Introduction [Project Management Framework]

A project is a temporary endeavor undertaken to create a unique product, service, or result Example: Building a road is an example of a project. The process of building a road takes a finite amount of time, and produces a unique product Second Definition: A project is a complex, nonroutine, one time effort limited by time, budget resources, and performance specifications designed to meet customer needs. What is Not a Project? Projects should not be confused with everyday work. A project is not routine, repetitive work. Ordinary daily work typically requires doing the same or similar work over and over, while a project is done only once; a new service or a new product exists when the project is completed. Routine, Repetitive Work[Operations] Projects

Taking class Notes daily entering sales receipts into the

Writing a term paper Setting up a sales kiosk for a professional accounting meting

accounting ledger Responding to a supply-chain request Practicing scales on the piano Routine manufacture of an Apple iPod

Developing a supply chain information system Writing a new piano piece Designing an iPod that is approximately 2*4 inches, interfaces with PD and stores 10,000 songs

They share many of the following characteristics

Performed by people Constrained by limited resources Planned, executed, and controlled

Projects and operations differ primarily in that operations are ongoing and repetitive, while projects are temporary and unique Project Objectives

Project objectives are contained in the preliminary Project Scope Statement and Project Scope Statement.

Projects are considered complete when the objectives have been met A reason for terminating a project before completion is that the project objectives cannot be met A more complete understanding of the objectives is achieved over the length of the project. It is the project manager's role to accomplish the project objectives. Objectives should be clear and achievable. The Reason for quality activities is to make sure that project meets its objectives.

The Reason for the risk process group is to enhance opportunities and reduce threats to the project objectives.

Things that could negatively impact the project objectives, such as risk and stakeholders' influence should be watched and tracked.

Projects often require tradeoffs between the project requirements and the projects objectives. Project objectives are determined in the initiating process group and refined in the planning process group.

One of the purposes of the develop project management plan process is to determine how work will be accomplished to meet project objectives.

A Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements Managing a project includes

Identifying requirements Establishing clear and achievable objectives Balancing the competing demands for quality, scope, time and cost Adapting the specifications, plans, and approach to the different concern and expectations of the various stakeholders.

A Program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs may include elements of related work outside of the scope of the discrete projects in the program

Triple Constraints - A Balance Project The triple constraints are cost, time, scope of work, quality and customer satisfaction. These are so intertwined that a change in one will most often cause a change in at least one of the others , For example:
If time is extended, the cost of the project will increase. If time extended with the same cost then quality of the product will reduce. If scope is extended then cost and time will also extend. Changes to any of these lesgs sets off a series of activities that are needed to integrate the change across the project.

Progressive Elaboration Progressively means proceeding in steps; continuing steadily by increments, while elaborated means worked out with care and detail; developed thoroughly

International and political environment Some team members may need to be familiar with applicable international, national, regional, and local laws and customs, as well as the political climate that could affect the project. Other international factors to consider are time-zone differences, national and regional holidays, travel requirements for face-to-face meetings, and the logistics of teleconferencing. Cultural and social environment The team needs to understand how the project affects people and how people affect the project. This Includes

understanding of aspects of the economic, demographic, educational, ethical, ethnic, religious, And other characteristics of the people whom the project affects or who may have an interest in the project.

The project manager should also examine the organizational culture and determine whether project management is recognized as a valid role with accountability and authority for managing the project Physical environment If the project will affect its physical surroundings, some team members should be knowledgeable about the local ecology and physical geography that could affect the project or be affected by the project Interpersonal Skills (PMBOK Appendix G) Leadership. Developing a vision and strategy, and motivating people to achieve that vision and strategy Team Building. Helping a group of individuals bound by a commonsense of purpose to work interdependently with each other. Motivation. Energizing people to achieve high levels of performance and to overcome barriers to change Communication The exchange of information Influencing the organization. The ability to 'get things done'. Decision Making. The combination of problem definition, alternatives identification and analysis, and solution action and evaluation. Political and Cultural Awareness. Getting to know political and cultural environment. Negotiation and conflict management. Conferring with others to come to terms with them or to reach an agreement

A standard is a 'document established by consensus and approved by a recognized body that provides, for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context.' Some examples of standards are computer disk sizes and the thermal stability specifications of hydraulic fluids A regulation is a government-imposed requirement, which specifies product, process or service

characteristics, including the applicable administrative provisions, with which compliance is mandatory. Building codes are an example of regulations Project Management Office [PMO] A project management office (PMO) is an organizational unit to centralize and coordinate the management of projects under its domain Portfolio Collection of Projects, Programs and other work grouped together to facilitate effective management to meet strategic objectives. Project Expeditor Staff Assistant and Communication coordinator. No Power to make decisions Project Coordinator Some authority, power and reports to higher-level manager

Project Life Cycle and Organization

Project life cycle - Organizations performing projects will usually divide each project into several project phases to improve management control. Collectively, the project phases are known as the project life cycle. Usually they are sequential. Project Life Cycle Define

What technical work to do in each phase When the deliverables are to be generated, how they are reviewed, verified & validated. Who is involved in each phase How to control and approve each phase

Project Phase Each project phase is marked by completion of one or more deliverables. A deliverable is a tangible, verifiable work product. The conclusion of a project phase is generally marked by a review of both key deliverables and project performance to date, to a) determine if the project should continue into its next phase and b) detect and correct errors cost effectively. These phase-end reviews are often called phase exits, stage gates, or kill points. Practice of overlapping phases is often called fast tracking. Cost and staffing levels are low at the start, higher towards end, and drop rapidly as the project draws to a conclusion. Completion The probability of successful completion generally gets progressively higher as the project continues. Stakeholder Influence On the final characteristics of the projects product and the final cost of the project is highest at the start and gets progressively lower as the project continues. Risk Uncertainty and hence risk of failing is high at the beginning and get progressively lesser/better as project continues Key stakeholders pm, customer (buy/use), org, team & sponsor (pays), Project Management team, PMO Differences - In general, differences between or among stakeholders should be resolved in favor of the customer. Managing is primarily concerned with consistently producing key results expected by stakeholders, Leading Establishing direction vision of the future and strategies, Aligning people to vision, Motivating and inspiring. Problem definition Requires distinguishing between causes and symptoms. Problems may be internal (a key employee is reassigned to another project) or external (a permit required to begin work is delayed). Problems may be technical (differences of opinion about the best way to design a product), managerial (a functional group is

not producing according to plan), or interpersonal (personality or style clashes). Organizational Structure Influence on Projects Functional PM authority Resource Availability Project Budget PM Role Administrative Staff PMO Can exist in any kind of organization including the functional organization Planning Planning is the only PM Process group that has a specific order of activities Release Resources Is the Last activity in the closing process group. Iterations Start after Risk management because only after this final cost and schedule can be determined Functional Organization Advantages Easier management of specialists Team members report to only one supervisor Similar resources are centralized Advantages Efficient project organization Loyalty to the project More effective communications than functional Disadvantages People place more emphasis on their functional specialty to the detriment of project No career path in project management Little or None Little or None Weak Matrix Limited Limited Balanced Matrix Strong Matrix Projectized

Low to Moderate Moderate to High High to Total Low to Moderate Moderate to High High to Total Mixed Full Time Full Time PM Full Time Full Time PM Full Time Full Time

Functional Mngr Functional Mngr Part Time Part Time Part Time Part Time

PM has little/no authority Projectized Organization Disadvantages No home when project is completed Lack or professionalism in disciplines Duplication of facilities and job functions

Advantages Highly visible project objectives Improved PM control over resources More support from functional areas Maximum utilization of scarce resources Better coordination

Less efficient use or resources Matrix Organization Disadvantages Extra administration required More than one boss for project teams More complex to monitor and control Tougher problems with resource allocation Need extensive policies and procedures Functional managers may have different priorities than project managers Higher potential for conflict

Better horizontal and vertical dissemination of information Team members maintain a home

Project MANAGEMENT Processes for a project

Pick Process Project Manager along with team is responsible for picking what processes are appropriate Concept of interaction among PM processes (By Shewhart & Deming) PLAN DO CHECK ACT Monitoring & Control Group not only monitors and controls the work being done within a process group but also monitors and controls the entire project effort Process is a series of actions bringing about a result Process Group Are not project phases. Process groups are usually repeated for each phase/sub project. Initiating Process Are often done external to the projects scope of control Project Charter Approval and funding are handled external to the project boundaries. Charter is primarily concerned with authorizing the project /phase. It links project to the ongoing work of the organization. Rolling Wave Planning Progressive detailing of the project management plan is called rolling wave planning, indicating plan is an interactive and ongoing process. Executing Process Group Majority of the project budget will be spent in performing Executing process group. Integrated Change Control Is performed throughout the project, from project initiation thru Project closure. Core processes Are Performed in same order & may be iterated several times during any one phase Facilitating processes Performed intermittently and as needed during project planning, they are not Optional.

Project INTEGRATION Management

Knowledge Areas Major Processes desc. Primary Inputs Tools & Techniques
Primary Outputs

Integration
Developing the project 1. Project Statement 1. Expert charter that formally of Work Judgment 1. Project Charter

Develop Project authorizes a project or 2. Business Case Charter

a project phase 3. Contract 4. Enterprise environmental factors 5. Organizational Process Assets Documenting the actions necessary to 1. Project Charter 2. Outputs from planning process 3. Enterprise Environmental Factors 4. Organizational Process Assets 1. Project Management Plan 2. Approved Change Requests 3. Enterprise Environmental Factors 4. Organizational Process Assets 1. Expert Judgment 2. PMIS 1. Deliverables 2. Work Performance Information 3. Change Requests 4. Project management plan updates 5. Project document updates 1. Expert Judgment 1. Project Management Plan

Develop Project define, prepare, Management Plan

integrate and coordinate all subsidiary plans into a project management plan. Performing the work defined in the project management plan to achieve the projects

Direct and Manage Project Execution

objectives.

Tracking, reviewing and 1. Project regulating the progress Management Plan to meet the 2. Performance 1. Expert Judgment 1. Change Requests 2. Project Management Plan Updates 3. Project Document Updates

Monitor and

performance objectives reports 3. Enterprise Environmental Factors 4. Organizational Process Assets Reviewing all change requests, approving 1. Project Management Plan

Control Project defined in the project Work

management plan

1. Expert

1. Change Request status updates 2. Project

changes, and managing 2. Work Performance Judgment

Perform Integrated

changes to the deliverables,

Information 3. Change Requests

2. Change

Control Meetings Management Plan updates 3. Project Document updates

Change Control organizational process 4. Enterprise

assets, project documents and the project management plan. Finalizing all activities 1. Project 1. Expert Judgment Environmental Factors 5. Organizational Process Assets

across all of the Project Management Plan

1. Final Product, Service or result 4. Organizational Process Assets updates

Close Project Management Process or Phase

Groups to formally close the project or a project phase. Integration Management

2. Accepted Deliverables 3. Organizational Process Assets

Identification, Definition, Combination, Unification, and Coordination of the various processes and project management activities within the Project Management Processes Groups. Integration is about making choices, about where to concentrate resources and effort. It also involves making tradeoffs among competing objectives and alternatives. PM and team must address every process and level of implementation for process Project Deliverables Need to be integrated with ongoing operations. Reasons to start projects 1. Problems 2. Market Opportunity 3.Business Requirements Project Charter 1. Authorize project

2. Gives Project Manager Authority 3. Issued by initiator or sponsor external to project organization who has the authority to fund. 4. It is broad enough that it does not have to change as the project changes Project Charter Contain 1. Requirements that specify Customer/Sponsor Needs, wants and expectations 2.Business Needs 3.Project purpose or justification 4. Assigned PM authority 5.Stakeholder influence 6.Functional organization participation 7.Assumptions & Constraints 8.Business case and return on investment 9.Summary Budget Enterprise Environmental Factors Company Culture & Structure, Government or industry standards, infrastructure, existing human resources, personal administration (Hire, Fire, performance), work authorization, Marketplace condition, Stakeholder risk tolerance, Commercial database, PMIS (existing sysetms) that the project will have to deal with or can use of. Organizational Process Assets Existing Process, Standards, Policies, Standard Product and Project Life Cycles, Quality policies & procedure, performance measurement criteria, Templates, Communication requirements, Project Closure Guidelines, Risk Control procedure, Issue and Defect Management Procedure, Change Control Procedure, Procedure for Approving & issuing work authorization. It also include Process Measurement database, project files, Historical information & Lessons learned, Configuration management database, financial database containing labor hours, costs & budgets Project Selection Methods 1.Benefit Measurement Methods (Comparative Approach) 1. Scoring Models

2. Benefit Contributions 3. Murder board Panel of people who try to shoot down a new project idea. 4. Peer Review 5. Economic Models 1. Benefit Cost Ratio 2. Cash Flow 3.Internal Return Rate 4. Preset Value (PV) and net present value (NPV) 5.Opportunity Cost 6. Discounted Cash Flow 7. Return On Investment 2.Constrained Optimization Methods (Mathematical Models) 1. Linear 2. Nonlinear 3. Dynamic 4. Integer 5. Multiple Objective Programming Project Management Plan It defines how project is executed, monitored and controlled and Closed. PMP can be either summary level or detailed and can be composed of one or more subsidiary plans and other components. It contains following management plans 1. Change, 2. Communications, 3. Configuration, 4. Cost, 5. Cost Performance Baseline, 6.Human resources, 7. Process Improvement, 8. Procurement, 9. Quality, 10. Requirements, 11. Risk, 12. Schedule Baseline, 13. Schedule, 14.Scope Baseline, 15. Scope. Configuration Management It is a sub system of overall project management information system. It is a means of monitoring and controlling emerging project scope against the scope baseline; its purpose is to manage control changes to the deliverables and the resulting documentation, including which organizational tools will be used. It is any documented procedures used to apply technical and administrative direction and surveillance to audit the items and system to verify conformance requirements. . It documents the physical characteristics of formal project documents and steps required to control changes to them (e.g. would be

used by a customer who wishes to expand the project scope after the performance measurement baseline has been established). When more than one individual has sign a Charter, you have to be concerned with competing needs and requirements impacting your efforts on configuration management Configuration Management Activities 1.Configuration Identification 2.Configuration Status Accounting 3.Configuration Verification and auditing Change Control System It is a collection of formal documented procedures that define how project deliverables and documentation are controlled, changed and approved. It is a subsystem of configuration management. It must also include procedures to handle changes that may be approved without prior review (e.g. result of an emergency) Integrated Change Control It is performed from project inception through completion, it includes

Influencing the factors about change control so that only approved changes are implemented Reviewing, analyzing and approving change requests promptly. Managing approved changes as and when they occur and regulating them Maintain integrity of baseline Review and approve all recommended corrective and preventive actions Coordinating changes across the entire project Documenting the complete impact of requested changes

Process for Making Changes 1. Prevent the root causes of changes (proactively eliminate need of changes) 2. Identify change (coming from measuring from performance baseline, sponsor, team, management, customer, etc.). PM should be looking for changes proactively). 3. Look for the Impact of the change to the project 4. Create a change request (to product scope, project management plan, baseline, etc.) 5. Perform Integrated Change control ( a) Assess the change, b) look for options, c) change is approved or rejected, d)Update status of the change in change control system ). 6. Adjust project management plan, project documents, and baselines. 7. Manage stakeholders expectations communicating changes to stakeholders affected 8. Manage the project to the revised project management plan and project documents Integrated change Control Occurs during all the project management processes. Project Baseline Should be changed for all implemented changes. Sometimes, certain classification of changes gets automatic approval on a project and do not need Change Control Board approval.

Project Plan as an input to team development, the project plan describes the technical context within which the team operates Project Execution Although the products, services or results of the project are frequently in the form of tangible deliverables such as building, road or software, intangible deliverables such as training is also provided. Schedule Change Control System Can include the paper, systems and approvals for authorizing changes. The project manager is normally not the approval authority, and not all the changes approved Organization Process Assets Includes an index & location of project documentation

Formal Acceptance Documentation Project Files Closure Documents Historical information

Difference between Configuration Management and Change Management systems Both the Configuration Management and Change Management systems are sub systems of the ICC. They are to be understood as: Configuration Management System - Relates to maintaining the changes to the product of the project. Change Control System - Relates to maintaing the changes to the Project itself. Take a small example. Your project is to design a latest design washing machine. You have 2 things here. 1is a Project whose objective is to design the washing machine 2- is a Product of the project - which is the washing machine itself. All the characteristics of the Washing Machie viz., height, capacity, drum diameter, motor speed, color etc are called configuration of the product. This is maintained in the Configuration Management Database. Any change to this configuration will be managed through the Configuration Management System.(CMS) On the other hand, there will be plans for controlling scope, cost , time and quality in the project. Any change in these constraints would be managed through the Change Control System (CCS). Hope this helps. Process Improvement Plan Is an effort made by PM to improve processes attached to a project, which results in completing the work faster, cheaper and with higher quality.

Project SCOPE Management

Knowledge Areas Major Processes desc. Primary Inputs Tools & Techniques Primary Outputs

SCOPE
Defining and documenting stakeholders needs 1. Interviews 2. focus Groups 3. Facilitated workshops 1. Project charter 2.Stakeholder Register 4. Group creativity techniques 5. Group decision making techniques 6. Questionnaires and surveys 7. Observations 8. Prototypes Developing a detailed 1. Project charter description of the project and product. 2. Requirements Documentation 3. Organizational Process Assets 1. Expert Judgment 2. Product analysis 3. Alternatives Identification 4. Facilitated workshops Subdividing project deliverables and project work into smaller more 1. Project Scope Statement 2. Requirements documentation 3. Organizational Process Assets 1. Project Management Plan 2. Requirements Documentation 3. Requirements Traceability Matrix 4. Validated Deliverables 1. Decomposition 1. Work Breakdown Structure (WBS) 2. Scope baseline 3. WBS dictionary 4. Project Document Updates 1. Inspection 1. Project Scope Statement 2. Project Document Updates 1. Requirements Documentation 2. Requirements Management Plan 3. Requirements Traceability Matrix

Collect

to meet the project

Requirements objectives.

Define Scope

Create WBS manageable

components Formalizing acceptance of the completed project deliverables.

Verify Scope

1. Accepted deliverables 2. Change requests 3. Project Document updates

Monitoring the status 1. Project

1. Variance analysis

1. Work Performance

Control Scope of the project and

product scope and

management plan 2. Work Performance

Measurements 2. Organizational process assets updates 3. Change requests 4. Project management plan updates 5. Project document updates

managing changes to information the scope baseline 3. Requirements Documentation 4. Requirements Traceability Matrix 5. Organizational Process Assets Scope Management Plan Project Scope

Provides guidance on how project scope will be defined, documented, verified, managed and controlled. This planning effort is part of the Develop Project Management Plan, in the Integration process group. Project Scope: the work that must be done in order to deliver a product; completion is measured against the project plan. It includes meetings, reports, analysis and all the other parts of PM. Product Scope: features and functions that are to be included in a product; completion is measured against the Product requirements. It can be supplied as a result of a previous project to determine the requirements Scope Management Process 1. Determine Requirements, making sure all of them support the business need as described on the charter. 2. Sort thru and balance needs of the stakeholders to determine product scope and project scope. 3. Create a WBS to break scope down to smaller more manageable pieces. 4. Verify that the scope of work planned is actually being done 5. Measure scope performance, and adjust as needed. Requirements Documentation How requirements meet business needs: (Non)Functional reqs, Quality reqs, Acceptance criteria, Assumptions, Organizational Areas Impacted.

Signed by stakeholders. Requirements Management Plan: Documents how requirements will be analyzed, documented, and managed throughout the project. Main parts are: How reqs activities will be planned, tracked and reported Configuration management activities (how changes to product/service/result will be initiated, analyzed for impacts, tracked, and reported, and authorization levels to approve changes) Reqs prioritization process Product metrics Traceability structure

Requirements Traceability Matrix: PM uses the RTM to keep track of all information and to analyze requirements proposed. It takes a form of table with information like: Identification numbers Source of each requirement

Who is assigned to manage the requirement (similar to risk owners) Status of requirement (including if its finished)

Rolling Wave Planning The Project Management team usually waits until the deliverable or subproject is clarified so the details of the WBS can be developed. This is referred as rolling wave planning. So Work to be performed in the near future is planned to the low level of the WBS, whereas work to be performed far into the future can be planned at the relatively high level of the WBS. WBS Dictionary For each WBS Component, WBS dictionary includes a Code of Account Identifier, a description of work, responsible organization, and a list of schedule milestones. Other information can be Contract information, Quality requirements, acceptance criteria, and technical reference, among others. Scope Baseline Includes: Approved project Scope statement WBS WBS dictionary

Verify Scope Is the process of formalizing acceptance of the completed project deliverables. Includes reviewing deliverables with the customer or sponsor to ensure that theyre completed satisfactory and obtaining formal acceptance of deliverables. Differs from Quality Control in that Scope is concerned with acceptance of deliverables, while Quality Control is concerned with correctness od the deliverables meeting quality requirements specified for the deliverables. Inspection Are called Reviews, Product Reviews, Audits and Walkthroughs. Scope Creep Uncontrolled changes are often referred as project scope creep Variance Analysis Project performance is measurements are used to assess the magnitude of variation. It includes finding the cause of variation relative to the scope baseline. Constraints A constraint is an applicable restriction that will affect the performance of the project. For example, a predefined budget is a constraint Assumptions Assumptions are factors that, for planning purposes, are considered to be true, real, or certain. Decomposition (1st level Project phases, 2nd level Deliverables (Break down till cost estimates can be done, verify decomposition correctness) ) lowest level of the WBS may be referred to as work packages. Work not in the WBS is outside the scope of the project.

Decomposing subdividing project work packages into smaller, more manageable components (activities/action steps). The heuristic (rule of thumb) used in project decomposition is 80 hours. Stakeholder Management the project manager must identify the stakeholders, determine their needs and expectations, then manage and influence expectations to ensure project success. Project success depends primarily on customer satisfaction. WBS subdividing project deliverables into smaller, more manageable components. It is a deliverable-oriented grouping of project elements that organizes and defines the total scope of the project. It is a communication tool and it describes what needs to be done and what skills are required. Anything missing in the WBS should be added. The 1st level should be the project life-cycle (not product). The WBS is created by the team (helps to get buy-in) and it is used to make certain that all the work is covered. It provides a basis for estimating the project and helps to organize the work. Its purpose is to include the total project scope of all the work that must be done to complete the project. Defines the projects scope baseline. WBS Dictionary Defines each item in the WBS, including description of the work packages and other planning info such as schedule dates, cost budgets and staff assignments. It helps reduce Scope Creep and increases understanding. WBS dictionary can be used as a part of Work Authorization system to inform team members of when their work package is going to start, schedule milestones and other info. Scope Statement Define and record Requirements. A documented description of the objectives, work content, deliverables, and end product; it includes a description of project assumptions and constraints. Provides stakeholders with a common understanding of the scope of the project and is a source of reference for making future project decisions Statement of Work a narrative description of products or services to be supplied under contract. Work Package deliverable at the lowest level of WBS. They are control points in the WBS and are used for assignments to work centers. They are used to pass a group of work for further breakdown in the executive organization. Control Account one level above the Work Package. Assumptions factors that, for planning purposes, are considered to be true, real or certain The principal sources of project failure are organizational factors, poorly identified customer needs, inadequate specified project requirements,

and poor planning and control.

Project TIME Management

Knowledge Areas Major Processes desc. Primary Inputs Tools & Techniques Primary Outputs

Time
Identifying the specific 1. Scope Baseline actions to be 2. Enterprise 1. Decomposition 2. Rolling wave planning 3. Templates 4. Expert Judgment 1. Activity List 2. Activity Attributes 3. Milestone list

Define Activities

performed to produce environmental factors the project deliverables 3. Organizational Process Assets

Identifying and documenting

1. Activity list 2. Activity Attributes 3. Milestone list 4. Project Scope Statement 5. Organizational process assets

1. PDM 2. Dependency determination 3. Applying leads and lags 4. Schedule network templates

1. Project Schedule Network diagrams 2. Project document updates

Sequence Activities

relationships among project activities

Estimating the type and quantities of

1. Activity list 2. Activity Attributes

1. Expert Judgment 1. Activity resource 2. Alternatives Analysis 3. Published estimated data 4. Bottom-up estimating 5. Project Management Software requirements 2. Resource Breakdown Structure 3. Project document updates

resources required to 3. Resource calendars

Estimate Activity Resources

perform each activity 4. Enterprise environmental factors 5. Organizational Process Assets

Approximating the number of work

1. Activity list 2. Activity Attributes 3. Activity Resource requirements 4. Resource Calendars 5. Project Scope Statement

1. Expert judgment 1. Activity Duration 2. Analogous estimating 3. Parametric estimating 4. Three-point estimates estimates 2. Project document updates

Estimate Activity Durations

periods needed to complete individual activities with estimated resources.

6. Enterprise environmental factors 7. Organizational Process Assets Analyzing activity 1. Activity list

5. Reserve Analysis

1. Schedule Network analysis 2. Critical path method 3. Critical chain method 4. Resource leveling 1. Project schedule 2. Schedule baseline

sequences, durations, 2. Activity Attributes resource requirements, and schedule constraints to create the project schedule. 3. Project Schedule network diagrams 4. Activity Resource requirements 5. Resource Calendars 6. Activity duration estimates 7. Project Scope Statement 8. Enterprise environmental factors 9. Organizational process assets

Develop Schedule

5. What-if scenario 3. Schedule data analysis 6. Appling leads and lags 7. Schedule Compression 8. Scheduling tool 4. project document updates

Monitoring the status 1. Project management 1. Performance of the project to update project plan 2. Project schedule reviews 1. Work

2. Variance analysis performance 3. Project management software 4. Resource leveling measurements 2. Organizational process assets updates 3. Change requests

progress and manage 3. Work performance changes to schedule information 4. Organizational process assets

Control Schedule

baseline

5. What-if scenario 4.Project analysis 6. Adjusting leads and lags 7. Schedule compression 8. scheduling tool management plan updates 5. Project document updates

Project Time Management processes required to ensure timely completion of the project Activity Definition defines activities that must take place to produce project deliverables Activity consumes time (eg testing Events (or Milestones) specified accomplishment / does not consume time (eg tested) Time Management In small projects Activity Definition, Sequencing, Resource Estimation, Duration Estimation and Schedule development are so tightly linked that they are viewed as single process. Schedule Management Plan Is part of Develop Project Management Plan Process. SMP is a subsidiary plan of PMP and may formal or informal, highly detailed or broadly framed depending on the project. Includes: 1) Scheduling methodology, 2)schedule baseline, 3)Identification of performance measures, 4) planning schedule variances management, 5)Identification of schedule change control procedures. Decomposition(Tools and Techniques used in Activity Definition) Involves sub dividing the Work Packages into smaller components called activities. Activity Definition output is schedule activities not Deliverables (Create WBS output is Deliverables) Activity list, WBS and WBS dictionary can be developed either sequentially or concurrently. Performed by team members responsible for the work package. Control Account From management Perspective a control line is drawn in the WBS Hierarchy levels. All the Planning components above this line belong to what is called the Control Account. All efforts performed within a control account are documented in a control account plan. Planning Package It is a WBS Component below the control account but above the work package. Activity List Does not include any schedule activity that is not required as part of the project scope It includes a activity identifier and scope of work description for each schedule activity in sufficient detail. It is used in schedule model and is part of PMP(Project Management Plan) Discrete components of Project Schedule but are not components of the WBS. Activity Attributes Contain Activity identifier, activity Code, Activity Description, Predecessor Activities, Successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constraints and assumptions. Milestone Can be mandatory or optional, it a component of PMP, included in SS and WBSD and used in schedule model. PM can impose additional milestones.

Fragment Network Portions of project schedule network diagram are often referred to as a Sub network or Fragment Network. Sub Network templates are useful when project has several identical or nearly identical deliverables. Lead and Lag Lead allows acceleration of the successor activity, A lag direct a delay in Successor activity Bottom Up Estimation Estimation is done for lower level items and then aggregated. Activity Resource Estimation Identifies type and quantities of resources required for a schedule activity. These are aggregated to determine the estimated resources for each work package RBS (Resource Break Down Structure) Output of Activity Resource Estimation process, it is a hierarchical structure of resources by category & type. Tools and Techniques for Estimate Activity Duration

One Point Estimate One estimator submits one estimate per activity. It can made based on the expert judgment.

Analogous Estimation Using actual duration of previous similar schedule activity. It is project level, given to PM from Management or Sponsor; it is a form of Expert Judgment.

Parametric Estimation Quantity of Work * Productivity Rate - 1.Regression Analysis (Scatter Diagram) 2.Learning Curve. Results of Parametric Estimation can become heuristics.

Three Point Estimates Most Likely, Optimistic, Pessimistic. Reserve Analysis Reserve Analysis to have a reserve for accommodate the risks that remain in the project. These reserves can be reduced after completion of Plan Risk Responses process. There are two types of reserves: 1)Contingency (or buffers) for covering the Plan Risk Responses 2) Management Reserves (to cover unforeseen risks).

Imposed Dates Imposed dates in Scope Statement (I/P to Schedule Development Process) restrict the start or finish date. Schedule Network Analysis (Tools abd Techniques for Schedule Development)

Critical Path Method Calculate Project Duration, Critical path length and Float. Critical path can have 0 or negative total float.

Schedule Compression Crashing (Additional Resources) and Fast Tracking (Parallel) What-if Scenario Monte Carlo Analysis Resource Leveling Applied after Critical Path Method, Keep resource usage at constant level

Critical Chain Method Uses Pessimistic resource availability, Adds duration buffers that are non

work schedule activities. Buffers types (Feeding, Resource, Project).

Monte Carlo Analysis 1. Probability of Completion 2. Probability of Completion in amount of Cost 3.Probability of activity in critical path 4. Risk Project Schedule Should at least include planned start date and finish date for each schedule activity, project schedule is preliminary till resource allocations are done, which usually happens before completion of PMP. Project schedule is when presented in summary form is called as master schedule or milestone schedule. Time Estimate Non-Calendar Schedule Calendar Based Hammock Activity Output of Schedule Development -> Bar Charts -> For Control and management communication, the broader more comprehensive summary activity called Hammock Activity is used between milestones or across multiple interdependent work packages Project network diagrams. Project network diagrams are schematic displays of the projects activities and the logical relationships (dependencies) among them. Coding structure Activities must have different attributes (as responsibility, geographic area , - Used for sorting) Critical Path Method (CPM) (ML) calculates start and finish date for each activity & float Graphical Evaluation and Review Technique (GERT) Allows for probabilistic treatment of both network logic and activity duration estimates. It is a form of ADM (A Network Drawing Method) that allows loops between activities. The easiest example is when you have an activity to design a component and then test it. Program Evaluation and Review Technique (PERT) (O+4ML+P)/6uses a weighted average duration estimate to calculate activity durations. Arrow Diagramming Method (ADM) PERT and CPM focuses on float duration, to determine which activities have the least scheduling flexibility. Activity on Arrow. Only Show finish-to-start relationship

PERT

Program Evaluation and Review Technique Emphasis on meeting schedules with flexibility on cost Three time estimates per activity: pessimistic, most likely, and optimistic The probability of completing a project at or later than its expected time is 50% Event oriented; uses dummy; activity on arrow (AOA)


Critical Path Method (CPM)

Finish-to-Start logical relationship Time estimates appear on arrow

Emphasis on controlling cost and leaving the schedule flexible One time estimate per activity Activity oriented; uses dummy; activity on arrow Time estimates appear on arrow

Represents improvement to PERT and CPM by adding lag relationships to activities

Precedence Diagram Method (PDM)

[Start to Start; Start to Finish; Finish to Start; Finish to Finish] Work is done during activity. Arrow indicates dependancy Activity on node; no dummy finish-to-start is the most commonly used type of logical relationship. Start-to-finish relationships are rarely used

GERT Dependencies Mandatory or Hard

A network diagram drawing method that allows loops between tasks. It is a method of sequencing (e.g. a project requires redesign after completion of testing)

Often involve physical or technological limitations (based on the nature of work being done)

Discretionary

may also be called preferred logic, preferential logic, or soft logic. Soft: desirable and customary (based on experience) Preferential: preferred or mandated by a customer (also, need of the project sponsor)

External

Defined by PM Team

Input needed from another project or source

Critical chain is a technique that modifies the project schedule to account for limited resources. Monte Carlo Analysis Computer simulation of project outcomes using PERT estimates; result represented in S curve. Provides the ability to compute the probability of completing a project on a specific day. Can also be used to assess feasibility of schedule under adverse conditions (eg when a schedule constraint is identified) Heuristics - rules of thumb Critical Path longest path (almost always have no float) Near Critical Path Path is close in duration to critical path, the close it is the more RISK project has.

Variance - Plan minus Actual Float / Slack 1.Free 2. Total 3. Project Float. Time an activity may be delayed from its early start without delaying the project finish date. Difference between the required end date and the expected project completion date. A negative slack on the critical path means that the project is behind schedule. Free Float Amount of time a task can be delayed without delaying the early start of its successor Total Float amount of time that an activity may be delayed from early start without delaying the project finish date Lag waiting time between two tasks (negative lead) Schedule Baseline The original, approved project schedule; should never be changed without proper review and approval. Any approved change should be documented in writing. Should be created at the beginning of the project and used during the project to gauge (measure) overall project performance, not just schedule. The project Performance Measurement Baseline should generally change only in response to a scope or deliverable change. The project performance measurement baselines should generally change only in response to a scope or deliverable change Corrective action - in project time management primarily concerns expediting to ensure that activities remain on schedule. Is anything done to bring expected future schedule performance in line with the project plan. Revisions are changes to the scheduled start and finish dates in the approved project schedule; generally revised only in response to scope changes. Rebaselining may be needed to provide realistic data to measure performance. Scheduling and allocating resources to multiple projects may affect schedule slippage and inprocess inventory. Duration Compression Methods occurs after activity duration estimating and before finalizing the schedule. Include crashing, fast track, Crashing when you are worried about time, not so much about costs. Fast Track resources in parallel, involve increase rework. Should fast track tasks on the critical path (float = 0) in order to save time. Resource Leveling often results in a project duration that is longer than the preliminary schedule. Resource reallocation from non-critical to critical path activities is a common way to bring the schedule back, or as close as possible, to the originally intended overall duration. So 1. Schedule Can Slip 2. Cost increase

Finish to Finish - activities must finish on a specific sequence Start no earlier than & Finish no later than Respectively #1 and #2 most popular date constraint in project management software Root Cause Analysis used to identify the cause of the variation Variance analysis key element to time control. Float variance is an essential planning component for evaluating project time performance Revision category of schedule update that result in change to the projects scheduled start or finish dates. New target schedule should be the usual mode of schedule revision. Schedule Management Plan -defines how schedule changes will be managed; may be formal or informal. Schedule Change Control System-defines procedures for changing the project schedule and includes the documentation, tracking systems, and approval levels required for authorizing schedule changes. Resource Planning Tools Responsibility Matrix Resource Spreadsheet Identify who does what at what time/phase of the project Quantifies how much work is needed from each resource during each time period Identify the periods of time (e.g. calendar date) when a particular resource is working on a particular task Vertical bar chart showing the total number of resources needed during each time period

Resource Gantt Chart Resource Histogram (Resource Loading Chart) Scheduling Tools Networks (PERT, CPM, PDM) Barchart (Gantt) Milestone Chart

Interdependencies; how related Effective progress reporting tool; no logical relationships shown between activities Significant events; good for communicating status (used to track success)

Bar Chart (Grant Chart) 1. Weak Planning Tools 2. Good reporting tools 3. No Dependency Shown 4. No Resources shown Progress Report 50/50, 20/80, 0/100 An Activity is considered X percent complete when it begins and gets credit of the last 100-X percent only when it is completed.

Project COST Management

Knowledge Areas Major Processes desc. Primary Inputs Tools & Techniques Primary Outputs

Cost
Developing an 1. Scope Baseline 1. Expert Judgment 1. Activity approximation of the 2. Project Schedule monetary resources 3. Human resource Plan 4. Risk Register 5. Enterprise 2. Analogous estimating Cost estimates 3. Parametric estimating 2. Basis of 4. Bottom-up estimating estimates 5. Three-point estimates 3. Project 6. Reserve Analysis Document updates

Estimate Costs

needed to complete project activities

environmental factors 7. Cost of quality 6. Organizational Process Assets 8. Project Management Estimating Software 9. Vendor bid analysis Aggregating the estimated costs of 1. Activity Cost estimates 1. Cost aggregation 2. Reserve Analysis 3. Expert Judgment

1. Cost performance baseline

individual activities or 2. Basis of estimates

Determine Budget

work packages to establish a cost baseline (excludes management reserves).

3. Scope baseline 4. Project Schedule

4. Historical relationships 2. Project 5. Funding Limit funding requirements 3. Project Document updates 1. Work performance measurements 2. Budget forecasts 3. Organizational process assets updates 4. Change requests 5. Project management

5. Resource Calendars reconciliation 6. Contracts 7.Organizational Process Assets

Monitoring the status 1. Project management 1. Earned Value of the project to update the project plan 2. Project funding Management 2. Forecasting 3. To-complete performance index 4. Performance Reviews 5. Variance Analysis 6. Project Management software

budget and managing requirements changes to the cost 3. Work performance

Control Costs

baseline. (influencing information the factors that create 5. Organizational changes to the authorized cost baseline) process assets

Plan updates 6. Project Document Updates Estimate Costs Developing and approximation (estimate) of the costs of the resources needed to complete project activities. Determine Budgeting Allocating the overall cost estimate to individual work activities. Control Cost Controlling changes to the project budget. Life Cycle Costing Broader view of Project Cost Management, which includes cost of resources needed to complete schedule activities along with effect of decisions on cost of using, maintaining & supporting the product, service or result of the project. Cost Management Plan It is created as part of the Develop Project Management Plan process. It can establish:

1)Specifications for how estimates should be stated 2)Level of accuracy for estimates 3)Reporting formats 4) Rules for measuring cost performance 4)Whether costs will include both direct costs and indirect costs 5) Control thresholds.

Accuracy of Estimates ROM (Rough Order of Magnitude): Accuracy of project estimate, done at initiating process. Project at initial stages can have ROM in the range of +/50% from actual later it will narrow to a range of 10 to +15%. Budget Estimate: Usually made during the planning phase, in the range of -10 to +25 % from actual. Definitive Estimate: Estimate will become more refined later on the project. Its used whether +/-

10%, or -5 to +10%. Contingency Reserve 1.Project (known Unknowns) Part of Cost Baseline 2.Management (Unknown Unknowns) Part of Cost Budget Chart of Accounts A chart of accounts describes the coding structure used by the performing organization to report financial information in its general ledger Analogous estimating also called top-down estimating, means using the actual cost of a previous, similar project Parametric modeling - mathematical model to predict project costs - per square foot of living space

Parametric Estimation It uses statistical relationship between historical data and other variables to calculate cost estimate. It can produce higher levels of accuracy depending on sophistication, resource quantity and cost data. Bottom-up estimating the cost of individual activities or work packages rolled up to get the estimate for whole component. Determine Budget

Cost baseline: Is a time-phased budget that will be used to measure and monitor cost performance on the project. It is shown as an S curve. Control Account: Represent the basic level at which project performance is measured and reported. The purpose of cost accounts is to monitor and report on project performance. Contingency Reserves: Address the cost impacts of the risks remaining during risk response planning. Management Reserves: Extra funds to be set aside to cover unforeseen risks or changes to the project. Funding Limit Reconciliation Customer will set limits on disbursement of funds for the project. Funding Limit Reconciliation (TT of Cost Budgeting) will necessitate the scheduling of work to be adjusted to smooth or regulate those expenditures. It is accomplished by placing imposed date constraints for some work packages. Project Performance Reviews (Tools and Techniques of Cost Control) 1.Variance Analysis 2.Trend Analysis 3.Earned Value Technique

Progress Reporting: Rules of: 50/50: Activity is considered 50% complete when it begins, and gets 50% only when its completed 20/80: Activity is considered 20% complete when it begins, and gets 80% only when its completed 0/100: Activity gets no credit for partial completion. It only gets credit only when its full completed EAC Original estimating assumptions were fundamentally flawed, or that they are no longer relevant to a change in conditions. Formula: EAC = AC + ETC. Current variances are seen as atypical and the project management team expectations are that similar variances will not occur in the future. Formula: EAC = AC + BAC EV. When current variances are seen as typical of future variances. Formula: EAC = AC + ((BAC EV)/CPI) Project Cost Management Processes required to ensure that the project is completed within the approved budget. Expected Revenues / Expected Costs. Measure benefits Benefit Cost Ratio (payback) to costs; not just profits. The higher the better (if rating over 1, the benefits are greater than the costs) Internal Rate of Return Interest Rate which makes the PV of costs equal to PV of benefits Number of time periods up to the point where cumulative revenues exceeds cumulative costs. Weakness in this Payback Period approach is the lack of emphasis on the magnitude of the profitability. Does not account for time value of money nor consider value benefits after payback. Cost of choosing one alternative and therefore giving up Opportunity Cost the potential benefits of another alternative: it is the value of the project not selected (lost opportunity). Sunk Cost Expended costs which should be ignored when making decisions about whether to continue investing in a project The point beyond which the marginal addition of Law of Diminishing Returns Straight Line Depreciation resources does not provide a proportional amount of utility. Same amount each time period (e.g. 10 10 10). Types 1. Straight Line 2. Accelerated (1. Double Declining Balance 2. Sum of Years Digits) Separate quantity of time/money for known unknowns. Contingency Reserve Designed to cover specific risk events previously identified and measured in the Risk Management Process. Management Reserve Separate quantity of time/money for unknown unknowns

Working Capital

Current Assets - Current Liabilities Cost reduction tool that considers whether function is

Value Analysis

really necessary and whether it can be provided at a lower cost without degrading performance or quality. Finding the least expensive way to do the scope of work.

Value Estimating Value Engineering Tool

Part of Cost Control Tool for analyzing a design, determining its function, and assessing how to provide those functions cost effectively. At beginning, charge 50% of its BCWS to the account. Charge remaining at completion. Top down; based on similar projects. Represents a form

50-50 Rule

Analogous Estimating

of expert judgment. Gives project team an understanding of managements expectations (part of cost budgeting and cost estimating)

Bottom-up Estimating

Detailed cost estimates of work packages are aggregated. Would provide best overall quality of the estimate. Relies on knowledge of mathematical relationships; measured in $/unit (scalable, quantifiable). It does not

Parametric Estimating

make use of team estimate. (part of cost budgeting and cost estimating). Using a mathematical model to predict the duration of a task (e.g. taking the average duration of all past tasks)

Regression Analysis

Statistical technique graphically represented on scatter diagram Mathematically models the intuitive notion that the more

Learning Curve

times we do something, the faster we will be able to perform

Variable Costs Fixed Costs

Costs rise directly with the size and scope of the project Costs do not change; non-recurring (e.g. project setup costs) Incurred directly by a specific project. The PMI want the

Direct Costs

team to participate in the cost estimates to get their buyin.

Indirect Costs

Part of the overall organization's cost of doing business and are shared by all projects. Usually computed as a

percentage of the direct costs. Represent the basic level at which project performance is Control Account measured and reported. The purpose of cost accounts is to monitor and report on project performance. Cost Change Control Systems Includes the documentation, tracking systems, and approval levels needed to authorize a change. Should be the next steps after an approved cost baseline has changed because of a major change on a project. Amount of money earned: Revenue (direct + indirect costs) Present value method determines the net present value of Discounted cash-flow approach all cash flow by discounting it by the required rate of return. Parametric modeling Involves using project characteristics (parameters) in a mathematical model to predict project costs. Provide a picture of the total cost for the product (project, operations and maintenance). (output to cost control) Process and procedures developed for the closing or canceling of projects

Budget updates

Operating profit

Life-Cycle Cost

Project Closeout

Project QUALITY Management

Knowledge Areas Major Processes desc. Primary Inputs Tools & Techniques Primary Outputs

Quality
Identifying quality requirements and/or standards for the project and product, 1. Scope baseline 2. Stakeholder register 1. Cost-Benefit analysis 2. Cost of quality 1. Quality management plan 2. Quality Metrics 3. Quality Checklists 4. Process Improvement Plan 5. Quality Baseline

3. Cost performance 3. Control Charts 4.Benchmarking

and documenting how baseline

Plan Quality

the project will demonstrate compliance.

4.Schedule baseline 5. Design of 5. Risk register 6. Enterprise environmental factors 7. Organizational Process Assets experiments

6. Statistical sampling 6. Project 7. Flowcharting 8. Proprietary quality management methodologies 9. Additional quality Planning Tools Management Plan (updates)

Auditing the quality

1. Project

1. Plan quality and

1. Organizational

requirements and the management plan results from quality 2. Quality metrics 3. Work performance information

perform quality control process assets tools and techniques 2. Quality audits 3. Process analysis updates 2. Change requests 3. Project management plan updates 4. Project document updates

Perform Quality Assurance

control measurements to ensure appropriate

quality standards and 4. Quality control operational definitions measurements are used Monitoring and recording results of 1. Project management plan 1. Cause and effect diagram 2. Control charts

1. Quality Control Measurements 2. Validated Changes 3. Validated deliverables 4. Organizational process assets

executing the quality 2. Quality Metrics

Perform Quality Control

activities to assess performance and

3. Quality Checklists 3. Flow-charting 4. Work 4. Histogram 5. Pareto chart 6. Run Chart

recommend necessary performance changes measurements

5. Approved Change 7. Scatter diagram Requests

8. Statistical sampling updates

6. Deliverables 7. Organization process assets

9. Inspection 10. Approved change requests review

5. Change requests 6. Project management plan updates 7. Project document updates

Quality: Degree to which the project fulfills requirements. Grade: Category assigned to products or services having the same functional use but different characteristics. Low grade (a limited number of features) - low quality (many bugs)

Precision Consistency that the value of repeated measurements have little scatter. Precise measurements may not be accurate Accurate It correctness of measured value, accurate measurements may not be precise.

Joseph Juran Quality - Fitness of Use Edward Deming Quality Improvement Plan, Do, Check and Act Philip Crosby Quality Conformance to requirements, Advocated Prevention over inspection and Zero defects

Quality Management Creating and following policies and procedures to ensure that a project meets the defined needs it was intended to meet from the customers perspective. Cost of quality - All work to ensure conformance to requirements + nonconformance to requirements. Cost of conformance: (quality training, studies, surveys, efforts to ensure everyone knows the processes to use to complete their work). Cost of non conformance: (Rework, scrap, inventory costs, warranty costs, lost business).

Costs of nonconformance should be lower than the costs of nonconformance. Continuous Improvement (or Kaizen): Kaizen: (Kai: means to alter, Zen: Make better or improve). Continuous Improvement: quality movement. Marginal Analysis Optimal Quality is reached at the point where the increased revenue from improvement equal incremental cost to secure it Quality Management Plan Provides input to the overall project management plan and must address Quality Control, Quality Assurance and continues process improvement for the project. Peer review may not include individuals that worked on the material being reviewed. Gold Plating Giving Customers extras, it is not recommended Quality Matrix Defines what something is and how to measure it. Process improvement Plan Subsidiary of PMP, it details the steps for analyzing processes that will facilitate the identification of waste and non-value added activity, it includes 1. Process boundaries 2.Process configuration 3.Process matrix 4.Targets for improved performance. Quality Control Measurements Results of QC activities that are fed back to QA to reevaluate and

analyze the quality standards and processes for performing organization. Seven Basic Tools of Quality 1.Cause and Effect Diagram 2.Control Charts 3.Flowcharting 4.Histogram 5.Pareto Chart 6.Run Chart 7.Scatter Diagram Design of experiments - is a statistical method that helps identify which factors might influence specific variables Prevention: keeping errors out of the process Inspection: keeping errors out of the hands of the customer Tolerances - (the result is acceptable if it falls within the range specified by the tolerance) and control limits (the process is in control if the result falls within the control limits). Inspections - are variously called reviews, product reviews, audits, and walkthroughs; The process may be changed to provide improvements, but it should not be adjusted when it is in control. Pareto Diagram Histogram, ordered freq of occurrence, take corrective action & 80 prob/20 causes Statistical sampling - Statistical sampling involves choosing part of a population of interest for inspection Trend analysis involves using mathematical techniques to forecast future outcomes based on historical results. Project Quality Management processes required to ensure that the project will satisfy the needs for which it was undertaken. Quality is the conformance to requirements/specifications and to fitness of use. Quality function deployment provide better product definition and product development. Its main feature are to capture the customers requirements, ensure cross functional teamwork, and link the main phases of product development Rework action taken to bring a non-conforming item into compliance. Rework is a frequent cause of project overruns

Quality Variable Quality Attribute

A quality characteristic that is measurable A quality characteristic that is classified as either conforming or nonconforming Comparing practices of other projects. Provides a standard to

Benchmarking

measure performance (time consuming). (e.g. investigating quality standards that other companies are using)

Statistical Analysis

Involves determining the probability of an occurrence Uses mathematical techniques to forecast future outcomes based

Trend Analysis

on historical results; used to measure technical, cost, and schedule performance Structured review of other quality management activities

Quality Audit

performed to identify lessons learned (used for process improvement) Part of Quality Assurance. Provide management confidence that the project will satisfy relevant quality standards.

Inspection

Prevent errors from reaching the customer before delivery to the customer. Can be done throughout product development. A technique to identify which variables have the most influence on overall outcomes (part of Quality Planning) (e.g. analyze the

Design of Experiments

color/size combination that will contribute most to the functionality of the new product). Can be applied to cost and schedule tradeoffs.

Flow chart Attribute Sampling

Help analyze how problems occurs Measures whether or not the results conforms to specifications Are characteristic you want to measure (size, shape, weight,

Variable Sampling

etc). An attribute is what you are measuring. The result is rated on a continuous scale that measures the degree of conformity.

Assignable Causes Specification Limit

Data point on a control chart that requires investigation Shows customers expectations for quality (on a control chart) Help newly assigned project manager determine whether the project is out of control (in order to verify quality level). Can be

Control Chart

used to monitor project management processes such as coscard, schedule variance, volume and frequency of scope changes, and errors in project documents.

Statistical Control Chart

Are used to monitor process variations overtime. Help people understand and control their process work.

1. A data point falls outside of the upper or lower control limit.

Out of Control

2. Non-random points that are still within the upper and lower control limit.

Upper and Lower Control Limit on a Control Chart Specification Limit Pareto Diagram

Acceptable range of variation of a process. [These limits are set based on the companys quality standards. The control limits are determined from data obtained from the process itself.] Fixed by the customer Used to show how results were generated, by type or category of identified cause Made popular Pareto Chart, Cause-and-Effect Diagram and Control Chart Is used to estimate the loss associated with controlling or failing to control process variability. If you select good design

Ishikawa

Taguchi Method

parameters, you can produce products that are more forgiving and tolerant. The tool helps determine the value or break-even point of improving a process to reduce variability.

ISO 9000

Provides a basic set of requirements for a quality system, without specifying the particulars for implementation. Used to verify that a set of required steps has been performed in quality control process Determine if problems are related before planning what to do about them If two events cannot both occur in a single trial (?) Normal process variation (1) Creative way to look at actual causes and potential causes of a problem

Checklists

Statistically Independent Mutually Exclusive Random Cause

Cause and Effect Diagram (Fishbone)

(2) Process of constructing helps stimulate thinking about an issue; helps to organize thoughts; generates discussion (3) Used to explore a wide variety of topics (4) Also known as Ishikawa or Fishbone diagram Refers to potential problems. Although it usually occurs during

Quality Planning

Planning Phase, it can occur during execution if there is a change.

Quality Control

Refers to specific performance of a task (measuring quality and comparing results to the quality plan). Its done throughout the

project Refers to overall quality requirements (standards) (e.g. Quality Assurance evaluating overall project performance regularly). Mostly done during project executing.

Impact of Poor Quality

Increased cost Decreased productivity Increased risk and uncertainty Increased costs in monitoring

Goal of the cost of quality program should be 3 - 5% of total value. Cost of non-quality is estimated to be 12 - 20% of sales. Cost of Quality Includes Prevention Costs (training), Appraisals Costs (inspection/testing) and Internal (scrap, rework)/External (warranty) Failure costs Management is 85% responsible for quality. The team member is ultimately responsible for quality management. The project manager is primarily responsible for quality management. Two components of product availability are reliability and maintainability. To effectively use statistical quality control, the project team should know the differences between special causes and random causes. Sampling and probability are the most important topics to understand in statistical process control. Top management should direct continuous improvement Quality control measurement are records of quality control testing and measurement in a format for comparison and analysis (input to quality assurance). Documentation Quality Management Plan describes method for implementing quality policy project quality system and organizational structures, responsibilities, procedures, processes and resources needed to implement project quality management TQM Total Quality Management Philosophy encourages companies and their employees to focus on finding ways to continuously improve quality of their business practices and products. Process Analysis Lessons learned in first few cases is used to improve the process on the remaining ones. Standard Deviation From 3 point Estimates = (P O)/6 Six Sigma Level of Quality, which is percentage of occurrences to fall between the two control limits. +/- 1 Sigma = 68.26% +/- 2 Sigma = 95.46% +/- 3 Sigma = 99.73% +/- 6 Sigma = 99.9995% Rule of Seven Based on Heuristics, seven random data points grouped together in a series with in control limit. It represents that they are not random and should be investigated.

Project HUMAN RESOURCE Management

Knowledge Areas Major Processes desc. Primary Inputs Tools & Techniques Primary Outputs

Human Resource Management

Identifying and documenting project 1. Activity resource requirements 1. Organization charts 1. Human and position descriptions 2. Networking 3. Organizational theory. Resource Plan

Develop Human

roles, responsibilities 2. Enterprise and required skills, Environmental

Resource Plan reporting relationships Factors

and creating the 3. Organizational staffing management Process Assets plan Confirming human resource availability 1. Project Management Plan 2. Enterprise Environmental Factors 3. Organizational Process Assets Improving the competencies, team 1. Project Staff Assignments

1. Pre-assignment 2. Negotiation 3. Acquisition 4. Virtual teams

1. Project Staff Assignments 2. Resource Calendars 3. Project Management plan updates

Acquire Project Team

and obtaining the team necessary to complete project assignments.

1. Interpersonal skills 1. Team 2. Training 3. Team-building activities 4. Ground rules 5. Co-location 6. Recognition and rewards Performance assessments 2. Enterprise environmental factors updates.

Develop Project Team

interaction and overall 2. Project team environment to Management Plan enhance project performance. 3. Resource Calendars

Tracking team

1. Project Staff

1. Observation and conversation

1. Enterprise environmental

member performance, Assignments providing feedback, 2. Project

2. Project performance factors updates appraisals 3. Conflict management 4. Issue log 2. Organizational process assets updates 3. Change

Manage Project Team

resolving issues, and Management Plan managing changes to 3. Team enhance project performance Performance Assessments 4. Performance

5. Interpersonal Skills requests

Reports 5. Organizational Process Assets

4. Project management plan updates

Constraints Organizational Structure, Collective bargaining agreements, Economic Conditions Organizational Charts Hierarchical, Matrix based and Text Oriented RBS Resource Break Down Structure is a hierarchical chart which shows break down of project by resource types. RBS is helpful in tracking project costs, aligned with organizations accounting system, can contain categories other than human resources. RAM Responsibility Assignment Matrix, can be developed at various levels. RACI (Responsible, Accountable, Consult and Inform) Halo Effect Tendency to rate high or low on all the factors due to the impression of a high or low rating on some specific factor Organizational Theory Provides information regarding the ways that people, teams and organizational units behave. Roles and Responsibilities (O/P of HR planning) Role, Authority, Responsibility and competency SPONSOR TEAM The one who provides the financial resources for the project. If project is being done for an outside customer, it becomes the sponsor. Group of people who will complete work on the project. Team members can change throughout the project as people are added and removed from the project. Anyone who can positively or negatively influence the project, as well as including within the organization (customer users, project manager, team, sponsor, program and portfolio managers, PMO, functional and operations managers) as external sellers that provide services or material for the project Manages and "owns" the resources in a specific department, such as IT, engineering, public relations, or marketing, and generally directs the technical work of individuals from the functional area working on the project Responsible for managing the project to meet project objectives

STAKEHOLDERS FUNCTIONAL MANAGER

PROJECT MANAGER PORTFOLIO Responsible for governance at an executive level of the projects or programs MANAGER that make up a portfolio PROGRAM Responsible for managing a group of related projects. Projects are combined MANAGER into a program to provide coordinated control, support, and guidance Staffing Management Plan (part of the Human Resources Plan) Describes when and how human resource requirements will be met. SMP can be updated because of promotions, retirements, illness, performance issues and changing workloads. SMP contents: 1 Staff acquisition internal or external or contract, same location or different etc. 2 Resource Calendars When are people available?, when will they used. 3 Staff Release Plan When will resources be released and no longer be charged to the project?. 4 Staff Training Needs - What are the needs of training for the resources? 5 Recognition and rewards What are they?, What are the criteria for their use? 6 Compliance With Government regulations 7.Safety What policies protect the resources? Five Stages of Team Building Activities Forming, Storming, Norming, Performing and Adjourning (Tuckman Ladder) Forming Team meets and learns about the project and roles and responsibilities. Begins to address project work, technical decisions, and project management Storming approach. (disagreements as people learn to work together) Team members begin to work together and adjust work habits and behaviors that Norming support the team. Team begins to trust each other.

Team becomes efficient and works effectively together. In this point Project manager pay most attention to developing team members. Adjourning Team completes the work and moves on from the project. Ground Rules: establish clear expectations regarding acceptable behavior by project team members. Performing Kickoff Meeting Indirect Method to start team development. It should answer 1.Why am I here? 2. Who are you and your expectations of me? 3. What is this team going to do? 4. How is the team going to do this work? 5. How do I fit into all this? Lessons Learned from Manage Project Team

Project organization charts, positions and SMP Ground rules, conflict management techniques and recognitions Procedures for Virtual teams, co-location, training and team building Special skills and competencies by team members discovered Issues and solutions

Project Human Resource Management - process required to make the most effective use of the people involved with the project Responsibility Assignment Matrix (RAM) Show who does what (x=person, y=phase). The most important feature of the RAM is the participatory development process involving all stakeholders. Show who is participant, who is accountable, who handles reviews, who provides input and who must sign off on specific work packages or project phases. Linear Responsibility Chart (LRC) identifying responsibility, assignments by work packages and action required. Also referred to as RAM. Organizational Breakdown Structure (OBS) - A depiction of the project organization arranged so as to relate work packages to organization units. Resources Histogram often part of Staffing Management Plan; shows resource usage (eg staff hours) per time period (eg wk, mth) of a specific job function. Rewards and Recognition Systems -- to be effective, must make the link between performance and reward clear, explicit and achievable. Types of Power Legitimate Derived from formal position (Formal) Coercive Predicated on fear Involves positive reinforcement and ability to award something of value Project often Reward needs their own rewards system to affect employee performance. Used correctly, bring the teams goals and objectives in line with each other and with the project. Expert Referent Held in esteem because of special knowledge or skill (requires time) Ability to influence others through charisma, personality, etc.

The best forms of power are generally Reward and Expert

Conflict Management Avoidance /Withdrawal (Ignoring) Competition /Forcing At least one party withdraws from conflict. Cool off period, could be lose/lose Retreating from actual or potential disagreement; delaying (e.g. Just document the problem) Exerting ones viewpoint; a last resort [win/lose] (e.g. Call the customer and demand that you receive the approval today. Bargaining and searching for solutions; neither party wins but each gain some Compromising satisfaction [win-lose/win-lose] this is very rarely a good way to resolve technical issues. Accommodation Opposite of Competition. One party meets other party need at expense of his own. Lose/Win Involves incorporating multiple ideas and viewpoints from people with different Collaborating perspectives and offers a good opportunity to learn from others (good when project is too important to be compromised) Win/Win Best Strategy De-emphasize differences and emphasize commonalities; friendly but avoids solving Smoothing root causes; delaying (eg. Manager says an issue is valid but doesnt think it will be a big problem later) Problem Solving / Confrontation Address conflict directly in problem solving mode [win/win]

6 steps of problem solving: 1. Define what is the real/root problem 2. Analyze the problem 3. Identify solutions 4. Pick a solution 5. Implement a solution 6. Review the solution and confirm that the solution solved the problem Motivational Theory: Content & Process Theories Content: What energizes, directs behavior 1. Maslows Hierarchy of Needs Theory (1. Physiological, 2. Safety, 3. Social/Belonging, 4. Esteem, 5. Self-Actualization) 2. Hertzbergs Motivator/Hygiene Theories (Motivator: Responsibility, Self-Actualization, Esteem, Professional Growth, Recognition. Hygiene: Working Conditions, Salary, Relationship at Work, Social, Safety, Physiological)

Process: How personal factors influence behavior 1. McGregors Theory X and Theory Y (X: Assumes people lack ambition, dislike responsibility, are inherently self-centered and are not very bright; motivate by reward and punishment. Y: Assumes people become lazy w/o recognition, will accept responsibility, can become self-motivated and exercise self-control; motivate by removing obstacles and providing self-directed environment.) 2. Ouchis Theory Z/Japanese Theory ( focus on team, company; usually lifetime employment, collective decision making ) Other Motivational Theories Behaviorism people behavior can be modified through manipulation of rewards and punishments Expectancy Theory Motivation is explained in terms of expectations that people have about (1) their ability to perform effectively on the job, (2) the rewards they might obtain if they do perform effectively and (3) the value or degree of satisfaction they anticipate from those rewards. MBO More support to team, not more power (remain to PM) Leadership Theories: McGregor Theory X (employee lack ambition) and Theory Y (org structure are responsible for motivation) Tannenabaum-Schmidt model Continuum of leadership styles between the autocratic and participative styles Blake and Mouton ref to managerial grid (Concern for People Vs Concern for Production), whereas 1,1 is laissez faire mgmnt, 1,9 is Country Club mgmnt, 9,1 is Task oriented mgmnt, 5,5 is Compromise mgmnt and 9,9 is team mgmnt. Forms of Organization Groups people by specialization. Project manager has no formal authority of resources and Functional must rely on informal power structure and his own interpersonal skills to obtain resource commitments from functional managers. Project Expeditor Project Retains functional but adds a Project Expeditor who serves as a communications link and coordinator for the project across functional units Similar to Project Expeditor except the Coordinator reports to a higher level manager and has

Coordinator some authority to assign work Vertical functional lines of authority maintained with a relatively permanent horizontal Weak Matrix structure containing managers for various projects. Balance of power leans toward the Functional Manager. Can cause a project to fall behind because functional managers are pulling resources away to perform non-project related tasks. The Project Manager may be able to make resource decision on his own but not technical decision. Strong Same as Weak except that the balance of power leans towards the Project Manager

Matrix Projectized A separate, vertical structure is established for each project. All the project team members report directly and solely to the project manager.

Team building is most difficult in a matrix organization. Its main purpose is to improve team performance Team development is based on the individual development of each member Issue Log: Written log document that helps monitor who is responsible for resolving specific issued by a target date. It can have: (number, issue, date added, raised by, person assigned, resolution due date, status, date resolved, Resolution). Leadership Styles Autocratic Consultive Consensus Shareholder PM makes decision without soliciting information from team Intensive information solicited; PM makes decision Team makes decision; open discussion and information gathering by team Little or no information exchange; team has ultimate authority for final decision

Roles of Project Manager Functions of the Project Manager Integrator Communicator Team Leader Decision Maker Climate Creator/Builder Documentation Staffing Management Plan describes when resources will be brought into and taken off the project. Employee Record Update as part of closure, the project manager should update employees record with the new skills acquired. Resource calendar identifies period when work is allowed. Performance Appraisals/Assessment Project Manager will collect information from team members supervisors when project performance appraisals are completed. Team Performance assessment is done by the PM in order to evaluate and improve the effectiveness of team. Conflicts in Order of Frequency 1. Schedule 2. Project Priorities 3. Resources 4. Technical Opinions 5. Administrative Procedures 6. Cost 7. Personality Planning Organizing Leading Controlling

Arbitration The hearing and resolution of a dispute performed by a neutral party Perquisites Giving Special rewards Fringe Benefits Standard benefits given to all employees

Project COMMUNICATION Management

Knowledge Areas Major Processes desc. Primary Inputs Tools & Techniques Primary Outputs

Project Communication Management

Identifying all people 1. Project Charter or organizations impacted by the 2. Procurement Documents 3. Enterprise 1. Stakeholder Analysis 1. Stakeholder Register

2. Expert Judgment 2. Stakeholder Management Strategy

Identify Stakeholders

project, and

documenting relevant Environmental Factors information regarding 4. Organizational their interests, involvement, and impact on project success Determining the project stakeholder information needs 1. Stakeholder Register 2. Stakeholder Process Assets

1. Communications 1. Communications requirements analysis management plan 2. Project Document

Plan

and defining a

Management Strategy 2. Communications Updates 3. Enterprise Technology

Communications communication
approach

Environmental Factors 3. Communication 4. Organizational Process Assets models 4. Communication Methods

Making relevant

1. Project

1. Communication methods 2. Information distribution tools

1. Organizational Process Assets updates

information available management plan

Distribute Information

to project stakeholders as planned

2. Performance Reports 3. Organizational Process Assets

Communicating and working with

1. Stakeholder Register

1. Communications 1. Organizational Methods 2. Interpersonal Process Assets updates 2. Change Requests 3. Project management plan

Manage Stakeholder Expectations

stakeholders to meet 2. Stakeholder their needs and

management strategy skills 3. Management skills

addressing issues as 3. Project they occur. management plan

4. Issue Log 5. Change Log 6. Organizational Process Assets Collecting and distributing performance

updates 4. Project document updates

1. Project Management 1. Variance Analysis 1. Performance Plan 2. Work Performance 2. Forecasting Methods 3. Communication Methods 4. Reporting systems reports 2. Organizational Process Assets updates 3. Changes Requests

Report Performance

information, including Information Status reports, progress measurement and forecasts 3. Work Performance Measurements 4. Budget forecasts 5. Approved Change requests 6. Organizational Process Updates

Stakeholders: Identify all of them -> Determine all of their requirements-> Determine their expectations-> determine their interests-> Determine their level of influence-> plan how you will communicate with them-> Communicate with them-> Manage their expectations and influence. Classification of Stakeholders: Power/interest, Power/influence, Influence/Impact, Salience model Stakeholder Register: Contains all the information about stakeholders. It can contain (Ex: Excel spreadsheet): Name, title, supervisor, project role, contact information, requirements and expectations, impact and influence, attitude about the project, among other data. Stakeholder Management Strategy: Manage them either individually or grouping them, according with requirements, expectations, interests, level of influence, etc. Stakeholder Management Matrix. Contains Name, S.H interest in project, assessment of impact, Potential strategies (gaining support or reducing obstacles). Plan Communications determining the information and communications needs of the stakeholders: who needs what information, when they will need it, and how it will be given to them. It is often tightly linked with enterprise environmental factors and organizational influences. Art of Communications Includes Sender-receiver Models, Choice of Media, Writing Style, Presentation techniques and Meeting Management Techniques. Project Communications Management - process required to ensure proper collection and dissemination of project information. Communications Technology (Tools and Technique of Communication planning) factors that affect the project include Urgency of the need for information, Availability of technology, Expected Project Staffing, Length of the Project and Project Environment Communication Management Plan(CMP) Contains stakeholder communication requirements, information format, content, detail level, person responsible, methods or technologies, frequency of communication, methods for CMP updates, escalation process & Glossary of common terms. Also can include

templates for project status meetings, team meetings, website of the project. Performance reporting Generally on Scope, Quality, Schedule and Cost. But may include information on Risk and Procurement. Team Meetings periodic team meetings is the most effective way to accelerate the project integration process. Performance Reviews meetings held to assess status and/or progress. Communications Model Communicator Message Medium The originator of the message Thoughts, feelings, or ideas reduced to "code" that is understood by both sender and receiver The vehicle or method used to convey the message

Recipient The person for whom the message is intended Sender is responsible for making the information clear and complete, so that the receiver can receive it correctly, and for confirming that it is properly understood. Receiver is responsible for making sure that the information is received in its entirety, understood correctly, and acknowledged. Communication Channels = [n(n-1)]/2 Communication Methods: Interactive: Two or more parties (meetings, phone calls, video conferencing). Push: Specific Recipients (letters, memos, e-mails, reports, etc.) Pull: For very large audiences (intranet sites, e-learning, knowledge repositories, etc). Tight Matrix - all team members allocated in a single office space A variance is considered to be significant if it jeopardizes project objectives The purpose of project plan development is to create a document to guide project execution and control The output of project plan execution consists of work results and change requests. Types of Communications Project Charter, Management Plan (this is the best type of communication method to Formal Written use when there are cultural differences and distance between team members) Informal Written Formal Verbal Informal Verbal Notes, memos, e-mails Presentations ,speeches Meetings, Conversations

Note: 55% of communications is non-verbal (it is the most important aspect of a conversation) 90% of Project Manager's time is spent acquiring and communicating information Objectives of a Kickoff Meeting

Get to know each other Set team goals and objectives Review project status Review project plans Identify problem areas Establish responsibilities and accountabilities

Obtain commitments

Barriers to Communications (which lead to conflict)

Lack of clear communication channels Physical or temporal distance Difficulties with technical language Distracting environmental factors Detrimental attitudes

Building Effective Team Communications

Be an effective communicator Be a communications expeditor Avoid communication blockers Use a "tight matrix" (single office space) Make meetings effective (meeting during execution is the best format to communicate)

Management Styles Authoritarian Lets individuals know what is expected of them Combative Conciliatory Disruptive Ethical Facilitating Intimidating Judicial Promotional Secretive Management Skills Leading Communicating Negotiating Problem Solving Influencing the Eager to fight or be disagreeable over any situation Friendly and agreeable Tends to disrupt unity and cause disorder Honest and sincere Does not interfere with day-to-day tasks, but is available for help and guidance when needed Reprimands employees for the sake of a "tough guy" image Applies sound judgment Cultivates team spirit; rewards good work; encourages subordinates to realize their full potential Not open or outgoing in speech, activity, or purpose Establishing direction, aligning people, and motivating and inspiring The exchange of information in a variety of dimensions Conferring with others in order to come to terms or reach an agreement A combination of problem definition and decision making The ability to get things done based on an understanding or the formal and informal

Organization

structures of the organization

Manage Stakeholder Expectations: (P.M. is responsible for this). Address stakeholders concerns, and resolve issues as: Actively managing S.H. expectations to increase acceptation of project, influencing their desires Addressing concerns not becoming into issues yet. Anticipation to future problems Clarifying and resolving issues that have been identified.

Documentation the prevailing measurement of what information to accumulate and communicate on a project is that it contributes to its success. Progress Report - summarize project status. Preferred report to quickly review where a project now stands. Trend Report show performance over time (shows if it is improving or deteriorating) Variance Report compare project results, looks at specific project items or tasks Forecasting Report only looks into the future Status Report relating a moment in time (static) Earned Value Report integrates scope, cost and schedule measures according with EV. Lessons Learned Documentation A way of reports performance as lessons learned Project Plan Staffing Management Plan Communications Management Plan - should cover all phases of the Performance reports provide info on schedule performance, thereby alerting the team to problems that may arise in the future. Lessons Learned One should not wait till the Project is over, they might be sent out as they are created. LL are created by Stake Holders, PM Team, PM, Sellers and Customers Communication in Contract Everything we do is more formal in contract environment. Change log logs changes that occur during a project, having impact on time, cost and risk. It should be communicates to the appropriate S.H.

Project RISK Management

Knowledge Areas Major Processes desc.
Deciding how to conduct risk management activities for a project.

Primary Inputs Tools & Techniques

1. Project Scope 1. Planning meetings Statement and analysis 2. Cost Management Plan 3. Schedule Management Plan 4. Communications Management Plan 5. Enterprise Environmental Factors 6. Organizational Process Assets 1.Risk management 1. Documentation plan 2. Activity Cost Estimates 3. Activity duration estimates reviews 2. Information gathering techniques 3. Checklist analysis 4. Assumptions analysis 5. Diagramming techniques 6. SWOT analysis

Primary Outputs
1. Risk management plan

Plan Risk Management

Determining which risks may affect the project & documenting their characteristics

1.Risk Register

Identify Risks

4. Scope baseline 5. Stakeholder register

6. Cost Management 7. Expert Judgment Plan 7. Schedule Management Plan 8. Quality management Plan 9. Project Documents 10. Enterprise Environmental Factors 11. Organizational Process Assets Prioritizing risks for further analysis or action by assessing 1. Risk Register 1. Risk probability & 1.Risk Register Updates

2. Risk Management impact assessment Plan 3. Project Scope 2. Probability and Statement impact matrix

Perform

and combining their

Qualitative Risk probability or Analysis

occurrence and impact.

4. Organizational Process Assets

3. Risk data quality assessment 4. Risk Categorization 5. Risk urgency assessment 6. Expert Judgment

A process that

1. Risk Register

1. Data Gathering and

1. Risk Register Updates

analyzes numerically 2. Risk Management representation the effect of identified Plan techniques

risk on overall project 3. Cost Management (Interviewing,

Perform Quantitative Risk Analysis

objectives

Plan 4. Schedule Management Plan 5. Organizational Process Assets

probability distribution and EJ) 2. Quantitative Risk analysis & modeling techniques. (Sensitivity, EMV, Decision Tree) 3. Expert Judgment

Developing options & 1. Risk Register actions to enhance

1. Strategies for

1. Risk Register

2. Risk Management negative risk or threats Updates Plan 2. Strategies for positive 2. Risk-related risk or opportunities contract

Plan Risk Responses

opportunities to reduce threats to project objectives

3. Contingent response decisions strategies 4. Expert Judgment 3. Project Management Plan Updates 4. Project Document Updates

Implementing risk response plans,

1. Risk Register 2. Project Management Plan

1. Risk reassessment 2. Risk audits 3. Variance and trend

1. Risk Register Updates 2. Organizational process assets Updates 3. Change Requests

Monitoring & Control Risks

tracking identified risk, monitoring residual risks,

3. Work Performance analysis Information 4. Technical performance measurement

identifying new risks, 4. Performance and evaluating risk Reports

process effectiveness in the entire project.

5. Reserve analysis 6. Status Meetings

4. Project Management Plan Updates 5. Project Document Updates

Project risk - Is an uncertain event or condition that, if it occurs, has a positive or a negative effect on a project objective. A risk has a cause and, if it occurs, a consequence. Risk identification is an iterative process. (Just like core process) Up to 90% of threats that are identified and investigated in Risk Management Process can be eliminated. Risk Types 1. Business (Gain or Loss) 2. Pure Risk (Only Risk of Loss) Planning meetings - Attendees - project manager, the project team leaders, anyone in the organization with responsibility to manage the risk planning and execution activities, key stakeholders, Qualitative Risk Analysis Prioritizing risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact. Probability and Impact Matrix: Risks are prioritized and sorted according with potential implications for having an effect. Probability and impact can be measured as: from 1 to 10, high med, low, etc.). Quantitative Risk Analysis Numerically analyzing the effect on overall project objectives of identified risks. Attitude about Risk Should be made explicit, Communication about risk should be honest and open. Risk response reflects organizations perceived balance between risk taking and risk avoidance. Someone who does not want to take risks is said to be Risk Averse. Tolerance and Threshold Tolerances: are areas of risk that are acceptable or unacceptable. Threshold: is the amount of risk that is acceptable Risk Management Plan Describes how Risk Management will be structured and performed, it includes 1. Methodology (Approach, tools and data sources) 2. Budgeting (Resource and Cost Estimate) 3. Timing (When and how often) 4. Risk Categories (RBS, Good practice is to review risk categories during RMP prior to Risk Identification Process) 5. Definition of Risk Probability and Impact (Used for Qualitative Risk Analysis, Quality & credibility important) 6. Probability and Impact Matrix (Look up table, with impact categorized as Low, Moderate or High) 7. Revised Stakeholders tolerances

8. Reporting Formats (Describes Risk Register Contents and format) 9.Tracking (Auditing and Documentation for LL) Information Gathering Techniques (I/P for Risk Identification) 1.Brainstorming 2.Delphi Technique 3.Interviewing 4.Root cause analysis 4.SWOT analysis Check List Analysis (I/P for Risk Identification) Can be based on Historical information of previous similar projects, the lowest level of RBS can also be used as Risk Checklist. Quantitative Risk Analysis 1. Data Gathering and Representation Technique 1. Interviewing 2.Probability Distributions (Beta Distribution and Triangular Distribution) 2. Quantitative Risk Analysis and Modeling Techniques 1. Sensitivity Analysis Determine which risks have most potential impact, Tornado Diagram. 2. Expected Monetary Value Opportunity expressed as Positive, Risk expressed as negative. Modeling and Simulation is recommended for Cost & Schedule Risk analysis because they are more powerful and less subject to misuse than EMV analysis. 3. Decision tree analysis Shows available choices and their possibilities 4. Modeling and Simulation Done using Monte Carlo Technique. Cost Risk Analysis use CBS or WBS. Schedule Risk analysis use PDM. Plan Risk responses Responses may include: For each top risk: 1. Eliminate threats before they happen 2. Make sure the opportunities happen 3. Decrease probability and/or impact of threats and/or increase probability of opportunities. For residual risks that cannot be eliminated: 1. Do something if the risk happens (contingency plans) 2. Do something if contingency plans are not effective (fallback plans) PM must communicate risks to management, stakeholders and sponsor. Strategy for Positive Risk or Opportunities - SEE Share, Exploit, Enhance Strategy for Negative Risk or Threats ATM Avoid, Transfer, Mitigate Strategy for Both Acceptance Residual Risks Risks that are expected to remain after planned responses have been taken, as well as those have been deliberately accepted. Secondary Risks Risks that arise as a direct outcome of implementing a risk response. Recommended Corrective Actions For Risk monitor and Control include Contingency plans and Workaround Plans -> Workaround Plans are not initially planned but are required to deal with emerging risks that were previously unidentified or accepted. Risk database - A repository that provides for collection, maintenance, and analysis of data gathered and used in the risk management processes. Use of this database will assist risk management throughout the organization and, over time, form the basis of a risk lessons learned program. Risk Register 1. List of Identified Risks (including root causes and assumptions) 2. List of Potential Responses

3. Root causes of Risks 4. Updated Risk Categories (RBS which is developed in RMP is enhanced or amended)

Updates after Risk Response Planning 1. Identified Risks, their descriptions, areas of the project and how they affect project objectives 2. Risk owners and their responsibilities 3. Agreed upon response strategies 4. Symptoms and warning signs of risks occurrence 5. Budget and Schedule activities required to implement the chosen responses 6. Contingency reserves of Time and Cost. Contingency Triggers. 7. Fallback plan 8. Residual and Secondary Risks Updates after Qualitative Risk Analysis (Included in risk register updates) 5. Relative Ranking or Priority list of Project Risks 6. Risks grouped by categories 7. List of Risk requiring Response in the near term 8. Watch list of low priority risks 9. Trends in Relative Risk analysis results

Updates after Quantitative Risk Analysis 10. Probabilistic Analysis of the project 11. Probability of Achieving Cost and Time Objective 12. Prioritized List of Quantified Risks 13.Trends in Quantitative Risk Analysis Results

Project Risk Management processes concerned with identifying, analyzing, and responding to uncertainty. The most likely cause of poor risk management is lack of prioritized list of risks.

Project PROCUREMENT Management

Knowledge Areas Major Processes desc. Documenting project purchasing decisions coming from project needs to be met by acquiring products or services, approach, and identifying potential sellers. Primary Inputs Tools & Techniques Primary Outputs

Plan Procurements

1. Scope Baseline 1. Make-or-buy 2. Requirements analysis Documentation 2. Expert judgment 3. Teaming Agreements 3. Contract types 4. Risk Register 5. Risk-related contract decisions 6. Activity resource Requirements 7. Project Schedule 8. Activity Cost Estimates 9. Cost performance baseline 10. Enterprise Environmental Factors 11. Organizational Process Assets 1. Procurement management plan 1. Bidder Conferences 2. Proposal evaluation Techniques 3. Independent Estimates 4. Expert Judgment 5. Advertising 6. Internet Search 7. Procurement

1. Procurement mgmt plan 2. Procurement Statements of Work 3. Make-or-Buy Decisions 4. Procurement Documents 5. Source Selection Criteria 4. Change Requests

Process of obtaining seller responses,

1. Selected Sellers 2. Procurement Contract Award 3. Resource Calendars 4. Change Requests 5. Project Management Plan Updates 6. Project Document Updates

Conduct

selecting a seller and 2. Procurement

Procurements awarding a contract. Documents

3. Source selection Criteria 4. Qualified seller List 5. Seller Proposals 6. Project Documents 7. Make-or-buy decisions

8. Teaming Agreements Negotiations 9. Organizational Process Assets Managing 1. Procurement Documents 1. Contract Change Control System

1. Procurement Documentation 2. Organizational

Administer

procurement

Procurements relationships,
monitoring contract performance, and

2. Project Management 2. Procurement Plan 3. Contract

Performance reviews Process Assets 3. Inspections and Updates 3. Change Requests 4. Project

making changes and 4. Performance Reports audits corrections as needed. 5. Approved Change Requests 4. Performance reporting

6. Work Performance Information

5. Payment systems management plan 6. Claims administration 7. Records management System Updates

Completing each project document.

1. Procurement management Plan 2. Procurement Documentation

1. Procurement audits 2. Negotiated Settlements 3. Records Management System

1. Closed Procurement 2. Organizational process assets Updates

Close Procurements

Project Management Team Is responsible to help tailor the contract to the specific needs of the Project. Project Managers Role in Procurement P.M. should understand: 1)procurement process, 2)Contract terms and conditions, 3)Contract contains all the scope, 4) incorporate identified risks to contract, 5)fit contracts schedule into project schedule, 6)be involved during contract negotiations, 7)protect integrity of project by beans of making sure procurement process smooth, 8)help making sure contract is done, 9)Dont ask for something that is not included in contract w/o making change to it, 9)Work with Procurement Manager to manage changes to contract. Costs - Direct costs are costs incurred for the exclusive benefit of the project (e.g., salaries of full-time project staff). Indirect costs, also called overhead costs, are costs allocated to the project by the performing organization as a cost of doing business (e.g., salaries of corporate executives). Procurement Documents Common names for different types of procurement documents include: Invitation for Bid (IFB), Request for Proposal (RFP), Request for Quotation (RFQ), tender notice, Invitation for Negotiation, and Contractor Initial Response. Procurement documents are rigorous enough to ensure consistent, comparable responses but flexible enough to allow seller suggestions for better ways to satisfy the requirements. Seller is allowed to propose alternative solution in a separate proposal. It has 1. Information for sellers 2. Contract SOW 3. Proposed terms and conditions of the contract (Legal & Business) Proposal - technical approach, Bid, Tender and quotation price Procurement Management Plan Describes how procurement will be managed till contract closure. It includes Type Of contract, who prepares independent estimates, standardized procurement documents, Constraints and assumptions, identifying seller list etc. Contract SOW Developed from Scope Baseline (Scope Statement, WBS and WBS Dictionary) describes procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing it. Contract SOW Types 1. Performance (it has to be ) 2. Functional (it has to have) 3. Design (according with a design or drawing). IT, High-tech, R & D or Projects never done before Performance & Functional Construction, Equipment or Purchase - Design Bidder Conferences Also called, as Contactor Conferences, Vendor Conferences and Pre-Bid Conferences are meetings with prospective sellers prior to preparation of bid or proposal, ensures clear and common understanding of procurement needs. Procurement Document Package Buyer prepared formal request sent to each seller and is the basis upon which a seller prepares a bid for the requested products, service or result. Procurement Documents 1. Request For Proposal/Tender (RFP, RFT ) Requests for Price and Detailed Proposal 2. Invitation for Bid/Request for Bid (IFB, RFB) One Price

3. Request for Quotation Price Quote per item Weighting System Allows the buyers evaluation to select a seller by weighting the source selection criteria according with evaluation criteria. Independent Estimates buyer compares the sellers proposed cost with an estimate in-house created, or outside assistance. Screening System eliminates sellers who do not meet minimum requirements of source selection criteria. Past Performance History buyer may consider past history of seller to award the procurement to. Negotiation Tactics there are the following: Attacks Personal Insults Good Guy/Bad Guy Deadline Lying Limited Authority Missing Man Fair and Reasonable Delay Extreme Demands Withdrawal Fait Accompli (done deal) Main Items to Negotiate: 1)Scope, 2)Schedule, 3)Price Items Needed to have a Legal Contract: An Offer, Acceptance, Consideration, Legal Capacity, Legal Purpose Contract Subjects covered include Responsibilities, authorities, law and terms, technical and management approaches, financing, schedule, payments and price. Contract negotiations conclude with a document that can be signed by both buyer and seller, that is contract. The final contract can be a revised offer by the seller or counter offer by the buyer. Contract Administration Ensures the seller meets the performance requirements of the contract. Because of legal considerations many organizations treat contract administration as a separate administrative function from the project organization. Contract administration includes application of the appropriate project management processes to the contractual relationships(s) and integration of the outputs from these processes into overall management of the project. Payment System Usually handled by accounts payable system of the buyer. It includes reviews & approvals by PM team. Claims Administration Contested Charges (claims, Disputes or appeals) are those where buyer and seller cannot agree. If both parties do not resolve a claim it is handled according to the resolution procedures established in the contract. Contract clauses can involve arbitration or litigation and can be invoked prior or after contract closure. Records Management System Set of procedures and automation tools that are consolidated as part of PMIS to manage contract documentation and records. Organization Process Assets (After Contract Administration) 1. Correspondence In addition to documentation, it is a record of all the written and oral communication. 2. Payment Schedules and Requests

3. Seller Performance evaluation documentation PMP updates Procurement Management Plan and Contract Management Plan. Procurement Audit Review of procurement processes from Plan purchases to Contract administration. Aims to identify successes and failures. Contract administration also has a financial management component. Payment terms should be defined within the contract and must involve a specific linkage between seller progress made and seller compensation paid. Contract closeout is similar to administrative closure in that it involves both product verification (Was all work completed correctly and satisfactorily?) Administrative closeout (updating of records to reflect final results and archiving of such information for future use). Contract file. A complete set of indexed records should be prepared for inclusion with the final project records Administrative Closure (Internal)generating, gathering, and disseminating information to formalize a phase or project completion Contract Closeoutcompletion and settlement of the contract, including resolution of any open items. (External ) Project Procurement Management - the processes required to acquire goods and services from outside the performing organization. Make-or-Buy Decision it is generally better to do the work yourself if : 1) you have and idle plant or workforce, 2) you want to retain control, and 3)by using an outside company means you have to turn over highly confidential proprietary data to other company.

Contract Types Fixed Price (FP) Firm Fixed Price (FFP) or Lump Sum. Fixed Price Plus Incentive Fee (FPIF) Fixed Price Award Fee (FPAF) Fixed Price Economic Price Adjustment (FPEPA)

1. Fixed Price 2.Time & Material 3. Cost-Reimbursable Reasonably definite specifications (e.g. SOW). Shift risk to seller. Good when deliverable is not a core competency. Fixed Price (FP) is the most common type of contract in the world. High-value projects involving long performance periods bonus to the seller based on performance (e.g. 100K + 10K for every designated incremental quality level reached. Allow Price increase if the contract is for multiple years A form of contract that is normally unilateral and used for simple commodity purchases. It is simplest type of fixed price contract and is usually unilateral(Signed by one party instead of bilateral)

Purchase Order

Time & Material (T&M) or Unit Price

Good if the buyer wants to be in full control and/or the scope is unclear/not detailed or work has to start quickly. Profit factor into the hourly rate. The buyer pays the actual incurred costs plus a margin to the seller. appropriate when there's a high level of uncertainty in what will be required to provide the contracted product, service, or result

Cost Reimbursable (CR)

Cost Plus Fixed Fee (CPFF)

Used for research and development contracts (which generally have low level of detail in the scope); fixed fee can change if there is a change to the contract (usually through change orders). The risk rests with the buyer. This is the most common cost reimbursable contract.

Cost Plus Incentive Fee (CPIF)

Buyer and seller share in savings based on predetermined %s; long performance periods and substantial development and test requirements (incentive to the vendor to perform on or ahead of time) No valid for federal contracts buyer pays all costs and a base fee plus and award amount (bouns) based on performance.

Cost Plus Percentage of Cost (CPPC) Cost Plus Award Fee (CPAF)

FIXED PRICE Overall Risk Pros

Buyer Less 1. Easiest to manage 2. Easier to budget for since expense is known. 1. Requires explicit statement of work. 2. If market or labor prices decrease, buyers cost doesnt decrease.

Seller More 1. Easier to budget income for since it is known. 1. Requires rigorous oversight of expenses and labor. 2. Requires strict contract change management and control procedures. 3. If market or labor prices increase, sellers price cant be increased.

Cons

COST REIMBURSABLE Overall Risk Pros

Buyer More 1. Usually allows for more flexibility in how objectives are met. 2. More adaptable to changing market conditions. 1. The seller may have few incentives to keep costs low. 2. More difficult to accurately budget for. 3. Requires more rigorous management of the contract. 4. Rigorous internal change control needed so that scope creep doesnt result in unplanned seller costs.

Seller Less 1. Less rigorous change control. 2. A well-managed cost-reimbursable contract may result better buyer-seller partnership on future needs. 1. A high level of transparency is needed with the buyer on costs. 2. Requires regular communication with the buyer, especially on cost variances or trends that show increases.

Cons

TIME & MATERIAL Overall Risk Pros

Buyer More 1. More transparency than other contracts in the sellers effort expended since bills are usually itemized. 2. The buyer may have insufficient input into the skill and experience level of the contractors, resulting in them spending more hours than is necessary to complete the objectives. 2. Difficult to accurately budget for in the project. 3. Milestones and objectives need to be managed closely

Seller Less 1. Less rigorous change control. 2. A well-managed T&M contract may result better buyer-seller partnership on future needs. 1. Requires regular and thorough communication to the buyer on progress.

Cons

Elements of a Contract Offer Acceptance Consideration Legal Capacity Legal Purpose Assent to certain terms by both parties Agreement, written or spoken Something of value Able to contract No violation of public policy

Constructive Change. A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract.

PROFESSIONAL and SOCIAL Responsibility

PMIsms (Rita Mulcahy) Dont get involved with PMI to promote your own business PMI duty & loyalty with always the best interest of PMI in mind Fairness in contracting/RFP actions avoid conflicts of interest You will always promote PMI/PMP within the organization You will not allow cheating on PMP applications You will not let anyone copy PMP exam prep materials You will not disclose questions on the PMP exam

Responsibility Ownership of Decisions and Actions.

Responsibility is our duty to take ownership for the decisions we make or fail to make, the actions we take or fail to take, and the consequences that result Make decisions based on the best interests of the company, rather than your own interest. Put the projects needs before your own Only accept assignments you are qualified to complete. Let others know your skill limitations as required Protect proprietary information and copyright information o Get owners permission before use o Understand licensing and copyright laws Report unethical behavior and violations to responsible parties Keep your word and admit fault when warranted Uphold laws and report violations immediately Report PMIs Code of Ethics and Professional Conduct violations if factual proof exists. Challenge and report any retaliation dont turn a blind eye.

Respect - Appropriate Treatment of People and Resources.

Respect is our duty to show a high regard for ourselves, others, and the resources entrusted to us. Resources entrusted to us may include people, money, reputation, the safety of others, and natural or environmental resources. Maintain an attitude of mutual cooperation. Respect project team members, resource managers, and stakeholders they have a process to follow as well Respect cultural differences (both foreign and domestic) Engage in good faith negotiations Be direct in dealing with conflict by addressing it directly and openly see Human Resource Management chapter Do not use your power or position to influence other for your own benefit Respect others, dont gossip or damage co-workers reputations Use clear communication to the appropriate people in the correct format see Communication Management chapter

FairnessBeing Objective and Making Impartial Decisions

Fairness is our duty to make decisions and act impartially and objectively. Our conduct must be free from competing self-interest, prejudice, and favoritism. Act impartially without bribery o Watch out for fee and payments to foreign officials o Ask the following questions. Can business be conducted without the questionable practice? Is it a clear violation of a fundamental international right? Continuously look for conflicts of interest and disclose them

Do not discriminate against others Do not use your position for personal or business gain Honor your duty of loyalty to affiliated companies and organizations

HonestyUnderstanding the truth and taking action based on truth

Honesty is our duty to understand the truth and act in a truthful manner both in our communications and in our conduct. Try to understand the truth. Less experienced PMs may not know the entire story Be truthful in all communication, and create an environment where others tell the truth. The consequences of being untruthful are less accurate information from others and poor cooperation

Do not deceive others. If the PM is dishonest, then the project team will be as well