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200 MCQs
175 are scored, 25 are not scored
106 correct out of 175 i.e. 61%
Only Pass or Fail
Questions will test knowledge, application & analysis
4 hours
15 minutes familiarization
Books not allowed
Mobiles not allowed
4
Program Introduction
ELIGABILITY CRITERIA FOR PMP EXAM
Project Project
General No. of
Category Management Management Experience
Education Questions
Education Experience
Bachelor’s 3 years within
1 4,500 hours
degree 35 contact last 6 years
200
High school hours 5 years within
2 7,500 hours
graduate last 8 years
5
Introduction
What is a Project?
6
Introduction Project Management Body of Knowledge
PMBOK® Guide
Contains the standard for managing most projects most of the time
across many types of industries
Temporary
has a definite beginning and a definite end, not ongoing efforts.
Ceases when objectives have been attained.
Unique:
the product or services is different in some way from other products or
services.
The presence of repetitive element does not change the fundamental
uniqueness of the project work.
8
Introduction
Projects versus operations
9
Introduction
What is Project Management?
10
Introduction Relationships among Project, Program, Portfolio,
and Organization
11
Introduction Relationships among Project, Program, Portfolio,
and Organization
Program
Group of related projects and other work that have a common
outcome or goal
Coordinating between project for greater benefits
Focuses on projects interdependencies: objectives, conflicts,
issues, shared resources, …etc.
Portfolio
Centralized management to achieve strategic business goal
Group of programs, projects and other work that may not be
directly related.
12 Focuses on prioritization and resource allocation
Introduction
Comparative Overview of Project, Program , and
Portfolio Management
13
Introduction Projects and strategic planning
14
Introduction
Project management office (PMO)
17
Introduction
Organizational influences
Project stakeholders
Functional
Weak-Matrix
Balanced-Matrix
Strong-Matrix
Projectized
19 Composite
Introduction
Functional organization
20
Introduction
Functional Organization - Key Points
22
Introduction
Balanced Matrix Organization
23
23
Introduction Strong Matrix Organization
24
Introduction
Projectized Organization
25
Introduction
Projectized Organization – Key Points
28
Introduction Organization Structure
29
Introduction
Organizational process assets
It includes:
The conditions that are not under control of project team that
influence, constraint or direct the project.
Inputs to most planning processes
Project team updates and add to it through out the project
It includes:
• Organization culture and structure
• Existing staff and their skills, competencies, experience
• Work authorization system
• Government standards and regulations
• Geographic location
• Marketplace conditions
• Infrastructure
• Political climate
31 • PMIS: Project management information systems (software / tools)
Introduction Stakeholders
People or organizations whom interest may be positively or negatively
impacted by the project.
They may also include those who may exert influence over the project
but would not otherwise be considered stakeholders.
Sponsor
Sellers
Business partners
Functional managers
Project team
32
Government
Consultants
Introduction Product and project Life Cycles
Project
Manageme
nt
processes
33
Introduction Project life cycles (phases)
• Overlapping
34
Introduction Project life cycles (phases)
35
Introduction
Project Management Process groups
36
Introduction
Initiation process group
Business need
Project has so
many problems
that you reevaluate
business need
37
Introduction
Planning process group
38
Introduction
Executing process group
Project planning is
completed
Executing
process
Integrated change group
control results in a
changed project
management plan
39
Introduction Monitoring & controlling process group
Initiation: to review
project charter
Requested changes
Planning: to re-plan
Monitoring & parts of the project
Work performance controlling
information process
group Executing: to repair
defects
Deliverables
Closing if the
project is completed
40
Introduction
Closing process group
Project phase is
completed
Closing
Project is complete process
group
Project is terminated
41
Introduction
KNOWLEDGE
AREAS INITIATING PLANNING EXECUTING MONITORING & CLOSE OUT
CONTROLLING
1-Integration
2-Scope
3-Time
4-Cost
5-Quality 47 Processes
6-H.R.
7-Comm.
8-Risk
9-Procurement
42 10-Stakeholder
Inputs Outputs
Tools
&
Techniques
44
To be explained after all knowledge areas
Integration
Project Initiation
Project Charter
45
Initiation & Feasibility Study
Project selection methods - Business case
46
Initiation & Feasibility Study
PRESENT VALUE (PV)
The amount that a future sum of money is worth today given a specified rate
of return which is Opposite to the Future Value.
FV
FV n years
PV = i %, interest rate
( 1 + i )n PV
What is the present value of $300,000 received three years from now
if we expect 10% interest rate?
47
($225,394)
Initiation & Feasibility Study
NET PRESENT VALUE (NPV)
Present value of the total benefits – the costs over many time
periods
You have two projects to choose from. Project A will take 3 years and
48 has a NPV of $45,000. Project B will take 6 years and has a NPV of
$85,000. which one would you prefer?
Initiation & Feasibility Study
INTERNAL RATE OF RETURN (IRR)
It's the interest rate at which project revenue and costs are equal
You have two projects to choose from. Project A with an IRR of 21%
or project B with an IRR of 15%. which one would you prefer?
Calculated as:
If the BCR of Project A is 2.3 and the BCR of project B is 1.7, which
project would you select?
50
Initiation & Feasibility Study
PROJECT SELECTION
51
Initiation & Feasibility Study
OTHER DEFINITIONS
Opportunity Cost
The opportunity given up by selecting one project over another.
You have two projects to choose from: Project A with an NPV of $45,000 or
Project B with an NPV of $8,ooo. What is the opportunity cost of selecting
project B?
Answer: $45,000.
Sunk Costs
Expended costs.
You have a project with an initial budget of $1,000,000. You are halfway through
the project and have spent $2,000,000. Do you consider the $1,000,000 over
budget when determining whether to continue with the project?
52
Answer: No. The money spent is gone.
Initiation & Feasibility Study
OTHER DEFINITIONS - 2
Working Capital
Current assets minus current liabilities, or the amount of money the
company has available to invest, including investment in projects
Depreciation
Large assets (Equipment) lose value over time
1. Straight line depreciation: (same amount every year)
2. Accelerated (faster than straight line)
53
Initiation & Feasibility Study
Example: Case Study
A training company has the following expected cash in and Cash out results
for one training program, Calculate the NPV and IRR for this project at 10%
& 25% discount rate.
Brief conclusion accordingly.
Use Excel & Power point to present your results using charts.
0 1000 0 At 25%
1 150 625
2 150 550
IRR
3 200 530
54 4 200 470
5 250 450
Project Scope Management
55
Project Scope Management
Project Scope Management
Ensure that the project includes all the work required, and only the
work required, to complete the project successfully.
56
Project Scope Management
Product Scope
Product scope
The features and functions that are to be included in your
products or service or result of the project.
Completion is measured against the requirements.
Project Scope
The work that must be done to deliver the specified product.
Completion is measured against the project management plan
(scope baseline).
Deliverable
is a product produced as part of a project, such as hardware or
software, planning documents, report, or meeting minutes
57
Project Scope Management
58
Plan Scope Management
Project Scope Management
Collect Requirements
59
Project Scope Management
60
Collect Requirements
Project Scope Management
Collect Requirements - Tools & Techniques
Interviews
Formal or informal interview of stakeholders by asking prepared
questions
Focus groups
Specific stakeholder of SMEs
Conversation is directed by a trained moderator
Facilitated workshops
Cross-functional teams and stakeholders interact, discover and
resolve issues, and reach consensus
Group creativity techniques
Brainstorming, Nominal group technique (voting), mind mapping,
affinity diagram, and multi-criteria decision analysis
Group Decision making techniques
61
Unanimity (Delphi technique), Majority, plurality, Dictatorship
Project Scope Management
Define Scope
62
Project Scope Management
Define Scope
Value Engineering
Occure During desin focuses in maximizing value
Value Analysis B A
Occure after design often by contractor analysis and recomendation
C
Constructability Study
Occure During Construction focuses ion effecient and effective
construction techniques
Optimum Process
63
Project Scope Management
Define Scope - Output
Create WBS
One of the most important project management tools.
Visualizes the entire project.
Foundation for accurate planning, estimating, and project control.
Control mechanism to keep the project on track.
Builds team consensus and buy-in to the project.
Prevents scope creep or change.
65
Project Scope Management
66
Create WBS
Project Scope Management
Create WBS
Activity list
Project Network
control diagram
Risk
WBS Staffing
Management
Quality Estimating
Management
67 Budgeting Scheduling
Project Scope Management
WBS Dictionary
Work Package:
Code of Account: Work Package #: Department:
Responsible:
Work package description:
68 Approval:
Project Scope Management
WBS Dictionary
The WBS dictionary is where work component descriptions are
documented.
Control Scope
Measuring project and product scope performance and
manage changes to scope baseline
Prevent scope creep and unnecessary changes
71
Project Time Management
Planning Controlling
1. Plan schedule management 7. Control Schedule
2. Define Activities
3. Sequence Activities
4. Estimate Resources
5. Estimate Duration
72 6. Develop Project Schedule
Project Time Management
Plan schedule management
73
Project Time Management
Define activities
Identifying the specific actions to be performed to produce the
project deliverables
Breakdown work packages into activities
74
Project Time Management
Define activities
1- Define Activities 2- Estimate Resourses 3- Estimate Duration
Attributes Resources
Work
Code Activity List Q P OD
Package
Manpower Material Machine S/C
Activity attributes:
activity identifier, codes, activity description
Logical relationships, Predecessor, successor, leads and lags
Imposed dates, and resource requirements
Constraints, and assumptions
75 Person responsible, and work geographic area
Activity type, and technical documentations
Project Time Management
Sequence Activities
Identifying and documenting relationships among the project activities
76
Project Time Management
Sequence Activities: Tools & Techniques
1. Precedence Diagramming Method (PDM)
A B C
Start D E Finish
78
Project Time Management
PDM vs ADM
Fail
Allow Looping.
Design
Update
Rework
Mandatory Discretionary
Hard Logic preferred logic, preferential logic, or Soft logic
Contractually required or inherent in Should be documented and reviewed while
the nature of the work (Must) schedule compression (can be changed)
Established based on best practices
Internal External
Internal relationships between project Relationships between project activities and
activities non-project (external) activities
Within project team’s control Outside project team’s control
External activities being done by external
sources (supplier, government, …)
Internal Mandatory
81
External Discretionary
Relationship types
Project Time Management
Predecessor Successor
(A) Finish-To-Start
Activity Activity
(1) (2)
(C) Finish-To-Finish
Activity
(1)
Activity
(2)
Activity
(1) (D) Start-To-Finish
82
Activity
(2)
Project Time Management
3. Applying Leads and Lags
1 2 3 4 5 6 7 8 9 10
A (DU=4)
B(DU=3)
FS 0
A (DU=4)
B(DU=3)
FS+3
A (DU=4)
83
B(DU=3)
FS-2
Project Time Management
2. Project Document Updates: include Activity list, Activity attributes, and risk
register
84
Project Time Management
Estimate Activities Resources
85
Slide No. 85
Project Time Management
Estimate Activity Resources: Tools & Techniques
86
Project Time Management
Estimate Activity Resources - Outputs
88
Project Time Management
Estimate Activity Durations: Tools & Techniques
89
Project Time Management
Estimate Activity Durations: Tools & Techniques
6- Reserve Analysis
To accommodate the risks remain in the project after plan risk response process (Risk
Management)
To account for “known unknowns” (or simply knowns)
Reflected in the project schedule baseline
2. Management Reserve:
Any extra amount of funds or duration to be set aside to cover unforeseen risk
(unknown unknowns)
90
Develop Schedule
Project Time Management
91
Project Time Management
Develop Schedule: Tools & Techniques
Schedule compression
92
Project Time Management
Develop Schedule: Tools & Techniques
2. Critical Path Method (CPM)
Determining the early and late start and finish dates for each activity
(without regard for any resource limitations)
Near-Critical Path
Float (Slack)
Float (Total Float): The amount of time an activity can be delayed without
delaying the project or milestone
93
Free float: The amount of time an activity can be delayed without delaying the early start date of its successor(s)
Project Time Management
2. Critical Path Method (CPM)
ES EF
Activity
LS OD LF
EF=ES+OD-1
94 LS=LF-OD+1
TF=LS-ES=LF-EF
Project Time Management
Early Start, Early Finish
Calculation
4 10 Forward Pass
1 3 D 7
21 37
A 3
I 17
12 20
E 9
1 11 38 40
B 11
K 3
12 16
F 5
17 21
J 5
10 14
G 5
1 9
C 9
28
95 10
H 19
ES = Next Day of Highest date value from its immediate predecessor EF = ES+D-1
Project Time Management
Late Start, Late Finish
Calculation
Backward Pass
D 7
A 3 14 20
I 17
11 13
21 37
E 9
20
12
B 11
K 3 40
1 11 38
F 5
28 32
J 5
33 37
G 5
28 32
C 9
10 18
96 H 19
19 37
LF = Previous Day of lowest date value from its immediate successor LS = LF-D+1
Project Time Management
Total Float Calculation
4 10
1 3 D 7
21 37
A 3 14 10 20
I 17
11 13
10 12 20
21 0 37
E 9
1 11
B 11
12 0 20 38 40
K 3
12 16
1 0 11
F 5
38
0 40
17 21
28 16 32
J 5
10 14
G 5
33 16 37
1 9 28 18 32
C 9
10 28
97 10 9 18
TF = LS-ES (or)
H 19
TF = LF-EF
19 9 37
Project Time Management
Critical Path of the Project
4 10
1 3 D 7
21 37
A 3 14 20
I 17
11 13
12 20
21 37
E 9
1 11
12 20 38 40
B 11
K 3
12 16
1 11 38 40
F 5
17 21
28 32
J 5
10 14
33 37
G 5
1 9 28 32
C 9
10 28
98 10 18
H 19
19 37
Project Time Management
Preceding Diagramming Method
• Exercise
D
3
B
4 E G
5 5
A I
5 3
C F H
4 3 5
99
Project Time Management
Example:
B
A
C D
Standard
Most Activity Deviation Variance
Likely Pessimistic Duration (SD) (SD)2
Activity Optimistic
4 6 4 0.67 0.4489
A 2
3 5 3.33 0.5 0.25
B 2
7 10 7 1 1
C 4
5 6 5 0.33 0.1089
D 4
100
1.8078
101
Project Time Management
Develop Schedule: Tools & Techniques
4. Resource Optimization
Leveling
Used when shared or critical resources are only available at certain times or
limited quantities (over allocated) or to keep resource usage at a constant
level
It often causes the original critical path to change
Smoothing:
Adjust activities so that resources don’t exceed predefined limit
Don’t delay the project or change the critical path, hence may not be
applicable for all resources
102
Project Time Management
Example: Resource smoothing
103
Project Time Management
Develop Schedule: Tools & Techniques
5. Modeling techniques
104
Project Time Management
Develop Schedule: Tools & Techniques
7. Schedule Compression :
Shortening the schedule without changing the project scope
105
Choose the option which has the least negative impact on the project
Project Time Management
Example: Crashing
How much does it cost to reduce the project’s overall duration to 13 days ?
B
A
C D
A 6 4 6000 1000
B 4 3 5000 750
C 8 7 8000 500
D 6 5 6000 2000
106
109
Project Time Management
Control Schedule: Tools & Techniques
1. Unit Completed
• #Done / # Total Units
2. Duration
• Actual duration / Total duration
3. Start/Finish
• %= 0 or 100
4. Incremental Milestone
• %=% of Milestones Achieved.
5. Supervisor Opinion
• Expert Judgment
6. Cost Ratio
• Actual Cost or Work hours/EAC
110 7. Weighted or Equivalent Units
• Weighted average Matrix
Project Time Management
Control Schedule: Outputs
1. Work Performance information: the Calculated SV & SPI
Planning Controlling
Plan Cost Management Control Costs
Estimate Costs
Determine Budget
112
Project Cost Management
Project Cost Management
The processes required to ensure that the project is completed
within the approved budget
Most stakeholders better understand and are more interested in
financial terms, so project managers must speak their language
113
Project Cost Management
Plan Cost Management
116
Estimate Costs
Estimate Costs - Tools and Techniques
Project Cost Management
117
Project Cost Management
TYPES OF COST:
Variable or Fixed:
• VARIABLE COST_ Any cost that changes with the amount of production or
the amount of work. Examples include the cost of material, Supplier and
wages.
• FIXED COST_ Cost that do not change as production changes. Examples
include set up, rental, etc.
Direct or Indirect:
• DIRECT COST _ Cost that are directly attributable to the work on the
project. Examples are team travel, team wages, recognition and costs of
material used on the project.
119
Project Cost Management
Estimation Classification
• Rough Order of magnitude(ROM): Early stages (-50% to +50%)
• Budget estimate: during planning (-10% to +25%)
• Definitive estimate: Late Stages (-10% / -5% to +10%)
120
Project Cost Management
Determine Budget
121
Project Cost Management
Determine Budget - Tools and Techniques
122
Cost Estimation
Project Cost Management
Padding
Model
Project Manager Control
Uncertain Unknown
Reserve Cost Risk Mgmt. %
124
Project Cost Management
Control Cost
Monitoring cost performance to detect, analyze, and response to
variances from the cost baseline
125
Earned Value Measurement (EVM)
Project Cost Management
Cost Schedule
Planned B.C W.S P.V = B.C.W.S
Actual A.C W.P A.C = A.C.W.P
Example:
You have a project to build a new fence. The fence is four sided as
shown. Each side is to take one day to build and is budgeted for
$1,000 per side. The sides are planned to be completed one after
the other. Today Is the end of day three.
Using the project status chart, calculate EV and all other parameters
as listed here in after. When completed, please interpret what each
answer means?
Do the calculations to three decimal place accuracy on the
exercises.
B
127 A C
D
EV EXAMPLE STATUS CHART
Project Cost Management
Planned Schedule
Actual Progress
Side no. 4 0%
128
Calculate: PV, AC, EV, BAC, SV, CV, SPI, CPI, ETC, EAC, VAC
Project Cost Management EV EXAMPLE SOLUTION
EV = $ 1,860
AC = $ 1,860
This is the ideal situation, where everything goes according to plan.
Case 2
PV = $ 1,900
Time Cost
AC = $ 1,700
130 In this Case, without Earned Value measurements, it appears we’re in good shape.
Expenditures are less than planned.
Project Cost Management
Case 3
PV = $ 1,900 Time Cost
EV = $ 1,500
AC = $ 1,700
With EVM, we see $400 worth of work is behind schedule and $200 overspent
Case 4
PV = $ 2,200 Time Cost
EV = $ 2,400
AC = $ 2,600
The bad news is that our work efficiency is a bit low; we have spent $200 more in
131 order to finish ahead of schedule.
Project Cost Management
Case 5
PV = $ 1,700 Time Cost
EV = $ 1,500
AC = $ 1,500
In this case, the work execution was late but still on budget
Case 6
PV = $ 1,400
EV = $ 1,600 Time Cost
AC = $ 1,400
132 A positive scenario; right? But is it because we are performing better than our
learning-curve standards or because we planned too pessimistically?
Project Cost Management
Case 7
PV = $ 2,000 Time Cost
EV = $ 2,000
AC = $ 2,200
We’re on schedule. But in order to be on schedule, there is a $200 overrun as a result.
Case 8
PV = $ 1,000
EV = $ 0.00 Time Cost
AC = $ 800
A tough one!!!
133 Out of $1,000 worth of scheduled work, no measurable milestone has yet been
accomplished. However, $800 has been spent just getting started.
Project Cost Management
Case 9
PV = $ 0.00 Time Cost
EV = $ 700
AC = $ 900
Work was begun before it was scheduled to start. But while $700 worth of work was
completed ahead of schedule, it cost $900 to do it. (A 22% overrun.)
Case 10
PV =
EV =
Time Cost
AC =
134
Forecasting & TCPI
Project Cost Management
135
Forecasting & TCPI
Project Cost Management
136
Forecasting & TCPI
Project Cost Management
137
Project Quality Management
138
Project Quality Management
Quality Management
Grade Vs. Quality
Quality: “The degree to which a set of inherent characteristics fulfill requirements”
Grade: “A category assigned to deliverables having the same functional use but
different technical characteristics”
ISO 9000
Concerned with "quality management". This means what
the organization does to enhance customer satisfaction by
meeting customer and applicable regulatory requirements
and continually to improve its performance in this regard.
ISO 14000
Concerned with "environmental management". This
means what the organization does to minimize harmful
140 effects on the environment caused by its activities, and
continually to improve its environmental performance.
Project Quality Management
Modern Quality Management
Edwards Deming
142
Project Quality Management
Quality Gurus (2)
Philip Crosby
143
Project Quality Management
Quality Gurus (3)
Joseph Juran
144
Project Quality Management
Plan Quality Management
145
Project Quality Management
Quality: Cost Benefit analysis
147
Cost of Quality (COQ)
Project Quality Management
7 Basic Quality tools
1. Cause & effect diagram: (Fishbone /
Ishikawa): Ask Why? until you reach the root
cause
150
Quality Management and control tools
Project Quality Management
152
Project Quality Management
Control Quality
153
Project Quality Management
QP/QA/AC
QP QA QC
158
Project HR Management
Human Resource Plan
161
Acquire Project Team
Project HR Management
162
Project HR Management
Acquire Project Team - Tools & Techniques
164
Project HR Management
Develop Project Team – Tools & Techniques
Colocation: (tight matrix) gathering the team in same physical location “war
room” to enhance communication
167
Project HR Management
Manage Project Team – Tools & Techniques
168
Project HR Management
Is Conflict bad?
Conflict Management
Opportunity for improvements. Conflict Management
Sources of Conflict?
Schedules.
Project priorities.
Resources.
Technical opinions.
Administrative Procedures.
Cost.
Personality.
Withdraw/Avoid:
Re-treat, postpone decision (better prepared, resolved by others)
Smooth/Accommodate:
Emphasizing areas of agreements rather than differences, need of each others
Compromise/Reconcile:
(Lose-Lose), Solution that partially satisfy all parties
Force/Direct:
(Win-Lose) push one view point at the expense of another, emergency
Collaborate/Confront/Problem solve:
3. Identify solutions
6. Review the solution, and confirm that the solution solved the problem
171
Project HR Management
Conflict Management
Exercise:
173
Project HR Management
Develop Project Team
Types Of Project Manager Power
Reward
Example “ I understand that you have been wanting to participate in
the acceptance testing of this project because of your performance, I
will assigned you as part of that team! “
174
Project HR Management
Develop Project Team
Types Of Project Manager’s Power (continue)
The project manager must have the following skills and understand
when to use them in the project:
Directing
Facilitating
Coaching
177 Supportive
Project HR Management
Motivation theories
McGregor’s theory of X and Y
X Y
Avoid responsibilities and work whenever possible Willing to work without supervision
Need to be watched every minute Can direct their own effort
Incapable Want to achieve
178
Project Communication Management
181
Project Communication Management
Plan Communication Management
182
Plan Communication : Tools & Techniques
Project Communication Management
n = number of stakeholders
183 If n=10, what is the no. of possible comm. channels?
Complexity of comm. increases when no of channels increase.
Plan Communication : Tools & Techniques
Project Communication Management
2. Communication Technology
3. Communication Model
Sender responsibility:
Transmission of the message.
Ensure Information is clear and complete.
Confirm that the message is correctly
understood.
Receiver responsibility:
Ensuring that the entire information received.
Information is understood correctly
185 Message is acknowledged or responded appropriately.
Project Communication Management
Miscommunication- Example
186
Project Communication Management
Miscommunication- Example
187
Project Communication Management
Miscommunication- Example
The CEO will today deliver a short speech to make the sun
disappear for two minutes in the form of an eclipse. This is
something that cannot be seen everyday, so staff will meet
in the car park at ten or eleven. This will be safe, if you pay
a moderate cost.
188
Project Communication Management
Miscommunication- Example
189
Project Communication Management
Miscommunication- Example
Some staff will go to the car park today to see the CEO will
disappear. This is a pity this doesn’t happen everyday.
190
Project Communication Management
Plan Communication: Tools & Techniques
4. Communication Methods:
191
Plan Communication: Tools & Techniques
Project Communication Management
5. Meetings:
Why ?
Exchange Information
Brainstorming
Decision making
192
Plan Communication: Tools & Techniques
Project Communication Management
5. Meetings:
194
Project Communication Management
Manage Communications
195
Project Communication Management
Performance reporting
196
Project Communication Management
Control Communications
197
Project Stakeholder Management
198
Identify Stakeholders
Project Communication Management
Identification
Assessment
199 Classification
Identify Stakeholders
Project Communication Management
Power / Interest
200 Power / Influence
Influence / Impact
Salience model: Grouping by Power, Urgency, and Legitimacy
Plan Stakeholder Management
Project Communication Management
C: Current engagement
D: Desired engagement
202
Manage Stakeholder Management
Project Communication Management
203
Interpersonal skills: Build trust, Resolve conflicts, …
Management skills: Negotiation, Influence, …
Control Stakeholder Management
Project Communication Management
204
Project Risk Management
Risk tolerances: The areas of risk that are acceptable or not acceptable.
“a risk that affects our reputation will not be tolerated”
208
Project Communication Management
Identify Risks
209
Project Risk Management
Risk Register
Root Potential
No Risk +/- Category Objective Triggers
cause responses
1
210
Project Risk Management
Information gathering Techniques
Brainstorming
Delphi Technique
Interviewing
211
Project Risk Management
Diagramming Techniques
Influence diagrams
212
Project Communication Management
SWOT Analysis
• SO strategies: (Max-Max strategy) Growth: Use strengths to capitalize and take advantages of opportunities
• WO strategies: (Min-Max strategy) Cooperate: Utilize the identified opportunities to overcome weaknesses
213 • WT strategies: (Min-Min strategy) Mitigate: Minimize weaknesses and avoid threats
Project Risk Management
Some Examples of risks in construction
Risk register
Watch list
217 Assumptions log
Project Risk Management
Qualitative Risk analysis
Updated risk register
Risk Score
S Risk Category Objective +/- % Probability Impact Basis Priority
PXI
Watch list
Risk Score
S Risk Category Objective +/- % Probability Impact Basis Priority
PXI
1
218
2
Project Communication Management
Perform Quantitative Risk Analysis
Probabilistic analysis of
the project
Probability of achieving
cost & time objectives
219
Prioritized list of risks
Project Communication Management
Data gathering & representation techniques
220
Project Communication Management
Risk Modeling techniques
Sensitivity analysis
221
Tornado diagram
Project Communication Management
Risk Modeling techniques
222
Decision tree diagram
Project Risk Management
Risk Modeling techniques
223
Assumptions log
Mitigation
(Corrective action)
Enhance
Avoidance
Acceptance Share
(Prevention)
(Elimination)
(Accept consequences) (Partnership)
(Joint-venture)
Acceptance
Transference
(Shift Responsibility)
(Deflect / Allocate) Exploit
PXI (shift impact): Insurance, warranty
Work To be a fact PXI
225
Project Risk Management
Plan Risk Responses
Secondary risk: A new risk that is created by implementing the selected risk
response.
not effective.
Workaround: A response to a negative risk that has occurred but was not
identified.
226
Plan Risk Responses
Project Risk Management
Exercise: Strategies
Change requests:
228 Corrective actions: Contingency plans & workarounds
Preventive actions: Activities to ensure that future
performance is aligned with the plan.
Procurement Management
Buyer?
229 Seller?
Procurement Management
Plan Procurements
Determining what to buy (if any), when, and how
Buy or lease decision: Direct & indirect cost, life cycle cost.
Cost plus incentive fee (CPIF): Contract = Cost plus a fee of $100,000
in addition to ± 20% of Cost Savings/overruns.
236
Basis Types of Contracts
Procurement Management
237
Procurement Management
Conduct Procurements
238
Procurement Management
Conduct Procurements – Tools & Techniques
Negotiation Objectives:
Obtain a fair and reasonable price
Develop a good relationship with the seller / buyer
239
Procurement Management
Conduct Procurements – Tools & Techniques
Screening System:
Eliminating sellers that are not meeting minimum
requirements of source selection criteria
Weighting System:
Sellers A B C
Criteria Weight Rating Score Rating Score Rating Score
No. of years in Business 5% 7 0.35 5 0.25 5 0.25
Understanding of scope 20% 8 1.6 6 1.2 8 1.6
Performance in previous projects 20% 6 1.2 3 0.6 4 0.8
meeting scheduled time 10% 4 0.4 9 0.9 4 0.4
Project management ability 10% 6 0.6 6 0.6 7 0.7
Technical ability 25% 6 1.5 3 0.75 9 2.25
240 Life cycle Cost 10% 5 0.5 6 0.6 6 0.6
Total Score 100% 88% 70% 94%
Procurement Management
Control Procurements
241
Close Procurements
Procurement Management
243
Project Integration Management
244
Management
Integration
Develop project charter
Project Integration Management
245
SOW: Project, product, strategic objectives
Business case: Business need + Cost benefit analysis
Project Integration Management
Project Charter
Project Charter
246
Develop project Management plan
Project Integration Management
247
Develop project Management plan
Project Integration Management
248
Direct & Manage project work
Project Integration Management
PMIS:
249 Scheduling tool, Work authorization System, Information collection & distribution
system, Automated Reporting tool, Configuration management system (versions of
deliverables & Docs
Monitor & Control project work
Project Integration Management
250
Monitor & Control project work
Project Integration Management
251
Perform Integrated Change Control
Project Integration Management
252
Perform Integrated Change Control
Project Integration Management
2) Identify changes
254
Close Project or Phase
Project Integration Management
Release resources
Professional Responsibility
Professional &
Social
Responsibility
256
Professional Responsibility
Responsibility
257
Professional Responsibility
Respect
Maintain an attitude of mutual cooperation.
own benefit.
258
Professional Responsibility
Honesty
259
Professional Responsibility
260
Thank You