2012 May Print

CertSchool PMP | CAPM Training Slides
ProjectManagementTraining
ForPMPandCAPMCertification Training
Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
CourseOutline
ExaminingProjectManagementFramework InitiatingaProject PlanningProjectWork
Part1:Baselines Part2:ManagementPlans
ExecutingProjectWork MonitoringandControllingProjectWork ClosingtheProject

Copyright 2012 CertSchool.com. All rights reserved. PMP, CAPM, PMBOK, PMI are Registered Marks of Project Management Institute, Inc.
MeettheInstructor
AdityaChinni,
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)
AboutCertSchool
CertSchoolisaccreditedbyPMIasaGlobalRegisteredEducation Provider AsapartofRegisteredEducationProvidersqualificationprocess CertSchoolpassedarigorousreviewofcontent,material,design anddeliveryofeducationproductsbyPMI CertSchoolwasfoundedin2003totrainprojectmanagersto effectivelymanageprojects CertSchoolswiderangeoftrainersincludeprojectmanagers, functionalmanagerandgeneralmanagersandindustryexperts fromfortune10companies.
Abouttheexam:PMPEligibility
Meet 3requirementstoappearfortheexam Education PMExperience
7500HoursofProject ManagementPractice
PMEducation
HighSchool
Minimum5Yearsof totalexperience 4500HoursofProject ManagementPractice
35Hours
Degree
Minimum3Yearsof totalexperience
35Hours
Abouttheexam:CAPMEligibility
Anyoneofthefollowing2requirements PMExperience & HighSchool
1500HoursofProject ManagementPractice
Education
PMEducation OR
23Hours
PMPApplicationCost
PMI Member? Fee: $139
Yes
No
MEMBER Exam Fee: $405 ReExam Fee: $275
NON MEMBER Exam Fee: $555 ReExam Fee: $375
CAPMApplicationCost
PMI Member? Fee: $129
Yes
No
MEMBER Exam Fee: $225 ReExam Fee: $150
NON MEMBER Exam Fee: $300 ReExam Fee: $200
PMPExamFormat
200Questions(FourOption,MultipleChoice),includes25pretestquestions
Thatmeans175Questionsformarking
CertSchoolsuggeststhatyoushouldsecureatleast70%(123/175)ormore. 4HoursMaximumTimeAllowed 1m12Sec.perQ

Domain Initiation Planning Execution Monitoringand control Closing Total %ofQuestions 13% 24% 30% 25% 8% 100% #ofQuestions 23 42 52 44 14 175 70% 16 29 36 31 10 123
CAPMExamquestions distribution
150Questions(FourOption,MultipleChoice)includes15pretestquestions 3HoursMaximumTimeAllowed
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
Examtakingstrategy
1. Inround1skimthroughall200questions,answereasiestquestionsandfilter outremainingquestionsinto2groupscalledHarderquestionsand Unknownquestions 2. Inround2spendsometimeandanswerallhardquestions. 3. Inround3attemptUnknownquestionsanduselittlebiteducatedguesswork Mostimportantly,trackyourprogressbyusingaroughsheetprovidedbythe testingcenter;seebelowexample Round1 (EasyQuestions) 110 1120 191200
Round2
(Harderquestions)
Round3 (ImpossibleQuestions)
QuestionFormats
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
QuestionFormats(cont.)
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)
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
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
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
ProjectManagementBodyofKnowledge, (PMBOKGuide) FourthEdition

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.
Process(Inputs,ToolsandTechniques,andOutputs)
Processdescribestheactionoftakingsomethingthrougha setofproceduresorstepstoachieveaprespecifiedproduct, result,orservice. Processeshave3components
Inputs ToolsandTechniques Outputs
TT
PMBOKGuide4th edition,has42processesintotal
Phasesvs.ProcessGroups
ItsnotuncommontoconfusetheInitiating, Planning,Executing,Monitoringand ControllingandClosingProcessGroupsofa projectwithprojectphases. Aprojectphaseisapieceofamultiphase projectand allfiveprocessgroupsareoften appliedtoeachprojectphase.
HowtomanageProject&Phases
ProjectLifecycle:
Dividedinto phases
PMI ProcessGroups areappliedto eachphaseof theproject
Copyright2012CertSchool.com.Allrightsreserved. ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage6 PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
10
PhasetoPhaseRelationships
Sequential:Forinstance,phase twostartsafterthecompletion ofphaseone Overlapping:Forinstance, phasetwocanbeginwhile phaseoneisstillinprocess Iterative:Thisapproachis typicallyusedinan environmentcharacterizedbya constantlyevolving environmentoruncertainty, suchasresearch
P1
P2
Overlapping
P3
P1 P2
P3
P3
PhaseGate
Areviewprocessundertakentodetermineifa projectislikelytosucceed. Attheendofaprogramorprojectphase,an authorizedgroupreviewstheworkofthephase andeitherapprovestocontinuetheprojector makesthedecisiontostopfutureworkonthe initiative Projectsthatarenotlikelytosucceedare killedearly. Canalsobecalledkillpoint
11
4LifeCycles
Corporate or Business Life Cycle
Policy Identify Planning Needs Project Realization Conception Product In Service Dispose
Product Life Cycle

Feasibility Acquisition Operations Dispose
Concept
Develop
Implement
Closeout
Project Life Cycle
R_[îng Ex_r]is_ ProcessGroupDefinitions

Initiation Planning Execution MonitoringandControl Closing
ReferPMBOKGuide Page: 39
12
R_[îng Ex_r]is_ NineKnowledgeAreas

Integration
Scope Time Cost Quality Human Resource Communications Risk Procurement
ReferPMBOKGuide Page: 411 415
R_[îng Ex_r]is_ ProcessChart

42projectmanagement processesaremappedinto a2dimensionalchartwith5 Processgroupsascolumns and9knowledgeareasas rows. Masteringprocesschartis keytowardstheexam
13
ProjectFramework
Project,Programs,Portfolios,PMOs,and OrganizationalStructures ProfessionalResponsibilities InterpersonalSkills
ProjectDefinition
Aprojectisaninitiativethathasthefollowing characteristics:
Hasaspecificpurposeandcreates specificresults Hasdefinitestartandfinishdates
Couldbeprogressivelyelaborated Aprojectcouldoccurasaresultofabusiness opportunityormarketneed
Copyright2012CertSchool.com.Allrightsreserved. ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
14
OperationsMgmt.
Maintenanceorsupportactivitieswhichareneeded tomanagethedevelopedprojectareknowas Operations.Operationsactivitiesarerepetitiveand ongoing. Operationsmanagementdealswiththeongoing repetitivedaytodayactivitiesofrunningthe business. Incontrast,Projectmanagementdealswiththe creationofuniqueObjective,inastipulated timeframe.
ProjectManagement
Projectmanagementistheapplication ofknowledge,skills,tools,and techniquestoprojectactivitiestomeet theprojectrequirements. Projectmanagementisaccomplished throughtheappropriateapplication andintegrationofthe42project managementprocesses Managingprojectstypicallyinvolves managingallconstraints
6
15
DeliveryalignedtoOrganization
Mission
Portfolio
Strategy
Program Project
Projects
Organizationsarebuildonamission.Severalstrategiesaredevelopedtoachieve thatmission.Toachieveeachstrategyseveralprojectareinitiated. APortfolioiscreatedtoachieveeachstrategy

Project,Program,PortfolioInteractionFigure
ProjectA1 ProgramA ProjectA2 ProjectB1 ProgramB Portfolio SubProgram ProjectB2 ProjectC1 Problem? LargeProject
SubPortfolio anditshierarchy
16
PortfolioandPortfolioManagement
Portfoliomanagementinvolvesagroupof projects(and/or)programsthathavesome degreeofinteractivityrelatedtoanoverall strategicbusinessgoal. Theinteractivitycouldberelatedtofunding, performingorganization,ortypeofproject.
ProgramandProgramManagement
Aprogramencompasses:
Projectsofsimilarwork(or) Correlatedactivitiesmanagedinacoordinatedway toattainbenefitsthatcouldnotbeachieved separately.
Thiscouldalsoinvolvetheprograminteracting withoperationsasaresultoftheintegrationofa program(anditsproject)intooperations.

17
ProjectManagementOffice
PMOisasupportorganizationthathelpsall projectsintheorganization.Supportactivities include:
HomeroomforProjectManagers Acentralizedareafordocumentation,templates, trainingandprocesssupport Acentralizedareaforauditingandgovernance Consolidatesstatusreportsofallprojects
ProjectStakeholders
Anypersonororganizationwhohasabusiness interestintheoutcomeofaprojectisa stakeholder Thereare2Categoriesofstakeholders:
PositiveStakeholdersarethosewhoseinterestsare positivelyimpactedbytheproject NegativeStakeholdersarethosewhoseinterestsare negativelyimpactedbytheproject
Example:TheNewYorkYankeesproposed$800million Bronxstadium,2006.Stakeholdersinclude:Staff, management,owners,MajorLeagueBaseball,Chambersof commerce,Engineers,architects,andconstructionworkers, Fans,Localresidents,Localandstatewideelectedofficials,
18
GeneralCharacteristicsofa ProjectLifeCycle
Stakeholderinfluences,uncertainties,and risksare:
Highatprojectstart. Lowatprojectend.
Costsofachangeare:
Lowatprojectstart. Highatprojectend.
Copyright2012CertSchool.com.Allrightsreserved. ImpactofVariableBasedonProjectTimeimagefrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage17 PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
GeneralCharacteristicsofa ProjectLifeCycle
Bellcurveofthecost:
Atthebeginning,costandstaffinglevelsarelow. Reachestothepeakduringtheexecution Dropsrapidlyuponprojectcompletion.
Copyright2012CertSchool.com.Allrightsreserved. ImpactofVariableBasedonProjectTimeimagefrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage17 PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
19
ProgressiveElaboration
Projectrequirementsaredevelopedoverthe periodofthetime.Highlevelscopeiscreated intheearlystageswhichwillbedetailedin laterstagesoftheproject Theconceptofaddingmoredetailstothe initialrequirementsasprojectprogressesis calledProgressiveelaboration
Detailisaddedtoplansinprogressiveelaboration Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
OrganizationalProcessAssets
OrganizationalProcessAssetscanbeinputstomanyprocesses.These inputscouldincludeanyorallprocessrelatedassets.Thesecanbe categorizedas
ProcessesandProcedures CorporateKnowledgeBase
Examples: process definitions templates organization communication needs criteria to complete (close) projects financial infrastructure issue management change control processes risk management work authorization
20
OrganizationalProcessAssets (cont.)
Acorporateknowledgebaseaddsthefollowing informationtoorganizationalprocessassets:
Processdata Projectfilesandrecords Lessonslearned Historicalinformation Configurationmanagementdata Databases Financialdata
EnterpriseEnvironmentalFactors
Enterpriseenvironmentalfactorscanbeinputstomost oftheprocesses.Theycanbeinternalorexternal variablestotheprojectsuchasinformationsystems andcompanypoliciesandprocedures. Thesefactorspotentiallyinfluencethesuccess Examplesareorganizationalstructureandculture, businessinfrastructuresystems,governmentstandards, personnelpolicies,thebusinessmarket,stakeholder toleranceforrisk,andPMIS(ProjectManagement InformationSystems).
21
ThePMICodeofEthicsand ProfessionalConduct
PMIexpectsallProjectManagementPractitionerstoadhereto4 valuesanddoonlyRIGHTandHONARABLEthings PMIexpectsallProjectManagementPractitioners tosethigh standardsinallaspectsoftheirlivesatwork,athome,andin servicetotheprofession PMIbelievesthatPractitionersadheringtoconductbecome betterProjectManagementprofessionals PMIs4coreValuestobeconsideredare:

Responsibility Respect Fairness Honesty
http://www.pmi.org/en/AboutUs/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx
Copyright2012CertSchool.com.Allrightsreserved. BasedonPMICodeofEthicsandProfessionalConduct At:http://www.pmi.org/en/AboutUs/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
1.Responsibility
ResponsibilityisPractitioners dutytotakeownershipforthedecisionstheymake orfailtomake,theactionstheytakeorfailtotake,andtheconsequencesthat result Standardsconsideredare: Practitionersshouldmakedecisionsinthebestinterestsofsociety,public safety,andtheenvironment Practitionersacceptsonlythoseassignmentsthatareconsistentwiththeir background,experience,skills,andqualifications Practitionersfulfillthecommitmentsthattheyundertake Practitionerswilldoexactlyaswhattheysaythattheywilldo Whenerrorsoromissionsaremade,Practitionerswilltakeownershipand makecorrectionspromptly Practitionersprotectproprietaryorconfidentialinformation Practitionersreportunethicalorillegalconducttoappropriatemanagement
22
2.Respect
ItisPractitionersdutytoshowhighregardtothemselvesand resourcesentrustedtothem.Resourcesmayincludepeople, money,reputation,thesafetyofothers,andnaturalor environmentalresources. StandardsInclude
Practitionerslistentootherspointsofview,seekingtounderstand them Practitionersapproachdirectlythosepersonswithwhomtheyhavea conflictordisagreement Practitionersconducttheirnormalbusinessinaprofessionalmanner, evenwhenitisnotreciprocated
Practitionersavoidthemselvesengagingingossipandavoidmakingnegative remarkstoundermineanotherpersonsreputation
Practitionernegotiateinagoodfaithanddonotexercisethepowerof theirexpertiseorpositiontoinfluencethedecisionsoractionsof othersinordertobenefitthempersonallyatothersexpense

3.Fairness
FairnessisPractitionersdutytomakedecisionsandactimpartiallyand objectively.Theirconductmustbefreefromcompetingselfinterest, prejudice,andfavoritism Standardsinclude:
Practitionersdemonstratetransparencyintheirdecisionmakingprocess Practitionersprovideequalaccesstoinformationtothosewhoareauthorized tohavethatinformation Practitionersproactivelyandfullydiscloseanyrealorpotentialconflictsof interesttotheappropriatestakeholders Practitionersrefrainfromdecisionmakingprocesswhenthereisarealconflict ofinterestuntiltheymadefulldisclosureoftheconflictofinterest Practitionersdonothireorfire,rewardorpunish,orawardordenycontracts basedonpersonalconsiderations,includingbutnotlimitedto,favoritism, nepotism,orbribery Practitionersdonotdiscriminateagainstothersbasedon,butnotlimitedto, gender,race,age,religion,disability,nationality,orsexualorientation
23
4.Honesty
HonestyisPractitionersdutytounderstandthetruthandactina truthfulmannerbothintheircommunicationsandintheirconduct StandardsInclude:
Practitionersshouldbetruthfulintheircommunicationsandintheir conduct Practitionersshouldprovideaccurateinformationinatimelymanner Practitioners makecommitmentsandpromises,impliedorexplicit,in goodfaith Practitioners strivetocreateanenvironmentinwhichothersfeelsafe totellthetruth Practitionersdonotengageinorcondonebehaviorthatisdesignedto deceiveothers Practitionersdonotengageindishonestbehaviorwiththeintention ofpersonalgainorattheexpenseofanother
InterpersonalSkills
Abilitytoworkharmoniouslyandefficiently. Interpersonalskillsinclude:
Leadership. Teambuilding. Motivation. Communication. Influencing. Decisionmaking. Politicalandculturalawareness. Negotiation.
24
LeadershipSkills
Accordingtotheideaaneffectiveleaderisapersonwhodoesthefollowing:
Createsaninspiringvisionofthefuture. Motivatesandinspirespeopletoengagewiththatvision. Managesdeliveryofthevision. Coachesandbuildsateam,sothatitismoreeffectiveatachievingthevision.
Leadershipbringstogethertheskillsneededtodothesethings.
Leadershipcapabilitiesarecriticalatthebeginningofaprojectorphase. Motivateandinspireteammembersforhigherprojectperformance.
TeamBuildingSkills
Teambuildingreferstoawiderangeofactivitiestoimprovingteam performance.Teambuildingispursuedviaavarietyofpractices,andcan rangefromsimplebondingexercisestocomplexsimulationsandmultiday teambuildingretreatsdesignedtodevelopateam(includinggroup assessmentandgames) Teambuildingactivitiesconsistof
Tasks
establishgoals define,andnegotiateroles andprocedures
AndProcesses
interpersonalbehaviorwithemphasisoncommunication conflictmanagement motivation leadership
TeamBuildingisanOngoingprocesstoworkcollaboratively
25
MotivationSkills
Whenpeoplearenotmotivated,it'sunlikelythatthey'llachievetheir truepotential.Ontheotherhand,whenpeoplearemotivated,work seemseasy.Motivatedpeoplehaveapositiveoutlook,they'reexcited aboutwhatthey'redoing,andtheyknowthatthey'reinvestingtheir timeinsomethingthat'strulyworthwhile Inshort,motivatedpeopleenjoytheirjobsandperformwell ProjectManagersgoalistokeeptheteamfeelingmotivatedand inspired Althoughthereareliterallyhundredsoftacticsthatcanmotivatethe team,it'simportanttorealizethatthereareonlytwomaintypesof motivation extrinsicandintrinsic.
Extrinsicmotivationiswhenyouuseexternalfactorstoencourageyourteamtodo whatyouwant.Payraises,timeoff,bonuschecks,and,onthenegativeside,the threatofjobloss,areallexamplesofextrinsicmotivators. Intrinsicmotivationisinternal.It'sabouthavingapersonaldesiretoovercomea challenge,producehighqualitywork,orbeonateamwithpeopleyoulikeand trust.Peoplewhoareintrinsicallymotivatedbytheirworkgetagreatdealof satisfactionandenjoymentfromwhatthey'redoing.

CommunicationSkills
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.
26
InfluencingSkills
Influencingisastrategyofsharingpowerandrelyingoninterpersonalskillstogetothersto cooperatetowardscommongoals. Usingthefollowingguidelinescaninfluenceteammembers:
Leadbyexample,andfollowthroughwithcommitments Clarifyhowadecisionwillbemade Useaflexibleinterpersonalstyle,adjustthestyletotheaudience Applyyourpowerskillfullyandcautiously.Thinkoflongtermcollaboration
Influentialmanagersusepersuasioninsteadofcoercion.
Influenceisbasedon: Credibility. Trust. Support. Collaboration.
Managersinfluencebydemonstrating:
Goodlisteningandrespondingskills. Goodsenseofhumor. Abilitytoexpressoneself. Beingsociableandoptimistic. Anobviousenthusiasmfortheirwork.
DecisionMakingSkills
Decisionsaretheresultofcollaborationand negotiation.Therearefourbasicdecisionstyles normallyusedbyprojectmanagers:
Command Consultation Consensus Coinflip(random).
Therearefourmajorfactors thataffectthedecisionstyle: timeconstraints,trust,quality, andacceptance.

27
SixPhasesofDecision Making
Phase ProblemDefinition ProblemSolutionGeneration (Finding alternatives) IdeastoAction (Choose an alternative) SolutionActionPlanning (Implement an alternative) SolutionEvaluationPlanning EvaluationoftheOutcomeand Process Involves Exploringandclarifyingtheproblemorsituation. Brainstormingideas,solutions,oralternativesforthe problem. Defineevaluationcriteria,rateprosandconsof alternatives,selectbestsolution. Involvekeyparticipantstogainacceptanceand commitmenttomakingthesolutionwork. Postimplementationanalysis,evaluation,andlessons learned. Evaluatinghowwelltheproblemwassolvedandproject goalsachieved.(Extensionofpreviousphase)
NegotiationSkills
Negotiationisadialoguebetweentwoormorepeopleorparties,intendedto reachanunderstanding,resolvepointofdifference,orgainadvantageinoutcome ofdialogue,toproduceanagreementuponcoursesofaction,tobargainfor individualorcollectiveadvantage,tocraftoutcomestosatisfyvariousinterestsof twopeople/partiesinvolvedinnegotiationprocess Approachestonegotiation
WinWinNegotiationorFindingafaircompromise DistributiveNegotiationthetermdistributivemeans,thereisagivingout.Byitsmerenature, thereisalimitinthethingbeingdistributedordividedamongstthepeopleinvolved. IntegrativenegotiationThewordintegrativemeanstojoinseveralpartsintoawhole. Conceptually,thisimpliessomecooperation,orajoiningofforcestoachievesomething together. Theadvocate'sapproachIntheadvocacyapproach,askillednegotiatorusuallyservesas advocateforonepartytothenegotiationandattemptstoobtainthemostfavorable outcomespossibleforthatparty.
Badfaithnegotiation:isaconceptinnegotiationtheorywherebypartiespretend toreasontoreachsettlement,buthavenointentiontodoso,forexample,one politicalpartymaypretendtonegotiate,withnointentiontocompromise,for politicaleffect.
Copyright2012CertSchool.com.Allrightsreserved. AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421 PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
28
OrganizationalStructure
Matrix Functional Weak Balanced Strong Projectized
FunctionalOrganization
AFOisahierarchywhereeachemployeehasone clearsuperior.Staffmembersaregroupedby specialty,suchasproduction,marketing, engineeringatthetoplevel. Specialtiesmaybefurthersubdividedinto functionalorganizations,suchasmechanicaland electricalengineering. Eachdepartmentinafunctionalorganizationwill doitsprojectworkindependentofother departments.
29
ProjectizedOrganization
Inaprojectizedorganization,teammembersare oftencolocated,mostoftheorganizations resourcesareinvolvedinprojectwork,and projectmanagershaveagreatdealof independenceandauthority. Projectizedorganizationsoftenhave organizationalunitscalleddepartments,but thesegroupseitherreportdirectlytotheproject managerorprovidesupportservicestothe variousprojects.
MatrixOrganization
Matrixorganizationsareablendoffunctionaland projectizedcharacteristics.
Weakmatricesmaintainmanyofthecharacteristicsofa functionalorganization,andtheprojectmanagerroleis moreofacoordinatororexpediterthanthatofatrue projectmanager. Strongmatriceshavemanyofthecharacteristicsofthe projectizedorganization,andcanhavefulltimeproject managerswithconsiderableauthorityandfulltimeproject administrativestaff. Whilethebalancedmatrixorganizationrecognizesthe needforaprojectmanager,itdoesnotprovidetheproject managerwiththefullauthorityovertheprojectand projectfunding.
30
FunctionalOrganization
Otherorganizational Hierarchy
Functional Manager Maintenance Otherwork Staff 50%
30%
ElaboratedFunctionalmanagerorganization. Bluecolor:Otherworkinthedepartment GreenColorProjectwork StaffcanbeparttimeontheProject ProjectManagementandCoordinationisdone byFunctionalmanager
WeakMatrixOrganization
Functional Manager Maintenance Otherwork Staff 50%
30%
ElaboratedFunctionalmanagerorganization. Bluecolor:Otherworkinthedepartment GreenColorProjectwork StaffcanbeparttimeontheProject Functionalmanagermanagestheproject Projectcoordinationisdonebythestaff
Coordinator
31
BalancedMatrixOrganization
Functional Manager Maintenance Otherwork Staff Project Manager
50%
ElaboratedFunctionalmanagerorganization. Bluecolor:Otherworkinthedepartment GreenColorProjectwork Functionalmanagersharesthemanagement authoritieswithPM OneofthestaffofFunctionalManagermanages theprojectandsharesauthoritywithfunctional manager Projectcoordinationisdonebythestaff
Coordinator
StrongMatrixOrganization
Functional Manager Maintenance Otherwork Staff
Managerof PMs
Project Manager Coordinator
ElaboratedFunctionalmanagerorganization. Bluecolor:Otherworkinthedepartment GreenColorProjectwork StaffmostlyfulltimeontheProject Functionalmanagerinvolvementintheproject isveryminimal. Projectmanagermanagestheprojectandwill havegreaterindependenceovertheproject Projectcoordinationisdonebythestaff ProjectstaffnowstartreportingtoPMand dottedlinetoFM
32
ProjectizedOrganization
Project Director ProjectA ProjectB ProjectC
Other functional organization
ElaboratedFunctionalmanagerorganization. Bluecolor:Otherworkinthedepartment GreenColorProjectwork MostoftheorganizationisProjectorganizations Projectmanagermanagestheproject
Coordinator
33
34
Performprojectassessment
MeetwiththeSponsor,Customer,andOtherSubjectmatterexpertsto evaluateprojectfeasibility Assessingprojectteamscapabilitiestoperformtheproject Mostcommonlyfeasibilitywillbeperformedinfollowingareas:
Finances Operations Technology Politics Legalities Resources Time Geography
ThisfeasibilitystudyisdifferentfromProjectSelectionfeasibilitystudy. HereProjectManagerevaluatedPossibilitiestocompletetheproject
Questionsneedtobe evaluated
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?
35
ProjectSelection
ProjectSelectionCriteria:Theactofchoosingaprojectfromamongcompetingproposals. ProjectSelectionMethods:Anysystematicapproachusedtoanalyzethevalueofaproposed projectinordertochooseamongcompetingproposals. DecisionModels:2majorcategories
Description
Analyze the predicted value of the completed projects in different ways. May present the value in terms of: WeightedScoringModels BCR BenefitsCostRatio PaybackPeriod NPV NetPresentValue&IRR InternalRateofReturn ROI(ReturnonInvestment) EVA(EconomicValueAdd) Use different types of mathematical formulas and algorithms to determine the optimal course of action. Models in this section are LinearProgramming NonlinearProgramming DynamicProgramming IntegerProgramming Multiobjectiveprogramming
System
Benefit Measurement (Economical Models)
Constrained Optimization (Mathematical Models)
Aspirantswillnotbetestedindetailsofthesemodels.
HighLevelScope
Projectsponsors,CustomersidentifyProjecthighlevelscopeandprovide toProjectManagementteam.WhichwillbeincludedinProjectCharter
HighLevelscopestatementshelpestablishtheboundariesoftheproject Highlevelscope canbederivedfromdefinedProjectObjectives HighlevelscopealsoincludesListofDeliverables Highlevelscopealsoidentifiesoutofscopeconditionsbydescribingwhatdeliverables willnotbecreated Itisagoodpracticetoprovidealistoforganizationsthose areinscopeand organizationsthose areoutofscope
Basedonhighlevelprojectscope,ProjectteamdevelopsdetailedScope statementinPlanningphaseoftheproject.Gradualdetailingofthescope iscalledProgressiveElaboration DuringProgressiveelaboration,highlevelscopewillbeexplainedindetail butnewitemswillnotbeaddedandnochangesaremade
36
HighLevelRisk
Projectsponsors,CustomersmustprovideExternalProjectRisks, Constraints.AccordingtoPMI,Risksaredocumentedandmanagedina documentcalledRiskRegister.RiskRegisterwillbeinitiatedinearlystages oftheprojectandupdated,maintainedthroughouttheProjectlifecycle.
HighLevelRiskIdentificationhelpestablishimplementationapproach Bylookingintohistoricaldata,andpreviousexperiencestoidentifyHighlevelRisks HighLevelRiskIdentificationalsohelpstounderstandcurrentenvironment
ProjectteamwillconductdetailedRiskIdentificationprocesstoaddevery risktotheRiskRegister.LaterProjectteamwillperformQualitativeand QuantitativeanalysistofilterrisksandprovideRiskResponsestrategies ByidentifyingHighLevelRisksandResponsestrategiesduringtheearly phasesofproject,allowsprojectteamtotakeGO/NOGOdecisions
ITTO R_[îng Ex_r]is_ El_m_nts of
4.1DevelopProjectCharter
I,TT,O
Contract ProjectStatementof Work BusinessCase EEF,OPA ExpertJudgment ProjectCharter
I I I I TT O
37
BusinessCaseDevelopment
Aprojectbusinesscaseisaprojectjustification documentthatoutlinesaprojectproposalandplanfor authorizedfunding,resources,andimplementation. Theobjectiveofaprojectbusinesscaseistojustify:
Whatbenefitandcosttheprojectbringstothebusiness Whytheprojectisimportantandshouldbefunded Wheretheprojectneedstobeimplemented Whentheprojectcanbeimplemented Whoisrequiredtoimplementtheproject Howtheprojectcanbeimplementedwithsuccess
BusinessCaseprocesslifecycle
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
38
ProjectStatementsofWork (SOW)
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
SalientfeaturesofCHARTER
ProjectCharterisadocumentthatformallyauthorizesandinitiatesa projectoraphase ProjectCharterdocumentsinitialrequirementsthatsatisfythe stakeholdersneedsandexpectations. Aprojectmanagerisidentifiedandassignedwhiletheprojectcharteris beingdeveloped ProjectCharterprovidestheprojectmanagerwiththeauthoritytoapply resourcestoprojectactivities. Projectsareauthorizedbysomeoneexternaltotheprojectsuchasa sponsor,PMO,orportfoliosteeringcommittee.Theprojectinitiatoror sponsorshouldbeatalevelthatisappropriatetofundingtheproject. ProjectSponsorwilleithercreatetheprojectcharterordelegatethatduty totheprojectmanager.Theinitiatorssignatureonthecharterauthorizes theproject. ProjectCharterlinkstheprojecttothestrategyandongoingworkofthe organization
39
ProjectCharterDocument
ProjectCharterdocumenthighlightsallhighlevelaspectsoftheprojectandprovides thejustificationtoundertakethisproject.MostofthesedetailsarecollectedfromSOW andinterviewingsponsor.Thedocumentshouldhavefollowingsections:
Projectpurposeand justification Measurableprojectobjectives Highlevelrequirements Highlevelprojectdescription Highlevelrisks
SummaryMileStoneSchedule SummaryBudget ApprovalRequirements ProjectManager SigningAuthority
10.1IdentifyStakeholders
I,TT,O
ProjectCharter ProcurementDocuments EEF,OPA StakeholderAnalysis Expertjudgment StakeholderRegister Stakeholder ManagementStrategy

40
SalientfeaturesofStakeholders
Stakeholdersarepersonsororganizationswhoareactively involvedintheprojectorwhoseinterestsmaybepositively ornegativelyaffectedbytheproject Followingaresomeexamplesofstakeholdersandtheir relationstotheproject
PMO PortfolioManager ProgramManager OperationsManagement FunctionalManagers Sellers/BusinessPartners
Customers /Users
Project
Sponsor
ProjectManagementTeam ProjectManager TeamMembers
24
StakeholderAnalysis
Stakeholderanalysisisatechniqueofsystematically gatheringandanalyzingquantitativeandqualitative informationtodeterminewhoseinterestsshouldbe takenintoaccountthroughouttheproject. Stakeholderanalysisgenerallyfollowsthesteps describedbelow..
1. IdentifyStakeholders 2. ClassifyStakeholdersusing oneofbelowmodels
Power/interest Power/influence Influence/Impact Others.
3. Analyzeandstrategizevarioussituations
249
41
StakeholderRegister& ManagementStrategy
Adocumentthatidentifiesstakeholdersofaproject withinformationthatincludestheiridentification, assessment,andstakeholderclassification.
Assessment of Potential Impact strategyto gainsupport

ByaddingaboveROWStothe stakeholderRegister,Stakeholder AnalysisMatrixisgenerated
Thestakeholdermanagementstrategydefinesanapproachtoincreasethesupportandminimize negativeimpactsofstakeholdersthroughouttheentireprojectlifecycle.Stakeholder
managementstrategyisrepresentedbyastakeholderanalysismatrix.
250
42
43
PlanningProjectWork
IdentifytheElementsofaProject ManagementPlan DevelopProjectManagementPlan Develop3Baselines (PlanningPart1) DevelopSubsidiaryManagementPlans (PlanningPart2)
ProjectManagementPlanComponents
KeyComponents ofaProjectManagementPlan SubsidiaryManagementPlans(MP) RequirementsMP ScopeMP,ScheduleMP,CostMP QualityMP,ProcessImprovementPlan HRMP,StaffingMP CommunicationsMP RiskMP ProcurementMP ConfigurationMP,ChangeMP In PlanningPart2abovemanagementplans willbecompleted. In PlanningPart1aboveBaselineswillbe completed. Baselines ScopeBaseline
(Scope Statement,WBS,WBSD)
ScheduleBaseline CostBaseline Combinationofabove3baselinesis calledPerformanceMeasurementBaseline
44
5.1CollectRequirements
I,TT,O
ProjectCharter StakeholderRegister Interviews FocusGroups FacilitatedWorkshops GroupCreativityTechniques GroupDecisionMakingTechniques QuestionnairesandSurveys Observations Prototypes RequirementsDocumentation RequirementsManagementPlan RequirementsTraceabilityMatrix
Requirementsgatheringtools
Interviews:isaconversationbetweentwopeople(theinterviewerand theinterviewee)wherequestionsareaskedbytheinterviewertoobtain informationfromtheinterviewee.Projectteamcancollectbetter requirementswithstructuredquestionpaper Focusgroups:Afocusgroupisaformofqualitativeresearchinwhicha groupofpeopleareaskedabouttheirperceptions,opinions,andattitudes towardsaproduct,orservice. Questionnairesandsurvey:isaresearchinstrumentconsistingofaseries ofquestionsandotherpromptsforthepurposeofgatheringinformation fromrespondents Observations:provideadirectwayofviewingindividualsintheir environmentandhowtheyperformtheirjobsortasksandcarryout processes.Observation,alsocalledjobshadowing Prototypes:isanearlysampleormodelbuilttotestaconceptorprocess ortoactasathingtobereplicatedorlearnedfromNonworking screenshotsarecalledmockupsorwireframes.
45
FacilitatedWorkshops
Requirementsgatheringworkshopswithcrossfunctionalteams.Beloware 2classicexamplesoftheseworkshops:
Qualityfunctiondeployment(QFD)isamethodtotransformuserdemands intodesignquality,todeploythefunctionsformingquality,andultimatelyto specificelementsofthemanufacturingprocess.asdescribedbyDr.Yoji Akao, whooriginallydevelopedQFD JADisaprocessusedintheprototypinglifecycletocollectbusiness requirementswhiledevelopingnewinformationsystemsforacompany.
GroupCreativityTechniques
Groupactivitiesorganizedwithinorganizationstoidentifyprojector productrequirementsforaproject.
GroupCreativityTechnique Brainstorming Nominalgrouptechnique (Brainstorming + Voting) TheDelphitechnique (Anonymous Brainstorming) (Similar to Agile Planning Poker) Description isagroupcreativitytechniquebywhichagrouptriestofinda solutionforaspecificproblembygatheringalistofideas NGTisadecisionmakingmethodtomakedecisionsquickly,as byavote,butwanteveryone'sopinionstakenintoaccount theexpertsanswerquestionnairesintwoormorerounds. Aftereachround,afacilitatorprovidesananonymoussummary oftheexpertsforecastsfromthepreviousroundaswellasthe reasonstheyprovidedfortheirjudgments.Thus,expertsare encouragedtorevisetheirearlieranswersinlightofthereplies ofothermembersoftheirpanel
46
DiagrammingTechniques
DiagrammingTechnique (GroupCreativityTechnique) Ideaormindmapping Description Ideascreatedthroughbrainstormingareconsolidatedintoamapthat reflectsthecommonality,differencesinunderstanding,andgeneration ofnewideas. Enablesthesortingofalargenumberofideascollectedduring brainstormingintodistinctcategoriesforreviewandanalysis.
Affinitydiagram
GroupDecisionMaking Techniques
Method Unanimity Description Everyoneinthegroupagreesona singlecourseofaction. Requiressupportfrommorethan 50%ofthemembersofthegroupto indicatetheselecteddecision. Thelargestbatchinthegroup decidesforthegroupevenifa majorityisnotachieved. Oneindividualmakesthedecision foranentiregroup. Selected out of Group of 10
Majority
Plurality
Dictatorship
47
RequirementsDocumentation
CollectedrequirementsarepresentedasRequirements documentation.Whichwillbetoverifytheproductattheendof phaseorproject. Therequirementsdocumentedmustbeunambiguous,and acceptabletokeystakeholders Componentsofrequirementsdocumentation:
BusinessNeed Projectobjectives Functionaland nonfunctionalrequirements Qualityrequirements Acceptancecriteria Supportandtrainingneeds AssumptionsandConstraints.
110
RequirementsManagementPlans

TherequirementsmanagementplanhelpstheProjectManager andteamanalyze,document,andmanagetheproject requirements. Theplanmayinclude:
Directionforplanning,tracking,andreportingrequirementactivities Directionforconfigurationmanagementactivitiesnotablyhowto initiatechangestotheproduct,service,orresult,howtoanalyzethe impactofthechanges,andchangeapprovalauthorization Directionforprioritizingrequirements Directionfordeterminingproductmetricsandusagerational Directionforthetraceabilitymatrix,specificallytherequirement attributestobeincludedinthematrixandtheotherproject documenttowhichtherequirementswillbetraced
48
TheRequirementsTraceability Matrix
Atabulardocumentthatlinkstheprojectorproductrequirementsto theiroriginandtracesthemthroughouttheprojectlifecycle. Linkseachrequirementtothe:
Businessandprojectobjectives. WBS. Productdesignanddevelopment. Testscenarios.
5.2DefineScope
I,TT,O
ProjectCharter RequirementsDocumentation OPA ProductAnalysis AlternativesIdentification Facilitatedworkshop ExpertJudgment
ProjectScopeStatement ProjectDocumentUpdates
49
ProductAnalysisTechniques
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
theScopeStatement
Theprojectscopestatementdescribes,indetail,the projectsdeliverablesandtheworkrequiredtocreatethose deliverables.Theprojectscopestatementalsoprovidesa commonunderstandingoftheprojectscopeamongproject stakeholders
o o o o o o o o o Projectobjectives Productdescription Projectrequirements Projectdeliverables Projectboundaries ProjectOutofScopeitems Productacceptancecriteria Projectconstraints Projectassumptions
50
5.3CreateWBS
I,TT,O
ProjectScopeStatement RequirementsDocumentation OPA Decomposition WorkBreakdownStructure WBSDictionary ScopeBaseline Projectdocumentupdates
HowtoDevelopaWork BreakdownStructure
TodevelopaWBS: 1. Gatherreferencematerialsandotherinputs. 2. Determinehowyouwillorganizeprojectwork. 3. Identifymajordeliverables. 4. Analyzeeachelementtodeterminewhetheritis sufficientlydecomposed. 5. BreakdowneachWBSelementtotheworkpackage level. 6. ValidateyourWBSusingabottomupapproach. 7. Useyourcodeofaccountstoassignacostcodeto eachelement
51
WorkPackage
LowestlevelcomponentoftheworkbreakdownstructureiscalledWork Package WorkpackagesareatlevelwhereCostandDurationscanbeestimated.
Mapsto project scope statement
Subdivides project workinto smaller pieces
Lastitemin thehierarchy iscalledWork Package
WBSStyles
DeliverablesBased FunctionalGroups Geographical TimePhased Mixed
52
DeliverablesbasedWBS
WBSDictionaryandRAM
WBSDictionary
BriefStatementofworkandTechnicalSpecifications Responsibleparties Contractualinformationandmilestones QualityRequirements Chargecodesorothercostinginformation AssociatedActivitiesorTasks Res1 Res2 Res3
WP1 X X X WP2 WP3 Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
ResponsibilityAssignmentMatrix
TheWBSisthefoundationfortheRAM
53
ScopeBaseline
Thescopebaselineisacomponentoftheproject managementplan.Componentsofthescopebaseline include:
Projectscopestatement.Theprojectscopestatementincludes theproductscopedescription,andtheprojectdeliverables,and definestheproductuseracceptancecriteria. WBS.TheWBSdefineseachdeliverableandthedecomposition ofthedeliverablesintoworkpackages. WBSdictionary.TheWBSdictionaryhasadetaileddescription ofworkandtechnicaldocumentationforeachWBSelement.
DevelopingProjectSchedules
CreateanActivityList CreateaProjectScheduleNetworkDiagram EstimateActivityResources EstimateDurationforProjectActivities DevelopaProjectSchedule IdentifytheCriticalPath OptimizetheProjectSchedule EstablishaScheduleBaseline
54
6.1DefineActivities
I,TT,O
ScopeBaseline EEF,OPA Decomposition RollingWavePlanning Templates ExpertJudgment
ActivityList ActivityAttributes MilestoneList

Decomposition,RollingWavePlan
Decomposition Decompositionreferstothe processofbreakingdownthe WBSelementintosmallerpieces calledactivities. Projectmanagershouldwork collaborativelywiththeproject teamandfunctionalmanagersto appropriatelybreaktheWBSinto manageableandmeasurable activities. RollingWavePlanning RollingWavePlanningreferstoa methodofprojectplanning whereneartermactivitiesare plannedindetailsandthemid termtolongtermactivitiesare plannedinlesserdetailed. Thismethodassumesthatthe neartermfutureismore predictableandtherearelittle knownfactsaboutthelonger termfuture.
55
Activities
Elementofprojectworkthatrequiresanactiontoproduce adeliverable. Haveanexpectedduration. Consumebudgetand/orhumanresources. Arenamedinverbnounformat. Example:Activitiesinacompanyproject.
Reviseusermanual. Makeasalespresentation. Developcode
Verb(Action) Noun(Deliverable)
Revise user manual

Expected duration determined by (whatever)
ActivityListandattributes
ActivityList
Milestones Milestone1 Milestone2 ActivityAttribute
PersonResponsible:Lisa Berg
ActivityList: (a) Itsalistofallactivitiesthat needtobeperformedto successfullyexecutethe project. (b) Eachactivityintheactivity listshouldhaveadequate andclearinformation.
MilestoneList: a) MilestoneareofZero Duration b) Milestonelistrepresents completionofasetofkey activity. c) Milestonesaregenerally deliverabledriven, occasionallytheycanbetime driven. d) Eg:Design,Build,Test,Deploy.
ActivityAttribute: Anyadditional informationaboutan activityisconsidered activityattribute. Eg:PersonResponsible, ActivityDependency, Activitylocation,etc..
56
6.2SequenceActivities
I,TT,O ActivityList,ActivityAttributes, MilestoneList, ProjectScopeStatement,OPA PrecedenceDiagrammingMethod(PDM) ScheduleNetworkTemplates DependencyDetermination ApplyingLeads&Lags ProjectScheduleNetworkDiagrams ProjectDocumentUpdates
PrecedenceRelationshipTypes
FinishtoStart
Theinitiationofthesuccessoractivity dependsuponthecompletionofthe predecessoractivity. Thecompletionofthesuccessoractivity dependsuponthecompletionofthe predecessoractivity. Theinitiationofthesuccessoractivity dependsupontheinitiationofthe predecessoractivity. Thecompletionofthesuccessoractivity dependsupontheinitiationofthe predecessoractivity.
FinishtoFinish
StarttoStart
StarttoFinish
57
TypesofActivityDependencies
Mandatory Discretionary External 1. Dependenciesthatare 1. Thesedependenciesare 1. Thesedependenciesare contractuallyrequired. determinedbythe usuallyoutsidethe 2. Thesedependenciesare projectteam. projectteamscontrol. identifiedbytheproject 2. Thesedependencies 2. Thesedependenciesare team. canbechangedif basedontheneedsof 3. Thesedependenciesare required. partiesoutsideofthe alsoreferredashard 3. Thesedependenciesare project. logic. alsoreferredtoas preferred,preferential orsoftlogic. 4. Thesedependenciesare reevaluatedwhenthe projectistobefast tracked.
Lead
Achangeinalogicalrelationshipthatallowsthesuccessoractivity tostartbeforethepredecessoractivityendsinanFSrelationship. Implementedwhenasuccessoractivityneedstobeacceleratedin ordertoshortentheoverallprojectschedule.
FSrelationshipwithlead Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
58
Lag
Adelayinalogicalrelationshipthatcausesthesuccessoractivityto startafterthelagtimeiscompletedinanFSrelationship. Example:CuringperiodafterCementroadispavedisalag. Successoractivitycantstartimmediately.
FSrelationshipwithlag Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
TypesofNetworkDiagrams
PrecedenceDiagramMethod(AON ActivityonNode)
GERT
ActivityA
ActivityB
ArrowDiagramMethod(AOA ActivityonArrow)
59
PrecedenceDiagrammingMethod (PDM)
Producesaprojectschedulenetworkdiagram thatusesrectangularboxes,ornodes,to representactivitiesandarrowstorepresent precedencerelationshipsbetweenactivities. Characteristics:
Readsfromlefttoright. Showsdurationinnodes. Createdmanuallyorwithsoftware. Reportagroupofrelatedactivitiesasanaggregate activity. Useallprecedencerelationshiptypes.
PrecedenceDiagrammingMethod (PDM)(Cont.)
Activity A B C D E F G H I J F D H I A B,F C, G D Predecessors
Aprojectschedulenetworkdiagramusingtheprecedencediagrammingmethod Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
60
6.3EstimateActivityResources
I,TT,O ActivityList,Activityattributes ResourceCalendars EEF,OPA Expertjudgment,AlternativesAnalysis PublishedEstimatingData BottomUpEstimating ProjectManagementSoftware ActivityResourceRequirements ResourceBreakdownStructure Projectdocumentupdates
ProjectResources
ListofallResourcesrequiredtoperformtheproject Includelabor,equipment,consultants,services, materials,facilities,supplies,andutilities Thereare3categoriesofresources:
WorkResources(Scheduled)Ex:HumanResources, Equipment MaterialResources(Consumables)Ex:Wood,Iron CostResources
FixedCosts(Lumpsumandsameinallsituations,irrespectiveof usage) VariableCosts(Dependsonamountofusage.Differentindifferent situationsEx:Travel)
61
ResourceRequirementsandRBS
ActivityResourceRequirements
Identifythetypesandquantitiesofresourcesrequired foreachactivityinaworkpackage. Theresourcerequirementsdocumentationforeach activitycanincludethebasisofestimateforeach resource,aswellastheassumptionsthatweremade indeterminingwhichtypesofresourcesareapplied, theiravailability,andwhatquantitiesareused
ProjectDocumentupdates
Activitylist,activityattribute..
ResourceBreakdownStructure(RBS)
ResourceBreakdownStructure
Project Resources Material Labor Equipment Supplies
Grade
SkillLevel
62
6.4EstimateActivityDurations
ActivityList,ActivityAttributes ActivityResourceRequirements ProjectScopeStatement,EEF,OPA AnalogousEstimating ParametricEstimating ThreePointEstimates ReserveAnalysis
I,TT,O
ActivityDurationEstimates Projectdocumentupdates
Analogous&BottomUp
Analogous BottomUp
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.
63
Parametric&Threepoint
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) O+4ML+P 6 Limitations: .Forsmallervariancetheendresultwillbe closer tomostlikelyvalue.
InputstoprepareSchdule
RequirementsScopeStatementWBS,WBSD ActivityList
ActivityList ScheduleNetworkDiagrams ActivityResourcesRequirements ActivityDurationEstimates
Project Schedule
64
6.5DevelopScheduleProcess
ProjectScopeStatement ActivityList,ActivityAttributes ProjectScheduleNetworkDiagrams ActivityResourceRequirements ActivityDurationEstimates ResourceCalendars,EEF,OPA ScheduleNetworkAnalysis,Applyleadsandlags Criticalpathmethod,CriticalChainMethod ResourceLeveling,WhatIfScenarioAnalysis ScheduleCompression,Schedulingtool ProjectSchedule,ScheduleBaseline,Schedule data,ProjectDocumentupdates
I,TT,O
Float
Theamountoftimeanactivitycanbedelayedwithoutdelayingthe successoractivitiesstartdateorprojectfinishdateiscalledFloat Anyactivitywouldhave2typesofFloats
Totalfloat:Amountoftimethatparticularactivitycanbedelayedwithout impactingProjectfinishdate
Canbecalculatedas (SuccessoractivityLatestartdate) (CurrentactivityEarlyfinishdate)
Freefloat:Amountoftimethatparticularactivitycanbedelayedwithout impactingallsuccessoractivitiesstartdate
Canbecalculatedas (SuccessoractivityLatestartdate) (CurrentactivityEarlyfinishdate)
65
FreeFloat
The amountoftimeanactivitycanbedelayedwithoutdelayingthestart dateofanyactivitythatimmediatelyfollowsit.
AnetworkdiagramwithFREEFLOAT Activity Days Dependency
A
A B C 10 5 3 A,B
C B
Float:5Days Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
TotalFloat
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
Copyright2012CertSchool.com.Allrightsreserved. Float:5Days PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
Float:3Days
66
TheCriticalPathMethod
CriticalPathmethodisatheoreticalmethodthatsuggeststimeperiodswithin whichtheactivitiescouldbescheduled.Toachievethisoneshouldfollow belowsteps
Basedondependenciesdrawanetworkdiagram Adjustmentsneedtobemadetoactivitydurationsandotherscheduleconstraintstoproduce networkpathsforagivenschedule Calculatethetheoreticalearlystartandfinishdates,andlatestartandfinishdates,forall activitiesbyperformingaforwardandbackwardpassanalysisthroughtheschedulenetwork ThelongestamongmultiplepathsiscalledCriticalPathandnexttolongestisnearcritical path. Acriticalpathisnormallycharacterizedbyzerototalfloatonthepath.Networkscanhave multiplenearcriticalpaths. Activitiesonacriticalpatharecalledcriticalactivities. Criticalactivitiesnormallywouldhave ZeroFREEFloatandZeroTOTALFloat. Oncethetotalfloatforacriticalpathhasbeencalculatedthenthefreefloatforallactivities canalsobedetermined.
CriticalpathdurationalsorepresentsProjectDuration
CalculatingFreeandTotalFloat
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
67
CalculatingFloats Page3 NetworkDiagram

DrawthenetworkdiagramusingAON/Precedencediagrammingtechnique
S
B E
End
CalculatingFloats Page4 FindingCriticalPath

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
68
CalculatingFloats Page5 ForwardPassonCriticalPath

StartwithZEROasEarlyStartofthefirstactivityonthecriticalpath EarlyStart+Duration=EarlyFinish TransferEarlyFinishofPredecessoractivitytoEarlyStartofSuccessorActivity Repeatabove2stepsforallotheractivitiesonthecriticalpathuptothelastactivity EarlyFinishofthelastactivityshouldbesameascriticalpathduration
7 A
8 C
15
15
5 D
20
20
3 F
23
4 B
5 E
End
CalculatingFloats Page6 BackwardPassonCriticalPath

LateFinishofthelastactivityonthecriticalpathshouldbeequaltoduration CalculateLatestartoflastactivityasLateFinish Duration TransferLateStartofsuccessoractivitytoLateFinishofpredecessoractivity Repeatabove2stepsforallotheractivitiesonthecriticalpathuptothefirstactivity CalculatetheFloatofeachcriticalactivitybyusingtheformula=LF EF Noticeallcriticalactivitiesfloatis0.NormallycriticalactivitieswouldhaveZeroTotalFloat andZeroFreeFloat
7 7 8 C 7 7 0 15 15 15 15 5 D 0 20 20 0 20 20 3 F 23 23
7 A
4 B
5 E
End
69
CalculatingFloats Page7
ForwardpassonallnonCriticalPaths
StartwithZEROasEarlyStartofthefirstactivityonallnoncriticalpaths CompleteEarlyfinishoftheactivityasEarlyStart+Duration TransferEarlyFinishofcurrentactivitytoEarlyStartofnextActivityandalsoConsiderall dependenciestodecideEarlyStartofSuccessorActivity Repeatabove2stepsforallnoncriticalactivatesandreachuptothelastactivities EarlyFinishofthelastactivityNEEDNOTtobethesameascriticalpathduration
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
BackwardpassonallnonCriticalPaths Scenario1:TotalFloat

0 7 A 0 0 7 7 0 7
StartwithcriticalpathdurationasLateFinishforalllastactivitiesonnoncriticalpaths ThencalculateLateStart= LateFinish Duration AsnoncriticalactivitiesESandLSarenormallynotsame,Youhave2optionstodefinethe LateFinishofpredecessoractivity. Inthebackwardpass,YoucantransferLSorESofnextactivitytopredecessor. IfyoutransferLateStartofnextactivitytopredecessorLateFinish,youcangetTotalFloat. ThencalculateLateStart=LateFinish Duration LikewiserepeattransferringLSofsuccessorstoPredecessorsLFforallotheractivates FinallycalculatetheTotalFloat=LF EF
7 8 C 15 15 0 15 15 5 D 20 20 0 20 20 3 F 23 23
4 B
15 18
5 E 3
20 23
End
14
14 18
70
BackwardpassonallnonCriticalPaths Scenario2:FreeFloat
Asexplainedinpreviousslide,youhave2optionstodefineLFofpredecessoractivities. IftransferEarlyStartofsuccessoractivitytoLateFinishofpredecessoractivity,youcan calculateFREEFloat. AftertransferringESofnextactivitytoLFofpredecessor,CalculateLS=LF Dand Floatas=LF EF.ThisfloatwillbeFREEFloat
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
ScheduleNetworkAnalysis
Techniqueusedtocalculatethetheoreticalearlyandlatestartand finishdatesforallprojectactivities. Fourmethods:
CriticalPathMethod(CPM). Criticalchainmethod. Whatifscenario. Resourceleveling.
Example:AmarketingcampaignscheduleNetworkAnalysisInvolves:
Usingsoftwaretocreaterequestforproposals. Launchingcampaign. Estimatingslack. Adjustingactivities.
71
TheCriticalChainMethod
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 Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
TheWhatIfScenarioAnalysis
Usedtoconsiderdifferentsituationsthatmightoccurand influencetheschedule. Computesdifferentschedulesbasedonpotentialdelays. Simulatedoutcomescanbeusedinriskresponseplans. Helpsselecttheoptimumplan. Example:Whatifscenarioforplannedmoveofheadquarters. Whatifthecontractorfinisheslate? Whatifkeydecisionmakersareelsewhereduring planning? Whatifaunionstrikeaffectsconstructionworkers?
72
ResourceLeveling
Resourcelevelingisaschedulenetworkanalysistechniquetofixresourceoverallocation. Objectiveistoensurethatresourcesarenotoverallocatedoroverburdened,andthatthereare notsignificantupsanddownsintheresourceschedule.OverAllocationsarelookedas
Individualresources DemandforEntireProject Bydelayingthetasks Bysplittingthetaskandpartofitworksinthefuture
Generally,resourcesareleveledintwoways:

ResourceWeeklyTimeallocation
Weekly40hoursallocation
ResourceLevelingEntireteam
Resourcemanagersneedtomanagedemandfortheirteam. Requirementsarenotthesameallthetime.Fewweeksthe demandwouldbehighandfewotherweeksthedemandwouldbe low. Managersneedtoadjustteamdemandandworkbasedon resourceavailability.
250 200 200 160 150 100 50 0 Wk1 Wk2 Wk3 Wk4 Hours Wk5 Wk6 Wk7 Wk8 140 120 100 80 180 160
With4resources,the Teamcapacityis160 Hoursperweek.
73
ProjectSchedules
Theplanforstartingandfinishingactivitiesonspecificdatesandina certainsequence. Usedto:
Coordinateactivitiesintoamasterplan. Trackscheduleperformance.
Aprojectscheduleforawebsitedesignproject(deliverablecategoriesinbold) Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
ScheduleFormats
Barchart:
Showsstartandenddates,duration,order. Canshowprecedencerelationships. Canshowpercentagecompletion;actualprogress. Usedtopresentprojectstatustomanagement.
Copyright2012CertSchool.com.Allrightsreserved. Abarchart PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
74
ScheduleFormats(Cont.)
Milestonechart:
Providessummarylevelviewofprojectsmilestones. Usesiconsorsymbols. Showstheprojectsoverallschedule.
Copyright2012CertSchool.com.Allrightsreserved.Amilestonechart PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
ScheduleCompression
Schedulecompressionistheconceptthatshortenstheprojectschedule withoutchangingtheprojectscope Twotechniquesareavailable:
Fasttracking:isatechniquetoshortenthedurationbyperformingsequential activitiesisparallel.
Crashing:isatechniquetoshortenthedurationbybringinginadditional resources orapprovingovertime.Crashingonlyworksforactivitieswhere additionalresourceswillshortentheduration. +
75
ScheduleBaselines
Themanagementapprovedversionoftheprojectschedule. Drawnfromtheschedulenetworkanalysis. Providesbasisformeasuringandreportingscheduleperformance.
Achartshowingaschedulebaseline Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
DevelopingCostEstimatesand Budgets
ProjectCostManagementincludestheprocessesofestimating, budgeting,andcontrollingcosts Inpracticeforsmallerprojects,estimatingandbudgetingactivitiesmaybe combinedinonestep 3Processnamesare
EstimateCosts DetermineBudget ControlCosts
76
Lifecyclecosting
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.
7.1EstimateCostsProcess
I,TT,O ScopeBaseline,ProjectSchedule,Human ResourcePlan,RiskRegister,EEF,OPA Expertjudgment Analogousestimating,Parametric estimating,Bottomupestimating Threepointestimates,Reserveanalysis, Costofquality Projectmanagementestimatingsoftware Vendorbidanalysis ActivityCostEstimates,BasisofEstimates Projectdocumentupdates
77
CommonEstimateTypes
Type or Level of Accuracy Description or Accuracy Rating Developed without basis of detailed data and often based on very high level historical data, expert judgment, or a costing model. Accuracy: -50 percent to +50 percent. Often used for appropriation purposes. Accuracy: -10 to +10 percent. Developed by estimating the cost for each work package in the WBS. Accuracy: - 5 percent to + 5 percent. Allows the use of ROM or approximate estimates for some later parts of the work. Accuracy: 5 percent to 15 percent. Rough Order of Magnitude (ROM) Budgetary Definitive estimate (or control or detailed) Phased estimate (or rolling wave or moving window)
Analogous&BottomUp
Analogous BottomUp
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.
78
Parametric&Threepoint
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) O+4ML+P 6 Limitations: .Forsmallervariancetheendresultwillbe closer tomostlikelyvalue.
7.2DetermineBudget
Activitycostestimates,Basisofestimates Scopebaseline,Projectschedule Resourcecalendars,Reserveanalysis Contracts,OPA CostAggregation,ReserveAnalysis FundingLimitReconciliation Expertjudgment,Historicalrelationships CostPerformanceBaseline Projectfundingrequirements Projectdocumentupdates I,TT,O
79
FundingLimitReconciliation
Amethodofadjustingspending,scheduling,and resourceallocationinordertobringexpenditures intoalignmentwithbudgetaryconstraints. Example:Acustomerwantstospreadprojectcosts overtwoquarters. $250,000duringQ1. $350,000duringQ2.
Q1: $250,000 Q2: $350,000
CostAggregation
ProjectCostBaseline ProjectCosts + + ManagementReserve ContingencyReserve ProjectCosts
ControlAccountsCosts ControlAccountsCosts
= =
ProjectBudget ProjectCostBaseline
WorkpackageCosts ActivityCosts ActivityCosts ActivityCosts
80
CostBaselines
Atimephasedbudgetmonitorsandmeasurescost performancethroughouttheprojectlifecycle. Developedbyaddingtheestimatedcostsofproject componentsbyperiod.
A generic cost baseline shown as an S-curve Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
CompletedSCurveGraph
Summationoftheapproved budgetsisdisplayedasSCurve
40 35 30 20 10 0 3 10 10 20 20 10 5 2 35
BellCurveofCosts
Costsin'000
Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8 Wk9 Wk10
81
PlanningProjectWork
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
Quality
Totalityoffeaturesandcharacteristicsofaproductorservicesthatbear onitsabilitytosatisfystatedorimpliedneeds. Otherdefinition:Thedegreetowhichasetofinherentcharacteristics fulfillrequirements Otherdefinition:Qualityisconformancetorequirementsorspecifications QualityisprovidingwhatCUSTOMERwants QualityandGrade
FulfillingcustomerrequirementsastheywishisQuality Gradeissamefunctionaluse,butdifferenttechnicalcharacteristics
PrecisionandAccuracy
Repeatedvaluesarenotscatteredisprecision Closertothetargetvalueisaccuracy
82
ThreeProcessofQuality Management
QP Planning
8.1PlanQuality
8.2PerformQuality
Assurance QA Audit Control QC Check (Inspection)
8.3PerformQuality
8.1PlanQuality
I,TT,O
Scopebaseline,Schedulebaseline Costperformancebaseline Stakeholderregister, Riskregister EEF/OPA Costbenefitanalysis,Costofquality,Controlcharts, Benchmarking,Designofexperiments,Statisticalsampling, Flowcharting Proprietaryqualitymanagementmethodologies Additionalqualityplanningtools Qualitymanagementplan Qualitymetrics Qualitychecklists Processimprovementplan Projectdocumentupdates
83
QualityManagementImportance
FollowingconceptsshowstheimportanceoftheQuality PreventionoverInspection
TheconceptisAuditthesystemandidentifytheproblemstoPREVENTthem beforeinspectionfiguresoutthedefects.
CustomerSatisfaction
Qualityproductisdevelopedforcustomersatisfaction
Continuousimprovement
Qualitycantbeachievedovernight.Ithastobeachievedovertheperiodonestep atatime.KAIZENisthewordstatesthatcontinuousimprovementismuchbetter thansuddenchangeorgrowth.KAI Change,ZEN Good.
ManagementResponsibility
ManagementneedstoparticipateandrecognizetherequirementsofQualityinthe project.
TotalQualityManagement(TQM)
Anapproachtoimprovebusinessresultsthroughan emphasisoncustomersatisfaction,employee development,andprocessesratherthanfunctions. Differentqualitytheoristswhoimplementedtotal qualitymanagementare:
W.EdwardsDeming JosephJuran PhilipCrosby Genichi Taguchi BillSmith
84
StandardsandRegulations
Standards:
Nonmandatoryguidelinesorcharacteristicsthathave beenapprovedbyarecognizedbodyofexpertssuchas theInternationalOrganizationforStandards(ISO).
Regulations:
Compliancemandatorycharacteristicsforspecific products,services,orprocesses. Example:2007U.S.recalloftoyswithleadbasedpaint.
Newrulesandregulations:
Stricterfederalregulations,withcriminalpenalties. U.S.toyretailersforcedsupplierstomeettougher standardsthanrequiredbythegovernment.
CostofQuality
Theconceptofqualitycostsisameanstoquantifythetotalcostof qualityrelatedeffortsanddeficiencies.Itwasfirstdescribedby ArmandV.Feigenbaum ina1956HarvardBusinessReviewarticle
85
Flowchart
Adiagramthatshowstherelationshipsof variouselementsinasystemorprocess. Twoflowchartingtechniques:
Causeandeffectdiagram. Processorsystemflowchart.
Helpsidentifypotentialqualityproblemsand possibleeffectsoftheproblems.
ProcessFlowchart
Showsthesequenceofeventsandflowofinputsandoutputsbetweenelements inaprocessorsystem. Hasadefinitebeginningandend.
Asampleprocessflowchart
86
CauseandEffectDiagram
A diagram that shows the relationships of various elements in a system or process.
MenMotherNature Acauseandeffectdiagram 6Ms
ControlCharts
Agraphusedtoanalyzeandcommunicatethevariabilityofaprocessor projectactivityovertime. Showsthepotentialcapabilityoftheprocess. Suggeststherangeofvariabilityintheprocess.
USL UpperspecificationLimit UCL UpperControlLimit Mean LCL ControlLimit LSL LowerSpecificationLimit
87
Benchmarking
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.
DesignofExperiments(DOE)
Atechniquetosystematicallyidentifyvarying levelsofindependentvariables. Example:Creatinganewstyleofjarina canneryCreationinvolves:
Determiningtheoptimumtorquesize. Testingtorquewithspindlespeedandconveyor speed. Determiningadjustmentstothesesettings.
88
Checklists
Ajobaidthatpromptsemployeestoperformactivitiesaccordingtoaconsistent qualitystandard
Obtain a printout of the image specifications from the graphics database. Use this checklist to ensure that the images are ready to be handed off to the programmer. # 1 2 3 4 5 6 7 8 Item Does the image match the description in the database? Does the style meet the specifications for the course or lesson? Does the quality of the image meet the standards set for the course? Is the image size correct? Is the correct border on the image? Is the image in the correct palette? Is the opacity correct (transparent or opaque)? Is the bit-depth correct? Y/N
Achecklistforprintingimage Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
Metric
Ametricisaverifiablemeasurestatedineitherquantitativeor qualitativeterms.
95percentinventoryaccuracy asevaluatedbyourcustomers,weareprovidingaboveaverage service
Ametricisaverifiablemeasurethat
capturesperformanceintermsofhowsomethingisbeingdone relativetoastandard, allowsandencouragescomparison, supportsbusinessstrategy.
Qualitymetricdatamaybeusedto:
spottrendsinperformance. comparealternatives. predictperformance.
89
ProcessImprovementPlanning
Theprocessofanalyzingandidentifyingareasofimprovementin projectprocesses. Enumeratinganactionplanbasedontheprojectgoalsand identifiedissues. Involves:
Describingoperationaltheoriesandprojectrolesandresponsibilities. Identifyinglongandshorttermgoals. Describingprocessimprovementobjectivesandactivities. Identifyingrisksandresourcerequirements. Determiningprocessimprovementactivities. Creatingaprocessimprovementplan. Receivingapprovalfromstakeholdersandseniormanagers. Executingtheprocessimprovementplan.
QualityManagementPlan
GuidanceforQuality Outlinehowqualitycontrolandquality assurancewillbeperformed. Describefortheprojectstakeholdersthe teamsapproachtoimplementthequality policy.
90
9.1DevelopHRPlan
I,TT,O
ActivityResourceRequirements EEF,OPA OrganizationChartsandPosition Descriptions OrganizationalTheory Networking HumanResourcePlan
OrganizationalStructureTypes
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
91
OrganizationalCharts
OrganizationalChartscanberepresentedin3formats
Hierarchical OBS,RBS, Matrix ResourceAssignmentMatrix(Ex:RACI) Textoriented
JobDescription: .. Accountabilities:
220
RACIChart
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
92
HRPlan
Thehumanresourceplan,apartoftheproject managementplan,providesguidanceonhow projecthumanresourcesshouldbedefined, staffed,managed,controlled,andeventually released.Componentsinclude:
Roles Responsibilities Authority Competency ProjectOrganizationalCharts StaffingManagementPlan
StaffingManagementPlan
Thestaffingmanagementplan,apartofthehumanresourcesplan, describeswhenandhowhumanresourcerequirementswillbemet. Forecastwhattypesofstaffwillworkontheproject,whentheywillbe needed,howtheywillberecruitedontotheproject,andwhentheywill bereleasedfromtheproject. StaffingManagementPlanComponents
Staffacquisition ResourceCalendars StaffReleaseplan Trainingneeds Recognitionandrewards Compliance Safety
93
10.2PlanCommunications
I,TT,O
StakeholderRegister StakeholderManagementStrategy EEF,OPA CommunicationRequirementsAnalysis CommunicationTechnology CommunicationModels CommunicationMethods
CommunicationsManagementPlan Projectdocumentupdates
CommunicationsRequirements Analysis
Theanalysisofthecommunicationrequirementsdeterminesthe informationneedsoftheprojectstakeholders.Theserequirementsare definedbycombiningthetypeandformatofinformationneededwithan analysisofthevalueofthatinformation Aninvestigationthatleadstoacleararticulationofthestakeholders' communicationsneeds. Helpsprojectmanagermakeeffectivechoicesregardingthetechnologies toberecommendedinthecommunicationsmanagementplan. Example:Surveyingstakeholdersregardingtheircommunicationsneeds. Questionsaskedmayinclude:
Howoftenwouldyouliketoreceivestatusreports? Howwouldyouprefertoreceiveinformation?Byphone,byemail,orinface tofacemeetings? Whatlevelofdetailareyouexpectingtosee? Whatkindsofquestionsdoyouexpecttohaveanswered?
94
EffectiveandEfficientCommunication Identifystakeholderinformationneedsand planforcommunicationapproach Improperplanningwillleadintodelayin communicationorsensitiveinformationto wrongaudience

Effectivecommunicationmeans informationisprovidedinrightformat, atrighttimeandwithrightimpact Efficientcommunicationmeans providingonlyrequiredinformation
PotentialChannels
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.
95
CommunicationModels
Abasicmodelofcommunicationdemonstrateshowinformationissentandreceivedbetween twoparties,definedasthesenderandthereceiver.Thekeycomponentsofthemodelinclude:
Encode:Totranslatethoughtsorideasintoalanguagethatisunderstoodbyothers MessageandFeedbackmessage:Theoutputofencoding Medium:Themethodusedtoconveythemessage Noise:Anythingthatinterfereswiththetransmissionandunderstandingofthemessage Decode:Totranslatethemessagebackintomeaningfulthoughtsorideas
Hellohereismymessage!!
Encode
Decode
3 levels of problems in this model: The technical problem: how accurately can the message be transmitted? The semantic problem: how precisely is the meaning 'conveyed'? The effectiveness problem: how effectively does the received meaning affect behavior? Project Manager needs to resolve these issues case by case
OKIgotithereismyfeedback!!
255
CommunicationMethods
InteractiveCommunication
Between2ormorepartied,multidirectional
PushCommunication
Senttospecificrecipients
PullCommunication
Verylargeinformationforverylargeaudience. Intranetwebsiteisanexample
Thetechnologiesusedforcommunications planning:websites,email,instantmessaging, phones,videoconferencing.

96
CommunicationsManagement Plan
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..
6processesofRiskManagement
PlanRisk Management
TheobjectivesofProjectRiskManagementaretoincreasetheprobabilityandimpactof positiveevents,anddecreasetheprobabilityandimpactofnegativeeventsintheproject
IdentifyRisks
Perform Qualitative RiskAnalysis
Perform Quantitative RiskAnalysis
PlanRisk Responses
MonitorandControlRisks
97
11.1PlanRiskManagement
I,TT,O
ProjectScopeStatement CostManagementPlan ScheduleManagementPlan CommunicationsManagementPlan EEF,OPA
PlanningMeetingsandAnalysis RiskManagementPlan
RiskManagementPlan
Methodology Rolesandresponsibilities Budgeting Timing Riskcategories Definitionsofriskprobabilityandimpact Probabilityandimpactmatrix Reportingformats Tracking
RMP
98
RiskBreakdownStructure
TheRiskBreakdownStructure(RBS)isahierarchicallyorganizedrepresentationof theidentifiedrisksarrangedbyriskcategoriesandsubcategories RBShelpsprojectteamtoidentifyRiskandprovidedetailsataconsistentlevel RBSallowsProjectteamtoprovidehighlevelresponsestrategiesatcategorylevel
ProjectRisks CategoryA CategoryB CategoryC
280
RiskImpactMatrix
ThequalityandcredibilityofthePerformQualitative RiskAnalysisprocessrequiresthatdifferentlevelsof therisksprobabilitiesandimpactsbedefined.
281
99
11.2IdentifyRisks
I,TT,O
Riskmanagementplan,EEF,OPA Activitycostestimates,Activityduration estimates,Scopebaseline,Stakeholderregister Costmanagementplan,Schedulemanagement plan,Qualitymanagementplan,Project documents EJ,DocumentationReviews InformationGatheringTechniques ChecklistAnalysis,AssumptionsAnalysis DiagrammingTechniques,SWOTAnalysis RiskRegister ReferPMBOKGuide Page: 282
InformationGatheringTechniques
Technique Brainstorming Delphitechnique Interviewing Rootcauseanalysis Description Usedtoidentifyoverallprojectrisksormayfocusinontherisks withinaparticularprojectsegmentorworkpackage. Generatesaconsensusamongprojectriskexpertswho anonymouslysubmittheirrisklisttoafacilitator. Usedtogetinformationfrompeoplewithawideexperience acrossmanyprojects. Usedtoidentifyproblems,discovertherootcause,anddevelop correctiveactions. Riskidentificationchecklistscanbedevelopedtomakesureall aspectsarecovered.ThelowestleveloftheRBScanalsobeused asariskchecklist.Whileachecklistcanbequickandsimple. Everyprojectandeveryidentifiedprojectriskisconceivedand developedbasedonasetofhypotheses,scenarios,or assumptions.Assumptionsanalysisidentifiesriskstotheproject frominaccuracy,instability,inconsistency,orincompletenessof assumptions
ChecklistAnalysis
AssumptionAnalysis
287
100
SWOTAnalysisPrimaryFactors
Thetechniquestartswithidentificationofstrengthsandweaknessesofthe organization,focusingoneithertheprojectorganizationorthewiderbusiness SWOTanalysisthenidentifiesanyopportunitiesfortheprojectthatarisefrom organizationalstrengths,andanythreatsarisingfromorganizationalweaknesses. SWOTanalysisalsoexaminesthedegreetowhichorganizationalstrengthsoffset threatsandopportunitiesthatmayservetoovercomeweaknesses
S
Strengths
Weaknesses
Opportunities
Threats
RiskRegisters
Identifiesandcategorizesrisks,potentialriskresponses,triggers. Updatedasriskcategorieschange. Riskresponsesfromtheinitialriskregisterareusedintheriskresponse planningprocess. Updatedriskregisterisprovidedtotheprojectteammembers.
ID 1 Source PMO Date 1/5 Description ProjectManagement practices unableto delivertheproject Shortageoftechnical resources Probab ility High Impact High Trigger Schedule Delay Delayin previous project ResponseStrategy ClearPMStructurein place withmore authority Hireexternal contractors Status Identified
RM
1/12
Low
Med
Identified
Asampleriskregister Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
101
TriggeringEvents
Caution TriggeringactivityOccurred Risksmightfall

11.3PerformQualitativeRiskAnalysis
I,TT,O
RiskProbabilityand ImpactAssessment RiskDataQuality Assessment RiskCategorization RiskUrgencyAssessment RiskRegisterUpdates

102
QualitativeRiskAnalysis
Atechniquetodeterminetheprobabilityofoccurrenceandthe impactofidentifiedrisk. Determinetheriskexposureoftheprojectbymultiplyingthe probabilityandimpact. RiskDataQualityAssessment Evaluationoftheusefulnessofdataconcerningrisk. Examiningdataincludes:
Amountofdataavailable. Qualityofdataavailable. Sourceofinformation. Legitimacyofdata. Dependabilityofdata.
ProbabilityandImpactRiskRating Matrix
Eachofthesenumbersarecalculatedby multiplyingProbabilityandImpactvalues. 0.09=0.9*0.1
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 0.08 0.16 0.24 0.32 0.4 0.48 0.56 0.64 0.72
0.07 0.14 0.21 0.28 0.35 0.42 0.49 0.56 0.63 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 0.3 0.35 0.4 0.45
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
0.03 0.06 0.09 0.12 0.15 0.18 0.21 0.24 0.27 0.02 0.04 0.06 0.08 0.1 0.12 0.14 0.16 0.18
0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
Impact
292
103
RiskScore
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=.32 Amber=.35 Green/White=.12 Rank 1 3 2 4
RiskRegisterUpdates byQualitativeRiskAnalysis
Relativerankingorprioritylistofprojectrisks:Usingcombinationsofeachrisksprobabilityofoccurringandthe impactonobjectivesifitweretooccur,riskswillbeprioritizedrelativetoeachotherbysortingthemintogroups ofhighrisk,moderaterisk,andlowrisk. Causesofriskorprojectareasrequiringparticularattentionareidentified Risksrequiringresponseintheneartermareidentified RisksforadditionalanalysisandresponseareidentifiedandQuantitativeanalysiswillbeperformed Watchlistsoflowpriorityrisksareprepared Astheanalysisisrepeated,atrendforparticularrisksmaybecomeapparent,andcanmakeriskresponseor furtheranalysismoreorlessurgent/important. Largelistofidentifiedrisksarecategorized,andfiltered
Willbeanalyzed quantitatively Scored& Ranked
293
104

11.4PerformQuantitativeRiskAnalysis
I,TT,O
RiskManagementPlan DataGatheringand Representation Techniques QuantitativeRiskAnalysis andModelingTechniques RiskRegister(Updates)

QuantitativeRiskAnalysis
PerformQuantitativeRiskAnalysisisperformedonrisksthathavebeenprioritizedbythePerform QualitativeRiskAnalysisprocessaspotentiallyandsubstantiallyimpactingtheprojectscompeting demands. Analysisisusedtoassignanumericalratingtothoserisksindividuallyortoevaluatetheaggregate effectofallrisksaffectingtheproject.Italsopresentsaquantitativeapproachtomakingdecisions inthepresenceofuncertainty QuantitativeRiskAnalysisisperformedseveraltimesevenafterRiskresponsesareprovidedoron regularintervalsofmonitorandcontrollingtomeasuretheoverallprojectRiskandseeifitis reducedornot. DataGatheringandRepresentationTechniqueslikeInterviewingandProbabilitydistributionare usedtorepresenttheuncertaintynumerically
298
105
QuantitativeAnalysisModelingTechniques
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.
ContingencyReserve
ThisCumulativeChartdevelopedbyasimulationusingtheDataandTriangular distributions,predictsthattheprojectisonly12%likelytomeetthe$41mestimate.If managementwants75%likelihoodofsuccess,abudgetof$50misrequired. ThenContingencyis($50$41)/$41=22%

106
DecisionTree
DecisionTreesareexcellenttoolsforhelpingyoutochoose betweenseveralcoursesofaction. Theyprovideahighlyeffectivestructurewithinwhichyoucanlay outoptionsandinvestigatethepossibleoutcomesofchoosing thoseoption Stepstoarriveatadecision
DrawingaDecisionTree EvaluatingYourDecisionTree CalculatingTreeValues CalculatingTheValueofUncertainOutcomeNodes CalculatingtheValueofDecisionNodes Arriveatadecision
Forexample,consideryourcompanyisinasituationtotakea decisiontoimplementnewproductorconsolidateexistingones.By followingthedecisiontreeprocessyoucansuggestasolution

Calculations
107
Simulations
Usescomputermodelsandestimatesofrisk. Translatesuncertaintiesintopotentialimpact. Involvescalculatingmultipleprojectdurations usingvaryingsetsofassumptions. Example:Theprojectteamforthemultimedia campaigndecideswhichprintingcontractor touseandchoosesbetweentwovendors.
MonteCarloAnalysis
Optimistic,mostlikely,andpessimisticestimates. Simulatesvariousoutcomes. Predictsarangeofpossibleresults. Usedtopredictlikelyoutcomeforschedulesandcosts. Sophisticatedsoftwareapplications. Effectivewithlargeinputsofnumbers. Effectivewhenpredictingbusinessrisk.
Example:MonteCarloanalysisforaprojectthathas threetaskswithinexperiencedresources.
108
RiskRegisterUpdates byQuantitativeRiskAnalysis
AmountoftimeandcostcontingenciescanbecalculatedusingQuantitativeRiskAnalysis QuantitativeRiskAnalysismeasuresthecontingencyreserveasExpectedMonitoryValuea multipleofProbabilityandprojectedcostimpact. EMV=Probability*$$Impact. Largelistofidentifiedrisksarecategorized,andfilteredbyQualitativeAnalysis.Thelistis furtherfilteredbyQuantitativeRiskAnalysis.ContingencyReservesforindividualriskitemsare calculatedfortopriskitems.BasedonCumulativeChartandorganizationrisktoleranceoverall ProjectContingencyreserveiscalculated.
Scored& Rankedby Qualitative Analysis
Contingency Reservesare Identifiedby Quantitative Analysis
293
11.5PlanRiskResponses
I,TT,O
StrategiesforNegativeRisk orThreats StrategiesforPositiveRisks orOpportunities ContingentResponse Strategy RiskRegister(Updates) RiskrelatedContract Decisions

109
RiskStrategies
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
NegativeRiskResponseExamples
Avoidance
Compatibilityissuesbetweentwointerfacesistherisk. ChangingthedesignisAvoidancestrategy Changethetaskflowtoremoveataskfromthecriticalpath
Mitigation
Compatibilityissuesbetweentwointerfacesistherisk. Developingdetaileddesignplansorallocatingmoretimeto resolvethecompatibilityissues Addbufferstothecriticalpathtoreducetherisk
Transference
Subcontracttheworktosupplierswithdemonstrated expertise
110
PositiveRiskResponseExamples
Exploit(UtilizationorTakingAdvantage)Example:
ProjectEarlyfinishopportunityisidentified.Makingsureandplantoutilize theopportunity.Oraddingadditionalresourcesmakesurethatthisriskitem occurs
SharingExamples
Vendoridentifiedtosecurealargeorder.Vendorpartneringwithanothersub vendorstofulfilltheneeds
Enhancing
AnAirlinecompanyenhancesitsopportunitiesbyAddingadditionalflights duringholidayseason
Contingency&Fallbackplans
Contingencyplan
A contingencyplan isaplandevisedforaspecificsituationwhen thingscouldgowrong.Duringtimesofcrisis,contingencyplansare oftendevelopedtoexploreandprepareforanyeventuality. Contingentresponsestrategy
Fallbackplan
Somethingtowhichonecanresortorretreat. Whenthecontingencyplanforariskisnotfullyeffective,teamshould implementfallbackplan.
111
Residual&SecondaryRisks
Residual
Risksthatremainafterapplyingriskresponse strategieshavebeenimplemented Risksthatarenotworthdealingwithupfrontcosts andtime
Secondary
Newrisksthatemergeasaresultofapplyingrisk responsestrategies. Forexample:FeverscausedbyFluvaccines
4ProcurementProcesses
Planning Execution Monitor&Control Closing
Plan Procurement
MakeorBuy Decision Procurement ManagementPlan ProcurementDocs
Conduct Procurement
SearchVendors Listvendors Selectavendor
Administer Procurement
Close Procurement
112
Buyer,Seller&Contract
Buyer:Theorganizationinterestinginprocuring goodsandservicesistermedasbuyer. Seller:Theorganization/individualsellinggoods orservicesistermedasseller.Contractors, Serviceproviders,consultantsetc..areall consideredsellers. Contract:Contractisthelegalagreement betweenthebuyerandsellertobuy/sellgoods orservices.
Centralizedvs.Decentralized
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
113
12.1PlanProcurements
I,TT,O
ScopeBaseline RequirementsDocumentation TeamingAgreements ProjectSchedule ActivityCostEstimates MakeorBuyAnalysis ContractTypes ProcurementManagementPlan ProcurementStatementofWork MakeorBuyDecisions ProcurementDocuments SourceSelectionCriteria ReferPMBOKGuide Page: 317
MakeorBuyAnalysis
Atechniqueusedtodeterminewhetheritismorecosteffectiveto produceaproductorserviceinhouseortoprocureitfroman outsideseller. Impactsprojecttime,cost,andquality. Considerifaproductneedstobepurchased,leased,orrented,in caseofabuydecision. Consider
Direct&Indirectcosts Technicalability Tradesecrets?
Example:Makeorbuyanalysisfor developingtrainingmaterials.
114
Lease,Rent,orBuyDecisions
Abusinessanalysisthatdeterminesthemost costeffectivewaytoprocurethenecessary equipmentforaproject. Example:Lease,rent,orbuydecisionsfor acquiringahighspeed copierwithcollatingcapabilities.
TeamingAgreements
Alegalcontractualagreementbetweentwoormore partiestoformajointventure. Partiescanbeinternalorexternaltotheorganization executingthe project. Significantlyimpactstheplanningprocessesforthe project. Predefinesissuessuchasscopeofworkandcompetition requirements. Example:AteamingagreementbetweenOGCCorporation andJanrex Inc.
115
RiskRelatedContractDecisions
Riskrelatedcontractdecisionsaremadewhen:
Planningriskresponsesfortheproject. Sharingortransferringpartoralloftherisk. Enhancingormitigatingpartoralloftheopportunity orthreat.
Riskrelatedcontractdecisionsinclude:
Agreementsforinsurance Bonding Services LetterofCredit(LoC) Bankguarantee
Contracts
Mutuallybindingagreementsthatdetailthe obligationsofbothpartiesintermsofprocuringwork. Customizedforeachagreement. Contracttypes:
Fixedprice. Costreimbursable. TimeandMaterial(T&M)contracts.
Example:Afixedpricecontractusedbytheprojectteam procuring themanufacturingunitforitsnewlineoffootwear.

116
TypesofContracts
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)
ContractTypes
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 Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
117
ProcurementManagementPlans
Outlinesthespecificationsforprocuringworkfromoutsidesources. Specifiesthetypesofcontractsthatwillbeused. Describestheprocessforobtainingandevaluatingbids. Mandatesthestandardizedprocurementdocumentsthatmustbe used. Describeshowmultipleproviderswillbemanaged. Stateshowprocurementactivitieswillbecoordinatedwithother projectmanagementactivities. Planmaybeformalorinformal;brieforhighlydetailed. Example:Anadvertisingagencyprocuringcontractsfromexternal sourcesforsomeoftheirworkthatisbeyonditscorecapabilities.
ProcurementStatementsofWork
Adetailednarrativedescriptionoftheresources,goods,or servicessoughtfromexternalsourcesforproject's requirements. Distributedtopotentialsellerstoevaluatetheircapability toperformtheworkorprovidetheservices. Servesasabasistodeveloptheprocurementdocuments duringthesolicitationprocess. Aprojectscopebaselineisusedtocreatetheprocurement SOW. Types:
PerformancePSOW CR FunctionalPSOW CR/T&M DesignPSOW FP
118
ProcurementDocuments
Documentsthataresubmittedtoprospective sellersandserviceproviderstosolicittheir proposalsfortheworkneeded. Documenttypeusedwilldependonthetypeof projectandtheproductorservicebeing procured. Example:Arequestforproposalisaspecifictypeof procurement document.
TypesofProcurement Documents
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)
119
ProcurementDocumentsand associatedcontracttypes
Term
FP Short
Work
Known
PSOW DesignPSOW
Docs
RFB
Risk Seller
T&M
Short
Know/ UnKnown UnKnown
FunctionalPSOW
RFQ
Both
CR
Long
PerformancePSOW
RFP
Buyer
SourceSelectionCriteria
Thestandardsusedtorateorscoreproposals,quotes,orbidsandformsapartofthe procurementsolicitationdocuments. Objectivecriteria Canbereadilydemonstratedandmeasured. Subjectivecriteria Opentodifferentinterpretations. Objectivecriteriaismuchmorespecificthansubjectivecriteria.
ObjectiveCriteria Ph.D.chemistwithatleastfiveyears experienceinchromatographicresearch. 80,00090,000squarefootstoragearea withinthreemilesoftheDallasFortWorth Airport. SubjectiveCriteria Experiencedlaboratorychemistwithstrong analyticalskills. AmplesquarefootstorageareanearDallas FortWorthAirport.
120
ContractsrelatedTerms
LetterofIntent:Aformalstatementthatthebuyerintendstopurchasethe propertyforacertainpriceonacertaindate.ButbyissuingtheLOIbuyerisnot mandatedtomakethatpurchase. LawofPrivity (ContractualRelationship) A B C
NonCompetitiveformsofprocurement
SoleSource:ThereisonlyonesuppliercapableofmeetingProjectrequirementswithinthe timeandbudgetavailable. SingleSource:Thepracticeofusingonesource,amongothersinacompetitivemarketplace which,forjustifiablereason,isfoundtobemostadvantageousforthepurposeoffulfillinga givenpurchasingneed.

4.2DevelopProjectManagementPlan
I,TT,O
Project Charter Outputs from Planning processes Project Management Plan
121
TheProjectManagementPlan
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.
KeyComponents ofaProjectManagementPlan SubsidiaryManagementPlans(MP) RequirementsMP ScopeMP,ScheduleMP,CostMP QualityMP,ProcessImprovementPlan HRMP,StaffingMP CommunicationsMP RiskMP ProcurementMP ConfigurationMP,ChangeMP
Baselines ScopeBaseline
(Scope Statement,WBS,WBSD)
ScheduleBaseline CostBaseline Combinationofabove3baselinesis calledPerformanceMeasurementBaseline
122
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
PMIS& Configuration,ChangeManagement
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
123
ProjectDocuments
DocumentsotherthanProjectManagementPlan,createdby PMandneednotbeapprovedbySponsor Examples

Charter SOW Contracts QualityMetrics, ActionItems,ActivityLists,RiskRegister,Issuelog,Changeslog
Tip:Updatestothesedocumentsisdonethroughoutandbymanyprocesses. (i.e.Outputofmanyprocesses)
Differences
350
124
ScopeManagementPlan
Thedocument providesguidanceonhow projectscopewillbedefined,documented, verified,managed,andcontrolled.Thescope managementplanmaybeformalorinformal, highlydetailed,orbroadlyframed,based upontheneedsoftheproject
ScheduleManagementPlan
Aschedulemanagementplanthatselectsascheduling methodology,aschedulingtool,andsetstheformatandestablishes criteriafordevelopingandcontrollingtheprojectschedule. Aschedulingmethodologydefinestherulesandapproachesforthe schedulingprocess.Someofthebetterknownmethodologies includecriticalpathmethod(CPM)andcriticalchain. Theprojecttimemanagementprocessesandtheirassociatedtools andtechniquesaredocumentedintheschedulemanagementplan. Itmaybeformalorinformal,highlydetailedorbroadlyframed, basedupontheneedsoftheproject,andincludesappropriate controlthresholds.
125
CostManagementPlan
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

126
127
ExecutingProjectWork
IdentifytheDirectandManageProjectExecution Process ExecuteaQualityAssurancePlan AcquiretheProjectTeam DeveloptheProjectTeam ManagetheProjectTeam DistributeProjectInformation ManageStakeholderRelationshipsand Expectations ConductProcurement

4.3DirectandManageProjectExecution
I,TT,O
ProjectManagementPlan ApprovedChangeRequests ProjectManagement InformationSystem Deliverables WorkPerformance Information ChangeRequests

128
ProjectManagementInformation System(PMIS)
Anautomatedsystemusedtogather,analyze, communicate,andstoreprojectinformation. Collectsinformationon:
Workthathasandhasnotbeenaccomplishedineach workpackage. Workresultcomparedtotheplannedschedule,cost, quality,andscope. Maybecomputerizedormanual.
Example:MicrosoftSharepointandProject ServercreatesaPMISenvironment
WorkAuthorizationSystem
Atoolusedtocommunicateofficialpermissiontobeginworkingonanactivityor workpackage. Ensuresthatworkisdone:
Attheappropriatetime. Bytheappropriateindividualorgroup. Withinaspecifictime. Inthepropersequence.
Acontractworkauthorizationsystem Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
129
Performthework!!Means ExecutetheProjectManagementPlan
(Outputofthisprocess)Arecalled WorkPerformanceInformation PerformWork aspertheplan
Status report
Status report
Status report
Approved Changes
Status report
Need Change
ChangeControl Process
FinalProduct (DELIVERABLES)
WorkPerformanceInformation
Consistsofperiodicallycollectedinformationaboutprojectactivities. ResidesinthePMIS. Includes:
Scheduleprogresswithstatusinformation. Deliverables. Scheduleactivities. Degreeofqualitystandards. Expensesauthorized. Estimatestocompletethescheduleactivities. Percentofcompletedscheduleactivities. Lessonslearned. Resourceutilization. Changerequestsimplementation. Correctiveandpreventiveactions Defectrepairs.
130
Corrective/Preventive/ Defective
CorrectiveActions
Actiontoeliminatethecauseofadetectednonconformity.Therecan bemorethanonenonconformity.Correctiveactionistakentoprevent recurrence.Correctionrelatestocontainmentwhereascorrective actionrelatestotherootcause.
PreventiveActions
Longtermcost/riskweightedactiontakentopreventaproblemfrom occurring,basedonanunderstandingoftheproductorprocess. Preventiveactionwilladdressinadequate"conditions"whichmay producenonconformance
DefectRepairActions
Theworddefectivedescribesanentireunitthatfailstomeet acceptancecriteria,regardlessofthenumberofdefectswithinthe unit.Aunitmaybedefectivebecauseofoneormoredefects
8.2PerformQualityAssurance
I,TT,O
ProjectManagementPlan QualityMetrics WorkPerformanceInformation QualityControlMeasurements QualityAudits ProcessAnalysis ChangeRequests
131
QualityAudit
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
TypesofQualityAudits
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
132
TopicsofQualityAudits
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
9.2AcquireProjectTeam
I,TT,O
Preassignment Negotiation ProjectManagementPlan Acquisition EEF,OPA Virtualteams Projectstaffassignments Resourcecalendars
133
FactorstoconsiderAcquiring team
Negotiateandinfluencefunctionalmanagers tosupplyresourcesontime Failuretoacquirethoseresourcesmightdelay theprojectschedule,budgets,customer satisfaction,quality,andaddrisks. Arrangementstoalternativeresourcesshould bemadetoaddressunavailabilityofplanned resources
Tools&Techniques
Preassignment:Whenprojectteammembersareselectedinadvancetheyare consideredpreassigned
SpecificresourcesarepartofwinningBid SpecificresourcesareSMEoftheorganization
Negotiation:Staffassignmentsarenegotiatedonmanyprojects.Mustnegotiate with
FunctionalManagers OtherProjectmanagementteams Externalorganizations
Acquisition:Whentheperformingorganizationlackstheinhousestaffneededto completeaproject,therequiredservicesmaybeacquiredfromoutsidesources VirtualTeams

Teamsthataredistributedamongmultiplephysicallocations. Maybemoredifficultbecause:
Bondingandteamidentitymaybehardtodevelop. Variousformsofcommunicationstechnologyused. Difficulttomonitorindividualperformance/progress.
134
9.3DevelopProjectTeam
I,TT,O
Interpersonalskills Training Teambuildingactivities Groundrules Colocation Recognitionandrewards Teamperformance assessments
TeamDevelopmentStages
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.
135
Training
Anactivitytoacquireskills,knowledge,orattitudes. Providedtoteams,smallgroups,orindividuals. Coversmanagement,technical,oradministrativetopics. Types:
Multiday,formalworkshop. Fiveminute,informalonthejobtraining.
Providedtoteammemberswhenthereisaneed.
TeamBuildingActivities
Specificfunctionsoractionstakentodevelopa mature,productiveteam. Activitiescanbe:
Formalorinformal. Brieforextended. Conductedbytheprojectmanagerorafacilitator.
Example:Anoutdoorteambuildingactivitywas initiatedbythemanager,whichinvolvesallday, offsiteropeclimbingexercisefacilitatedbya coach.

136
Colocation
Positioningteammembersinthesamephysical location:
Makescommunicationeasier. Enhanceteamperformance. Improvesteamspirit.
Bothsmallandlargeprojectsbenefitfromcolocation. Examples:Colocationforanationalcampaignatwhich thekey membersofthecampaign'sprojectteamwouldbeco located.

RewardandRecognitionSystems
Aformalsystemusedtoreinforceperformanceorbehavior. Helpsinmotivatingtheteamtoperformwell. Rewardsinclude:
Monetarygifts. Additionalvacationtimeorotherperks. Companyplaquesortrophies. Gifts.
Example:Ateammemberbeingawardedagiftcertificatebythe managerforanoutstandingperformanceinmentoringnewcolleagues. Givingpayincreasesorpromotionstoindividualsbasedonmerit. Example:10%salaryincreasetosalesrepresentativeswhoexceed quotaby25%fortheyear.
137
TeamPerformanceAssessment
Effectiveteamdevelopmentstrategiesandactivitiesare expectedtoincreasetheteamsperformance,which increasesthelikelihoodofmeetingprojectobjectives Theperformanceofasuccessfulteamismeasuredinterms oftechnicalsuccessaccordingtoagreeduponproject objectives,performanceonprojectschedule(finishedon time),andperformanceonbudget(finishedwithinfinancial constraints).Highperformanceteamsarecharacterizedby thesetaskorientedandresultsorientedoutcomes Theyalsoexhibitspecificjobrelatedandpeoplerelated qualitiesthatrepresentindirectmeasuresofproject performance
9.4ManageProjectTeam
I,TT,O
Projectstaffassignments Teamperformance assessments Performancereports Observationandconversation Projectperformanceappraisals Conflictmanagement Issuelog Interpersonalskills

138
ConflictManagement
Applicationofoneormorestrategiestodealwithdisagreements. Effectiveconflictmanagementleadstoimprovedunderstanding,performance, andproductivity. Ineffectiveconflictmanagementleadsto:
Destructivebehavior. Animosity. Poorperformance. Reducedproductivity. Resources(people) Costestimates Technicalopinions Tradeoffdecisions Priorities Administrativeprocedures Scheduling Assignmentofresponsibilities Personalityclashes
Reasonsfortheconflict

ConflictResolutionTechniques
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
139
TasksofPerformanceAppraisals
Useperformanceappraisaltoaccomplish tasks,including:
Comparingperformancetogoals. Reclarifyingrolesandresponsibilities. Deliveringpositiveandnegativefeedback. Discoveringunknownorunresolvedissues. Creatingandmonitoringtrainingplans. Establishingfuturegoals.
PowerofProjectManagers
Formal(Legitimate) Reward Penalty(Coercive) Expert Referent
140
LeadershipStyles
Supporting Praise,Listenandfacilitate Forpeoplewhohave Highcompetence VariableCommitment Empowering Turnoverresponsibility Forpeoplewhohave HighCompetence HighCommitment
Competence
Coaching DirectandSupport Forpeoplewhohave LowCompetence LowCommitment
Directing Structure,ControlandSupervise Forpeoplewhohave LowCompetence HighCommitment
Commitment
MotivationalTheories
MaslowsHierarchyofneeds Herzbergs2FactorTheory McGregorsTheoryofXandY Ouchis TheoryZ ClaytonAlderferERGTheory DavidMcClelland3NeedTheory
141
MaslowsHierarchyofneeds
Actualization
SelfEsteem
Social Safety Physiological
FrederickHertzbergs 2FactorHygieneandMotivationTheory Hygiene Organization Policies Supervision Workingconditions Interpersonalrelations Salary Status JobSecurity Motivation Achievement Recognition Growth/advancement InterestinJob
142
TheoryofXandY
FromDouglasMcGregorsbookTheHuman sideofEnterprise 1960
Ouchis TheoryZ
FromJapaneseManagement,contrarytoTheoryofXY. FocusonLoyalty
Longtermemployment Collectiveresponsibility Implicit,informalcontrolwithexplicit,formalized measures Collectivedecisionmaking Slowevaluationandpromotion Moderatelyspecializedcareers Concernforatotalperson,includingtheirfamily
BasedonDr.W.EdwardsChoid Deming'sfamous"14 points".

143
10.3DistributeInformation
I,TT,O
Performancereports Communicationmethods Informationdistribution tools Organizationalprocess assetsupdates

DistributeInformation
DistributeInformationisthecommunicationsprocessofmakingproject informationavailabletoprojectstakeholders,asdeterminedand documentedintheCommunicationsManagementPlan. Informationdistributionmethodsshouldbeappropriatetotheproject, thetimelinessrequiredandthecultureoftheorganizationthatyouare workingin. Itisimportanttobemindfulthatcommunicationisnotcompleteuntilthe senderisconfidentthatthereceiverunderstandstheinformation,as intended. Communicationmethods Distributiontools
Hardcopydocuments Electroniccommunicationtools,conferencingtools,websites ProjectManagementsoftware,meetingandvirtualofficesoftware, collaborativeworkmanagementtools
144
ITTO R_[îng Ex_r]is_ El_m_nts of 10.4ManageStakeholderExpectations

I,TT,O
Stakeholderregister Stakeholdermanagement strategy Communicationmethods Interpersonalskills Managementskills

ManageStakeholderExpectations
Processofcommunicatingandworkingwithstakeholders tomeettheirneedsandaddressingissuesastheyoccur.
Theprojectmanagerisresponsibleforstakeholderexpectations management. Addressingconcernsthathavenotbecomeissuesyet,usually relatedtotheanticipationoffutureproblems.Properlyassess theRisksandgainstakeholdersupport Activelymanagingtheexpectationsofstakeholderstoincrease thelikelihoodofprojectacceptance Activelymanagingstakeholderexpectationsdecreasestherisk thattheprojectwillfailtomeetitsgoalsandobjectivesdueto unresolvedstakeholderissues,andlimitsdisruptionsduringthe project.
145
Tools&Techniques
InterpersonalSkills
Buildingtrust Resolvingconflict Activelistening Overcomingresistance Presentationskills Negotiation Writingskills Publicspeaking
ManagementSkills
12.2ConductProcurements
I,TT,O
Procurementdocuments Sourceselectioncriteria Qualifiedsellerlist Sellerproposals Bidderconferences Proposalevaluationtechniques Independentestimates Advertising Internetsearch Procurementnegotiations Selectedsellers Procurementcontractaward ReferPMBOKGuide Page: 329
146
SearchingSellers
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.
Proposalevaluationtechniques
WeighingSystem Evaluateproposalsquantitatively Setcriteriaandweightsofthosecriteria Evaluateindividualcontractoragainsteachcriteria Calculateoverallweightageofcontractorcomparedtoothers IndependentEstimate Preparedtoverifysellerestimates Eitherbuyercanconductestimateinternallyortakeestimate fromanindependentconsultingcompanywhoisnotoneof thosebidders ScreeningSystems Requiresminimumcriteria Disqualifysellerswhodoesntmeetcriteriawaybeforeother Analysis Sellerratingsystem Takespastperformanceintoaccount Ex:Urbanspoon.com orYelporfoursquare
147
WeightingSystems
Themethodforquantifyingqualitativedatatominimizetheinfluenceofpersonalbiasonsourceselection. Eachorganizationwouldhaveaseparatelistofcriteriatoselecttheseller.Allcriteriaarenotsameinthe preference,therewillbesomevariancepreference.Thosecanbedividedona100%scale. Assignnumericalweightspersellertoevaluationcriteria.Thesequalificationsareparticularseller'sabilitymeet thecriteria.Inthebelowexamplethesellersabilityismeasuredonthescaleof110.
Seller1 Criteria Preferences
Qualification againstcriteria Score
Seller2
Seller3
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
QualifiedSellers
Sellerswhoarequalifiedtodeliverproducts, services,orresultsbasedontheprocurement requirementsidentifiedforaproject. Listofqualifiedsellerscanbeobtainedfrom historicalinformationaboutdifferentsellers. Iftherequiredresourcesarenewtothe organization,someresearchshouldbedonein collaborationwiththePurchasing Department.
148
ProcurementContractAward
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.
334
ProcurementNegotiations
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
149
150
MonitoringandControlling ProjectWork
10ProcessesinthisProcessGroup:
4.4IdentifytheMonitorandControlProjectWorkProcess ReviewDeliverablesandWorkResults
4.5DevelopanIntegratedChangeControlSystem
UtilizetheIntegratedChangeControlSystem
5.5ControltheProjectScope 6.6ControltheProjectSchedule 7.3ControlProjectCosts 8.3PerformQualityControl 10.5ReportonProjectPerformance 11.6MonitorandControlProjectRisk 12.4AdministerProjectProcurements
MonitoringandControl
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
151
MonitoringConsiderations
Whatistobemonitored? Whyisittobemonitored? Whatdataandassociatedproceduresarerequiredtoproduce relevantreportstodetermineprojectprogress? Howdowedeterminehowtotrackactualperformance againstprojectplansandobjectives?
ControlConsiderations
Howarepotentialdeviationsidentifiedandcorrectedbefore theyoccur? Atwhatpointintheprojectshouldcontrolbeexerted? Howmuchdeviationwillbetolerated? Whatkindsofinterventionshouldbeused? Howareprocessissuesidentifiedandresolved? Whatisthebasisforincorporatingmeasurementintofuture processes?
152
ITTO R_[îng Ex_r]is_ El_m_nts of 4.4Monitorandcontrolprojectwork

I,TT,O
ProjectManagementPlan PerformanceReports ChangeRequests ProjectManagementPlan updates Projectdocumentsupdates
MonitorandControlProjectWork ProcessBestPractices
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.
153
ITTO R_[îng Ex_r]is_ El_m_nts of 4.5PerformIntegratedChangeControl

I,TT,O
ProjectManagementPlan WorkPerformance Information ChangeRequests ChangeControlMeetings ChangeRequestsstatus updates

IntegratedChangeControl
Theprocessofidentifying,documenting,approvingor rejecting,andcontrollingchangestotheproject baselines. Reducesrisktoaprojectbygoverningtheexecutionof proposedchangesthatwillaffectscheduleandcostor otherobjectives. Allowsprojectmanagerstorecordrequestedchanges. Helpsensurethatchangesareimplementedina standardizedandapprovedmanner. Helpsminimizedisruptiveeffectofchangesmadeand monitorprogression.
154
CausesofProjectChanges
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
ChangeControlDataFlow
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 Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.
155
ChangeControlProcess
Project Team / Stakeholders Identify Review & Assess Project Manager Capture & Validate Assign for Review Propose Action Action Assign for Action Review and Accept Document and Close
Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc. Change control board(CCB) / Steering Committee
Notify Approve for Review Notify Approve Reject
ChangeControlBoard&Meetings
AlsoknownasTheChangeadvisoryboard(CAB) deliverssupporttothe ChangeManagement teambyapprovingrequested changesandassistingintheassessmentandprioritizationofchanges. ThisbodyisgenerallymadeupofITandBusinessrepresentativesthatinclude:the ChangeManager,Usermanagersandgroups,technicalexperts,possiblethird partiesandcustomers(ifrequired) ProjectManagerispartofCCB ProjectSponsorisfinaldecisionmakingauthorityinCCB
ChangeControlMeetings
Achangecontrolboardisresponsibleformeetingandreviewingthechange requestsandapprovingorrejectingthosechangerequests. Allchangecontrol board decisions are documented and communicated to the stakeholders for information and follow-up actions.
156
5.4VerifyScope
I,TT,O
Projectmanagementplan Requirementsdocumentation Requirementstraceabilitymatrix Validateddeliverables Inspection Accepteddeliverables Changerequests
VerifyScopeandInspection
VerifyScopeistheprocessofformalizingacceptanceofthecompletedprojectdeliverables.Verifying scopeincludesreviewingdeliverableswiththecustomerorsponsortoensurethattheyarecompleted satisfactorilyandobtainingformalacceptanceofdeliverablesbythecustomerorsponsor. Scopeverificationdiffersfromqualitycontrolinthatscopeverificationisprimarilyconcernedwith acceptanceofthedeliverables,whilequalitycontrolisprimarilyconcernedwithcorrectnessofthe deliverablesandmeetingthequalityrequirementsspecifiedforthedeliverables.QCprocessprecedes VerifyScopeprocess.Incasetherearenoadditionalrisks,these2processcanbeperformedparallel.
4.2
4.3
QualityControl
VerifyScope
4.6
Inspection:includesactivitiessuchasmeasuring,examining,andverifyingtodeterminewhetherworkand deliverablesmeetrequirementsandproductacceptancecriteria. Inspectionsaresometimescalledreviews,productreviews,audits,andwalkthroughs InspectionInvolves:

Comparingthebaselinespecificationsandapprovedchangestotheactualprojectresults. Determiningthelikelihoodthatremainingdeliverableswillbecompletedasprojected. Identifyingactionsneededtoensureworkresultswillmeetspecifications,scope,schedule,andbudgetgoals.
Preventionoverinspection.Oneofthefundamentaltenetsofmodernqualitymanagementstatesthatqualityis planned,designed,andbuiltinnotinspectedin.Thecostofpreventingmistakesisgenerallymuchlessthanthecost ofcorrectingthemwhentheyarefoundbyinspection
157
InspectionReportsComponents
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.
5.5ControlScope
I,TT,O
Projectmanagementplan Workperformanceinformation Requirementsdocumentation Requirementstraceabilitymatrix VarianceAnalysis Workperformance measurements Changerequests

158
MonitorScope
Whatdeliverableswerecalledforintheplantodate? Whatdoesthecustomerexpecttodate? Whatdoesthecustomerexpectattheconclusion? Willwebeabletodeliverwhatthecustomerexpects?
VarianceAnalysis
Aquantifiabledeviationawayfromabaseline
ScheduleVariance comparesplannedandactualperformance,notincludingcost CostVariance comparesdeviationsfromthebudget OthersVariances includescope,resources,quality,risk
Identifyvariance
Formalstatusreview Earnedvaluemanagement(EVM)
Assessimpact Identifycause Evaluatecorrectiveactionoptions
FavorableandunfavorableVariances Analyzethemagnitudeofthevariance
Aheadofscheduleandoverbudgetmaybegood BehindscheduleandunderbudgetmaybeOK Aheadofscheduleandunderbudgetisalwaysgood Whetherfavorableorunfavorable reportandevaluate
159
7.3ControlCosts
I,TT,O
Projectmanagementplan Projectfundingrequirements Workperformanceinformation Earnedvaluemanagement Forecasting Tocompleteperformanceindex(TCPI) Performancereviews Varianceanalysis Projectmanagementsoftware Workperformancemeasurements Budgetforecasts Changerequests ReferPMBOKGuide Page: 180
EarnedValue
EarnedValue:
InsimpletermsEVrepresentsthevalueearnedforevery dollarspendontheproject.Itassumesthatallcostsonthe projectareincurredtocreateadditionalvalue EVisdefinedasaprojectmanagementtechniquefor measuringprojectprogressinanobjectiveway
EVpromisesto
Improvethedefinitionofprojectscope Preventscopecreep Communicateobjectiveprogresstostakeholders Keeptheprojectteamfocusedonachievingprogress
160
EarnedValueManagement
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
Example
Module A B C MonthlyBurnRatePlan Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000 Apr 5 $5,000 Activities 10 10 5 Schedule JanFeb FebMar Apr Cost $10,000 $10,000 $5,000
161
Example(Cont)
Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000 Apr 5 $5,000
StatusDate WorkPerformanceInformation CompletedActivities Timesheets&Expenses Jan 5/5 Feb 9/10 Jan $5,500 Feb $9,000
Example(Cont)
Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000
StatusDate
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
162
VariancestoapprovedBudget
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?
Negativevaluesmeansschedule overrun Negativevaluesmeanscostoverrun >1isgood >1isgood
Shortcutstoremembertheseformulas: Forall4formulas,righthandsideof=startswithEV VariancemeansandIndexmeans/ PVisassociatedwithscheduleformulasandACisassociatedwithcostformulas
Example(Cont)
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
163
4ScenariosofFORECASTING
AspirantsareaskedtoprovideForecastintheexam,basedona Scenariospresentedinthequestion.Thereare4possiblescenarios toprovideforecast:
Start
StatusDate WorkCompleted=EV,Moneyspend=AC
Finish.OriginalplanBAC
NeedtoProvideforecastforthisremainingofwork OriginalplanfortheprojectwasBAC.(BudgetatCompletion) NewforecastedvalueisEAC.(EstimateAtCompletion)
1. 2. 3. 4.
ReEstimatetheremainingwork. Remainingworkcanbeperformedasperoriginalplan RemainingworkcanbecompletedatsameCostPerformance Index(CPI) RemainingworkcanbecompletedatsameCostandSchedule PerformanceIndices(CPI*SPI)
ReestimationExample
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.Solutionsarein4slides fromhere
164
Remainingwork asperoriginalplanExample
YouareanITProjectmanagerforaprojectworthof$25,000 budget.Youhaveplanned$15,000workforaparticular period.Aftercompletingtheplannedperiodyouhave completedcertainportionoftheworkworthof$14,000and actuallyspend$14,500.Afterachievingthefirstmilestone thingsareprettyclearandyouareconfidentthatremaining workcanbecompletedasperoriginalplan.Inthisscenario, whatwouldbe thetotalcostoftheprojectwhenitis completed? Understandtheproblemscenario.Solutionsarein3slides fromhere
Remainingworkasper currentcostperformance
YouareanITProjectmanagerforaprojectworthof$25,000 budget.Youhaveplanned$15,000workforaparticular period.Aftercompletingtheplannedperiodyouhave calculatedCPIas.965.Afterachievingthefirstmilestone thingsareprettyclearandyouaresurethatcurrentcost performancewouldcontinuetotheend.Inthisscenario, whatwouldbe thetotalcostoftheprojectwhenitis completed? Understandtheproblemscenario.Solutionsarein2 slides fromhere
165
Remainingworkasper currentcost&Scheduleperformance
YouareanITProjectmanagerforaprojectworthof$25,000 budget.Youhaveplanned$15,000workforaparticular period.Aftercompletingtheplannedperiodyouhave calculatedCPIas0.965andSPIas0.93.Afterachievingthe firstmilestonethingsareprettyclearandyouaresurethat currentcostandscheduleperformancewouldcontinuetothe end.Inthisscenario,whatwouldbe thetotalcostofthe projectwhenitiscompleted? Understandtheproblemscenario.Solutionsareinnextslide
ForecastingETC Modified
RemainingWork(RW)=BAC EV EstimationtoCompleteETC Howmuchmoneyyouneedtocomplete therestoftheproject?
Scenarios Re estimation RemainingworkperformedatOriginalBudgeted rate RemainingworkPerformedatthepresentCPI Remainingworkconsidered bothSPIandCPI EstimationAtCompletion(EAC)
=Newestimate ofRW
=RW
ETC=
=RW/CPI =RW/(CPIxSPI)
OtherFormulasconsideredinforecasting
EstimationAtComplete(EAC)=AC+ETC thisisthenewBAC VarianceAtCompletion(VAC)=BAC EAC
166
Example(Forecasting)
Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000
StatusDate
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
Solvetheproblem1?
Youareprojectmanagerforaconstructionprojectwith $1.2mapprovedbudget.Foraparticularperiodthe PV=600,000andyourSPIis1.08andCPIis.89. Calculatefollowingvalues: 1. EV= 2. AC= 3. SV= 4. CV= 5. EACforall3scenariosotherthanreestimation scenario 6. VACforabove3scenarios
167
Problem1:Solution
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.
Solvetheproblem2?
Youareprojectmanagerforaconstructionprojectwith $100Kapprovedbudget.ForcertainperiodPV=20K, EV=25K,AC=25K. Calculatefollowingvalues: 1. SPI= 2. CPI= 3. SV= 4. CV= 5. EACforall3scenariosotherthanreestimation scenario 6. VACforabove3scenarios
168
Problem2:Solution
SolutiontoProblem2
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
PerformanceReporting Techniques
Technique Varianceanalysis Trendanalysis Earnedvalue performance
Description Comparingactualprojectperformancetoprojectedperformance. Inspectingprojectperformanceoveraperiodoftimetodetermineif performanceisincreasingordecreasing. Comparingprojectedperformancetoactualperformance.
169
ToCompletePerformanceIndex (TCPI)
Anindicatoroftheusageofresourcesfortheremainderof theproject. TCPI=Remainingwork/Remainingfunds. TCPI(BAC)=(BAC EV)/(BAC AC). TCPI(EAC)=(BAC EV)/(EAC AC). TCPIvaluecaneitherbe>or<1whencomparedwithCPI. IfTCPIis>1,theprojectteamshouldbeutilizedinacareful manner. IfTCPIis<1,theprojectteamcanbeutilizedinalenientway.
R_[îng Ex_r]is_ 8.3PerformQualityControl

ITTO ITTO
Projectmanagement plan Qualitymetrics Qualitychecklists Workperformance measurements Approvedchange requests Deliverables Causeandeffect diagrams Controlcharts Flowcharting
Histogram Paretochart Runchart Scatterdiagram Statisticalsampling Inspection Approvedchange requestsreview Qualitycontrol measurements Validatedchanges Validateddeliverables Changerequests
170
WhatisQualityControl
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
10QCTools&Techniques
TheQCToolsaresimplestatisticaltoolsusedforproblemsolving.KaoruIshikawa hasstatedthatthese7toolscanbeusedtosolve95percentofallproblems.The seventoolsandtechniquesareknownasIshikawassevenbasictoolsofquality
1. 2. 3. 4.
5. 6. 7.
Cause&EffectDiagram ControlCharts Flowcharting Histogram ParetoCharts RunCharts ScatterDiagram
Other3QCtoolsinPMBOKGuide StatisticalSampling Inspection ApprovedChangeRequestsReview
171
Variance&Causes
Variance:Thequantifiabledevianceoramountofdeparturefrom expectedresultsforanyproductorresult,includingquality, schedule,cost. Sourcesorreasonsfordeviationsfromtheexpectedstandard. Twotypes:
Random:Alwayspresentinwork.Unavoidable. Special:Unusual,sporadicoccurrences.
Resultofsomeunexpectedcircumstance. Notcausedbyaflawintheoverallproductionprocess.
Example:Variancesinthemetropolitanbusschedules.
Randomcauses:Weatherandtrafficconditions. Specialcause:Minortrafficaccident.
The6SigmaLimit
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
172
ControlCharts
Controlchartsprovidearunningrecordofaprocess.Theyhelpyoudecidewhen aprocessisrunningsmoothlyandwhenitneedsattention.Specifically,control chartscanhelpyoudeterminewhetherthevariationoccurringinaprocessis causedbycommonorspecialcauses TheallowedrangeforprocessinstancesarebetweenUpperControlLimit(UCL), andLowerControlLimit(LCL).TheUCLissetat3G andLCLissetat3G
197
ControlChart OutofControl
ProcessOutofControlcanoccurin2situations
OutsideofUCLorLCL:Aspertheexpectationsprocessoccurrencesshouldbeeithersideofthemeansand withinthelimitsofUCLandLCL.Anoccurrenceoutsideoftheselimitsistreatedoutofcontrol Ruleof7:SevenconsecutiveoccurrencesononesideofthemeanshowsinstabilityandalsotreatedasOut ofControl.Ruleof7iskindofTriggerorsymptomsforOutofcontrolforscenarioabove
IndicatesInstability UCL UCL
LCL
LCL
173
Histogram
Ahistogramisatypeof frequencyplot tovisuallydisplayhowoften somethingoccurs.Thedataiscollectedinconsecutiveorderof occurrenceinaprocess andplottedonagraphwiththeyaxis labeledfrequencyorcountandthexaxismarkedintheunitof measureforthevariableofinterest
210
ParetoDiagrams
TheParetochartisusedtoprioritizewhichcontributorsmakethebiggestimpact onaproblem,orwhichrepresentthelargestareasofopportunity.Thesediagrams communicatethe 80/20rule,whichstatesthat80%ofaneffectcomesfrom20% ofthecauses.
Cumulative Percentage of Failures
100% 80% 60%
40% 20% 0% A B C D Causes of Failure E
174
RunChart
Similartoacontrolchartwithoutdisplayedlimits,arunchartshows thehistoryandpatternofvariation.Arunchartisalinegraphthat showsdatapointsplottedintheorderinwhichtheyoccur. Runchartsshowtrendsinaprocessovertime,variationovertime, ordeclinesorimprovementsinaprocessovertime. Trendanalysisisperformedusingrunchartsandinvolves mathematicaltechniquestoforecastfutureoutcomesbasedon historicalresults. Trendanalysisisoftenusedtomonitor
Technicalperformance.Howmanyerrorsordefectshavebeen identified,andhowmanyremainuncorrected? Costandscheduleperformance.Howmanyactivitiesperperiodwere completedwithsignificantvariances?
211
ScatterDiagram
AScatterdiagramisagraphicdisplayofasetofordered pairsofnumericaldatapoints(XandY).Byconvention,the firstvariableinthepairistheindependentfactor(X) plottedalongthehorizontalaxis,andthesecondisthe dependentvariable(Y)plottedontheverticalaxis
212
175
StatisticalSampling
Atechniqueusedtodeterminecharacteristicsof anentirepopulationbasedonactual measurementofitsrepresentativesample. Producesaprocessthatdoesnotrequire inspectionofeveryitem. Example:Pollingorganizations.
Askquestionsofasmall,randomsample. Answersgivenbythesamplegroupsuggesthowan entiregroupmayfeelregardinganissue.
QCOutputs
QualityControlMeasurements:Qualitycontrolmeasurementsare thedocumentedresultsofqualitycontrolactivitieswhicharekey inputsofQualityAssurancemeasurements ValidatedChanges:Anychangedorrepaireditemsareinspected andwillbeeitheracceptedorrejectedbeforenotificationofthe decisionisprovided.Rejecteditemsmayrequirerework. ValidatedDeliverables:Agoalofqualitycontrolistodeterminethe correctnessofdeliverables.Theresultsoftheexecutionquality controlprocessesarevalidateddeliverables.Validateddeliverables areaninputtoVerifyScope(5.4)forformalizedacceptance.
DirectandManage ProjectExecution Output:Deliverables
QualityControl Output:Validate Deliverables
VerifyScope Output:Accepted Deliverables
176
10.5ReportPerformance
I,TT,O
Projectmanagementplan Workperformanceinformation Workperformancemeasurements Budgetforecasts Varianceanalysis Forecastingmethods Communicationmethods Reportingsystems Performancereports Changerequests
VarianceAnalysis
Varianceanalysisisanafterthefactlookatwhatcauseda differencebetweenthebaselineandtheactual performance. Commonstepsare:
Verifythequalityoftheinformationcollectedtoensurethatitis complete,consistentwithpastdata,andcrediblewhen comparingwithotherprojectorstatusinformation, Determinevariances,comparingtheactualinformationwiththe projectbaselineandnotingalldifferencesbothfavorableand unfavorabletotheprojectoutcome. Determinetheimpactofthevariancesintheprojectcostand scheduleaswellasinotherareasoftheproject Ifapplicable,analyzethetrendsofthevariancesanddocument anyfindingsaboutthesourcesofvariationandtheimpactarea
177
ForecastingMethods
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.
Performancereports
Performancereportsorganizeandsummarizetheinformationgathered,and presenttheresultsofanyanalysisascomparedtotheperformancemeasurement baseline. Reportsshouldprovidethestatusandprogressinformation,atthelevelofdetail requiredbyvariousstakeholders,asdocumentedinthecommunications managementplan. Commonformatsforperformancereportsinclude
Barcharts Scurves Histograms.
Performancereportsareissuedperiodicallyandtheirformatmayrangefroma simplestatusreporttomoreelaboratereports. Asimplestatusreportmightshowonlyperformanceinformationsuchaspercent complete,orstatusdashboardsforeacharea(e.g.,scope,schedule,cost,and quality)
178
TabularPerformanceReport
Atabularandsimpleperformancereport showsthestatusofWBSelements
271
ElaboratedStatusReportsample
Sectionstonotice: Projectstatus FinancialPerformance ProjectScore ProjectPerformance againstdeliverables Statusitems Activitiesfornextperiod Issues, recommendedresolutions RiskSummary
179
11.6MonitorandControlRisks
ITTO Riskregister Project managementplan Workperformance information Performance reports Riskreassessment Riskaudits Varianceandtrend analysis Technical performance measurement Reserveanalysis Statusmeetings Riskregister updates Changerequests I,TT,O
TheProjectRiskResponseAudit
Theprojectriskresponseauditprocessexamines:
Theteam'sabilitytoidentifyrisks. Theeffectivenessofriskresponseplans. Theperformanceofriskowners.
Auditmaybeperformedby:
Athirdparty. Theproject'sriskofficer. Qualifiedpersonnel.
Riskresponseauditforaproject
180
HowtoMonitorandControl ProjectRisks
Guidelines Whenaneventaffectstheprojectobjectives,consulttherisk responseplantoidentifyrisksandtriggers. Monitortheenvironmentforanynewrisks. Monitortheeffectivenessoftheriskresponse,contingency,and fallbackplans. Dealwithunforeseenrisksbysystematicallyplanningareasoned response. Updateprojectdocumentationaschangesareindicated. Managethecontingencyreserve. Example:Thedriverssafetyvideoprojectexperiencesstaffing changesandtheteamdevelopsalternativestrategiesinresponseto therisk.
12.3AdministerProcurements
I,TT,O
Procurement documents Projectmanagement plan Contract Performancereports Approvedchange requests Workperformance information Contractchangecontrol system Procurement performancereviews Inspectionsandaudits Performance reporting Paymentsystems Claimsadministration Recordsmanagement system Procurement documentation Changerequests ReferPMBOKGuide Page: 335
181
AdministerProcurements
Thisprocessfocusesonmanagingprocurementrelationships, monitoringcontractperformance,andmakingchangesand correctionsasneeded. Boththebuyerandthesellerwilladministertheprocurement contract toensurethatbothpartiesmeettheircontractual obligationsandthattheirownlegalrightsareprotected. TheAdministerProcurementsprocessensuresthatthesellers performancemeetsprocurementrequirementsandthatthebuyer performsaccordingtothetermsofthelegalcontract. Manyorganizationstreatcontractadministrationasan administrativefunctionseparatefromtheprojectorganization. Whileaprocurementadministratormaybeontheprojectteam, thisindividualtypicallyreportstoasupervisorfromadifferent department.
TheDutiesoftheProcurements Administrator
Theprocurementsadministratorsdutiesinclude:
Actingascomplianceofficer. Interpretingcontractspecifications. Monitoringsellerperformance. Integratingsubcontractedelements. Managingchangerequests. Resolvingdisputesandmanagingpayments. Dealingwithcontractbreach.
182
contractchangecontrolsystem
ChangestoContractTerms
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
ProcurementPerformanceReporting
ProcurementPerformanceReviews:Aprocurementperformancereview isastructuredreviewofthesellersprogresstodeliverprojectscopeand quality,withincostandonschedule,ascomparedtothecontract.
Itcanincludeareviewofsellerprepareddocumentationandbuyer inspections,aswellasqualityauditsconductedduringsellersexecutionofthe work. Theobjectiveofaperformancereviewistoidentifyperformancesuccessesor failures,progresswithrespecttotheprocurementstatementofwork Reviewsmaytakeplaceasapartofprojectstatusreviewswhichwould includekeysuppliers
Inspectionsandaudits:canbeconductedbythebuyerduringexecution oftheprojecttoverifycomplianceinthesellersworkprocessesor deliverables. PerformanceReporting:Performancereportingprovidesmanagement withinformationabouthoweffectivelythesellerisachievingthe contractualobjectives
183
ProcurementManagement Systems
PaymentSystems:
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
AdministerProcurementsResults
ProcurementDocumentation
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.
184
185
12.4CloseProcurements
I,TT,O
Projectmanagementplan Procurementdocumentation Procurementaudits Negotiatedsettlements Recordsmanagementsystem Closedprocurements
Procurementsareclosed
Whenacontractiscompleted Whenacontractisterminatedbeforetheworkis completed AdministrativeClosureVs ProcurementClosure
MultiplePhases=multipleAdministrativeClosures MultipleContracts=multipleProcurementClosures OneandOnly=ProjectClosure
186
ProcurementAudits
Aformalevaluationofboththeseller'sperformanceofthe contract,andtheeffectivenessoftheprocurementprocessitself. Establishesarecordthatmaybeusedtoshapeprocurement practicesinothercontractsforprojects. Example:Evaluatingthesecondgradephonicstextbooksellers. NegotiatedSettlements:
Inallprocurementrelationshipsthefinalequitablesettlementofall outstandingissues,claims,anddisputesbynegotiationisaprimary goal. Wheneversettlementcannotbeachievedthroughdirectnegotiation, someformofalternativedisputeresolution(ADR)includingmediation orarbitrationmaybeexplored. Whenallelsefails,litigationinthecourtsistheleastdesirableoption.
ClosureDocumentation
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

187
4.6CloseProjectorPhase
I,TT,O
ProjectManagementPlan AcceptedDeliverables OrganizationalProcess Assets ExpertJudgment FinalProducts,service,or Resulttransition

ClosePhaseorProject
CloseProjectorPhaseistheprocessoffinalizingall activitiesacrossalloftheProjectManagementProcess Groupstoformallycompletetheprojectorphase Reviewinformationfromthepreviousphaseclosuresto ensurethatallprojectworkiscompletedandtheproject hasmetitsobjectives ReviewtheProjectManagementtoensurecompletion beforeconsideringtheprojectclosed IfProjectisterminatedbeforecompletioninvestigateand documentthereasons
188
AdministrativeClosure
Involves:
Verifyinganddocumentingprojectresultstoformalize projectorphasecompletion. Gatheringandupdatingprojectdocumentationand relevantrecordsandreports. Ensuringthatthephaseorprojectrequirementswere metandformalacceptancewasgranted.
ProjectRecordstoArchive
Projectmanagementplan Performancerecords Contractdocumentation Communications Projectdatabases Staffevaluations Lessonslearned Acceptancedocumentation
189
LessonsLearnedReports
WhatWentWell Continue WhatdidntwentWell Stop Whatnewthingsweneedtoincorporate Start ConductedbyPM,Sponsorandentireteam
Documentsthatcapturesalientandhelpful informationabouttheworkdoneinaprojectora projectphase. Compiledforthebenefitofupcomingprojectphases andfutureprojects
ConsiderationsofLessons Learned
Schedulinglessonslearned Conflictmanagementlessonslearned Sellerslessonslearned Customerlessonslearned Strategiclessonslearned Tacticallessonslearned
190
CloseoutMeetings
Sessionsheldatendofprojectorphase. Involves:
Discussingthework. Capturinglessons.
Mayincludestakeholders,teammembers,projectresources,and customers. Example:Closeoutmeetingsforfiresafetyequipmentinspections. Thestakeholders,projectteammembers,andrepresentativesfrom thefiremarshal'sofficewill:

Reviewrecords. Completeandsigninspectioncertificates. Review,approve,andsignplansforevacuationprocedures. Documentinspectionsandtestingoffiresafetyequipment.
HowtoClosetheProjectorPhase
Toproperlycloseaprojectorphase: 1. Useaprojectterminationchecklist,ifavailable. 2. Gatherandorganizeperformancemeasurementdocumentation. 3. Releaseprojectresources. 4. Updaterecordsandresourcepooldatabase. 5. Analyzeprojectsuccessandeffectiveness. 6. Preparelessonslearnedreportsandafinalprojectreport. 7. Obtainprojectapprovalfromcustomer. 8. Archiveindexedprojectrecords. 9. Celebratethesuccessoftheproject.
191
192
193
194
195
196
197
198
199
200
201
202

2012 May Print

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

2012 May Print

Caricato da

Copyright:

Formati disponibili

CertSchool PMP | CAPM Training Slides

ExecutingProjectWork MonitoringandControllingProjectWork ClosingtheProject

CertSchool PMP | CAPM Training Slides

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

CertSchool PMP | CAPM Training Slides

Minimum5Yearsof totalexperience 4500HoursofProject ManagementPractice

CertSchool PMP | CAPM Training Slides

MEMBER Exam Fee: $405 ReExam Fee: $275

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

MEMBER Exam Fee: $225 ReExam Fee: $150

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

CertSchool PMP | CAPM Training Slides

CertSchoolsuggeststhatyoushouldsecureatleast70%(123/175)ormore. 4HoursMaximumTimeAllowed 1m12Sec.perQ

CertSchool PMP | CAPM Training Slides

CertSchool PMP | CAPM Training Slides

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)

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

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

CertSchool PMP | CAPM Training Slides

CertSchool PMP | CAPM Training Slides

ProjectManagementBodyofKnowledge, (PMBOKGuide) FourthEdition

PMBOK GuidewasadoptedbyANSI(1999)asanAmericanStandardforProjectManagement.TheFourth Editionwasissuedin2008.

CertSchool PMP | CAPM Training Slides

PMI ProcessGroups areappliedto eachphaseof theproject

Copyright2012CertSchool.com.Allrightsreserved. ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage6 PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.

CertSchool PMP | CAPM Training Slides

CertSchool PMP | CAPM Training Slides

Product Life Cycle

Project Life Cycle

R_[^ing Ex_r]is_ ProcessGroupDefinitions

CertSchool PMP | CAPM Training Slides

R_[^ing Ex_r]is_ NineKnowledgeAreas

R_[^ing Ex_r]is_ ProcessChart

CertSchool PMP | CAPM Training Slides

Couldbeprogressivelyelaborated Aprojectcouldoccurasaresultofabusiness opportunityormarketneed

Copyright2012CertSchool.com.Allrightsreserved. ReferenceProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage: PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.

CertSchool PMP | CAPM Training Slides

CertSchool PMP | CAPM Training Slides

Organizationsarebuildonamission.Severalstrategiesaredevelopedtoachieve thatmission.Toachieveeachstrategyseveralprojectareinitiated. APortfolioiscreatedtoachieveeachstrategy

CertSchool PMP | CAPM Training Slides

Portfoliomanagementinvolvesagroupof projects(and/or)programsthathavesome degreeofinteractivityrelatedtoanoverall strategicbusinessgoal. Theinteractivitycouldberelatedtofunding, performingorganization,ortypeofproject.

Thiscouldalsoinvolvetheprograminteracting withoperationsasaresultoftheintegrationofa program(anditsproject)intooperations.

CertSchool PMP | CAPM Training Slides

CertSchool PMP | CAPM Training Slides

Copyright2012CertSchool.com.Allrightsreserved. ImpactofVariableBasedonProjectTimeimagefrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEditionPage17 PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.

CertSchool PMP | CAPM Training Slides

Detailisaddedtoplansinprogressiveelaboration Copyright2012CertSchool.com.Allrightsreserved. PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.

CertSchool PMP | CAPM Training Slides

CertSchool PMP | CAPM Training Slides

Responsibility Respect Fairness Honesty

Copyright2012CertSchool.com.Allrightsreserved. BasedonPMICodeofEthicsandProfessionalConduct At:http://www.pmi.org/en/AboutUs/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.

CertSchool PMP | CAPM Training Slides

Practitionernegotiateinagoodfaithanddonotexercisethepowerof theirexpertiseorpositiontoinfluencethedecisionsoractionsof othersinordertobenefitthempersonallyatothersexpense

CertSchool PMP | CAPM Training Slides

CertSchool PMP | CAPM Training Slides

CertSchool PMP | CAPM Training Slides

CertSchool PMP | CAPM Training Slides

Therearefourmajorfactors thataffectthedecisionstyle: timeconstraints,trust,quality, andacceptance.

CertSchool PMP | CAPM Training Slides

Badfaithnegotiation:isaconceptinnegotiationtheorywherebypartiespretend toreasontoreachsettlement,buthavenointentiontodoso,forexample,one politicalpartymaypretendtonegotiate,withnointentiontocompromise,for politicaleffect.

Copyright2012CertSchool.com.Allrightsreserved. AppendixGfrom ProjectManagementBodyofKnowledge(PMBOK)Guide FourthEdition417 421 PMP,CAPM,PMBOK,PMIareRegisteredMarksofProjectManagementInstitute,Inc.

CertSchool PMP | CAPM Training Slides