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Proj_]t M[n[g_m_nt Tr[ining


ForPMPandCAPMCertification Training

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Cours_ Outlin_

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ExaminingProjectManagementFramework InitiatingaProject PlanningProjectWork


Part1:Baselines Part2:ManagementPlans

ExecutingProjectWork MonitoringandControllingProjectWork ClosingtheProject


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1 PMP, CAPM, PMI, PMBOK are registered trademarks of Project Management Institute Inc.

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M__t th_ Instru]tor

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InstructorName Credentials Achievements

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M__t th_ Instru]tor


AdityaChinni,

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MCA,PMP,SCPM,SCM,Prince2CertifiedPM,Sigma

CEO,CertSchool,iTroopConsulting 18+YearsITProgram/ProjectManagement 5YearsCSC,8yearsforSunMicroSystems 5YearsatHCLIndia


Engineer,Architect,Developer TeamManager,MaintenanceManager Sr.Manager

Applications:
SunDownloadCenter SunStoreECommerce UtilitiesERPImplementation UtilitiesLargeRedistrictingProject(Construction,Telecom,&IT)

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T_[m Intro^u]tion

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Name,Education,#Yearsofexperience Whatisyourrole HowPMPcanhelpyou?

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@\out C_rtS]hool

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CertSchoolisaccreditedbyPMIasaGlobalRegisteredEducation Provider AsapartofRegisteredEducationProvidersqualificationprocess CertSchoolpassedarigorousreviewofcontent,material,design anddeliveryofeducationproductsbyPMI CertSchoolwasfoundedin2003totrainprojectmanagersto effectivelymanageprojects CertSchoolswiderangeoftrainersincludeprojectmanagers, functionalmanagerandgeneralmanagersandindustryexperts fromfortune10companies.

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@\out th_ _x[m: PMP Eligi\ility

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Meet 3requirementstoappearfortheexam Education PMExperience


7500HoursofProject ManagementPractice

PMEducation

HighSchool

Minimum5Yearsof totalexperience 4500HoursofProject ManagementPractice

35Hours

Degree

Minimum3Yearsof totalexperience

35Hours

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@\out th_ _x[m: C@PM Eligi\ility

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Education & HighSchool

Anyoneofthefollowing2requirements PMExperience
1500HoursofProject ManagementPractice

PMEducation OR

23Hours

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PMP @ppli][tion Cost

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Yes

PMI Member? Fee: $129

No

MEMBER Exam Fee: $405 ReExam Fee: $275

NON MEMBER Exam Fee: $555 ReExam Fee: $375

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C@PM @ppli][tion Cost

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Yes

PMI Member? Fee: $129

No

MEMBER Exam Fee: $225 ReExam Fee: $150

NON MEMBER Exam Fee: $300 ReExam Fee: $200

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PMP Ex[m Form[t

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200Questions(FourOption,MultipleChoice),includes25pretest questions
Thatmeans175Questionsformarking

61%(106/175)MinimumtoPass 70%123/175isRiskFreescore 4HoursMaximumTimeAllowed 1m12Sec.perQ


Domain
Initiation Planning Execution Monitoringandcontrol Closing

%ofQuestions
13% 24% 30% 25% 8%

#ofQuestions
23 42 52 44 14

61%
14 26 32 27 9

70%
16 29 36 31 10

Total

100%

175

106

123

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C@PM Ex[m Form[t

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150Questions(FourOption,MultipleChoice) includes15pretestquestions 65%(88/135)MinimumtoPass 3HoursMaximumTimeAllowed Pass/Failavailablewhencomplete

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C@PM Ex[m qu_stions ^istri\ution

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KnowledgeArea 1 2 3 4 5 6 7 8 9 10 11 12 Introduction ProjectLifecycle PMIProcesses IntegrationManagement ScopeManagement TimeManagement CostManagement QualityManagement HRManagement CommunicationsManagement Risk Procurement

% of Questions 4% 4% 11% 11% 11% 11% 9% 7% 7% 7% 11% 7%

# ofquestions 6 6 15 15 15 15 12 9 9 9 15 9

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PMP Stu^y Pl[n

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C@PM Stu^y Pl[n

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3 Roun^s of Ex[m

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Round1 (EasyQuestions) 110 1120 2130

Round2
(KnowtheseQuestions)

Round3 (HardestQuestions)

191200
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Qu_stion Ch[r[]t_risti]s

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Thefollowingarethedifferentcharacteristicsandcomponentsyoumust recognizewheninterpretingquestions,especiallythesituationalones.
Noise Weusethiswordtoreferenceinformationthathasnovalueor bearinginaquestion.Wecallit"noise"becauseitiscontentthathas beeninsertedtodistractyouintheexamenvironment.Wealsocall suchcontent"disinformation." TheexamtypicallyusesPMIterminology.Aquestioncouldhaveone possibleanswercommonlyconnectedwiththequestionbutnotPMI terminology.AnotherpossibleanswerusesthePMIterminologyfor thecommondescription(e.g.,budgetatcompletionvs.budget).In thisexample,ifyouansweredbudget"becauseyouweren'tfamiliar withthetruedefinitionofbudgetatcompletion,"youaretechnically wrongbecausebudgetatcompletion"isthebetteranswer.

Common Terminology

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Qu_stion Ch[r[]t_risti]s [n^ Compon_nts (]ont.)

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TooMuch Information (TMI)

Theexamcouldpresentquestionsthatcontainagreatdealofinformation. Forexample,youmightencounterasituationalquestioninwhichanumberof variablesarethrownatyou,suchastime,cost,scope,andquality.Lookat eachvariableandseehowitrelatestowhatthequestionisasking.For example,ifyouaregivenvariablesassociatedwithtime,quality,andscope, andtheyareallgood,ornotenoughinformation,andthecostvariablelisted showsthatyouareoverbudget,thenthatvariableislikelytheoneyouare concernedabout. Theexamcouldpresentquestionsthathaveanansweroranswersthatare fromawrongKnowledgeAreaorfromthecorrectKnowledgeAreabutthe answeristooearlyorlateintheprocesstobeacceptable.Questionscould havereferencesto"whatwouldyoudo(first,last,before,after)this."Inthis case,morethanoneanswerisinthegeneralrange,butonlyoneiscorrect.

WrongArea,or WrongPointin Time

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Qu_stion Form[ts

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Theexamusesanumberofquestionformats.Someofthequestionsusemultiple formats.Understandingoftheformatshelpsyoudissectthequestionandthe availableanswers.Herearesomeformats: Select questions Chicken or the egg (sequence) Select NOT/EXCEPT questions All (or a combination of) the answers None of the answers
QuestionFormat Select Description Thisislikelythemoststraightforwardquestionformatonthe exam.Itsimplyasksyoutoselectthebestanswer.Beaware, however,becauseitcanalsoincludeotherquestionformats, includingtheChickenortheEggformatquestions. Example Amilestonehaswhatduration? A.1day B.0(noduration)(Correct) C.1hour D.8hours

Situational Calculation

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Qu_stion Form[ts (]ont.)

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QuestionFormat SelectNOT/EXCEPT

Description Forthisthetypeofquestion,youmustselectthe answerthatdoesnotapply.Generally,thisquestion typeisnotabigdealunlessyouhavealreadyhit"the wall"thatwediscussedintheexamenvironmentpart ofthisbook.Thekeytohandlingthistypeofquestion istodeterminewhichthreeanswerselectionshave somethingincommon.Thefourthanswerselectionis theexceptionandtheanswertochoose.

Example Allthefollowingareareasof communicationmanagement except A.ManageStakeholders Expectations B.ReportPerformance C.QuantitativeAnalysis(Correct) D.DistributeInformation

All(oraCombination Withthisquestionformat,all oracombination of theanswersareacceptable.Themainthingtoconsider oftheAnswers) isthatthereisn'tabadchoice.Theoddsarethatiftwo oftheanswers(otherthanAlltheanswers")look good,sowillthethird.

Whichofthefollowingareareasof riskmanagement? A.IdentifyRisk B.PerformQuantitativeRiskAnalysis C.PlanRiskResponses D.Alltheanswers(Correct)

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Qu_stion Form[ts (]ont.)

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QuestionFormat NoneoftheAnswers

Description Withthisformat,everyavailableanswer(otherthan "noneoftheabove")failstoapplytothequestion.You mustevaluateeachanswertodetermineitsrelevant KnowledgeArea.IftherelevantKnowledgeAreafor eachanswerliesoutsidethescopeofthequestion, thennoneoftheanswersapplies.

Example WhatKnowledgeAreaispartofthe tripleconstraint? A.Communications B.Procurement C.ProfessionalandSocial Responsibility D.Noneoftheanswers(Correct)

ChickenortheEgg

Withthisformat,morethanoneanswerisacceptable. Thekeyistounderstandtheirorder whatcomesfirst (last,before,oraftersomethingdependingonwhatthe questionisasking).Inthiscase,lookatwhatthe questionisaskinganddeterminethebestanswer basedonthetimelineoftheanswers.

WhatcomesbeforeEstimateActivity Durations? A.SequenceActivities B.EstimateActivityCosts C.DefineActivities(Correct) D.ProjectPlanDevelopment

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Qu_stion Form[ts (]ont.)

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QuestionFormat Situational

Description Thisquestionformatisprobablythemostchallenging, andtheexamwillincludeatleast75questionsusing thisformat,someincombinationwithotherformats. ThisquestionformatexpectsyoutoleverageyourPM experienceandunderstandingofthePMBOKGuide andthePMIwayofthinking.

Example

You'vetakenoveranexistingproject anddiscoverthatithassuffered majorscopecreepbecausethe formerProjectManagercouldn'tsay notothesponsor,anditlacked enoughsupportingdocumentation. Typically,youwillseeaChickenortheEgg(whatcomes Whatdocumentdoyoufirstwantto see(orcreateifitdoesn'texist) first) withwhomdoyoucommunicateregardinga project,orwhatisyournextactionontheproject.Keys abouttheprojectfoundation? A.RiskList tosuccessinthisareaaretounderstandthechartin B.ProjectCharter(Correct) theFrameworkareaofthisbook,plusthekeyrole C.CommunicationsPlan playersinthemethodology. D.Budget

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Qu_stion Form[ts (]ont.)

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QuestionFormat Calculation

Description ThisquestionformattypicallyfallsundertheSelector theNoneoftheAbove(sometimes"notenough information")formats.Ifyouknowtheformulasforthe exam,youshouldn'thaveaproblemwithcalculation questions.Insome,youcouldencounterpossible answersthat"addup"correctlyifyoudon'tknowthe formula,butattempttoreverseengineerthequestion. Anexample:youaretocalculateCPI(divideEVbyAC). Youhaveincorrectanswersthattotalothercalculations aswell(SV,SPI,CV,orothers).Itisnotuncommonfor theexamtohavequestionsthatdonotgiveyou enoughdata,suchasfuturevalueorpresentvalue. Therefore,itisimportantthatyouknowallthe componentsofaformula.

Example WhatistheCPIforthefollowing data?AC=$200,PV=$400,EV=$200, BAC=$1,000 A.$200 B.$200 C.1.0(Correct) D.0.5

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Proj_]t M[n[g_m_nt Bo^y of Knowl_^g_, (PMBOK Gui^_) Fourth E^ition

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3parts
Part1:IntroductionFramework(2Chapters) Part2:ProcessGroups(1Chapter) Part3:KnowledgeAreas(9chaptersstartingfrom4)

Processes 42
Initiation 2 Planning 20 Execution 8 MonitoringandControl 10 Closing 2

PMBOK GuidewasadoptedbyANSI(1999)asanAmericanStandardforProjectManagement.TheFourth Editionwasissuedin2008.

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Pro]_ss

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(Inputs, Tools [n^ T_]hniqu_s, [n^ Outputs)

Aprocessisasetofinterrelatedactionsandactivities performedtoachieveaprespecifiedproduct,result,or service. Eachprocessischaracterizedbyitsinputs,thetoolsand techniquesthatcanbeapplied,andtheresultingoutputs


DefinitionsfromProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage37

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How to m[n[g_ Proj_]t & Ph[s_s

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ProjectLifecycle

PMI ProcessGroups ForProject Management

ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage6

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4 Lif_ Cy]l_s
Corporate or Business Life Cycle
Policy Identify Planning Needs Project Realization Conception Product In Service

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Dispose

Product Life Cycle


Feasibility Acquisition Operations Dispose

Concept

Develop

Implement

Closeout

Project Life Cycle

PMI Process groups Used to manage each phase


PMIsdefinitionoftheprojectmanagement isbased42processesgroupedinto5 ProcessGroupsand9knowledgeareas
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Ph[s_-to-Ph[s_ R_l[tionships in [ Proj_]t

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Projectsthataremultiphasedfollowsequential process. Phasetophaserelationshiptypes:


Sequential Overlapping Iterative

Factorsthatdecidethetypesofrelationshipsin betweenphases:
Levelofcontrol Effectiveness Degreeofuncertainty
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Proj_]t M[n[g_m_nt Pro]_ss Groups

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ProcessGroup

Description Thoseprocessesperformedtodefineanewprojectoranewphaseof anexistingprojectbyobtainingauthorizationtostarttheprojectorphase. Thoseprocessesperformedtoestablishthetotalscopeoftheeffort, defineandrefinetheobjectives,anddevelopthecourseofactionrequiredtoattain thoseobjectives Thoseprocessesperformedtocompletetheworkdefinedintheproject managementplantosatisfytheprojectobjectives. Thoseprocessesrequiredtotrack,review,andregulatetheprogressand performanceoftheproject,identifyanyareasinwhichchangestotheplanare required,andinitiatethecorrespondingchanges ThoseprocessesperformedtofinalizeallactivitiesacrossallProject ManagementProcessGroupstoformallyclosetheprojectorphase.

Initiating

Planning

Executing Monitoringand controlling Closing

GlossarydefinitionsfromProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage39

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Knowl_^g_ @r_[s

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Overviewofprojectmanagement knowledgeareasandprojectmanagement processesbasedonProjectManagement BodyofKnowledge(PMBOK)Guide FourthEditionPage43

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Pro]_ss Ch[rt

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5ProcessGroups
Initiation Planning Execution Monitoring &Control Closing

Integration Scope

9KnowledgeAreas

Time Cost Quality HR Communication Risk Procurement


Overviewofprojectmanagementknowledgeareasandprojectmanagementprocessesbasedon ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage43

42Process Refer:PMBOKGuidePage43

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Proj_]t M[n[g_m_nt Pro]_ss Ch[rt


ProjectManagementProcessGroups KnowledgeAreas InitiatingProcessGroup ProjectIntegration Management ProjectScope Management DevelopProjectCharter Planning ProcessGroup DevelopProjectManagementPlan CollectRequirements DefineScope CreateWBS DefineActivities SequenceActivities EstimateActivityResources EstimateActivityDurations DevelopSchedule EstimateCosts DetermineBudget PlanQuality PerformQualityAssurance AcquireProjectTeam DevelopProjectTeam ManageProjectTeam DistributeInformation ManageStakeholderExpectations ReportPerformance Executing ProcessGroup DirectandManageProjectExecution

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Monitoring&ControllingProcessGroup MonitorandControlProjectWork PerformIntegratedChangeControl VerifyScope ControlScope

ClosingProcess Group CloseProjector Phase

ProjectTime Management

ControlSchedule

ProjectCost Management ProjectQuality Management ProjectHuman Resource Management Project Communications Management

ControlCosts PerformQualityControl

DevelopHumanResourcePlan

IdentifyStakeholders

PlanCommunications PlanRiskManagement IdentifyRisks PerformQualitativeRiskAnalysis PerformQuantitativeRiskAnalysis PlanRiskResponses PlanProcurements

ProjectRisk Management

MonitorandControlRisks

Project Procurement Management

ConductProcurements

AdministerProcurements

CloseProcurements

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BasedondatafromProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage43

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Project Framework

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Proj_]t Fr[m_work
UnderstandProject,Programs,Portfolios, PMOs,andOrganizationalStructures

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Proj_]t D_finition

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(Comp[r_ Op_r[tions)

Projectis:
Aworkundertakentoproduceuniqueproduct,serviceoraresult Temporaryinduration,meansclearlydefinedbeginningandfinishdates.ProjectshouldEND whenProjectobjectives aremetorcantbemetoreventhoserequirementsarenolongerrequired. Temporarydoesntmeanshortinduration

Projectscanalsohavesocial,economic,andenvironmentalimpactsthatfaroutlasttheprojects themselves ProjectExamples:


SettingupnewbusinessOrConstructingBuildings,Roads,monumentssoon..OrSettingupITnetworks,Computer systems,websitessoon..OrMarketingcampaignsOrRuralEducationalProgram Everyprojectcreatesauniqueproduct,service,orresult

Anongoingworkeffortisgenerallyarepetitive processbecauseitfollowsanorganizationsexisting procedures Anindependentlymanageablecomponentofan existingprojectiscalledSubProject

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 5

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Project Framework

Proj_]t M[n[g_m_nt

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Projectmanagementistheapplicationofknowledge,skills,tools, andtechniquestoprojectactivitiestomeettheproject requirements. Projectmanagementisaccomplishedthroughtheappropriate applicationandintegrationofthe42logicallygroupedproject managementprocessescomprisingthe5ProcessGroups Managingprojectstypicallyinvolves: Scheduling.


Identifyingrequirements. Establishingobjectives. BalancingProjectconstraintsincludingScope,Schedule,Budget, Quality,RisksandResources Addressingtheconcernsandexpectationsofthestakeholders.

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 6

D_liv_ry [lign_^ to Org[niz[tion

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Mission

Portfolio

Strategy

Program

Projects

Project

Organizationsarebuildwithamission.Theydevelopseveralstrategiestoachieve thosemission.SeveralProjectsareinitiatedtoachieveeachstrategy Todeliverthoseprojectsaprojectmanagementorganizationshouldbedeveloped. ThedeliveryorganizationsshouldbegovernedbyPortfolioandProgram ManagementPrinciples.


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Project Framework

R_l[tions

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 8

Portfolio

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Aportfolioreferstoacollectionofprojectsorprogramsandother workthataregroupedtogethertofacilitateeffectivemanagement ofthatworktomeetstrategicbusinessobjectives Portfoliomanagementreferstothecentralizedmanagementofone ormoreportfolios,whichincludesidentifying,prioritizing, authorizing,managing,andcontrollingprojects,programs,and otherrelatedwork,toachievespecificstrategicbusinessobjectives Successismeasuredintermsofaggregateperformanceofportfolio components.Portfoliomanagersmonitoraggregateperformance andvalueindicators
Portfolio Sub Portfolios
Highlevel Programs

Programs

Projects

Other Work

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Project Framework

Progr[ms

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Aprogramisdefinedasagroupofrelatedprojectsmanagedina coordinatedwaytoobtainbenefitsandcontrolnotavailablefrom managingthemindividually. Programsmayincludeelementsofrelatedworkoutsidethescope ofthediscreteprojectsintheprogram.Aprojectmayormaynot bepartofaprogrambutaprogramwillalwayshaveprojects Programmanagementisdefinedasthecentralizedcoordinated managementofaprogramtoachievetheprogramsstrategic objectivesandbenefits.Projectswithinaprogramarerelated throughthecommonoutcomeorcollectivecapability. Iftherelationshipbetweenprojectsisonlythatofasharedclient, seller,technology,orresource,theeffortshouldbemanagedasa portfolioofprojectsratherthanasaprogram. Programmanagementfocusesontheprojectinterdependencies andhelpstodeterminetheoptimalapproachformanagingthem.
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Proj_]t M[n[g_m_nt Offi]_ (PMO)

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Aprojectmanagementoffice(PMO)isanorganizationalbodyassignedtothecentralizedand coordinatedmanagementofthoseprojectsunderitsdomain.TheresponsibilitiesofaPMOcan rangefromprovidingprojectmanagementsupportfunctionstoactuallybeingresponsibleforthe directmanagementofaproject. APMOmaybedelegatedtheauthoritytoactasanintegralstakeholderandakeydecisionmaker duringthebeginningofeachproject,tomakerecommendations,ortoterminateprojectsortake otheractionsasrequiredtokeepbusinessobjectivesconsistent. ThePMOmaybeinvolvedintheselection,management,anddeploymentofsharedordedicated projectresources. AprimaryfunctionofaPMOistosupportprojectmanagersinavarietyofwayswhichmayinclude:
ManagingsharedresourcesacrossallprojectsadministeredbythePMO; Identifyinganddevelopingprojectmanagementmethodology,bestpractices,andstandards; Coaching,mentoring,training,andoversight; Monitoringcompliancewithprojectmanagementstandards,policies,procedures,andtemplatesviaproject audits; Developingandmanagingprojectpolicies,procedures,templates,andothershareddocumentation (organizationalprocessassets);and Coordinatingcommunicationacrossprojects.

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Project Framework

Proj_]t St[k_hol^_rs

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Personororganizationwhohasabusinessinterestintheoutcomeofa projectorwhoisactivelyinvolvedinitswork. Stakeholdersare2categories,PositivestakeholdersandNegative stakeholders


Stakeholderswhoseinterestsarepositivelyimpactedbytheprojectandthose whoinfluenceprojectspositivelyarepositivestakeholders Stakeholderswhoseinterestsarenegativeimpactedbytheprojectandthose whoinfluenceprojectsnegativelyarenegativestakeholders

Example:TheNewYorkYankeesproposed$800millionBronx stadium, 2006.Stakeholdersinclude:


Staff,management,andownersofthe NewYorkYankees MajorLeagueBaseball Chambersofcommerce, Localandstatewideelectedofficials Engineers,architects,andconstructionworkers Fans,Localresidents

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G_n_r[l Ch[r[]t_risti]s of [ Proj_]t Lif_ Cy]l_


Projectsdifferanddisplaycertaincommoncharacteristics. Atthebeginning,costandstaffinglevelsarelow. Reachesthepeakonceworkiscarriedout. Dropsrapidlyuponprojectcompletion.

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Stakeholderinfluences,uncertainties,andrisksare:
Highatprojectstart. Lowatprojectend.

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Project Framework

Progr_ssiv_ El[\or[tion

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Successivelayersofdetailareaddedtotheplans. Deliverablesfromonephaseareapprovedbefore workbeginsonthenextphase. Aphasemaybeginbeforeapprovingthe deliverablesofapreviousphaseifrisksare acceptable. Providesgreaterlevelofdetailastheproject progresses.

Detailisaddedtoplansinprogressiveelaboration
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Ent_rpris_ Environm_nt[l F[]tors

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Enterpriseenvironmentalfactorsrefertobothinternalandexternalenvironmental factorsthatsurroundorinfluenceaprojectssuccess. Enterpriseenvironmentalfactorsmayenhanceorconstrainprojectmanagement optionsandmayhaveapositiveornegativeinfluenceontheoutcome. Theyareconsideredasinputstomostplanningprocesses. Examplesinclude:


Organizationalculture. Governmentorindustrystandards(e.g.,productstandards,qualitystandards) Infrastructure(e.g.,existingfacilitiesandcapitalequipment) Existinghumanresources Marketplaceconditions. Stakeholderrisktolerances. Politicalsituations. Companyworkauthorizationsystems Projectmanagementinformationsystems(PMIS)

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Project Framework

Org[niz[tion[l Pro]_ss @ss_ts

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Organizationalprocessassetsincludeanyorallprocessrelatedassets,fromanyorallofthe organizationsinvolvedintheprojectthatcanbeusedtoinfluencetheprojectssuccess. Theseprocessassetsincludeformalandinformalplans,policies,procedures,andguidelines. Organizationalprocessassetsmaybegroupedintotwocategories


1. ProcessesandProcedures
Organizationalstandardprocessessuchasstandards,policies,standardproductandprojectlifecycles,andquality policiesandprocedures Templates,GuidelinesandFinancialcontrolsprocedures Organizationcommunicationrequirements Issue,defectmanagementproceduresandChangecontrolprocedures Riskcontrolprocedures,includingriskcategories,probabilitydefinitionandimpact Proceduresforprioritizing,approving,andissuingworkauthorizations. Processmeasurementdatabases Projectfiles(e.g.,scope,cost,schedule,andperformancemeasurementbaselines,riskregisters,plannedresponse actions,anddefinedriskimpact), Historicalinformationandlessonslearnedknowledgebases(e.g.,allprojectclosureinformation) Issueanddefectmanagementdatabasescontainingissueanddefectstatus,controlinformation,issueanddefect resolution,andactionitemresults, Configurationmanagementknowledgebasescontainingtheversionsandbaselines Financialdatabasescontaininginformationsuchaslaborhours,incurredcosts,budgetsandanyprojectcostoverruns.

2.

CorporateKnowledgeBase

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Th_ PMI Co^_ of Ethi]s [n^ Prof_ssion[l Con^u]t

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PMIexpectsallProjectManagementPractitionerstoadhereto4 valuesanddoonlyRIGHTandHONARABLEthings PMIexpectsallProjectManagementPractitioners tosethigh standardsinallaspectsoftheirlivesatwork,athome,andin servicetotheprofession PMIbelievesthatPractitionersadheringtoconductbecome betterProjectManagementprofessionals PMIs4coreValuestobeconsideredare:


Responsibility Respect Fairness Honesty

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BasedonPMICodeofEthicsandProfessionalConduct At:http://www.pmi.org/en/AboutUs/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx

23 PMP, CAPM, PMI, PMBOK are registered trademarks of Project Management Institute Inc.

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Project Framework

1. R_sponsi\ility

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ResponsibilityisPractitioners dutytotakeownershipforthedecisionstheymakeorfailtomake,the actionstheytakeorfailtotake,andtheconsequencesthatresult Standardsconsideredare:


Practitionersshouldmakedecisionsinthebestinterestsofsociety,publicsafety,andtheenvironment Practitionersacceptsonlythoseassignmentsthatareconsistentwiththeirbackground,experience,skills,and qualifications
Practitionersneedtoprovidegapsistheirqualificationstostakeholderssothatstakeholderscanmakeinformeddecisions Practitionersbidonlywhentheircompaniesarefullyqualifiedtothework

Practitioners fulfillthecommitmentsthattheyundertake Practitionerswilldoexactlyaswhattheysaythattheywilldo Whenerrorsoromissionsaremade,Practitionerswilltakeownershipandmakecorrectionspromptly Practitionersprotectproprietaryorconfidentialinformation Practitionersreportunethicalorillegalconducttoappropriatemanagement


Examplesofillegalbehavior:theft,fraud,corruption,embezzlement,orbribery.Abusingphysicalorintellectualproperty ofothersisillegalbehavior.Assistingillegalactivitiesofothersisalsoconsideredasillegal. FootNote:ManypeopleconsiderreportingtoPMIisnecessarywhentheyfindillegalactivities.PMIisnotawatchdogof allillegalactivities.AppropriateManagementsuggeststofollowtheorganizationalreportinghierarchylikeimmediate managersorHRDepartmentoftheirorganization.

Practitionersonlyfileethicscomplaintswhentheyaresubstantiatedbyfacts

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BasedonPMICodeofEthicsandProfessionalConduct At:http://www.pmi.org/en/AboutUs/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx

2. R_sp_]t

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ItisPractitionersdutytoshowhighregardtothemselvesand resourcesentrustedtothem.Resourcesmayincludepeople, money,reputation,thesafetyofothers,andnaturalor environmentalresources. StandardsInclude


Practitionerslistentootherspointsofview,seekingtounderstand them Practitionersapproachdirectlythosepersonswithwhomtheyhavea conflictordisagreement Practitionersconducttheirnormalbusinessinaprofessionalmanner, evenwhenitisnotreciprocated
Practitionersavoidthemselvesengagingingossipandavoidmakingnegative remarkstoundermineanotherpersonsreputation

Practitionernegotiateinagoodfaithanddonotexercisethepowerof theirexpertiseorpositiontoinfluencethedecisionsoractionsof othersinordertobenefitthempersonallyatothersexpense


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24 PMP, CAPM, PMI, PMBOK are registered trademarks of Project Management Institute Inc.

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Project Framework

3. F[irn_ss

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FairnessisPractitionersdutytomakedecisionsandactimpartiallyandobjectively. Theirconductmustbefreefromcompetingselfinterest,prejudice,andfavoritism Standardsinclude:


Practitionersdemonstratetransparencyintheirdecisionmakingprocess Practitionersconstantlyreexaminetheirimpartialityandobjectivity,takingcorrectiveaction asappropriate Practitionersprovideequalaccesstoinformationtothosewhoareauthorizedtohavethat information Practitioners makeopportunitiesequallyavailabletoqualifiedcandidates Practitionersproactivelyandfullydiscloseanyrealorpotentialconflictsofinteresttothe appropriatestakeholders Practitionersrefrainfromdecisionmakingprocesswhenthereisarealconflictofinterestuntil theymadefulldisclosureoftheconflictofinterest Practitionersdonothireorfire,rewardorpunish,orawardordenycontractsbasedon personalconsiderations,includingbutnotlimitedto,favoritism,nepotism,orbribery Practitionersdonotdiscriminateagainstothersbasedon,butnotlimitedto,gender,race,age, religion,disability,nationality,orsexualorientation

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BasedonPMICodeofEthicsandProfessionalConduct At:http://www.pmi.org/en/AboutUs/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx

4. Hon_sty

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HonestyisPractitionersdutytounderstandthetruthandactinatruthful mannerbothintheircommunicationsandintheirconduct StandardsInclude:


Practitionersearnestlyseektounderstandthetruth Practitionersshouldbetruthfulintheircommunicationsandintheirconduct Practitionersshouldprovideaccurateinformationinatimelymanner Practitioners makecommitmentsandpromises,impliedorexplicit,ingood faith Practitioners strivetocreateanenvironmentinwhichothersfeelsafetotell thetruth Practitionersdonotengageinorcondonebehaviorthatisdesignedto deceiveothers,includingbutnotlimitedto,makingmisleadingorfalse statements,statinghalftruths,providinginformationoutofcontextor withholdinginformationthat,ifknown,wouldrendertheirstatementsas misleadingorincomplete Practitionersdonotengageindishonestbehaviorwiththeintentionof personalgainorattheexpenseofanother

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BasedonPMICodeofEthicsandProfessionalConduct At:http://www.pmi.org/en/AboutUs/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx

25 PMP, CAPM, PMI, PMBOK are registered trademarks of Project Management Institute Inc.

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Project Framework

Gloss[ry of T_rms

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AbusiveManner: Conductthatresultsinphysicalharmorcreatesintensefeelings offear,humiliation, manipulation,orexploitationinanotherperson. ConflictofInterest: Asituationthatariseswhenapractitionerofproject managementisfacedwithmakingadecisionordoingsomeactthatwillbenefit thepractitioneroranotherpersonororganizationtowhichthepractitionerowes adutyofloyaltyandatthesametimewillharmanotherpersonororganizationto whichthepractitionerowesasimilardutyofloyalty.Theonlywaypractitioners canresolveconflictingdutiesistodisclosetheconflicttothoseaffectedandallow themtomakethedecisionabouthowthepractitionershouldproceed. DutyofLoyalty: Apersonsresponsibility,legalormoral,topromotethebest interestofanorganizationorotherpersonwithwhomtheyareaffiliated. Practitioner: Apersonengagedinanactivitythatcontributestothemanagement ofaproject,portfolio,orprogram,aspartoftheprojectmanagementprofession.

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BasedonPMICodeofEthicsandProfessionalConduct At:http://www.pmi.org/en/AboutUs/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx

Int_rp_rson[l Skills

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Abilitytoworkharmoniouslyandefficiently. Interpersonalskillsinclude:
Leadership. Teambuilding. Motivation. Communication. Influencing. Decisionmaking. Politicalandculturalawareness. Negotiation.
AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421

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Project Framework

L_[^_rship Skills

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Leadershipinvolvesfocusingtheeffortsofagroupofpeopletowardacommon goalandenablingthemtoworkasateam. Leadershipistheabilitytogetthingsdonethroughothers.Respectandtrust, ratherthanfearandsubmission,arethekeyelementsofeffectiveleadership. Abilitytoguideandinspireotherstoachieveresults. Abilitytoleadinclude:


Buildingrelationships. Takinginitiatives. Inspiringothersthroughpositiveinfluence.

Establishrapport,enhancecredibility,and gainothers'trust. Leadershipcapabilitiesarecriticalatthe beginningofaprojectorphase. Effectivelycommunicatethevision. Motivateandinspireteammembersfor higherprojectperformance.

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AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421

T_[m Buil^ing Skills

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Teambuildingistheprocessofhelpingagroupofindividuals,boundbya commonsenseofpurpose,toworkinterdependentlywitheachotherin theorganization Developingateamenvironmentinvolveshandlingprojectteamproblems anddiscussingtheseasteamissueswithoutplacingblameonindividuals Teambuildingactivitiesconsistof


Tasks
establishgoals define,andnegotiateroles andprocedures

AndProcesses
interpersonalbehaviorwithemphasisoncommunication conflictmanagement motivation leadership

TeamBuildingisanOngoingprocesstoworkcollaboratively

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AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421

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Project Framework

Motiv[tion Skills

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Projectteamsarecomprisedofteammemberswithdiverse backgrounds,expectations,andindividualobjectives.Theoverall successoftheprojectdependsupontheprojectteams commitment,whichisdirectlyrelatedtotheirlevelofmotivation Motivatingteammeansgettingtheircommitmenttoachieve objectives Motivationalfactorsinclude:


Jobsatisfaction. Challengingwork. Asenseofaccomplishment, achievement,andgrowth. Financialcompensation. Rewardsandrecognitions.

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AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421

Communi][tion Skills

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Effectivecommunicationwithintheprojectteamandbetweentheprojectmanager,team members,andallexternalstakeholdersisessential.Opennessincommunicationisagatewayto teamworkandhighperformance.Itimprovesrelationshipsamongprojectteammembersand createsmutualtrust Ensureeveryoneiskeptinformed,knowsexactlywhattodo,andhasalloftheinformationtodo theirjobs Projectmanagersshouldidentifyvariouscommunicationchannels,understandwhatinformation theyneedtoprovide,whatinformationtheyneedtoreceive,andwhichinterpersonalskillswill helpthemcommunicateeffectivelywithvariousprojectstakeholders Effectivecommunicationistheabilityto:
Motivate. Delegate. Organize. Solveproblems. Obtaininformation.

Useeffectivelisteningtechniquesto:
Manageconflicts. Takeappropriatedecisions. Providesuitablesolutions.

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AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421

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Project Framework

Influ_n]ing Skills

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Influencingisastrategyofsharingpowerandrelyingoninterpersonalskillstogetothersto cooperatetowardscommongoals. Usingthefollowingguidelinescaninfluenceteammembers:


Leadbyexample,andfollowthroughwithcommitments Clarifyhowadecisionwillbemade Useaflexibleinterpersonalstyle,adjustthestyletotheaudience Applyyourpowerskillfullyandcautiously.Thinkoflongtermcollaboration

Influentialmanagersusepersuasioninsteadofcoercion.
Influenceisbasedon: Credibility. Trust. Support. Collaboration.

Managersinfluencebydemonstrating:
Goodlisteningandrespondingskills. Goodsenseofhumor. Abilitytoexpressoneself. Beingsociableandoptimistic. Anobviousenthusiasmfortheirwork.

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AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421

D_]ision M[king Skills

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Decisionsaretheresultofcollaborationand negotiation.Therearefourbasicdecisionstyles normallyusedbyprojectmanagers:


Command Consultation Consensus Coinflip(random).

Therearefourmajorfactors thataffectthedecisionstyle: timeconstraints,trust,quality, andacceptance.


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Project Framework

Six Ph[s_s of D_]ision M[king

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Phase ProblemDefinition

Involves Exploringandclarifyingtheproblemorsituation.

ProblemSolutionGeneration

Brainstormingideas,solutions,oralternativesfortheproblem. Defineevaluationcriteria,rateprosandconsofalternatives,select bestsolution. Involvekeyparticipantstogainacceptanceandcommitmentto makingthesolutionwork. Postimplementationanalysis,evaluation,andlessonslearned. Evaluatinghowwelltheproblemwassolvedandprojectgoals achieved.(Extensionofpreviousphase)

IdeastoAction SolutionActionPlanning SolutionEvaluationPlanning EvaluationoftheOutcomeandProcess

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AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421

Politi][l [n^ Cultur[l @w[r_n_ss Skills

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Organizationalpoliticsareinevitableinprojectenvironmentsduetothe diversityinnorms,backgrounds andexpectationsofthepeopleinvolvedwithaproject. Theskillfuluseofpoliticsandpowerhelpstheprojectmanagertobe successful.Conversely,ignoringoravoidingprojectpoliticsand inappropriateuseofpowercanleadtodifficultyinmanagingprojects. Cultureatabehaviorallevelincludesthosebehaviorsandexpectations thatoccurindependentlyofgeography,ethnicheritage,orcommonand disparatelanguages.Culturecanimpactthespeedofworking,the decisionmakingprocess,andtheimpulsetoactwithoutappropriate planningRequiredtobuildanenvironmentoftrust Createawinwinatmosphere

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AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421

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Project Framework

N_goti[tion Skills

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Negotiationisastrategyofconferringwithpartiesof sharedoropposedinterestswithaviewtocompromiseor reachanagreement.Negotiationisanintegralpartof projectmanagementanddonewell,increasesthe probabilityofprojectsuccess. Negotiatesuccessfullyby:


Analyzingthesituation. Differentiatingtheneedsandwantsofboththeparties. Focusingonissuesandinterestsratherthanonpositions. Beingrealisticwhenmakingproposals. Impressingtheotherpartywhilegivingconcession. Ensuringawinwinsituationforbothparties. Communicatinginanappropriatemanner.
AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421

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Org[niz[tion[l Stru]tur_

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Matrix Functional Weak Balanced Strong Projectized

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Project Framework

Fun]tion[l Org[niz[tion

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AFOisahierarchywhereeachemployeehasone clearsuperior.Staffmembersaregroupedby specialty,suchasproduction,marketing, engineeringatthetoplevel. Specialtiesmaybefurthersubdividedinto functionalorganizations,suchasmechanicaland electricalengineering. Eachdepartmentinafunctionalorganizationwill doitsprojectworkindependentofother departments.
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Fun]tion[l Org[niz[tion Ex[mpl_

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Project Framework

M[trix Org[niz[tion

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Matrixorganizationsareablendoffunctionaland projectizedcharacteristics.
Weakmatricesmaintainmanyofthecharacteristicsofa functionalorganization,andtheprojectmanagerroleis moreofacoordinatororexpediterthanthatofatrue projectmanager. Strongmatriceshavemanyofthecharacteristicsofthe projectizedorganization,andcanhavefulltimeproject managerswithconsiderableauthorityandfulltimeproject administrativestaff. Whilethebalancedmatrixorganizationrecognizesthe needforaprojectmanager,itdoesnotprovidetheproject managerwiththefullauthorityovertheprojectand projectfunding.
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W_[k M[trix Org[niz[tion Ex[mpl_

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Project Framework

B[l[n]_^ M[trix Org[niz[tion Ex[mpl_

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Strong M[trix Org[niz[tion Ex[mpl_

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Project Framework

Proj_]tiz_^ Org[niz[tion

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Inaprojectizedorganization,teammembersare oftencolocated,mostoftheorganizations resourcesareinvolvedinprojectwork,and projectmanagershaveagreatdealof independenceandauthority. Projectizedorganizationsoftenhave organizationalunitscalleddepartments,but thesegroupseitherreportdirectlytotheproject managerorprovidesupportservicestothe variousprojects.
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Proj_]tiz_^ Org[niz[tion Ex[mpl_

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Project Initiation

Initi[tion O\j_]tiv_s

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ProjectAssessmentandFeasibilityStudy DefineHighLevelScope IdentifyProjectStakeholders,Performkeystakeholderanalysis DevelopProjectCharter Identifyanddocumenthighlevelrisks,assumptions,and constraints ObtainSponsorand/orClientApprovals

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P_rform proj_]t [ss_ssm_nt

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MeetwiththeSponsor,Customer,andOtherSubjectmatterexpertsto evaluateprojectfeasibility Assessingprojectteamscapabilitiestoperformtheproject Mostcommonlyfeasibilitywillbeperformedinfollowingareas:


Finances Operations Technology Politics Legalities Resources Time Geography

ThisfeasibilitystudyisdifferentfromProjectSelectionfeasibilitystudy. HereProjectManagerevaluatedPossibilitiestocompletetheproject

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Project Initiation

Qu_stions n__^ to \_ _v[lu[t_^

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Dowehaveenoughmoneyto executetheprojectproperly? Willthisprojecthaveanegative impactonacompanysimageand revenue? Whataretheongoingsupport requirements? Doesthisprojectfitinthewaythis companydoesthework? Howmanydepartmentsareinvolved inthisproject? Doesthisprojectconflictwithother projectsalreadyintheworks?

Doesthisprojecttechnical requirementsmeetthecurrent capabilities? Doesthisprojectconflictswitheither corporateorgovernmentalpolitics? Whosetoeswillthisprojectstepon? Arethereenoughhuman,material resourcesavailableforthisproject? Isthereenoughtimetodeliverthe project? Areprojectstakeholdersare geographicallydispersed?

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Proj_]t S_l_]tion

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ProjectSelectionCriteria:Theactofchoosingaprojectfromamongcompetingproposals. ProjectSelectionMethods:Anysystematicapproachusedtoanalyzethevalueofaproposed projectinordertochooseamongcompetingproposals. DecisionModels:2majorcategories


Description
Analyzethepredictedvalueofthecompletedprojectsindifferentways. Maypresentthevalueintermsof: WeightedScoringModels BCR BenefitsCostRatio PaybackPeriod NPV NetPresentValue&IRR InternalRateofReturn ROI(ReturnonInvestment) EVA(EconomicValueAdd) Usedifferenttypesofmathematicalformulasandalgorithmstodetermine theoptimalcourseofaction.Modelsinthissectionare LinearProgramming NonlinearProgramming DynamicProgramming IntegerProgramming Multiobjectiveprogramming

System

BenefitMeasurement (EconomicalModels)

ConstrainedOptimization (MathematicalModels)

Aspirantswillnotbetestedindetailsofthesemodels.
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Project Initiation

High-L_v_l S]op_

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Projectsponsors,CustomersidentifyProjecthighlevelscopeandprovide toProjectManagementteam.WhichwillbeincludedinProjectCharter
HighLevelscopestatementshelpestablishtheboundariesoftheproject Highlevelscope canbederivedfromdefinedProjectObjectives HighlevelscopealsoincludesListofDeliverables Highlevelscopealsoidentifiesoutofscopeconditionsbydescribingwhatdeliverables willnotbecreated Itisagoodpracticetoprovidealistoforganizationsthose areinscopeand organizationsthose areoutofscope

Basedonhighlevelprojectscope,ProjectteamdevelopsdetailedScope statementinPlanningphaseoftheproject.Gradualdetailingofthescope iscalledProgressiveElaboration DuringProgressiveelaboration,highlevelscopewillbeexplainedindetail butnewitemswillnotbeaddedandnochangesaremade

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High-L_v_l Risk

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Projectsponsors,CustomersmustprovideExternalProjectRisks, Constraints.AccordingtoPMI,Risksaredocumentedandmanagedina documentcalledRiskRegister.RiskRegisterwillbeinitiatedinearlystages oftheprojectandupdated,maintainedthroughouttheProjectlifecycle.


HighLevelRiskIdentificationhelpestablishimplementationapproach Bylookingintohistoricaldata,andpreviousexperiencestoidentifyHighlevelRisks HighLevelRiskIdentificationalsohelpstounderstandcurrentenvironment

ProjectteamwillconductdetailedRiskIdentificationprocesstoaddevery risktotheRiskRegister.LaterProjectteamwillperformQualitativeand QuantitativeanalysistofilterrisksandprovideRiskResponsestrategies ByidentifyingHighLevelRisksandResponsestrategiesduringtheearly phasesofproject,allowsprojectteamtotakeGO/NOGOdecisions

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Project Initiation

4.1 D_v_lop Proj_]t Ch[rt_r

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Overview

Thisprocessdevelopsadocumentthatlistsinitialrequirements thatsatisfythestakeholdersneedsandexpectations.Charter authorizesProjectorPhaseSTART

Inputs
1. Project Statement of Work 2. Business Case 3. Contract 4. Enterprise Environmental Factors 5. Organizational Process Assets

Toolsand Techniques
Expert Judgment 1.

Outputs
ProjectCharter

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 73

Busin_ss C[s_ D_v_lopm_nt

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Aprojectbusinesscaseisaprojectjustification documentthatoutlinesaprojectproposalandplanfor authorizedfunding,resources,andimplementation. Theobjectiveofaprojectbusinesscaseistojustify:


Whatbenefitandcosttheprojectbringstothebusiness Whytheprojectisimportantandshouldbefunded Wheretheprojectneedstobeimplemented Whentheprojectcanbeimplemented Whoisrequiredtoimplementtheproject Howtheprojectcanbeimplementedwithsuccess

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Project Initiation

Busin_ss C[s_ pro]_ss lif_]y]l_

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BusinessManagers,Sponsors

Clients,Sponsors,SeniorManagement

Requirement oridea

Initiate Process

Develop Business Case


Sponsors,ProjectTeam

Sponsors,ProjectTeam,Steeringteam

Sponsors,ProjectTeam,Steeringteam

Propose alternatives

Select Alternative/ Approval

ImplementProject UsePMIs42 Processes

Transition tosupport
SupportManagers,ProjectTeam
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Proj_]t St[t_m_nts of Work (SOW)

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Thestatementofwork(SOW)isanarrativedescriptionofproducts orservicestobedeliveredbytheproject.
Forinternalprojects,theprojectinitiatororsponsorprovidestheSOW Forexternalprojects,theSOWcanbereceivedfromthecustomeras partofabiddocument

TheSOWreferences:
1. 2. 3. Businessneed:Anorganizationsbusinessneedmaybebasedona marketdemand,technologicaladvance,legalrequirement,or governmentregulation Productscopedescription:Thisdocumentsthecharacteristicsofthe productthattheprojectwillbeundertakentocreate Strategicplan:Thestrategicplandocumentstheorganizations strategicgoals.Therefore,allprojectsshouldbealignedwiththe strategicplan

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Project Initiation

S[li_nt f_[tur_s of CH@RTER

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ProjectCharterisadocumentthatformallyauthorizesandinitiatesa projectoraphase ProjectCharterdocumentsinitialrequirementsthatsatisfythe stakeholdersneedsandexpectations. Aprojectmanagerisidentifiedandassignedwhiletheprojectcharteris beingdeveloped ProjectCharterprovidestheprojectmanagerwiththeauthoritytoapply resourcestoprojectactivities. Projectsareauthorizedbysomeoneexternaltotheprojectsuchasa sponsor,PMO,orportfoliosteeringcommittee.Theprojectinitiatoror sponsorshouldbeatalevelthatisappropriatetofundingtheproject. ProjectSponsorwilleithercreatetheprojectcharterordelegatethatduty totheprojectmanager.Theinitiatorssignatureonthecharterauthorizes theproject. ProjectCharterlinkstheprojecttothestrategyandongoingworkofthe organization
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Proj_]t Ch[rt_r Do]um_nt

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ProjectCharterdocumenthighlightsallhighlevelaspectsoftheprojectandprovides thejustificationtoundertakethisproject.MostofthesedetailsarecollectedfromSOW andinterviewingsponsor.Thedocumentshouldhavefollowingsections:

Projectpurposeand justification Measurableprojectobjectives Highlevelrequirements Highlevelprojectdescription Highlevelrisks


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SummaryMileStoneSchedule SummaryBudget ApprovalRequirements ProjectManager SigningAuthority

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Project Initiation

10.1 I^_ntify St[k_hol^_rs

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Overview

IdentifyStakeholdersistheprocessofidentifyingallpeopleor organizationsimpactedbytheproject,anddocumentingrelevant informationregardingtheirinterests,involvement,andimpact onprojectsuccess.

Inputs
1. 2. 3. 4. Projectcharter Procurement documents Enterprise environmentalfactors Organizationalprocess assets 1. 2.

Toolsand Techniques
Stakeholderanalysis Expertjudgment 1. 2.

Outputs
Stakeholderregister Stakeholder managementstrategy

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 246

S[li_nt f_[tur_s of St[k_hol^_rs

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Stakeholdersarepersonsororganizationswhoareactivelyinvolvedintheprojectorwhose interestsmaybepositivelyornegativelyaffectedbytheproject Theprojectmanagementteammustidentifybothinternalandexternalstakeholdersinorderto determinetheprojectrequirementsandexpectations Stakeholdersoftenhaveverydifferentorconflictingobjectives,itisProjectmanagers responsibilitytobalancethoseinterests Followingaresomeexamplesofstakeholdersandtheirrelationstotheproject


PMO PortfolioManager ProgramManager

OperationsManagement FunctionalManagers

Sellers/BusinessPartners

Customers /Users

Project
Sponsor
ProjectManagementTeam ProjectManager TeamMembers

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 24

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Project Initiation

St[k_hol^_r @n[lysis

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Stakeholderanalysisisatechniqueofsystematicallygatheringandanalyzing quantitativeandqualitativeinformationtodeterminewhoseinterestsshouldbe takenintoaccountthroughouttheproject.


Itidentifiestheinterests,expectations,andinfluenceofthestakeholdersandrelatesthemto thepurposeoftheproject. Italsohelpsidentifystakeholderrelationshipsthatcanbeleveragedtobuildcoalitionsand

Stakeholderanalysisgenerallyfollowsthestepsdescribedbelow.. Step1:PotentialStakeholderIdentification Step2:IdentifypotentialStakeholdercouldgenerate, classifythemanddefineapproachstrategy Availableclassificationmodelsare:


ClassificationModels Power/interestgrid Power/influencegrid Influence/Impactgrid Saliencemodel

Step3:Assessstakeholdersreactionoversituations

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 249

St[k_hol^_r R_gist_r & M[n[g_m_nt Str[t_gy

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Adocumentthatidentifiesstakeholdersofaprojectwithinformationthatincludestheir identification,assessment,andstakeholderclassification.Shouldcontainalldetailsabout stakeholdersincluding


Identificationinformation:Name,organizationalposition,location,roleintheproject,contactinformation; Assessmentinformation:Majorrequirements,mainexpectations,potentialinfluenceintheproject,phase inthelifecyclewiththemostinterest;and Stakeholderclassification:Internal/external,supporter/neutral/resistor,etc.

Assessment ofImpact

Potentialstrategyto gainsupport

ByaddingaboveROWStothestakeholderRegister, StakeholderAnalysisMatrixisgenerated

Thestakeholdermanagementstrategydefinesanapproachtoincreasethesupportandminimize negativeimpactsofstakeholdersthroughouttheentireprojectlifecycle.Stakeholder

managementstrategyisrepresentedbyastakeholderanalysismatrix.
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Project Planning

Pl[nning O\j_]tiv_s

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Assessdetailedprojectrequirements,constraints,andassumptionswith stakeholdersbasedontheprojectcharter,lessonslearnedfrompreviousprojects, andtheuseofrequirementgatheringtechniques Createtheworkbreakdownstructurewiththeteambydeconstructingthescope Developabudgetplanbasedontheprojectscopeusingestimatingtechniques Developaprojectschedulebasedontheprojecttimeline,scope,andresource plan Developahumanresourcemanagementplanbydefiningtherolesand responsibilities Developacommunicationplan Developaprocurementplan Developaqualitymanagementplan Developachangemanagementplan Developariskmanagementplan Presenttheprojectplantothekeystakeholders Conductakickoffmeetingwithallstakeholders

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Pl[nning Proj_]t Work


IdentifytheElementsofaProjectManagementPlan DevelopProjectManagementPlan Develop3Baselines(PlanningPart1) ScopeBaseline(Process5.3) ScheduleBaseline(Process6.5) CostBaseline(Process7.2) Develop13SubsidiaryManagementPlans(PlanningPart2) Scope,Cost,TimeManagementPlans(Process4.2) Configuration,ChangeManagementPlans(Process4.2) RequirementsManagementPlan(Process5.1) QualityManagementPlan(Process8.1) HRManagementPlan,StaffingManagementPlan(Process9.1) CommunicationManagementPlan(Process10.2) RiskManagementPlan(Process11.1) DevelopRiskResponses(Process11.2 11.5) ProcurementManagementPlan(Process12.1)

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ReviewCertSchoolPoster#1;Identify20planningprocesses;Identifyprocessesthatdevelopbaselinesandidentify processesthatdevelopmanagementplans

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Project Planning

Proj_]t M[n[g_m_nt Pl[n Compon_nts

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KeyComponents ofaProjectManagementPlan SubsidiaryManagementPlans(MP) RequirementsMP ScopeMP,ScheduleMP,CostMP QualityMP,ProcessImprovementPlan HRMP,StaffingMP CommunicationsMP RiskMP ProcurementMP ConfigurationMP,ChangeMP In PlanningPart2abovemanagementplans willbecompleted.
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Baselines ScopeBaseline
(Scope Statement,WBS,WBSD)

ScheduleBaseline CostBaseline Combinationofabove3baselinesis calledPerformanceMeasurementBaseline

In PlanningPart1aboveBaselineswillbe completed.

P_rform[n]_ M_[sur_m_nt B[s_lin_

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3baselinestogetherarecalledasPerformanceMeasurementBaselines(PMB).Three BaselinesinPMBareScopeBaseline,ScheduleBaselineandCostBaseline. 3planningprocessesofScopeManagementKnowledgeAreadeliverScopeBaseline.


5.1CollectRequirements 5.2DefineScope 5.3CreateWBS 6.1DefineActivities 6.2SequenceActivities 6.3EstimateActivityResources 6.4EstimateActivityDurations 6.5DevelopSchedule 7.1EstimateCosts 7.2DetermineBudget

5planningprocessesofTimeManagementKnowledgeAreadevelopsScheduleBaseline

2planningprocessesofCostManagementKnowledgeAreadevelopsCostBaseline

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 82

45 PMP, CAPM, PMI, PMBOK are registered trademarks of Project Management Institute Inc.

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Project Planning

5.1Coll_]t R_quir_m_nts

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Overview

CollectRequirementsistheprocessofdefininganddocumenting stakeholdersneedstomeettheprojectobjectives. Requirementsincludethequantifiedanddocumentedneedsand expectationsofthesponsor,customer,andotherstakeholders.

Inputs
1. 2. Projectcharter Stakeholderregister 1. 2. 3. 4. 5. 6. 7. 8.

Toolsand Techniques
Interviews Focusgroups Facilitatedworkshops Groupcreativity techniques Groupdecisionmaking techniques Questionnairesand surveys Observations Prototypes 1. 2. 3.

Outputs
Requirements documentation Requirements managementplan Requirements traceabilitymatrix

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 105

R_quir_m_nts g[th_ring tools

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Interviews:areformalorinformalapproachtodiscoverinformationfrom stakeholdersbytalkingtothemdirectly.Structuredandpreparedquestions providebetterresponses.Interviewsmayinvolvemultipleinterviewersand/or multipleinterviewees Focusgroups:bringtogetherprequalifiedstakeholdersandsubjectmatterexperts tolearnabouttheirexpectationsaboutaproposedproduct,service,orresult.A moderatorguidesthegroupthroughaninteractivediscussion QuestionnairesandSurveys:arewrittensetsofquestionsdesignedtoquickly accumulateinformationfromawidenumberofrespondents Observations:provideadirectwayofviewingindividualsintheirenvironmentand howtheyperformtheirjobsortasksandcarryoutprocesses.Itisparticularly helpfulfordetailedprocesseswhenthepeoplethatusetheproducthavedifficulty orarereluctanttoarticulatetheirrequirements.Observation,alsocalledjob shadowing Prototypes:Prototypingisamethodofobtainingearlyfeedbackonrequirements byprovidingaworkingmodeloftheexpectedproductbeforeactuallybuildingit. Nonworkingscreenshotsarecalledmockupsorwireframes.

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Project Planning

F[]ilit[t_^ Workshops

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Requirementsworkshopsarefocusedsessionsthatbringkeycross functionalstakeholderstogethertodefineproductrequirements Usingthistechniqueissuescanbediscoveredandresolvedmorequickly thaninindividualsessions


facilitatedworkshopscalledJointApplicationDevelopment(orDesign)(JAD) sessionsareusedinthesoftwaredevelopmentindustry facilitatedworkshopscalledQualityFunctionDeployment(QFD)helps determinecriticalcharacteristicsfornewproductdevelopmentInthe manufacturingindustry

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Group Cr_[tivity T_]hniqu_s

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Groupactivitiesorganizedwithinorganizationstoidentifyprojector productrequirementsforaproject.
GroupCreativityTechnique Brainstorming Nominalgrouptechnique TheDelphitechnique Description Usedtogenerateandcreatemultipleideasrelatedtoprojectand productrequirements. Avotingprocessisusedinthistechniquetorankthemostuseful ideasobtainedthroughbrainstorming. Agrouptechniquethatextractsandsummarizesanonymous groupinputtochooseamongvariousalternatives. Ideascreatedthroughbrainstormingareconsolidatedintoamap thatreflectsthecommonality,differencesinunderstanding,and generationofnewideas. Enablesthesortingofalargenumberofideascollectedduring brainstormingintodistinctcategoriesforreviewandanalysis.

Ideaormindmapping

Affinitydiagram

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Project Planning

Group D_]ision M[king T_]hniqu_s


Thesetechniques:

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Areassessmentprocessesthatassessmultiplealternativestoarriveatan expectedoutcome. Areusedtogenerate,classify,andprioritizeprojectorproductrequirements.

Determineoutcome,i.e.,theresolutionoffutureactionfortheproject. Variousmethodsareadoptedtoreachagroupdecision.
Method Unanimity Majority Plurality Dictatorship Description Everyoneinthegroupagreesonasinglecourseofaction. Requiressupportfrommorethan50%ofthemembersofthegroupto indicatetheselecteddecision. Thelargestbatchinthegroupdecidesforthegroupevenifamajorityis notachieved. Oneindividualmakesthedecisionforanentiregroup.

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R_quir_m_nts Do]um_nt[tion

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Requirementsdocumentationdescribeshowindividualrequirementsmeetthebusinessneedfor theproject.Requirementsmaystartoutatahighlevelandbecomeprogressivelymoredetailedas moreisknown. Theformatofarequirementsdocumentmayrangefromasimpledocumentlistingallthe requirementscategorizedbystakeholderandpriority,tomoreelaborateformscontainingexecutive summary,detaileddescriptions,andattachments. Therequirementsdocumentedmustbe:


Unambiguous Traceable Complete Consistent Acceptabletokeystakeholders Businessneedoropportunitytobeseized Businessandprojectobjectivesfortraceability Functionalrequirements,describingbusinessprocesses Nonfunctionalrequirements,suchaslevelofservice,performance, safety,security,compliance,supportability,retention/purge,etc. Qualityrequirements Acceptancecriteria Supportandtrainingrequirements;and Requirementsassumptionsandconstraints.

Componentsofrequirementsdocumentation:

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 110

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Project Planning

R_quir_m_nts M[n[g_m_nt Pl[ns

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Aplanthatdescribeshowtheprojectrequirements throughouttheprojectlifecyclewillbe:
Analyzed. Documented. Managed.

Phasetophaserelationshipsbetweenvariousphases stronglyinfluencehowrequirementsaremanaged. Componentsoftheplaninclude:


Methodstoplan,track,andreportrequirementactivities. Configurationmanagementrelatedactivities. Processforrequirementsprioritization. Projectorproductrelatedmetrics. Traceabilitymatrixforrequirements.

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Th_ R_quir_m_nts Tr[]_[\ility M[trix

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Atabulardocumentthatlinkstheprojectorproductrequirementsto theiroriginandtracesthemthroughouttheprojectlifecycle. Linkseachrequirementtothe:


Businessandprojectobjectives. WBS. Productdesignanddevelopment. Testscenarios.

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Project Planning

5.2 D_fin_ S]op_

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Overview

DefineScopeistheprocessofdevelopingadetaileddescription oftheprojectandproduct.Scopebuildsuponthemajor deliverables,assumptions,andconstraintsthataredocumented duringprojectinitiation

Inputs
1. 2. 3. Projectcharter Requirements documentation Organizationalprocess assets 1. 2. 3. 4.

Toolsand Techniques
Expertjudgment Productanalysis Alternatives identification Facilitatedworkshops 1. 2.

Outputs
Projectscope statement Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 112

Pro^u]t @n[lysis T_]hniqu_s

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Eachtechniqueisanevaluationoftheproject'sendproductandwhatit willtaketocreatethisproduct.

Technique

Description Analyzingallofthethingsthataproductdoes,includingprimaryand relatedfunctionstoidentifyunnecessaryfunctionsthatmightdrive upcostonaproduct. Identifyinganddevelopingthecostversusbenefitsratioforeach functionofaproduct. Identifyingwhatthecustomer'sneedsare,andtranslatingthose needsintotechnicalrequirements. Analyzingproductsholistically,integratingfactorssuchasusers, usageenvironment,andrelatedhardwareorsoftwarewithwhichthe productmustfunction.

Functionalanalysis Valueengineeringand valueanalysis Qualityfunction deployment Systemsengineering

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Project Planning

T_]hniqu_s for @lt_rn[tiv_s I^_ntifi][tion

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Methodsforgeneratingasmanyalternativesolutionsandplansas possibleduringprojectplanning.
Technique Lateralthinking Description Acreativeapproachtoproblemsolvinginwhichtheteamattemptsto thinkaboutaprobleminnewwaysandgenerateafreshsolution. Ageneralcreativitytechniqueforgeneratingpossiblealternatives.The goalistogenerateasmanyideasaspossiblefromasmanyteammembers aspossible. Agrouptechniquethatextractsandsummarizesanonymousgroupinput tochooseamongvariousalternatives.

Brainstorming

Delphitechnique

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th_ S]op_ St[t_m_nt

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Theprojectscopestatementdescribes,indetail,theprojectsdeliverablesandthework requiredtocreatethosedeliverables.Theprojectscopestatementalsoprovidesa commonunderstandingoftheprojectscopeamongprojectstakeholders


Content Projectobjectives Productdescription Projectrequirements Projectdeliverables Projectboundaries Productacceptancecriteria Projectconstraints Projectassumptions Description Themeasurablesuccesscriteriafortheproject. Thecharacteristicsoftheproduct,service,orresultoftheprojectundertaken. Theconditionsorcapabilitiesthedeliverablesoftheprojectmustmeet. Anytangible,measurableresultoroutcomerequiredtocompleteaprojector portionofaproject. Theparametersofwhatisandwhatisnotincludedwithinaproject. Theprocessandcriteriaforacceptingfinishedproductsorservicesresultingfrom aproject. Factorsthatlimitthewaythattheprojectcanbeapproached. Statementsthatmustbetakentobetrueinorderfortheplanningtobegin.

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Project Planning

5.3 Cr_[t_ WBS

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Overview

CreateWBSistheprocessofsubdividingprojectdeliverablesand projectworkintosmaller,moremanageablecomponents.TheWBS organizesanddefinesthetotalscopeoftheproject,andrepresents theworkspecifiedinthecurrentapprovedprojectscopestatement

Inputs
1. 2. 3. Projectscope statement Requirements documentation Organizationalprocess assets 1.

Toolsand Techniques
Decomposition 1. 2. 3. 4.

Outputs
WBS WBSdictionary Scopebaseline Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 116

How to D_v_lop [ Work Br_[k^own Stru]tur_

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TodevelopaWBS: 1. Gatherreferencematerialsandotherinputs. 2. Determinehowyouwillorganizeprojectwork. 3. Identifymajordeliverables. 4. Analyzeeachelementtodeterminewhetheritis sufficientlydecomposed. 5. BreakdowneachWBSelementtotheworkpackage level. 6. ValidateyourWBSusingabottomupapproach. 7. Useyourcodeofaccountstoassignacostcodeto eachelement
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Project Planning

Work P[]k[g_
Plannedworkordeliverables. Lowestlevelcomponentoftheworkbreakdownstructure. Costandschedulecanbeeasilyestimated.
Mapsto project scope statement

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Subdivides project workinto smaller pieces

Lastitemin thehierarchy iscalledWork Package

Aworkbreakdownstructureshowingtheworkpackages
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WBS Styl_s

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DeliverablesBased FunctionalGroups Geographical TimePhased Mixed

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Project Planning

WBS Di]tion[ry [n^ R@M


WBSDictionary
CodeofAccountIdentifier BriefStatementofwork Responsibleparties Minimilestones Contractualinformation QualityRequirements TechnicalSpecifications Chargecodesorothercostinginformation AssociatedActivitiesorTasks
Res1 WP1 WP2 WP3
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ResponsibilityAssignmentMatrix
TheWBSisthefoundationfortheRAM

Res2

Res3

X X X

S]op_ B[s_lin_

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Thescopebaselineisacomponentoftheproject managementplan.Componentsofthescopebaseline include:


Projectscopestatement.Theprojectscopestatementincludes theproductscopedescription,andtheprojectdeliverables,and definestheproductuseracceptancecriteria. WBS.TheWBSdefineseachdeliverableandthedecomposition ofthedeliverablesintoworkpackages. WBSdictionary.TheWBSdictionaryhasadetaileddescription ofworkandtechnicaldocumentationforeachWBSelement.

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Project Planning

D_v_loping Proj_]t S]h_^ul_s

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CreateanActivityList CreateaProjectScheduleNetworkDiagram EstimateActivityResources EstimateDurationforProjectActivities DevelopaProjectSchedule IdentifytheCriticalPath OptimizetheProjectSchedule EstablishaScheduleBaseline

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6.1 D_fin_ @]tiviti_s

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Overview

Inthisprocessaprojectmanagerdecompositionstheoverall projectscopeBaselineintosmallermanageableactivities. Activityisthelowestlevelatwhichaprojectmanagercan scheduletheproject.

Inputs
1. Scope Baseline 2. Enterprise Environmental Factors 3. Organizational Process Assets 1. 2. 3. 4.

Toolsand Techniques
Decomposition Rolling Wave Planning Templates Expert Judgment

Outputs
1. Activity List 2. Activity Attributes 3. Milestone list

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Project Planning

D_]omposition, Rolling W[v_ Pl[n

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Decomposition RollingWave Planning Templates

DecompositionreferstotheprocessofbreakingdowntheWBS elementintosmallerpiecescalledactivities. Projectmanagershouldworkcollaborativelywiththeproject teamandfunctionalmanagerstoappropriatelybreaktheWBS intomanageableandmeasurableactivities.

RollingWavePlanningreferstoamethodofprojectplanning whereneartermactivitiesareplannedindetailsandthemid termtolongtermactivitiesareplannedinlesserdetailed. Thismethodassumesthattheneartermfutureismore predictableandtherearelittleknownfactsaboutthelonger termfuture.

Templateisalistofstandardactivitythatisusedbytheproject managerasastartingpointtocreatetheprojectplan.

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@]tiviti_s

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Elementofprojectworkthatrequiresanactiontoproduce adeliverable. Haveanexpectedduration. Consumebudgetand/orhumanresources. Arenamedinverbnounformat. Example:Activitiesinacompanyproject.


Reviseusermanual. Makeasalespresentation. Developcode
Verb(Action) Noun(Deliverable)

Revise user manual


Expected duration determined by (whatever)

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Project Planning

@]tivity List [n^ [ttri\ut_s

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ActivityList
ActivityAttribute
PersonResponsible:Lisa Berg

Milestones Milestone1 Milestone2

ActivityAttribute: Anyadditionalinformation aboutanactivityisconsidered activityattribute. Eg:PersonResponsible,Activity Dependency,Activitylocation, etc.

ActivityList: (a) Itsalistofallactivitiesthat needtobeperformedto successfullyexecutethe project. (b) Eachactivityintheactivity listshouldhaveadequate andclearinformation.

MilestoneList: a) Milestonelistrepresents completionofasetofkey activity. b) Milestonesaregenerally deliverabledriven, occasionallytheycanbetime driven. c) Eg:Design,Build,Test,Deploy.

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6.2 S_qu_n]_ @]tiviti_s

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Overview

Inthisprocesstheprojectmanagersequencesvariousactivities tocreateanetworkdiagram(ProjectSchedulenetworkdiagram)

Inputs
1. 2. 3. 4. Activity List Activity Attributes Milestone List Project Scope Statement 5. Organizational Process Assets

Toolsand Techniques
1. Precedence diagramming method 2. Dependency determination 3. Applying leads and lags 4. Schedule network template

Outputs
1. Project schedule network diagrams 2. Project document updates

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Pr_]_^_n]_ R_l[tionship Typ_s

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FinishtoStart

Theinitiationofthesuccessoractivity dependsuponthecompletionofthe predecessoractivity. Thecompletionofthesuccessoractivity dependsuponthecompletionofthe predecessoractivity. Theinitiationofthesuccessoractivity dependsupontheinitiationofthe predecessoractivity. Thecompletionofthesuccessoractivity dependsupontheinitiationofthe predecessoractivity.

FinishtoFinish

StarttoStart

StarttoFinish

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Typ_s of @]tivity D_p_n^_n]i_s

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Mandatory 1. Dependenciesthatare contractuallyrequired. 2. Thesedependenciesare identifiedbytheproject team. 3. Thesedependenciesare alsoreferredashard logic.

Discretionary

External

1. Thesedependenciesare 1. Thesedependenciesare determinedbythe usuallyoutsidethe projectteam. projectteamscontrol. 2. Thesedependenciescan 2. Thesedependenciesare basedontheneedsof bechangedifrequired. partiesoutsideofthe 3. Thesedependenciesare project. alsoreferredtoas preferred,preferentialor softlogic. 4. Thesedependenciesare reevaluatedwhenthe projectistobefast tracked.

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L_[^

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Achangeinalogicalrelationshipthatallowsthesuccessoractivity tostartbeforethepredecessoractivityendsinanFSrelationship. Implementedwhenasuccessoractivityneedstobeacceleratedin ordertoshortentheoverallprojectschedule.

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FSrelationshipwithlead

L[g

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Adelayinalogicalrelationshipthatcausesthesuccessoractivityto startafterthelagtimeiscompletedinanFSrelationship. Example:CuringperiodafterCementroadispavedisalag. Successoractivitycantstartimmediately.

FSrelationshipwithlag
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Typ_s of N_twork Di[gr[ms


PrecedenceDiagramMethod(AON ActivityonNode)

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GERT

ActivityA

ActivityB

ArrowDiagramMethod(AOA ActivityonArrow)

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Pr_]_^_n]_ Di[gr[mming M_tho^ (PDM)

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Producesaprojectschedulenetworkdiagram thatusesrectangularboxes,ornodes,to representactivitiesandarrowstorepresent precedencerelationshipsbetweenactivities. Characteristics:


Readsfromlefttoright. Showsdurationinnodes. Createdmanuallyorwithsoftware. Reportagroupofrelatedactivitiesasanaggregate activity. Useallprecedencerelationshiptypes.

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Pr_]_^_n]_ Di[gr[mming M_tho^ (PDM) (Cont.)


Activity A B C D E F G H I J F D H I A B,F C,G D Predecessors

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Aprojectschedulenetworkdiagramusingtheprecedencediagrammingmethod
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6.3 Estim[t_ @]tivity R_sour]_s

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Overview

EstimateActivityResourcesistheprocessofestimatingthetype andquantitiesofmaterial,people,equipment, orsuppliesrequiredtoperformeachactivity

Inputs
1. 2. 3. 4. 5. Activitylist Activityattributes Resourcecalendars Enterprise environmentalfactors Organizationalprocess assets 1. 2. 3. 4. 5.

Toolsand Techniques
Expertjudgment Alternativesanalysis Publishedestimating data Bottomupestimating Projectmanagement software 1. 2. 3.

Outputs
Activityresource requirements Resourcebreakdown structure Projectdocument updates

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Proj_]t R_sour]_s

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Anyusefulmaterialobjectorpersonneededfor projectcompletion. Includelabor,materials,facilities,equipment, consultants,services,supplies,andutilities Resourcescanbecategorizedin3varieties


WorkResourcesEx:HumanResources,Equipment MaterialResourcesEx:Wood,Iron CostResources
FixedCosts(Lumpsumandsameinallsituations, irrespectiveofusage) VariableCosts(Dependsonamountofusage.Differentin differentsituationsEx:Travel)
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R_sour]_ R_quir_m_nts [n^ RBS

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ActivityResourceRequirements ResourceBreakdownStructure ProjectDocumentupdates


Activitylist,activityattribute..

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6.4 Estim[t_ @]tivity Dur[tions

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Overview

EstimateActivityDurationsistheprocessofapproximatingthenumberof workperiodsneededtocompleteindividualactivitieswithestimated resources.Estimatingactivitydurationsusesinformationonactivityscope ofwork,requiredresourcetypes,estimatedresourcequantities,and resourcecalendars.

Inputs
1. 2. 3. 4. 5. 6. 7. Activitylist Activityattributes Activityresource requirements Resourcecalendars Projectscope statement EEF OPA 1. 2. 3. 4. 5.

Toolsand Techniques
Expertjudgment Analogousestimating Parametricestimating Threepointestimates Reserveanalysis 1. 2.

Outputs
Activityduration estimates Projectdocument updates

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@n[logous & Bottom-Up


Analogous BottomUp

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ItcanbeDefined asanestimateofdurationbased Inthismethoddurationofeachpackageis onhistoricaldataofasimilar(analog)item.Itis estimatedand aggregatedtotheupperlevel. alsoreferredtoastopdownmethod. ThetotalaggregateddurationvaluesisProject Schedule. Advantages: Itreliesonprevious experiencesandlessons learned. Itsacosteffectivewayofestimation. Overallprojectcostswillbecapped. Limitations: Itrequiressignificantpastexperience. Itshaslimitedapplicationforprojectsthat havesignificantuncertainty. Advantages: Itsmore detailedasallactivitiesare estimated. Itsmoreaccurate. Gainsbuyinfromteammembersasthey areinvolvedintheestimationprocess. Limitations: It requiresalotoftimeandefforttoestimate. Requiresthattheteamhasknowledgeofall activities. Itresultsininconsistencyasvariousteam membersmayusedifferentpadding assumptions.

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P[r[m_tri] & Thr__ point

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Parametric
Aparametricdurationestimateisonethatuses EstimatingRelationships(ERs)andassociated mathematicalalgorithms(orlogic)toestablish projectdurationestimates. Advantages: Itisbasedonamathematicalalgorithmand can beveryaccurate Withestablishedprocessandexpertise, estimationwouldbeloteasier Limitations: Qualityparametersarequiteimportant.Little variationsinparametersmightresultinto largerestimationvariations

ThreePoint
Theaccuracyofsinglepointactivityduration estimatescanbeimprovedbyconsidering estimationuncertaintyandrisk. Advantages: Based onageoldProgramEvaluation ReviewTechnique(PERT)

Limitations: .Forsmallervariancetheendresultwillbe closer tomostlikelyvalue.

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6.5 D_v_lop S]h_^ul_ Pro]_ss

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Overview

DevelopScheduleistheprocessofanalyzingactivitysequences, durations,resourcerequirements,andscheduleconstraintstocreatethe projectschedule.Enteringtheactivities,durations,andresourcesintothe schedulingtoolgeneratesaschedulewithplanneddatesforcompleting projectactivities

Inputs
1.Activitylist 2.Activityattributes 3.Schedulenetworkdiagrams 4.Activityresource requirements 5.Resourcecalendars 6.Activityduration 7.estimates 8.Projectscopestatement 9.EEF/OPA 1. 2. 3. 4. 5. 6. 7. 8.

Toolsand Techniques
Schedulenetwork analysis Criticalpathmethod Criticalchainmethod Resourceleveling Whatifscenario analysis Applyingleadsandlags Schedulecompression Schedulingtool 1. 2. 3. 4.

Outputs
Projectschedule Schedulebaseline Scheduledata Projectdocument updates

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Proj_]t S]h_^ul_s

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Theplanforstartingandfinishingactivitiesonspecificdatesandina certainsequence. Usedto:


Coordinateactivitiesintoamasterplan. Trackscheduleperformance.

Aprojectscheduleforawebsitedesignproject(deliverablecategoriesinbold)
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Flo[t

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Theamountoftimeanactivitycanbedelayedwithoutdelayingthe successoractivitiesstartdateorprojectfinishdateiscalledFloat Anyactivitywouldhave2typesofFloats


Totalfloat:Amountoftimethatparticularactivitycanbedelayedwithout impactingProjectfinishdate
Canbecalculatedas (SuccessoractivityLatestartdate) (CurrentactivityEarlyfinishdate)

Freefloat:Amountoftimethatparticularactivitycanbedelayedwithout impactingallsuccessoractivitiesstartdate
Canbecalculatedas (SuccessoractivityLatestartdate) (CurrentactivityEarlyfinishdate)

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Fr__ Flo[t

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The amountoftimeanactivitycanbedelayedwithoutdelayingthestart dateofanyactivitythatimmediatelyfollowsit.


AnetworkdiagramwithFREEFLOAT Activity Days Dependency

A
A B C 10 5 3 A,B

C B

Float:5Days
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Tot[l Flo[t

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A type of float where the total amount of time an activity requires can be delayed without delaying the project finish date.
Days 10 7 3 5 4 Dependency Start A B,E Start A,D C A 10d S D 5d E 4d B7d Anetworkdiagramwithtotalfloat

Activity A B C D E Finish

C 3d

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Float:5Days

Float:3Days

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Th_ Criti][l P[th M_tho^

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CriticalPathmethodisatheoreticalmethodthatsuggeststimeperiodswithin whichtheactivitiescouldbescheduled.Toachievethisoneshouldfollow belowsteps


Basedondependenciesdrawanetworkdiagram Adjustmentsneedtobemadetoactivitydurationsandotherscheduleconstraintstoproduce networkpathsforagivenschedule Calculatethetheoreticalearlystartandfinishdates,andlatestartandfinishdates,forall activitiesbyperformingaforwardandbackwardpassanalysisthroughtheschedulenetwork ThelongestamongmultiplepathsiscalledCriticalPathandnexttolongestisnearcritical path. Acriticalpathisnormallycharacterizedbyzerototalfloatonthepath.Networkscanhave multiplenearcriticalpaths. Activitiesonacriticalpatharecalledcriticalactivities. Criticalactivitiesnormallywouldhave ZeroFREEFloatandZeroTOTALFloat. Oncethetotalfloatforacriticalpathhasbeencalculatedthenthefreefloatforallactivities canalsobedetermined.

CriticalpathdurationalsorepresentsProjectDuration

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C[l]ul[ting Fr__ [n^ Tot[l Flo[t

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Activity A B C D E F End

Preceding Activity Start Start A C B,C D E, F

Duration 7 4 8 5 5 3 0

IntheExamnetworkdatawithdependenciesand durationswillbeprovided Youneedtodrawthenetworkdiagramand performforwardpassandbackwardpasses,to calculatefloatsonactivities. Severalattributesperactivitywillbeidentifiedin thisprocess.Followingactivitycompartments squarehelpstolistallthoseattributesand calculatefloatsforthoseactivities

ES LS
ES EarlyStart EF EarlyFinish D Duration

D Activity F

EF LF
LS LateStart LF LateFinish F Float

Find: -FreeFloatofB,E -TotalFloatofB,E


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C[l]ul[ting Flo[ts P[g_ 2 Instru]tions

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Followingareinstructionstocalculatetotalfloatandfreefloatforanactivity
1. 2. 3. 4. 5. 6. 7. 8. 9. DrawthenetworkdiagramusingAON/Precedencediagrammingtechnique FillintheDurationinformationforallactivities Findallpossiblepathsandsumupalldurationsonthepath ThepathwiththelongestdurationwillbecalledasCriticalPath PerformaforwardpassonCriticalPathandIdentifyES,EFforallactivitieson thepath PerformabackwardpassonCriticalPathandIdentifyLF,LSforallactivitieson thepath CalculatefloatonCriticalpath.Float=LF EF.NormallyitshouldequaltoZero PerformaforwardpassesonallothernotcriticalpathsandIdentifyES,EFfor allactivitiesonthosepaths PerformbackwardpassonallnotcriticalpathstoidentifyLF,LS.Thereare2 possibilitiestocalculatetheLFonpredecessoractivity
1. LFofPredecessoractivity=LSofsuccessoractivity inthiscaseTotalFloatwillbe calculated 2. LFofPredecessoractivity=ESofsuccessoractivity inthiscaseFreeFloatwillbe calculated
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C[l]ul[ting Flo[ts P[g_ 3 N_twork Di[gr[m

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DrawthenetworkdiagramusingAON/Precedencediagrammingtechnique

S
B E

End

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C[l]ul[ting Flo[ts P[g_ 4 Fin^ing Criti][l P[th

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Fillindurations Findallpossiblepathsandsumupalldurationsonthepath ThepathwiththelongestdurationwillbecalledasCriticalPath

7
A

8
C

5
D

3
F

4
B

5
E

End

Path1 Start A C D F End=23 Longestpath=CriticalPath,thatalsoequalstoProjectDuration Path2 Start B E End=9 Path3 Start A C E End=20
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C[l]ul[ting Flo[ts P[g_ 5 Forw[r^ P[ss on Criti][l P[th


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StartwithZEROasEarlyStartofthefirstactivityonthecriticalpath EarlyStart+Duration=EarlyFinish TransferEarlyFinishofPredecessoractivitytoEarlyStartofSuccessorActivity Repeatabove3stepsforallotheractivitiesonthecriticalpathuptothelastactivity EarlyFinishofthelastactivityshouldbesameascriticalpathduration

7 A

8 C

15

15

5 D

20

20

3 F

23

4 B

5 E

End

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C[l]ul[ting Flo[ts P[g_ 6 B[]kw[r^ P[ss on Criti][l P[th


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StartwithcriticalpathdurationasLateFinishofthelastactivityonthecriticalpath LateFinish Duration=LateStart TransferLateStartofsuccessoractivitytoLateFinishofpredecessoractivity Repeatabove3stepsforallotheractivitiesonthecriticalpathuptothefirstactivity CalculatetheTotalFloat=LF EF=0forallcriticalactivities.Normallycriticalactivitieswould haveZeroTotalFloatandZeroFreeFloat


20 3 F 20 20 0 23 23

7 A

8 C

15

15

5 D

20

15

15

4 B

5 E

End

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C[l]ul[ting Flo[ts P[g_ 7 Forw[r^ p[ss on [ll non Criti][l P[ths


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StartwithZEROasEarlyStartofthefirstactivityonallnoncriticalpaths EarlyStart+Duration=EarlyFinish TransferEarlyFinishofPredecessoractivitytoEarlyStartofSuccessorActivity ConsideralldependenciestodecideEarlyStartofSuccessorActivity Repeatabove4stepsforallnoncriticalpathandreachuptothelastactivities EarlyFinishofthelastactivitiesNEEDNOTtobethesameascriticalpathduration

7 A

8 C

15

15

5 D

20

20

3 F

23

15

15

20

20

23

4 B

15

5 E

20

End

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C[l]ul[ting Flo[ts P[g_ 8


B[]kw[r^ p[ss on [ll non Criti][l P[ths S]_n[rio 1: Tot[l Flo[t

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StartwithcriticalpathdurationasLateFinishforalllastactivitiesonnoncriticalpaths LateFinish Duration=LateStart TransferLateStartofsuccessoractivitytoLateFinishofpredecessoractivity Repeatabove3stepsforallothernoncriticalpathactivitiesuptothefirstactivity CalculatetheTotalFloat=LF EF

7 A

8 C

15

15

5 D

20

20

3 F

23

15

15

20

20

23

4 B

15 18

5 E 3

20 23

End

11

14 18

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C[l]ul[ting Flo[ts P[g_ 9


B[]kw[r^ p[ss on [ll non Criti][l P[ths S]_n[rio 2: Fr__ Flo[t

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TransferEarlyStartofsuccessoractivitytoLateFinishofpredecessoractivity CalculatetheFREEFloat=LF EF

7 A

8 C

15

15

5 D

20

20

3 F

23

15

15

20

20

23

4 B

15 18

5 E 3

20 23

End

11

11 15

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S]h_^ul_ N_twork @n[lysis

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Techniqueusedtocalculatethetheoreticalearlyandlatestartand finishdatesforallprojectactivities. Fourmethods:


CriticalPathMethod(CPM). Criticalchainmethod. Whatifscenario. Resourceleveling.

Example:AmarketingcampaignscheduleNetworkAnalysisInvolves:
Usingsoftwaretocreaterequestforproposals. Launchingcampaign. Estimatingslack. Adjustingactivities.

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Th_ Criti][l Ch[in M_tho^

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Criticalchainisaschedulenetworkanalysistechniquethatconsidersresource limitations.Firstcriticalpathisidentifiedandthenresourceavailabilityisentered onthecriticalpathandtheresourcelimitedscheduleresultisdetermined. Theresourceconstrainedcriticalpathisknownasthecriticalchain.Thecritical chainmethodaddsdurationbuffersthatarenonworkscheduleactivitiesto manageuncertainty Usedto:


Considerresourcelimitations Planandmanagereserves Mitigatepossiblecostandschedulerisks
Task 1.1 Duration 4 Days January 4-8 Ted Task 1.2 Duration 2 Days January 9-11 Bill Task 3 Duration 5 Days January 15-19 Jane

Task 2.3 Duration 3 Days January 16-18 Michael

Task 2.4 Duration 9 Days January 16-26 Jane

Jane is Over Allocated

Aprojectscheduleallowsyoutoconsiderresourcelimitationsandadjusttheschedule
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Th_ Wh[t-If S]_n[rio @n[lysis

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Usedtoconsiderdifferentsituationsthatmightoccurand influencetheschedule. Computesdifferentschedulesbasedonpotentialdelays. Simulatedoutcomescanbeusedinriskresponseplans. Helpsselecttheoptimumplan. Example:Whatifscenarioforplannedmoveofheadquarters. Whatifthecontractorfinisheslate? Whatifkeydecisionmakersareelsewhereduring planning? Whatifaunionstrikeaffectsconstructionworkers?

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R_sour]_ L_v_ling

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Resourcelevelingisaschedulenetworkanalysistechniquetofixresourceover allocation. Objectiveistoensurethatresourcesarenotoverallocatedoroverburdened,and thattherearenotsignificantupsanddownsintheresourceschedule.Over Allocationsarelookedas


Individualresources DemandforEntireProject

Generally,resourcesareleveledintwoways:
Bydelayingthetasks Bysplittingthetaskandpartofitworksinthefuture

Followingarefewothermethodsusedtoresolve overallocations:
Adjustingtheresourcesassignedtoatask. Assigningmoreresourcestoatask. Replacinganoverallocatedresourcewithanunder allocatedoneorremovingaresource. Adjustingorcontouringtheamountofworkassigned toaresource.

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S]h_^ul_ Form[ts
Barchart:
Showsstartandenddates,duration,order. Canshowprecedencerelationships. Canshowpercentagecompletion;actualprogress. Usedtopresentprojectstatustomanagement.

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Abarchart

S]h_^ul_ Form[ts (Cont.)


Milestonechart:
Providessummarylevelviewofprojectsmilestones. Usesiconsorsymbols. Showstheprojectsoverallschedule.

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Amilestonechart

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S]h_^ul_ Compr_ssion

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Schedulecompressionistheconceptthatshortenstheprojectschedule withoutchangingtheprojectscope Twotechniquesareavailable:


Fasttracking:isatechniquetoshortenthedurationbyperformingsequential activitiesisparallel.

Crashing:isatechniquetoshortenthedurationbybringinginadditional resources orapprovingovertime.Crashingonlyworksforactivitieswhere additionalresourceswillshortentheduration. +

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S]h_^ul_ B[s_lin_s

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Themanagementapprovedversionoftheprojectschedule. Drawnfromtheschedulenetworkanalysis. Providesbasisformeasuringandreportingscheduleperformance.

Achartshowingaschedulebaseline
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D_v_loping Cost Estim[t_s [n^ Bu^g_ts

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ProjectCostManagementincludestheprocessesofestimating, budgeting,andcontrollingcosts Inpracticeforsmallerprojects,estimatingandbudgetingactivitiesmaybe combinedinonestep 3Processnamesare


EstimateCosts DetermineBudget ControlCosts

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Proj_]t Cost M[n[g_m_nt

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Cost Management Plan is the plan that determines various aspects of how costs will be incurred, measured and controlled through out the project. Cost Management Plan establishes / includes: Level of Accuracy: Rounding off and contingencies. Units of Measure: Staff hours, staff days, currency etc, Control thresholds: Amount of variance allowed before an action would initiate. Reporting formats. Cost inclusion / exclusion rules. (such as whether direct costs will be included or indirect or both)
*ImportantNote:CostManagementPlaniscreatedasapartofDevelopprojectmanagementplanprocessintheIntegrationManagement.

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Lif_]y]l_ ]osting

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It refers to the concept of looking at the cost of a particular product through out the life of the product vs. just the project cost. Its similar to the concept of total cost of ownership. Example:
Option:01 Build a software Project cost of building the software: 100K Maintaining the software: 5K / year Option:02 Buy off the shelve product Project Cost of buying the software: 75K Project cost of maintaining the software: 35K

Based on the example option:02 is cheaper to buy. However as per the concept of Life cycle costing, total cost of ownership for option1 is significantly lower than other. So Option:01 should be the right choice for the organization.

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7.1 Estim[t_ Costs Pro]_ss

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Overview

EstimateCostsistheprocessofdevelopinganapproximationof themonetaryresourcesneededtocompleteprojectactivities

Inputs
1. 2. 3. 4. 5. Scopebaseline Projectschedule Humanresourceplan Riskregister EEF/OPA 1. 2. 3. 4. 5. 6. 7. 8. 9.

Toolsand Techniques
Expertjudgment Analogousestimating Parametricestimating Bottomupestimating Threepointestimates Reserveanalysis Costofquality Projectmanagement estimatingsoftware Vendorbidanalysis 1. 2. 3.

Outputs
Activitycostestimates Basisofestimates Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 169

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Project Planning

Common Estim[t_ Typ_s

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TypeorLevelofAccuracy

DescriptionorAccuracyRating Developedwithoutbasisofdetaileddataandoftenbasedonveryhighlevel historicaldata,expertjudgment,oracostingmodel.Accuracy: 50percentto+50percent. Oftenusedforappropriationpurposes.Accuracy:10to+10percent.

RoughOrderofMagnitude (ROM) Budgetary

Definitiveestimate(orcontrol DevelopedbyestimatingthecostforeachworkpackageintheWBS. ordetailed) Accuracy: 5percentto+5percent. Phasedestimate(orrolling waveormovingwindow) AllowstheuseofROMorapproximateestimatesforsomelaterpartsofthe work.Accuracy: 5percentto 15percent.

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@n[logous & Bottom-Up


Analogous BottomUp

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ItcanbeDefined asanestimateofdurationbased Inthismethoddurationofeachpackageis onhistoricaldataofasimilar(analog)item.Itis estimatedand aggregatedtotheupperlevel. alsoreferredtoastopdownmethod. ThetotalaggregateddurationvaluesisProject Schedule. Advantages: Itreliesonprevious experiencesandlessons learned. Itsacosteffectivewayofestimation. Overallprojectcostswillbecapped. Limitations: Itrequiressignificantpastexperience. Itshaslimitedapplicationforprojectsthat havesignificantuncertainty. Advantages: Itsmore detailedasallactivitiesare estimated. Itsmoreaccurate. Gainsbuyinfromteammembersasthey areinvolvedintheestimationprocess. Limitations: It requiresalotoftimeandefforttoestimate. Requiresthattheteamhasknowledgeofall activities. Itresultsininconsistencyasvariousteam membersmayusedifferentpadding assumptions.

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Project Planning

P[r[m_tri] & Thr__ point

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Parametric
Aparametricdurationestimateisonethatuses EstimatingRelationships(ERs)andassociated mathematicalalgorithms(orlogic)toestablish projectdurationestimates. Advantages: Itisbasedonamathematicalalgorithmand can beveryaccurate Withestablishedprocessandexpertise, estimationwouldbeloteasier Limitations: Qualityparametersarequiteimportant.Little variationsinparametersmightresultinto largerestimationvariations

ThreePoint
Theaccuracyofsinglepointactivityduration estimatescanbeimprovedbyconsidering estimationuncertaintyandrisk. Advantages: Based onageoldProgramEvaluation ReviewTechnique(PERT)

Limitations: .Forsmallervariancetheendresultwillbe closer tomostlikelyvalue.

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7.2 D_t_rmin_ Bu^g_t

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Overview

Thisprocessofaggregatingtheestimatedcostsofindividual activitiesorworkpackagestoestablishanauthorizedcost baseline.Thisbaselineincludesallauthorizedbudgets,but excludesmanagementreserves.

Inputs
1. 2. 3. 4. 5. 6. 7. Activitycostestimates Basisofestimates Scopebaseline Projectschedule Resourcecalendars Contracts Organizationalprocess assets 1. 2. 3. 4. 5.

Toolsand Techniques
Costaggregation Reserveanalysis Expertjudgment Historicalrelationships Fundinglimit reconciliation 1. 2. 3.

Outputs
Costperformance baseline Projectfunding requirements Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 175

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Project Planning

Fun^ing Limit R_]on]ili[tion

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Amethodofadjustingspending,scheduling,and resourceallocationinordertobringexpenditures intoalignmentwithbudgetaryconstraints. Example:Acustomerwantstospreadprojectcosts overtwoquarters. $250,000duringQ1. $350,000duringQ2.


Q1: $250,000 Q2: $350,000

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Cost @ggr_g[tion

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ProjectCostBaseline ProjectCosts

+ +

ManagementReserve ContingencyReserve ProjectCosts

= =

ProjectBudget ProjectCostBaseline

ControlAccountsCosts

ControlAccountsCosts

WorkpackageCosts ActivityCosts ActivityCosts ActivityCosts

WorkpackageCosts ActivityCosts ActivityCosts ActivityCosts

WorkpackageCosts ActivityCosts ActivityCosts ActivityCosts

WorkpackageCosts ActivityCosts ActivityCosts ActivityCosts

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Project Planning

Cost B[s_lin_s

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Atimephasedbudgetmonitorsandmeasurescost performancethroughouttheprojectlifecycle. Developedbyaddingtheestimatedcostsofproject componentsbyperiod.

A generic cost baseline shown as an S-curve


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Compl_t_^ S-Curv_ Gr[ph

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Summationoftheapproved budgetsisdisplayedasSCurve
40 30 20 10 0 3

BellCurveofCosts
Costsin'000 35 35

20 10 10

20 10 5 2

Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8 Wk9 Wk10

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Project Planning

Pl[nning Proj_]t Work

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IdentifytheElementsofaProjectManagementPlan DevelopProjectManagementPlan
Develop3Baselines(PlanningPart1) ScopeBaseline(Process5.3) ScheduleBaseline(Process6.5) CostBaseline(Process7.2) Atthispointall3baselinesaredeveloped.NowSubsidiarymanagementplansshouldbedeveloped. Develop13SubsidiaryManagementPlans(PlanningPart2) Scope,Cost,TimeManagementPlans(Process4.2) Configuration,ChangeManagementPlans(Process4.2) RequirementsManagementPlan(Process5.1) QualityManagementPlan(Process8.1) HRManagementPlan,StaffingManagementPlan(Process9.1) CommunicationManagementPlan(Process10.2) RiskManagementPlan(Process11.1) DevelopRiskResponses(Process11.2 11.5) ProcurementManagementPlan(Process12.1)

ReviewCertSchoolPoster#1;Identify20planningprocesses;Identifyprocessesthatdevelopbaselinesand identifyprocessesthatdevelopmanagementplans

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Qu[lity

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Totalityoffeaturesandcharacteristicsofaproductorservicesthatbear onitsabilitytosatisfystatedorimpliedneeds. Otherdefinition:Thedegreetowhichasetofinherentcharacteristics fulfillrequirements Otherdefinition:Qualityisconformancetorequirementsorspecifications QualityisprovidingwhatCUSTOMERwants QualityandGrade


FulfillingcustomerrequirementsastheywishisQuality Gradeissamefunctionaluse,butdifferenttechnicalcharacteristics

PrecisionandAccuracy
Repeatedvaluesarenotscatteredisprecision Closertothetargetvalueisaccuracy

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Project Planning

Thr__ Pro]_ss of Qu[lity M[n[g_m_nt

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8.1PlanQuality

QM Management Planning QA Audit QC Check (Inspection)

8.2PerformQualityAssurance

8.3PerformQualityControl

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8.1 Pl[n Qu[lity

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Overview

Thisprocessofidentifyingqualityrequirementsand/orstandards fortheprojectandproduct,anddocumentinghowtheproject willdemonstratecompliance

Inputs
1. 2. 3. 4. 5. 6. Scopebaseline Stakeholderregister Costperformance baseline Schedulebaseline Riskregister EEF/OPA
1. 2. 3. 4. 5. 6. 7. 8. 9.

Toolsand Techniques
Costbenefitanalysis Costofquality Controlcharts Benchmarking Designofexperiments Statisticalsampling Flowcharting Proprietaryquality management methodologies Additionalquality planningtools

Outputs
1. 2. 3. 4. 5. Qualitymanagement plan Qualitymetrics Qualitychecklists Processimprovement plan Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 192

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Project Planning

Qu[lity M[n[g_m_nt Import[n]_

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FollowingconceptsshowstheimportanceoftheQuality PreventionoverInspection
TheconceptisAuditthesystemandidentifytheproblemstoPREVENTthem beforeinspectionfiguresoutthedefects.

CustomerSatisfaction
Qualityproductisdevelopedforcustomersatisfaction

Continuousimprovement
Qualitycantbeachievedovernight.Ithastobeachievedovertheperiodonestep atatime.KAIZENisthewordstatesthatcontinuousimprovementismuchbetter thansuddenchangeorgrowth.KAI Change,ZEN Good.

ManagementResponsibility
ManagementneedstoparticipateandrecognizetherequirementsofQualityinthe project.

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Tot[l Qu[lity M[n[g_m_nt (TQM)

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Anapproachtoimprovebusinessresultsthroughan emphasisoncustomersatisfaction,employee development,andprocessesratherthanfunctions. Differentqualitytheoristswhoimplementedtotal qualitymanagementare:


W.EdwardsDeming JosephJuran PhilipCrosby Genichi Taguchi BillSmith

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Project Planning

St[n^[r^s [n^ R_gul[tions


Standards:

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Nonmandatoryguidelinesorcharacteristicsthathave beenapprovedbyarecognizedbodyofexpertssuchas theInternationalOrganizationforStandards(ISO).

Regulations:
Compliancemandatorycharacteristicsforspecific products,services,orprocesses. Example:2007U.S.recalloftoyswithleadbasedpaint.

Newrulesandregulations:
Stricterfederalregulations,withcriminalpenalties. U.S.toyretailersforcedsupplierstomeettougher standardsthanrequiredbythegovernment.
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Cost of Qu[lity

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Thetotalcostofeffortneededtoachieveanacceptablelevelofqualityinthe projectsproductorservice.

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Project Planning

Ch_]klists

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Ajobaidthatpromptsemployeestoperformactivitiesaccordingtoaconsistent qualitystandard
Obtainaprintoutoftheimagespecificationsfromthegraphicsdatabase.Usethis checklisttoensurethattheimagesarereadytobehandedofftotheprogrammer. # 1 2 3 4 5 6 7 8 Item Doestheimagematchthedescriptioninthedatabase? Doesthestylemeetthespecificationsforthecourseorlesson? Doesthequalityoftheimagemeetthestandardssetforthecourse? Istheimagesizecorrect? Isthecorrectborderontheimage? Istheimageinthecorrectpalette? Istheopacitycorrect(transparentoropaque)? Isthebitdepthcorrect? Y/N

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Achecklistforprintingimage

Flow]h[rt

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Adiagramthatshowstherelationshipsof variouselementsinasystemorprocess. Twoflowchartingtechniques:


Causeandeffectdiagram. Processorsystemflowchart.

Helpsidentifypotentialqualityproblemsand possibleeffectsoftheproblems.

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Project Planning

Pro]_ss Flow]h[rt

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Showsthesequenceofeventsandflowofinputsandoutputsbetweenelements inaprocessorsystem. Hasadefinitebeginningandend.

Asampleprocessflowchart

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C[us_-[n^-Eff_]t Di[gr[m

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A diagram that shows the relationships of various elements in a system or process.

Acauseandeffectdiagram

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Project Planning

Control Ch[rts

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Agraphusedtoanalyzeandcommunicatethevariabilityofaprocessor projectactivityovertime. Showsthepotentialcapabilityoftheprocess. Suggeststherangeofvariabilityintheprocess.


IndicatesInstability UCL UCL

LCL
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LCL

Variabilityabovetheuppercontrollimit(UCL)

B_n]hm[rking

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A method of addressing the evaluation of a groups business or project practices in comparison to those of other groups. Used to identify best practices in order to meet or exceed them. Example: Benchmarking the espresso-based beverages based on the performance of Seattle-based Starbucks Corp.

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D_sign of Exp_rim_nts (DOE)

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Atechniquetosystematicallyidentifyvarying levelsofindependentvariables. Example:Creatinganewstyleofjarina canneryCreationinvolves:


Determiningtheoptimumtorquesize. Testingtorquewithspindlespeedandconveyor speed. Determiningadjustmentstothesesettings.
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M_tri]

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Ametricisaverifiablemeasurestatedineitherquantitativeor qualitativeterms.
95percentinventoryaccuracy asevaluatedbyourcustomers,weareprovidingaboveaverage service

Ametricisaverifiablemeasurethat
capturesperformanceintermsofhowsomethingisbeingdone relativetoastandard, allowsandencouragescomparison, supportsbusinessstrategy.

Qualitymetricdatamaybeusedto:
spottrendsinperformance. comparealternatives. predictperformance.

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Project Planning

Pro]_ss Improv_m_nt Pl[nning

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Theprocessofanalyzingandidentifyingareasofimprovementin projectprocesses. Enumeratinganactionplanbasedontheprojectgoalsand identifiedissues. Involves:


Describingoperationaltheoriesandprojectrolesandresponsibilities. Identifyinglongandshorttermgoals. Describingprocessimprovementobjectivesandactivities. Identifyingrisksandresourcerequirements. Determiningprocessimprovementactivities. Creatingaprocessimprovementplan. Receivingapprovalfromstakeholdersandseniormanagers. Executingtheprocessimprovementplan.

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Qu[lity M[n[g_m_nt Pl[n

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Describefortheprojectstakeholdersthe teamsapproachtoimplementthequality policy. Outlinehowqualitycontrolandquality assurancewillbeperformed.

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9.1 D_v_lop HR Pl[n

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Overview

DevelopHumanResourcePlanistheprocessofidentifyingand documentingprojectroles,responsibilities,andrequiredskills, reportingrelationships,andcreatingastaffingmanagementplan

Inputs
1. 2. Activityresource requirements EEF/OPA 1. 2. 3.

Toolsand Techniques
Organizationchartsand positiondescriptions Networking Organizationaltheory 1.

Outputs
Humanresourceplan

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 192

Org[niz[tion[l Stru]tur_ Typ_s

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Dictates how the various groups and individuals within an organization interrelate. Types:
Item Functionalorganization Y/N Eachdepartmentcarriesoutspecificactivities. Reportingishierarchical. PMsauthorityislow,relativetofunctionalmanager. PMandcoreprojectteamoperateasaseparateunit. PMhassignificantauthorityandindependence. Individualsreportupwardsandalsohorizontally.

Projectizedorganization Matrixorganization

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Project Planning

Org[niz[tion[l Ch[rts
OrganizationalChartscanberepresentedin3formats
Hierarchical OBS,RBS, Matrix ResourceAssignmentMatrix(Ex:RACI) Textoriented

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R@CI Ch[rt

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A chart that links key project stakeholders to specific project deliverables or activities by assigning responsibility to an individual stakeholder for each element of work. RACI Chart is an example of RAM Chart

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HR Pl[n

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Thehumanresourceplan,apartoftheproject managementplan,providesguidanceonhow projecthumanresourcesshouldbedefined, staffed,managed,controlled,andeventually released.Componentsinclude:


Roles Responsibilities Authority Competency ProjectOrganizationalCharts StaffingManagementPlan

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St[ffing M[n[g_m_nt Pl[n

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Thestaffingmanagementplan,apartofthehumanresourcesplan, describeswhenandhowhumanresourcerequirementswillbemet. Forecastwhattypesofstaffwillworkontheproject,whentheywillbe needed,howtheywillberecruitedontotheproject,andwhentheywill bereleasedfromtheproject. StaffingManagementPlanComponents


Staffacquisition ResourceCalendars StaffReleaseplan Trainingneeds Recognitionandrewards Compliance Safety

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10.2 Pl[n Communi][tions

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Overview

PlanCommunicationsistheprocessofdeterminingtheproject stakeholderinformationneedsanddefiningacommunication approach

Inputs
1. 2. 3. 4. Stakeholderregister Stakeholder managementstrategy Enterprise environmentalfactors Organizationalprocess assets 1. 2. 3. 4.

Toolsand Techniques
Communication requirementsanalysis Communication technology Communicationmodels Communication methods 1. 2.

Outputs
Communications managementplan Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 252

Communi][tions R_quir_m_nts @n[lysis

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Theanalysisofthecommunicationrequirementsdeterminesthe informationneedsoftheprojectstakeholders.Theserequirementsare definedbycombiningthetypeandformatofinformationneededwithan analysisofthevalueofthatinformation Aninvestigationthatleadstoacleararticulationofthestakeholders' communicationsneeds. Helpsprojectmanagermakeeffectivechoicesregardingthetechnologies toberecommendedinthecommunicationsmanagementplan. Example:Surveyingstakeholdersregardingtheircommunicationsneeds. Questionsaskedmayinclude:
Howoftenwouldyouliketoreceivestatusreports? Howwouldyouprefertoreceiveinformation?Byphone,byemail,orinface tofacemeetings? Whatlevelofdetailareyouexpectingtosee? Whatkindsofquestionsdoyouexpecttohaveanswered?

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Eff_]tiv_ [n^ Effi]i_nt Communi][tion

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Identifystakeholderinformationneedsand planforcommunicationapproach Improperplanningwillleadintodelayin communicationorsensitiveinformationto wrongaudience


Effectivecommunicationmeans informationisprovidedinrightformat, atrighttimeandwithrightimpact Efficientcommunicationmeans providingonlyrequiredinformation

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Pot_nti[l Ch[nn_ls

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n(n-1) 2

n = number of people

2(1)/2 = 1 Channel

4(3)/2 = 6 Channels

*As the number of people involved in the communication increases the number of communication channels increases geometrically.
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Communi][tion Mo^_ls

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Abasicmodelofcommunicationdemonstrateshowinformationissentand receivedbetweentwoparties,definedasthesenderandthereceiver.Thekey componentsofthemodelinclude:


Encode:Totranslatethoughtsorideasintoalanguagethatisunderstoodbyothers MessageandFeedbackmessage:Theoutputofencoding Medium:Themethodusedtoconveythemessage Noise:Anythingthatinterfereswiththetransmissionandunderstandingofthemessage Decode:Totranslatethemessagebackintomeaningfulthoughtsorideas

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 255

Communi][tion M_tho^s

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InteractiveCommunication
Between2ormorepartied,multidirectional

PushCommunication
Senttospecificrecipients

PullCommunication
Verylargeinformationforverylargeaudience. Intranetwebsiteisanexample

Thetechnologiesusedforcommunications planning:websites,email,instantmessaging, phones,videoconferencing.


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Communi][tions M[n[g_m_nt Pl[n

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Describestheprojectteamsapproachtocommunicateprojectinformation.The communicationsmanagementplancanbeformalorinformal,highlydetailedor broadlyframed,andbasedontheneedsoftheproject Thecommunicationsmanagementplancanalsoincludeguidelinesandtemplates forprojectstatusmeetings,projectteammeetings,emeetings,andemail,a projectwebsiteandprojectmanagementsoftware. Thecommunicationsmanagementplanusuallyprovides:


Stakeholdercommunicationrequirements Informationtobecommunicated,includinglanguage,format,content,andlevelofdetail Timeframeandfrequencyforthedistributionofrequiredinformation Personresponsibleforcommunicatingtheinformation.Personresponsibleforauthorizing releaseofconfidentialinformation Personorgroupswhowillreceivetheinformation; Methodsortechnologiesusedtoconveytheinformation,suchasmemos,email,and/or pressreleases; Escalationprocessidentifyingtimeframesandthemanagementchain(names)forescalation ofissuesthatcannotberesolvedatalowerstafflevel Flowchartsoftheinformationflowintheproject,workflowswithpossiblesequenceof authorization,listofreports,andmeetingplans,etc.

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6 pro]_ss_s of Risk M[n[g_m_nt

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PlanRisk Management

TheobjectivesofProjectRiskManagementaretoincreasetheprobabilityandimpactof positiveevents,anddecreasetheprobabilityandimpactofnegativeeventsintheproject

IdentifyRisks

Perform Qualitative RiskAnalysis

Perform Quantitative RiskAnalysis

PlanRisk Responses

MonitorandControlRisks

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11.1 Pl[n Risk M[n[g_m_nt

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Overview

PlanRiskManagementistheprocessofdefininghowtoconduct riskmanagementactivitiesforaproject.Carefulandexplicit planningenhancestheprobabilityofsuccessforthefiveother riskmanagementprocesses.

Inputs
1. 2. 3. 4. 5. 6. Projectscope statement Costmanagementplan Schedulemanagement plan Communications managementplan Enterprise environmentalfactors Organizationalprocess assets 1.

Toolsand Techniques
Planningmeetingsand analysis 1.

Outputs
Riskmanagementplan

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Risk M[n[g_m_nt Pl[n

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Methodology Rolesandresponsibilities Budgeting Timing Riskcategories Definitionsofriskprobabilityandimpact Probabilityandimpactmatrix Reportingformats Tracking

RMP

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Project Planning

Risk Br_[k^own Stru]tur_

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TheRiskBreakdownStructure(RBS)isahierarchicallyorganizedrepresentationof theidentifiedprojectrisksarrangedbyriskcategoryandsubcategory RBShelpsprojectteamtoidentifyRiskandprovidedetailsataconsistentlevel AllowsProjectteamtoprovidehighlevelresponsestrategiesatcategorylevel

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Risk Imp[]t M[trix

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Definitionsshouldbeprovidedtodifferentlevelsoftherisks probabilitiesandimpactssothatQualitativeRiskAnalysiscanbe performedunambiguouslyandwithoutabias.

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Project Planning

11.2 I^_ntify Risks

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Overview

IdentifyRisksistheprocessofdeterminingwhichrisksmay affecttheprojectanddocumentingtheircharacteristics.Identify Risksisaniterativeprocessbecausenewrisksmayevolveor becomeknownastheprojectprogressesthroughitslifecycle

Inputs
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Riskmanagementplan Activitycostestimates Activitydurationestimates Scopebaseline Stakeholderregister Costmanagementplan Schedulemanagement plan Qualitymanagementplan Projectdocuments Enterpriseenvironmental factors Organizationalprocess assets

Toolsand Techniques
1. 2. 3. 4. 5. 6. 7. Documentationreviews Informationgathering techniques Checklistanalysis Assumptionsanalysis Diagramming techniques SWOTanalysis Expertjudgment 1.

Outputs
Riskregister

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Inform[tion-G[th_ring T_]hniqu_s

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Technique Brainstorming Delphitechnique Interviewing Rootcauseanalysis

Description Usedtoidentifyoverallprojectrisksormayfocusinontherisks withinaparticularprojectsegmentorworkpackage. Generatesaconsensusamongprojectriskexpertswho anonymouslysubmittheirrisklisttoafacilitator. Usedtogetinformationfrompeoplewithawideexperience acrossmanyprojects. Usedtoidentifyproblems,discovertherootcause,anddevelop correctiveactions.

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Project Planning

SWOT @n[lysis Prim[ry F[]tors

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Thetechniquestartswithidentificationofstrengthsandweaknessesoftheorganization,focusingoneithertheproject organizationorthewiderbusiness SWOTanalysisthenidentifiesanyopportunitiesfortheprojectthatarisefromorganizationalstrengths,andanythreats arisingfromorganizationalweaknesses. SWOTanalysisalsoexaminesthedegreetowhichorganizationalstrengthsoffsetthreatsandopportunitiesthatmayserve toovercomeweaknesses

Strengths
Advantages Experience,knowledge Uniquecaracteristics Resources Geographicaladvantage,location Competence,capabilities Quality,reputation

Weaknesses
Disadvantages Gapinexperience,knowledge Financialaspects Reliabilityandtrust Lossofkeystaff Geographicalfactors

Opportunities
Strategicalliances,partnerships Productdevelopment Import,export Innovationandtechnology development

Threats
Lossafalliancesandpartners Priceinflation/deflation Strongcompetition Competitorsnewproducts Competitorsinnovation

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Risk R_gist_rs

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Identifiesandcategorizesrisks,potentialriskresponses,triggers. Updatedasriskcategorieschange. Riskresponsesfromtheinitialriskregisterareusedintheriskresponse planningprocess. Updatedriskregisterisprovidedtotheprojectteammembers.

Asampleriskregister
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Compon_nts of Risk R_gist_rs

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Technique Relative ranking or priority list of project risks Risks grouped by categories Causes of risk or project areas requiring particular attention Lists of risks requiring response in the near term List of risks for additional analysis and response Watch list of low-priority risks Trends in qualitative risk analysis results

Description The overall risk ranking for a project can be determined by adding the individual risk factor scores and dividing by the number of risks. Placing risks in categories may reveal areas of risk concentration. Identifying specific frequently occurring causes in risk occurrence enables better risk response planning. Some risks may require action in the near term. These can be grouped separately from the risks that will be addressed at a later date. Risks that may require additional analysis and management typically include risks classified as high or moderate. Risks that are not urgent and do not require near-term action can be documented on a watch list for monitoring. As qualitative risk analysis is repeated, a trend may result that can make risk response or further analysis more or less urgent.

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11.3 P_rform Qu[lit[tiv_ Risk @n[lysis

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Overview

PerformQualitativeRiskAnalysisistheprocessofprioritizing risksforfurtheranalysisoractionbyassessingandcombining theirprobabilityofoccurrenceandimpact

Inputs
1. 2. 3. 4. Riskregister Riskmanagementplan Projectscope statement Organizationalprocess assets 1. 2. 3. 4. 5. 6.

Toolsand Techniques
Riskprobabilityand impactassessment Probabilityandimpact matrix Riskdataquality assessment Riskcategorization Riskurgency assessment Expertjudgment 1.

Outputs
Riskregisterupdates

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Qu[lit[tiv_ Risk @n[lysis

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Atechniquetodeterminetheprobabilityofoccurrenceandthe impactofidentifiedrisk. Determinetheriskexposureoftheprojectbymultiplyingthe probabilityandimpact. RiskDataQualityAssessment Evaluationoftheusefulnessofdataconcerningrisk. Examiningdataincludes:


Amountofdataavailable. Qualityofdataavailable. Sourceofinformation. Legitimacyofdata. Dependabilityofdata.

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Pro\[\ility [n^ Imp[]t Risk R[ting M[trix


Eachofthesenumbersarecalculatedby multiplyingProbabilityandImpactvalues. 0.09=0.9*0.1

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0.9 0.8 0.7 0.6

0.09 0.18 0.27 0.36 0.45 0.54 0.63 0.72 0.81 0.81 0.72 0.63 0.54 0.45 0.36 0.27 0.18 0.09 0.08 0.16 0.24 0.32 0.4 0.48 0.56 0.64 0.72 0.72 0.64 0.56 0.48 0.4 0.32 0.24 0.16 0.08

0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1

0.07 0.14 0.21 0.28 0.35 0.42 0.49 0.56 0.63 0.63 0.56 0.49 0.42 0.35 0.28 0.21 0.14 0.07 0.06 0.12 0.18 0.24 0.05 0.1 0.15 0.2 0.3 0.25 0.2 0.36 0.42 0.48 0.54 0.54 0.48 0.42 0.36 0.3 0.35 0.4 0.45 0.45 0.4 0.35 0.3 0.3 0.25 0.2 0.24 0.18 0.12 0.06 0.2 0.15 0.1 0.05

Probability

0.5 0.4 0.3 0.2 0.1

Legend: Red:CloseMonitor Amber:Monitor Green:Watchlists White:Skip Blue:SCALE

0.04 0.08 0.12 0.16

0.24 0.28 0.32 0.36 0.36 0.32 0.28 0.24

0.16 0.12 0.08 0.04

0.03 0.06 0.09 0.12 0.15 0.18 0.21 0.24 0.27 0.27 0.24 0.21 0.18 0.15 0.12 0.09 0.06 0.03 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02

0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.09 0.08 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1

Threats

Opportunities

Impact
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Project Planning

Risk S]or_

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IdentifyRisksprocesslistsallpossiblerisks,thatincludeHighImpactrisks,Low Impactrisks,HighProbabilityrisksandLowProbabilityrisks QualitativeRiskAnalysisprocessranksthoserisksbasedonProbabilityandImpact RiskRatingMatrixdefined. RiskScore=Probability*Impact Risk Risk1 Risk2 Risk3 Risk4 Probability High(Ex:0.8) Low(Ex:0.4) High(Ex:0.7) Low(Ex:0.4) Impact High(Ex:0.8) High(Ex:0.8) Low(Ex:0.5) Low(Ex:0.3) RiskScore Red=0.64 Amber=3.2 Amber=3.5 Green/White=1.2 Rank 1 3 2 4

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Risk R_gist_r Up^[t_s \y Qu[lit[tiv_ Risk @n[lysis

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Relativerankingorprioritylistofprojectrisks:Usingcombinationsofeachrisksprobabilityofoccurringandthe impactonobjectivesifitweretooccur,riskswillbeprioritizedrelativetoeachotherbysortingthemintogroups ofhighrisk,moderaterisk,andlowrisk. Causesofriskorprojectareasrequiringparticularattentionareidentified Risksrequiringresponseintheneartermareidentified RisksforadditionalanalysisandresponseareidentifiedandQuantitativeanalysiswillbeperformed Watchlistsoflowpriorityrisksareprepared Astheanalysisisrepeated,atrendforparticularrisksmaybecomeapparent,andcanmakeriskresponseor furtheranalysismoreorlessurgent/important. Largelistofidentifiedrisksarecategorized,andfiltered

Willbeanalyzed quantitatively Scored& Ranked

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11.4 P_rform Qu[ntit[tiv_ Risk @n[lysis

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Overview

PerformQuantitativeRiskAnalysisistheprocessofnumerically analyzingtheeffectofidentifiedriskson overallprojectobjectives

Inputs
1. 2. 3. 4. 5. Riskregister Riskmanagementplan Costmanagementplan Schedulemanagement plan Organizationalprocess assets 1.

Toolsand Techniques
Datagatheringand representation techniques Quantitativerisk analysisandmodeling techniques Expertjudgment 1.

Outputs
Riskregisterupdates

2.

3.

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Qu[ntit[tiv_ Risk @n[lysis


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PerformQuantitativeRiskAnalysisisperformedonrisksthathavebeenprioritizedbythePerform QualitativeRiskAnalysisprocessaspotentiallyandsubstantiallyimpactingtheprojectscompeting demands. Analysisisusedtoassignanumericalratingtothoserisksindividuallyortoevaluatetheaggregate effectofallrisksaffectingtheproject.Italsopresentsaquantitativeapproachtomakingdecisions inthepresenceofuncertainty QuantitativeRiskAnalysisisperformedseveraltimesevenafterRiskresponsesareprovidedoron regularintervalsofmonitorandcontrollingtomeasuretheoverallprojectRiskandseeifitis reducedornot. DataGatheringandRepresentationTechniqueslikeInterviewingandProbabilitydistributionare usedtorepresenttheuncertaintynumerically
Interviewinghelptoprovide3pointestimates Discretedistributionscanbeusedtorepresentrisksindecisiontrees(Obliviousvaluescanbepredicted) QuantitativeRiskanalysisdatarepresentedinContinuousdistributiondepictedasshapesofBeta DistributionorTriangulardistribution.Inthesechartsthehorizontal(X)axesrepresentpossiblevaluesof timeorcostandthevertical(Y)axesrepresentrelativelikelihood.

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Qu[ntit[tiv_ @n[lysis Mo^_ling t_]hniqu_s

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Commonlyusedmodelingtechniquesincludebotheventorientedandproject orientedanalysisapproachesincluding:
Method Sensitivity analysis Expected Monetary Value (EMV) analysis Decision tree analysis Modeling and simulation Description Places a value on the effect of changing a single variable within a project by analyzing that effect on the project plan. Assesses the average outcome of both known and unknown scenarios. Factors both probability and impact for each variable, indicating the decision providing the greatest expected value when all uncertain implications and subsequent decisions are quantified. Uses models that calculate potential impact of events on the project, based on random input values.

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Qu[ntit[tiv_ Risk @n[lysis Up^[t_ Compon_nts

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Component Probabilistic analysis of the project Probability of achieving the cost and time objectives Prioritized list of quantified risks Trends in quantitative risk analysis results

Description Once risks are qualitatively and quantitatively analyzed, the project team should be able to forecast the possible completion dates and costs and provide a level of confidence for each. Using quantitative risk analysis, the project team can estimate the likelihood of achieving the project objectives under the current plan and with the current knowledge of the project risks. Identified risks are prioritized according to the threat they pose or the opportunity they present to the project. This prioritized list includes a measure of the impact of each identified risk. Repeating the quantitative risk analysis allows the project's risk management team to analyze the trends and make adjustments as necessary.

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Project Planning

D_]ision Tr__

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Simul[tions

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Usescomputermodelsandestimatesofrisk. Translatesuncertaintiesintopotentialimpact. Involvescalculatingmultipleprojectdurations usingvaryingsetsofassumptions. Example:Theprojectteamforthemultimedia campaigndecideswhichprintingcontractor touseandchoosesbetweentwovendors.


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Mont_ C[rlo @n[lysis

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Optimistic,mostlikely,andpessimisticestimates. Simulatesvariousoutcomes. Predictsarangeofpossibleresults. Usedtopredictlikelyoutcomeforschedulesandcosts. Sophisticatedsoftwareapplications. Effectivewithlargeinputsofnumbers. Effectivewhenpredictingbusinessrisk.

Example:MonteCarloanalysisforaprojectthathas threetaskswithinexperiencedresources.
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Risk R_gist_r Up^[t_s \y Qu[ntit[tiv_ Risk @n[lysis


QuantitativeRiskAnalysisoutputexpressedasacumulativedistributionandprovides theunderstandingonhowmuchcostandtimecontingencyreservesareneededto bringtheriskofoverrunningstated projectobjectivestoalevelacceptabletothe organization. Forinstance,thecumulativecharthereshowsthattheprojectisonly12%likelytomeet the$41millionestimate.Tohave75%confidenceleveltheprojectoverallbudget shouldbe$50million.Thatis22%ofcontingencyreserve.((5041)/41)*100=22% QuantitativeRiskAnalysismeasuresthecontingencyreserveasExpectedMonitory ValueamultipleofProbabilityandprojectedcostimpact. EMV=Probability*$$Impact. Largelistofidentifiedrisksarecategorized,andfilteredbyQualitativeAnalysis.Thelist isfurtherfilteredbyQuantitativeRiskAnalysis.ContingencyReservesforindividualrisk itemsarecalculatedfortopriskitems.BasedonCumulativeChartandorganizationrisk toleranceoverallProjectContingencyreserveiscalculated.

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Scored& Rankedby Qualitative Analysis

Contingency Reservesare Identifiedby Quantitative Analysis

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11.5 Pl[n Risk R_spons_s

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Overview

PlanRiskResponsesistheprocessofdevelopingoptionsand actionstoenhanceopportunitiesandtoreducethreatsto projectobjectives

Inputs
1. 2. Riskregister Riskmanagementplan 1. 2. 3. 4.

Toolsand Techniques
Strategiesfornegative risksorthreats Strategiesforpositive risksoropportunities Contingentresponse strategies Expertjudgment 1. 2. 3. 4.

Outputs
Riskregisterupdates Riskrelatedcontract decisions Projectmanagement planupdates Projectdocument updates

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Risk Str[t_gi_s

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Negative Risks (Threats)

Strategy Risk avoidance Risk transference Risk mitigation Risk acceptance

Description Involves changing the project plan to prevent a potentially detrimental risk condition or event from happening. Shifts the impact of a risk event and ownership of the risk response to a third party. Attempts to reduce the probability or impact of a potential risk event to an acceptable level. Involves accepting that a risk exists. The acceptance may be passive or active.

Strategy

Description Often used when a project team wants to make sure that a positive risk is fully realized. Entails partnering up with another party in an effort to give your team the best chance of seizing the opportunity. Attempts to increase the probability that an opportunity will occur. Involves accepting the risk and actively responding to it as it comes, but not through pursuit.

Positive Risks (Opportunity)

Risk exploitation Risk sharing Risk enhancement Risk acceptance

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N_g[tiv_ Risk R_spons_ Ex[mpl_s

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Avoidance
Compatibilityissuesbetweentwointerfacesistherisk. ChangingthedesignisAvoidancestrategy Changethetaskflowtoremoveataskfromthecriticalpath

Mitigation
Compatibilityissuesbetweentwointerfacesistherisk. Developingdetaileddesignplansorallocatingmoretimeto resolvethecompatibilityissues Addbufferstothecriticalpathtoreducetherisk

Transference
Subcontracttheworktosupplierswithdemonstrated expertise
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Positiv_ Risk R_spons_ Ex[mpl_s

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Exploit(Utilization)Example:
ProjectEarlyfinishopportunityisidentified.Makingsureandplantoutilize theopportunity.Oraddingadditionalresourcesmakesurethatthisriskitem occurs

SharingExamples
Vendoridentifiedtosecurealargeorder.Vendorpartneringwithanothersub vendorstofulfilltheneeds

Enhancing
AnAirlinecompanyenhancesitsopportunitiesbyAddingadditionalflights duringholidayseason

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Conting_n]y & F[ll\[]k pl[ns

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Contingencyplan
A contingencyplan isaplandevisedforaspecificsituationwhen thingscouldgowrong.Duringtimesofcrisis,contingencyplansare oftendevelopedtoexploreandprepareforanyeventuality. Contingentresponsestrategy

Fallbackplan
Somethingtowhichonecanresortorretreat. Whenthecontingencyplanforariskisnotfullyeffective,teamshould implementfallbackplan.

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R_si^u[l & S_]on^[ry Risks

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Residual
Risksthatremainafterapplyingriskresponse strategieshavebeenimplemented Risksthatarenotworthdealingwithupfrontcosts andtime

Secondary
Newrisksthatemergeasaresultofapplyingrisk responsestrategies. Forexample:FeverscausedbyFluvaccines
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Project Planning

4 Pro]ur_m_nt Pro]_ss_s

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Planning

Execution

Monitor&Control

Closing

Plan Procurement
MakeorBuy Decision Procurement ManagementPlan ProcurementDocs

Conduct Procurement
SearchVendors Listvendors Selectavendor

Administer Procurement

Close Procurement

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Buy_r, S_ll_r & Contr[]t

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Buyer:Theorganizationinterestinginprocuring goodsandservicesistermedasbuyer. Seller:Theorganization/individualsellinggoods orservicesistermedasseller.Contractors, Serviceproviders,consultantsetc.areall consideredsellers. Contract:Contractisthelegalagreement betweenthebuyerandsellertobuy/sellgoods orservices.

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Project Planning

C_ntr[liz_^ vs. D_]_ntr[liz_^

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Centralized Procurement
referstoacentralprocurementdepartmentaccountablefor procuringgoodsandservicesfortheentireorganization.

DecentralizedProcurement
referstoproject/organizationspecificprocurementwhere theprocurementmanagerreportstotheprojectmanager

Advantages
Procurement managerwill gainmoreexperienceand hencewillgainhigherdegree ofexpertise Lessonslearnedfromone procurement canbeapplied tootherprocurement(s) Standardcorporatepolicies andpracticescanbefollowed BetterCareerOpportunities forindividuals

Limitations
Lackofadequateattention fromprocurementmanager duetoconflictingpriorities.

Advantages
ProjectManager willhave betteraccessandcontrolover theprocurementmanager.

Limitations
Lackofopportunity to continuouslyimprovethe process.

Lackofavailabilityofexpert internalhelp.

Duplicationofefforts

Littleornostandardization of processes Unclear Careerpathforthe procurementmanager

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12.1 Pl[n Pro]ur_m_nts

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Overview

PlanProcurementsistheprocessofdocumentingproject purchasingdecisions,specifyingtheapproach,andidentifying potentialsellers

Inputs
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Scopebaseline Requirements documentation Teamingagreements Riskregister Riskrelatedcontract decisions Activityresource requirements Projectschedule Activitycostestimates Costperformancebaseline EEF OPA

Toolsand Techniques
1. 2. 3. Makeorbuyanalysis Contracttypes Expertjudgment 1. 2. 3. 4. 5. 6.

Outputs
Makeorbuydecisions Procurement managementplan Sourceselection criteria Procurement statementsofwork Procurement documents Changerequests

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Project Planning

M[k_-or-Buy @n[lysis

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Atechniqueusedtodeterminewhetheritismorecosteffectiveto produceaproductorserviceinhouseortoprocureitfroman outsideseller. Impactsprojecttime,cost,andquality. Considerifaproductneedstobepurchased,leased,orrented,in caseofabuydecision. Consider


Direct&Indirectcosts Technicalability Tradesecrets?

Example:Makeorbuyanalysisfor developingtrainingmaterials.

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L_[s_, R_nt, or Buy D_]isions

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Abusinessanalysisthatdeterminesthemost costeffectivewaytoprocurethenecessary equipmentforaproject. Example:Lease,rent,orbuydecisionsfor acquiringahighspeed copierwithcollatingcapabilities.

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T_[ming @gr__m_nts

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Alegalcontractualagreementbetweentwoormore partiestoformajointventure. Partiescanbeinternalorexternaltotheorganization executingthe project. Significantlyimpactstheplanningprocessesforthe project. Predefinesissuessuchasscopeofworkandcompetition requirements. Example:AteamingagreementbetweenOGCCorporation andJanrex Inc.
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Risk-R_l[t_^ Contr[]t D_]isions

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Riskrelatedcontractdecisionsaremadewhen:
Planningriskresponsesfortheproject. Sharingortransferringpartoralloftherisk. Enhancingormitigatingpartoralloftheopportunity orthreat.

Riskrelatedcontractdecisionsinclude:
Agreementsforinsurance Bonding Services LetterofCredit(LoC) Bankguarantee

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Contr[]ts

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Mutuallybindingagreementsthatdetailthe obligationsofbothpartiesintermsofprocuringwork. Customizedforeachagreement. Contracttypes:


Fixedprice. Costreimbursable. TimeandMaterial(T&M)contracts.

Example:Afixedpricecontractusedbytheprojectteam procuring themanufacturingunitforitsnewlineoffootwear.


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Typ_s of Contr[]ts

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Contract Type

Description It establishes a total price for a product or service. The seller agrees to perform the work at the negotiated contract value. This value is based on anticipated costs and profit, as well as a premium to cover unforeseen problems. This contract provides sellers a refund of the expenses incurred while providing a service, plus a fee representing seller profit. This type of contract includes aspects of both fixed-price and costreimbursable contracts. The buyer pays the seller a negotiated hourly rate and full reimbursement for materials used to complete the project.

Fixed price

Cost-reimbursable

Time and Material (T&M)

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Contr[]t Typ_s

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Fixed Price, FP Incentive Fee, FP Award Fee, FP Economic Price Adjustment Time and Material Cost plus, CP Incentive Fee, CP Award Fee, CP Fixed Fee, CP Percent of Costs
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Pro]ur_m_nt M[n[g_m_nt Pl[ns

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Outlinesthespecificationsforprocuringworkfromoutsidesources. Specifiesthetypesofcontractsthatwillbeused. Describestheprocessforobtainingandevaluatingbids. Mandatesthestandardizedprocurementdocumentsthatmustbe used. Describeshowmultipleproviderswillbemanaged. Stateshowprocurementactivitieswillbecoordinatedwithother projectmanagementactivities. Planmaybeformalorinformal;brieforhighlydetailed. Example:Anadvertisingagencyprocuringcontractsfromexternal sourcesforsomeoftheirworkthatisbeyonditscorecapabilities.

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Pro]ur_m_nt St[t_m_nts of Work

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Adetailednarrativedescriptionoftheresources,goods,or servicessoughtfromexternalsourcesforproject's requirements. Distributedtopotentialsellerstoevaluatetheircapability toperformtheworkorprovidetheservices. Servesasabasistodeveloptheprocurementdocuments duringthesolicitationprocess. Aprojectscopebaselineisusedtocreatetheprocurement SOW. Types:
PerformancePSOW CR FunctionalPSOW CR/T&M DesignPSOW FP
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Pro]ur_m_nt Do]um_nts

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Documentsthataresubmittedtoprospective sellersandserviceproviderstosolicittheir proposalsfortheworkneeded. Documenttypeusedwilldependonthetypeof projectandtheproductorservicebeing procured. Example:Arequestforproposalisaspecifictypeof procurement document.


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Typ_s of Pro]ur_m_nt Do]um_nts

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Term

Description Commonly used when deliverables are commodities for which there are clear specifications, and when price will be the primary determining factor. Like an RFB, commonly used when deliverables are commodities for which there are clear specifications, and when price will be the primary determining factor. Commonly used when deliverables are not well-defined or when other selection criteria will be used in addition to price. Commonly used when deliverables are commodities for which there are clear specifications and when the quantities are very large. Commonly used to develop lists of qualified sellers and to gain more input for resource availability.

Request for Bid (RFB)

Request for Quotation (RFQ)

Request for Proposal (RFP)

Invitation for Bid (IFB)

Request for Information (RFI)

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Pro]ur_m_nt Do]um_nts [n^ [sso]i[t_^ ]ontr[]t typ_s

CertSchool.com

Term
FP Short Known

Work

PSOW DesignPSOW
RFB

Docs

T&M

Short

Know/UnKnown

FunctionalPSOW

RFQ

CR

Long

UnKnown

PerformancePSOW

RFP

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Project Planning

Sour]_ S_l_]tion Crit_ri[


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Thestandardsusedtorateorscoreproposals,quotes,orbidsandformsapartofthe procurementsolicitationdocuments. Objectivecriteria Canbereadilydemonstratedandmeasured. Subjectivecriteria Opentodifferentinterpretations. Objectivecriteriaismuchmorespecificthansubjectivecriteria.

Objective Criteria Ph.D. chemist with at least five years experience in chromatographic research. 80,00090,000 square-foot storage area within three miles of the Dallas-Fort Worth Airport.

Subjective Criteria Experienced laboratory chemist with strong analytical skills. Ample square foot storage area near Dallas-Fort Worth Airport.

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Contr[]ts r_l[t_^ T_rms


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LetterofIntent:Aformalstatementthatthebuyerintendstopurchasethe propertyforacertainpriceonacertaindate.ButbyissuingtheLOIbuyerisnot mandatedtomakethatpurchase. LawofPrivity (ContractualRelationship) A B C

NonCompetitiveformsofprocurement
SoleSource:ThereisonlyonesuppliercapableofmeetingProjectrequirementswithinthe timeandbudgetavailable. SingleSource:Thepracticeofusingonesource,amongothersinacompetitivemarketplace which,forjustifiablereason,isfoundtobemostadvantageousforthepurposeoffulfillinga givenpurchasingneed.

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Project Planning

4.2 D_v_lop Proj_]t M[n[g_m_nt Pl[n

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Overview

Theprocessofdocumentingtheactionsnecessaryto define,prepare,integrate,andcoordinateallsubsidiaryplans.

Inputs
1. Project Charter 2. Outputs from Planning processes 3. Enterprise Environmental Factors 4. Organizational Process Assets 1.

Toolsand Techniques
Expert Judgment 1.

Outputs
Project Management Plan

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 73

Th_ Proj_]t M[n[g_m_nt Pl[n

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TheProjectManagementPlanisaformal,approveddocumentusedtoguide both projectexecutionand projectcontrol.Theprimaryusesoftheprojectplan aretodocumentplanningassumptionsanddecisions,facilitatecommunication amongstakeholders,anddocumentapprovedscope,cost,andschedulebaselines. (PMBOK) Consistsofseveralsubsidiaryplansandbaselinesdividedinto2majorcategories: SubsidiaryManagementPlansand PerformanceMeasurementBaselinethatconsists3baselines
ScopeBaseline ScheduleBaseline CostBaseline

Goalof20PlanningprocessesistodevelopProjectManagementPlanandits subsidiarycomponents. Note:MicrosoftProjectPlanisaProjectScheduleoraScheduleBaseline,whichis asubsetofProjectManagementPlan.

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Proj_]t M[n[g_m_nt Pl[n Compon_nts

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KeyComponents ofaProjectManagementPlan SubsidiaryManagementPlans(MP) RequirementsMP ScopeMP,ScheduleMP,CostMP QualityMP,ProcessImprovementPlan HRMP,StaffingMP CommunicationsMP RiskMP ProcurementMP ConfigurationMP,ChangeMP
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Baselines ScopeBaseline
(Scope Statement,WBS,WBSD)

ScheduleBaseline CostBaseline Combinationofabove3baselinesis calledPerformanceMeasurementBaseline

Proj_]t M[n[g_m_nt Pl[n Compon_nts

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Subsidiary Plan Scope management plan Requirements management plan Schedule management plan Cost management plan Quality management plan Process improvement plan Human resource plan Communications management plan

Description Provides guidance on the project scope. Specifies the planning for requirements of the project. Describes the plan to control the project schedule. Describes the plan to control project costs. Describes the implementation of the performing organization's quality policy throughout the project. Analyzes processes to identify activities that enhance their value. Provides guidance on effective human resource management. Documents the approach to communicate efficiently and effectively with the stakeholders. Describes how risk management is structured and performed on the project. Describes how the procurement processes will be managed.

Risk management plan Procurement management plan

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PMIS & Configur[tion, Ch[ng_ M[n[g_m_nt

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ProjectManagementInformationSystem
CentralnetworkfolderorIntranetPortal

ConfigurationManagementSystem
ProjectandProductDocumentation Changesforthosedocumentation VersionsoftheDocuments

Configuration Management Plan

Strategies to manage the documentation How do you use version control What is the final version of documents Policies to promote code / release

ChangeControlSystem
Howwillchangestoourcost,schedule,HR, Quality,andotherPMplanfunctionsbe handled? LifehappensRequirementschange Unmanagedchangeisaprimaryreasonfor projectfailure

Change Control Procedures (How and Who) Change Control Board (constitution and operations) Tools to track changes Processes to submit, review, approve If required roles of sub committees

Change Management Plan

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Proj_]t Do]um_nts

CertSchool.com

DocumentsotherthanProjectManagementPlan,createdby PMandneednotbeapprovedbySponsor Examples


Charter SOW Contracts QualityMetrics, ActionItems,ActivityLists,RiskRegister,Issuelog,Changeslog

Tip:Updatestothesedocumentsisdonethroughoutandbymanyprocesses. (i.e.Outputofmanyprocesses)

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Project Planning

Diff_r_n]_s

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S]op_ M[n[g_m_nt Pl[n

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Thedocument providesguidanceonhow projectscopewillbedefined,documented, verified,managed,andcontrolled.Thescope managementplanmaybeformalorinformal, highlydetailed,orbroadlyframed,based upontheneedsoftheproject

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Project Planning

S]h_^ul_ M[n[g_m_nt Pl[n

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Aschedulemanagementplanthatselectsascheduling methodology,aschedulingtool,andsetstheformatandestablishes criteriafordevelopingandcontrollingtheprojectschedule. Aschedulingmethodologydefinestherulesandapproachesforthe schedulingprocess.Someofthebetterknownmethodologies includecriticalpathmethod(CPM)andcriticalchain. Theprojecttimemanagementprocessesandtheirassociatedtools andtechniquesaredocumentedintheschedulemanagementplan. Itmaybeformalorinformal,highlydetailedorbroadlyframed, basedupontheneedsoftheproject,andincludesappropriate controlthresholds.

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Cost M[n[g_m_nt Pl[n

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Acostmanagementplanthatsetsouttheformatandestablishesthe criteriaforplanning,structuring,estimating,budgeting,andcontrolling projectcosts.Thecostmanagementprocessesandtheirassociatedtools andtechniquesareusuallyselectedduringtheprojectlifecycledefinition (Section2.1),andaredocumentedinthecostmanagementplan.For example,thecostmanagementplancanestablishthefollowing:


Levelofaccuracy Unitsofmeasure Organizationalprocedureslinks Controlthresholds Rulesofperformancemeasurement Reportingformats ProcessDescriptions

Thecostmanagementplanmaybeformalor informal,highlydetailedorbroadlyframed,basedupontheneedsofthe project

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Project Execution

Ex_]ution O\j_]tiv_s

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Obtainandmanageprojectresourcesincludingoutsourceddeliverablesby followingtheprocurementplan Executethetasksasdefinedintheprojectplan Implementthequalitymanagementplanusingtheappropriatetoolsand techniques Implementapprovedchangesaccordingtothechangemanagementplan Implementapprovedactions(e.g.workarounds)byfollowingtherisk managementplan Maximizeteamperformancethrough leading,mentoring,training,and motivatingteammembers.

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Ex_]uting Proj_]t Work

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IdentifytheDirectandManageProjectExecution Process ExecuteaQualityAssurancePlan AcquiretheProjectTeam DeveloptheProjectTeam ManagetheProjectTeam DistributeProjectInformation ManageStakeholderRelationshipsand Expectations ConductProcurement
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Project Execution

4.3 Dir_]t [n^ M[n[g_ Proj_]t Ex_]ution

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Overview

processofperformingtheworkdefinedintheproject managementplantoachievetheprojectsobjectives.

Inputs
1. Project Management Plan 2. Approved Change Requests 3. Enterprise Environmental Factors 4. Organizational Process Assets

Toolsand Techniques
1. Expert Judgment 2. Project Management Information System 1. 2. 3. 4. 5.

Outputs
Deliverables WorkPerformance Information ChangeRequests ProjectManagement Planupdates Projectdocuments updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 84

Proj_]t M[n[g_m_nt Inform[tion Syst_m (PMIS)

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Anautomatedsystemusedtogather,analyze, communicate,andstoreprojectinformation. Collectsinformationon:


Workthathasandhasnotbeenaccomplishedineach workpackage. Workresultcomparedtotheplannedschedule,cost, quality,andscope. Maybecomputerizedormanual.

Example:MicrosoftSharepointandProject ServercreatesaPMISenvironment
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Project Execution

Work @uthoriz[tion Syst_m


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Atoolusedtocommunicateofficialpermissiontobeginworkingonanactivityor workpackage. Ensuresthatworkisdone:


Attheappropriatetime. Bytheappropriateindividualorgroup. Withinaspecifictime. Inthepropersequence.

Acontractworkauthorizationsystem
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P_rform th_ work!! M_[ns - Ex_]ut_ th_ Proj_]t M[n[g_m_nt Pl[n

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(Outputofthisprocess)Arecalled WorkPerformanceInformation PerformWork aspertheplan


Status report

Status report

Status report

Approved Changes

Status report

Need Change

ChangeControl Process

FinalProduct (DELIVERABLES)

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Work P_rform[n]_ Inform[tion

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Consistsofperiodicallycollectedinformationaboutprojectactivities. ResidesinthePMIS. Includes:


Scheduleprogresswithstatusinformation. Deliverables. Scheduleactivities. Degreeofqualitystandards. Expensesauthorized. Estimatestocompletethescheduleactivities. Percentofcompletedscheduleactivities. Lessonslearned. Resourceutilization. Changerequestsimplementation. Correctiveandpreventiveactions Defectrepairs.

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Corr_]tiv_ / Pr_v_ntiv_ / D_f_]tiv_

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CorrectiveActions
Actiontoeliminatethecauseofadetectednonconformity.Therecan bemorethanonenonconformity.Correctiveactionistakentoprevent recurrence.Correctionrelatestocontainmentwhereascorrective actionrelatestotherootcause.

PreventiveActions
Longtermcost/riskweightedactiontakentopreventaproblemfrom occurring,basedonanunderstandingoftheproductorprocess. Preventiveactionwilladdressinadequate"conditions"whichmay producenonconformance

DefectRepairActions
Theworddefectivedescribesanentireunitthatfailstomeet acceptancecriteria,regardlessofthenumberofdefectswithinthe unit.Aunitmaybedefectivebecauseofoneormoredefects

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Project Execution

8.2 P_rform Qu[lity @ssur[n]_

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Overview

PerformQualityAssuranceistheprocessofauditingthequality requirementsandtheresultsfromqualitycontrolmeasurementsto ensureappropriatequalitystandardsandoperationaldefinitionsareused.

Inputs
1. 2. 3. 4. Projectmanagement plan Qualitymetrics Workperformance information Qualitycontrol measurements 1.

Toolsand Techniques
PlanQualityand PerformQualityControl toolsandtechniques Qualityaudits Processanalysis 1. 2. 3. 4.

Outputs
OPAupdates Changerequests Projectmanagement planupdates Projectdocument updates

2. 3.

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 202

Qu[lity @u^it

CertSchool.com

QualityAssuranceispartofqualitymanagement,focusedonprovidingconfidence thatqualityrequirementswillbefulfilled Themainobjectiveofqualityassuranceactivityistobuildqualityintotheproduct and/orserviceduringtheupstreamdesignandplanningprocessesandinthisway giveconfidencetoacustomerthataproductand/orserviceperformsasthey expect. Aqualityauditisastructured,independentevaluation,inspection,orreviewto determinewhetherprojectactivitiescomplywithorganizationalandproject policies,processes,andprocedures.Theobjectivesofaqualityauditare:


Identifyallthegood/bestpracticesbeingimplemented Identifyallthegaps/shortcomings Proactivelyofferassistanceinapositivemannertoimproveimplementationofprocessesto helptheteamraiseproductivity Highlightcontributionsofeachauditinthelessonslearnedrepositoryoftheorganization

Qualityauditsmaybescheduledorrandomandmaybeconductedbyinternalor externalauditors Qualityauditscanconfirmtheimplementationofapprovedchangerequests

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Project Execution

Typ_s of Qu[lity @u^its

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A productaudit isanassessmentofafinalproductorserviceandits"fitnessfor use"againststatedrequirementsorspecifications.Inamanufacturingsense,a productauditwouldbeperformedonsomeitemthathasjustpasseditsfinal inspectionandisreadyfordeliverytothecustomer. A processaudit isthemajortypeofauditperformedbyqualityauditors.Thisisa reviewtoverifyconformancetostandards,methods,procedures,orother requirements. A systemsaudit isnotanITrelatedreviewbutanauditthatcoversallaspectsofa controlsystem.Thistypeofreviewisconductedtoverify,throughobjective evidence,thatallaspectsofmanagementsystemsandorganizationalplansare implementedtoadequatelymeetidentifiedrequirements.
SystemAudit ProcessAudit

ProductAudit

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Topi]s of Qu[lity @u^its

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Topic Quality management policy Collection and use of information Analytical methods Cost of quality

Description May be evaluated to determine how well management uses quality data and how well others in the organization understand how the data is being used. May be evaluated to determine how well the project team is collecting, distributing, and using quality data. May be evaluated to determine if the best analytical methods are being used consistently and how well their results are being used. May be evaluated to determine the most effective proportion between prevention, inspection, and costs of repair or rework. May be evaluated to determine how process design, process analysis, and statistical process control should be used to establish and improve the capability of a process.

Quality process design

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Project Execution

9.2 @]quir_ Proj_]t T_[m

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Overview

AcquireProjectTeamistheprocessofconfirminghuman resourceavailabilityandobtainingtheteamnecessaryto completeprojectassignments.

Inputs
1. 2. Projectmanagement plan EEF/OPA 1. 2. 3. 4.

Toolsand Techniques
Preassignment Negotiation Acquisition Virtualteams 1. 2. 3.

Outputs
Projectstaff assignments Resourcecalendars Projectmanagement planupdates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 226

F[]tors to ]onsi^_r @]quiring t_[m

CertSchool.com

Negotiateandinfluencefunctionalmanagers tosupplyresourcesontime Failuretoacquirethoseresourcesmightdelay theprojectschedule,budgets,customer satisfaction,quality,andaddrisks. Arrangementstoalternativeresourcesshould bemadetoaddressunavailabilityofplanned resources


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Project Execution

Tools & T_]hniqu_s

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Preassignment:Whenprojectteammembersareselectedinadvancetheyare consideredpreassigned
SpecificresourcesarepartofwinningBid SpecificresourcesareSMEoftheorganization

Negotiation:Staffassignmentsarenegotiatedonmanyprojects.Mustnegotiate with
FunctionalManagers OtherProjectmanagementteams Externalorganizations

Acquisition:Whentheperformingorganizationlackstheinhousestaffneededto completeaproject,therequiredservicesmaybeacquiredfromoutsidesources VirtualTeams


Teamsthataredistributedamongmultiplephysicallocations. Maybemoredifficultbecause:
Bondingandteamidentitymaybehardtodevelop. Variousformsofcommunicationstechnologyused. Difficulttomonitorindividualperformance/progress.

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9.3 D_v_lop Proj_]t T_[m

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Overview

DevelopProjectTeamistheprocessofimprovingthe competencies,teaminteraction,andtheoverallteam environmenttoenhanceprojectperformance

Inputs
1. 2. 3. Projectstaff assignments Projectmanagement plan Resourcecalendars 1. 2. 3. 4. 5. 6.

Toolsand Techniques
Interpersonalskills Training Teambuildingactivities Groundrules Colocation Recognitionand rewards 1. 2.

Outputs
Teamperformance assessments Enterprise environmentalfactors updates

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Project Execution

T_[m D_v_lopm_nt St[g_s

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Stage Forming Storming Norming Performing Adjourning

Description The team members get to know each other and trust one another. Team members begin to assert themselves and control issues as they emerge. They resolve conflicts and achieve consensus. The team begins to work productively, without worrying about personal acceptance or control issues. The team is working at optimum productivity and are collaborating easily, communicating freely, and solving its own conflict problems. The team members complete their assigned work and shifts to the next project or assigned task.

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Tr[ining

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Anactivitytoacquireskills,knowledge,orattitudes. Providedtoteams,smallgroups,orindividuals. Coversmanagement,technical,oradministrativetopics. Types:


Multiday,formalworkshop. Fiveminute,informalonthejobtraining.

Providedtoteammemberswhenthereisaneed.

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Project Execution

T_[m-Buil^ing @]tiviti_s

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Specificfunctionsoractionstakentodevelopa mature,productiveteam. Activitiescanbe:


Formalorinformal. Brieforextended. Conductedbytheprojectmanagerorafacilitator.

Example:Anoutdoorteambuildingactivitywas initiatedbythemanager,whichinvolvesallday, offsiteropeclimbingexercisefacilitatedbya coach.


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Co-lo][tion

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Positioningteammembersinthesamephysical location:
Makescommunicationeasier. Enhanceteamperformance. Improvesteamspirit.

Bothsmallandlargeprojectsbenefitfromcolocation. Examples:Colocationforanationalcampaignatwhich thekey membersofthecampaign'sprojectteamwouldbeco located.


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Project Execution

R_w[r^ [n^ R_]ognition Syst_ms


Aformalsystemusedtoreinforceperformanceorbehavior. Helpsinmotivatingtheteamtoperformwell. Rewardsinclude:
Monetarygifts. Additionalvacationtimeorotherperks. Companyplaquesortrophies. Gifts.

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Example:Ateammemberbeingawardedagiftcertificatebythe managerforanoutstandingperformanceinmentoringnewcolleagues. Givingpayincreasesorpromotionstoindividualsbasedonmerit. Example:10%salaryincreasetosalesrepresentativeswhoexceed quotaby25%fortheyear.

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T_[m P_rform[n]_ @ss_ssm_nt

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Effectiveteamdevelopmentstrategiesandactivitiesare expectedtoincreasetheteamsperformance,which increasesthelikelihoodofmeetingprojectobjectives Theperformanceofasuccessfulteamismeasuredinterms oftechnicalsuccessaccordingtoagreeduponproject objectives,performanceonprojectschedule(finishedon time),andperformanceonbudget(finishedwithinfinancial constraints).Highperformanceteamsarecharacterizedby thesetaskorientedandresultsorientedoutcomes Theyalsoexhibitspecificjobrelatedandpeoplerelated qualitiesthatrepresentindirectmeasuresofproject performance

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Project Execution

9.4 M[n[g_ Proj_]t T_[m

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Overview

ManageProjectTeamistheprocessoftrackingteammember performance,providingfeedback,resolvingissues,andmanaging changestooptimizeprojectperformance

Inputs
1. 2. 3. 4. 5. Projectstaff assignments Projectmanagement plan Teamperformance assessments Performancereports Organizationalprocess assets 1. 2. 3. 4. 5.

Toolsand Techniques
Observationand conversation Projectperformance appraisals Conflictmanagement Issuelog Interpersonalskills 1.

Outputs
Enterprise environmentalfactors updates Organizationalprocess assetsupdates Changerequests Projectmanagement planupdates

2. 3. 4.

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 236

Confli]t M[n[g_m_nt

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Applicationofoneormorestrategiestodealwithdisagreements. Effectiveconflictmanagementleadstoimprovedunderstanding,performance, andproductivity. Ineffectiveconflictmanagementleadsto:


Destructivebehavior. Animosity. Poorperformance. Reducedproductivity. Resources(people) Costestimates Technicalopinions Tradeoffdecisions Priorities Administrativeprocedures Scheduling Assignmentofresponsibilities Personalityclashes

Reasonsfortheconflict

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Project Execution

Confli]t R_solution T_]hniqu_s

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Withdrawing/Avoiding.Retreatingfromanactualorpotentialconflictsituation. Theproblemandtheresulting conflict cancomeupagainandagain Smoothing/Accommodating.Emphasizingareasofagreementratherthanareasof difference.Insmoothing,onemaysacrificeone'sowngoalsinordertosatisfythe needsoftheotherparty. Compromising.Searchingforsolutionsthatbringsomedegreeofsatisfactiontoall parties.Tocompromiseistobargainwhichleadstoa"winwin"position Forcing.Pushingonesviewpointattheexpenseofothers;offersonlywinlose solutions. Collaborating.Incorporatingmultipleviewpointsandinsightsfromdiffering perspectives;leadstoconsensusandcommitment.Thisapproachisintegration wherebothpartiesneedtowin. Confronting/ProblemSolving.Treatingconflictasaproblemtobesolvedby examiningalternatives;requiresagiveandtakeattitudeandopendialogue

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T[sks of P_rform[n]_ @ppr[is[ls

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Useperformanceappraisaltoaccomplish tasks,including:
Comparingperformancetogoals. Reclarifyingrolesandresponsibilities. Deliveringpositiveandnegativefeedback. Discoveringunknownorunresolvedissues. Creatingandmonitoringtrainingplans. Establishingfuturegoals.
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Project Execution

Pow_r of Proj_]t M[n[g_rs

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Formal(Legitimate) Reward Penalty(Coercive) Expert Referent

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L_[^_rship Styl_s

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Competence

Supporting Praise,Listenandfacilitate Forpeoplewhohave Highcompetence VariableCommitment

Empowering Turnoverresponsibility Forpeoplewhohave HighCompetence HighCommitment

Coaching DirectandSupport Forpeoplewhohave LowCompetence LowCommitment

Directing Structure,ControlandSupervise Forpeoplewhohave LowCompetence HighCommitment

Commitment
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Project Execution

Motiv[tion[l Th_ori_s

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MaslowsHierarchyofneeds Herzbergs2FactorTheory McGregorsTheoryofXandY Ouchis TheoryZ ClaytonAlderferERGTheory DavidMcClelland3NeedTheory

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M[slows Hi_r[r]hy of n__^s

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Actualization

SelfEsteem

Social Safety Physiological

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Project Execution

Fr_^_ri]k H_rtz\_rgs 2 F[]tor Hygi_n_ [n^ Motiv[tion Th_ory

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Hygiene Organization Policies Supervision Workingconditions Interpersonalrelations Salary Status JobSecurity

Motivation Achievement Recognition Growth/advancement InterestinJob

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Th_ory of X [n^ Y

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FromDouglasMcGregorsbookTheHuman sideofEnterprise 1960

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Project Execution

Ou]his Th_ory Z

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FromJapaneseManagement,contrarytoTheoryofXY. FocusonLoyalty
Longtermemployment Collectiveresponsibility Implicit,informalcontrolwithexplicit,formalized measures Collectivedecisionmaking Slowevaluationandpromotion Moderatelyspecializedcareers Concernforatotalperson,includingtheirfamily

BasedonDr.W.EdwardsChoid Deming'sfamous"14 points".


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10.3 Distri\ut_ Inform[tion

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Overview

Distributeinformationistheprocessofmakingrelevant informationavailabletoprojectstakeholdersasplanned

Inputs
1. 2. 3. Projectmanagement plan Performancereports Organizationalprocess assets 1. 2.

Toolsand Techniques
Communication methods Information distributiontools 1.

Outputs
Organizationalprocess assetsupdates

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Project Execution

Distri\ut_ Inform[tion

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DistributeInformationisthecommunicationsprocessofmakingproject informationavailabletoprojectstakeholders,asdeterminedand documentedintheCommunicationsManagementPlan. Informationdistributionmethodsshouldbeappropriatetotheproject, thetimelinessrequiredandthecultureoftheorganizationthatyouare workingin. Itisimportanttobemindfulthatcommunicationisnotcompleteuntilthe senderisconfidentthatthereceiverunderstandstheinformation,as intended. Communicationmethods Distributiontools
Hardcopydocuments Electroniccommunicationtools,conferencingtools,websites ProjectManagementsoftware,meetingandvirtualofficesoftware, collaborativeworkmanagementtools

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10.4 M[n[g_ St[k_hol^_r Exp_]t[tions

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Overview

ManageStakeholderExpectationsistheprocessof communicatingandworkingwithstakeholderstomeet theirneedsandaddressingissuesastheyoccur

Inputs
1. 2. 3. 4. 5. 6. Stakeholderregister Stakeholder managementstrategy Projectmanagement plan Issuelog Changelog Organizationalprocess assets 1. 2. 3.

Toolsand Techniques
Communication methods Interpersonalskills Managementskills 1. 2. 3. 4.

Outputs
Organizationalprocess assetsupdates Changerequests Projectmanagement planupdates Projectdocument updates

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Project Execution

M[n[g_ St[k_hol^_r Exp_]t[tions

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Processofcommunicatingandworkingwithstakeholders tomeettheirneedsandaddressingissuesastheyoccur.
Theprojectmanagerisresponsibleforstakeholderexpectations management. Addressingconcernsthathavenotbecomeissuesyet,usually relatedtotheanticipationoffutureproblems.Properlyassess theRisksandgainstakeholdersupport Activelymanagingtheexpectationsofstakeholderstoincrease thelikelihoodofprojectacceptance Activelymanagingstakeholderexpectationsdecreasestherisk thattheprojectwillfailtomeetitsgoalsandobjectivesdueto unresolvedstakeholderissues,andlimitsdisruptionsduringthe project.

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Tools & T_]hniqu_s

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InterpersonalSkills
Buildingtrust Resolvingconflict Activelistening Overcomingresistance Presentationskills Negotiation Writingskills Publicspeaking

ManagementSkills

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Project Execution

12.2 Con^u]t Pro]ur_m_nts

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Overview

ConductProcurementsistheprocessofsearchingsellers, obtainingsellerresponses,evaluateresponses,selectingaseller, andawardingaContract.

Inputs
1. 2. 3. 4. 5. 6. 7. 8. 9. Projectmanagement plan Procurementdocuments Sourceselectioncriteria Qualifiedsellerlist Sellerproposals Projectdocuments Makeorbuydecisions Teamingagreements Organizationalprocess assets

Toolsand Techniques
1. 2. 3. 4. 5. 6. 7. Bidderconferences Proposalevaluation techniques Independentestimates Expertjudgment Advertising Internetsearch Procurement negotiations 1. 2. 3. 4. 5. 6.

Outputs
Selectedsellers Procurementcontract award Resourcecalendars Changerequests Projectmanagement planupdates Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 329

S_[r]hing S_ll_rs

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Advertising:Byplacingadvertisementsingeneralcirculationpublicationssuch asselectednewspapersorinspecialtytradepublicationsProjectteamsecures attentionofsellers.Somegovernmentjurisdictionsrequirepublicadvertising InternetSearch:Theinternetsearchprovidesgreatdatabasesofsuppliers. BidderConferences:Bidderconferences(sometimescalledcontractor conferences,vendorconferences,andprebidconferences)aremeetings betweenthebuyerandallprospectivesellerspriortosubmittalofabidor proposal.


Theyareusedtoensurethatallprospectivesellershaveaclearandcommonunderstandingof theprocurement(bothtechnicalandcontractualrequirements).Responsestoquestionscan beincorporatedintotheprocurementdocumentsasamendments. Tobefair,buyersmusttakegreatcaretoensurethatallprospectivesellershearevery questionfromanyindividualprospectivesellerandeveryanswerfromthebuyer Allresponsesarewelldocumentedanddistributedtoallprospectivesellers.

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Project Execution

Propos[l _v[lu[tion t_]hniqu_s

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WeighingSystem Evaluateproposalsquantitatively Setcriteriaandweightsofthosecriteria Evaluateindividualcontractoragainsteachcriteria Calculateoverallweightageofcontractorcomparedtoothers IndependentEstimate Preparedtoverifysellerestimates Eitherbuyercanconductestimateinternallyortakeestimate fromanindependentconsultingcompanywhoisnotoneof thosebidders ScreeningSystems Requiresminimumcriteria Disqualifysellerswhodoesntmeetcriteriawaybeforeother Analysis Sellerratingsystem Takespastperformanceintoaccount

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W_ighting Syst_ms

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Themethodforquantifyingqualitativedatatominimizetheinfluenceofpersonalbiasonsourceselection. Eachorganizationwouldhaveaseparatelistofcriteriatoselecttheseller.Allcriteriaarenotsameinthe preference,therewillbesomevariancepreference.Thosecanbedividedona100%scale. Assignnumericalweightspersellertoevaluationcriteria.Thesequalificationsareparticularseller'sabilitymeet thecriteria.Inthebelowexamplethesellersabilityismeasuredonthescaleof110.


Seller1 Criteria Preferences
Qualification againstcriteria Score

Seller2
Qualification againstcriteria Score

Seller3
Qualification againstcriteria Score

C1 C2 C3 C4 C5 Total

15% 25% 30% 10% 20% 100%

8 6 8 4 4

1.2 1.5 2.4 0.4 0.8 6.30

8 4 4 8 6

1.2 1 1.2 0.8 1.2 5.40

8 7 6 6 6

1.2 1.75 1.8 0.6 1.2 6.55

Onthescaleof110 SelectedOption
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Project Execution

Qu[lifi_^ S_ll_rs

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Sellerswhoarequalifiedtodeliverproducts, services,orresultsbasedontheprocurement requirementsidentifiedforaproject. Listofqualifiedsellerscanbeobtainedfrom historicalinformationaboutdifferentsellers. Iftherequiredresourcesarenewtothe organization,someresearchshouldbedonein collaborationwiththePurchasing Department.


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Pro]ur_m_nt Contr[]t @w[r^

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Aprocurementcontractisawardedtoeachselectedseller.Thecontractcanbeintheformof simplepurchaseorderoracomplexdocument.Regardlessofthedocumentscomplexity,a contractisamutuallybindinglegalagreementthatobligatesthesellertoprovidethespecified products,services,orresults,andobligatesthebuyertocompensatetheseller.Acontractisalegal relationshipsubjecttoremedyinthecourts.Themajorcomponentsincludethefollowing:


Statementofworkordeliverables, Schedulebaseline, Periodofperformance, Rolesandresponsibilities, Sellersplaceofperformance, Pricing, Paymentterms, Inspectionandacceptancecriteria, Warranty,Productsupport,Limitationofliability, Feesandretainage,Penalties,Incentives,Insuranceandperformancebonds, Subordinatesubcontractorapprovals, Changerequesthandling,and Terminationandalternativedisputeresolution(ADR)mechanisms.TheADRmethodcanbedecidedin advanceasapartoftheprocurementaward.

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Project Monitoring and Control

Pro]ur_m_nt N_goti[tions

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Theprocessofbargainingtocometoamutualagreementregardingthe termsandconditionsofacontract.
Stage Description All parties become acquainted and the overall attitude of the negotiation is established; this tone is largely set by the buyers team leader - normally, the person with authority to sign the contract will lead the contract negotiation team. Each side attempts to learn more about the others real position. Give and take discussions take place to arrive at the best possible agreement for all. The tentative agreement is revised and everyone has an opportunity to tweak the results. The team tries to ensure that all parties clearly understand and agree to all terms and conditions of the contract.

Introduction

Probing Bargaining Closure Agreement

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Monitoring [n^ Control O\j_]tiv_s


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Measureprojectperformanceusingappropriatetoolsandtechniques Managechangesbyupdatingtheprojectplanandcommunicatingapprovedchangestothe team Ensurethatprojectdeliverablesconformtothequalitystandardsbyusingappropriatetools andtechniques(e.g.testing,inspection,controlcharts) Updatetheriskregisterandriskresponseplanbyidentifyinganynewrisks,assessingold risks,anddeterminingandimplementingappropriateresponsestrategies Assesscorrectiveactionsonthe issueregisteranddeterminenext stepsforunresolvedissuesbyusing appropriatetoolsandtechniques Communicateprojectstatusto stakeholdersfortheirfeedback

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Project Monitoring and Control

Monitoring [n^ Controlling Proj_]t Work 10ProcessesinthisProcessGroup:

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4.4IdentifytheMonitorandControlProjectWorkProcess ReviewDeliverablesandWorkResults

4.5DevelopanIntegratedChangeControlSystem
UtilizetheIntegratedChangeControlSystem

5.5ControltheProjectScope 6.6ControltheProjectSchedule 7.3ControlProjectCosts 8.3PerformQualityControl 10.5ReportonProjectPerformance 11.6MonitorandControlProjectRisk 12.4AdministerProjectProcurements

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Monitoring [n^ Control

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Projectmonitoringisthemeasuring,collection,analysis,andreportingofallaspectsofproject performance.
Thiscontinuousmonitoringprovidestheprojectteaminsightintothehealthoftheprojectandidentifies anyareasrequiringadditionalattention. StudytheactualresultsandcompareagainsttheProjectPlan(expectedresults)toascertainanydifferences. Chartingdatacanmakethismucheasiertoseetrendsoverseveralcyclesandinordertoconvertthe collecteddataintoinformation.InformationiscrucialforControlProcess".

Projectcontrolistheprocessofkeeping/theprojectonplanusingtheprogressdatasuppliedby projectmonitoring
Acknowledgesprogress Requestcorrectiveactionsonsignificantdifferencesbetweenactualandplannedresults.Optimizes resourceutilization Analyzethedifferencestodeterminetheirrootcauses.Determinewheretoapplychangesthatwillinclude improvementoftheprocessorproduct.

MonitoringandControlPrerequisites Abaselinethatisdependable,approvedanddocumented Establishedandenforcedreportingprocedures Plannedcontrolproceduresattheprojectstart

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Project Monitoring and Control

Monitoring Consi^_r[tions

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Whatistobemonitored? Whyisittobemonitored? Whatdataandassociatedproceduresarerequiredtoproduce relevantreportstodetermineprojectprogress? Howdowedeterminehowtotrackactualperformance againstprojectplansandobjectives?

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Control Consi^_r[tions

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Howarepotentialdeviationsidentifiedandcorrectedbefore theyoccur? Atwhatpointintheprojectshouldcontrolbeexerted? Howmuchdeviationwillbetolerated? Whatkindsofinterventionshouldbeused? Howareprocessissuesidentifiedandresolved? Whatisthebasisforincorporatingmeasurementintofuture processes?

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Project Monitoring and Control

4.4 Monitor [n^ ]ontrol proj_]t work

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Overview

Monitor and control project work involves monitoring the project to determine its overall health. Here, data is collected, measured, and interpreted against the PM plan.

Inputs
1. Project Management Plan 2. Performance Reports 3. Enterprise Environmental Factors 4. Organizational Process Assets 1.

Toolsand Techniques
Expert Judgment

Outputs
1. ChangeRequests 2. ProjectManagementPlan updates 3. Projectdocuments updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 89

Monitor [n^ Control Proj_]t Work Pro]_ss B_st Pr[]ti]_s


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Comparingactualprojectperformanceagainsttheprojectmanagementplan Assessingperformancetodeterminewhetheranycorrectiveorpreventiveactions areindicated,andthenrecommendingthoseactionsasnecessary; Identifyingnewrisksandanalyzing,tracking,andmonitoringexistingprojectrisks tomakesuretherisksareidentified,theirstatusisreported,andthatappropriate riskresponseplansarebeingexecuted; Maintaininganaccurate,timelyinformationbaseconcerningtheprojects product(s)andtheirassociateddocumentationthroughprojectcompletion; Providinginformationtosupportstatusreporting,progressmeasurement,and forecasting; Providingforecaststoupdatecurrentcostandcurrentscheduleinformation;and Monitoringimplementationofapprovedchangesastheyoccur. Maintainaccurateinformation. Maintaintheintegrityofbaselines. Monitortheexecutionofapprovedchanges.

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Project Monitoring and Control

4.5 P_rform Int_gr[t_^ Ch[ng_ Control

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Overview

Integrated change control is concerned with influencing the things that cause change, determining if a change is needed or has happened, and managing the change.

Inputs
1. Project Management Plan 2. Work Performance Information 3. Change Requests 4. Enterprise Environmental Factors 5. Organizational Process Assets

Toolsand Techniques
1. Expert Judgment 2. Change Control Meetings

Outputs
1. ChangeRequestsstatus updates 2. ProjectManagementPlan updates 3. Projectdocuments updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 93

Int_gr[t_^ Ch[ng_ Control

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Theprocessofidentifying,documenting,approvingor rejecting,andcontrollingchangestotheproject baselines. Reducesrisktoaprojectbygoverningtheexecutionof proposedchangesthatwillaffectscheduleandcostor otherobjectives. Allowsprojectmanagerstorecordrequestedchanges. Helpsensurethatchangesareimplementedina standardizedandapprovedmanner. Helpsminimizedisruptiveeffectofchangesmadeand monitorprogression.
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Project Monitoring and Control

C[us_s of Proj_]t Ch[ng_s

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Dependency

Description Due to: Lack of experience. Lack of information. Precedence to inaccurate data. Excessive optimism. Technological difficulties. Unreliable resources. Broadening the project's scope to include new specifications and deliverables. Accommodating new regulations may have an effect on the resource needs, schedule durations, and quality specifications. Complete and comprehensive information may not be captured when reviewing documentations and interviewing policy makers and end users. This may lead to slippages at different phases in the project.

Inaccurate initial estimates

Specification changes New regulations Missed requirements

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Ch[ng_ Control D[t[ Flow

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Following15Processescansubmitchangerequests Planning
1. 12.1Plan Procurements

Execution
2. 3. 4. 5. 6. 4.3Direct &ManageProject Execution 8.2PerformQualityAssurance 9.4ManageProjectTeam 10.4ManageStakeholder Expectations 12.2ConductProcurements

M&C(All9M&Cprocessesexcept4.5)
7. 8. 9. 10. 11. 12. 13. 14. 15. 4.4 Monitor& ControlProjectwork 5.4VerifyScope 5.5ControlScope 6.6ControlSchedule 7.3ControlCosts 8.3PerformQualityControl 10.5ReportPerformance 11.6MonitorandcontrolRisks 12.3AdministerProcurements
ChangeRequestasinputofProcess4.5

4.5PerformIntegratedChangeControl
ApprovalStatusUpdates

4.3Direct&ManageProjectExecution Alsoto8.3,12.4
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Project Monitoring and Control

Ch[ng_ Control Pro]_ss

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Project Team / Stakeholders Identify Review & Assess

Project Manager Capture & Validate Assign for Review Propose Action

Change control board(CCB) / Steering Committee

Notify Approve for Review Notify Approve Reject

Action

Assign for Action Review and Accept Document and Close

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Ch[ng_ Control Bo[r^ & M__tings

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AlsoknownasTheChangeadvisoryboard(CAB) deliverssupporttothe ChangeManagement teambyapprovingrequested changesandassistingintheassessmentandprioritizationofchanges. ThisbodyisgenerallymadeupofITandBusinessrepresentativesthatinclude:the ChangeManager,Usermanagersandgroups,technicalexperts,possiblethird partiesandcustomers(ifrequired)

ChangeControlMeetings
Achangecontrolboardisresponsibleformeetingandreviewingthechange requestsandapprovingorrejectingthosechangerequests. Allchangecontrol board decisions are documented and communicated to the stakeholders for information and follow-up actions.

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Project Monitoring and Control

5.4 V_rify S]op_

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Overview

VerifyScopeistheprocessofformalizingacceptanceofthe completedprojectdeliverables.Verifyingscopeincludesreviewing deliverableswiththecustomerorsponsortoensurethattheyare completedsatisfactorilyandobtainingformalacceptanceof deliverablesbythecustomerorsponsor

Inputs
1. 2. 3. 4. Projectmanagement plan Requirements documentation Requirements traceabilitymatrix Validateddeliverables 1.

Toolsand Techniques
Inspection 1. 2. 3.

Outputs
Accepteddeliverables Changerequests Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 123

V_rify S]op_ [n^ Insp_]tion

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VerifyScopeistheprocessofformalizingacceptanceofthecompletedprojectdeliverables.Verifying scopeincludesreviewingdeliverableswiththecustomerorsponsortoensurethattheyarecompleted satisfactorilyandobtainingformalacceptanceofdeliverablesbythecustomerorsponsor. Scopeverificationdiffersfromqualitycontrolinthatscopeverificationisprimarilyconcernedwith acceptanceofthedeliverables,whilequalitycontrolisprimarilyconcernedwithcorrectnessofthe deliverablesandmeetingthequalityrequirementsspecifiedforthedeliverables.QCprocessprecedes VerifyScopeprocess.Incasetherearenoadditionalrisks,these2processcanbeperformedparallel.

QualityControl

VerifyScope

Inspection:includesactivitiessuchasmeasuring,examining,andverifyingtodeterminewhetherworkand deliverablesmeetrequirementsandproductacceptancecriteria. Inspectionsaresometimescalledreviews,productreviews,audits,andwalkthroughs InspectionInvolves:


Comparingthebaselinespecificationsandapprovedchangestotheactualprojectresults. Determiningthelikelihoodthatremainingdeliverableswillbecompletedasprojected. Identifyingactionsneededtoensureworkresultswillmeetspecifications,scope,schedule,andbudgetgoals.

Preventionoverinspection.Oneofthefundamentaltenetsofmodernqualitymanagementstatesthatqualityis planned,designed,andbuiltinnotinspectedin.Thecostofpreventingmistakesisgenerallymuchlessthanthecost ofcorrectingthemwhentheyarefoundbyinspection

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Project Monitoring and Control

Insp_]tion R_ports Compon_nts

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Dependency Project baseline and status comparison Overall project status Change recommendations Scope and methodology of the inspection

Description The comparison of the baseline specifications, schedules, and budgets to the actual project results for the project phase or deliverable. A discussion of whether the project as a whole is on track, or whether it is likely to deviate in some way from the project plans. Based on the inspection result, you may want to recommend changes that will be needed in order to meet specifications, scope, or schedule and budget goals. Explains what the audit attempted to prove, how it went about proving it, what measurements were used to determine conformance to requirements, and what assumptions or limitations influenced the way that data was collected.

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5.5 Control S]op_

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Overview

ControlScopeistheprocessofmonitoringthestatusoftheproject andproductscopeandmanagingchangestothescopebaseline. Controllingtheprojectscopeensuresallrequestedchangesand recommendedcorrectiveorpreventiveactionsareprocessedthrough thePerformIntegratedChangeControlprocess

Inputs
1. 2. 3. 4. 5. Projectmanagement plan Workperformance information Requirements documentation Requirements traceabilitymatrix OPA 1.

Toolsand Techniques
VarianceAnalysis 1. 2. 3. 4. 5.

Outputs
Workperformance measurements OPAupdates Changerequests Projectmanagement planupdates Projectdocument updates

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Project Monitoring and Control

Monitor S]op_

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Whatdeliverableswerecalledforintheplantodate? Whatdoesthecustomerexpecttodate? Whatdoesthecustomerexpectattheconclusion? Willwebeabletodeliverwhatthecustomerexpects?

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V[ri[n]_ @n[lysis
Aquantifiabledeviationawayfromabaseline

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ScheduleVariance comparesplannedandactualperformance,notincludingcost CostVariance comparesdeviationsfromthebudget OthersVariances includescope,resources,quality,risk

Identifyvariance
Formalstatusreview Earnedvaluemanagement(EVM)

Assessimpact Identifycause Evaluatecorrectiveactionoptions

FavorableandunfavorableVariances Analyzethemagnitudeofthevariance
Aheadofscheduleandoverbudgetmaybegood BehindscheduleandunderbudgetmaybeOK Aheadofscheduleandunderbudgetmaybegood Whetherfavorableorunfavorable reportandevaluate

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6.6 Control S]h_^ul_

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Overview

ControlScheduleistheprocessofmonitoringthestatusofthe projecttoupdateprojectprogressandmanage changestotheschedulebaseline.

Inputs
1. 2. 3. 4. Projectmanagement plan Projectschedule Workperformance information OPA 1. 2. 3. 4. 5. 6. 7. 8.

Toolsand Techniques
Performancereviews Varianceanalysis Projectmanagement software Resourceleveling Whatifscenario analysis Adjustingleadsandlags Schedulecompression Schedulingtool 1. 2. 3. 4. 5.

Outputs
Workperformance measurements OPAupdates Changerequests Projectmanagement planupdates Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 160

S]h_^ul_ P_rform[n]_ M_[sur_m_nt

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Anytechniqueusedtodeterminehowtheprojectis performingintermsoftimeascomparedtoitsplanned performance. Indicateshowmuchvarianceexistsbetweentheactual workcompletedandtheworkscheduled. Performancemeasurementtechniquesinclude:


ScheduleVariance(SV). SchedulePerformanceIndex(SPI). Trendanalysis. Varianceanalysis.

Determinesiftheschedulevarianceispotentially detrimentaltotheprojectandifyouneedtotake appropriatecorrectiveactions.


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How to Control th_ Proj_]t S]h_^ul_

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Guidelines Developandimplementaschedulechangecontrolsystem. Evaluatechangerequests. Useperformancemeasurementtechniquestocompareactual scheduleperformancetoplannedperformance. Analyzetheresultsofyourperformancemeasurements. Identifyanddocumentcorrectiveactiontotake. Revisecost,schedule,orqualitybaselinestoreflectchanges. Useperformancemeasurementtechniquestomonitorthechanges. Documentlessonslearned. Example:ElementaryreadingcourseproductionhasanSPIof.80.

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7.3 Control Costs

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Overview

ControlCostsistheprocessofmonitoringthestatusofthe projecttoupdatetheprojectbudgetandmanagingchangesto thecostbaseline.

Inputs
1. 2. 3. 4. Projectmanagement plan Projectfunding requirements Workperformance information Organizationalprocess assets 1. 2. 3.

Toolsand Techniques
Earnedvalue management Forecasting Tocomplete performanceindex (TCPI) Performancereviews Varianceanalysis Projectmanagement software 1. 2. 3. 4. 5. 6.

Outputs
Workperformance measurements Budgetforecasts OPAupdates Changerequests Projectmanagement planupdates Projectdocument updates

4. 5. 6.

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Project Monitoring and Control

E[rn_^ V[lu_

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EarnedValue:
InsimpletermsEVrepresentsthevalueearnedforevery dollarspendontheproject.Itassumesthatallcostsonthe projectareincurredtocreateadditionalvalue EVisdefinedasaprojectmanagementtechniquefor measuringprojectprogressinanobjectiveway

EVpromisesto
Improvethedefinitionofprojectscope Preventscopecreep Communicateobjectiveprogresstostakeholders Keeptheprojectteamfocusedonachievingprogress

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E[rn_^ V[lu_ M[n[g_m_nt

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Term

OldName

Whatisit?

PV(PlannedValue)

BCWS(BudgetedCostof WorkSchedule) BCWP(BudgetedCostof WorkPerformed)

Amount ofworkbudgeted tilltostatusdate Budgetedvalueofwork completedtilltostatus date

EV(EarnedValue)

AC(ActualCost)

ACWP(ActualCostofWork Amountofmoneyspend Performed) tilltostatusdate

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Ex[mpl_

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Module A B C MonthlyBurnRatePlan Months Scheduled Activities Budget Requirements Jan 5 $5,000

Activities 10 10 5

Schedule JanFeb FebMar Apr

Cost $10,000 $10,000 $5,000

Feb 10 $10,000

Mar 5 $5,000

Apr 5 $5,000

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Ex[mpl_ (Cont )
Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000

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Apr 5 $5,000

StatusDate WorkPerformanceInformation CompletedActivities Timesheets&Expenses Jan 5/5 Feb 9/10 Jan $5,500 Feb $9,000

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Ex[mpl_ (Cont )
Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000
StatusDate

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Apr 5 $5,000

WorkPerformanceInformation CompletedActivities Timesheets&Expenses Jan 5/5 Feb 9/10 Jan $5,500 Feb $9,000

Term PV AC EV $15,000 $14,500 $14,000

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V[ri[n]_s to [pprov_^ Bu^g_t

CertSchool.com

Name
SV(ScheduleVariance) CV(CostVariance) SPI(SchedulePerf.Index) CPI(CostPerf.Index)

Formula
SV=EV PV CV=EV AC SPI=EV/PV CPI=EV/AC

Whatisit?
ve valuesmeansschedule overrun ve valuesmeanscostoverrun >1isgood >1isgood

Shortcutstoremembertheseformulas: Forall4formulas,righthandsideof=startswithEV VariancemeansandIndexmeans/ PVisassociatedwithscheduleformulasandACisassociatedwithcostformulas

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Ex[mpl_ (Cont )

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WorkPerformanceInformation Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000
StatusDate

Apr 5 $5,000

CompletedActivities Timesheets&Expenses

A 5/5 B 9/10 Jan $5,500 Feb $9,000

Term PV AC EV $15,000 $14,500 $14,000

SV=EVPV CV=EVAC SPI=EV/PV CPI= EV/AC

$14000 $15000 $14000 $14500 $14000/$15000 $14000/$14500

$1000 $500 0.93 0.965

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4 S]_n[rios of FOREC@STING

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AspirantsareaskedtoprovideForecastintheexam,basedona Scenariospresentedinthequestion.Thereare4possiblescenarios toprovideforecast: Start Finish.OriginalplanBAC


StatusDate WorkCompleted=EV,Moneyspend=AC

NeedtoProvideforecastforthisremainingofwork OriginalplanfortheprojectwasBAC.(BudgetatCompletion) NewforecastedvalueisEAC.(EstimateAtCompletion)

1. 2. 3. 4.

ReEstimatetheremainingwork. Remainingworkcanbeperformedasperoriginalplan RemainingworkcanbecompletedatsameCostPerformance Index(CPI) RemainingworkcanbecompletedatsameCostandSchedule PerformanceIndices(CPI*SPI)

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R_-_stim[tion Ex[mpl_

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YouareanITProjectmanagerforaprojectworthof$25,000 budget.Youhaveplanned$15,000workforaparticular period.Aftercompletingtheplannedperiodyouhave completedcertainportionoftheworkworthof$14,000by spending$14,500.YouhavecalculatedCPIas.965andSPIas .93.Withmorethan7%ofvarianceinthescheduleyoulost confidenceinyouroriginalestimationandsecuredyour sponsorapprovalforareestimation.Yourengineeringteam hasprovidedanestimationof$12,000fortheremaining work.Inthisscenariowhatwouldbe thetotalcostofthe projectwhenitiscompleted? Understandtheproblemscenario.Solutionsarein4th slide fromhere
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R_m[ining work [s p_r origin[l pl[n Ex[mpl_

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YouareanITProjectmanagerforaprojectworthof$25,000 budget.Youhaveplanned$15,000workforaparticular period.Aftercompletingtheplannedperiodyouhave completedcertainportionoftheworkworthof$14,000and actuallyspend$14,500.Afterachievingthefirstmilestone thingsareprettyclearandyouareconfidentthatremaining workcanbecompletedasperoriginalplan.Inthisscenario, whatwouldbe thetotalcostoftheprojectwhenitis completed? Understandtheproblemscenario.Solutionsarein3rd slide fromhere

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Project Monitoring and Control

R_m[ining work [s p_r ]urr_nt ]ost p_rform[n]_

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YouareanITProjectmanagerforaprojectworthof$25,000 budget.Youhaveplanned$15,000workforaparticular period.Aftercompletingtheplannedperiodyouhave calculatedCPIas.965.Afterachievingthefirstmilestone thingsareprettyclearandyouaresurethatcurrentcost performancewouldcontinuetotheend.Inthisscenario, whatwouldbe thetotalcostoftheprojectwhenitis completed? Understandtheproblemscenario.Solutionsarein2nd slide fromhere

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R_m[ining work [s p_r ]urr_nt ]ost [n^ s]h_^ul_ p_rform[n]_

CertSchool.com

YouareanITProjectmanagerforaprojectworthof$25,000 budget.Youhaveplanned$15,000workforaparticular period.Aftercompletingtheplannedperiodyouhave completedcertainportionoftheworkworthof$14,000and actuallyspend$14,500.Afterachievingthefirstmilestone thingsareprettyclearandyouaresurethatcurrentcostand scheduleperformanceswouldcontinuetotheend.Inthis scenario,whatwouldbe thetotalcostoftheprojectwhenit iscompleted? Understandtheproblemscenario.Solutionsareinnext2 slides

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For_][sting

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Scenarios Re estimation RemainingworkperformedatOriginalBudgetedrate RemainingworkPerformedatthepresentCPI Remainingworkconsidered bothSPIandCPI

EstimationAtCompletion(EAC) =AC+Newestimate forremainingwork =AC+BAC EV =BAC/CPI =AC+[(BAC EV)/CPIxSPI]

OtherFormulasconsideredinforecasting
EstimationToComplete(ETC)=EAC AC VarianceAtCompletion(VAC)=BAC EAC

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Ex[mpl_ (For_][sting)
Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000
StatusDate

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Apr 5 $5,000

WorkPerformanceInformation CompletedActivities Timesheets&Expenses A 5/5 B 9/10 Jan $5,500 Feb $9,000

CurrentReportingStatus PV=$15,000 AC=$14,500 EV=$14,000 SV= $1000,SPI=0.93 CV=$500CPI=0.965

Scenario 1 2 3 4

EstimationAtCompletion(EAC) AC+Newestimate forremainingwork AC+BAC EV BAC/CPI AC+[(BAC EV)/CPIxSPI] =14,500+assumingnewest.is12,000 =26,500 =14500+25000 14000=25,500 =25,000/.965=25,907 =14500+[2500014000/.965*.93] =26757

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Solv_ th_ pro\l_m1?

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Youareprojectmanagerforaconstructionprojectwith $1.2mapprovedbudget.Foraparticularperiodthe PV=600,000andyourSPIis1.08andCPIis.89. Calculatefollowingvalues: 1. EV= 2. AC= 3. SV= 4. CV= 5. EACforall3scenariosotherthanreestimation scenario 6. VACforabove3scenarios
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Pro\l_m 1: Solution

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1. 2. 3. 4.

GivenBAC=1,200,000,PV=600,000,SPI=1.08,CPI=0.89 EV=SPI*PV(asweknowSPI=EV/PV) EV=600000*1.08=648,000 AV=EV/CPI(asweknowCPI=EV/AC) AC=648,000/0.89=729,000 SV=EV PV=648,000 600,000=48,000 CV=EV AC=648,000 729,000= 81,000 5.1EAC(Scenario2)=AC+(BAC EV) =729,000+(1,2000,000 648,000)=1,281,000 5.2EAC(Scenario3)=BAC/CPI=1,200,000/0.89=1,348,000 5.3EAC(Scenario4)=AC+(BACEV)/CPI*SPI 729,000+552,000/(.89*1.08)=729K+552k/.9612 729,000+574,000=1,303,000 VAC=BAC EAC;(81K,148K,103Karerespectivevariances)

6.

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Solv_ th_ pro\l_m2?

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Youareprojectmanagerforaconstructionprojectwith $100Kapprovedbudget.ForcertainperiodPV=20K, EV=25K,AC=25K. Calculatefollowingvalues: 1. SPI= 2. CPI= 3. SV= 4. CV= 5. EACforall3scenariosotherthanreestimation scenario 6. VACforabove3scenarios
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Problem2:Solution

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Given:BAC=100,000,PV=20,000;EV=25K,AC=25K
1. 2. 3. 4.

SPI=EV/PV=25/20=1.25 CPI=EV/AC=25/25=1 SV=25 20=5,000 CV=25 25=0

5.1Scenario2EAC=AC+(BACEV)=25k+100k25k=100,000 5.2Scenario3 EAC=BAC/CPI=100k/1=100,000 5.3Scenario4EAC= AC+(BACEV)/CPI*SPI =25k+(75k/1.25)=25K+60K=85,000 VAC=BACEAC 6.1Varianceasperscenario5.1shownabove=0 6.2Varianceasperscenario5.2shownabove=0 6.3Varianceasperscenario5.3shownabove=15,000
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P_rform[n]_ R_porting T_]hniqu_s

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Technique Varianceanalysis Trendanalysis Earnedvalue performance

Description Comparingactualprojectperformancetoprojectedperformance. Inspectingprojectperformanceoveraperiodoftimetodetermineif performanceisincreasingordecreasing. Comparingprojectedperformancetoactualperformance.

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To-Compl_t_ P_rform[n]_ In^_x (TCPI)

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Anindicatoroftheusageofresourcesfortheremainderof theproject. TCPI=Remainingwork/Remainingprojectbudget. TCPI(BAC)=(BAC EV)/(BAC AC). TCPI(EAC)=(BAC EV)/(EAC AC). TCPIvaluecaneitherbe>or<1whencomparedwithCPI. IfTCPIis>1,theprojectteamshouldbeutilizedinacareful manner. IfTCPIis<1,theprojectteamcanbeutilizedinalenientway.

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8.3 P_rform Qu[lity Control

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Overview

PerformQualityControlistheprocessofmonitoringand recordingresultsofexecutingthequalityactivitiestoassess performanceandrecommendnecessarychanges

Inputs
1. 2. 3. 4. 5. 6. 7. Projectmanagement plan Qualitymetrics Qualitychecklists Workperformance measurements Approvedchange requests Deliverables OPA
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Toolsand Techniques
Causeandeffect diagrams Controlcharts Flowcharting Histogram Paretochart Runchart Scatterdiagram Statisticalsampling Inspection Approvedchange requestsreview

Outputs
1. 2. 3. 4. 5. 6. 7. Qualitycontrol measurements Validatedchanges Validateddeliverables OPAupdates Changerequests Projectmanagement planupdates Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 206

Wh[t is Qu[lity Control

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Quality control isaprocessemployedtoensureacertainlevelof quality inaproductor service.Thebasicgoalofquality control istoensurethattheproducts,services,or processesprovidedmeetspecificrequirementsandaredependable,satisfactory,and fiscallysound. Essentially, quality control involvestheexaminationofaproduct,service,orprocessfor certainminimumlevelsof quality.Qualitycontrolactivitiesidentifycausesofpoor processorproductqualityandrecommendand/ortakeactiontoeliminatethem
Ifaproblemisidentified,thejobofa quality control teamorprofessionalmayinvolvestopping productiontemporarily.

Usually,itisnotthejobofa quality control teamorprofessionaltocorrect quality issues. Typically,otherindividualsareinvolvedintheprocessofdiscoveringthecauseof quality issuesandfixingthem. Oncesuchproblemsareovercome,theproduct,service,orprocesscontinuesproductionor implementationasusual.

Often,qualitycontrolisconfusedwithqualityassurance.QualityControlinvolves evaluatingaproduct,activity,process,orservice.Bycontrast,qualityassuranceis designedtomakesureprocessesaresufficienttomeetobjectives. QualityControl measurementsarekeyinputsforQualityAssurancetoimplementthesuggestions

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QC t_rms

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Prevention:keepingerrorsoutoftheprocessand Inspection:keepingerrorsoutofthehandsofthecustomer. Attributesampling:theresulteitherconformsordoesnotconformand Variablessampling:theresultisratedonacontinuousscalethatmeasures


thedegreeofconformity

Tolerances:specifiedrangeofacceptableresults)and Controllimits:thresholds,whichcanindicatewhethertheprocessisoutof
control

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10 QC Tools & T_]hniqu_s

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TheQCToolsaresimplestatisticaltoolsusedforproblemsolving.KaoruIshikawa hasstatedthatthese7toolscanbeusedtosolve95percentofallproblems.The seventoolsandtechniquesareknownasIshikawassevenbasictoolsofquality

1. 2. 3. 4.
5. 6. 7.

Cause&EffectDiagram ControlCharts Flowcharting Histogram ParetoCharts RunCharts ScatterDiagram

Other3QCtoolsinPMBOKGuide StatisticalSampling Inspection ApprovedChangeRequestsReview

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V[ri[n]_ & C[us_s

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Variance:Thequantifiabledevianceoramountofdeparturefrom expectedresultsforanyproductorresult,includingquality, schedule,cost. Sourcesorreasonsfordeviationsfromtheexpectedstandard. Twotypes:


Random:Alwayspresentinwork.Unavoidable. Special:Unusual,sporadicoccurrences.

Resultofsomeunexpectedcircumstance. Notcausedbyaflawintheoverallproductionprocess.

Example:Variancesinthemetropolitanbusschedules.
Randomcauses:Weatherandtrafficconditions. Specialcause:Minortrafficaccident.

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Th_ 6-Sigm[ Limit

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Thegoalofsixsigmaisvaluecreationthroughqualityimprovement.Theprocess bywhichthisisattainedwouldinvolvetrainingofemployeesintoolsand techniquesaswellasaproblemsolvingprotocol.Sixsigmamakesuseofquality engineeringmethodswithinadefinedproblemsolvingstructuretoidentifyand eliminateprocessdefectsandsolveproblemsandinthisimproveyield, productivity,operatingeffectiveness,customersatisfaction,etc. Incontrolcharts,the6Sigmalimitreferstosixstandarddeviationsbetweenthe processmeanandthenearestspecificationlimit. Whenmeasuringdeviations,practicallynoitemwillfailtomeetthespecification. Whenprocessesfalloutsidethelimit,adjustmentsmustbemade. SigmaValues
OneSigma=68.26 TwoSigma=95.46 ThreeSigma=99.73 SixSigma=99.99

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Control Ch[rts

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Control Ch[rt Out of Control


ProcessOutofControlcanoccurin2situations

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OutsideofUCLorLCL:Aspertheexpectationsprocessoccurrencesshouldbeeithersideofthemeansand withinthelimitsofUCLandLCL.Anoccurrenceoutsideoftheselimitsistreatedoutofcontrol Ruleof7:SevenconsecutiveoccurrencesononesideofthemeanshowsinstabilityandalsotreatedasOut ofControl.Ruleof7iskindofTriggerorsymptomsforOutofcontrolforscenarioabove


IndicatesInstability UCL UCL

LCL

LCL

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Project Monitoring and Control

Histogr[m

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Ahistogramisaverticalbarchartshowinghowoftenaparticularvariablestate occurred. Eachcolumnrepresentsanattributeorcharacteristicofaproblem/situation.The heightofeachcolumnrepresentstherelativefrequencyofthecharacteristic. Thistoolhelpsillustratesthemostcommoncauseofproblemsinaprocessbythe numberandrelativeheightsofthebars. Belowisanexampleofanunorderedhistogramshowingcausesoflatetimeentry byaprojectteam.

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 210

P[r_to Di[gr[ms

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ParetodiagramsareconceptuallyrelatedtoParetosLaw,whichholdsthatarelativelysmallnumberofcauseswill typicallyproduceamajorityoftheproblemsordefects 80/20Rule:Contendsthat80percentofproblemsordefectsarecommonlydueto20percentofcauses.


Paretodiagramsarehistogramsusedtorankcausesofproblemsinahierarchicalformat. Variablesareorderedbyfrequencyofoccurrence.

100% 80% 60%

40% 20% 0% A B C D Causes of Failure E

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Cumulative Percentage of Failures

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Project Monitoring and Control

Run Ch[rt

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Similartoacontrolchartwithoutdisplayedlimits,arunchartshows thehistoryandpatternofvariation.Arunchartisalinegraphthat showsdatapointsplottedintheorderinwhichtheyoccur. Runchartsshowtrendsinaprocessovertime,variationovertime, ordeclinesorimprovementsinaprocessovertime. Trendanalysisisperformedusingrunchartsandinvolves mathematicaltechniquestoforecastfutureoutcomesbasedon historicalresults. Trendanalysisisoftenusedtomonitor


Technicalperformance.Howmanyerrorsordefectshavebeen identified,andhowmanyremainuncorrected? Costandscheduleperformance.Howmanyactivitiesperperiodwere completedwithsignificantvariances?

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 211

S][tt_r Di[gr[m

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Ascatterdiagramshowstherelationshipbetweentwovariables.Thistool allowsthequalityteamtostudyandidentifythepossiblerelationship betweenchangesobservedintwovariables. Dependentvariablesversusindependentvariablesareplotted.Thecloser thepointsaretoadiagonalline,themorecloselytheyarerelated. Belowimageshowsthecorrelationbetweenthetimecardsubmissiondate andthenumberofdaystravelingpermonth.

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Project Monitoring and Control

St[tisti][l S[mpling

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Atechniqueusedtodeterminecharacteristicsof anentirepopulationbasedonactual measurementofitsrepresentativesample. Producesaprocessthatdoesnotrequire inspectionofeveryitem. Example:Pollingorganizations.


Askquestionsofasmall,randomsample. Answersgivenbythesamplegroupsuggesthowan entiregroupmayfeelregardinganissue.
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QC Outputs

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QualityControlMeasurements:Qualitycontrolmeasurementsare thedocumentedresultsofqualitycontrolactivitieswhicharekey inputsofQualityAssurancemeasurements ValidatedChanges:Anychangedorrepaireditemsareinspected andwillbeeitheracceptedorrejectedbeforenotificationofthe decisionisprovided.Rejecteditemsmayrequirerework. ValidatedDeliverables:Agoalofqualitycontrolistodeterminethe correctnessofdeliverables.Theresultsoftheexecutionquality controlprocessesarevalidateddeliverables.Validateddeliverables areaninputtoVerifyScope(5.4)forformalizedacceptance.

DirectandManage ProjectExecution Output:Deliverables


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QualityControl Output:Validate Deliverables

VerifyScope Output:Accepted Deliverables

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Project Monitoring and Control

10.5 R_port P_rform[n]_

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Overview

ReportPerformanceistheprocessofcollectinganddistributing performanceinformation,includingstatus reports,progressmeasurements,andforecasts

Inputs
1. 2. 3. 4. 5. Projectmanagement plan Workperformance information Workperformance measurements Budgetforecasts Organizationalprocess assets 1. 2. 3. 4.

Toolsand Techniques
Varianceanalysis Forecastingmethods Communication methods Reportingsystems 1. 2. 3.

Outputs
Performancereports Organizationalprocess assetsupdates Changerequests

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 266

V[ri[n]_ @n[lysis

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Varianceanalysisisanafterthefactlookatwhatcauseda differencebetweenthebaselineandtheactual performance. Commonstepsare:


Verifythequalityoftheinformationcollectedtoensurethatitis complete,consistentwithpastdata,andcrediblewhen comparingwithotherprojectorstatusinformation, Determinevariances,comparingtheactualinformationwiththe projectbaselineandnotingalldifferencesbothfavorableand unfavorabletotheprojectoutcome. Determinetheimpactofthevariancesintheprojectcostand scheduleaswellasinotherareasoftheproject Ifapplicable,analyzethetrendsofthevariancesanddocument anyfindingsaboutthesourcesofvariationandtheimpactarea
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Project Monitoring and Control

For_][sting M_tho^s

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Forecasting Methods Category Time series methods Casual or econometric methods Judgmental methods

Description Estimation of future outcomes are based on historical data. Forecasting the factors that may influence the identified variables, by combining economic theories and statistical information. Forecasting by intuitive methods and probability estimates.

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P_rform[n]_ r_ports

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Performancereportsorganizeandsummarizetheinformationgathered, andpresenttheresults ofanyanalysisascomparedtotheperformancemeasurementbaseline. Reportsshouldprovidethe statusandprogressinformation,atthelevelofdetailrequiredbyvarious stakeholders,asdocumentedinthecommunicationsmanagementplan. Commonformatsforperformancereportsinclude


Barcharts Scurves Histograms.

Performancereportsareissuedperiodicallyandtheirformatmayrange fromasimplestatusreporttomoreelaboratereports. Asimplestatusreportmightshowonlyperformanceinformationsuchas percentcomplete,orstatusdashboardsforeacharea(e.g.,scope, schedule,cost,andquality)


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Project Monitoring and Control

T[\ul[r P_rform[n]_ R_port

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Atabularandsimpleperformancereport showsthestatusofWBSelements

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El[\or[t_^ St[tus R_port s[mpl_

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Sectionstonotice: Projectstatus FinancialPerformance ProjectScore ProjectPerformance againstdeliverables Statusitems Activitiesfornextperiod Issues, recommendedresolutions RiskSummary

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Project Monitoring and Control

11.6 Monitor [n^ Control Risks

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Overview

MonitorandControlRisksistheprocessofimplementingrisk responseplans,trackingidentifiedrisks,monitoringresidual risks,identifyingnewrisks,andevaluatingriskprocess effectivenessthroughouttheproject

Inputs
1. 2. 3. 4. Riskregister Projectmanagement plan Workperformance information Performancereports 1. 2. 3. 4. 5. 6.

Toolsand Techniques
Riskreassessment Riskaudits Varianceandtrend analysis Technicalperformance measurement Reserveanalysis Statusmeetings 1. 2. 3. 4. 5.

Outputs
Riskregisterupdates Organizationalprocess assetsupdates Changerequests Projectmanagement planupdates Projectdocument updates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 308

Th_ Proj_]t Risk R_spons_ @u^it


Theprojectriskresponseauditprocessexamines:
Theteam'sabilitytoidentifyrisks. Theeffectivenessofriskresponseplans. Theperformanceofriskowners.

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Auditmaybeperformedby:
Athirdparty. Theproject'sriskofficer. Qualifiedpersonnel.

Riskresponseauditforaproject

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Project Monitoring and Control

How to Monitor [n^ Control Proj_]t Risks

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Guidelines Whenaneventaffectstheprojectobjectives,consulttherisk responseplantoidentifyrisksandtriggers. Monitortheenvironmentforanynewrisks. Monitortheeffectivenessoftheriskresponse,contingency,and fallbackplans. Dealwithunforeseenrisksbysystematicallyplanningareasoned response. Updateprojectdocumentationaschangesareindicated. Managethecontingencyreserve. Example:Thedriverssafetyvideoprojectexperiencesstaffing changesandtheteamdevelopsalternativestrategiesinresponseto therisk.
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12.3 @^minist_r Pro]ur_m_nts

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Overview

AdministerProcurementsistheprocessofmanaging procurementrelationships,monitoringcontract performance,andmakingchangesandcorrectionsasneeded

Inputs
1. 2. 3. 4. 5. 6. Procurement documents Projectmanagement plan Contract Performancereports Approvedchange requests Workperformance information 1. 2. 3. 4. 5. 6. 7.

Toolsand Techniques
Contractchange controlsystem Procurement performancereviews Inspectionsandaudits Performancereporting Paymentsystems Claimsadministration Recordsmanagement system 1. 2. 3. 4.

Outputs
Procurement documentation Organizationalprocess assetsupdates Changerequests Projectmanagement planupdates

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ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: 335

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Project Monitoring and Control

@^minist_r Pro]ur_m_nts

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Thisprocessfocusesonmanagingprocurementrelationships, monitoringcontractperformance,andmakingchangesand correctionsasneeded. Boththebuyerandthesellerwilladministertheprocurement contract toensurethatbothpartiesmeettheircontractual obligationsandthattheirownlegalrightsareprotected. TheAdministerProcurementsprocessensuresthatthesellers performancemeetsprocurementrequirementsandthatthebuyer performsaccordingtothetermsofthelegalcontract. Manyorganizationstreatcontractadministrationasan administrativefunctionseparatefromtheprojectorganization. Whileaprocurementadministratormaybeontheprojectteam, thisindividualtypicallyreportstoasupervisorfromadifferent department.

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Th_ Duti_s of th_ Pro]ur_m_nts @^ministr[tor

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Theprocurementsadministratorsdutiesinclude:
Actingascomplianceofficer. Interpretingcontractspecifications. Monitoringsellerperformance. Integratingsubcontractedelements. Managingchangerequests. Resolvingdisputesandmanagingpayments. Dealingwithcontractbreach.

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Project Monitoring and Control

]ontr[]t ]h[ng_ ]ontrol syst_m


Ch[ng_s to Contr[]t T_rms

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Acontractchangecontrolsystemdefinestheprocessbywhichtheprocurementcanbe modified. Itincludesthepaperwork,trackingsystems,disputeresolutionprocedures,andapproval levelsnecessaryforauthorizingchanges. Thecontractchangecontrolsystemisintegratedwiththeintegratedchangecontrolsystem.


Description These are the non-substantive and most common changes to the way the contract is administered. This is a substantive change to the contract requirements such as a new deadline or a change to the product requirements. This is an additional agreement related to the contract but negotiated separately. These are changes that the seller may have caused through action or inaction. A contract may be terminated due to seller default or for customer convenience. Defaults are typically due to non-performance such as late deliveries, poor quality, or non-performance of some or all project requirements.

Change Administrative changes Contract modification Supplemental agreement Constructive changes Termination of contract

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Pro]ur_m_nt P_rform[n]_ R_porting

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ProcurementPerformanceReviews:Aprocurementperformancereview isastructuredreviewofthesellersprogresstodeliverprojectscopeand quality,withincostandonschedule,ascomparedtothecontract.


Itcanincludeareviewofsellerprepareddocumentationandbuyer inspections,aswellasqualityauditsconductedduringsellersexecutionofthe work. Theobjectiveofaperformancereviewistoidentifyperformancesuccessesor failures,progresswithrespecttotheprocurementstatementofwork Reviewsmaytakeplaceasapartofprojectstatusreviewswhichwould includekeysuppliers

Inspectionsandaudits:canbeconductedbythebuyerduringexecution oftheprojecttoverifycomplianceinthesellersworkprocessesor deliverables. PerformanceReporting:Performancereportingprovidesmanagement withinformationabouthoweffectivelythesellerisachievingthe contractualobjectives

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Project Monitoring and Control

Pro]ur_m_nt M[n[g_m_nt Syst_ms


PaymentSystems:

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Paymentstotheselleraretypicallyprocessedbytheaccountspayablesystem ofthebuyeraftercertification ofsatisfactoryworkbyanauthorizedpersonontheprojectteam.Workassignmentandcompletioncanbe trackedbyWorkAuthorizationSystem Allpaymentsshouldbemadeanddocumentedinstrictaccordancewiththetermsofthecontract. Contestedchangesandpotentialconstructivechangesarethoserequestedchangeswherethebuyerand sellercannotreachanagreementoncompensationforthechange,orcannotagreethatachangehas occurred.Thesecontestedchangesarevariouslycalledclaims,disputes,orappeals. Claimsaredocumented,processed,monitored,andmanagedthroughoutthecontractlifecycle,usuallyin accordancewiththetermsofthecontract.Ifthepartiesthemselvesdonotresolveaclaim,itmayhaveto behandledinaccordancewithalternativedisputeresolution(ADR)typicallyfollowingprocedures establishedinthecontract.Settlementofallclaimsanddisputesthroughnegotiationisthepreferred method. Arecordsmanagementsystemisusedbytheprojectmanagertomanagecontractandprocurement documentationandrecords.Itconsistsofaspecificsetofprocesses,relatedcontrolfunctions,and automationtoolsthatareconsolidatedandcombinedaspartoftheprojectmanagementinformation system.Thesystemcontainsaretrievablearchiveofcontractdocumentsandcorrespondence

ClaimsAdministration:

RecordsManagementSystem

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@^minist_r Pro]ur_m_nts R_sults


ProcurementDocumentation

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Theprocurementcontractwithallsupportingschedules,requestedunapprovedcontract changes,andapprovedchangerequests. Sellerdevelopedtechnicaldocumentationandotherworkperformanceinformationsuchas deliverables,sellerperformancereports,warranties,financialdocumentsincludinginvoices andpaymentrecords,andtheresultsofcontractrelatedinspections.

Correspondence:
Contracttermsandconditionsoftenrequirewrittendocumentationofcertainaspectsof buyer/sellercommunications,suchastheneedforwarningsofunsatisfactoryperformance andrequestsforcontractchangesorclarification.

Paymentschedulesandrequests.
Allpaymentsshouldbemadeinaccordancewiththeprocurementcontracttermsand conditions.

Sellerperformancevaluationdocumentation.
Sellerperformancevaluationdocumentationispreparedbythebuyer.Suchperformance evaluationsdocumentthesellersabilitytocontinuetoperformworkonthecurrentcontract Thesedocumentscanformthebasisforearlyterminationofthesellerscontractordetermine howcontractpenalties,fees,orincentivesareadministered.

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Project Closing

Closing Pro]_ss Group O\j_]tiv_s

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Obtainfinalacceptanceoftheprojectdeliverablesbyworkingwiththe sponsorand/orcustomer Transfertheownershipofdeliverablestotheassignedstakeholders Obtainfinancial,legal,andadministrativeclosureusinggenerallyaccepted practices Distributethefinalprojectreportincludingallprojectclosurerelated information,projectvariances,andanyissues Collatelessonslearnedthroughcomprehensiveprojectreview Archiveprojectdocumentsandmaterial Measurecustomersatisfactionat theendoftheprojectbycapturing customerfeedback

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12.4 Clos_ Pro]ur_m_nts

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Overview

CloseProcurementsistheprocessofcompletingeachproject procurement.ItsupportstheCloseProjectorPhaseprocess

Inputs
1. 2. Projectmanagement plan Procurement documentation 1. 2. 3.

Toolsand Techniques
Procurementaudits Negotiatedsettlements Recordsmanagement system 1. 2.

Outputs
Closedprocurements Organizationalprocess assetsupdates

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Project Closing

Pro]ur_m_nts [r_ ]los_^

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Whenacontractiscompleted Whenacontractisterminatedbeforetheworkis completed AdministrativeClosureVs ProcurementClosure


MultiplePhases=multipleAdministrativeClosures MultipleContracts=multipleProcurementClosures OneandOnly=ProjectClosure

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Pro]ur_m_nt @u^its

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Aformalevaluationofboththeseller'sperformanceofthe contract,andtheeffectivenessoftheprocurementprocessitself. Establishesarecordthatmaybeusedtoshapeprocurement practicesinothercontractsforprojects. Example:Evaluatingthesecondgradephonicstextbooksellers. NegotiatedSettlements:


Inallprocurementrelationshipsthefinalequitablesettlementofall outstandingissues,claims,anddisputesbynegotiationisaprimary goal. Wheneversettlementcannotbeachievedthroughdirectnegotiation, someformofalternativedisputeresolution(ADR)includingmediation orarbitrationmaybeexplored. Whenallelsefails,litigationinthecourtsistheleastdesirableoption.
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Project Closing

Closur_ Do]um_nt[tion

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Procurementfile.Acompletesetofindexedcontractdocumentation, includingtheclosedcontract,ispreparedforinclusionwiththefinalproject files. Deliverableacceptance.Thebuyer,usuallythroughitsauthorized procurementadministrator,providesthesellerwithformalwrittennoticethat thedeliverableshavebeenacceptedorrejected.Requirementsforformal deliverableacceptance,andhowtoaddressnonconformingdeliverables,are usuallydefinedinthecontract. Lessonslearneddocumentation.Lessonslearned,whathasbeen experienced,andprocessimprovementrecommendationsshouldbe developedfortheprojectfiletoimprovefutureprocurements.

Canprovideusefulinformationforfuturecontracts. Helpsothersintheorganizationapplythelearningto theirsituations


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4.6 Clos_ Proj_]t or Ph[s_

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Overview

TheprocessoffinalizingallactivitiesacrossalloftheProject ManagementProcessGroupstoformallycompletetheprojector phase

Inputs
1. Project Management Plan 2. Accepted Deliverables 3. Organizational Process Assets 1.

Toolsand Techniques
Expert Judgment

Outputs
1. FinalProducts,service,or Resulttransition 2. OPAUpdates

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Project Closing

Clos_ Ph[s_ or Proj_]t

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CloseProjectorPhaseistheprocessoffinalizingall activitiesacrossalloftheProjectManagementProcess Groupstoformallycompletetheprojectorphase Reviewinformationfromthepreviousphaseclosuresto ensurethatallprojectworkiscompletedandtheproject hasmetitsobjectives ReviewtheProjectManagementtoensurecompletion beforeconsideringtheprojectclosed IfProjectisterminatedbeforecompletioninvestigateand documentthereasons
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@^ministr[tiv_ Closur_

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Involves:
Verifyinganddocumentingprojectresultstoformalize projectorphasecompletion. Gatheringandupdatingprojectdocumentationand relevantrecordsandreports. Ensuringthatthephaseorprojectrequirementswere metandformalacceptancewasgranted.

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Project Closing

Proj_]t R_]or^s to @r]hiv_

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Projectmanagementplan Performancerecords Contractdocumentation Communications Projectdatabases Staffevaluations Lessonslearned Acceptancedocumentation

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L_ssons L_[rn_^ R_ports

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WhatWentWell Continue WhatdidntwentWell Stop Whatnewthingsweneedtoincorporate Start ConductedbyPM,Sponsorandentireteam


Documentsthatcapturesalientandhelpful informationabouttheworkdoneinaprojectora projectphase. Compiledforthebenefitofupcomingprojectphases andfutureprojects

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Project Closing

Consi^_r[tions of L_ssons L_[rn_^

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Schedulinglessonslearned Conflictmanagementlessonslearned Sellerslessonslearned Customerlessonslearned Strategiclessonslearned Tacticallessonslearned

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Clos_out M__tings
Sessionsheldatendofprojectorphase. Involves:
Discussingthework. Capturinglessons.

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Mayincludestakeholders,teammembers,projectresources,and customers. Example:Closeoutmeetingsforfiresafetyequipmentinspections. Thestakeholders,projectteammembers,andrepresentativesfrom thefiremarshal'sofficewill:


Reviewrecords. Completeandsigninspectioncertificates. Review,approve,andsignplansforevacuationprocedures. Documentinspectionsandtestingoffiresafetyequipment.

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