2010 PMP Slides Mar

Project Management Training
For PMP and CAPM Certification Training
Copyright 2012 CertSchool.com. All rights reserved. PMP, CAPM, PMBOK, PMI are Registered Marks of Project Management Institute, Inc.
2:18 PM
Course Outline
Examining Project Management Framework Initiating a Project Planning Project Work

Part 1: Baselines Part 2: Management Plans
Executing Project Work Monitoring and Controlling Project Work Closing the Project
2:18 PM
Meet the Instructor

Aditya Chinni,
MCA, PMP, SCPM, SCM, Prince2 Certified PM, Sigma
CEO, CertSchool, iTroop Consulting 18+ Years IT Program / Project Management 5 Years CSC, 8 years for Sun Micro Systems 5 Years at HCL India
Engineer, Architect, Developer Team Manager, Maintenance Manager Sr. Manager
Applications:
Sun Download Center Sun Store E-Commerce Utilities ERP Implementation Utilities Large Redistricting Project (Construction, Telecom, & IT)
2:18 PM
Team Introduction
Name, Education, # Years of experience What is your role How PMP can help you?
2:18 PM
About CertSchool
CertSchool is accredited by PMI as a Global Registered Education Provider As a part of Registered Education Providers qualification process CertSchool passed a rigorous review of content, material, design and delivery of education products by PMI CertSchool was founded in 2003 to train project managers to effectively manage projects CertSchools wide range of trainers include project managers, functional manager and general managers and industry experts from fortune 10 companies.
2:18 PM
About the exam: PMP Eligibility
Meet 3 requirements to appear for the exam Education PM Experience

7500 Hours of Project Management Practice
PM Education
High School
Minimum 5 Years of total experience 4500 Hours of Project Management Practice
35 Hours
Degree
Minimum 3 Years of total experience
35 Hours
2:18 PM
About the exam: CAPM Eligibility

Any one of the following 2 requirements
Education
PM Experience &
High School
1500 Hours of Project Management Practice
PM Education
OR
23 Hours
2:18 PM
PMP Application Cost
Yes
PMI Member? Fee: $139
No
MEMBER
Exam Fee: $405 ReExam Fee: $275
NON MEMBER Exam Fee: $555 ReExam Fee: $375
2:18 PM
CAPM Application Cost
Yes
PMI Member? Fee: $129
No
MEMBER
Exam Fee: $225 ReExam Fee: $150
NON MEMBER Exam Fee: $300 ReExam Fee: $200
2:18 PM
PMP Exam Format

200 Questions (Four Option, Multiple Choice), includes 25 pretest questions
That means 175 Questions for marking
CertSchool suggests that you should secure at least 70% (123/175) or more. 4 Hours Maximum Time Allowed - 1 m 12 Sec. per Q
Domain Initiation Planning Execution Monitoring and control Closing % of Questions 13% 24% 30% 25% 8% # of Questions 23 42 52 44 14 70% 16 29 36 31 10
Total
100%
175
123
2:18 PM
CAPM Exam Format
150 Questions (Four Option, Multiple Choice) includes 15 pretest questions 3 Hours Maximum Time Allowed
2:18 PM
CAPM Exam questions distribution

Knowledge Area 1 2 Introduction Project Lifecycle % of Questions 4% 4% # of questions 6 6
3
4 5 6
PMI Processes
Integration Management Scope Management Time Management
11%
11% 11% 11%
15
15 15 15
7
8 9 10
Cost Management
Quality Management HR Management Communications Management
9%
7% 7% 7%
12
9 9 9
11
12
Risk
Procurement
11%
7%
15
9 2:18 PM
PMP Study Plan
CertSchool PMP Prep Summary Schedule

Activities
Pre-Class reading notes Pre-Class Videos Attend Class Post Class Prep - Reading suggested book 2 times - Reading PMBOK Guide - Mock Exam Exam Application Preparing for Audit Scheduling for the Exam Exam Work Wk1 Wk2 Lecture Wk3 Wk4 Wk5 Wk6 Wk7 Wk8
20 Hrs 4 Hrs 27 Hrs 36 Hrs 12 Hrs 9 Hrs 1 Hrs 2 Hrs 1 Hrs 4 Hrs 116 Hrs
Total
2:18 PM
CAPM Study Plan

CertSchool PMP Prep Summary Schedule
Activities
CAPM Class Post Class Prep - Reading suggested book 2 times - Tests at the end of each chapter - Reading PMBOK Guide Exam Application Preparing for Audit Scheduling for the Exam Exam Work Lecture Wk1 Wk2 Wk3 Wk4 Wk5 Wk6
24 Hrs 30 Hrs 5 Hrs 12 Hrs 1 Hrs 1 Hrs 1 Hrs 3 Hrs 50 Hrs
Total
2:18 PM
Exam taking strategy

1. In round 1 skim through all 200 questions, answer easiest questions and filter out remaining questions in to 2 groups called Harder questions and Unknown questions 2. In round 2 spend some time and answer all hard questions. 3. In round 3 attempt Unknown questions and use little bit educated guess work Most importantly, track your progress by using a rough sheet provided by the testing center; see below example Round 1 (Easy Questions) Round 2
(Harder questions)
Round 3 (Impossible Questions)
1-10
11-20 191-200
2:18 PM
Question Formats
The exam uses a number of question formats. Some of the questions use multiple formats. Understanding of the formats helps you dissect the question and the available answers. Here are some formats: Select questions Chicken or the egg (sequence)
Select NOT/EXCEPT questions All (or a combination of) the answers

None of the answers
Question Format Select Description
Situational Calculation
Example A milestone has what duration?
This is likely the most straight-forward question format on the exam. It simply asks you to select the best answer. Be aware, however, because it can also include other question formats, including the Chicken or the Egg format questions.
A. 1 day B. 0 (no duration) (Correct) C. 1 hour D. 8 hours
2:18 PM
Question Formats (cont.)
Question Format
Select NOT/EXCEPT
Description
For this the type of question, you must select the answer that does not apply. Generally, this question type is not a big deal unless you have already hit "the wall" that we discussed in the exam environment part of this book. The key to handling this type of question is to determine which three answer selections have something in common. The fourth answer selection is the exception and the answer to choose.
Example
All the following are areas of communication management except A. Manage Stakeholders Expectations B. Report Performance C. Quantitative Analysis (Correct) D. Distribute Information
All (or a Combination of the Answers)
With this question format, all -- or a combination -- of the answers are acceptable. The main thing to consider is that there isn't a bad choice. The odds are that if two of the answers (other than All the answers") look good, so will the third.
Which of the following are areas of risk management? A. Identify Risk B. Perform Quantitative Risk Analysis C. Plan Risk Responses D. All the answers (Correct)
2:18 PM
Question Format
None of the Answers
Description
With this format, every available answer (other than "none of the above") fails to apply to the question. You must evaluate each answer to determine its relevant Knowledge Area. If the relevant Knowledge Area for each answer lies outside the scope of the question, then none of the answers applies.
Example
What Knowledge Area is part of the triple constraint? A. Communications B. Procurement C. Professional and Social Responsibility D. None of the answers (Correct)
Chicken or the Egg
With this format, more than one answer is acceptable. The key is to understand their order -- what comes first (last, before, or after something depending on what the question is asking). In this case, look at what the question is asking and determine the best answer based on the timeline of the answers.
What comes before Estimate Activity Durations?

A. Sequence Activities B. Estimate Activity Costs C. Define Activities (Correct) D. Project Plan Development
2:18 PM
Question Format
Situational
Description
This question format is probably the most challenging, and the exam will include at least 75 questions using this format, some in combination with other formats. This question format expects you to leverage your PM experience and understanding of the PMBOK Guide and the PMI way of thinking.
Example
You've taken over an existing project and discover that it has suffered major scope creep because the former Project Manager couldn't say no to the sponsor, and it lacked enough supporting documentation. What document do you first want to see (or create if it doesn't exist) about the project foundation? A. Risk List B. Project Charter (Correct) C. Communications Plan D. Budget
Typically, you will see a Chicken or the Egg (what comes first) -- with whom do you communicate regarding a project, or what is your next action on the project. Keys to success in this area are to understand the chart in the Framework area of this book, plus the key role players in the methodology.
2:18 PM
Question Format
Calculation
Description
This question format typically falls under the Select or the None of the Above (sometimes "not enough information") formats. If you know the formulas for the exam, you shouldn't have a problem with calculation questions. In some, you could encounter possible answers that "add up" correctly if you don't know the formula, but attempt to reverse-engineer the question. An example: you are to calculate CPI (divide EV by AC). You have incorrect answers that total other calculations as well (SV, SPI, CV, or others). It is not uncommon for the exam to have questions that do not give you enough data, such as future value or present value. Therefore, it is important that you know all the components of a formula.
Example
What is the CPI for the following data? AC=$200, PV=$400, EV=$200, BAC=$1,000 A. $200 B. -$200 C. 1.0 (Correct) D. 0.5
2:18 PM
Project Management Body of Knowledge, (PMBOK Guide) Fourth Edition
3 parts
Part1: Introduction Framework (2 Chapters) Part2: Process Groups (1 Chapter) Part3: Knowledge Areas (9 chapters starting from 4)
Processes - 42
Initiation - 2 Planning - 20 Execution - 8 Monitoring and Control - 10 Closing - 2
PMBOK Guide was adopted by ANSI (1999) as an American Standard for Project Management. The Fourth Edition was issued in 2008.
2:18 PM
Process (Inputs, Tools and Techniques, and Outputs)

Process describes the action of taking something through a set of procedures or steps to achieve a pre-specified product, result, or service. Process produces
An output Using Tools and Techniques Taking some inputs
42 project management processes are defined in PMBOK Guide 4th edition.
2:18 PM
Process Groups: Phases vs. Process Groups
Its not uncommon to confuse the Initiating, Planning, Executing, Monitoring and Controlling and Closing Process Groups of a project with project phases.
A project phase is a piece of a multi-phase project and
All five process groups are often applied to each project phase.
2:18 PM
How to manage Project & Phases

Process Groups and processes are used in conjunction with the project phases as shown in this picture
Project Lifecycle:
Divided in to phases
PMI Process Groups are applied to each phase of the project
Project Management Body of Knowledge (PMBOK )Guide Fourth Edition Page 6
2:18 PM
Phase-to-Phase Relationships
Sequential: For instance, phase two starts after the completion of phase one Overlapping: For instance, phase two can begin while phase one is still in process Iterative: This approach is typically used in an environment characterized by a constantly evolving environment or uncertainty, such as research
P1
P2
Overlapping
P3
P1 P2
P3
P3
2:18 PM
Phase Gate
A review process undertaken to determine if a project is likely to succeed. At the end of a program or project phase, an authorized group reviews the work of the phase and either approves to continue the project or makes the decision to stop future work on the initiative Projects that are not likely to succeed are killed early Can also be called kill point
2:18 PM
4 Life Cycles
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
PMI Process groups Used to manage each phase

PMIs definition of the project management is based 42 processes grouped into 5 Process Groups and 9 knowledge areas Copyright 2012 CertSchool.com. All rights reserved. PMP, CAPM, PMBOK, PMI are Registered Marks of Project Management Institute, Inc.
Project Management Body of Knowledge (PMBOK ) Guide Fourth Edition Page 6
2:18 PM
Reading Exercise
Process Group Definitions
Initiation Planning Execution Monitoring and Control Closing
Refer PMBOK Guide Page: 39
2:18 PM
Process Groups
List purposes and major activities of each of 5 process groups?
Process Group Your learning
Initiation
Planning Execution Monitoring and Control Closing
2:18 PM
Reading Exercise
Nine Knowledge Areas
Integration
Scope Time Cost Quality Human Resource Communications Risk Procurement
Refer PMBOK Guide Page: 411 - 415
2:18 PM
Knowledge Areas
Objectives you will achieve, in each one of the below Knowledge Areas:
K.A. Integration Scope
Your learning Communications
Risk Time Cost Quality HR

Procurement
2:18 PM
Reading Exercise
Process Chart
42 project management processes are mapped in to a 2 dimensional chart with 5 Process groups as columns and 9 knowledge areas as rows. Mastering process chart is key towards the exam
2:18 PM
Arrange below 42 Processes in the Process Chart template:

4.1 Develop Project Charter 4.2 Develop Project Management Plan 4.3 Direct & Manage Project Execution 4.4 Monitor & Control Project Work 4.5 Perform Integrated Change Control 4.6 Close Project or Phase 5.1 Collect Requirements 5.2 Define Scope 5.3 Create Work Breakdown Structure (WBS) 5.4 Verify Scope 5.5 Control Scope 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 6.6 Control Schedule 7.1 Estimate Costs 7.2 Determine Budget 7.3 Control Costs 8.1 Plan Quality 8.2 Perform Quality Assurance 8.3 Perform Quality Control 9.1 Develop Human Resources Plan 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team 10.1 Identify Stakeholders 10.2 Plan Communications 10.3 Distribute Information 10.4 Manage Stakeholder Expectations 10.5 Report Performance 11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses 11.6 Monitor and Control Risks 12.1 Plan Procurements 12.2 Conduct Procurements 12.3 Administer Procurements 12.4 Close Procurements
2:18 PM
Project Framework
Understand Project, Programs, Portfolios, PMOs, and Organizational Structures
2:18 PM
Project Definition
A project is an initiative that has the following characteristics:
Has a specific purpose Creates specific results Has definite start and finish dates
Could be progressively elaborated as more is learned about the project details A project could occur as a result of a business opportunity or market need, which could have a limited time window
Copyright 2012 CertSchool.com. All rights reserved. Reference Project Management Body of Knowledge (PMBOK ) Guide Fourth Edition Page: PMP, CAPM, PMBOK, PMI are Registered Marks of Project Management Institute, Inc.
2:18 PM 5
Project Mgmt. vs. Operations Mgmt.
An ongoing work effort is generally a repetitive process because it follows an organizations existing procedures
Project management deals with the creation of temporary specific initiatives.

Operations management deals with the ongoing repetitive day-to-day activities of running the business.
2:18 PM
Project Management
Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Project management is accomplished through the appropriate application and integration of the 42 logically grouped project management processes comprising the 5 Process Groups
Managing projects typically involves managing all constraints
2:18 PM 6
Delivery aligned to Organization
Mission
Portfolio
Strategy
Program
Projects
Project
- Organizations are build with a mission. They develop several strategies to achieve those mission. Several Projects are initiated to achieve each strategy - To deliver those projects a project management organization should be developed. The delivery organizations should be governed by Portfolio and Program Management Principles.
2:18 PM
Program and Program Management
A program encompasses:
Projects of similar work (or) Correlated activities managed in a coordinated way to attain benefits that could not be achieved separately.
This could also involve the program interacting with operations as a result of the integration of a program (and its project) into operations.
2:18 PM
Portfolio and Portfolio Management
Portfolio management involves a group of projects (and/or) programs that have some degree of interactivity related to an overall strategic business goal. The interactivity could be related to funding, performing organization, or type of project.
2:18 PM
Project, Program, Portfolio Interaction Figure

The figure below demonstrates how projects, programs, and portfolios interrelate with the strategic planning of a company.
Project A1 Program A Project A2 Project B1 Program B Portfolio Sub Program Project B2 Project C
Sub Portfolio and its hierarchy
Large Project
2:18 PM
Project Management Office

It is a management organization with several possible configurations:
A centralized area for all project management personnel to work and be assigned to projects as they arise A centralized area for documentation and process support for project management throughout the organization A centralized area for project management support and auditing of projects in the organization
For a PMO to be successful, project goals must be clearly defined and backed by strong executive support.
2:18 PM
Project Stakeholders
Person or organization who has a business interest in the outcome of a project or who is actively involved in its work. Stakeholders are 2 categories, Positive stakeholders and Negative stakeholders
Stakeholders whose interests are positively impacted by the project and those who influence projects positively are positive stakeholders Stakeholders whose interests are negative impacted by the project and those who influence projects negatively are negative stakeholders
Example: The New York Yankees proposed $800 million Bronx stadium, 2006. Stakeholders include:
Staff, management, and owners of the New York Yankees Major League Baseball Chambers of commerce, Local and statewide elected officials Engineers, architects, and construction workers Fans, Local residents
2:18 PM
General Characteristics of a Project Life Cycle Projects differ and display certain common characteristics.
At the beginning, cost and staffing levels are low. Reaches the peak once during work execution Drops rapidly upon project completion.
Stakeholder influences, uncertainties, and risks are:

High at project start. Low at project end.
Costs of a change are:

Low at project start. High at project end.
Impact of Variable Based on Project Time image from Project Management Body of Knowledge (PMBOK ) Guide Fourth Edition Page 17
2:18 PM
Progressive Elaboration
Successive layers of detail are added to the plans. Deliverables from one phase are approved before work begins on the next phase. A phase may begin before approving the deliverables of a previous phase if risks are acceptable. Provides greater level of detail as the project progresses.
Detail is added to plans in progressive elaboration

2:18 PM
Organizational Process Assets

Organizational Process Assets can be inputs to many processes. These inputs could include any or all process related assets. These can be categorized as
Processes and Procedures Corporate Knowledge Base
Examples: process definitions templates issue management change control processes risk management work authorization
organization communication needs

criteria to complete (close) projects
financial infrastructure
2:18 PM
Organizational Process Assets (cont.)
A corporate knowledge base adds the following information to organizational process assets:
Process data Project files and records Lessons learned Historical information Configuration management data Databases Financial data
2:18 PM
Enterprise Environmental Factors
Enterprise environmental factors can be inputs to most of the processes. They can be internal or external variables to the project such as information systems and company policies and procedures. These factors potentially influence the success Examples are organizational structure and culture, business infrastructure systems, government standards, personnel policies, the business market, stakeholder tolerance for risk, and PMIS (Project Management Information Systems).
2:18 PM
The PMI Code of Ethics and Professional Conduct

PMI expects all Project Management Practitioners to adhere to 4 values and do only RIGHT and HONARABLE things PMI expects all Project Management Practitioners to set high standards in all aspects of their livesat work, at home, and in service to the profession PMI believes that Practitioners adhering to conduct become better Project Management professionals PMIs 4 core Values to be considered are:
Responsibility Respect Fairness Honesty
Based on PMI Code of Ethics and Professional Conduct At: http://www.pmi.org/en/About-Us/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx
2:18 PM
1. Responsibility
Responsibility is Practitioners duty to take ownership for the decisions they make or fail to make, the actions they take or fail to take, and the consequences that result Standards considered are: Practitioners should make decisions in the best interests of society, public safety, and the environment Practitioners accepts only those assignments that are consistent with their background, experience, skills, and qualifications Practitioners fulfill the commitments that they undertake Practitioners will do exactly as what they say that they will do When errors or omissions are made, Practitioners will take ownership and make corrections promptly Practitioners protect proprietary or confidential information Practitioners report unethical or illegal conduct to appropriate management http://www.pmi.org/en/AboutUs/Ethics/~/media/PDF/Ethics/ap_pmicodeofethics.ashx 2:18 PM
2. Respect
It is Practitioners duty to show high regard to themselves and resources entrusted to them. Resources may include people, money, reputation, the safety of others, and natural or environmental resources. Standards Include
Practitioners listen to others points of view, seeking to understand them Practitioners approach directly those persons with whom they have a conflict or disagreement Practitioners conduct their normal business in a professional manner, even when it is not reciprocated
Practitioners avoid themselves engaging in gossip and avoid making negative remarks to undermine another persons reputation
Practitioner negotiate in a good faith and do not exercise the power of their expertise or position to influence the decisions or actions of others in order to benefit them personally at others expense
2:18 PM
3. Fairness
Fairness is Practitioners duty to make decisions and act impartially and objectively. Their conduct must be free from competing self interest, prejudice, and favoritism Standards include:
Practitioners demonstrate transparency in their decision-making process Practitioners provide equal access to information to those who are authorized to have that information Practitioners proactively and fully disclose any real or potential conflicts of interest to the appropriate stakeholders Practitioners refrain from decision making process when there is a real conflict of interest until they made full disclosure of the conflict of interest Practitioners do not hire or fire, reward or punish, or award or deny contracts based on personal considerations, including but not limited to, favoritism, nepotism, or bribery Practitioners do not discriminate against others based on, but not limited to, gender, race, age, religion, disability, nationality, or sexual orientation
2:18 PM
4. Honesty
Honesty is Practitioners duty to understand the truth and act in a truthful manner both in their communications and in their conduct Standards Include:
Practitioners should be truthful in their communications and in their conduct Practitioners should provide accurate information in a timely manner Practitioners make commitments and promises, implied or explicit, in good faith Practitioners strive to create an environment in which others feel safe to tell the truth Practitioners do not engage in or condone behavior that is designed to deceive others Practitioners do not engage in dishonest behavior with the intention of personal gain or at the expense of another
2:18 PM
Interpersonal Skills
Ability to work harmoniously and efficiently. Interpersonal skills include:

Leadership. Team building. Motivation. Communication. Influencing. Decision making. Political and cultural awareness. Negotiation.
Appendix G from Project Management Body of Knowledge (PMBOK ) Guide Fourth Edition 417 - 421
2:18 PM
Leadership Skills
According to the idea an effective leader is a person who does the following:
Creates an inspiring vision of the future. Motivates and inspires people to engage with that vision. Manages delivery of the vision. Coaches and builds a team, so that it is more effective at achieving the vision.
Leadership brings together the skills needed to do these things.
Leadership capabilities are critical at the beginning of a project or phase. Motivate and inspire team members for higher project performance.
2:18 PM
Team Building Skills

Team building refers to a wide range of activities to improving team performance. Team building is pursued via a variety of practices, and can range from simple bonding exercises to complex simulations and multi-day team building retreats designed to develop a team (including group assessment and games) Team building activities consist of
Tasks
establish goals define, and negotiate roles and procedures
And Processes
interpersonal behavior with emphasis on communication conflict management motivation leadership
Team Building is an Ongoing process to work collaboratively
2:18 PM
Motivation Skills
When people are not motivated, it's unlikely that they'll achieve their true potential. On the other hand, when people are motivated, work seems easy. Motivated people have a positive outlook, they're excited about what they're doing, and they know that they're investing their time in something that's truly worthwhile In short, motivated people enjoy their jobs and perform well Project Managers goal is to keep the team feeling motivated and inspired Although there are literally hundreds of tactics that can motivate the team, it's important to realize that there are only two main types of motivation - extrinsic and intrinsic.
Extrinsic motivation is when you use external factors to encourage your team to do what you want. Pay raises, time off, bonus checks, and, on the negative side, the threat of job loss, are all examples of extrinsic motivators. Intrinsic motivation is internal. It's about having a personal desire to overcome a challenge, produce high quality work, or be on a team with people you like and trust. People who are intrinsically motivated by their work get a great deal of satisfaction and enjoyment from what they're doing.
2:18 PM
Communication Skills
Effective communication within the project team and between the project manager, team members, and all external stakeholders is essential. Openness in communication is a gateway to teamwork and high performance. It improves relationships among project team members and creates mutual trust Ensure everyone is kept informed, knows exactly what to do, and has all of the information to do their jobs Project managers should identify various communication channels, understand what information they need to provide, what information they need to receive, and which interpersonal skills will help them communicate effectively with various project stakeholders Effective communication is the ability to:
Motivate. Delegate. Organize. Solve problems. Obtain information.
Use effective listening techniques to:

Manage conflicts. Take appropriate decisions. Provide suitable solutions.
2:18 PM
Influencing Skills
Influencing is a strategy of sharing power and relying on interpersonal skills to get others to cooperate towards common goals. Using the following guidelines can influence team members:
Lead by example, and follow through with commitments Clarify how a decision will be made Use a flexible interpersonal style, adjust the style to the audience Apply your power skillfully and cautiously. Think of long-term collaboration
Influential managers use persuasion instead of coercion.

Influence is based on: Credibility. Trust. Support. Collaboration.
Managers influence by demonstrating:

Good listening and responding skills. Good sense of humor. Ability to express oneself. Being sociable and optimistic. An obvious enthusiasm for their work.
2:18 PM
Decision Making Skills
Decisions are the result of collaboration and negotiation. There are four basic decision styles normally used by project managers:
Command Consultation Consensus Coin flip (random).
There are four major factors that affect the decision style: time constraints, trust, quality, and acceptance.
2:18 PM
Six Phases of Decision Making
Phase Problem Definition
Involves Exploring and clarifying the problem or situation.
Problem Solution Generation
Brainstorming ideas, solutions, or alternatives for the problem. Define evaluation criteria, rate pros and cons of alternatives, select best solution. Involve key participants to gain acceptance and commitment to making the solution work. Post-implementation analysis, evaluation, and lessons learned. Evaluating how well the problem was solved and project goals achieved. (Extension of previous phase)
Ideas to Action
Solution Action Planning Solution Evaluation Planning Evaluation of the Outcome and Process
2:18 PM
Negotiation Skills
Negotiation is a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two people/parties involved in negotiation process Approaches to negotiation
Win-Win Negotiation or Finding a fair compromise Distributive Negotiation the term distributive means, there is a giving out. By its mere nature, there is a limit in the thing being distributed or divided amongst the people involved. Integrative negotiation The word integrative means to join several parts into a whole. Conceptually, this implies some cooperation, or a joining of forces to achieve something together. The advocate's approach In the advocacy approach, a skilled negotiator usually serves as advocate for one party to the negotiation and attempts to obtain the most favorable outcomes possible for that party.
Bad faith negotiation: is a concept in negotiation theory whereby parties pretend to reason to reach settlement, but have no intention to do so, for example, one political party may pretend to negotiate, with no intention to compromise, for political effect.
2:18 PM
Organizational Structure
Matrix Functional Weak Balanced Strong Projectized
2:18 PM
Functional Organization
A FO is a hierarchy where each employee has one clear superior. Staff members are grouped by specialty, such as production, marketing, engineering at the top level. Specialties may be further subdivided into functional organizations, such as mechanical and electrical engineering. Each department in a functional organization will do its project work independent of other departments.
2:18 PM
Matrix Organization
Matrix organizations are a blend of functional and projectized characteristics.
Weak matrices maintain many of the characteristics of a functional organization, and the project manager role is more of a coordinator or expediter than that of a true project manager. Strong matrices have many of the characteristics of the projectized organization, and can have full-time project managers with considerable authority and full-time project administrative staff. While the balanced matrix organization recognizes the need for a project manager, it does not provide the project manager with the full authority over the project and project funding.
2:18 PM
Projectized Organization
In a projectized organization, team members are often co-located, most of the organizations resources are involved in project work, and project managers have a great deal of independence and authority. Projectized organizations often have organizational units called departments, but these groups either report directly to the project manager or provide support services to the various projects.
2:18 PM
Functional Organization
Other organizational Hierarchy
Functional Manager Maintenance Other work Staff 50%
30%
Elaborated Functional manager organization. - Blue color: Other work in the department - Green Color Project work - Staff can be part time on the Project - Project Management and Coordination is done by Functional manager
2:18 PM
Weak Matrix Organization
Functional Manager Maintenance Other work Staff 50%
30%
Elaborated Functional manager organization. - Blue color: Other work in the department - Green Color Project work - Staff can be part time on the Project - Functional manager manages the project - Project coordination is done by the staff
Coordinator
2:18 PM
Balanced Matrix Organization
Functional Manager Maintenance Other work Staff Project Manager
50%
Project Manager Coordinator
Elaborated Functional manager organization. - Blue color: Other work in the department - Green Color Project work - Functional manager shares the management authorities with PM - One of the staff of Functional Manager manages the project and shares authority with functional manager - Project coordination is done by the staff
2:18 PM
Strong Matrix Organization
Functional Manager Maintenance Other work Staff
Manager of PMs
Project Manager Coordinator
Elaborated Functional manager organization. - Blue color: Other work in the department - Green Color Project work - Staff mostly full time on the Project - Functional manager involvement in the project is very minimal. - Project manager manages the project and will have greater independence over the project - Project coordination is done by the staff - Project staff now start reporting to PM and dotted line to FM
2:18 PM
Projectized Organization
Project Director Project A Project B Project C
Other functional organization
Elaborated Functional manager organization. - Blue color: Other work in the department - Green Color Project work - Most of the organization is Project organizations - Project manager manages the project
Coordinator
2:18 PM
Initiation Objectives
Project Assessment and Feasibility Study Define High-Level Scope Identify Project Stakeholders, Perform key stakeholder analysis Develop Project Charter Identify and document high-level risks, assumptions, and constraints Obtain Sponsor and/or Client Approvals
2:18 PM
Perform project assessment

Meet with the Sponsor, Customer, and Other Subject matter experts to evaluate project feasibility Assessing project teams capabilities to perform the project Most commonly feasibility will be performed in following areas:
Finances Operations Technology Politics Legalities Resources Time Geography
This feasibility study is different from Project Selection feasibility study. Here Project Manager evaluated Possibilities to complete the project
2:18 PM
Questions need to be evaluated

Do we have enough money to execute the project properly? Will this project have a negative impact on a companys image and revenue? What are the ongoing support requirements? Does this project fit in the way this company does the work? How many departments are involved in this project? Does this project conflict with other projects already in the works? Does this project technical requirements meet the current capabilities? Does this project conflicts with either corporate or governmental politics? Whose toes will this project step on? Are there enough human, material resources available for this project? Is there enough time to deliver the project? Are project stakeholders are geographically dispersed?
2:18 PM
Project Selection
Project Selection Criteria: The act of choosing a project from among competing proposals. Project Selection Methods: Any systematic approach used to analyze the value of a proposed project in order to choose among competing proposals. Decision Models: 2 major categories
Description
Analyze the predicted value of the completed projects in different ways. May present the value in terms of: Weighted Scoring Models BCR Benefits Cost Ratio Payback Period NPV Net Present Value & IRR Internal Rate of Return ROI (Return on Investment) EVA (Economic Value Add) Use different types of mathematical formulas and algorithms to determine the optimal course of action. Models in this section are Linear Programming Nonlinear Programming Dynamic Programming Integer Programming Multi objective programming
System
Benefit Measurement (Economical Models)
Constrained Optimization (Mathematical Models)
Aspirants will not be tested in details of these models. Copyright 2012 CertSchool.com. All rights reserved. PMP, CAPM, PMBOK, PMI are Registered Marks of Project Management Institute, Inc.
2:18 PM
High-Level Scope
Project sponsors, Customers identify Project high level scope and provide to Project Management team. Which will be included in Project Charter
High Level scope statements help establish the boundaries of the project High-level scope can be derived from defined Project Objectives High-level scope also includes List of Deliverables High-level scope also identifies out-of-scope conditions by describing what deliverables will not be created It is a good practice to provide a list of organizations those are in scope and organizations those are out of scope
Based on high level project scope, Project team develops detailed Scope statement in Planning phase of the project. Gradual detailing of the scope is called Progressive Elaboration During Progressive elaboration, high level scope will be explained in detail but new items will not be added and no changes are made
2:18 PM
High-Level Risk
Project sponsors, Customers must provide External Project Risks, Constraints. According to PMI, Risks are documented and managed in a document called Risk Register. Risk Register will be initiated in early stages of the project and updated, maintained throughout the Project lifecycle.
High Level Risk Identification help establish implementation approach By looking in to historical data, and previous experiences to identify High level Risks High Level Risk Identification also helps to understand current environment
Project team will conduct detailed Risk Identification process to add every risk to the Risk Register. Later Project team will perform Qualitative and Quantitative analysis to filter risks and provide Risk Response strategies By identifying High Level Risks and Response strategies during the early phases of project, allows project team to take GO/ NO GO decisions
2:18 PM
ITTO Reading Exercise Elements of

4.1 Develop Project Charter
I, TT, O
Contract Project Statement of Work Business Case EEF, OPA Expert Judgment Project Charter
I I I I TT O
2:18 PM
Business Case Development

A project business case is a project justification document that outlines a project proposal and plan for authorized funding, resources, and implementation. The objective of a project business case is to justify:
What benefit and cost the project brings to the business Why the project is important and should be funded Where the project needs to be implemented When the project can be implemented Who is required to implement the project How the project can be implemented with success
2:18 PM
Business Case process lifecycle

Business Managers, Sponsors Clients, Sponsors, Senior Management
Requirement or idea
Initiate Process
Develop Business Case

Sponsors, Project Team
Sponsors, Project Team, Steering team
Sponsors, Project Team, Steering team
Propose alternatives
Select Alternative / Approval
Implement Project Use PMIs 42 Processes
Transition to support
Support Managers, Project Team
2:18 PM
Project Statements of Work (SOW)

The statement of work (SOW) is a narrative description of products or services to be delivered by the project.
For internal projects, the project initiator or sponsor provides the SOW For external projects, the SOW can be received from the customer as part of a bid document
The SOW references:

1. 2. 3. Business need: An organizations business need may be based on a market demand, technological advance, legal requirement, or government regulation Product scope description: This documents the characteristics of the product that the project will be undertaken to create Strategic plan: The strategic plan documents the organizations strategic goals. Therefore, all projects should be aligned with the strategic plan
2:18 PM
Salient features of CHARTER

Project Charter is a document that formally authorizes and initiates a project or a phase Project Charter documents initial requirements that satisfy the stakeholders needs and expectations. A project manager is identified and assigned while the project charter is being developed Project Charter provides the project manager with the authority to apply resources to project activities. Projects are authorized by someone external to the project such as a sponsor, PMO, or portfolio steering committee. The project initiator or sponsor should be at a level that is appropriate to funding the project. Project Sponsor will either create the project charter or delegate that duty to the project manager. The initiators signature on the charter authorizes the project. Project Charter links the project to the strategy and ongoing work of the organization
2:18 PM
Project Charter Document

Project Charter document highlights all high level aspects of the project and provides the justification to undertake this project. Most of these details are collected from SOW and interviewing sponsor. The document should have following sections:
Project purpose and justification Measurable project objectives High level requirements High level project description High level risks
Summary Mile Stone Schedule Summary Budget Approval Requirements Project Manager Signing Authority 2:18 PM

10.1 Identify Stakeholders
I, TT, O
Project Charter Procurement Documents EEF, OPA Stakeholder Analysis Stakeholder Register Stakeholder Management Strategy
2:18 PM
Salient features of Stakeholders

Stakeholders are persons or organizations who are actively involved in the project or whose interests may be positively or negatively affected by the project Following are some examples of stakeholders and their relations to the project
PMO
Portfolio Manager
Program Manager
Operations Management Functional Managers
Sellers / Business Partners
Customers / Users
Project
Sponsor
Project Management Team
Project Manager Team Members
2:18 PM 24
Stakeholder Analysis
Stakeholder analysis is a technique of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project. Stakeholder analysis generally follows the steps described below..
1. Identify Stakeholders 2. Classify Stakeholders using one of below models
Power/interest Power/influence Influence / Impact Others .
2:18 PM 249
3. Analyze and strategize various situations

Stakeholder Register & Management Strategy
A document that identifies stakeholders of a project with information that includes their identification, assessment, and stakeholder classification.
Assessment of Impact
Potential strategy to gain support
By adding above ROWS to the stakeholder Register, Stakeholder Analysis Matrix is generated
The stakeholder management strategy defines an approach to increase the support and minimize negative impacts of stakeholders throughout the entire project life cycle. Stakeholder
management strategy is represented by a stakeholder analysis matrix.

2:18 PM 250
Planning Objectives
Assess detailed project requirements, constraints, and assumptions with stakeholders based on the project charter, lessons learned from previous projects, and the use of requirement-gathering techniques Create the work breakdown structure with the team by deconstructing the scope Develop a budget plan based on the project scope using estimating techniques Develop a project schedule based on the project timeline, scope, and resource plan Develop a human resource management plan by defining the roles and responsibilities Develop a communication plan Develop a procurement plan Develop a quality management plan Develop a change management plan Develop a risk management plan Present the project plan to the key stakeholders Conduct a kick-off meeting with all stakeholders
2:18 PM
Planning Project Work
Identify the Elements of a Project Management Plan Develop Project Management Plan Develop 3 Baselines (Planning Part 1) Develop Subsidiary Management Plans (Planning Part 2)
2:18 PM
Project Management Plan Components
Key Components of a Project Management Plan
Subsidiary Management Plans (MP)

Requirements MP Scope MP, Schedule MP, Cost MP Quality MP, Process Improvement Plan HR MP, Staffing MP Communications MP Risk MP
Baselines
Scope Baseline
(Scope Statement, WBS, WBSD)
Schedule Baseline Cost Baseline Combination of above 3 baselines is called Performance Measurement Baseline
Procurement MP
Configuration MP, Change MP
In Planning Part 2 above management plans will be completed.

In Planning Part 1 above Baselines will be completed.
2:18 PM

5.1 Collect Requirements

I, TT, O
Project Charter Stakeholder Register Interviews Focus Groups Facilitated Workshops Group Creativity Techniques Group Decision Making Techniques Questionnaires and Surveys Observations Prototypes Requirements Documentation Requirements Management Plan Requirements Traceability Matrix
2:18 PM
Requirements gathering tools

Interviews: is a conversation between two people (the interviewer and the interviewee) where questions are asked by the interviewer to obtain information from the interviewee. Project team can collect better requirements with structured question paper Focus groups: A focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, and attitudes towards a product, or service. Questionnaires and survey: is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents Observations: provide a direct way of viewing individuals in their environment and how they perform their jobs or tasks and carry out processes. Observation, also called job shadowing Prototypes: is an early sample or model built to test a concept or process or to act as a thing to be replicated or learned from Non working screenshots are called mockups or wireframes.
2:18 PM
Facilitated Workshops
Requirements gathering workshops with cross functional teams. Below are 2 classic examples of these workshops:
Quality function deployment (QFD) is a method to transform user demands into design quality, to deploy the functions forming quality, and ultimately to specific elements of the manufacturing process. as described by Dr. Yoji Akao, who originally developed QFD JAD is a process used in the prototyping life cycle to collect business requirements while developing new information systems for a company.
2:18 PM
Group Creativity Techniques

Group activities organized within organizations to identify project or product requirements for a project.
Group Creativity Technique
Brainstorming
Description
is a group creativity technique by which a group tries to find a solution for a specific problem by gathering a list of ideas NGT is a decision making method to make decisions quickly, as by a vote, but want everyone's opinions taken into account the experts answer questionnaires in two or more rounds. After each round, a facilitator provides an anonymous summary of the experts forecasts from the previous round as well as the reasons they provided for their judgments. Thus, experts are encouraged to revise their earlier answers in light of the replies of other members of their panel
Nominal group technique
The Delphi technique
2:18 PM
Diagramming Techniques
Diagramming Technique (Group Creativity Technique) Idea or mind mapping Description
Ideas created through brainstorming are consolidated into a map that reflects the commonality, differences in understanding, and generation of new ideas.
Enables the sorting of a large number of ideas collected during brainstorming into distinct categories for review and analysis.
Affinity diagram
2:18 PM
Group Decision Making Techniques
Method
Unanimity
Description
Everyone in the group agrees on a single course of action.
Majority
Requires support from more than 50% of the members of the group to indicate the selected decision.
The largest batch in the group decides for the group even if a majority is not achieved.
Plurality
Dictatorship One individual makes the decision for an entire group.
2:18 PM
Requirements Documentation
Collected requirements are presented as Requirements documentation. Which will be to verify the product at the end of phase or project. The requirements documented must be unambiguous, and acceptable to key stakeholders Components of requirements documentation:
Business Need Project objectives Functional and non-functional requirements Quality requirements Acceptance criteria Support and training needs Assumptions and Constraints.
2:18 PM 110
Requirements Management Plans

The requirements management plan helps the Project Manager and team analyze, document, and manage the project requirements. The plan may include:
Direction for planning, tracking, and reporting requirement activities Direction for configuration management activities notably how to initiate changes to the product, service, or result, how to analyze the impact of the changes, and change approval authorization Direction for prioritizing requirements Direction for determining product metrics and usage rational Direction for the traceability matrix, specifically the requirement attributes to be included in the matrix and the other project document to which the requirements will be traced
2:18 PM
The Requirements Traceability Matrix

A tabular document that links the project or product requirements to their origin and traces them throughout the project life cycle. Links each requirement to the:
Business and project objectives. WBS. Product design and development. Test scenarios.
2:18 PM

5.2 Define Scope

I, TT, O
Project Charter Project Scope Statement Project Document Updates Requirements Documentation OPA Product Analysis Alternatives Identification Facilitated workshop Expert Judgment
2:18 PM
Product Analysis Techniques

Each technique is an evaluation of the project's end product and what it will take to create this product.
Technique Description Analyzing all of the things that a product does, including primary and related functions to identify unnecessary functions that might drive up cost on a product. Identifying and developing the cost versus benefits ratio for each function of a product. Identifying what the customer's needs are, and translating those needs into technical requirements. Analyzing products holistically, integrating factors such as users, usage environment, and related hardware or software with which the product must function.
Functional analysis Value engineering and value analysis Quality function deployment Systems engineering
2:18 PM
the Scope Statement

The project scope statement describes, in detail, the projects deliverables and the work required to create those deliverables. The project scope statement also provides a common understanding of the project scope among project stakeholders
o o o o o o o o o Project objectives Product description Project requirements Project deliverables Project boundaries Project Out of Scope items Product acceptance criteria Project constraints Project assumptions
2:18 PM

5.3 Create WBS
I, TT, O
Project Scope Statement Requirements Documentation Decomposition Work Breakdown Structure WBS Dictionary Scope Baseline
2:18 PM
How to Develop a Work Breakdown Structure

To develop a WBS: 1. Gather reference materials and other inputs. 2. Determine how you will organize project work. 3. Identify major deliverables. 4. Analyze each element to determine whether it is sufficiently decomposed. 5. Break down each WBS element to the work package level. 6. Validate your WBS using a bottom-up approach. 7. Use your code of accounts to assign a cost code to each element
2:18 PM
Work Package
Planned work or deliverables. Lowest-level component of the work breakdown structure. Where Cost and schedule can be easily estimated.
Maps to project scope statement
Subdivides project work into smaller pieces
Last item in the hierarchy is called Work Package
A work breakdown structure showing the work packages

2:18 PM
WBS Styles
Deliverables Based Functional Groups Geographical Time Phased Mixed
2:18 PM
WBS Dictionary and RAM
WBS Dictionary
Brief Statement of work and Technical Specifications Responsible parties Contractual information and milestones Quality Requirements Charge codes or other costing information Associated Activities or Tasks Res1 Res2 Res3
WP1 WP2 WP3 X X X
Responsibility Assignment Matrix

The WBS is the foundation for the RAM
2:18 PM
Scope Baseline
The scope baseline is a component of the project management plan. Components of the scope baseline include:
Project scope statement. The project scope statement includes the product scope description, and the project deliverables, and defines the product user acceptance criteria. WBS. The WBS defines each deliverable and the decomposition of the deliverables into work packages. WBS dictionary. The WBS dictionary has a detailed description of work and technical documentation for each WBS element.
2:18 PM
Developing Project Schedules
Create an Activity List Create a Project Schedule Network Diagram Estimate Activity Resources Estimate Duration for Project Activities Develop a Project Schedule Identify the Critical Path Optimize the Project Schedule Establish a Schedule Baseline
2:18 PM

6.1 Define Activities

I, TT, O
Scope Baseline Activity List Activity Attributes Milestone List Decomposition Rolling Wave Planning Templates Expert Judgment EEF OPA
2:18 PM
Decomposition, Rolling Wave Plan

Decomposition Rolling Wave Planning
Decomposition refers to the process of breaking down the WBS element into smaller pieces called activities. Project manager should work collaboratively with the project team and functional managers to appropriately break the WBS into manageable and measurable activities.
Rolling Wave Planning refers to a method of project planning where near term activities are planned in details and the mid term to long term activities are planned in lesser detailed. This method assumes that the near term future is more predictable and there are little known facts about the longer term future.
2:18 PM
Activities
Element of project work that requires an action to produce a deliverable. Have an expected duration. Consume budget and/or human resources. Are named in verb-noun format. Example: Activities in a company project.
Revise user manual. Make a sales presentation. Develop code
Verb (Action) Noun (Deliverable)
Revise user manual

Expected duration determined by (whatever)
2:18 PM
Activity List and attributes
Activity List
Milestones Milestone 1 Milestone 2 Activity Attribute

Person Responsible: Lisa Berg
Activity List: (a) Its a list of all activities that need to be performed to successfully execute the project. (b) Each activity in the activity list should have adequate and clear information.
Milestone List: a) Milestone are of Zero Duration b) Milestone list represent s completion of a set of key activity. c) Milestones are generally deliverable driven, occasionally they can be time driven. d) Eg: Design, Build, Test, Deploy.
Activity Attribute: Any additional information about an activity is considered activity attribute. Eg: Person Responsible, Activity Dependency, Activity location, etc..
2:18 PM

6.2 Sequence Activities

I, TT, O
Project Scope Statement Project Schedule Network Diagrams Activity List Activity Attributes Milestone List Precedence Diagramming Method (PDM) Schedule Network Templates Dependency Determination Applying Leads & Lags
2:18 PM
Precedence Relationship Types
Finish to Start
The initiation of the successor activity depends upon the completion of the predecessor activity.
The completion of the successor activity depends upon the completion of the predecessor activity. The initiation of the successor activity depends upon the initiation of the predecessor activity. The completion of the successor activity depends upon the initiation of the predecessor activity.
Finish to Finish
Start to Start
Start to Finish
2:18 PM
Types of Activity Dependencies
Mandatory 1. Dependencies that are contractually required. 2. These dependencies are identified by the project team. 3. These dependencies are also referred as hard logic.
Discretionary 1. These dependencies are determined by the project team. 2. These dependencies can be changed if required. 3. These dependencies are also referred to as preferred, preferential or soft logic. 4. These dependencies are re-evaluated when the project is to be fast tracked.
External 1. These dependencies are usually outside the project teams control. 2. These dependencies are based on the needs of parties outside of the project.
2:18 PM
Lead
A change in a logical relationship that allows the successor activity to start before the predecessor activity ends in an FS relationship. Implemented when a successor activity needs to be accelerated in order to shorten the overall project schedule.
FS relationship with lead
2:18 PM
Lag
A delay in a logical relationship that causes the successor activity to start after the lag time is completed in an FS relationship. Example: Curing period after Cement road is paved is a lag. Successor activity cant start immediately.
FS relationship with lag

2:18 PM
Types of Network Diagrams

Precedence Diagram Method (AON Activity on Node)
GERT
Activity A
Activity B
Arrow Diagram Method (AOA Activity on Arrow)
2:18 PM
Precedence Diagramming Method (PDM)
Produces a project schedule network diagram that uses rectangular boxes, or nodes, to represent activities and arrows to represent precedence relationships between activities. Characteristics:
Reads from left to right. Shows duration in nodes. Created manually or with software. Report a group of related activities as an aggregate activity. Use all precedence relationship types.
2:18 PM
Precedence Diagramming Method (PDM) (Cont.)

Activity Predecessors
A
B C D E A B,F C, G D F D H I
F
G H I J
A project schedule network diagram using the precedence diagramming method

2:18 PM

6.3 Estimate Activity Resources

I, TT, O
Activity List Resource Calendars Expert Judgment Alternatives Analysis Published Estimating Data Bottom-Up Estimating Project Management Software Activity Resource Requirements Resource Breakdown Structure
2:18 PM
Project Resources
Any useful material object or person needed for project completion. Include labor, materials, facilities, equipment, consultants, services, supplies, and utilities Resources can be categorized in 3 varieties
Work Resources Ex: Human Resources, Equipment Material Resources Ex: Wood, Iron Cost Resources
Fixed Costs (Lump sum and same in all situations, irrespective of usage) Variable Costs (Depends on amount of usage. Different in different situations Ex: Travel)
2:18 PM
Resource Requirements and RBS
Activity Resource Requirements Resource Breakdown Structure Project Document updates

Activity list, activity attribute ..
2:18 PM

6.4 Estimate Activity Durations

I, TT, O
Project Scope Statement Activity List Activity Resource Requirements Analogous Estimating Parametric Estimating Three-Point Estimates Activity Duration Estimates
2:18 PM
Analogous & Bottom-Up

Analogous
It can be Defined as an estimate of duration based on historical data of a similar (analog) item. It is also referred to as top down method.
Advantages: It relies on previous experiences and lessons learned. Its a cost effective way of estimation. Overall project costs will be capped. Limitations: It requires significant past experience. Its has limited application for projects that have significant uncertainty.
Bottom Up
In this method duration of each package is estimated and aggregated to the upper level. The total aggregated duration values is Project Schedule.
Advantages: Its more detailed as all activities are estimated. Its more accurate. Gains buy in from team members as they are involved in the estimation process. Limitations: It requires a lot of time and effort to estimate. Requires that the team has knowledge of all activities. It results in inconsistency as various team members may use different padding assumptions.
2:18 PM
Parametric & Three point

Parametric
A parametric duration estimate is one that uses Estimating Relationships (ERs) and associated mathematical algorithms (or logic) to establish project duration estimates. Advantages: It is based on a mathematical algorithm and can be very accurate With established process and expertise, estimation would be lot easier Limitations: Quality parameters are quite important. Little variations in parameters might result into larger estimation variations
Three Point
The accuracy of single-point activity duration estimates can be improved by considering estimation uncertainty and risk. Advantages: Based on age old Program Evaluation Review Technique (PERT) O + 4ML + P / 6 Limitations: . For smaller variance the end result will be closer to most likely value.
2:18 PM
Requirements Scope Statement WBS, WBSD Activity List
Activity List Network Diagrams Resources Requirements Activity Duration Estimates
Peoject Schedule
2:18 PM

6.5 Develop Schedule Process

I, TT, O
Project Scope Statement Activity List Project Schedule Network Diagrams Activity Resource Requirements Activity Duration Estimates Critical Chain Method Resource Leveling What-If Scenario Analysis Schedule Compression Project Schedule Schedule Baseline Refer PMBOK Guide Page: 152
2:18 PM
Project Schedules
The plan for starting and finishing activities on specific dates and in a certain sequence. Used to:
Coordinate activities into a master plan. Track schedule performance.
A project schedule for a website design project (deliverable categories in bold)

2:18 PM
Float
The amount of time an activity can be delayed without delaying the successor activities start date or project finish date is called Float Any activity would have 2 types of Floats
Total float: Amount of time that particular activity can be delayed without impacting Project finish date
Can be calculated as (Successor activity Late start date) (Current activity Early finish date)
Free float: Amount of time that particular activity can be delayed without impacting all successor activities start date
Can be calculated as (Successor activity Late start date) (Current activity Early finish date)
2:18 PM
Free Float
The amount of time an activity can be delayed without delaying the start date of any activity that immediately follows it.
A network diagram with FREE FLOAT Activity Days Dependency
A
A
B C
10
5 3 A,B
C B
Float: 5 Days
2:18 PM
Total Float
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
Activity
A B C D E Finish
Dependency
Start A B, E Start A,D C A 10d S D 5d E - 4d B -7d A network diagram with total float
C 3d
Float: 5 Days
Float: 3 Days
2:18 PM
The Critical Path Method

Critical Path method is a theoretical method that suggests time periods within which the activities could be scheduled. To achieve this one should follow below steps
Based on dependencies draw a network diagram Adjustments need to be made to activity durations and other schedule constraints to produce network paths for a given schedule Calculate the theoretical early start and finish dates, and late start and finish dates, for all activities by performing a forward and backward pass analysis through the schedule network The longest among multiple paths is called Critical Path and next to longest is near critical path. A critical path is normally characterized by zero total float on the path. Networks can have multiple near critical paths. Activities on a critical path are called critical activities. Critical activities normally would have Zero FREE Float and Zero TOTAL Float. Once the total float for a critical path has been calculated then the free float for all activities can also be determined.
Critical path duration also represents Project Duration
2:18 PM
Calculating Free and Total Float

Activity A B C Preceding Activity Start Start A Duration 7 4 8
In the Exam network data with dependencies and durations will be provided You need to draw the network diagram and perform forward pass and backward passes, to calculate floats on activities. Several attributes per activity will be identified in this process. Following activity compartments square helps to list all those attributes and calculate floats for those activities
D
E F End
C
B, C D E, F
5
5 3 0
ES LS
ES Early Start EF Early Finish D - Duration
EF LF
LS Late Start LF Late Finish F- Float
Activity
F
Find: -Free Float of B, E -Total Float of B, E

2:18 PM
Calculating Floats Page 2 Instructions

Following are instructions to calculate total float and free float for an activity
1. 2. 3. 4. 5. 6.
7. 8.
9.
Draw the network diagram using AON/Precedence diagramming technique Fill-in the Duration information for all activities Find all possible paths and sum up all durations on the path The path with the longest duration will be called as Critical Path Perform a forward pass on Critical Path and Identify ES, EF for all activities on the path Perform a backward pass on Critical Path and Identify LF, LS for all activities on the path Calculate float on Critical path. Float = LF EF. Normally it should equal to Zero Perform a forward passes on all other not critical paths and Identify ES, EF for all activities on those paths Perform backward pass on all not critical paths to identify LF, LS. There are 2 possibilities to calculate the LF on predecessor activity
1. LF of Predecessor activity = LS of successor activity in this case Total Float will be calculated 2. LF of Predecessor activity = ES of successor activity - in this case Free Float will be calculated
2:18 PM
Calculating Floats Page 3 Network Diagram

Draw the network diagram using AON/Precedence diagramming technique
S
B E
End
2:18 PM
Calculating Floats Page 4 Finding Critical Path

Fill-in durations Find all possible paths and sum up all durations on the path The path with the longest duration will be called as Critical Path
7
A
8
C
5
D
3
F
4
B
5
E
End
Path1 Start A C D F End =23 Path2 Start B E End = 9 Path3 Start A C E End = 20
Longest path = Critical Path, that also equals to Project Duration
2:18 PM
Calculating Floats Page 5 Forward Pass on Critical Path

Start with ZERO as Early Start of the first activity on the critical path Early Start + Duration = Early Finish Transfer Early Finish of Predecessor activity to Early Start of Successor Activity Repeat above 3 steps for all other activities on the critical path up to the last activity Early Finish of the last activity should be same as critical path duration
7 A
8 C
15
15
5 D
20
20
3 F
23
4 B
5 E
End
2:18 PM
Calculating Floats Page 6 Backward Pass on Critical Path

Start with critical path duration as Late Finish of the last activity on the critical path Late Finish - Duration = Late Start Transfer Late Start of successor activity to Late Finish of predecessor activity Repeat above 3 steps for all other activities on the critical path up to the first activity Calculate the Total Float = LF EF = 0 for all critical activities. Normally critical activities would have Zero Total Float and Zero Free Float
20 3 F 20 20 0 23 23
7 A
8 C
15
15
5 D
20
15
15
4 B
5
E
End
2:18 PM
Calculating Floats Page 7 Forward pass on all non Critical Paths

Start with ZERO as Early Start of the first activity on all non critical paths Early Start + Duration = Early Finish Transfer Early Finish of Predecessor activity to Early Start of Successor Activity Consider all dependencies to decide Early Start of Successor Activity Repeat above 4 steps for all non critical path and reach up to the last activities Early Finish of the last activities NEED NOT to be the same as critical path duration
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
2:18 PM
Calculating Floats Page 8
Backward pass on all non Critical Paths Scenario 1: Total Float

Start with critical path duration as Late Finish for all last activities on non critical paths Late Finish - Duration = Late Start Transfer Late Start of successor activity to Late Finish of predecessor activity Repeat above 3 steps for all other non critical path activities up to the first activity Calculate the Total Float = LF EF
7 A
8 C
15
15
5 D
20
20
3 F
23
15
15
20
20
23
4 B
15 18
20
End
E
3 23
14
14 18
2:18 PM
Calculating Floats Page 9
Backward pass on all non Critical Paths Scenario 2: Free Float

Transfer Early Start of successor activity to Late Finish of predecessor activity Calculate the FREE Float = LF EF
7 A
8 C
15
15
5 D
20
20
3 F
23
15
15
20
20
23
4 B
15 18
20
End
E
3 23
11
11 15
2:18 PM
Schedule Network Analysis

Technique used to calculate the theoretical early and late start and finish dates for all project activities. Four methods:
Critical Path Method (CPM). Critical chain method. What-if scenario. Resource leveling.
Example: A marketing campaign schedule Network Analysis Involves:

Using software to create request for proposals. Launching campaign. Estimating slack. Adjusting activities.
2:18 PM
The Critical Chain Method

Critical chain is a schedule network analysis technique that considers resource limitations. First critical path is identified and then resource availability is entered on the critical path and the resource-limited schedule result is determined. The resource-constrained critical path is known as the critical chain. The critical chain method adds duration buffers that are non-work schedule activities to manage uncertainty Used to:
Consider resource limitations Plan and manage reserves Mitigate possible cost and schedule risks
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
A project schedule allows you to consider resource limitations and adjust the schedule
2:18 PM
The What-If Scenario Analysis

Used to consider different situations that might occur and influence the schedule. Computes different schedules based on potential delays. Simulated outcomes can be used in risk response plans. Helps select the optimum plan. Example: What-if scenario for planned move of headquarters. What if the contractor finishes late? What if key decision makers are elsewhere during planning? What if a union strike affects construction workers?
2:18 PM
Resource Leveling
Resource leveling is a schedule network analysis technique to fix resource over allocation. Objective is to ensure that resources are not over-allocated or over-burdened, and that there are not significant ups and downs in the resource schedule. Over Allocations are looked as
Individual resources Demand for Entire Project
Generally, resources are leveled in two ways:

By delaying the tasks By splitting the task and part of it works in the future
Following are few other methods used to resolve over allocations:

Adjusting the resources assigned to a task. Assigning more resources to a task. Replacing an over allocated resource with an under allocated one or removing a resource. Adjusting or contouring the amount of work assigned to a resource.
2:18 PM
Schedule Formats
Bar chart:
Shows start and end dates, duration, order. Can show precedence relationships. Can show percentage completion; actual progress. Used to present project status to management.
A bar chart Copyright 2012 CertSchool.com. All rights reserved. PMP, CAPM, PMBOK, PMI are Registered Marks of Project Management Institute, Inc.
2:18 PM
Schedule Formats (Cont.)

Milestone chart:
Provides summary level view of projects milestones. Uses icons or symbols. Shows the projects overall schedule.
A milestone chart Copyright 2012 CertSchool.com. All rights reserved. PMP, CAPM, PMBOK, PMI are Registered Marks of Project Management Institute, Inc.
2:18 PM
Schedule Compression
Schedule compression is the concept that shortens the project schedule without changing the project scope Two techniques are available:
Fast-tracking: is a technique to shorten the duration by performing sequential activities is parallel.
Crashing: is a technique to shorten the duration by bringing in additional resources or approving overtime. Crashing only works for activities where additional resources will shorten the duration. +
2:18 PM
Schedule Baselines
The management-approved version of the project schedule. Drawn from the schedule network analysis. Provides basis for measuring and reporting schedule performance.
A chart showing a schedule baseline

2:18 PM
Developing Cost Estimates and Budgets

Project Cost Management includes the processes of estimating, budgeting, and controlling costs In practice for smaller projects, estimating and budgeting activities may be combined in one step 3 Process names are
Estimate Costs Determine Budget Control Costs
2:18 PM
Project Cost Management

Cost Management Plan is the plan that determines various aspects of how costs will be incurred, measured and controlled through out the project. Cost Management Plan establishes / includes: Level of Accuracy: Rounding off and contingencies. Units of Measure: Staff hours, staff days, currency etc., Control thresholds: Amount of variance allowed before an action would initiate. Reporting formats. Cost inclusion / exclusion rules. (such as whether direct costs will be included or indirect or both)
* Important Note: Cost Management Plan is created as a part of Develop project management plan process in the Integration Management.
2:18 PM
Lifecycle costing
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.
2:18 PM

7.1 Estimate Costs Process

I, TT, O
Scope Baseline Project Schedule Human Resource Plan Risk Register Cost of Quality Vendor Bid Analysis Activity Cost Estimates Basis of Estimates
2:18 PM
Common Estimate Types
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.
Rough Order of Magnitude (ROM)
Budgetary Definitive estimate (or control or detailed)

Phased estimate (or rolling wave or moving window)
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.
2:18 PM
Analogous & Bottom-Up

Analogous
It can be Defined as an estimate of duration based on historical data of a similar (analog) item. It is also referred to as top down method.
Advantages: It relies on previous experiences and lessons learned. Its a cost effective way of estimation. Overall project costs will be capped. Limitations: It requires significant past experience. Its has limited application for projects that have significant uncertainty.
Bottom Up
In this method duration of each package is estimated and aggregated to the upper level. The total aggregated duration values is Project Schedule.
Advantages: Its more detailed as all activities are estimated. Its more accurate. Gains buy in from team members as they are involved in the estimation process. Limitations: It requires a lot of time and effort to estimate. Requires that the team has knowledge of all activities. It results in inconsistency as various team members may use different padding assumptions.
2:18 PM
Parametric & Three point

Parametric
A parametric duration estimate is one that uses Estimating Relationships (ERs) and associated mathematical algorithms (or logic) to establish project duration estimates. Advantages: It is based on a mathematical algorithm and can be very accurate With established process and expertise, estimation would be lot easier Limitations: Quality parameters are quite important. Little variations in parameters might result into larger estimation variations
Three Point
The accuracy of single-point activity duration estimates can be improved by considering estimation uncertainty and risk. Advantages: Based on age old Program Evaluation Review Technique (PERT) O+4ML+P / 6 Limitations: . For smaller variance the end result will be closer to most likely value.
2:18 PM

7.2 Determine Budget

I, TT, O
Activity Cost Estimates Basis of Estimates Scope Baseline Project Schedule Cost Aggregation Funding Limit Reconciliation Cost Performance Baseline
2:18 PM
Funding Limit Reconciliation
A method of adjusting spending, scheduling, and resource allocation in order to bring expenditures into alignment with budgetary constraints.
Example: A customer wants to spread project costs over two quarters. $250,000 during Q1. $350,000 during Q2.
Q1: $250,000 Q2: $350,000
2:18 PM
Cost Aggregation
Project Cost Baseline Project Costs
+ +
Management Reserve Contingency Reserve Project Costs
Project Budget Project Cost Baseline
Control Accounts Costs
Control Accounts Costs
Work package Costs Activity Costs
Work package Costs Activity Costs Activity Costs Activity Costs
Work package Costs Activity Costs
Work package Costs Activity Costs Activity Costs Activity Costs
Activity Costs Activity Costs
Activity Costs Activity Costs
2:18 PM
Cost Baselines
A time-phased budget monitors and measures cost performance throughout the project life cycle. Developed by adding the estimated costs of project components by period.
A generic cost baseline shown as an S-curve

2:18 PM
Completed S-Curve Graph

Summation of the approved budgets is displayed as S-Curve
40 35 30 35
Bell Curve of Costs

Costs in '000
Wks Costs in '000 Cumilative Wk1 3 3 Wk2 10 13 Wk3 10 23 Wk4 20 43 Wk5 35 78 Wk6 35 113 Wk7 20 133 Wk8 10 143 Wk9 5 148 Wk10 2 150
20 10 0 3 10 10
20
20 10 5 2
Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8 Wk9 Wk10
2:18 PM
Planning Project Work

Identify the Elements of a Project Management Plan Develop Project Management Plan
Develop 3 Baselines (Planning Part 1) Scope Baseline (Process 5.3) Schedule Baseline (Process 6.5) Cost Baseline (Process 7.2) At this point all 3 baselines are developed. Now Subsidiary management plans should be developed. Develop 13 Subsidiary Management Plans (Planning Part 2) Scope, Cost, Time Management Plans (Process 4.2) Configuration, Change Management Plans (Process 4.2) Requirements Management Plan (Process 5.1) Quality Management Plan (Process 8.1) HR Management Plan, Staffing Management Plan (Process 9.1) Communication Management Plan (Process 10.2) Risk Management Plan (Process 11.1) Develop Risk Responses (Process 11.2 11.5) Procurement Management Plan (Process 12.1)
Review CertSchool Poster #1; Identify 20 planning processes; Identify processes that develop baselines and identify processes that develop management plans
2:18 PM
Quality
Totality of features and characteristics of a product or services that bear on its ability to satisfy stated or implied needs. Other definition: The degree to which a set of inherent characteristics fulfill requirements Other definition: Quality is conformance to requirements or specifications
Quality is providing what CUSTOMER wants

Quality and Grade
Fulfilling customer requirements as they wish is Quality Grade is same functional use, but different technical characteristics
Precision and Accuracy

Repeated values are not scattered is precision Closer to the target value is accuracy
2:18 PM
Three Process of Quality Management
8.1 Plan Quality
QM Management Planning
8.2 Perform Quality Assurance
QA Audit
QC Check (Inspection)
2:18 PM
8.3 Perform Quality Control

8.1 Plan Quality

I, TT, O
Scope Baseline Cost Performance Baseline Schedule Baseline Cost-benefit Analysis Cost of Quality Benchmarking Design of Experiments Quality Management Plan Quality Metrics Quality Checklists Process Improvement Plan
2:18 PM
Quality Management Importance

Following concepts shows the importance of the Quality Prevention over Inspection
The concept is Audit the system and identify the problems to PREVENT them before inspection figures out the defects.
Customer Satisfaction
Quality product is developed for customer satisfaction
Continuous improvement
Quality cant be achieved overnight. It has to be achieved over the period one step at a time. KAIZEN is the word states that continuous improvement is much better than sudden change or growth. KAI Change, ZEN Good.
Management Responsibility
Management needs to participate and recognize the requirements of Quality in the project.
2:19 PM
Total Quality Management (TQM)

An approach to improve business results through an emphasis on customer satisfaction, employee development, and processes rather than functions.
Different quality theorists who implemented total quality management are:

W. Edwards Deming Joseph Juran Philip Crosby Genichi Taguchi Bill Smith
2:19 PM
Standards and Regulations

Standards:
Non-mandatory guidelines or characteristics that have been approved by a recognized body of experts such as the International Organization for Standards (ISO).
Regulations:
Compliance-mandatory characteristics for specific products, services, or processes. Example: 2007 U.S. recall of toys with lead-based paint.
New rules and regulations:

Stricter federal regulations, with criminal penalties. U.S. toy retailers forced suppliers to meet tougher standards than required by the government.
2:19 PM
Cost of Quality
The concept of quality costs is a means to quantify the total cost of quality-related efforts and deficiencies. It was first described by Armand V. Feigenbaum in a 1956 Harvard Business Review article Costs can be accounted as
Costs of control (Costs of conformance)
Prevention costs Appraisal costs
Costs of failure of control (Costs of non-conformance)

Internal failure costs External failure costs
2:19 PM
Checklists
A job aid that prompts employees to perform activities quality standard according to a consistent
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 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? Y/N
4
5 6 7 8
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? A checklist for printing image
2:19 PM
Flowchart
A diagram that shows the relationships of various elements in a system or process. Two flowcharting techniques:
Cause-and-effect diagram. Process or system flowchart.
Helps identify potential quality problems and possible effects of the problems.
2:19 PM
Process Flowchart
Shows the sequence of events and flow of inputs and outputs between elements in a process or system. Has a definite beginning and end.
A sample process flowchart
2:19 PM
Cause-and-Effect Diagram
A diagram that shows the relationships of various elements in a system or process.
A cause-and-effect diagram
2:19 PM
Control Charts
A graph used to analyze and communicate the variability of a process or project activity over time. Shows the potential capability of the process. Suggests the range of variability in the process.
Indicates Instability UCL UCL
LCL
LCL
Variability above the upper Copyright 2012 CertSchool.com. All rights reserved. PMP, CAPM, PMBOK, PMI are Registered Marks of Project Management Institute, Inc.
control limit (UCL)
2:19 PM
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.
2:19 PM
Design of Experiments (DOE)
A technique to systematically identify varying levels of independent variables. Example: Creating a new style of jar in a cannery Creation involves:
Determining the optimum torque size. Testing torque with spindle speed and conveyor speed. Determining adjustments to these settings.
2:19 PM
Metric
A metric is a verifiable measure stated in either quantitative or qualitative terms.
95 percent inventory accuracy as evaluated by our customers, we are providing above-average service
A metric is a verifiable measure that

captures performance in terms of how something is being done relative to a standard, allows and encourages comparison, supports business strategy.
Quality metric data may be used to:

spot trends in performance. compare alternatives. predict performance.
2:19 PM
Process Improvement Planning

The process of analyzing and identifying areas of improvement in project processes. Enumerating an action plan based on the project goals and identified issues. Involves:
Describing operational theories and project roles and responsibilities. Identifying long and short-term goals. Describing process improvement objectives and activities. Identifying risks and resource requirements. Determining process improvement activities. Creating a process improvement plan. Receiving approval from stakeholders and senior managers. Executing the process improvement plan.
2:19 PM
Quality Management Plan
Describe for the project stakeholders the teams approach to implement the quality policy. Outline how quality control and quality assurance will be performed.
2:19 PM

9.1 Develop HR Plan
I, TT, O
Activity Resource Requirements Organization Charts and Position Descriptions Organizational Theory Networking Human Resource Plan
2:19 PM
Organizational Structure Types

Dictates how the various groups and individuals within an organization interrelate. Types:
Item Projectized organization Matrix organization Y/N Each department carries out specific activities. Reporting is hierarchical. PMs authority is low, relative to functional manager. PM and core project team operate as a separate unit. PM has significant authority and independence. Individuals report upwards and also horizontally.
Functional organization
2:19 PM
Organizational Charts
Organizational Charts can be represented in 3 formats
Hierarchical OBS, RBS, Matrix Resource Assignment Matrix (Ex: RACI) Text-oriented
Job Description: ..
Accountabilities: --------------------------------------------------------------------------------------------
2:19 PM 220
RACI Chart
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
2:19 PM
HR Plan
The human resource plan, a part of the project management plan, provides guidance on how project human resources should be defined, staffed, managed, controlled, and eventually released. Components include:
Roles Responsibilities Authority Competency Project Organizational Charts Staffing Management Plan
2:19 PM
Staffing Management Plan

The staffing management plan, a part of the human resources plan, describes when and how human resource requirements will be met. Forecast what types of staff will work on the project, when they will be needed, how they will be recruited onto the project, and when they will be released from the project.
Staffing Management Plan Components

Staff acquisition Resource Calendars Staff Release plan Training needs Recognition and rewards Compliance Safety
2:19 PM

10.2 Plan Communications
I, TT, O
Stakeholder Register Stakeholder Management Strategy Communication Requirements Analysis Communication Technology Communication Models Communication Methods Communications Management Plan
2:19 PM
Communications Requirements Analysis

The analysis of the communication requirements determines the information needs of the project stakeholders. These requirements are defined by combining the type and format of information needed with an analysis of the value of that information An investigation that leads to a clear articulation of the stakeholders' communications needs. Helps project manager make effective choices regarding the technologies to be recommended in the communications management plan. Example: Surveying stakeholders regarding their communications needs. Questions asked may include:
How often would you like to receive status reports? How would you prefer to receive information? By phone, by email, or in faceto-face meetings? What level of detail are you expecting to see? What kinds of questions do you expect to have answered?
2:19 PM
Effective and Efficient Communication
Identify stakeholder information needs and plan for communication approach Improper planning will lead in to delay in communication or sensitive information to wrong audience
Effective communication means information is provided in right format, at right time and with right impact Efficient communication means providing only required information
2:19 PM
Potential Channels
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.
2:19 PM
Communication Models
A basic model of communication demonstrates how information is sent and received between two parties, defined as the sender and the receiver. The key components of the model include:
Encode: To translate thoughts or ideas into a language that is understood by others Message and Feedback message: The output of encoding Medium: The method used to convey the message Noise: Anything that interferes with the transmission and understanding of the message Decode: To translate the message back into meaningful thoughts or ideas
Hello here is my message!!
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
OK I got it here is my feedback!!
2:19 PM 255
Communication Methods
Interactive Communication
Between 2 or more partied, multidirectional
Push Communication
Sent to specific recipients
Pull Communication
Very large information for very large audience. Intranet website is an example
The technologies used for communications planning: websites, email, instant messaging, phones, video conferencing.
2:19 PM
Communications Management Plan

Describes the project teams approach to communicate project information. The communications management plan can be formal or informal, highly detailed or broadly framed, and based on the needs of the project The communications management plan can also include guidelines and templates for project status meetings, project team meetings, e-meetings, and e-mail, a project website and project management software. The communications management plan usually provides:
Stakeholder communication requirements Information to be communicated, including language, format, content, and level of detail Time frame and frequency for the distribution of required information Person responsible for communicating the information. Person responsible for authorizing release of confidential information Person or groups who will receive the information; Methods or technologies used to convey the information, such as memos, e-mail, and/or press releases; Escalation process identifying time frames and the management chain (names) for escalation of issues that cannot be resolved at a lower staff level Flow charts of the information flow in the project, workflows with possible sequence of authorization, list of reports, and meeting plans, etc..
2:19 PM
6 processes of Risk Management

Plan Risk Management
The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of negative events in the project
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Monitor and Control Risks
2:19 PM

11.1 Plan Risk Management

I, TT, O
Project Scope Statement Cost Management Plan Schedule Management Plan Communications Management Plan Planning Meetings and Analysis Risk Management Plan
2:19 PM
Risk Management Plan
Methodology Roles and responsibilities Budgeting Timing Risk categories Definitions of risk probability and impact Probability and impact matrix Reporting formats Tracking
RMP
2:19 PM
Risk Breakdown Structure

The Risk Breakdown Structure (RBS) is a hierarchically organized representation of the identified risks arranged by risk categories and subcategories RBS helps project team to identify Risk and provide details at a consistent level RBS allows Project team to provide high level response strategies at category level
Project Risks Category A Category B Category C
2:19 PM 280
Risk Impact Matrix

The quality and credibility of the Perform Qualitative Risk Analysis process requires that different levels of the risks probabilities and impacts be defined.
2:19 PM 281

11.2 Identify Risks

I, TT, O
Risk Management Plan Activity Cost Estimates Activity Duration Estimates Scope Baseline Documentation Reviews Information Gathering Techniques Checklist Analysis Assumptions Analysis Diagramming Techniques SWOT Analysis Risk Register
2:19 PM
Information-Gathering Techniques
Technique Description
Brainstorming
Delphi technique Interviewing Root cause analysis
Used to identify overall project risks or may focus in on the risks within a particular project segment or work package.
Generates a consensus among project risk experts who anonymously submit their risk list to a facilitator. Used to get information from people with a wide experience across many projects. Used to identify problems, discover the root cause, and develop corrective actions. Risk identification checklists can be developed to make sure all aspects are covered. The lowest level of the RBS can also be used as a risk checklist. While a checklist can be quick and simple.
Checklist Analysis
Assumption Analysis
Every project and every identified project risk is conceived and developed based on a set of hypotheses, scenarios, or assumptions. Assumptions analysis identifies risks to the project from inaccuracy, instability, inconsistency, or incompleteness of assumptions
2:19 PM 287
SWOT Analysis Primary Factors

The technique starts with identification of strengths and weaknesses of the organization, focusing on either the project organization or the wider business SWOT analysis then identifies any opportunities for the project that arise from organizational strengths, and any threats arising from organizational weaknesses. SWOT analysis also examines the degree to which organizational strengths offset threats and opportunities that may serve to overcome weaknesses
S
Strengths
Weaknesses
Opportunities
Threats
2:19 PM
Risk Registers
Identifies and categorizes risks, potential risk responses, triggers. Updated as risk categories change. Risk responses from the initial risk register are used in the risk response planning process. Updated risk register is provided to the project team members.
ID
1
Source
PMO
Date
1/5
Description
Project Management practices unable to deliver the project Shortage of technical resources
Probab ility
High
Impact
High
Trigger
Schedule Delay Delay in previous project
Response Strategy
Clear PM Structure in place with more authority Hire external contractors
Status
Identified
RM
1/12
Low
Med
Identified
A sample risk register
2:19 PM
Triggering Events
Caution Triggering activity Occurred Risks might fall
2:19 PM

11.3 Perform Qualitative Risk Analysis
I, TT, O
Risk Probability and Impact Assessment Risk Data Quality Assessment Risk Categorization Risk Urgency Assessment Risk Register Updates
2:19 PM
Qualitative Risk Analysis

A technique to determine the probability of occurrence and the impact of identified risk. Determine the risk exposure of the project by multiplying the probability and impact. Risk Data Quality Assessment Evaluation of the usefulness of data concerning risk. Examining data includes:
Amount of data available. Quality of data available. Source of information. Legitimacy of data. Dependability of data.
2:19 PM
Probability and Impact Risk Rating Matrix

Each of these numbers are calculated by multiplying Probability and Impact values. 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: Close Monitor - 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
2:19 PM 292
Risk Score
Identify Risks process lists all possible risks, that include High-Impact risks, LowImpact risks, High Probability risks and Low Probability risks Qualitative Risk Analysis process ranks those risks based on Probability and Impact Risk Rating Matrix defined. Risk Score = Probability * Impact Risk Probability Impact Risk Score Rank
Risk 1 Risk 2 Risk 3

Risk 4
High (Ex: 0.8) Low (Ex: 0.4) High (Ex: 0.7)

Low (Ex: 0.4)
High (Ex: 0.8) High (Ex: 0.8) Low (Ex: 0.5)

Low (Ex: 0.3)
Red = 0.64 Amber = .32 Amber = .35

Green / White = .12
1 3 2
4
2:19 PM
Risk Register Updates by Qualitative Risk Analysis

Relative ranking or priority list of project risks: Using combinations of each risks probability of occurring and the impact on objectives if it were to occur, risks will be prioritized relative to each other by sorting them into groups of high risk, moderate risk, and low risk.
Causes of risk or project areas requiring particular attention are identified

Risks requiring response in the near-term are identified Risks for additional analysis and response are identified and Quantitative analysis will be performed Watchlists of low-priority risks are prepared As the analysis is repeated, a trend for particular risks may become apparent, and can make risk response or further analysis more or less urgent/important. Large list of identified risks are categorized, and filtered
Description Probability Impact Score Risk 1 Risk 2 Risk 3 Risk 4 Risk 5 Risk 6 Risk 7 Risk 8 Risk 9 Risk 10
Description Probability Impact Score Risk 10 Risk 8 Risk 6 Risk 3 Risk 1 Risk 2 Risk 5 Risk 7 Risk 4 Risk 9
Will be analyzed quantitatively
Scored & Ranked
2:19 PM 293

11.4 Perform Quantitative Risk Analysis
I, TT, O
Risk Management Plan Data Gathering and Representation Techniques Quantitative Risk Analysis and Modeling Techniques Risk Register (Updates)
2:19 PM
Quantitative Risk Analysis

Perform Quantitative Risk Analysis is performed on risks that have been prioritized by the Perform Qualitative Risk Analysis process as potentially and substantially impacting the projects competing demands. Analysis is used to assign a numerical rating to those risks individually or to evaluate the aggregate effect of all risks affecting the project. It also presents a quantitative approach to making decisions in the presence of uncertainty Quantitative Risk Analysis is performed several times even after Risk responses are provided or on regular intervals of monitor and controlling to measure the overall project Risk and see if it is reduced or not. Data Gathering and Representation Techniques like Interviewing and Probability distribution are used to represent the uncertainty numerically
2:19 PM 298
Quantitative Analysis Modeling techniques
Commonly used modeling techniques include both event-oriented and projectoriented analysis approaches including:
Method Description
Sensitivity analysis
Expected Monetary Value (EMV) analysis Decision tree analysis Modeling and simulation
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.
2:19 PM
Contingency Reserve
This Cumulative Chart developed by a simulation using the Data and Triangular distributions, predicts that the project is only 12% likely to meet the $41m estimate. If management wants 75% likelihood of success, a budget of $50m is required.
Then Contingency is ($50-$41)/$41 = 22%

2:19 PM
Decision Tree
Decision Trees are excellent tools for helping you to choose between several courses of action. They provide a highly effective structure within which you can lay out options and investigate the possible outcomes of choosing those option Steps to arrive at a decision
Drawing a Decision Tree Evaluating Your Decision Tree Calculating Tree Values Calculating The Value of Uncertain Outcome Nodes Calculating the Value of Decision Nodes Arrive at a decision
For example, consider your company is in a situation to take a decision to implement new product or consolidate existing ones. By following the decision tree process you can suggest a solution
2:19 PM
Calculations
2:19 PM
Simulations
Uses computer models and estimates of risk. Translates uncertainties into potential impact. Involves calculating multiple project durations using varying sets of assumptions.
Example: The project team for the multimedia campaign decides which printing contractor to use and chooses between two vendors.
2:19 PM
Monte Carlo Analysis

Optimistic, most likely, and pessimistic estimates. Simulates various outcomes. Predicts a range of possible results. Used to predict likely outcome for schedules and costs. Sophisticated software applications. Effective with large inputs of numbers. Effective when predicting business risk.
Example: Monte Carlo analysis for a project that has three tasks with inexperienced resources.
2:19 PM
Risk Register Updates by Quantitative Risk Analysis

Amount of time and cost contingencies can be calculated using Quantitative Risk Analysis Quantitative Risk Analysis measures the contingency reserve as Expected Monitory Value a multiple of Probability and projected cost impact. EMV = Probability * $$ Impact. Large list of identified risks are categorized, and filtered by Qualitative Analysis. The list is further filtered by Quantitative Risk Analysis. Contingency Reserves for individual risk items are calculated for top risk items. Based on Cumulative Chart and organization risk tolerance overall Project Contingency reserve is calculated.
Description Probability Impact Score Risk 1 Risk 2 Risk 3 Risk 4 Risk 5 Risk 6 Risk 7 Risk 8 Risk 9 Risk 10 Risk 10 Risk 8 Risk 6 Risk 3 Risk 1 Risk 2 Risk 5 Risk 7 Risk 4 Risk 9
Description Probability Impact Score
Scored & Ranked by Qualitative Analysis
Contingency Reserves are Identified by Quantitative Analysis
Risk 10 Risk 8 Risk 6 Risk 3 Risk 1 Risk 2 Risk 5 Risk 7 Risk 4 Risk 9
Description Probability Impact Score $$impact $$ $$ $$
EMV
Requi red Conti ngency Res erve
2:19 PM 293

11.5 Plan Risk Responses
I, TT, O
Strategies for Negative Risk or Threats Strategies for Positive Risks or Opportunities Contingent Response Strategy Risk Register (Updates) Risk-related Contract Decisions
2:19 PM
Risk Strategies
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
2:19 PM
Negative Risk Response Examples

Avoidance
Compatibility issues between two interfaces is the risk. Changing the design is Avoidance strategy Change the task flow to remove a task from the critical path
Mitigation
Compatibility issues between two interfaces is the risk. Developing detailed design plans or allocating more time to resolve the compatibility issues Add buffers to the critical path to reduce the risk
Transference
Subcontract the work to suppliers with demonstrated expertise
2:19 PM
Positive Risk Response Examples

Exploit (Utilization or Taking Advantage) Example:
Project Early finish opportunity is identified. Making sure and plan to utilize the opportunity. Or adding additional resources make sure that this risk item occurs
Sharing Examples
Vendor identified to secure a large order. Vendor partnering with another sub vendors to fulfill the needs
Enhancing
An Airline company enhances its opportunities by Adding additional flights during holiday season
2:19 PM
Contingency & Fallback plans
Contingency plan
A contingency plan is a plan devised for a specific situation when things could go wrong. During times of crisis, contingency plans are often developed to explore and prepare for any eventuality. Contingent response strategy
Fallback plan
Something to which one can resort or retreat. When the contingency plan for a risk is not fully effective, team should implement fallback plan.
2:19 PM
Residual & Secondary Risks
Residual
Risks that remain after applying risk response strategies have been implemented Risks that are not worth dealing with upfront costs and time
Secondary
New risks that emerge as a result of applying risk response strategies. For example: Fevers caused by Flu vaccines
2:19 PM
4 Procurement Processes
Planning Execution Monitor & Control Closing
Plan Procurement
Make or Buy Decision Procurement Management Plan Procurement Docs
Conduct Procurement
Search Vendors List vendors Select a vendor
Administer Procurement
Close Procurement
2:19 PM
Buyer, Seller & Contract
Buyer: The organization interesting in procuring goods and services is termed as buyer. Seller: The organization / individual selling goods or services is termed as seller. Contractors, Service providers, consultants etc.. are all considered sellers. Contract: Contract is the legal agreement between the buyer and seller to buy / sell goods or services.
2:19 PM
Centralized vs. Decentralized

Centralized Procurement
refers to a central procurement department accountable for procuring goods and services for the entire organization.
Decentralized Procurement
refers to project / organization specific procurement where the procurement manager reports to the project manager
Advantages
Procurement manager will gain more experience and hence will gain higher degree of expertise Lessons learned from one procurement can be applied to other procurement(s) Standard corporate policies and practices can be followed
Limitations
Lack of adequate attention from procurement manager due to conflicting priorities.
Advantages
Project Manager will have better access and control over the procurement manager.
Limitations
Lack of opportunity to continuously improve the process.
Lack of availability of expert internal help.
Duplication of efforts
Little or no standardization of processes
Better Career Opportunities for individuals

Unclear Career path for the procurement manager
2:19 PM

12.1 Plan Procurements

I, TT, O
Scope Baseline Requirements Documentation Teaming Agreements Project Schedule Activity Cost Estimates Make-or-Buy Analysis Contract Types Procurement Management Plan Procurement Statement of Work Make-or-Buy Decisions Procurement Documents Source Selection Criteria Refer PMBOK Guide Page: 317
2:19 PM
Make-or-Buy Analysis
A technique used to determine whether it is more cost-effective to produce a product or service in-house or to procure it from an outside seller. Impacts project time, cost, and quality. Consider if a product needs to be purchased, leased, or rented, in case of a buy decision. Consider
Direct & Indirect costs Technical ability Trade secrets?
Example: Make-or-buy analysis for developing training materials.
2:19 PM
Lease, Rent, or Buy Decisions
A business analysis that determines the most cost-effective way to procure the necessary equipment for a project.
Example: Lease, rent, or buy decisions for acquiring a high-speed copier with collating capabilities.
2:19 PM
Teaming Agreements
A legal contractual agreement between two or more parties to form a joint venture. Parties can be internal or external to the organization executing the project. Significantly impacts the planning processes for the project. Predefines issues such as scope of work and competition requirements. Example: A teaming agreement between OGC Corporation and Janrex Inc.
2:19 PM
Risk-Related Contract Decisions
Risk-related contract decisions are made when:

Planning risk responses for the project. Sharing or transferring part or all of the risk. Enhancing or mitigating part or all of the opportunity or threat.
Risk-related contract decisions include:

Agreements for insurance Bonding Services Letter of Credit (LoC) Bank guarantee
2:19 PM
Contracts
Mutually binding agreements that detail the obligations of both parties in terms of procuring work. Customized for each agreement. Contract types:
Fixed price. Cost-reimbursable. Time and Material (T&M) contracts.
Example: A fixed-price contract used by the project team procuring the manufacturing unit for its new line of footwear.
2:19 PM
Types of Contracts
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)
2:19 PM
Contract Types
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
2:19 PM
Procurement Management Plans

Outlines the specifications for procuring work from outside sources. Specifies the types of contracts that will be used. Describes the process for obtaining and evaluating bids. Mandates the standardized procurement documents that must be used. Describes how multiple providers will be managed. States how procurement activities will be coordinated with other project management activities. Plan may be formal or informal; brief or highly detailed.
Example: An advertising agency procuring contracts from external sources for some of their work that is beyond its core capabilities.
2:19 PM
Procurement Statements of Work

A detailed narrative description of the resources, goods, or services sought from external sources for project's requirements. Distributed to potential sellers to evaluate their capability to perform the work or provide the services. Serves as a basis to develop the procurement documents during the solicitation process. A project scope baseline is used to create the procurement SOW. Types:
Performance PSOW - CR Functional PSOW CR / T&M Design PSOW - FP
2:19 PM
Procurement Documents
Documents that are submitted to prospective sellers and service providers to solicit their proposals for the work needed. Document type used will depend on the type of project and the product or service being procured. Example: A request for proposal is a specific type of procurement document.
2:19 PM
Types of Procurement 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)
2:19 PM
Procurement Documents and associated contract types
Term
FP Short
Work
Known
PSOW Design PSOW
Docs
RFB
Risk Seller
T&M
Short
Know/ Un-Known Un-Known
Functional PSOW
RFQ
Both
CR
Long
Performance PSOW
RFP
Buyer
2:19 PM
Source Selection Criteria

The standards used to rate or score proposals, quotes, or bids and forms a part of the procurement solicitation documents. Objective criteria - Can be readily demonstrated and measured. Subjective criteria - Open to different interpretations. Objective criteria is much more specific than subjective criteria.
Objective Criteria Ph.D. chemist with at least five years experience in chromatographic research. 80,00090,000 square-foot storage area within three miles of the Dallas-Fort Worth Airport.
Subjective Criteria Experienced laboratory chemist with strong analytical skills. Ample square foot storage area near Dallas-Fort Worth Airport.
2:19 PM
Contracts related Terms

Letter of Intent: A formal statement that the buyer intends to purchase the property for a certain price on a certain date. But by issuing the LOI buyer is not mandated to make that purchase. Law of Privity (Contractual Relationship) A B
Non-Competitive forms of procurement

Sole Source: There is only one supplier capable of meeting Project requirements within the time and budget available. Single Source: The practice of using one source, among others in a competitive marketplace which, for justifiable reason, is found to be most advantageous for the purpose of fulfilling a given purchasing need.
2:19 PM

4.2 Develop Project Management Plan
I, TT, O
Project Charter Outputs from Planning processes Project Management Plan
2:19 PM
The Project Management Plan

The Project Management Plan is a formal, approved document used to guide both project execution and project control. The primary uses of the project plan are to document planning assumptions and decisions, facilitate communication among stakeholders, and document approved scope, cost, and schedule baselines. (PMBOK) Consists of several subsidiary plans and baselines divided into 2 major categories: Subsidiary Management Plans and Performance Measurement Baseline that consists 3 baselines
Scope Baseline Schedule Baseline Cost Baseline
Goal of 20 Planning processes is to develop Project Management Plan and its subsidiary components. Note: Microsoft Project Plan is a Project Schedule or a Schedule Baseline, which is a subset of Project Management Plan.
2:19 PM
Key Components of a Project Management Plan Subsidiary Management Plans (MP) Requirements MP Scope MP, Schedule MP, Cost MP Quality MP, Process Improvement Plan HR MP, Staffing MP Communications MP Risk MP Procurement MP Configuration MP, Change MP
Baselines Scope Baseline

(Scope Statement, WBS, WBSD)
Schedule Baseline Cost Baseline Combination of above 3 baselines is called Performance Measurement Baseline
2:19 PM
Subsidiary Plan Scope management plan Requirements management plan
Description Provides guidance on the project scope. Specifies the planning for requirements of the project.
Schedule management plan Cost management plan

Quality management plan
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.
Process improvement plan

Human resource plan Communications management plan
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.
Risk management plan

Procurement management plan
Describes how risk management is structured and performed on the project.

Describes how the procurement processes will be managed.
2:19 PM
PMIS & Configuration, Change Management
Project Management Information System

Central network folder or Intranet Portal
Configuration Management System

Project and Product Documentation Changes for those documentation Versions of the Documents
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
Change Control System

How will changes to our cost, schedule, HR, Quality, and other PM plan functions be handled? Life happens Requirements change Unmanaged change is a primary reason for project failure
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
2:19 PM
Project Documents
Documents other than Project Management Plan, created by PM and need not be approved by Sponsor Examples

Charter SOW Contracts Quality Metrics, Action Items, Activity Lists, Risk Register, Issue log, Changes log
Tip: Updates to these documents is done throughout and by many processes. (i.e. Output of many processes)
2:19 PM
Differences
2:19 PM 350
Scope Management Plan
The document provides guidance on how project scope will be defined, documented, verified, managed, and controlled. The scope management plan may be formal or informal, highly detailed, or broadly framed, based upon the needs of the project
2:19 PM
Schedule Management Plan

A schedule management plan that selects a scheduling methodology, a scheduling tool, and sets the format and establishes criteria for developing and controlling the project schedule. A scheduling methodology defines the rules and approaches for the scheduling process. Some of the better known methodologies include critical path method (CPM) and critical chain. The project time management processes and their associated tools and techniques are documented in the schedule management plan. It may be formal or informal, highly detailed or broadly framed, based upon the needs of the project, and includes appropriate control thresholds.
2:19 PM
Cost Management Plan

A cost management plan that sets out the format and establishes the criteria for planning, structuring, estimating, budgeting, and controlling project costs. The cost management processes and their associated tools and techniques are usually selected during the project life cycle definition (Section 2.1), and are documented in the cost management plan. For example, the cost management plan can establish the following:
Level of accuracy Units of measure Organizational procedures links Control thresholds Rules of performance measurement Reporting formats Process Descriptions
The cost management plan may be formal or informal, highly detailed or broadly framed, based upon the needs of the project
2:19 PM
Execution Objectives
Obtain and manage project resources including outsourced deliverables by following the procurement plan Execute the tasks as defined in the project plan Implement the quality management plan using the appropriate tools and techniques Implement approved changes according to the change management plan Implement approved actions (e.g. workarounds) by following the risk management plan Maximize team performance through leading, mentoring, training, and motivating team members.
2:19 PM
Executing Project Work
Identify the Direct and Manage Project Execution Process Execute a Quality Assurance Plan Acquire the Project Team Develop the Project Team Manage the Project Team Distribute Project Information Manage Stakeholder Relationships and Expectations Conduct Procurement
2:19 PM

4.3 Direct and Manage Project Execution
I, TT, O
Project Management Plan Approved Change Requests Project Management Information System Deliverables Work Performance Information Change Requests
2:19 PM
Project Management Information System (PMIS)
An automated system used to gather, analyze, communicate, and store project information. Collects information on:
Work that has and has not been accomplished in each work package. Work result compared to the planned schedule, cost, quality, and scope. May be computerized or manual.
Example: Microsoft Share point and Project Server creates a PMIS environment
2:19 PM
Work Authorization System

A tool used to communicate official permission to begin working on an activity or work package. Ensures that work is done:
At the appropriate time. By the appropriate individual or group. Within a specific time. In the proper sequence.
A contract work authorization system

2:19 PM
Perform the work!! Means - Execute the Project Management Plan
(Output of this process) Are called Work Performance Information Perform Work as per the plan
Status report
Status report
Status report
Approved Changes
Status report
Need Change
Change Control Process
Final Product (DELIVERABLES) 2:19 PM
Work Performance Information

Consists of periodically collected information about project activities. Resides in the PMIS. Includes:
Schedule progress with status information. Deliverables. Schedule activities. Degree of quality standards. Expenses authorized. Estimates to complete the schedule activities. Percent of completed schedule activities. Lessons learned. Resource utilization. Change requests implementation. Corrective and preventive actions Defect repairs.
2:19 PM
Corrective / Preventive / Defective

Corrective Actions
Action to eliminate the cause of a detected nonconformity. There can be more than one nonconformity. Corrective action is taken to prevent recurrence. Correction relates to containment whereas corrective action relates to the root cause.
Preventive Actions
Long term cost / risk weighted action taken to prevent a problem from occurring, based on an understanding of the product or process. Preventive action will address inadequate "conditions" which may produce non conformance
Defect Repair Actions

The word defective describes an entire unit that fails to meet acceptance criteria, regardless of the number of defects within the unit. A unit may be defective because of one or more defects
2:19 PM

8.2 Perform Quality Assurance

I, TT, O
Project Management Plan Quality Metrics Work Performance Information Quality Control Measurements Quality Audits Process Analysis Change Requests
2:19 PM
Quality Audit
Quality Assurance is part of quality management, focused on providing confidence that quality requirements will be fulfilled The main objective of quality assurance activity is to build quality into the product and/or service during the upstream design and planning processes and in this way give confidence to a customer that a product and/or service performs as they expect. A quality audit is a structured, independent evaluation, inspection, or review to determine whether project activities comply with organizational and project policies, processes, and procedures. The objectives of a quality audit are:
Identify all the good/best practices being implemented Identify all the gaps/shortcomings Proactively offer assistance in a positive manner to improve implementation of processes to help the team raise productivity Highlight contributions of each audit in the lessons learned repository of the organization
Quality audits may be scheduled or random and may be conducted by internal or external auditors Quality audits can confirm the implementation of approved change requests
2:19 PM
Types of Quality Audits

A product audit is an assessment of a final product or service and its "fitness for use" against stated requirements or specifications. In a manufacturing sense, a product audit would be performed on some item that has just passed its final inspection and is ready for delivery to the customer. A process audit is the major type of audit performed by quality auditors. This is a review to verify conformance to standards, methods, procedures, or other requirements. A systems audit is not an IT-related review but an audit that covers all aspects of a control system. This type of review is conducted to verify, through objective evidence, that all aspects of management systems and organizational plans are implemented to adequately meet identified requirements.
System Audit
Process Audit
Product Audit
2:19 PM
Topics of Quality Audits
Topic Quality management policy Collection and use of information
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.
Analytical methods
Cost of quality
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
2:19 PM

9.2 Acquire Project Team

I, TT, O
Pre-assignment Negotiation Project Management Plan Acquisition EEF, OPA Virtual teams Project staff assignments Resource calendars
2:19 PM
Factors to consider Acquiring team
Negotiate and influence functional managers to supply resources on time Failure to acquire those resources might delay the project schedule, budgets, customer satisfaction, quality, and add risks. Arrangements to alternative resources should be made to address unavailability of planned resources
2:19 PM
Tools & Techniques

Pre-assignment: When project team members are selected in advance they are considered pre-assigned
Specific resources are part of winning Bid Specific resources are SME of the organization
Negotiation: Staff assignments are negotiated on many projects. Must negotiate with
Functional Managers Other Project management teams External organizations
Acquisition: When the performing organization lacks the in-house staff needed to complete a project, the required services may be acquired from outside sources Virtual Teams
Teams that are distributed among multiple physical locations. May be more difficult because:
Bonding and team identity may be hard to develop. Various forms of communications technology used. Difficult to monitor individual performance/progress.
2:19 PM

9.3 Develop Project Team

I, TT, O
Interpersonal skills Training Team-building activities Ground rules Co-location Recognition and rewards Team performance assessments
2:19 PM
Team Development Stages
Stage Forming Storming
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.
Norming
Performing Adjourning
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.
2:19 PM
Training
An activity to acquire skills, knowledge, or attitudes. Provided to teams, small groups, or individuals. Covers management, technical, or administrative topics. Types:
Multi-day, formal workshop. Five-minute, informal on-the-job training.
Provided to team members when there is a need.
2:19 PM
Team-Building Activities
Specific functions or actions taken to develop a mature, productive team. Activities can be:
Formal or informal. Brief or extended. Conducted by the project manager or a facilitator.
Example: An outdoor team-building activity was initiated by the manager, which involves all day, offsite rope climbing exercise facilitated by a coach.
2:19 PM
Co-location
Positioning team members in the same physical location:
Makes communication easier. Enhance team performance. Improves team spirit.
Both small and large projects benefit from co-location.

Examples: Co-location for a national campaign at which the key members of the campaign's project team would be colocated.
2:19 PM
Reward and Recognition Systems

A formal system used to reinforce performance or behavior. Helps in motivating the team to perform well. Rewards include:
Monetary gifts. Additional vacation time or other perks. Company plaques or trophies. Gifts.
Example: A team member being awarded a gift certificate by the manager for an outstanding performance in mentoring new colleagues. Giving pay increases or promotions to individuals based on merit. Example: 10% salary increase to sales representatives who exceed quota by 25% for the year.
2:19 PM
Team Performance Assessment

Effective team development strategies and activities are expected to increase the teams performance, which increases the likelihood of meeting project objectives The performance of a successful team is measured in terms of technical success according to agreed-upon project objectives, performance on project schedule (finished on time), and performance on budget (finished within financial constraints). High-performance teams are characterized by these task-oriented and results-oriented outcomes They also exhibit specific job-related and people-related qualities that represent indirect measures of project performance
2:19 PM

9.4 Manage Project Team
I, TT, O
Project staff assignments Team performance assessments Performance reports Observation and conversation Project performance appraisals Conflict management Issue log Interpersonal skills
2:19 PM
Conflict Management
Application of one or more strategies to deal with disagreements. Effective conflict management leads to improved understanding, performance, and productivity. Ineffective conflict management leads to:
Destructive behavior. Animosity. Poor performance. Reduced productivity. Resources (people) Cost estimates Technical opinions Trade-off decisions Priorities Administrative procedures Scheduling Assignment of responsibilities Personality clashes
Reasons for the conflict

2:19 PM
Conflict Resolution Techniques

1. 2. 3. 4. Confronting/Problem Solving. Treating conflict as a problem to be solved by examining alternatives; requires a give-and-take attitude and open dialogue Collaborating. Incorporating multiple viewpoints and insights from differing perspectives; leads to consensus and commitment. This approach is integration where both parties need to win. Smoothing/Accommodating. Emphasizing areas of agreement rather than areas of difference. In smoothing, one may sacrifice one's own goals in order to satisfy the needs of the other party. Compromising. Searching for solutions that bring some degree of satisfaction to all parties. To compromise is to bargain which leads to a "win-win" position Withdrawing/Avoiding. Retreating from an actual or potential conflict situation. The problem and the resulting conflict can come up again and again Forcing. Pushing ones viewpoint at the expense of others; offers only win-lose solutions
2:19 PM
5.
6.
Tasks of Performance Appraisals
Use performance appraisal to accomplish tasks, including:

Comparing performance to goals. Reclarifying roles and responsibilities. Delivering positive and negative feedback. Discovering unknown or unresolved issues. Creating and monitoring training plans. Establishing future goals.
2:19 PM
Power of Project Managers
Formal (Legitimate) Reward Penalty (Coercive) Expert Referent
2:19 PM
Leadership Styles
Competence
Supporting Praise, Listen and facilitate For people who have High competence Variable Commitment
Empowering Turn over responsibility For people who have High Competence High Commitment
Coaching Direct and Support For people who have Low Competence Low Commitment
Directing Structure, Control and Supervise For people who have Low Competence High Commitment
Commitment
2:19 PM
Motivational Theories
Maslows Hierarchy of needs Herzbergs 2 Factor Theory McGregors Theory of X and Y Ouchis Theory Z Clayton Alderfer ERG Theory David McClelland 3 Need Theory
2:19 PM
Maslows Hierarchy of needs
Actualization
Self-Esteem
Social Safety
Physiological
2:19 PM
Frederick Hertzbergs 2 Factor Hygiene and Motivation Theory
Hygiene Organization Policies Supervision Working conditions Interpersonal relations Salary Status Job Security
Motivation Achievement Recognition Growth/advancement Interest in Job
2:19 PM
Theory of X and Y
From Douglas McGregors book The Human side of Enterprise 1960
2:19 PM
Ouchis Theory Z
From Japanese Management, contrary to Theory of X-Y. Focus on Loyalty
Long-term employment Collective responsibility Implicit, informal control with explicit, formalized measures Collective decision-making Slow evaluation and promotion Moderately specialized careers Concern for a total person, including their family
Based on Dr. W. Edwards Choid Deming's famous "14 points".

2:19 PM

10.3 Distribute Information
I, TT, O
Performance reports Communication methods Information distribution tools Organizational process assets updates
2:19 PM
Distribute Information
Distribute Information is the communications process of making project information available to project stakeholders, as determined and documented in the Communications Management Plan. Information distribution methods should be appropriate to the project, the timeliness required and the culture of the organization that you are working in. It is important to be mindful that communication is not complete until the sender is confident that the receiver understands the information, as intended. Communication methods Distribution tools
Hard-copy documents Electronic communication tools, conferencing tools, websites Project Management software, meeting and virtual office software, collaborative work management tools
2:19 PM

10.4 Manage Stakeholder Expectations
I, TT, O
Stakeholder register Stakeholder management strategy Communication methods Interpersonal skills Management skills
2:19 PM
Manage Stakeholder Expectations

Process of communicating and working with stakeholders to meet their needs and addressing issues as they occur.
The project manager is responsible for stakeholder expectations management. Addressing concerns that have not become issues yet, usually related to the anticipation of future problems. Properly assess the Risks and gain stakeholder support Actively managing the expectations of stakeholders to increase the likelihood of project acceptance Actively managing stakeholder expectations decreases the risk that the project will fail to meet its goals and objectives due to unresolved stakeholder issues, and limits disruptions during the project.
2:19 PM
Tools & Techniques
Interpersonal Skills

Building trust Resolving conflict Active listening Overcoming resistance

Presentation skills Negotiation Writing skills Public speaking
2:19 PM
Management Skills

12.2 Conduct Procurements

I, TT, O
Procurement documents Source selection criteria Qualified seller list Seller proposals Bidder conferences Proposal evaluation techniques Independent estimates Advertising Internet search Procurement negotiations Selected sellers Procurement contract award Refer PMBOK Guide Page: 329
2:19 PM
Searching Sellers
Advertising: By placing advertisements in general circulation publications such as selected newspapers or in specialty trade publications Project team secures attention of sellers. Some government jurisdictions require public advertising Internet Search: The internet search provides great databases of suppliers. Bidder Conferences: Bidder conferences (sometimes called contractor conferences, vendor conferences, and pre-bid conferences) are meetings between the buyer and all prospective sellers prior to submittal of a bid or proposal.
They are used to ensure that all prospective sellers have a clear and common understanding of the procurement (both technical and contractual requirements). Responses to questions can be incorporated into the procurement documents as amendments. To be fair, buyers must take great care to ensure that all prospective sellers hear every question from any individual prospective seller and every answer from the buyer All responses are well documented and distributed to all prospective sellers.
2:19 PM
Proposal evaluation techniques

Weighing System Evaluate proposals quantitatively Set criteria and weights of those criteria Evaluate individual contractor against each criteria Calculate overall weightage of contractor compared to others Independent Estimate Prepared to verify seller estimates Either buyer can conduct estimate internally or take estimate from an independent consulting company who is not one of those bidders Screening Systems Requires minimum criteria Disqualify sellers who doesnt meet criteria way before other Analysis Seller rating system Takes past performance into account Ex: Urbanspoon.com or Yelp
2:19 PM
Weighting Systems
The method for quantifying qualitative data to minimize the influence of personal bias on source selection. Each organization would have a separate list of criteria to select the seller . All criteria are not same in the preference, there will be some variance preference. Those can be divided on a 100% scale. Assign numerical weights per seller to evaluation criteria. These qualifications are particular seller's ability meet the criteria. In the below example the sellers ability is measured on the scale of 1-10.
Seller 1 Criteria Preferences
Qualification against criteria Score
Seller 2
Seller 3
C1
15%
1.2
1.2
1.2
C2
C3 C4 C5 Total
25%
30% 10% 20% 100%
6
8 4 4
1.5
2.4 0.4 0.8 6.30
4
4 8 6
1
1.2 0.8 1.2 5.40
7
6 6 6
1.75
1.8 0.6 1.2 6.55
On the scale of 1-10 Selected Option
2:19 PM
Qualified Sellers
Sellers who are qualified to deliver products, services, or results based on the procurement requirements identified for a project. List of qualified sellers can be obtained from historical information about different sellers. If the required resources are new to the organization, some research should be done in collaboration with the Purchasing Department.
2:19 PM
Procurement Contract Award

A procurement contract is awarded to each selected seller. The contract can be in the form of simple purchase order or a complex document. Regardless of the documents complexity, a contract is a mutually binding legal agreement that obligates the seller to provide the specified products, services, or results, and obligates the buyer to compensate the seller. A contract is a legal relationship subject to remedy in the courts. The major components include the following:
Statement of work or deliverables, Schedule baseline, Period of performance, Roles and responsibilities, Sellers place of performance, Pricing, Payment terms, Inspection and acceptance criteria, Warranty, Product support, Limitation of liability, Fees and retainage, Penalties, Incentives, Insurance and performance bonds, Subordinate subcontractor approvals, Change request handling, and Termination and alternative dispute resolution (ADR) mechanisms. The ADR method can be decided in advance as a part of the procurement award.
2:19 PM 334
Procurement Negotiations
The process of bargaining to come to a mutual agreement regarding the terms and conditions of a contract.
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.
Introduction
Probing Bargaining Closure Agreement
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.
2:19 PM
Monitoring and Control Objectives

Measure project performance using appropriate tools and techniques Manage changes by updating the project plan and communicating approved changes to the team Ensure that project deliverables conform to the quality standards by using appropriate tools and techniques (e.g. testing, inspection, control charts) Update the risk register and risk response plan by identifying any new risks, assessing old risks, and determining and implementing appropriate response strategies Assess corrective actions on the issue register and determine next steps for unresolved issues by using appropriate tools and techniques Communicate project status to stakeholders for their feedback
2:19 PM
Monitoring and Controlling Project Work

10 Processes in this Process Group:
4.4 Identify the Monitor and Control Project Work Process Review Deliverables and Work Results
4.5 Develop an Integrated Change Control System

Utilize the Integrated Change Control System
5.5 Control the Project Scope 6.6 Control the Project Schedule 7.3 Control Project Costs 8.3 Perform Quality Control 10.5 Report on Project Performance 11.6 Monitor and Control Project Risk 12.4 Administer Project Procurements
2:19 PM
Monitoring and Control

Project monitoring is the measuring, collection, analysis, and reporting of all aspects of project performance.
This continuous monitoring provides the project team insight into the health of the project and identifies any areas requiring additional attention. Study the actual results and compare against the Project Plan (expected results) to ascertain any differences. Charting data can make this much easier to see trends over several cycles and in order to convert the collected data into information. Information is crucial for Control Process".
Project control is the process of keeping/the project on plan using the progress data supplied by project monitoring
Acknowledges progress Request corrective actions on significant differences between actual and planned results. Optimizes resource utilization Analyze the differences to determine their root causes. Determine where to apply changes that will include improvement of the process or product.
Monitoring and Control Prerequisites A baseline that is dependable, approved and documented Established and enforced reporting procedures Planned control procedures at the project start
2:19 PM
Monitoring Considerations
What is to be monitored? Why is it to be monitored? What data and associated procedures are required to produce relevant reports to determine project progress? How do we determine how to track actual performance against project plans and objectives?
2:19 PM
Control Considerations
How are potential deviations identified and corrected before they occur? At what point in the project should control be exerted? How much deviation will be tolerated? What kinds of intervention should be used? How are process issues identified and resolved? What is the basis for incorporating measurement into future processes?
2:19 PM

4.4 Monitor and control project work
I, TT, O
Project Management Plan Performance Reports Change Requests Project Management Plan updates Project documents updates
2:19 PM
Monitor and Control Project Work Process Best Practices

Comparing actual project performance against the project management plan Assessing performance to determine whether any corrective or preventive actions are indicated, and then recommending those actions as necessary; Identifying new risks and analyzing, tracking, and monitoring existing project risks to make sure the risks are identified, their status is reported, and that appropriate risk response plans are being executed; Maintaining an accurate, timely information base concerning the projects product(s) and their associated documentation through project completion; Providing information to support status reporting, progress measurement, and forecasting; Providing forecasts to update current cost and current schedule information; and Monitoring implementation of approved changes as they occur. Maintain accurate information. Maintain the integrity of baselines. Monitor the execution of approved changes.
2:19 PM

4.5 Perform Integrated Change Control
I, TT, O
Project Management Plan Work Performance Information Change Requests Change Control Meetings Change Requests status updates
2:19 PM
Integrated Change Control

The process of identifying, documenting, approving or rejecting, and controlling changes to the project baselines. Reduces risk to a project by governing the execution of proposed changes that will affect schedule and cost or other objectives. Allows project managers to record requested changes. Helps ensure that changes are implemented in a standardized and approved manner. Helps minimize disruptive effect of changes made and monitor progression.
2:19 PM
Causes of Project Changes
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
2:19 PM
Change Control Data Flow

Following 15 Processes can submit change requests
Planning
1. 12.1 Plan Procurements
Execution
2. 3. 4. 5. 6. 4.3 Direct & Manage Project Execution 8.2 Perform Quality Assurance 9.4 Manage Project Team 10.4 Manage Stakeholder Expectations 12.2 Conduct Procurements
M&C (All 9 M&C processes except 4.5 )

7. 8. 9. 10. 11. 12. 13. 14. 15. 4.4 Monitor & Control Project work 5.4 Verify Scope 5.5 Control Scope 6.6 Control Schedule 7.3 Control Costs 8.3 Perform Quality Control 10.5 Report Performance 11.6 Monitor and control Risks 12.3 Administer Procurements
Change Request as input of Process 4.5
4.5 Perform Integrated Change Control

Approval Status Updates
4.3 Direct & Manage Project Execution Also to 8.3, 12.4

2:19 PM
Change Control Process

Project Team / Stakeholders Identify Review & Assess
Change control board(CCB) / Steering Committee
Project Manager Capture & Validate Assign for Review Propose Action
Notify
Approve for Review

Notify Approve Reject
Action
Assign for Action Review and Accept Document and Close
2:19 PM
Change Control Board & Meetings

Also known as The Change advisory board (CAB) delivers support to the Change Management team by approving requested changes and assisting in the assessment and prioritization of changes. This body is generally made up of IT and Business representatives that include: the Change Manager, User managers and groups, technical experts, possible third parties and customers (if required) Project Manager is part of CCB Project Sponsor is final decision making authority in CCB
Change Control Meetings

A change control board is responsible for meeting and reviewing the change
requests and approving or rejecting those change requests. All change control board decisions are documented and communicated to the stakeholders for information and follow-up actions.
2:19 PM

5.4 Verify Scope

I, TT, O
Project management plan Requirements documentation Requirements traceability matrix Validated deliverables Inspection Accepted deliverables Change requests
2:19 PM
Verify Scope and Inspection

Verify Scope is the process of formalizing acceptance of the completed project deliverables. Verifying scope includes reviewing deliverables with the customer or sponsor to ensure that they are completed satisfactorily and obtaining formal acceptance of deliverables by the customer or sponsor. Scope verification differs from quality control in that scope verification is primarily concerned with acceptance of the deliverables, while quality control is primarily concerned with correctness of the deliverables and meeting the quality requirements specified for the deliverables. QC process precedes Verify Scope process. In case there are no additional risks, these 2 process can be performed parallel.
4.2
4.3
Quality Control
Verify Scope
4.6
Inspection: includes activities such as measuring, examining, and verifying to determine whether work and deliverables meet requirements and product acceptance criteria. Inspections are sometimes called reviews, product reviews, audits, and walkthroughs Inspection Involves:
Comparing the baseline specifications and approved changes to the actual project results. Determining the likelihood that remaining deliverables will be completed as projected. Identifying actions needed to ensure work results will meet specifications, scope, schedule, and budget goals.
Prevention over inspection. One of the fundamental tenets of modern quality management states that quality is planned, designed, and built innot inspected in. The cost of preventing mistakes is generally much less than the cost of correcting them when they are found by inspection
2:19 PM
Inspection Reports Components
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.
2:19 PM

5.5 Control Scope

I, TT, O
Project management plan Work performance information Requirements documentation Requirements traceability matrix Variance Analysis Work performance measurements Change requests
2:19 PM
Monitor Scope
What deliverables were called for in the plan to date? What does the customer expect to date? What does the customer expect at the conclusion? Will we be able to deliver what the customer expects?
2:19 PM
Variance Analysis
A quantifiable deviation away from a baseline
Schedule Variance - compares planned and actual performance, not including cost Cost Variance compares deviations from the budget Others Variances include scope, resources, quality, risk
Identify variance
Formal status review Earned value management (EVM)
Assess impact Identify cause Evaluate corrective action options
Favorable and unfavorable Variances Analyze the magnitude of the variance

Ahead of schedule and over budget may be good Behind schedule and under budget may be OK Ahead of schedule and under budget may be good Whether favorable or unfavorable - report and evaluate
2:19 PM

7.3 Control Costs

I, TT, O
Project management plan Project funding requirements Work performance information Earned value management Forecasting To-complete performance index (TCPI) Performance reviews Variance analysis Project management software Work performance measurements Budget forecasts Change requests Refer PMBOK Guide Page: 180
2:19 PM
Earned Value
Earned Value:
In simple terms EV represents the value earned for every dollar spend on the project. It assumes that all costs on the project are incurred to create additional value EV is defined as a project management technique for measuring project progress in an objective way
EV promises to
Improve the definition of project scope Prevent scope creep Communicate objective progress to stakeholders Keep the project team focused on achieving progress
2:19 PM
Earned Value Management
Term
Old Name
What is it?
PV (Planned Value)
BCWS (Budgeted Cost of Work Schedule) BCWP (Budgeted Cost of Work Performed)
Amount of work budgeted till to status date Budgeted value of work completed till to status date
EV (Earned Value)
AC (Actual Cost)
ACWP (Actual Cost of Work Amount of money spend Performed) till to status date
2:19 PM
Example
Module
A B C Monthly Burn Rate Plan
Activities
10 10 5
Schedule
Jan-Feb Feb-Mar Apr
Cost
$10,000 $10,000 $5,000
Months Scheduled Activities

Budget Requirements
Jan 5
$5,000
Feb 10
$10,000
Mar 5
$5,000
Apr 5
$5,000
2:19 PM
Example (Cont )
Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000 Apr 5 $5,000
Status Date Work Performance Information Completed Activities Timesheets & Expenses Jan 5/5 Feb 9/10 Jan - $5,500 Feb - $9,000
2:19 PM
Example (Cont )
Budget Requirements
Jan 5
$5,000
Feb 10
$10,000
Mar 5
$5,000
Status Date
Apr 5
$5,000
Work Performance Information Completed Activities Timesheets & Expenses Jan 5/5 Feb 9/10 Jan - $5,500 Feb - $9,000
Term PV AC $15,000 $14,500
EV
$14,000
2:19 PM
Variances to approved Budget

Name
SV (Schedule Variance) CV (Cost Variance) SPI (Schedule Perf. Index) CPI (Cost Perf. Index)
Formula
SV = EV PV CV = EV AC SPI = EV / PV CPI = EV / AC
What is it?
-ve values means schedule overrun -ve values means cost overrun >1 is good >1 is good
Shortcuts to remember these formulas: - For all 4 formulas, right hand side of = starts with EV - Variance means and Index means / - PV is associated with schedule formulas and AC is associated with cost formulas
2:19 PM
Example (Cont )
Work Performance Information Months Scheduled Activities Budget Requirements Jan 5 $5,000 Feb 10 $10,000 Mar 5 $5,000
Status Date
Apr 5 $5,000
Completed Activities 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 = EV-PV CV = EV-AC SPI = EV/PV CPI = EV/AC
$14000 - $15000 $14000 - $14500 $14000/$15000 $14000/$14500
-$1000 -$500 0.93 0.965
2:19 PM
4 Scenarios of FORECASTING
Aspirants are asked to provide Forecast in the exam, based on a Scenarios presented in the question. There are 4 possible scenarios to provide forecast: Start Finish. Original plan BAC
Status Date Work Completed = EV, Money spend = AC
Need to Provide forecast for this remaining of work Original plan for the project was BAC. (Budget at Completion) New forecasted value is EAC. (Estimate At Completion)
1. 2. 3. 4.
Re-Estimate the remaining work. Remaining work can be performed as per original plan Remaining work can be completed at same Cost Performance Index (CPI) Remaining work can be completed at same Cost and Schedule Performance Indices (CPI * SPI)
2:19 PM
Re-estimation Example
You are an IT Project manager for a project worth of $25,000 budget. You have planned $15,000 work for a particular period. After completing the planned period you have completed certain portion of the work worth of $14,000 by spending $14,500. You have calculated CPI as .965 and SPI as .93. With more than 7% of variance in the schedule you lost confidence in your original estimation and secured your sponsor approval for a re-estimation. Your engineering team has provided an estimation of $12,000 for the remaining work. In this scenario what would be the total cost of the project when it is completed? Understand the problem scenario. Solutions are in 4th slide from here
2:19 PM
Remaining work as per original plan Example

You are an IT Project manager for a project worth of $25,000 budget. You have planned $15,000 work for a particular period. After completing the planned period you have completed certain portion of the work worth of $14,000 and actually spend $14,500. After achieving the first milestone things are pretty clear and you are confident that remaining work can be completed as per original plan. In this scenario, what would be the total cost of the project when it is completed? Understand the problem scenario. Solutions are in 3rd slide from here
2:19 PM
Remaining work as per current cost performance

You are an IT Project manager for a project worth of $25,000 budget. You have planned $15,000 work for a particular period. After completing the planned period you have calculated CPI as .965. After achieving the first milestone things are pretty clear and you are sure that current cost performance would continue to the end. In this scenario, what would be the total cost of the project when it is completed? Understand the problem scenario. Solutions are in 2nd slide from here
2:19 PM
Remaining work as per current cost and schedule performance
You are an IT Project manager for a project worth of $25,000 budget. You have planned $15,000 work for a particular period. After completing the planned period you have completed certain portion of the work worth of $14,000 and actually spend $14,500. After achieving the first milestone things are pretty clear and you are sure that current cost and schedule performances would continue to the end. In this scenario, what would be the total cost of the project when it is completed? Understand the problem scenario. Solutions are in next 2 slides
2:19 PM
Forecasting Estimation At Completion
Scenarios Re estimation Remaining work performed at Original Budgeted rate Remaining work Performed at the present CPI Remaining work considered both SPI and CPI
Estimation At Completion (EAC)

= AC + New estimate for remaining work
= AC + BAC - EV
EAC =
= BAC / CPI = AC + [ (BAC EV) / CPI x SPI ]
Other Formulas considered in forecasting

- Estimation To Complete (ETC) = EAC AC - Variance At Completion (VAC) = BAC - EAC
2:19 PM
Example (Forecasting)
Budget Requirements
Jan 5
$5,000
Feb 10
$10,000
Mar 5
$5,000
Status Date
Apr 5
$5,000
Work Performance Information
Completed Activities
Timesheets & Expenses
A 5/5 B 9/10
Jan - $5,500 Feb - $9,000
Current Reporting Status

PV = $15,000 AC = $14,500 EV = $14,000 SV= $-1000, SPI= 0.93 CV = $-500 CPI = 0.965
Scenario 1 2
Estimation At Completion (EAC) AC + New estimate for remaining work AC + BAC - EV = 14,500 + assuming new est. is 12,000 = 26,500 = 14500 + 25000 14000 = 25,500
3
4
BAC / CPI
AC + [ (BAC EV) / CPI x SPI ]
= 25,000 / .965 = 25,907

= 14500 + [25000-14000 / .965 * .93] = 26757
2:19 PM
Solve the problem1?

You are project manager for a construction project with $1.2m approved budget. For a particular period the PV= 600,000 and your SPI is 1.08 and CPI is .89. Calculate following values: 1. EV= 2. AC= 3. SV = 4. CV = 5. EAC for all 3 scenarios other than re-estimation scenario 6. VAC for above 3 scenarios
2:19 PM
Problem 1: Solution
1. 2. 3. Given BAC = 1,200,000, PV = 600,000, SPI = 1.08, CPI = 0.89 EV = SPI * PV (as we know SPI = EV / PV) EV = 600000 * 1.08 = 648,000 AV = EV/CPI (as we know CPI = EV / AC) AC = 648,000/0.89 = 729,000 SV = EV PV = 648,000 600,000 = 48,000
4.

CV = EV AC = 648,000 729,000 = - 81,000

5.1 EAC (Scenario2) = AC + (BAC EV) = 729,000 + (1,2000,000 648,000) = 1,281,000 5.2 EAC (Scenario 3) = BAC / CPI = 1,200,000/0.89 = 1,348,000 5.3 EAC (Scenario 4) = AC + (BAC-EV) / CPI * SPI 729,000 + 552,000/ (.89*1.08) = 729K + 552k/.9612 729,000 + 574,000 = 1,303,000 VAC = BAC EAC; (-81K, -148K, -103K are respective variances)
6.
2:19 PM
Solve the problem2?

You are project manager for a construction project with $100K approved budget. For certain period PV=20K, EV=25K, AC=25K. Calculate following values: 1. SPI= 2. CPI= 3. SV = 4. CV = 5. EAC for all 3 scenarios other than re-estimation scenario 6. VAC for above 3 scenarios
2:19 PM
Problem 2: Solution
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
5.1 Scenario 2 EAC = AC + (BAC-EV) = 25k + 100k-25k = 100,000 5.2 Scenario 3 EAC = BAC/CPI = 100k/1 = 100,000 5.3 Scenario 4 EAC = AC + (BAC-EV) / CPI*SPI = 25k + (75k/1.25) = 25K + 60K = 85,000 VAC = BAC-EAC 6.1 Variance as per scenario 5.1 shown above = 0 6.2 Variance as per scenario 5.2 shown above = 0 6.3 Variance as per scenario 5.3 shown above = 15,000
2:19 PM
Performance Reporting Techniques
Technique Variance analysis Trend analysis Earned value performance
Description Comparing actual project performance to projected performance. Inspecting project performance over a period of time to determine if performance is increasing or decreasing. Comparing projected performance to actual performance.
2:19 PM
To-Complete Performance Index (TCPI)

An indicator of the usage of resources for the remainder of the project. TCPI = Remaining work / Remaining funds. TCPI (BAC) = (BAC EV) / (BAC AC). TCPI (EAC) = (BAC EV) / (EAC AC). TCPI value can either be > or < 1 when compared with CPI. If TCPI is > 1, the project team should be utilized in a careful manner. If TCPI is < 1, the project team can be utilized in a lenient way.
2:19 PM
Reading Exercise
8.3 Perform Quality Control
ITTO ITTO
Project management plan Quality metrics Quality checklists Work performance measurements Approved change requests Deliverables Cause and effect diagrams Control charts Flowcharting
Histogram Pareto chart Run chart Scatter diagram Statistical sampling Inspection Approved change requests review Quality control measurements Validated changes Validated deliverables Change requests
2:19 PM
What is Quality Control

Quality control is a process employed to ensure a certain level of quality in a product or service. The basic goal of quality control is to ensure that the products, services, or processes provided meet specific requirements and are dependable, satisfactory, and fiscally sound. Essentially, quality control involves the examination of a product, service, or process for certain minimum levels of quality. Quality control activities identify causes of poor process or product quality and recommend and/or take action to eliminate them
If a problem is identified, the job of a quality control team or professional may involve stopping production temporarily.
Usually, it is not the job of a quality control team or professional to correct quality issues. Typically, other individuals are involved in the process of discovering the cause of quality issues and fixing them. Once such problems are overcome, the product, service, or process continues production or implementation as usual.
Often, quality control is confused with quality assurance. Quality Control involves evaluating a product, activity, process, or service. By contrast, quality assurance is designed to make sure processes are sufficient to meet objectives. Quality Control measurements are key inputs for Quality Assurance to implement the suggestions
2:19 PM
10 QC Tools & Techniques

The QC Tools are simple statistical tools used for problem solving. Kaoru Ishikawa has stated that these 7 tools can be used to solve 95 percent of all problems. The seven tools and techniques are known as Ishikawas seven basic tools of quality
1. 2. 3. 4.
5. 6. 7.
Cause & Effect Diagram Control Charts Flowcharting Histogram Pareto Charts Run Charts Scatter Diagram
Other 3 QC tools in PMBOK Guide Statistical Sampling Inspection Approved Change Requests Review
2:19 PM
Variance & Causes

Variance: The quantifiable deviance or amount of departure from expected results for any product or result, including quality, schedule, cost. Sources or reasons for deviations from the expected standard. Two types:
Random: Always present in work. Unavoidable. Special: Unusual, sporadic occurrences.
Result of some unexpected circumstance. Not caused by a flaw in the overall production process.
Random causes: Weather and traffic conditions. Special cause: Minor traffic accident.
Example: Variances in the metropolitan bus schedules.
2:19 PM
The 6-Sigma Limit

The goal of six sigma is value creation through quality improvement. The process by which this is attained would involve training of employees in tools and techniques as well as a problem-solving protocol. Six sigma makes use of quality engineering methods within a defined problem-solving structure to identify and eliminate process defects and solve problems and in this improve yield, productivity, operating effectiveness, customer satisfaction, etc.. In control charts, the 6-Sigma limit refers to six standard deviations between the process mean and the nearest specification limit. When measuring deviations, practically no item will fail to meet the specification. When processes fall outside the limit, adjustments must be made. Sigma Values
One Sigma = 68.26 Two Sigma = 95.46 Three Sigma = 99.73 Six Sigma = 99.99
2:19 PM
Control Charts
Control charts provide a running record of a process. They help you decide when a process is running smoothly and when it needs attention. Specifically, control charts can help you determine whether the variation occurring in a process is caused by common or special causes The allowed range for process instances are between Upper Control Limit (UCL), and Lower Control Limit (LCL). The UCL is set at 3G and LCL is set at -3G
2:19 PM 197
Control Chart Out of Control

Process Out of Control can occur in 2 situations
Outside of UCL or LCL: As per the expectations process occurrences should be either side of the means and with in the limits of UCL and LCL. An occurrence outside of these limits is treated out of control Rule of 7: Seven consecutive occurrences on one side of the mean shows instability and also treated as Out of Control. Rule of 7 is kind of Trigger or symptoms for Out of control for scenario above
Indicates Instability UCL UCL
LCL
LCL
2:19 PM
Histogram
A histogram is a type of frequency plot to visually display how often something occurs. The data is collected in consecutive order of occurrence in a process and plotted on a graph with the y-axis labeled frequency or count and the x-axis marked in the unit of measure for the variable of interest
2:19 PM 210
Pareto Diagrams
The Pareto chart is used to prioritize which contributors make the biggest impact on a problem, or which represent the largest areas of opportunity. These diagrams communicate the 80/20 rule, which states that 80% of an effect comes from 20% of the causes.
Cumulative Percentage of Failures
100% 80% 60%
40% 20% 0%
C D Causes of Failure
2:19 PM
Run Chart
Similar to a control chart without displayed limits, a run chart shows the history and pattern of variation. A run chart is a line graph that shows data points plotted in the order in which they occur. Run charts show trends in a process over time, variation over time, or declines or improvements in a process over time. Trend analysis is performed using run charts and involves mathematical techniques to forecast future outcomes based on historical results. Trend analysis is often used to monitor
Technical performance. How many errors or defects have been identified, and how many remain uncorrected? Cost and schedule performance. How many activities per period were completed with significant variances?
2:19 PM 211
Scatter Diagram
A Scatter diagram is a graphic display of a set of ordered pairs of numerical data points (X and Y). By convention, the first variable in the pair is the independent factor (X) plotted along the horizontal axis, and the second is the dependent variable (Y) plotted on the vertical axis
2:19 PM 212
Statistical Sampling
A technique used to determine characteristics of an entire population based on actual measurement of its representative sample. Produces a process that does not require inspection of every item. Example: Polling organizations.
Ask questions of a small, random sample. Answers given by the sample group suggest how an entire group may feel regarding an issue.
2:19 PM
QC Outputs
Quality Control Measurements: Quality control measurements are the documented results of quality control activities which are key inputs of Quality Assurance measurements Validated Changes: Any changed or repaired items are inspected and will be either accepted or rejected before notification of the decision is provided. Rejected items may require rework. Validated Deliverables: A goal of quality control is to determine the correctness of deliverables. The results of the execution quality control processes are validated deliverables. Validated deliverables are an input to Verify Scope (5.4) for formalized acceptance.
Direct and Manage Project Execution Output: Deliverables
Quality Control Output: Validate Deliverables
Verify Scope Output: Accepted Deliverables
2:19 PM

10.5 Report Performance

I, TT, O
Project management plan Work performance information Work performance measurements Budget forecasts Variance analysis Forecasting methods Communication methods Reporting systems Performance reports Change requests
2:19 PM
Variance Analysis
Variance analysis is an after-the-fact look at what caused a difference between the baseline and the actual performance. Common steps are:
Verify the quality of the information collected to ensure that it is complete, consistent with past data, and credible when comparing with other project or status information, Determine variances, comparing the actual information with the project baseline and noting all differences both favorable and unfavorable to the project outcome. Determine the impact of the variances in the project cost and schedule as well as in other areas of the project If applicable, analyze the trends of the variances and document any findings about the sources of variation and the impact area
2:19 PM
Forecasting Methods
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.
2:19 PM
Performance reports
Performance reports organize and summarize the information gathered, and present the results of any analysis as compared to the performance measurement baseline. Reports should provide the status and progress information, at the level of detail required by various stakeholders, as documented in the communications management plan. Common formats for performance reports include
Bar charts S-curves Histograms.
Performance reports are issued periodically and their format may range from a simple status report to more elaborate reports. A simple status report might show only performance information such as percent complete, or status dashboards for each area (e.g., scope, schedule, cost, and quality)
2:19 PM
Tabular Performance Report
A tabular and simple performance report shows the status of WBS elements
2:19 PM 271
Elaborated Status Report sample
Sections to notice: Project status Financial Performance Project Score Project Performance against deliverables Status items Activities for next period Issues, recommended resolutions Risk Summary
2:19 PM

ITTO
11.6 Monitor and Control Risks

I, TT, O Risk register Project management plan Work performance information Performance reports Risk reassessment Risk audits Variance and trend analysis Technical performance measurement Reserve analysis Status meetings Risk register updates Change requests
2:19 PM
The Project Risk Response Audit

The project risk response audit process examines:
The team's ability to identify risks. The effectiveness of risk response plans. The performance of risk owners.
Audit may be performed by:

A third party. The project's risk officer. Qualified personnel.
Risk response audit for a project
2:19 PM
How to Monitor and Control Project Risks

Guidelines When an event affects the project objectives, consult the risk response plan to identify risks and triggers. Monitor the environment for any new risks. Monitor the effectiveness of the risk response, contingency, and fallback plans. Deal with unforeseen risks by systematically planning a reasoned response. Update project documentation as changes are indicated. Manage the contingency reserve. Example: The drivers safety video project experiences staffing changes and the team develops alternative strategies in response to the risk.
2:19 PM

12.3 Administer Procurements
I, TT, O
Procurement documents Project management plan Contract Performance reports Approved change requests Work performance information Contract change control system Procurement performance reviews Inspections and audits Performance reporting Payment systems Claims administration Records management system Procurement documentation Change requests Refer PMBOK Guide Page: 335
2:19 PM
Administer Procurements
This process focuses on managing procurement relationships, monitoring contract performance, and making changes and corrections as needed. Both the buyer and the seller will administer the procurement contract to ensure that both parties meet their contractual obligations and that their own legal rights are protected. The Administer Procurements process ensures that the sellers performance meets procurement requirements and that the buyer performs according to the terms of the legal contract. Many organizations treat contract administration as an administrative function separate from the project organization. While a procurement administrator may be on the project team, this individual typically reports to a supervisor from a different department.
2:19 PM
The Duties of the Procurements Administrator
The procurements administrators duties include:

Acting as compliance officer. Interpreting contract specifications. Monitoring seller performance. Integrating sub-contracted elements. Managing change requests. Resolving disputes and managing payments. Dealing with contract breach.
2:19 PM
contract change control system Changes to Contract Terms

A contract change control system defines the process by which the procurement can be modified. It includes the paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes. The contract change control system is integrated with the integrated change control system.
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.
Change Administrative changes Contract modification Supplemental agreement
Constructive changes
Termination of contract
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.
2:19 PM
Procurement Performance Reporting

Procurement Performance Reviews : A procurement performance review is a structured review of the sellers progress to deliver project scope and quality, within cost and on schedule, as compared to the contract.
It can include a review of seller-prepared documentation and buyer inspections, as well as quality audits conducted during sellers execution of the work. The objective of a performance review is to identify performance successes or failures, progress with respect to the procurement statement of work Reviews may take place as a part of project status reviews which would include key suppliers
Inspections and audits: can be conducted by the buyer during execution of the project to verify compliance in the sellers work processes or deliverables. Performance Reporting: Performance reporting provides management with information about how effectively the seller is achieving the contractual objectives
2:19 PM
Procurement Management Systems

Payment Systems:
Payments to the seller are typically processed by the accounts payable system of the buyer after certification of satisfactory work by an authorized person on the project team. Work assignment and completion can be tracked by Work Authorization System All payments should be made and documented in strict accordance with the terms of the contract. Contested changes and potential constructive changes are those requested changes where the buyer and seller cannot reach an agreement on compensation for the change, or cannot agree that a change has occurred. These contested changes are variously called claims, disputes, or appeals. Claims are documented, processed, monitored, and managed throughout the contract life cycle, usually in accordance with the terms of the contract. If the parties themselves do not resolve a claim, it may have to be handled in accordance with alternative dispute resolution (ADR) typically following procedures established in the contract. Settlement of all claims and disputes through negotiation is the preferred method. A records management system is used by the project manager to manage contract and procurement documentation and records. It consists of a specific set of processes, related control functions, and automation tools that are consolidated and combined as part of the project management information system. The system contains a retrievable archive of contract documents and correspondence
Claims Administration:

Records Management System
2:19 PM
Administer Procurements Results

Procurement Documentation
The procurement contract with all supporting schedules, requested unapproved contract changes, and approved change requests. Seller-developed technical documentation and other work performance information such as deliverables, seller performance reports, warranties, financial documents including invoices and payment records, and the results of contract-related inspections.
Correspondence:
Contract terms and conditions often require written documentation of certain aspects of buyer/seller communications, such as the need for warnings of unsatisfactory performance and requests for contract changes or clarification.
Payment schedules and requests.

All payments should be made in accordance with the procurement contract terms and conditions.
Seller performance valuation documentation.

Seller performance valuation documentation is prepared by the buyer. Such performance evaluations document the sellers ability to continue to perform work on the current contract These documents can form the basis for early termination of the sellers contract or determine how contract penalties, fees, or incentives are administered.
2:19 PM
Closing Process Group Objectives

Obtain final acceptance of the project deliverables by working with the sponsor and/or customer Transfer the ownership of deliverables to the assigned stakeholders Obtain financial, legal, and administrative closure using generally accepted practices Distribute the final project report including all project closure-related information, project variances, and any issues Collate lessons learned through comprehensive project review Archive project documents and material Measure customer satisfaction at the end of the project by capturing customer feedback
2:19 PM

12.4 Close Procurements

I, TT, O
Project management plan Procurement documentation Procurement audits Negotiated settlements Records management system Closed procurements
2:19 PM
Procurements are closed
When a contract is completed When a contract is terminated before the work is completed Administrative Closure Vs Procurement Closure
Multiple Phases = multiple Administrative Closures Multiple Contracts = multiple Procurement Closures One and Only = Project Closure
2:19 PM
Procurement Audits
A formal evaluation of both the seller's performance of the contract, and the effectiveness of the procurement process itself. Establishes a record that may be used to shape procurement practices in other contracts for projects. Example: Evaluating the second grade phonics textbook sellers. Negotiated Settlements:
In all procurement relationships the final equitable settlement of all outstanding issues, claims, and disputes by negotiation is a primary goal. Whenever settlement cannot be achieved through direct negotiation, some form of alternative dispute resolution (ADR) including mediation or arbitration may be explored. When all else fails, litigation in the courts is the least desirable option.
2:19 PM
Closure Documentation
Procurement file. A complete set of indexed contract documentation, including the closed contract, is prepared for inclusion with the final project files. Deliverable acceptance. The buyer, usually through its authorized procurement administrator, provides the seller with formal written notice that the deliverables have been accepted or rejected. Requirements for formal deliverable acceptance, and how to address non-conforming deliverables, are usually defined in the contract. Lessons learned documentation. Lessons learned, what has been experienced, and process improvement recommendations should be developed for the project fi le to improve future procurements.
Can provide useful information for future contracts. Helps others in the organization apply the learning to their situations
2:19 PM

4.6 Close Project or Phase
I, TT, O
Project Management Plan Accepted Deliverables Organizational Process Assets Expert Judgment Final Products, service, or Result transition
2:19 PM
Close Phase or Project

Close Project or Phase is the process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase Review information from the previous phase closures to ensure that all project work is completed and the project has met its objectives Review the Project Management to ensure completion before considering the project closed If Project is terminated before completion investigate and document the reasons
2:19 PM
Administrative Closure
Involves:
Verifying and documenting project results to formalize project or phase completion. Gathering and updating project documentation and relevant records and reports. Ensuring that the phase or project requirements were met and formal acceptance was granted.
2:19 PM
Project Records to Archive
Project management plan Performance records Contract documentation Communications Project databases Staff evaluations Lessons learned Acceptance documentation
2:19 PM
Lessons Learned Reports
What Went Well Continue What didnt went Well Stop What new things we need to incorporate Start Conducted by PM, Sponsor and entire team
Documents that capture salient and helpful information about the work done in a project or a project phase. Compiled for the benefit of upcoming project phases and future projects
2:19 PM
Considerations of Lessons Learned
Scheduling lessons learned Conflict management lessons learned Sellers lessons learned Customer lessons learned Strategic lessons learned Tactical lessons learned
2:19 PM
Closeout Meetings
Sessions held at end of project or phase. Involves:
Discussing the work. Capturing lessons.
May include stakeholders, team members, project resources, and customers. Example: Closeout meetings for fire safety equipment inspections. The stakeholders, project team members, and representatives from the fire marshal's office will:
Review records. Complete and sign inspection certificates. Review, approve, and sign plans for evacuation procedures. Document inspections and testing of fire safety equipment.
2:19 PM
How to Close the Project or Phase

To properly close a project or phase: 1. Use a project termination checklist, if available. 2. Gather and organize performance measurement documentation. 3. Release project resources. 4. Update records and resource pool database. 5. Analyze project success and effectiveness. 6. Prepare lessons learned reports and a final project report. 7. Obtain project approval from customer. 8. Archive indexed project records. 9. Celebrate the success of the project.
2:19 PM

2010 PMP Slides Mar

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

2010 PMP Slides Mar

Încărcat de

Drepturi de autor:

Formate disponibile

Project Management Training

For PMP and CAPM Certification Training

Examining Project Management Framework Initiating a Project Planning Project Work

Meet the Instructor

MCA, PMP, SCPM, SCM, Prince2 Certified PM, Sigma

About the exam: PMP Eligibility

Meet 3 requirements to appear for the exam Education PM Experience

Minimum 5 Years of total experience 4500 Hours of Project Management Practice

Minimum 3 Years of total experience

About the exam: CAPM Eligibility

PMP Application Cost

PMI Member? Fee: $139

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

CAPM Application Cost

PMI Member? Fee: $129

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

PMP Exam Format

CAPM Exam Format

CAPM Exam questions distribution

PMP Study Plan

CertSchool PMP Prep Summary Schedule

CAPM Study Plan

24 Hrs 30 Hrs 5 Hrs 12 Hrs 1 Hrs 1 Hrs 1 Hrs 3 Hrs 50 Hrs

Exam taking strategy

Round 3 (Impossible Questions)

Select NOT/EXCEPT questions All (or a combination of) the answers

Example A milestone has what duration?

A. 1 day B. 0 (no duration) (Correct) C. 1 hour D. 8 hours

Question Formats (cont.)

All (or a Combination of the Answers)

Question Formats (cont.)

Chicken or the Egg

What comes before Estimate Activity Durations?

Question Formats (cont.)

Question Formats (cont.)

Project Management Body of Knowledge, (PMBOK Guide) Fourth Edition

Process (Inputs, Tools and Techniques, and Outputs)

42 project management processes are defined in PMBOK Guide 4th edition.

Process Groups: Phases vs. Process Groups

How to manage Project & Phases

PMI Process Groups are applied to each phase of the project

Project Management Body of Knowledge (PMBOK )Guide Fourth Edition Page 6

Product Life Cycle

Project Life Cycle

PMI Process groups Used to manage each phase

Initiation Planning Execution Monitoring and Control Closing

Refer PMBOK Guide Page: 39

K.A. Integration Scope

Your learning Communications

Risk Time Cost Quality HR

Refer PMBOK Guide Page: 43

Arrange below 42 Processes in the Process Chart template:

Project Mgmt. vs. Operations Mgmt.

Project management deals with the creation of temporary specific initiatives.

Managing projects typically involves managing all constraints

Delivery aligned to Organization

Program and Program Management

Portfolio and Portfolio Management

Project, Program, Portfolio Interaction Figure

Sub Portfolio and its hierarchy

Project Management Office

Stakeholder influences, uncertainties, and risks are: