50 - 50 Rule
The 50 - 50 rule was established to overcome the problem of making subjective estimates of how far along we are on, say, a task. Upon beginning a task, charge 50% of its BCWS to its account. When the task is finally completed, charge the remaining 50% to its account.
Schedule Variance –Incomplete Tasks
Figure 6-17 - Schedule Variance, Incomplete Tasks
Cost Variance–Incomplete Tasks
Today:Earned Value (EV) = $ 50
Planned Value (PV) = $ 100
SV= EV – PV
50-100 = $ -50
Today
$100Scheduled
Actual
SV= EV - PV
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Figure 6-18 - Cost Variance, Incomplete Tasks
Today:Earned Value (EV) = $ 50
Actual Cost of (AC) = $ 80
CV = EV – AC
50-80 = $ -30
Today
$100Scheduled
ActualExpected Cost to Complete is
$200
$80
Till today
CV = EV - AC
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Multiple Tasks - Schedule Variance
Figure 6-19 - Schedule Variance, Multiple Tasks
Multiple Tasks - Cost Variance
Figure 6-20 - Cost Variance, Multiple Tasks
EV = $ 1,200
PV = - $ 1,000
SV = $ 200
Today
$300
$700
$200
Scheduled
Actual
SV= EV - PV
EV = $ 1,200
AC = - $ 850
CV = $ 350
Today
$300
$700
$200
Scheduled
Actual
$350
$400
$100
CV = EV - AC
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The Four Quadrants
Figure 6-21 - The Four Quadrants
Earned Value Equations
Table 6-1 - Earned Value Parameters
+CV
+SV
-CV
+SV
+CV
-SV
-CV
-SV
Under Over
Ahead
Behind
Schedule
Budget
Term Equation Indicates
Schedule Variance SV = EV - PV Good if >=0
Cost Variance CV = EV - AC Good if >=0
Schedule Performance Index SPI = EV/PV Good if >=1
Cost Performance Index CPI = EV/AC Good if >=1
Estimate at Completion EAC = BAC/CPI Actual cost
Estimate to Complete ETC = EAC – AC How much more will
be spent
Variance at Completion VAC = BAC - EAC Good if >=0
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Exercise 6-2-Schedule & Cost Variance
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 6.2 – Schedule & Cost Variance
For the above example, calculate the Schedule & Cost Variances, Assume 50-50 approach
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2. Forecasting Estimate at completion (EAC) that may differ from the budget at completion (BAC) based on the project performance as follows:
EAC forecast for ETC work performed at the budget rate o EAC=AC+(BAC-EV)
EAC forecast for ETC work performed at the present CPI o EAC=BAC/Cumulative CPI
EAC forecast for ETC work considering both SPI and CPI factors o EAC=AC+[(BAC-EV)/(cumulative CPI X cumulative SPI)]
3. To-Complete Performance Index (TCPI) The “To-Complete performance index” (TCPI) is the calculated projection of cost performance that must be achieved on the remaining work to meet a specified management goal, such as the BAC or the EAC as follows:
Equation for the TCPI based on the BAC: o TCPI= (BAC-EV) / (BAC-AC)
Equation for the TCPI based on the EAC: o TCPI= (BAC-EV) / (EAC-AC)
4. Performance Reviews Reviewing the project performance is done through the following:
Variance analysis
Trend analysis
Earned value performance
5. Variance Analysis Cost performance measurements (CV, CPI) are used to assess the magnitude of variation to the original cost baseline.
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6. Project Management Software
Figure 6-22 - MS Project Showing Earned Value
6.6.3 Outputs of Estimate Control Costs
1. Work Performance measurements 2. Budget forecasts 3. Organizational process assets updates 4. Change requests 5. PM plan updates 6. Project document updates
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6.7 Perform Quality Control
Figure 6-23- Estimate Activity Resources Process
Source: PMBOK® Guide - Fourth Edition, page 206
1.Project
management
plan
2.Quality metrics
3.Quality
checklists
4.Work
performance
measurements
5.Approved
change requests
6.Deliverables
7.Organizational
process assets
Inputs
1.Cause and
effect diagrams
2.Control charts
3.Flowcharting
4.Histogram
5.Pareto chart
6.Run chart
7.Scatter diagram
8.Statistical
sampling
9. Inspection
10.Approved
change requests
review
Tools &
Techniques
1.Quality control
measurements
2.Validated changes
3.Validated
deliverables
4.Organizational
process assets
updates
5.Change requests
6.PM plan updates
7.Project document
updates
Outputs
Definition Perform Quality Control is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.
Source: PMBOK® Guide – Fourth Edition, page 206
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Process Interaction
4.2 Develop
Project
Management Plan
8.3 Perform Quality
Control
Enterprise /
Organization
8.1 Plan Quality
`
Project
DocumentsUpdates
4.5 Perform
Integrated Change
Control
5.4 Verify Scope
Ø Organizational process assets
Ø Quality checklists
Ø Quality metrics
Involved Documents (IN)
ØQuality checklists
ØQuality metrics
ØQuality management plan
ØDeliverables
ØApproved change requests
ØWork performance measurements
ØOrganizational process assets
Involved Documents (OUT)
ØQuality control measurements
ØValidated deliverables
ØChange requests
ØProject management plan
updates
ØValidated changes
ØProject documents updates
ØOrganizational process assets
updates
4.2 Develop
Project
Management Plan
4.3 Direct and
Manage Project
Execution
4.5 Perform
Integrated Change
Control
8.2 Perform Quality
Assurance
Ø Quality
management plan
Ø Deliverables
Ø Quality control
measurements
Ø Change requests
Ø Project
management plan
updates
5.5 Control Scope6.6 Control
Schedule 7.3 Control Cost
Ø Approved change requests
Ø Organizational process assets updates
Ø Work performance measurements
Ø Validated changes
Ø Project document
updates
Ø Validated
deliverables
Source: PMBOK® Guide – Fourth Edition
Diagram Developed by Techno Management
Ø
Figure 6-24- Perform Quality Control – Process Interaction
6.7.1 Inputs to Perform Quality Control
1- Project management plan 2- Quality metrics 3- Quality checklists 4- Work performance measurements 5- Approved change requests 6- Deliverables 7- Organizational process assets
6.7.2 Tools and Techniques for Perform Quality Control
1- Cause and effect diagrams 2- Control charts 3- Flowcharting 4- Histogram 5- Pareto chart 6- Run chart 7- Scatter diagram 8- Statistical sampling 9- Inspection 10- Approved change requests review
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1. Cause and Effect Diagrams Also called:
Ishikawa
Fishbone
Root Cause.
Figure 6-25- Cause and Effect Diagram
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Exercise 6-3 - Fishbone Diagram
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 6.3 – Fishbone Diagram A recent report shows that your organization’s customers are moving to another competitor in increasing rate. You have been assigned the task to study and address this problem to achieve two objectives: 1. Analyze the problem 2. Identify the root cause of the problem 3. Suggest the solution roadmap. Use the fishbone diagram to help you identify the root cause of the problem
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2. Control Charts It is used to determine whether or not a process is stable or has predictable performance. It serves as a data gathering tool to show when a process is subject to special cause variation, which creates an out-of-control condition. Illustrate how a process behaves over time. Below are the main attributes of the control charts:
Figure 6-26- Control Chart - Stable Process
Process Stability A process is said to be in control of they:
The measures are within the acceptable limits, between the UCL and LCL
Less than 7 consecutive points exist on one side of the mean
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Figure 6-27- Control Chart - Unstable Process
3. Flowcharting Flowcharting helps to analyze how problems occur. A flowchart is a graphical representation of a process. There are many styles, but all process flowcharts show activities, decision points, and the order of processing. Flowcharts show how various elements of a system interrelate.
Figure 6-28Flow Chart
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4. Histogram A histogram is a bar chart showing a distribution of variables. Each column represents an attribute or characteristic of a problem/situation. The height of each column represents the relative frequency of the characteristic. This tool helps identify the cause of problems in a process by the shape and width of the distribution.
Figure 6-29- Histogram
5. Pareto Chart A Pareto chart is a specific type of histogram. It is ordered by frequency of occurrence, which shows how many defects were generated by type or category of identified cause. The Pareto technique is used primarily to identify and evaluate nonconformities.
0
10
20
30
40
50
60
70
80
90
Unit Integrate System Accept
Defects
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Figure 6-30- Pareto Diagram
6. Run Chart A run chart shows the history and pattern of variation. A run chart is a line graph that shows data points plotted in the order in which they occur. Run charts show trends in a process over time, variation over time, or declines or improvements in a process over time. Trend analysis is performed using run charts. Trend analysis involves using mathematical techniques to forecast future outcomes based on historical results. 7. Scatter Diagram A scatter diagram shows the pattern of relationship between two variables. This tool allows the quality team to study and identify the possible relationship between changes observed in two variables. Dependent variables versus independent variables are plotted. The closer the points are to a diagonal line, the more closely they are related.
Cumulative
PercentagePercent
of
Defective
Cases
Number
of
Defective
Cases
Frequency by Cause
Improper
Rotation
Noise Wobble Pressure Axle
Caulking
Case
Wobbles
Other
00
25
50
75
100
10
20
30
40
Car Problems
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Figure 6-31- Scattered Diagram
8. Statistical Sampling Statistical sampling involves choosing part of a population of interest for inspection. Appropriate sampling can often reduce the cost of quality control. There is a substantial body of knowledge on statistical sampling; in some application areas, it may be necessary for the project management team to be familiar with a variety of sampling techniques. 9. Inspection An inspection is the examination of a work product to determine whether it conforms to standards. Generally, the results of an inspection include measurements. Inspections can be conducted at any level. Inspections are also used to validate defect repairs.
6.7.3 Outputs of Perform Quality Control
1- Quality control measurements 2- Validated changes 3- Validated deliverables 4- Organizational process assets updates 5- Change requests 6- PM plan updates 7- Project document updates
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Exercise 6-4 - Quality Control Activities
Your Notes
_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Exercise 6.4 – Quality Control Activities For the case study provided by the instructor, identify some activates that you need to perform to control the project quality.
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6.8 Report Performance
Audience Performance reports need to provide information at an appropriate level for each audience. The format may range from a simple status report might show performance information, such as percent compete, or status dashboards for each area. More elaborate reports may include:
Analysis of past performance
Current Status of risks and issues
Work completed during the period
Work to be completed next
Summary of changes approved in the period
Other relevant information which must be reviewed and discussed
Figure 6-32- Report Performance Process
Source: PMBOK® Guide - Fourth Edition, page 152
1.PM plan
2.Work
performance
information
3.Work
performance
measurements
4.Budget
forecasts
5.Organizational
process assets
Inputs
1.Variance
analysis
2.Forecasting
methods
3.Communication
methods
4.Reporting
systems
Tools &
Techniques
1.Performance
reports
2.Organizational
process assets
updates
3.Change
requests
Outputs
Definition Report Performance is the process of collecting and distributing performance information, including status reports, progress information and forecasts.
Source: PMBOK® Guide – Fourth Edition, page 266
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Process Interaction
Figure 6-33- Report Performance – Process Interaction
6.8.1 Inputs to Report Performance
1. Project management plan 2. Work performance information 3. Work performance measurements 4. Budget forecasts 5. Organizational process assets
6.8.2 Tools and Techniques for Report Performance
1. Variance analysis 2. Forecasting methods 3. Communication methods 4. Reporting systems
1. Variance analysis The variance represents the “After-the-fact” look of what caused the difference between the planned and actual. Analyzing the variance involves the following:
Verify the quality of collected information
Determine the variance between the baseline and the actual
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Determine the impact of the variance
2. Forecasting methods
Time series method
Casual / econometric method
Judgmental method
Simulation
Probabilistic forecasting
Ensemble forecasting
6.8.3 Outputs of Report Performance
1. Performance reports 2. Organizational process assets updates 3. Change requests
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Group Discussion 6-1 - Paper Tower
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Group Activity – 6.1 Paper Tower In a group activity, use the material provided by the instructor to build a paper tower. The winning team will be the one with the tower with the following specifications: 1- Highest in length 2- Strongest Team members must build the tower without talking; only signs and body language should be used.
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Group Discussion 6-2 - Telephone Casse
Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________
Group Activity – 6.2 – Telephone Casse A message, that will be provided by the instructors, cross the class, should be passed through the students from to the other in whisper. The objective is to see how much distortion will happen to the message between the starting point to the final point.
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6.9 Monitor and Control Risks
Figure 6-34- Monitor and Control Risks Process
Source: PMBOK® Guide - Fourth Edition, page 308
1.Risk register
2.Project
management
plan
3.Work
performance
information
4.Performance
reports
Inputs
1.Risk
reassessment
2.Risk audits
3.Variance and
trend analysis
4.Technical
performance
measurement
5.Reserve
analysis
6.Status meetings
Tools &
Techniques
1.Risk register
updates
2.Organizational
process assets
updates
3.Change
requests
4.Project
management
plan updates
5.Project
document
updates
Outputs
Definition Monitor and Control Risks is the process of:
Implementing risk response plans
Tracking identified risks
Monitoring residual risks
Evaluating risk process effectiveness through the project
Source: PMBOK® Guide – Fourth Edition, page 308
6- Monitor and Control Phase
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Process Interaction
Figure 6-35- Monitor and Control Risks – Process Interaction
6.9.1 Inputs to Monitor and Control Risks
1. Risk register 2. Project management plan 3. Work performance information 4. Performance reports
6.9.2 Tools and Techniques for Monitor and Control Risks
1. Risk reassessment 2. Risk audits 3. Variance and trend analysis 4. Technical performance measurement 5. Reserve analysis 6. Status meetings
1. Risk Reassessment Risk Monitoring and Control often requires identification of new risks and reassessment of risks. Project risk reassessments should be regularly scheduled. Project Risk Management should be an agenda item at project team status meetings.
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2. Risk Audits Risk audits examine and document the effectiveness of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process.
3. Variance And Trend Analysis Trends in the project’s execution should be reviewed using performance data. Earned value analysis and other methods of project variance and trend analysis may be used for monitoring overall project performance.
4. Technical Performance Measurement Technical performance measurement compares technical accomplishments during project execution to the project management plan’s schedule of technical achievement. Deviation, such as demonstrating more or less functionality than planned at a milestone, can help to forecast the degree of success in achieving the project’s scope.
5. Reserve Analysis Throughout execution of the project, some risks may occur, with positive or negative impacts on budget or schedule contingency reserves. Reserve analysis compares the amount of the contingency reserves remaining to the amount of risk remaining at any time in the project, in order to determine if the remaining reserve is adequate.
6. Status Meetings Project risk management can be an agenda item at periodic status meetings. That item may take no time or a long time, depending on the risks that have been identified, their priority, and difficulty of response. Risk management becomes easier the more often it is practiced, and frequent discussions about risk make talking about risks, particularly threats, easier and more accurate.
6.9.3 Outputs of Monitor and Control Risks
1. Risk register updates 2. Organizational process assets updates 3. Change requests 4. Project management plan updates 5. Project document updates
1. Risk register updates This includes the outcomes of the risk reassessments, risk audits, and periodic risk reviews. These outcomes may include updates to:
Probability
Impact
Priority
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Response plans
Ownership
Other elements of the risk register. Outcomes can also include closing risks that are no longer applicable. 2. Organizational process assets updates Implementing contingency plans or workarounds frequently results in a requirement to change the project management plan to respond to risks. Requested changes are prepared and submitted to the Integrated Change Control process as an output of the Risk Monitoring and Control process. Approved change requests are issued and become inputs to the Direct and Manage Project Execution process and to the Risk Monitoring and Control process. 3. Change Requests This includes contingency plans and workaround plans. The latter are responses that were not initially planned, but are required to deal with emerging risks that were previously unidentified or accepted passively. Workarounds should be properly documented. Recommended corrective actions are inputs to the Integrated Change Control process 4. Project management plan updates Recommended preventive actions are used to bring the project into compliance with the project management plan. 5. Project document updates The six Project Risk Management processes produce information that can be used for future projects, and should be captured in the organizational process assets. The templates for the risk management plan, including the probability and impact matrix, and risk register, can be updated at project closure. Risks can be documented and the RBS updated. Lessons learned from the project risk management activities can contribute to the lessons learned knowledge database of the organization. Data on the actual costs and durations of project activities can be added to the organization’s databases. The final versions of the risk register and the risk management plan templates, checklists, and RBSs are included.
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6.10 Administer Procurements
During this process, both the buyer and the seller will administer the procurement contract for similar purposes. Each must ensure that both parties meet their contractual obligations and that their own legal rights are protected.
Figure 6-36 -Procurements Process
Source: PMBOK® Guide - Fourth Edition, page 335
1.Procurement
documents
2.Project
management
plan
3.Contract
4.Performance
reports
5.Approved
change requests
6.Work
performance
information
Inputs
1. Contract change
control system
2. Procurement
performance
reviews3. Inspections and
audits
4. Performance
reporting
5. Payment systems 6. Claims
administration
7. Records
management
system
Tools &
Techniques
1.Procurement
documentation
2.Organizational
process assets
updates
3.Change
requests
4.Project
management
plan updates
Outputs
Definition Administer Procurements is the process of:
Managing procurement relationships
Monitoring contract performance
Source: PMBOK® Guide – Fourth Edition, page 335
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Process Interaction
Figure 6-37- Administer Procurements – Process Interaction
6.10.1 Inputs to Administer Procurements
1- Procurement documents 2- Project management plan 3- Contract Performance reports 4- Approved change requests 5- Work performance information
6.10.2 Tools and Techniques for Administer Procurements
1- Contract change control system 2- Procurement performance reviews 3- Inspections and audits 4- Performance reporting 5- Payment systems 6- Claims administration 7- Records management system
1. Contract Change Control System A contract change control system defines the process by which the contract can be modified. It includes the paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes. The contract change control system is integrated with the integrated change control system.
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2. Procurement Performance Reviews A procurement performance review is a structured review of the seller’s progress to deliver project scope and quality, within cost and on schedule, as compared to the contract. It can include a review of seller-prepared documentation and buyer inspections, as well as quality audits conducted during seller’s execution of the work. The objective of a performance review is to identify performance successes or failures, progress with respect to the contract statement of work, and contract non-compliance that allows the buyer to quantify the seller’s demonstrated ability or inability to perform work. 3. Inspections And Audi Inspections and audits required by the buyer and supported by the seller as specified in the contract documentation, can be conducted during execution of the project to identify any weaknesses in the seller’s work processes or deliverables. If authorized by contract, some inspection and audit teams can include buyer procurement personnel. 4. Performance Reporting Performance reporting provides management with information about how effectively the seller is achieving the contractual objectives. Contract performance reporting is integrated into performance reporting. 5. Payment Systems Payments to the seller are usually handled by the accounts payable system of the buyer. On larger projects with many or complex procurement requirements, the project can develop its own payment system. In either case, the payment system includes appropriate reviews and approvals by the project management team, and payments are made in accordance with the terms of the contract. 6. Claims Administration Contested changes and constructive changes are those requested changes, where the buyer and seller cannot agree on compensation for the change, or cannot agree that a change has even occurred. These contested changes are variously called claims, disputes, or appeals. 7. Records Management System A records management system is a specific set of processes, related control functions, and automation tools that are consolidated and combined into a whole, as part of the project management information system.
6.10.3 Outputs of Administer Procurements
1. Procurement documentation
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2. Organizational process assets updates 3. Change requests 4. Project management plan updates
1. Procurement Documentation Procurement documentation includes, but is not limited to, the contract, along with all supporting schedules, requested unapproved contract changes, and approved change requests. 2. Organizational Process Assets Updates Below are the main items of the Organizational Process Assets that may be updated during this process:
Correspondence
Payment Schedules and requests
Seller performance evaluation documentation 3. Change Requests Change requests need to be tracked and monitored. Before changes are made, they should be complaints with what has been defined in the procurement management plan. Once they are approved, changes to the baselines should be done. 4. Project Management Plan Updates Procurement management plan: The procurement management plan is updated to reflect any approved change requests that affect procurement management. Contract management plan: Each contract management plan is updated to reflect any approved change requests that affect contract administration.
7- Close Out Phase
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7. Project Closing Phase
Although, at this point of time, the project technically is finished, but many
loop holes will always remain and need to be closed out. This is the objectives
of the following two Close Out process group:
4.6 Close Project or Phase 12.4 Close Procurements
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7.1 Close Project or Phase
Figure 7-1- Close Project or Phase Process
Source: PMBOK® Guide - Fourth Edition, page 100
1.Project
management
plan
2.Accepted
deliverables
3.Organizational
process assets
Inputs
1.Expert judgment
Tools &
Techniques
1.Final product,
service, or
result transition
2.Organizational
process assets
updates
Outputs
Definition Close Project or Phase is the process of finalizing all project activities across all the project management process groups to formally complete the project or phase.
Source: PMBOK® Guide – Fourth Edition, page 99
7- Close Out Phase
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Process Interaction
Figure 7-2- Close Project or Phase – Process Interaction
7.1.1 Inputs to Close Project or Phase
1. Project management plan 2. Accepted deliverables 3. Organizational process assets
7.1.2 Tools and Techniques for Close Project or Phase
1. Expert judgment
7.1.3 Outputs of Close Project or Phase
1. Final product, service, or result transition 2. Organizational process assets updates
7- Close Out Phase
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Exercise 7-1 - Develop Project Management Process
Exercise 7.1 – Develop Project Management Process Based on the PMI project management process group, suggest the project management methodology for your organization.
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7.2 Close Procurement
Figure 7-3- 6.5 Close Procurement Process
Source: PMBOK® Guide - Fourth Edition, page 342
1.Project
management
plan
2.Procurement
documentation
Inputs
1.Procurement
audits
2.Negotiated
settlements
3.Records
management
system
Tools &
Techniques
1.Closed
Procurements
2.Organizational
process assets
updates
Outputs
Definition Close Procurements is the process of completing each project procurement.
Source: PMBOK® Guide – Fourth Edition, page 342
7- Close Out Phase
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Process Interaction
Figure 7-4- Close Procurement Data Flow
7.2.1 Inputs to Close Procurement
1. Project management plan 2. Procurement documentation
7.2.2 Tools and Techniques for Close Procurement
1. Procurement audits 2. Negotiated settlements 3. Records management system
1. Procurement Audits A procurement audit is a structured review of the procurement process from the Plan Purchases and Acquisitions process through Contract Administration. 2. Negotiated Settlements
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Negotiate the final settlement of all outstanding issues. Whenever settlement by negotiations is not reached, other means (Alternative Dispute Resolutions ADR) may be chosen, like:
Mediation
Arbitration
7.2.3 Outputs of Close Procurement
1. Closed Procurements 2. Organizational process assets updates
Appendix 1 – Case Study
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8. Appendix-1 Case Study
Your organization is considering the installation of a new generation of General Packet Radio Services (GPRS) system as an upgrade to the existing services. This upgrade is meant to provide better and faster services that will highly position the company against the competition. The engineering department has submitted a project proposal that estimates the investment requirements as follows: an initial investment of $80,000 to be paid up-front, an additional investment of $30,000 to install servers and applications, and another $20,000 to integrate with the existing system. These payments will be for these three milestones over three years from the project start. Delivery and installation is estimated to take one year, and integrating the entire system should require an additional year. Thereafter, the engineers predict that scheduled equipment maintenance and licenses fees will require further expenditures of about $10,000 every second year, beginning in the fourth year. They will not, however, pay these fees in the last year of its life. The proposed schedule is to begin production in the third year and to up-to-speed by the end of that year. Projected revenue is estimated to be $50,000 in the first year of operation and are expected to peak at $120,000 in the second year of operation, and then to 115,000 – 105,000 – 97,000 – 90,000 – 82,000 – 65,000 in the following years. Equipment life is expected to be 10 years from project inception, at which time the proposed system will be obsolete and will have to be replaced. It is estimated that the machinery will have a salvage value of $35,000. Below are some factors that need to be considered:
1. This is a new technology to your organization 2. Extensive training is needed by both the technical team who will
install and support the system as well as the customer service team 3. It is not known if the existing billing system supports this new
upgrade or not. 4. The competition is about to start the same project soon
Appendix 2 – Exercise Forms
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9. Appendix-2 Exercise Forms
9.1 Project Charter
Customer
Project Name
Project Description
Project Manager:
Name and
Authority Level
Business Need
Issued By Manager
Appendix 2 – Exercise Forms
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9.2 Scope Statement
Customer
Project Name
Project Manager
Business Need
(project
justification)
Summary of
Product Description
Deliverables
(list of summary-
level sub products)
Project Risks
Objectives
(cost, schedule,
quality measures,
other)
Appendix 2 – Exercise Forms
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9.3 Assumption List
No. Area Assumption
Appendix 2 – Exercise Forms
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9.4 Work Breakdown Structure
No Outline No. WBS Item
Appendix 2 – Exercise Forms
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9.5 Activity List, Resource Assignment, Dependency & Time Estimate
No Outline No.
Activity Resources Dependency Duration
Appendix 2 – Exercise Forms
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9.6 Quality Management Plan
Quality Approach & Standards
Quality Assurance Process
Quality Control Process
Test & Acceptance Approach
Appendix 2 – Exercise Forms
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9.7 Risk Analysis
No Risk Probability Impact Overall Impact
1
2
3
4
5
6
7
8
9
10
Appendix 2 – Exercise Forms
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9.8 Risk Analysis
No Risk Prob. Impact Overall Impact
Strategy Mitigation Plans
Contingency Plans
1
2
3
4
5
Appendix 2 – Exercise Forms
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9.9 Change Control
Customer
Project Name
Project Manager
Change Request Date
WBS Task Number
Change Request ID
Priority (1-low to 5-high)
Requested by:
Identified by:
Assigned to:
Description
Impact of no change
Estimated impact on cost
Estimated impact on
Schedule
Estimated impact to
quality
Other impacts
Supporting documentation
Appendix 3 – List of Figures
PMP Exam Preparation Course Page 271
10. Appendix-3 List of Figures
Figure 2-1- Functional Origination .......................................................................... 15
Figure 2-2- Weak Matrix Origination ...................................................................... 16 Figure 2-3- Strong Matrix Origination ..................................................................... 17
Figure 2-4- Balanced Matrix Origination ................................................................ 17 Figure 2-5- Projectized Origination ......................................................................... 18
Figure 2-6- Project Life Cycle .................................................................................. 19
Figure 2-7- Management Project Life Cycle ......................................................... 19
Figure 2-8- Project Process Groups ....................................................................... 20 Figure 2-9- Project Process Groups Interaction ................................................... 21
Figure 2-10- Process Group Overlapping ............................................................. 21 Figure 2-11- Initiating Process Group .................................................................... 24 Figure 2-12- Planning Process Group ................................................................... 25
Figure 2-13- Executing Process Group ................................................................. 26 Figure 2-14- Monitor and Control Process Group ................................................ 27
Figure 2-15- Closing Process Group ..................................................................... 28
Figure 2-16- Project Management Process Interaction ...................................... 28
Figure 3-1- Develop Project Charter Process ....................................................... 30
Figure 3-2 - Develop Project Charter – Process Interaction .............................. 31
Figure 3-3- Identify Stakeholders Process ............................................................ 35
Figure 3-4 Identify Stakeholders – Process Interaction ...................................... 36
Figure 3-5 Power / Interest Grid.............................................................................. 37
Figure 4-1 - Develop Project Management plan Process ................................... 41
Figure 4-2 Develop Project Management plan – Process Interaction .............. 42
Figure 4-3- Collect Requirements Process ........................................................... 45 Figure 4-4- Define Scope Process ......................................................................... 51 Figure 4-5- Create WBS Process ........................................................................... 58
Figure 4-6- Example of WBS ................................................................................... 59 Figure 4-7- Define Activities Process ..................................................................... 63
Figure 4-8- Define Activities – Process Interaction .............................................. 64
Figure 4-9 - Sequence Activities Process ............................................................. 69
Figure 4-10- Sequence Activities – Process Interaction ..................................... 70
Figure 4-11- Precedence Diagram (Activity on the node) .................................. 71 Figure 4-12- Activity on the arrow ........................................................................... 71
Figure 4-13- Task Dependencies ........................................................................... 72 Figure 4-14- Lag Time .............................................................................................. 74
Figure 4-15- Lead Time ............................................................................................ 74
Figure 4-16- Estimate Activity Resources Process ............................................. 75
Figure 4-17- Estimate Activity Resources – Process Interaction ...................... 76 Figure 4-18- Estimate Activity Durations Process ............................................... 80 Figure 4-19- Estimate Activity Duration – Process Interaction .......................... 81
Figure 4-20- 6.5 Develop Schedule Process ..................................................... 85 Figure 4-21- Develop Schedule – Process Interaction ....................................... 86
Figure 4-22- Resource Leveling ............................................................................. 91
Appendix 3 – List of Figures
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Figure 4-23- Estimate Costs Process .................................................................... 94
Figure 4-24- Estimate Costs – Process Interaction ............................................. 95 Figure 4-25 - Determine Budget Process ............................................................ 100
Figure 4-26- Determine Budget – Process Interaction ...................................... 101 Figure 4-27- Project Funding Requirements ....................................................... 103 Figure 4-28- Plan Quality Process ....................................................................... 104
Figure 4-29- Plan Quality – Process Interaction ................................................ 105
Figure 4-30- Control Chart ..................................................................................... 112
Figure 4-31- Flow Chart ......................................................................................... 113 Figure 4-32- Develop Human Resource Plan Process ..................................... 117
Figure 4-33- Develop Human Resource Plan – Process Interaction ............. 118 Figure 4-34 - Develop Human Resource Plan Process .................................... 119 Figure 4-35- Organization Charts and Position Descriptions ........................... 120
Figure 4-36- Develop Human Resource Plan – Process Interaction ............. 121 Figure 4-37 - Plan Communications Process ..................................................... 123
Figure 4-38 Plan Communications – Process Interaction ................................ 124 Figure 4-39- Sender / Receiver Model ................................................................. 126
Figure 4-40- Plan Risk Management Process .................................................... 129 Figure 4-41 - Plan Risk Management – Process Interaction ........................... 130
Figure 4-42 - Identify Risks Process .................................................................... 134
Figure 4-43 Identify Risks – Process Interaction ............................................... 134
Figure 4-44- Perform Qualitative Risk Analysis Process .................................. 139
Figure 4-45- Perform Qualitative Risk Analysis – Process Interaction ........... 140 Figure 4-46- Probability and Impact Matrix ......................................................... 141
Figure 4-47- Qualitatively Sorted Risks ............................................................... 142 Figure 4-48- Perform Quantitative Risk Analysis Process ............................... 144 Figure 4-49- Perform Quantitative Risk Analysis – Process Interaction ........ 145
Figure 4-50- Probability distributions.................................................................... 146 Figure 4-51- Quantitatively Sorted Risks ............................................................. 147
Figure 4-52- Plan Risk Responses Process ....................................................... 149 Figure 4-53- Plan Risk Responses – Process Interaction ................................ 150
Figure 4-54- Plan Procurements Process ........................................................... 155
Figure 4-55- Plan Procurements Data Flow ....................................................... 156
Figure 5-1- Direct and Manage Project Execution Process ............................. 168
Figure 5-2- Direct and Manage Project Execution – Process Interaction ...... 169 Figure 5-3 - Perform Quality Assurance Process .............................................. 172
Figure 5-4- Perform Quality Assurance– Process Interaction ......................... 173 Figure 5-5 - Sequence Activities Process ........................................................... 176
Figure 5-6- Acquire Project Team – Process Interaction ................................. 177
Figure 5-7- Develop Project Team Process ........................................................ 180
Figure 5-8- Develop Project Team – Process Interaction ................................. 181 Figure 5-9- Maslow’s Hierarchy of Needs ........................................................... 185
Figure 5-10- Manage Project Team Process ...................................................... 187
Figure 5-11- Manage Project Team – Process Interaction ............................... 188 Figure 5-12- Distribute Information Process ....................................................... 191
Figure 5-13- Distribute Information – Process Interaction ................................ 192 Figure 5-14- Manage Stakeholder Expectations Process ................................ 194
Figure 5-15- Manage Stakeholder Expectations – Process Interaction ......... 195
Appendix 3 – List of Figures
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Figure 5-16 - Conduct Procurement Process ..................................................... 197
Figure 5-17- Conduct Procurement Data Flow ................................................... 198 Figure 6-1- Monitor and Control Project Work Process .................................... 205
Figure 6-2- Monitor and Control Project Work – Process Interaction ............. 205 Figure 6-3- Perform Integrated Change Control Process ................................. 208 Figure 6-4- Perform Integrated Change Control – Process Interaction .......... 208
Figure 6-5- Verify Scope Process ......................................................................... 210
Figure 6-6- Control Scope Process ...................................................................... 212
Figure 6-7- A Typical Change Management Process ....................................... 214 Figure 6-8- Control Schedule Process ................................................................. 216
Figure 6-9- Control Schedule– Process Interaction ........................................... 217 Figure 6-10- Schedule Valiance on Microsoft Project ....................................... 218 Figure 6-11- Control Costs Process ..................................................................... 219
Figure 6-12- Estimate Activity Resources – Process Interaction .................... 220 Figure 6-13 - S Curve ............................................................................................. 222
Figure 6-14 - Earned Value Diagram ................................................................... 222 Figure 6-15 - Schedule Variance .......................................................................... 223
Figure 6-16 - Cost Variance .................................................................................. 223 Figure 6-17 - Schedule Variance, Incomplete Tasks ........................................ 224
Figure 6-18 - Cost Variance, Incomplete Tasks ................................................. 225
Figure 6-19 - Schedule Variance, Multiple Tasks .............................................. 226
Figure 6-20 - Cost Variance, Multiple Tasks ....................................................... 226
Figure 6-21 - The Four Quadrants ....................................................................... 227 Figure 6-22 - MS Project Showing Earned Value .............................................. 230
Figure 6-23- Estimate Activity Resources Process ........................................... 231 Figure 6-24- Perform Quality Control – Process Interaction ............................ 232 Figure 6-25- Cause and Effect Diagram .............................................................. 233
Figure 6-26- Control Chart - Stable Process ...................................................... 235 Figure 6-27- Control Chart - Unstable Process .................................................. 236
Figure 6-28Flow Chart ............................................................................................ 236 Figure 6-29- Histogram .......................................................................................... 237
Figure 6-30- Pareto Diagram ................................................................................. 238
Figure 6-31- Scattered Diagram ........................................................................... 239
Figure 6-32- Report Performance Process ......................................................... 241
Figure 6-33- Report Performance – Process Interaction .................................. 242 Figure 6-34- Monitor and Control Risks Process ............................................... 246
Figure 6-35- Monitor and Control Risks – Process Interaction ........................ 247 Figure 6-36 -Procurements Process .................................................................... 250
Figure 6-37- Administer Procurements – Process Interaction ......................... 251
Figure 7-1- Close Project or Phase Process ...................................................... 255
Figure 7-2- Close Project or Phase – Process Interaction ............................... 256 Figure 7-3- 6.5 Close Procurement Process ...................................................... 258
Figure 7-4- Close Procurement Data Flow ......................................................... 259
Appendix 4 – List of Tables
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11. Appendix-4 List of Tables
Table 2-1- Comparative Overview ............................................................................ 9 Table 2-2- Organizational Influence on Projects .................................................. 18
Table 2-3- Project Management Process Groups and Knowledge Area Mapping ...................................................................................................................... 23
Table 4-1 - Estimate Accuracy ................................................................................ 96
Table 4-2- Statistical Quality Control Terms ....................................................... 108
Table 4-3- Cost Conformance ............................................................................... 110 Table 4-4- Human Resource Management Process Mapping ......................... 120
Table 4-5 - Reasons to Make over Buy ............................................................... 157 Table 4-6 - Fixed Price Contract ........................................................................... 160 Table 4-7 - Cost Reimbursable Contract ............................................................. 161
Table 4-8 - Time and Material Contract ............................................................... 162
Table 4-9 - Comparison of Procurement Documents Types ............................ 164
Table 5-1 - Weighting System ............................................................................... 200
Table 6-1 - Earned Value Parameters ................................................................. 227
Appendix 5 – List of Exercises
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12. Appendix-5 List of Exercises
Exercise 3-1 - Develop Project Charter ................................................................. 34
Exercise 3-2 - Stakeholder Analysis ...................................................................... 39 Exercise 4-1 - Change Management Process ...................................................... 44
Exercise 4-2-Create Project Charter ...................................................................... 50 Exercise 4-3-Create Scope Statement .................................................................. 56
Exercise 4-4-Create Project Assumptions ............................................................ 57
Exercise 4-5- Create WBS ....................................................................................... 62
Exercise 4-6-Create Activity List ............................................................................. 68 Exercise 4-7-Resource Assignment ....................................................................... 79
Exercise 4-8-Task Duration Estimate .................................................................... 84 Exercise 4-9- Develop Schedule ............................................................................ 93 Exercise 4-10 - Cost of Quality ............................................................................. 111
Exercise 4-11 - Create Quality Management Plan ............................................ 116 Exercise 4-12 - Number of Communication Channels ...................................... 128
Exercise 4-13 - Risk List ........................................................................................ 138
Exercise 4-14 - Qualitative Risk Prioritization ..................................................... 143
Exercise 4-15 - Expected Monetary Value .......................................................... 148
Exercise 4-16 - Risk Response ............................................................................. 154
Exercise 4-17 - Make or Buy Decision ................................................................. 158
Exercise 4-18-Contract Types ............................................................................... 166
Exercise 5-1 - Quality Assurance Activities ........................................................ 175
Exercise 5-2 - Evaluation Criteria ......................................................................... 202
Exercise 6-1-Simulate Requirement Change ..................................................... 215
Exercise 6-2-Schedule & Cost Variance ............................................................. 228 Exercise 6-3 - Fishbone Diagram ......................................................................... 234 Exercise 6-4 - Quality Control Activities ......................................................... 240
Exercise 7-1 - Develop Project Management Process ..................................... 257
Appendix 6 – List of Group Discussions
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13. Appendix-6 List of Group Discussions
Group Discussion 1-1-Student’s Expectations ....................................................... 6 Group Discussion 2-1- Which one is not a project ............................................... 10
Group Discussion 2-2-Project Constraints ............................................................ 13 Group Discussion 4-1-Requirements Gathering Challenges ............................. 49 Group Discussion 4-2- Scope Creep Indicators ................................................... 52
Group Discussion 4-3-Creating Activities .............................................................. 67
Group Discussion 4-4-Creating Activities .............................................................. 73
Group Discussion 4-5-Quality vs. Grade ............................................................. 106
Group Discussion 6-1 - Paper Tower ................................................................... 244
Group Discussion 6-2 - Telephone Casse .......................................................... 245