PMP SLD 5th Ed

Initiating Planning Executing Monitoring & Closing
Controlling
PMP Certification Course Outline

(I) Becoming a PMP
(II) Project Management Framework

o Project Management Processes for a Project
o Project Management Context
(III) Project Management Environment
o Project Phases and Project Life Cycle
o Organizational Structure Influences on Projects
(IV) PM Knowledge / Management Area
1. Manage Project Scope 6. Manage Project Quality

2. Manage Project Time 7. Manage Project Risks
3. Manage Project Human Resources 8. Manage Project Communications
Copyright PMCTQuest 2014

4. Manage Project Procurement 9. Manage Project Stakeholder
5. Manage Project Cost 10. Manage Project Integration
(V) Professional and Social Responsibility

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2003-2014 PMCTQuest. All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means without written consent of PMCTQuest
PMI, PMBOK, PMP, CAPM, PMI-RMP, PMI-SP, PMI-ACP, PgMP, OMP3 and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
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(I) Becoming a PMP Course Objectives

Participants will review the Project Management Institute's (PMI), Project
Management Body Of Knowledge (PMBOK Guide), 5th Edition.
Participants will be able to prepare to take the PMP exam, complete the
application forms, and learn how to communicate with PMI
Participants will know how to visualize the Ten Management Knowledge Areas
and relate them to the Five Process Groups as per the PMBOK Guide 5th
Edition
Participants will develop a strategy towards conducting the PMP exam by
learning the structure and type of questions of the exam
Participants will learn the tips, tricks, tools and the techniques in order to easily
and quickly solve the questions
Participants will become familiar with PMBOK Guide project management
terms, concepts, theories, methods, approaches and formulas

Participants will practice on the exam simulated questions to eliminate the
anxiety of taking the exam, and learn how questions are analyzed and what
topics are required to know
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(I) Becoming a PMP Why PMP Certification?

Demonstrates proof of professional achievement.
Increases Marketability and greater earning potential.
Provides Greater opportunity for advancement and development.
Builds self-esteem and trust.
Raises Customer Confidence.
Gains professional credential and recognition.
Delivers broader responsibilities and assignments.
Exposes to wide area of skills and knowledge.

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(I) Becoming a PMP What is the PMP Exam Like?

Situational Questions:
Requires relying on knowledge, real-world experience and judgment in order to answer correctly.
Conceptual Understanding:
Must apply concepts to a new situation by using more than simple memorization.
Memorization Questions:
Short and direct questions that can be answered in less than 20 seconds.
Double-Reverse Logic Questions:
Ask about a topic using reverse or double-reverse logic. Generally, one has to select the exception.
from the four possible options.
Story Problem Questions:
Can take several minutes (2-5 minutes) to process. To identify what information presented is very
essential and needed to answer the question.
Use the Pencil Questions:

Require to perform simple calculations and/or draw simple diagrams to select the correct answer.
Non-PMBOK Guide Questions:
Around 60% of the exam questions come directly from the PMBOK Guide. The others originate from
other reference materials, subjects related to project management, and real-world situations.
No Answer Questions: Questions with doubts.
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(II) Project Management Framework Project and Project Management

OPERATION PROJECT
Continuous & On-going Temporary Endeavor
Repetitive Unique
On Going Results Product, Service, Plan
Indefinite Defined Time Scale
Operational Budget (OPEX) Limited Budget & Resources (CAPEX)
Daily Improvements Major Change
Process Driven Results Driven
Sustain Business Continuity Achieve Strategic Plan
g e
Day-to-Day Activities is very necessary
han
for business success but not sufficient C
isk
R Sustain
Business

Market Demands Continuity
BUSINESS Management PROJECT Management
Organizational Needs
Customer Requests
Evolution

Technical Advancement
Legal Requirements R-evolution
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(II) Project Management Framework Project and Project Management (Contd)

Why Project Management?
Ensures that customer requirements are met.
Eliminates reinventing the wheel by standardizing routine project work.
Reduces the number of tasks that could be overlooked during the projects.
Eliminates duplication of efforts.
Addresses the rapid development of Third World and closed economies.
Ensures that projects are in control.
Maximizes the use of resources.
What is Project Management?

Project Management is the application of knowledge, skills, tools and techniques to
project activities to meet project requirements.
Project Management is accomplished through the use of processes of Initiating, Planning,
Executing, Monitoring & Controlling, and Closing.
Project Management Processes are Iterative.

Project Characteristics: Progressive Elaboration Developing in steps, and continuing
by increments. This occurs in many project management processes and adds more details
to the project and enables better control.
Program and Projects: Group of projects managed in a coordinated way to obtain
benefits not available by managing it individually.
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(II) Project Management Framework Areas of Expertise

1. The Project Management Body of Knowledge (PMBOK) Guide:
o Project Life Cycle, Five Project Management Process Groups, and Ten Knowledge Areas.
2. Application area Knowledge, Standards, Regulations and Practice:

o Functional departments and supporting disciplines, technical elements, such as software
development or engineering, management specializations, such as government contracting, and
industry groups, such as automotive, and financial services.
3. Understanding the Project Environment:

o Cultural and social environment, international environment, and physical environment.
4. General Management Knowledge and Skills:

o Financial management, purchasing and procurement, contracts, manufacturing, logistics &
strategic planning.

5. Interpersonal Skills:
o Effective communications, influencing, leadership, motivation, negotiation, conflict management,
and problem solving.
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(II) Project Management Framework Project Manager Skills

Project Management Techniques &
General Management Skills
Communications Skills PMIs A Guide to (PMBOK) The Project
Organizations Skills Management Body
Budgeting Skills PMP Certification Exam of Knowledge
Problem Solving Skills (PMBOK)
Negotiation and Influencing Skills
(1)
Leadership Skills Generally Accepted
Team Building Skills (5) Project Management (3)
Human Resources Skills Interpersonal Knowledge and
Skills Project
Practices
Environment
(4) (2)
Application Area

A mile wide and an inch deep: General Management
Knowledge and Skills Knowledge, Standards,
Ability to motivate people Regulations & Practice
Make the hard-line call when necessary
Decision maker and focus on results Areas of Expertise Needed by the Project Team
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(II) Project Management Framework PM Processes for a Project

1. Initiating: Authorizing the project or phase.
2. Planning: Defining and Refining Objectives and selecting the best of the alternatives
courses of action to attain the project objectives.
3. Executing: Coordinating people and the other resources to carry out the plan.
4. Monitoring & Controlling: Ensuring that project objectives are met by monitoring and
measuring progress regularly to identify variances from plan so that corrective action can
be taken when necessary.
5. Closing: Formalizing acceptance of the project or phase and bringing it to orderly end.
Project Plan is The Executed Plan is monitored & controlled by measuring
Drafted by the the progress regularly to identify variances from plan for The Plan is
project team; further corrective actions executed and
Approved by the monitored, and the
sponsor, and final deliverables
Distributed to (a product, service,
management and process or plan) are
key stakeholders

delivered to the
project customers
Decision is made
Charter is prepared
The project is evaluated and close-out report is written
and distributed to management and key stakeholders
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(II) Project Management Framework PM Processes for a Project (Contd)
Planning 24
Initiation 2 Execution 8
Develop Project Management Plan
Develop Project Direct and Manage Project Monitoring &
Charter Plan Scope Management 11
Collect Requirements
Work Controlling
Define Scope Perform Quality Assurance Monitor and Control Project Work
Identify
Stakeholders Create WBS Perform Integrated Change
Acquire Project Team
Develop Project Team Control
Plan Schedule Management
Define Activities Manage Project Team Control Scope
Sequence Activities Validate Scope
Estimate Activity Resources Manage Communications
Estimate Activity Durations Conduct Procurements Control Schedule
Develop Schedule
Manage Stakeholder Control Costs
Plan Cost Management Engagement
Estimate Costs Control Quality
Determine Budget
Control Communications
Plan Quality Management
Control Risks
Plan Human Resource Management
Control Procurements
Plan Communications Management
Control Stakeholder Engagement
Plan Risk Management

Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses Closing 2
Plan Procurement Management Close Project or Phase
Plan Stakeholder Management Close Procurements
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(II) Project Management Framework Project Management Context

Programs and Program Management:
Centralized, coordinated management of group of projects to achieve the programs strategic
objectives and benefits.
Portfolios and Portfolio Management:
Collection of projects or programs and other works that are grouped together to facilitate effective
management of that work to meet strategic business objectives.
Subprojects:
More manageable components and are often contracted to an external enterprise or to another
functional unit in the performing organization.
Project Management Office (PMO):
Oversees the management of projects, programs, or combination of both.
Provides PM support in form of training, software, standardized policies, and procedures.
Manages project for achieving the project objectives.
Has different degree of controlling and Influence: Supportive Controlling - Directive
Management By Objectives (MBO):

A system of managerial leadership that defines individual managerial responsibilities in terms of
corporate objectives. Works only with Management Support. It has THREE main objectives:
1. Establish unambiguous and realistic objectives.
2. Periodically evaluate if objectives are being met.
3. Take corrective actions.
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(III) Project Management Environment Project Phases

Initial Phase Design Phase Implementation Final Phase
Phase
High Cost & Staffing Level

Cost and Staffing Level
High Risk Low Risk

High Influence Low Influence

Start Sample Generic Life Cycle: Project Phases and Process Groups Interactions End
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(III) Project Management Environment Project Life Cycle

Project Life Cycle: Identifies the Beginning and the End of the Project. Determines completion of one or more deliverables:
Initial, Intermediate and Final Phase. It defines (a) The technical work to be done in each phase (b) The skills involved in
each phase.
Product Life Cycle: Is the entire lifecycle of a product from its conception, through design and manufacture, to service and
disposal. Similarly; starting with business plan, through idea, to product operations, then product release and retirement.
(1) Predictive Life Cycles: (Fully Plan-Driven) The Project Scope, Time and Cost are determined as early in the project life
cycle. The project then proceeds through a series of sequential or overlapping phases.
(2) Iterative and Incremental Life Cycles: Project phases (iterations) intentionally repeat one or more activities as the
project teams understanding of product increases. The product will be developed though a series of repeated cycles.
(3) Adaptive Life Cycles: (Change Driven or Agile methods). Responds to high levels of change and ongoing stakeholder
involvement. Adaptive projects perform several processes in each iteration. The customer should be continuously engaged
with the project.
Milestone 3 Full Milestone 4
Installation
Milestone 2
Complete Operations Reviews
Major Contracts against a set of
Percent Complete
Base Design
Let metrics are
Milestone 1 Cost & Schedule performed.
Contract Terms
Formulation Detailed Planning These reviews
Production Turnover & Startup

Feasibility Manufacturing are called:
GO
Studies Delivery Final Testing Phase Exits
Strategic Design Decision Maintenance
Civil Works Stage Gates
& Approval Installation Exit Gates
Testing Control Gates
Feasibility Planning & Design
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(III) Project Management Environment Project Accountability

Stakeholders: People or organizations that have a vested interest in the outcome of the project.
Project Manager: Assumes responsibility for the project success.
Customer/User: Individual or organization who will use the project product.
Project Sponsor: An Executive who has the power and authority to make decisions.
Project Champion: Technical Sponsor who focuses on the project with technical perspective.
Functional Manager: Administrative duties, assign staff members, and performance review.
Project
Senior Project Functional Vendors Board of Suppliers Customer

Managers Sponsor Managers Directors User
Project Manager Project Manager Role:

Project Champion
Integrator: Views both the project and the way it fits into
Team Leader the overall plan for the organization.

Communicator: Communicates to upper management, the
project team, and other stakeholders.
Team Member
Project Leader: Able to: Solve problems; Guide people;
and Show Leadership.
Responsibility can be delegated but accountability cannot Decision Maker: Makes key decisions.
Climate Creator or Builder: Builds supportive atmosphere.
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(III) Project Management Environment Project Stakeholders

The Project Stakeholders, Source: Cleland,
David I., Stakeholder Management
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Organizational Structure Influences

(III) Project Management Environment on Projects
Organization
Structure Functional
Matrix Projectized
Project
Weak Balanced Strong
Characteristic
Project Managers Little or Limited Low to Moderate High to
Authority None Moderate to High Almost
Total
Resource Availability Little or Limited Low to Moderate High to
None Moderate to High Almost Total
Who Controls the Functional Functional Mixed Project Project

Project Budget Manager Manager Manager Manager
Project Managers Part-time Part-time Full-time Full-time Full-time

Role Expediter
Coordinator
Project Management Part-time Part-time Part-time Full-time Full-time
Administrative Staff
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Organizational Structure Influences

(III) Project Management Environment on Projects (Contd)
Functional Matrix Matrix Matrix Projectized
Weak Balanced Strong
1. Part Time 1. Part Time 1. Full Time 1. Full Time 1. Full Time
2. No Authority 2. Little Authority 2. Limited Authority 2. High Authority 2. Full Authority
3. No Resources 3. Little Resources 3. Part Time 3. Full Time 3. Full Time
Resources Resources 4. Full
Administration
Project Expeditor (PE):
The project expeditor acts as a staff assistant to the executive who has ultimate responsibility for the project.
The PE has little formal authority. The PE's primary responsibility is to communicate information between the
executive and the workers.
Project Coordinator (PC):
Project coordinator is moved out of facilitator position into a staff position reporting to a much higher level in the
hierarchy.
The PC has more authority and responsibility than a PE.

The PC has the authority to assign work to individuals within the functional organization.
Composite Organization:
Involves all organizational structures at various levels.
Functional organizational structure with a team that have many of the projectized characteristics.
Team may include full-time staff from functional departments.
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Mapping of PM Process Groups to PM Knowledge Area
Process Group Initiate (2) Plan (24) Execute (8) Monitor & Control (11) Close (2)
Knowledge Area
Integration (6) Develop Project Develop Project Management Plan Direct and Manage Monitor and Control Project Close Project
Charter Project Work Work or Phase
Perform Integrated Change
Control
Scope (6) Plan Scope Management Control Scope

Collect Requirements Validate Scope
Define Scope
Create WBS
Time (7) Plan Schedule Management Control Schedule

Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule
Cost (4) Plan Cost Management Control Costs

Estimate Costs
Determine Budget
Quality (3) Plan Quality Management Perform Quality Assurance Control Quality
Human Resource (4) Plan Human Resource Acquire Project Team

Management Develop Project Team
Manage Project Team
Communications (3) Plan Communications Management Manage Communications Control Communications
Risk (6) Plan Risk Management Control Risks

Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Procurement (4) Plan Procurement Management Conduct Procurements Control Procurements Close
Procurements
Stakeholder (4) Identify Plan Stakeholder Management Manage Stakeholder Control Stakeholder Engagement
Stakeholders Engagement
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Major Project Documents

Documents Management Plans Components
Project Project
Charter Scope
Statement Requirements
Plan
Scope
Plan Schedule
Plan Cost
Plan
Quality
Project
Plan
Management
Human Resource
Plan
Plan
Communications
Plan

Risk
Plan
Procurement
Stakeholders Plan
Plan
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Project Management Framework and Environment

With Project Management Without Project Management
The customer is satisfied or Excessive work loads for some
delighted with the final deliverable individuals.
(a product, service, process, or Cost overruns.
plan). Team members lack the right skills or
The deliverable is given to the expertise for the project.
customer on time. Staffing conflicts with other projects
The project team has stayed within or assignments.
the budget and staffing allocations. Relationships among team members
Team members have increased their are strained.
skills and knowledge as a result of The scope of the project keeps
the project. changing.
The organization has benefited Work is redone or duplicated.

from the lessons learned by the Resources are insufficient.
team. Deadlines are missed.
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Project Management Framework and Environment
Review Questions

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PM Knowledge Area Agenda

1. Project Scope Management
2. Project Time Management

3. Project Human Resource Management
4. Project Procurement Management
5. Project Cost Management

6. Project Quality Management
7. Project Risk Management

8. Project Communications Management

9. Project Stakeholder Management
10. Project Integration Management
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(1) Scope Management
Concerned with the work of the project. Only the work that is
required to complete the project.
1. Plan Scope Management
2. Collect Requirements
3. Define Scope
4. Create WBS
5. Validate Scope
6. Control Scope

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(1.1) Plan Scope Management
INPUTS TOOLS & TECHNIQUES OUTPUTS
1. Project management 1. Expert judgment 1. Scope management plan
plan 2. Meetings 2. Requirements management plan
2. Project charter
3. Enterprise environmental
factors
4. Organizational process
assets
Documenting how the project scope will be defined, validated, and controlled
(2) Project Charter:
Provides the project context needed to plan the scope management processes.
Provides high level project description and product characteristics from the project Statement of Work (SOW).
(3) Enterprise Environmental Factors: (4) Organizational Process Assets:

Organizations culture Policies and Procedures
Infrastructure Historical information, and
Personal administration Lessons Learned
Market place conditions

(1) Expert Judgment: (1) Scope Management Plan:
Knowledgeable and Experienced parties Subsidiary plan of the Project Management Plan
Any group or person with specialized education, Describes how the scope will be defined,
knowledge, skill, experience, or training in developed, monitored, controlled and validated
developing scope management plans.
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(1.2) Collect Requirements
1. Scope management plan 1. Interviews 1. Requirements documentation
2. Requirements management 2. Focus groups 2. Requirements traceability matrix
plan 3. Facilitated workshops
3. Stakeholder management 4. Group creativity techniques
plan 5. Group decision-making techniques
4. Project charter 6. Questionnaires and surveys
5. Stakeholder register 7. Observations
8. Prototypes
9. Benchmarking
10. Context diagrams
11. Document analysis
Defining and documenting stakeholders needs to meet the project objectives
Requirements:
Includes the quantified and documented needs and expectations of the sponsor, customer, and other stakeholders.
Needs to be elicited, analyzed, and recorded in enough detail to be measured once project execution begins.
Defines and manages customer expectations.
Becomes the foundation of WBS. Schedule, Cost, Quality planning are all built upon these requirements.
The development of requirements begins with an analysis of the information contained in the project charter.
Project Requirements : Business requirements, project management requirements, delivery requirements, etc.
Product Requirements: Information on technical requirements, security requirements, performance requirements etc.

Product Scope:
The features and functions that characterize a product, service, or result.
Project Scope:
The work that needs to be accomplished to deliver a product, service, or result with the specified features and
functions.
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(1.2) Collect Requirements (Contd)
8. Prototypes
9. Benchmarking
Defining and documenting 11. Document analysis Stakeholders needs to meet the project objectives
(1) Project Charter: (2) Stakeholder Register:
Document that formally authorizes a project Public document which identifies stakeholders that can provide
Provides the project manager with the authority to information on detailed project and product requirements:
apply organizational resources to project activities. 1. Identification information: name, position, role etc.
Project Manager should always be assigned prior to 2. Assessment information: major requirements, main
the start of PLANNING and preferably while the expectations, and potential influence in the project.
Project Charter is being developed. 3. Stakeholder classification: internal/external,
Project Charter issued by Project Initiator or Sponsor supporter/neutral/resistor, etc.
external to the project organization.

(1) Interviews: (2) Focus Groups:
Formal or informal approach. Bring together prequalified stakeholders and subject matter expert to
Asking prepared questions & recording learn about their expectations and attitudes about proposed product,
responses. service, or result.
One-on-one/multiple interviewers and/or Training moderator guides the group through, interactive discussion,
multiple interviewees. designed to be more conversational than a one-on-one interview.
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8. Prototypes
9. Benchmarking
(3) Facilitated Workshops: (4) Group Creativity Techniques:

1. Focused sessions that bring cross-functional Brainstorming: A technique used to generate and collect multiple
stakeholders together to define product ideas related to project and product requirements.
requirements. Nominal Group Technique: Enhances brainstorming with voting
2. Can build trust, foster relationships, and improve process used to rank the most useful ideas for further
communication among the participants. brainstorming or for prioritization.
3. Issues can be discovered and resolved more quickly Delphi Technique: A selected group of experts answers
than individual sessions. questionnaire and provides feedback regarding the
4. Examples: responses from each round of requirements gathering

A. Software development industry uses Joint anonymously.
Application Development (or Design) (JAD) Lead/Mind Mapping: Ideas created through individual
sessions. brainstorming are consolidated into a single map to
B. In the manufacturing, Quality Function reflect commonality and differences in understanding, and
Deployment (QFD) helps determine critical generate new ideas.
characteristics of new product development. Affinity Diagram: Allows large numbers of ideas to be sorted
into groups for review and analysis.
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8. Prototypes
9. Benchmarking
(5) Group Decision Making Techniques: (6) Questionnaires and Survey:

Making an assessment process of multiple Questionnaires and surveys written sets of questions designed to
alternatives with an expected outcome in the quickly accumulate information from a wide number of respondents.
form of future actions resolution. Most appropriate:
Techniques that can be used to generate, 1. With broad audiences.
classify, and prioritize product requirements: 2. When quick turnaround is needed.
1. Unanimity: Single course of action. 3. Where statistical analysis is appropriate.
2. Majority: Support for more than 50% of
the members of the group. (7) Observations:
A direct way of viewing individuals in their environment and how they

3. Plurality: The largest block in a group
decides even if a majority is not perform their jobs or tasks and carry our processes.
achieved. Particularly helpful for detailed processes when there are difficulties
4. Dictatorship: One individual makes the and or/users are reluctant to articulate their requirements.
decision for the group. Job Shadowing is usually done by a participant observer who
performs a process or procedure to experience how it is done to
uncover hidden requirements.
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8. Prototypes
9. Benchmarking
(8) Prototypes: (9) Benchmarking:

Obtaining early feedback on Comparing actual or planned practices, such as processes and operations, to
requirements by providing a working those of comparable organizations to:
model of the expected product before Identify best practices
actually building it. Generates ideas for improvement, and
Since it is tangible, it allows Provide a basis for measuring performance.
stakeholders to experiment with a
(10) Context Diagrams:
model.
Example of Scope Model.
Supports the concepts of Progressive
Depict the product scope by showing a business system (process, equipment,

Elaboration (used in interactive cycles
computer system, etc.) and how other systems interact with it.
of mock-up creation).
Show inputs to business system, the actor(s) providing the input, the output from
the business system, and the actor(s) receiving the output.
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8. Prototypes
9. Benchmarking
(1) Requirements Documentation: (2) Requirements Traceability Matrix:

Describes how individual requirements meet the business need for the project. Table that links requirements to their origin and
Before being baselined, requirements must be unambiguous ( measureable traces them to throughout the project life cycle.
and testable), traceable, complete, consistent, and acceptable to key Provides structure or managing changes to the
stakeholders. product scope.
Components of requirements documentation can contain: It includes tracing:
1. Business need or opportunity as well business and project objectives. 1. Requirements to business needs and
2. Stakeholder requirements, Impacts to other organizational areas, objectives.
stakeholder communications and reporting 2. Requirements to project scope/WBS
3. Solution requirements: deliverables.

1. Functional requirements, describing business processes, 3. Requirements to product design and
information. development etc.
2. Non-functional requirements, such as level of service, Typical attributes:
performance, safety A. Unique identifier, and textual description.
4. Quality requirements and Acceptance criteria, and Transition B. Owner, source, priority, version,
requirements. C. Content status (active, cancelled, added,
5. Support and training and Requirements assumptions and constraints. approved).
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(1.3) Define Scope
1. Scope management plan 1. Expert judgment 1. Project scope statement
2. Project Charter 2. Product analysis 2. Project documents updates
3. Requirements documentation 3. Alternatives generation
4. Organizational process assets 4. Facilitated workshops
Developing a detailed project scope statement as the basis for future project decisions
(4) Organizational Process Assets: (1) Expert Judgment:

Formal & Informal policies, procedures, Each application area has experts who can be used to
and guidelines that could impact how the develop portions of the detailed project scope statement.
projects scope is managed:
1. Organizational Policies, Processes & (2) Product Analysis:
Procedures (Forms & Templates). Translating project objectives into tangible deliverables and
2. Project files from previous projects. requirements.
3. Historical Information (Lessons Learned). Includes techniques: Product breakdown, systems analysis,
systems engineering, value engineering, value analysis, and
functional analysis.
(3) Alternatives Generation:

Techniques used to generate different approaches to execute and perform the work of the project.
The most common used are brainstorming and lateral thinking, pair wise comparisons, etc.
Identifies the influence and interests of the various stakeholders and documents their needs, wants, and expectations.
Selects, prioritizes, and quantifies the needs, wants, and expectations to create requirements.
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(1.3) Define Scope (Contd)
1. Scope management plan 1. Expert judgment 1. Project scope statement
2. Project Charter 2. Product analysis 2. Project documents updates
3. Requirements documentation 3. Alternatives generation
4. Organizational process assets 4. Facilitated workshops
Developing a detailed project scope statement as the basis for future project decisions
(1) Project Scope Statement: (2) Project Document Updates:

Project Objectives Project documents that may be updated include:
Product Scope Description A. Stakeholder register
Project Requirements B. Requirements documentation
Project Boundaries C. Requirements traceability matrix
Project Deliverables
Product Acceptance Criteria
Project Constraints
Project Assumptions
o Initial Project Organization
o Initial Defined Risks
o Schedule Milestones

o Fund Limitations
o Cost Estimates
o Project configuration Management Requirements
o Project Specifications
o Approval Requirements
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(1.4) Create WBS
1. Scope management plan 1. Decomposition 1. Scope baseline
2. Project scope statement 2. Expert judgment 2. Project documents updates
3. Requirements documentation
4. Enterprise environmental factors
5. Organizational process assets
Subdividing the major project deliverables and project work into smaller, more manageable components
Work Breakdown Structure (WBS):
A deliverable-Oriented grouping of project components that organizes and defines the total Scope of the Project.
Work not included in the WBS is outside the Scope of Work.
Each Level Assigned Unique Identifier (Number). Numeric Identifiers are known as Code of Accounts or Chart of Accounts.
Higher levels represents Phase, Subprojects, Deliverable, Department or Discipline.
Milestone is a major accomplishment in a project. (Check point). Higher level usually represents Milestone.
Work Breakdown Structure Templates: Using pervious projects as
Project
a template for new projects.
Rolling Wave Planning Technique: Wait until the Phase 1 Phase 2 Deliverable Subproj
1 2 3 4
deliverable or subproject is clarified so details of WBS can
be developed.
8/80 Rule for WBS: No task should be less than 8 hours or Deliverable Deliverable Deliverable Deliverable

Deliverable CB CB
2.1 2.2 CB
1.1 1.2 1.3
4.1 4.2 4.3
more than 80 hours. common practice.
100% Rule: WBS represents all product and project work. Subproject Subproject Deliverable Planning Package Planning Package
2.2.1 2.2.2
(1) Decomposition: 1.2.1 1.2.2 1.2.3
The process of subdividing deliverables into smaller components.

Further breaking into smaller components called Work Packages. Work Package
2.2.1.1
Work Package
2.2.1.2
Work Package
2.2.1.3
The Point at which cost and schedule for the work can be reliably estimated.
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(1.4) Create WBS (Contd)
1. Scope management plan 1. Decomposition 1. Scope baseline
2. Project scope statement 2. Expert judgment 2. Project documents updates
3. Requirements documentation
Subdividing the major project deliverables and project work into smaller, more manageable components
WBS (Work Breakdown Structure):
Is finalized by establishing control accounts for the work packages and a unique identifier from code of
accounts.
A control account is a management control point where scope, cost, and schedule are integrated and compared to
the earned value for performance measurement.
Each control account may include one or more work package, but each of the work packages must be associated
with only one control account.
Should not be confused with the other kinds of breakdown structures, Organizational Breakdown Structure (OBS), Bill
of Materials (BOM), Risk (or Resource) Breakdown Structure (RBS).
WBS Dictionary: (1) Scope Baseline:
Document that supports the WBS Document. It includes: Approved detailed Project Scope Statement.

o Code of Account Identifier. Associated WBS Document.
o Statement of Work, and Responsible Organization. Associated WBS Dictionary Document.
o List of Schedule Milestones, and
o Others, such as Contract Information, Quality (2) Project Documents Updates:
Requirements, Technical References, Charge Numbers, Updates to the requirements documentation to
Resources Required, and Estimate of Costs. include any approved changes to the WBS.
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(1.5) Validate Scope
1. Project management plan 1. Inspection 1. Accepted deliverables
2. Requirements documentation 2. Group decision-making techniques 2. Change requests
3. Requirements traceability matrix 3. Work performance information
4. Verified deliverables 4. Project documents updates
5. Work performance data
Formalizing acceptance of the completed project deliverables by the project stakeholders
The Scope Validation is the process in which the project customer formally accepts the project deliverables. Scope
Validation happens at the end of each phase. It is the customer feedback on a detailed basis. While Scope Validation
focuses on Customer Acceptance, Quality Control focuses on Correctness of Work. Quality Control is usually performed
before Scope Validation.
(4) Verified Deliverables: (1) Inspection: (1) Accepted Deliverables:
Verified deliverables Activities Such as: Documents completed deliverables that have been
have been completed and Measuring, Examining, accepted in order to be forwarded to the final
checked for correctness Testing. Close Project or Phase Process.
by the Perform Quality Variously called: Reviews, Not accepted deliverables are documented along
Control process. Audits, Walk-through. with the reasons, for non-acceptance.
Scope Creep:

Refers to uncontrolled changes in a projects scope. It happens when the project team drifts away
from its original purpose.
Can occur when the scope of a project is not properly defined, documented, or controlled.
The scope increase consists of either new products or new features of already approved products.
Scope creep can be a result of: poor change control, lack of proper initial identification of what is
required, and weak project manager or executive sponsor.
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(1.6) Control Scope
1. Project management plan 1. Variance analysis 1. Work performance information
2. Requirements documentation 2. Change requests
3. Requirements traceability matrix 3. Project management plan updates
4. Work performance data 4. Project documents updates
5. Organizational process assets 5. Organizational process assets updates
Monitoring the status of the project and product scope and managing changes to the scope baseline
(1) Project Management Plan: (1) Variance Analysis:

Scope Baseline. Project Performance Measurements are used to assess the
Scope Management Plan. magnitude of variation.
Change Management Plan. Determining the cause of variance relative to the Scope Baseline,
Configuration Management Plan. and deciding whether corrective action is required.
Requirements Management Plan.
(2) Change Requests:
Any modifications to the agreed-upon project scope baseline, as
defined by the approved project scope statement, WBS, and WBS
dictionary.
It can include preventive or corrective actions or defect repairs.

Change requests are processed for review and disposition according
to the Perform Integrated Change Control process.
(4) Project Documents Updates: Updates to:

Requirements documentation, and
Requirements traceability matrix.
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Practice 1: Review Questions

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(2) Time Management

Developing Schedule, keeping project activities on track and
monitoring those activities against project plan.
1. Plan Schedule Management
2. Define Activities
3. Sequence Activities
4. Estimate Activity Resources
5. Estimate Activity Durations
6. Develop Schedule
7. Control Schedule

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(2) Time Management

(2.1) Plan Schedule Management
1. Project management plan 1. Expert judgment 1. Schedule management plan
2. Project charter 2. Analytical techniques
3. Enterprise environmental factors 3. Meetings
Establishing the policies, procedures, and documentation for planning, developing, managing, executing, and
controlling the project schedule
(2) Analytical Techniques:

Strategic options to estimate and schedule the
project such as:
Scheduling Methodology
Scheduling Tools and Techniques
Estimating approaches
Formats, and Project Management Software
(1) Schedule Management Plan:
Establishes the criteria and the activities for developing,
monitoring, and controlling the schedule:

Formal or informal
Highly detailed or broadly framed
Establish the followings: Scheduling Overview
Project Schedule Model Project Management Institute, A

Guide to Project Management Body of
Level of accuracy, and Units of Measure Knowledge (PMBOK Guide)- Fifth
Edition, Project Management Institute,
Schedule Model maintenance and control Thresholds Inc, 2013, Fig: 6-2, Page 144
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2003-2014 PMCTQuest. All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means without written consent of PMCTQuest 40
Mentoring Coaching PMI, PMBOK, PMP, CAPM, PMI-RMP, PMI-SP, PMI-ACP, PgMP, OMP3 and the PMI Registered Education Provider logo are registered marks of the Project Management Institute, Inc.
Controlling
(2) Time Management

(2.1) Define Activities
1. Schedule management plan 1. Decomposition 1. Activity list
2. Scope baseline 2. Rolling wave planning 2. Activity attributes
3. Enterprise environmental factors 3. Expert judgment 3. Milestone list
Identifying the specific schedule activities that need to be performed to produce the various project deliverables
(1) Activity List:
Project Work Packages are typically decomposed into smaller components called activities.
Provides a basis for estimating, scheduling, executing and monitoring and controlling the project work.
Level 1: Project GSM Project
Level 2: Subproject Civil Works Power Works Transmission Radio Works

Control Account
Level 3:
Category
Division Soil Test &

Access Road Tower Cable Station Hardware Software
Department Foundation
Planning Package
Level 4:
Fabricate Deliver Install Design Order Install Test Accept
Activity
Work Package
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(2) Time Management

(2.3) Sequence Activities
1. Schedule management plan 1. Precedence diagramming method (PDM) 1. Project schedule network
2. Activity list 2. Dependency determination diagram
3. Activity attributes 3. Applying leads and lags 2. Project documents updates
4. Milestone list
5. Project scope statement
6. Enterprise environmental factors Identifying and documenting relationships among the project activities
(2) Dependency Determination:
1. Mandatory: Hard Logic; Dictated Work.
(1) Precedence Diagramming Method (PDM):
2. Discretionary: Preferred Logic; Soft Logic or Preferential
Activity On Node (AON) and uses One Time Estimate for Original
Logic; Process or Procedure Driven and/or Best Practices.
Duration (OD).
Four Precedence Relationships FS, SF, FF, and SS .
3. External: External Conditions (Weather, Materials
Delivery, Dependencies outside projects control).
4. Milestones: Events to assure that the requirements are met.
Recognize Major Events.
(3) Applying Leads & Lags:

Lead: Allows an acceleration of the successor activity.
Lag: Directs a delay in the successor activity.

Conditional Diagramming Methods: (Probabilistic) Schedule Network Templates:
Graphical Evaluation and Review Techniques (GERT)/ Can represent an entire project if appropriate
System Dynamic Models. Portions of a network template, such as the required
Allow for non-sequential activities such as Loops and project management activities, are common. This is
Conditional Branches. also known as Subnetwork or Fragnet or Fragment.
They are associated with repetitive actions within a
network diagram.
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(2) Time Management

(2.4) Estimate Activity Resources
1. Schedule management plan 1. Expert judgment 1. Activity resource requirements
2. Activity list 2. Alternative analysis 2. Resource breakdown structure (RBS)
3. Activity attributes 3. Published estimating data 3. Project documents updates
4. Resource calendars 4. Bottom-up estimating
5. Risk register 5. Project management software
7. Organizational process assets Estimating the type and quantities of resource required to perform each
schedule activity
(4) Resource Calendars: (3) Published Estimating Data:

Working days and non-working days. Companies routinely publish updated
Active or Idle. production rates and units costs of resources.
Resource Specific holidays and/or availability.
Identify the quantity of each resource available
during each availability period.
Effort vs. Duration: (4) Bottom-up Estimating:

Effort is the amount of labor that is applied to a task. Work is decomposed into more details.
Duration is how long the task is expected to take with the Resources needed for more detailed piece

given amount of labor. of work are estimated.
Resource Capabilities:
The abilities of the project team members must be taken into consideration.
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(2) Time Management

(2.4) Estimate Activity Resources (Contd)
1. Schedule management plan 1. Expert judgment 1. Activity resource requirements
2. Activity list 2. Alternative analysis 2. Resource breakdown structure (RBS)
3. Activity attributes 3. Published estimating data 3. Project documents updates
4. Resource calendars 4. Bottom-up estimating
5. Risk register 5. Project management software
7. Organizational process assets Estimating the type and quantities of resource required to perform each
schedule activity
(2) Resource Breakdown Structure (RBS):
A hierarchical structure of the identified
resources by resource category and
resource type.
It standardizes the Departments
personnel resources to facilitate
planning and controlling of project
work.

Ref: www.successful-project-management.com
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(2) Time Management

(2.5) Estimate Activity Durations
1. Schedule management plan 1. Expert judgment 1. Activity duration estimates
2. Activity list 2. Analogous estimating 2. Project documents updates
3. Activity attributes 3. Parametric estimating
4. Activity resource requirements 4. Three-point estimates
5. Resource calendars 5. Group decision-making techniques
6. Project scope statement 6. Reserve analysis
7. Risk register
8. Resource breakdown structure Approximating the number of work periods that will be needed to complete
9. Enterprise environmental factors individual schedule activities
10.Organizational process assets
(3) Parametric Estimating: (1) Activity Duration Estimates:
Quantitatively Based Durations. Risk Register:
(4) Activity Resource Requirements: Utilized unit & productivity rate. Information on identified risks (Threats or
Assigned Resources to complete an activity. Conservative. Opportunities).
Have an effect on the duration of the activity. Risks with rating of high probability or
(1) Expert Judgment: (4) Three-Point Estimates: high impact.
Three types of estimates: Activity Cost Estimates:
Estimates done by Team Members.
Most likely: Realistic. Project activity cost estimates can be
Avoid Bias and comply with Scientific
Optimistic: Best-case scenario. developed in sufficient detail to provide
Means.
Pessimistic: Worst-case scenario. estimated resources for each schedule

Mix it with Historical Information.
activity.
(2) Analogous Estimating: (6) Reserve Analysis:
Called Top Down Estimating. (Contingency Called, Reserves, Buffer or Contingency time.
Uses Estimates of Similar Activity. Can be Fixed or Percentage of Estimated Duration, or developed
Useful in early stage of the project by quantitative schedule risk analysis.
and Project Evaluation Process. Can be used completely or partially.
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(2) Time Management

(2.5) Estimate Activity Durations (Contd)
1. Schedule management plan 1. Expert judgment 1. Activity duration estimates
2. Activity list 2. Analogous estimating 2. Project documents updates
3. Activity attributes 3. Parametric estimating
4. Activity resource requirements 4. Three-point estimates
5. Resource calendars 5. Group decision-making techniques
6. Project scope statement 6. Reserve analysis
7. Risk register
8. Resource breakdown structure Approximating the number of work periods that will be needed to complete
9. Enterprise environmental factors individual schedule activities
10.Organizational process assets Classes of Estimates and their accuracy (%) (Estimate Actual) /Actual x 100
Estimate Range from Actual Remarks
Rough Order of Estimates in high range (Initiation Phase).
-50% to 100%
Magnitude (ROM)
An approximate estimate made without detailed data.
Order of Magnitude -25% to 75% Used during the initial evaluation of the project (Concept).
Other terms: Feasibility, Conceptual, Ball Park.
To establish activities durations required for the project (Development).

Budgetary -10% to 25% Also used to obtain approval for the project.
Other terms: Appropriations, Capital (Cost).
Prepared from well defined specifications, data, drawings, etc.
Used for bid proposals, bid evaluations, contract changes, extra work,
Definitive -05% to 10%
legal claims, permit and government approvals.
Other terms: Engineering, Finalized.
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(2) Time Management

(2.6) Develop Schedule
1. Schedule management plan 1. Schedule network analysis 1. Schedule baseline
2. Activity list 2. Critical path method 2. Project schedule
3. Activity attributes 3. Critical chain method 3. Schedule data
4. Project schedule network diagrams 4. Resource optimization techniques 4. Project calendars
5. Activity resource requirements 5. Modeling techniques 5. Project management plan
6. Resource calendars 6. Leads and lags updates
7. Activity duration estimates 7. Schedule compression 6. Project documents updates
8. Project scope statement 8. Scheduling tool
9. Risk register Analyzing activity sequences, durations, resource requirements, and
10.Project staff assignments schedule constraints to create the project schedule
11.Resource breakdown structure
12.Enterprise environmental factors
13.Organizational process assets (1) Schedule Network Analysis:
Technique that generates the project schedule. It calculates ES, EF, LS, LF.
Analytical Techniques: CPM, PERT and GERT.
(2) Critical Path Method (CPM): (Next Slide) Law of Diminishing Returns: (Diminishing Marginal
Calculates Single, Deterministic Dates. Returns)
No Resource limitations (Forward & Backward Pass). A law of economics stating that, as the number of new
employees (Efforts) increases, the marginal (Output/Yield)

Total Float (Float/Slack) = Late Dates Early Dates.
Critical Path (Longest Path) with ZERO Total Float Activities. of an additional employee (Efforts) will at some point be
less than the marginal product (Output/Yield) of the
(7) Schedule Compression: previous employee (Efforts).
Shortens the project schedule Without changing the project scope:
Concurrent Engineering: (Is Not Fast Tracking)
Crashing: Greatest Compression with less cost. An approach to project staffing that calls for the
Fast Track: Parallel Activities and Increases risk. implementers to be involved in the design phase.
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(2) Time Management

(2.6) Develop Schedule (Contd)
Critical Path Method (CPM): Activity Duration Predece ES EF Succes LS LF Total
1. Start Beginning of the Day. ssor sor Float
2. Finish End of the Day. A 2 - 1 2 B,C,D,E 1 2 0
3. Early Start: Earliest Possible to Start.
4. Late Finish: Latest Possible to Finish. B 6 A 3 8 F,G 3 8 0
C 6 A 3 8 End 8 13 5
Total Float (Float) (Slack) is:
D 5 A 3 7 I 4 8 1
(L) Start (E) Start OR
(L) Finish (E) Finish E 6 A 3 8 K 5 10 2
F 3 B 9 11 End 11 13 2
Free Float (Current Activity) is:
Min [ES of Succeeding Activities] EF of G 5 B 9 13 End 9 13 0
Current Activity 1 H 2 I 10 11 End 12 13 2
Start A B G End I 2 D 8 9 H, K 10 11 2
The Longest Path (Critical Path) K 3 I,E 10 12 End 11 13 1
Total Project Duration: 13 days End 0 G, 13 13 - 13 13 0
3 8 9 13 F,C,H,K
G
B
5
1 2 6 9 11
1 A 3 8 F 9 13 13
3 Free Float

Start 2 C 8 3
End
11 13 ES EF ES EF
1 1 13 10 H 11
2 6
8 13 ACT ACT
3 7 8 2 Forward Pass
D
9 OD OD
I 12 13
5 2 Backward Pass LS LF LS LF
4 8 8 10 12
3 E 9 10 K
6 3 Total Float (Float) (Slack)
5 10 11 13
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(2) Time Management

Program Evaluation & Review Technique (PERT) : (Very Rarely Used)
Uses Weighted Average duration estimates and Distributions Mean (EV) instead of Most Likely Value (CPM).
Is a network model that allows randomness in activity completion times.
Developed in late 1950s for the US Navys Polaris project having thousands of contactors.
PERT Formulas:
Activity Standard Variance Activity P M O E(V) STD VAR = (STD)2
Duration Deviation
A 15 6 3 7 2 4
Estimate E(V) (STD)
(P+4M+O)/ 6 (P O) / 6 (STD)2 B 17 9 7 10 1.67 2.79
P = Pessimistic, Worst Scenario C 23 11 5 12 3 9
M = Most Likely, Realistic
O = Optimistic, Best Scenario
Project 29 (15.79) = 15.79
3.97
Left Skew
Confidence Level Project Duration
O Most Mean= E(V) P

68.26% Between (29-STD) and (29+STD)
Likely
95.46% Between (29- 2xSTD) and (29+ 2xSTD)
Right Skew
99.73% Between (29- 3xSTD) and (29+ 3xSTD)
O Mean= E(V) Most P 99.99% Between (29- 6xSTD) and (29+ 6xSTD)
Likely
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(2) Time Management

1. Schedule management plan 1. Schedule network analysis 1. Schedule baseline
2. Activity list 2. Critical path method 2. Project schedule
3. Activity attributes 3. Critical chain method 3. Schedule data
4. Project schedule network diagrams 4. Resource optimization techniques 4. Project calendars
5. Activity resource requirements 5. Modeling techniques 5. Project management plan
6. Resource calendars 6. Leads and lags updates
7. Activity duration estimates 7. Schedule compression 6. Project documents updates
8. Project scope statement 8. Scheduling tool
9. Risk register Analyzing activity sequences, durations, resource requirements, and
10.Project staff assignments schedule constraints to create the project schedule
11.Resource breakdown structure
12.Enterprise environmental factors (4) Resource Optimization Techniques:
13.Organizational process assets Resource Leveling Heuristics (Rule of Thumb):
Preliminary Early Start Dates. Allocate Scarce Resource to Critical
(3) Critical Chain Method: (Dr. Eliyahu Goldratt, 97) Path Activities. Results in Longer project and Resource-Base Method.
Technique that accounts for Impacts of Projects Variations Resource Smoothing: Delayed within Total and Free Float Only.
(Uncertainty), and Human Behaviors (Perception/Response).
(5) Modeling Techniques:
Combines deterministic and probabilistic approaches.
What If Scenario: Using the schedule model to compute the
Accounts for Task Dependencies and Resources
different scenarios. The outcome can be used to assess the

Dependencies.
feasibility of the project schedule.
Uses Feeding Buffers (Key Tasks) and Project Buffer-(End of
Simulation involves calculating multiple project durations with
the Project).
different set of activity assumptions (Monte Carlo Simulation).
After critical chain is identified, resource availability is
Monte Carlo Analysis:
entered and resource-limited schedule is determined.
A Distribution of possible activity durations is defined for
Focuses on managing the buffer activity durations and the
each schedule activity and used to calculate a distribution
resources applied to planned schedule activities.
of possible outcomes for the total project duration.
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(2) Time Management

1. Schedule management plan 1.Schedule network analysis 1. Schedule baseline
2. Activity list 2.Critical path method 2. Project schedule
3. Activity attributes 3.Critical chain method 3. Schedule data
4. Project schedule network diagrams 4.Resource optimization 4. Project calendars
5. Activity resource requirements techniques 5. Project management plan
6. Resource calendars 5. Modeling techniques updates
7. Activity duration estimates 6. Leads and lags 6. Project documents updates
8. Project scope statement 7. Schedule compression
9. Risk register 8. Scheduling tool
10.Project staff assignments Analyzing activity sequences, durations, resource requirements, and
11.Resource breakdown structure schedule constraints to create the project schedule
12.Enterprise environmental factors
(2) Project Schedule:
13.Organizational process assets Shows Planned (Start-Finish). Can be presented in summary
form, Master Schedule or Milestone Schedule or details.
(1) Schedule Baseline: Can be presented in Tabular form, or Graphical form using:
Specific version of the project schedule. (a) Project Schedule Network Diagram:
It is accepted and approved by the project management team. Shows both the project network logic and the projects critical
(3) Schedule Data: path schedule activities with relationships.
Supporting data for project schedule includes: Presented in AON diagram format

1. Schedule Milestones and Activities, activity attributes. (b) Logic Bar Chart:
2. Other supporting details: Shows Start and End dates with Relationships. (Gantt Chart)
Resource requirements by time period. Summary Bars. No Relationships. (Hammock Activity)
Alternative schedules, and Schedule Contingency reserves. (c) Milestone Charts:
Constraints: Only identifies the schedule start or completion of major
Constraints will restrict when and how the project may be implemented. deliverables. No Relationships.
Added to a project for a purpose, not just to rush the work to completion.
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(2) Time Management

(2.7) Control Schedule
1. Project management plan 1. Performance reviews 1. Work performance information
2. Project schedule 2. Project management software 2. Schedule forecasts
3. Work performance data 3. Resource optimization 3. Changes requests
4. Project calendars techniques 4. Project management plan updates
5. Schedule data 4. Modeling techniques 5. Project documents updates
6. Organizational process assets 5. Leads and lags 6. Organizational process assets
6. Schedule compression updates
7. Scheduling tool
Monitoring the status of the project to update project progress and manage changes to the schedule baseline
(1) Performance Reviews: (1) Work Performance Information:

Actual start and finish dates.
Produces the Schedule Variance (SV) and Schedule Performance Index (SPI).
Remaining durations for unfinished activities.
Assesses the magnitude of schedule Variations.
Earned Value (Percent complete of in-progress
Identifies if the schedule variation requires Corrective Actions.
schedule activities can be also included).
Trend analysis: examines project performance
over time to determine whether performance is (4) Project Management Plan updates:
improving or deteriorating May or may not require adjustment to Project Plan.
Critical Path Method: Comparing the progress Schedule Baseline:

along the critical path to determine schedule Anything to bring Schedule on Track.
status, using Variance Analysis. Expediting: Special Action.
Variance Analysis: Requires Root-Cause Analysis.
Time Control. Schedule Recovery can be planned and executed.
Comparing Target with Actual/ forecast. Revisions: Special Category of Schedule Updates.
Detect Deviation. Re-baseline: Provides realistic data to measure performance.
Request Corrective Actions. Multiple Baselines.
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(2) Time Management

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(3) Human Resource Management

Involves all aspects of people management and personal
interaction.
1. Plan Human Resource Management
2. Acquire Project Team
3. Develop Project Team
4. Manage Project Team

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(3.1) Plan Human Resource Management
1. Project management plan 1. Organization charts and position 1. Human resource
2. Activity resource requirements descriptions management plan
3. Enterprise environmental factors2. Networking
4. Organizational process assets 3. Organizational theory
4. Expert judgment
5. Meetings
Identifying and documenting project roles, responsibilities, and reporting relationships, as well creating the staffing
management plan
(3) Enterprise Environmental Factors:
Organizational: Involvement of departments (1) Organization Charts and Position Descriptions:
and relationship. Team members roles and responsibilities formats:
Technical: Different disciplines & specialties. 1. Hierarchical: Organizational Break Down Structure (OBS),
Interpersonal: Formal & informal reporting shows responsibilities by Department. Uses WBS, RBS and
relationship. Work Packages.
Logistical: Physical locations of team and time 2. Matrix: Responsibility Assignment Matrix (RAM).
zones if any. Example: RACI: Responsible, Accountable, Consult, Inform.
Political: Individual goals and agenda of the 3. Text Oriented: Free format Heading and Sub-Heading
potential stakeholders. Responsibilities, Authority, Competencies, Qualifications.
(2) Networking:
Constraints:

Informal interaction with others in an organization or industry:
Organization Structure: Weak-Strong Matrix.
Proactive Correspondence.
Collective Agreements: Unions.
Luncheon Meetings.
Economic Conditions: Hiring freezes, reduced
Informal Conversations.
training funds, travel budget etc.
Trade Conferences.
(3) Organizational Theory:
Provides information regarding the ways people, teams, and units behavior.
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(3.1) Plan Human Resource Management (Contd)
1. Project management plan 1. Organization charts and position 1. Human resource
2. Activity resource requirements descriptions management plan
2. Networking
4. Organizational process assets 3. Organizational theory
4. Expert judgment
5. Meetings
Identifying and documenting project roles, responsibilities, and reporting relationships, as well creating the staffing
management plan
(1) Human Resource Management Plan:
Roles and Responsibilities: Staffing Management Plan:
Role: (Who Does What) Describes when and how human resource requirements will be met:
Describing the portion of a project for which a person is Staff Acquisition.
accountable. Timetable: Resource Histogram: Illustrates the number of hours
Responsibility: (Who Decides What Role) that a person, department, or entire project team will be
The work that a project team member is expected to needed each week or month over the course of the project.
perform in order to complete the project's activities. Release Criteria. Training needs, Recognition and rewards.
Authority: The right to apply project resources, make Compliance, and Safety.
Resource Histogram
decisions, and sign approvals.
Staff days for Consultants

Competency: The skill and capacity required to
complete project activities.

15
Activity Head Team Leader Engineer Example of RAM:
Act. A C A R Roles: RACI 10
R: Responsible
Act. B I R A 5
A: Accountable
Act. C R I C C: Consult
14 12 15 5
Act. D A C R I: Inform Feb
9 7
Mar
11 8
Jan Apr
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(3.2) Acquire Project Team
1. Human resource management 1. Pre-assignment 1. Project staff assignments
plan 2. Negotiation 2. Resource calendars
2. Enterprise environmental factors 3. Acquisition 3. Project management plan updates
3. Organizational process assets 4. Virtual teams
5. Multi-criteria decision
analysis
Obtaining the human resources needed to complete the project
(2) Enterprise Environmental Factors: 1. Pre-assignment: Team members are known in advance.
Availability. 2. Negotiation: To negotiate with Functional Managers, and
Ability. other performing organization to appropriately assign
Experience. scarce or specialized resources.
Interests. 3. Acquisition: Required services can be acquired from
Cost. outside sources.
4. Virtual Teams: Groups of people with a shared goal, who
(3) Organizational Process Assets fulfill their roles with little or no time spent face to face.
Policies. 5. Multi-criteria decision analysis: Used as a part of
Guidelines. acquiring the project team. The criteria are weighted

Procedures governing staff assignments. according to the relative importance of the needs within
Recruiting. the team. Examples: Availability, Cost, Experience, and
Hiring. Ability, Knowledge, skills, Attitude, and International
Orientation. Factors.
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(3.3) Develop Project Team
1. Human resource 1. Interpersonal skills 1. Team performance assessments
management plan 2. Training 2. Enterprise environmental factors
2. Project staff assignments 3. Team-building activities updates
3. Resource calendars 4. Ground rules
5. Colocation
6. Recognition and rewards
7. Personnel assessment tools
Improving the competencies, team interaction, and the overall team environment to enhance project performance
(1) Interpersonal Skills: (Soft Skills) (4) Ground Rules: Clear Expectations regarding acceptable behavior.
Skills such as Empathy, Influence, Creativity, (5) Colocation: Moving many or all team members to same physical location,
and Group Facilitation are valuable assets Example War Room: Meeting room with all or most team members.
when managing the project team.
Team Building Activities:
Adjourning
Forming: Beginning of Team Formation.

Norming
Performing
Storming
Storming: Team Members become Confrontational.

Forming
Norming: Team members know each other fairly well.

Performing: Perfection. Great Team Ending Results.
Adjourning: The work is completed and the team breaks up.
Project Start Project Finish

Effective Team Symptoms : Ineffective Team Symptoms : (7) Personnel Assessment Tools :
Better Conflict Resolution. Lack of motivation I dont care Attitudinal Surveys
Commitment to the project & Team. Project work that is not satisfying Specific Assessments
High Job Satisfactions. Status Meeting that turn into Storming Session Structured Interviews
Enhanced Communications. Poor Communications Ability Tests
A sense of belonging and Purpose. Lack of Respect and Lack of Trust. Focus Groups
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(3.3) Develop Project Team (Contd)
Recognition and Rewards Systems:
(5)Theory X and Theory Y: (McGregor)
Motivation can be Extrinsic:
X Managers are like dictators, impose rigid controls. Believe people
Material Things; Bonuses, Certificates, Stock Options,
dont like work and will try to steer clear of it.
Special Employee Benefits (PERKs) e.g. Parking, Car etc.
Y Managers believe people are creative and committed to project
and Fringe Benefits: Standard Employee Benefits.
goals, and are able to perform their Roles & Responsibilities.
Motivation can be Intrinsic:
Specific to individuals (Naturally Driven to be Motivated- (6) Ouchis Theory Z: (William Ouchi- Japanese workplace)
Cultural and Religious). Similar to theory Y. Workers are motivated by a sense of
Organizational and Motivation Theories: commitment, opportunity, and advancement. Credits the idea of
Lifetime Employment, Consensus Decision Making, and
1) Maslows Hierarchy of Needs: Collective Responsibility.
Human has Five Basic Needs, Food (Physiological), Security
(Safety), Social, Self Esteem and Self Actualization
Maslows
Self
(2) Herzbergs Theory of Motivation: (Frederick Herzberg) Hierarchy of
Two Catalysts contribute to Motivation: Actualization
Needs: Morality, Problem Solving, Lack of Prejudice
Hygiene Agents: Job Security, Paycheck, Safe Environment
Motivating Agents: Responsibility, Appreciation,
Recognition, chance of development Self Esteem Needs
Confidence, Respect, Achievement
(3) Expectancy Theory: Expectation of a positive outcome
Social Needs
drives motivation
Love, Family, Friend, Marriage

(4) Achievement Theory: People are motivated by the need
Safety Needs
for THREE things: Achievement, Power and Affiliation
Security (Health, Property, Job)
Halo Effect: (Should be avoided) Physiological Needs
An assumption that because the person is good at a technology,
Food, Drink, shelter, breathing, survival
he/she will be good as a project manager.
You are a great programmer. I would like to assign you to manage x project and expect you to do Same Good Job.
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(3.4) Manage Project Team
1. Human resource management 1. Observation and conversation 1. Change requests
plan 2. Project performance appraisals 2. Project management plan updates
2. Project staff assignments 3. Conflict management 3. Project documents updates
3. Team performance assessments 4. Interpersonal skills 4. Enterprise environmental factors
4. Issue log updates
5. Work performance reports 5. Organizational process assets updates
Tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhance
project performance
(2) Project Performance Appraisals: (3) Conflict Management: (Time, Importance, Relationship, and Power )
Can be Formal and Informal. Forcing (Dictating): The person with the power makes the decision. The
Depends on project: Length, Complexity, decision made may not be the best for the project, but it is fast (win-lose).
Organizational Policy, Contract, and Quality Withdrawal (Avoidance): Worst conflict resolution approach. One side of the
of regular communication. argument walks away from the problem. Not paying attention to the conflict
360-Degree Feedback: (Observed Behavior) and not taking any action to resolve it (yield-lose) or (lose-lose).
Process to improve individual and work-unit Compromising (Bargaining): Requires that both parties give up something.
performance. Partially satisfactory to both parties, but completely satisfactory to neither
Feedback should come from distinctly (lose-lose) or (win-win).
different sources (subordinates, peers, Smoothing (Accommodating): Minimizing the perceived size of the problem.

customers and clients, managers). Temporary Solution, but can calm team relations. Allowing the other party to
Making that Performance information satisfy their concerns while neglecting your own (lose-win).
available to the individual for further Collaborating (Consensus): Cooperating with the other party to understand
improvements and enhancements. their concerns and expressing your own concerns in an effort to find a
360-degree because there are 360 mutually and completely satisfactory solution (win-win).
degrees in a circle. Confronting (Problem Solving): Directly analyzing and solving the problem.
Best Strategy (win-win).
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(3.4) Manage Project Team (Contd)
1. Project staff assignments 1. Observation and conversation 1. Enterprise environmental factors
2. Project management plan 2. Project performance appraisals updates
3. Team performance assessments 3. Conflict management 2. Organizational process assets
4. Performance reports 4. Issue log updates
5. Organizational process assets 5. Interpersonal skills 3. Change requests
4. Project management plan updates
Tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhance
project performance
Leadership Styles:
Autocratic: Making decisions without Input. Also called The Power of the Leader: (Influence and Limit of Authority)
Directing Telling others what to do. Power Description Source
Consultative: Inviting Ideas from others Persuading.
Power based on a persons knowledge Personal
Shareholder: Team had ultimate authority for the final Expert
or expertise.
decision Delegating.
Facilitating: Coordinating the others inputs. Borrowed power that is transferred Personal
Coaching: Instructing and training others. Referent from a formal leader; or earned Charisma
Supporting: Providing assistance along the way. power (role model) Admiring.
Consensus: Problem solving group with decision making Power based on the ability to provide Legitimate
Reward
based on group agreement Participating. or withhold rewards.

Laissez-Faire: A French phrase meaning "let do, let go, let Coercive Power based on intimidation or use of Legitimate
pass." Leave it alone. Places few demands or controls on (Penalty) force to push ones issues or decision.
the team member. "Do your own thing.
Formal Authority based on a title or Legitimate
Formal
position within an organization.
Sources of Conflicts:
Schedules Priorities Resources Technical Beliefs Administrative Policies Project Costs Personalities
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(4) Procurement Management

Includes the contract management and change control processes
required to develop and administer contracts (Services) or
purchase orders (Goods) issued by authorized project team
members.
1. Plan Procurement Management
2. Conduct Procurements
3. Control Procurements
4. Close Procurements

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(4.1) Plan Procurement Management
1. Project management plan 1. Make-or-buy analysis 1. Procurement management plan
2. Requirements documentation 2. Expert judgment 2. Procurement statement of work
3. Risk register 3. Market research 3. Procurement documents
4. Activity resource requirements 4. Meetings 4. Source selection criteria
5. Project schedule 5. Make-or-buy decisions
6. Activity cost estimates 6. Change requests
7. Stakeholder register 7. Project documents updates
8. Enterprise environmental factors Determining and documenting purchasing decisions, the approach, and
9. Organizational process assets identifying potential sellers
(1) Make-or-Buy Analysis:
Cost effective Analysis (Cost includes Direct Costs: costs incurred for work in
project, and Indirect Costs: Overhead allocated. Cost of doing business).
Example of buying Crane versus Renting (Capital Item).
Capacity Issue, Skills, availability and trade secrets.
Limited Choices of Vendors: Example: Rent a Crane or Buy a Crane
(1) Sole Source: Only one qualified Seller exists in the marketplace. Item Buy Rent
(2) Single Source: Organization prefers to contract with Specific Price 70,000 0
Seller.

Monthly Rent 0 10,000
(3) Oligopoly: Very few Sellers, and the actions of one Seller will
have a direct effect on the other sellers prices and the overall Service/Month 3,000 1,000
market condition. Total Cost (10 Months) 100,000 110,000
(4) Monopoly: A situation in which a single company owns all or
Decision (if it is to be used Buy
nearly all of the market for a given type of product or service.
for at least 10 months)
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(4.1) Plan Procurement Management (Contd)
Contract Types:
Contract:
Privity: A mutually binding agreement that obligates the seller to provide
Confidential and Secret contractual the specified product or service or result and obligates the buyer
relationship. Contract Information. to pay for it.
Contract is Formal; Specific; Time Bound; and
Managed.

Legally (Binding) Enforceable Contract should contain: Contract Origination:
1. An Offer; Unilaterally: Common form for Simple type contract Purchase
2. Accepted and Signed; Order.
3. Consideration (Payment); Bilaterally: Procurement Documents translated into a final
4. Lawful and Legal purpose; Contract; also called: Agreement; Subcontract; Memorandum of
5. Executed by someone with Capacity and Authority. Understanding (MOU).
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Contract Types: Compulsory agreement between two or more parties. 0% SELLERS RISK 100%
1. Firm Fixed Price (Lump Sum Contracts): (FFP) FFP
a) Well defined deliverable for a set price.
b) High Risk to the Seller. Used for Projects that will take long time. FPIF
(1) Fixed Price Plus Incentive Fee Contracts: (FPIF)/ Fixed Price Award Fee (FPAF)
a) Buyer includes an incentive or bonus for early completion.
b) Some of the risk is borne by the buyer compared to Fixed Price.
(2) Fixed Price with Economic Price Adjustment Contracts: (FP-EPA) Unit Rate
(3) Unit Price Contracts:
a) Seller specifies a set amount for the product rendered by some measurements.
b) Rates are preset and agreed upon by the buyer and seller ahead of time. Reimbursable
2. Cost Reimbursable Contracts:
a) All costs incurred by the seller are charged back to the Buyer (reimbursed).
b) Highest Risk to the Buyer as total costs are uncertain. Requires Auditing. CPFF
c) Used when there is a lot of Uncertainty regarding the project.
(1) Cost Plus Fixed Fee (CPFF):
a) Charge Back all project costs to the buyer and include a fixed fee. No motivation.
CPIF
CPAF
(2) Cost Plus Incentive Fee (CPIF)/ Cost Plus Percentage of Saving (CPPS):
a) Incentive is Fixed or otherwise Percentage of Savings. Some motivation for savings.
CPPS
(3) Cost Plus Percentage of Cost (CPPC) CPPC

a) Incentive is Percentage of Cost, therefore it is the Riskiest to Buyer.
b) Sellers profit is increased with increased cost. 100% BUYERS RISK 0%
(4) Cost Plus Award Fee (CPAF):
a) Majority of sellers fee is only earned on satisfaction of subjective Performance.
3. Time & Materials (T&M) Contracts:
Crosses between other types, Unknown full amount of contract (Reimbursable) & Unit Rates may be used (Fixed).
Sometimes called Unit Price Contracts, and it is ideal for small projects.
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(1) Firm Fixed Price (FFP) Lump Sum: (1) Fixed Price Incentive Fee (FPIF)
Firm Fixed Price (FFP) (Lump Sum)
Target Cost $1,000K
Price $1,000K
Target Profit $100K (Seller's Incentive Fee)
Scenario 1
Target Price $1,100K
Actual Cost $700K
Ceiling Price $1,260K (The maximum pay-out to the seller)
$300K
Seller's Profit Share Ratio 70/30 (70% Buyer and 30% Seller) Savings
(Price - Actual Cost)
Scenario 1
Scenario 2
Actual Cost $800K
Final Cost $1,100K
Savings $200K (Target cost - Actual cost)
Seller's Loss $100K on contract
$800K + $100K + 60K = $960K
Seller Gets
(2) Unit Price Contract (Actual cost + Fee + 30%*Savings)
Price $1,000K Buyer Saves $1,100K - $960K = $140K
Scenario 1 Scenario 2
Actual Cost $700K Actual Cost $1,300K (will be paid by Seller)
$300K $1,260K (Ceiling Price)
Seller's Profit Seller Gets

(Price - Actual Cost) (no profit. In addition Seller Incurs 40K Loss)
Scenario 2 (Cost per unit is up-market changes) $1,260K - $1,100K = $160K

Buyers Loss [Ceiling Price Target Price] (the pay-out is
Actual Cost $1,200K $160K over Target price = Ceiling Price)
Buyer Pays 1,000K
Sellers Loss $1,200K 1,000K = 200K
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Fixed Price Incentive Fee (FPIF): 70/30 Sharing Ratio
Target Price
Ceiling Price
Cost Plus Incentive Fee (CPIF)
Target Cost
1.0 1.1 1.26

Estimated Cost $1,000K
Predetermined Fee $100K
PTA
0.1 85/15
Fee Sharing Formula (buyer absorbs 85% of the uncertainty and
Point of the seller absorbs 15% of the risk)
Total = Target Cost + Buyers Sharing Ratio Actual Cost $800K
Assumption
Savings $1,000K - $800K = $200K
Example: PTA = 1 + (1.26 1.1)/ 0.7 = 1.23 M
The amount above which the Seller bears all the loss of $800K + $100K + $30K = $930K
Seller Gets
Cost Overrun (Actual cost + Fee + (15% * Savings) )
(2) Cost Reimbursement Contracts: Buyer Saves ($1,000K+$100K) - $930K = $170K
Cost Plus Fixed Fee (CPFF)

Cost Plus Percentage of Cost (CPPC)
Estimated Cost $1,000K
Agreed Fixed Fee is (15% of Estimated Estimated Cost $1,000K
Fixed Fee
Cost) = ($150K) Fee 10% of Final Cost

Estimated Total $1,150K $1,100K
Price (Estimated Cost + Fixed Fee) Estimated Total Price
(Estimated Cost + 10% * Final Cost)
If cost increases to $1,300K the total price would be If cost increases to $1,200K, then the total fees would be 10% of the
$1,300K + 15% of the original estimated costs = final actual costs ($1,200K) = $120K, hence total cost would be:
$1,300K + $150K = $1,450K $1,200K + $120K = $1,320K
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Determining and documenting purchasing decisions, the approach, and
identifying potential sellers
Forward Buying:
The process of buying items in anticipation of their needs.
Advantage: Some protection against running out of an item Stock Out.
Blanket Order: (Form of Forward Buying) Disadvantage: Risk of becoming obsolete.
An order the customer makes with its supplier which contains multiple
delivery dates scheduled over a period of time, sometimes at (1) Procurement Management Plan:
predetermined prices. Details how the procurement will be managed.
Used when there is recurring need for expendable goods. Defines the type of contract to use, what authority the team
Items are purchased under a single purchase order rather than has, if more than one contractor will be used.
processing a separate Purchase Order (PO) each time supplies are How the procurement process will be integrated.
needed. How to manage multiple providers.

Relieving the customer from holding large inventories and avoiding (2) Procurement Statement of Work:
the administrative expense of processing frequent purchase orders, Describes the procurement item in sufficient details to allow
while favoring discount pricing through volume commitments. prospective sellers to determine if they are capable of
Repetitive purchase from the same supplier, which are paid in a providing the item.
predictable manner. Sufficient Detail may vary, based on the nature of the item,
Used when the order requires numerous shipment / excessive the needs of the buyer, or the expected contract form.
storage.
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(3) Procurement Documents: (4) Source Selection Criteria:

Used to solicit proposals from prospective sellers. To Rate or Score Proposals.
Bids & Quotation, is used when source selection is based on Price. Objective (Specify: the PM must be PMP).
Proposal is used when other considerations, such as technical skills or Subjective (Specify: have several years of
technical approach, are paramount. experience.
Request For Quotation (RFQ) [Low dollars such as supplies/materials]. Criteria may be Purchase Price (Known
Invitation For Bid (IFB) [High dollars and Standard items]. Purchase).
Request For Proposal (RFP) [High dollars and Non-Standard items]. Understanding of need.

Tender Notice (TN). Overall or life-cycle cost.
Invitation For Negotiation (IFN). Technical Capability.
Documents should be structured to facilitate accurate and complete. Technical Approach.
responses from sellers. Management Approach.
Should be rigorous enough to ensure consistent, and comparable Financial Capacity.
responses.
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(4.2) Conduct Procurements
1. Procurement management plan 1. Bidder conference 1. Selected sellers
2. Procurement documents 2. Proposal evaluation 2. Agreements
3. Source selection criteria techniques 3. Resource calendars
4. Seller proposals 3. Independent estimates 4. Change requests
5. Project documents 4. Expert judgment 5. Project management plan
6. Make-or-buy decisions 5. Advertising updates
7. Procurement statement of work 6. Analytical techniques 6. Project documents updates
8. Organizational process assets 7. Procurement negotiations
Obtaining seller responses, e.g. information, quotations, bids, offers or proposals, selecting a seller, and
awarding a contract
(2) Procurement Document: (4) Seller Proposals:
Is a buyer-prepared formal request sent to each seller. Are seller-prepared documents that describe the sellers
Is the basis upon which a seller prepares a bid for the ability and willingness to provide the requested product.
requested products, services, or results that are Prepared in accordance with the requirements of the
described in the procurement documentation. relevant procurement documents.
May be supplemented with an oral presentation to
Qualified Seller List: provide additional information of the sellers proposal.

Those sellers who are asked to submit a proposal or quotation. (1) Bidder Conference:
Maintain List of Prospective Sellers. Also called contractor conferences, vendor
General Information can be obtained from Internet, Library conferences, and pre-bid conferences.
Directories, Local Associations and Trade Catalogs. Meetings with prospective sellers prior to preparation
Detailed Information on specific sources may require more of a bid proposal.
extensive efforts, such as survey and contacting pervious To ensure all prospective sellers have clear, common
customers. understanding on the procurement documents.
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(4.2) Conduct Procurements (Contd)
awarding a contract
(2) Proposal Evaluation Techniques: Weighting System Screening System:
Assign numerical weights to evaluation criteria. Uses Predetermined Performance Criteria.
Multiply this by the weight of each criteria factor to Example: request for Certified Engineers.
come up with the Total Scores for each vendor. Weighting and Screening Systems are used in
Useful where multiple vendors to choose from. combination to come up with a selection.
(5) Advertising:
(3) Independent Estimates: (Should-cost) estimate Expanding existing list of Potential Sellers.

Prepared by the Organization internally (Buyer). Letting Potential Vendors know that RFP is available.
To be used for Comparison purposes.
Large Differences mean: (7) Procurement Negotiations:
a) SOW or Terms of Contract was not detailed enough. OR To iron out the details of the Contract (Next Slide)
b) Vendor Simply failed to respond appropriately. Contract Language should include:
Price, Responsibilities, Regulations or Laws that apply
and an overall approach to the project.
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(4.2) Conduct Procurements (Contd)
awarding a contract
(7) Procurement Negotiations: Stages of Negotiation:
1. Preparation and Planning: Negotiators get to know each other.
2. Definition of Ground Rules: The negotiators begin the search process.
3. Clarification and Justification: This is the essence of the meeting.
4. Bargaining and Problem Solving: Actual bargaining occurs and concessions are made. The two positions are summed up and final
concessions are reached. The agreements are summarized and documented.
5. Agreement Closure and Implementation: Taking care of the details required to finalize the agreement.
Negotiation Tactics:
Deadline: Imposing a deadline for reaching an agreement.

Surprise: One party springs information such as a price change on the other party.
Stalling: Agreement cannot be finalized, due to limited authority or the authorized person is absent.
Fair and Reasonable: Comparing to another equitable contract case.
Delays: To lower down temper and divert from a subject. Refreshments, Recess, etc.
Withdrawal: Sometimes done to divert attention from an area of weakness.
Arbitration: A third party may be brought in when agreement cannot be reached.
Fait Accompli: A party may claim that what is being asked for has already been accomplished and cannot be changed.
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(4.3) Control Procurements
1. Project management plan 1. Contract change control system 1. Work performance information
2. Procurement documents 2. Procurement performance reviews 2. Change requests
3. Agreement 3. Inspections and audits 3. Project management plan
4. Approved change requests 4. Performance Reporting updates
5. Work performance reports 5. Payment systems 4. Project documents updates
6. Work performance data 6. Claims administration 5. Organizational process assets
7. Records management system updates
Managing the contract relationships, monitoring contract performance, and making changes and corrections as needed
(6) Claims Administration: Direct Negotiation OR
(1) Contract Change Control System:
Processes to make contract Changes.
Alternative Dispute Resolution (ADR):
Mediation: Third party listens and helps put facts into
Formal system to track disputes and their
resolutions and all the paper-works for changes. perspective. Usually handled by single mediator who makes
no judgments about neither party, only helps facilitating a
(5) Payment Systems: dialogue and get parties reach resolution.
Review and authorize to issue the check. Arbitration: Third party takes the position of the judge and
Payment Request: Where the Check gets sent makes decision. Usually Three Arbitrators; One is the Head
to the vendor. and the other Two are representing the two parties. Usually
Binding and should be complied to.
Methods of Project Endings and Termination:

Litigation: Resolving disputes by the legal/Judicial Process.
(1) Completion (Extinction): Successful performance, Fulfill the scope.
(2) Displacement: Becomes obsolete because of another project.
(3) Collapse: Ends due to external factors, disasters, mergers. (2) Change Requests:
(4) Absorption (Addition): Becomes a permanent part of the sponsoring org. Contested Changes: Changes that
(5) Integration: Distributing some of the resources to other areas. cannot be agreed upon, hence lead to
(6) Deterioration (Starvation): A Slow death. Decreasing support gradually. Disputes, Claims or Appeals.
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(4.4) Close Procurements
1. Procurement management plan 1. Procurement audits 1. Closed procurements
2. Procurement documents 2. Procurement negotiation 2. Organizational process assets
Completing and settling each project procurement, including the resolution of any open items, and closing each
procurement applicable to the project or a project phase
(1) Procurement Audits: (1) Closed Procurements:
Reviews of the procurement process to determine Confirmation that project has met all customer requirements for the
if they are meeting the right needs. product of the project (This is Not Close Project, See Next Slide).
Should occur all the way through the Contract The customer has formally accepted the project results & deliverables.
Closeout Process. Kicks off the beginning of the Warranty Period.
Purpose: Identify Lessons Learned and determine
areas of improvements. (2) Organizational Process Assets Updates:
Contract File: Complete set of indexed contract documentation,
Characteristics of Closing: including the closing contract.
High Probability of Completing the Project. Deliverable Acceptance: Formal Written Notice by the buyer to the
Stakeholders have Least Amount of Influence. seller, that the deliverables have been accepted or rejected.
Costs Are significantly Lower in this Process. Lessons Learned Documentation: Developed in conjunction with
Weak Matrix Organization tends to experience the suppliers/contractors, and subcontractors.

Least amount of Stress during Closeout. Force Majeure: A powerful and unexpected event, such as hurricane or
other disasters.
Release Project Team Members: Contract Termination: Buyer, Mutually Agreed, Seller (Breach/Default).
Releasing team members and let them go to their Functional Managers or another Projects.
Communicating any short term plans to Functional Managers for the return of Employees.
Celebrating the Accomplishment of the Project to recognize the End of the Project.
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(4.4) Close Procurements (Contd)
1. Procurement management plan 1. Procurement audits 1. Closed procurements
2. Procurement documents 2. Procurement negotiation 2. Organizational process assets
Completing and settling each project procurement, including the resolution of any open items, and closing each
procurement applicable to the project or a project phase
(A) Close Project or Phase Process (Integration):
Involves performing the project closure portion of Project Management Plan. Used to closeout overall Project when completed.
(1) Administrative Closure Procedure:
(2) Contract Closure Procedure: To Legally Protect both Parties Interests
Details all Activities, Interactions, Roles &
Ensures all activities to settle and close projects contracts are
Responsibilities. Includes integrated activities
developed and executed during Close Procurements Process.
needed to:
(1) Product Verification: All Works Completed Correctly & Satisfactorily.
(a) Collect Project Records.
Administrative
(2) Financial Closure.
(b) Analyze project success & failure.
(3) Records Management System.
(c) Gather Lessons Learned.
(4) Final Contract Performance Reporting.
(d) Archive Project Information.
(5) Contract File.
(6) Formal Acceptance, Sign Off, and Contract Closure.
Customer Satisfaction
Final Lessons Learned with Closing the
Contract
Team members and End User (B) Close Procurements Process (Procurements):

Project Hand Over
Release Resources Done when the Contract is Finished or Terminated. All Contracts must be
Celebration Closed. Termination may occur: Inability, Budget overrun, Lack of Resources
etc.
Formally The PM performs Procurement Audits for Procurement Process for each
Closing the Project or contract, then administratively closes the Contract.
Project Phase The PM develops Lessons Learned in conjunction with Suppliers,
Contractors, Subcontractors etc..
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(5) Cost Management

Centers around Cost and Budget
1. Plan Cost Management
2. Estimate Costs
3. Determine Budget
4. Control Costs

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(5) Cost Management

(5.1) Plan Cost Management
1. Project management plan 1. Expert judgment 1. Cost management plan
2. Project charter 2. Analytical techniques
Establishing the policies, procedures, and documentation for planning, managing, expending, and
controlling project costs
(3) Enterprise Environmental Factors: (2) Analytical Techniques: (1) Cost Management Plan:
Market place conditions; and Strategic options to fund the project: Can establish the following:
Commercial databases. Self-funding Units of measure
Funding with Equity Level of precision
(4) Organizational Process Assets: Funding with Debit Level of accuracy
Cost estimating policies. Commercial databases. Organizational procedures links
Cost estimating templates. Finance project resources, such as: Control Thresholds
Historical information. Making Rules of performance measurement
Project files & team knowledge.

Purchasing Reporting format
Renting, Leasing Process description
Strategic funding.. Etc.
Chart of Accounts:
Coding system used by finance department.
Code of Accounts is an association between charts and WBS.
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(5) Cost Management

(5.2) Estimate Costs
1. Cost management plan 1. Expert judgment 1. Activity cost estimates
2. Human resource management 2. Analogous estimating 2. Basis of estimates
plan 3. Parametric estimating 3. Project documents updates
3. Scope baseline 4. Bottom-Up estimating
4. Project schedule 5. Three point estimates
5. Risk register 6. Reserve analysis
6. Enterprise environmental factors 7. Cost of quality
7. Organizational process assets 8. Project management estimating
software
9. Vendor bid analysis
10.Group decision-making techniques
Developing an approximation of the costs of the resources needed to complete project activities
(2) Analogous Estimating: (6) Reserve Analysis:

Uses values such as scope, cost, budget, and Also called Contingency Allowance.
duration of scale such as size, weight, and To deal with anticipated, but not certain events (Known
complexity from previous similar projects unknowns).
Different than Management Reserve (Unknown unknowns).

(3) Parametric Estimating: (9) Vendor Bid Analysis:
Uses a statistical relationship between historical. Analyzes vendors bids to determine cost estimates
and other variables (Sq Ft, lines of codes SW etc.). for certain activities Vendor Bid Analysis.
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(5) Cost Management

(5.2) Estimate Costs (Contd)
1. Cost management plan Expert judgment 1. 1. Activity cost estimates
2. Human resource management Analogous estimating 2. 2. Basis of estimates
plan Parametric estimating 3. 3. Project documents updates
3. Scope baseline Bottom-Up estimating 4.
4. Project schedule Three point estimates 5.
5. Risk register Reserve analysis 6.
6. Enterprise environmental factors Cost of quality 7.
7. Organizational process assets 8.
Project management estimating
software
9. Vendor bid analysis
10.Group decision-making techniques
Developing an approximation of the costs of the resources needed to complete project activities
Costs Estimates: [ (Estimate Actual )/Actual ] x 100
Fixed Costs Nonrecurring costs that do not change based on the
Estimate Type From Actual number of units.
Rough Order of Magnitude (ROM) -50% to 100% Variable Costs Costs that rise directly with the size of the project.
Order of Magnitude Estimate 25% to 75%
Direct Costs Costs incurred directly by a specific project.
Budgetary Estimate 10% to 25%
Indirect Costs Costs that are part of the overall organization's cost

Definitive Estimate 5% to 10% of doing business and are shared among all.
Opportunity Cost: The cost of choosing one project over another. This foregoes the potential benefits of another
alternative; it is the value of Lost Opportunity. Future Dimension (Requires No Calculations).
(NPV Project A: $270 K , and NPV Project B: $190 K, then Opportunity Cost of selecting Project A is $190 K)
Sunk Cost: The cost already expended. Decisions about continuing investments should ignore every sunken cost. Past
Dimension. Dont Cry over Spilt Milk
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(1) Benefit Cost Ratio (BCR):
A ratio attempting to identify the relationship between the Benefits and Costs of a proposed project.
Used to measure both quantitative and qualitative factors since sometimes Benefits and Costs cannot be measured exclusively in financial terms.
Benefits are the same as REVENUE (Pay Back).
Represents the Ratio of Total Benefits on Total Costs, both discounted as appropriate. The formula for calculating BCR is:
Description Value
Example:
Pay Back (Revenue) / Benefits 4,000 Benefit Cost Ratio
Profit 1,000 = Revenue (Pay Back) / Costs
= 4,000 / 2,000 = 2
Cost 2,000
Life Cycle Cost 5,200
(2) Pay Back Period Analysis: (Cash Flow) Year Project A Project B
Time taken to Break Even or Payback initial investment Cash Flow Cash Flow
0 -1000 -1000

1 500 100
Year1 Year2 Year3 Year4
2 400 300
Project A 3 300 400
Project B 4 100 600
Payback 2.33 yrs 3.33 yrs
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(3) Return On Investment: (ROI) (Net Income) (6) Net Present Value: (NPV)
Cash Invested = 1,000 Difference of discounted cash flows and discounted expenses
Project A: occurring over the products life cycle.
Avg Annual Income= (500+400+300+100)/4 =325 Uses Discounted Cash Flow (DCF) technique:
ROI = (325/1,000)*100 = 32.5% 500 400 300 100
NPV A = - 1000+ + + + = 78. 82
Project B: (1 + 0.10) 1 (1 + 0.10) 2 (1 + 0. 10) 3 (1 + 0. 10) 4
Avg Annual Income = (100+300+400+600)/4=350 100 300 400 600
ROI = (350/1,000)*100 = 35.0% NPV B = - 1000+ 1
+ 2
+ 3
+ = 49. 18
(1 + 0. 10) (1 + 0.10) (1 + 0.10) (1 + 0.10) 4
(4) Time Value of Money: FV = PV * (1+i)n If NPV > 0 Accept Project

If NPV < 0 Reject Project
FV: Future Value, PV: Present Value
If NPV > 0 For both projects, Choose the Largest value
i: Interest rate, n=No. of years
Example:
FV(1,000) = 1,000 * (1+0.1)1 = 1,000*1.1 = 1,100
(7) Internal Rate of Return: (IRR)
The discount rate that makes the PV( inflows) = PV (outflows )
(5) Present Value: PV = FV /(1+i)n Requires Iterative calculation using different Interest Rates.
PV of various investments can be compared to arrive at IRR has to be GREATER than the Cost of Capital to be taken
the appropriate decision. forward.
Project A worth More than Project B Use a (financial) calculator or a computer.

Cost of Capital Project A Project B
i = 15% For project A, the IRR that solves this equation is 14.5%
For project B, the IRR that solves this equation is 11.8%
Yields 10,000 12,000
Period In 2 years In 4 years
Present Value (PV) 7,561 6,861

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Depreciation Costing Methods:
Records the decreases in the Asset Value, hence it is a fixed cost to production.
It is used to allocate the initial investment in the asset as an expense over the life of the asset communicated to stakeholders.
Example: Depreciation Calculations for an Asset Cost of $ 100K over an Asset Life of 4 years
Asset Life is Straight Line Sum of Years Digits Declining Balance Double Declining
4 Years Depreciation Assumed Salvage Depreciation Balance
Assumed Salvage (10K) (Accelerated) (Rapid Declining)
(10K)
Annual Depreciation (100K-10K)/4 = 22.5K Sum of Years Digits = Assumed 20% 2 * (1/ Asset life) =
1+2+3+4=10
First Year 22.5 (100K-10K)*4/10 = 100 * 20% = 100 * =
Depreciation 36K 20K 50K
Second Year 22.5 90K * 3/10 = (100K 20K)* 20%= (100K 50K)* =
Depreciation 27K 16K 25K
Third Year 22.5 90K * 2/10 = (100K 20K 16K) (100K 50K 25K)*
Depreciation 18K *20% = =
12.5K

12.8K
Fourth Year 22.5 90K * 1/10 = (100K-20K-16K-12.8K) *20% (100K - 50K - 25K
Depreciation 9K = 12.5K)* =
10.24 6.25K
Remaining Value 10K 10K 40.96K 6.25K
After 4 Years
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(5.3) Determine Budget
1. Cost management plan 1. Cost aggregation 1. Cost baseline
2. Scope baseline 2. Reserve analysis 2. Project funding requirements
3. Activity cost estimates 3. Expert judgment 3. Project documents updates
4. Basis of estimates 4. Historical relationships
5. Project schedule
5. Funding limit reconciliation
6. Resources calendars
7. Risk register
8. Agreements
9. Organizational process assets Aggregating the estimated costs of individual activities or work packages
to establish a cost baseline for measuring project performance
Cost Budgeting Tools and Techniques:
Similar to Cost Estimating Techniques. (1) Cost Baseline: The difference between the
1. Analogous (Similarity) Top-Bottom. Used as a basis against which to measure, maximum funding and the end
2. Parametric estimating. monitor, and control overall cost of the cost baseline is called
3. Bottom-Up estimating. performance on the project. Management Reserve
4. Computerized. (Unknown unknowns)
Referred as Performance Measurement
5. Other Cost Budgeting Methods. Funding
Baseline (PMB).
Requirements
Cumulative Values
(5) Funding Limit Reconciliation:
Expenditure of funds is reconciled with Value Engineering: Finding Less Cost
the funding limits set by the customer or Costly ways to do the same scope of work. Baseline

performing organization. Life-cycle costing, together with value
Expected
engineering techniques, can improve
Life-Cycle Costing: Cash Flow
decision-making and is used to reduce
Cost of the Whole Life of Product
cost and execution time and to improve
Products Life-Cycle costs include; project
the quality and performance of the
cost, operating costs, maintenance costs,
project deliverable.
support, delivery, etc. Time
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(5.4) Control Costs
1. Project management plan 1. Earned value management 1. Work performance information
2. Project funding requirements 2. Forecasting 2. Cost forecasts
3. Work performance data 3. To-complete performance index 3. Change requests
4. Organizational process assets (TCPI) 4. Project management plan updates
4. Performance reviews 5. Project documents updates
5. Project management software 6. Organizational process assets
6. Reserve analysis updates
Influencing the factors that create cost variances and controlling changes to the project budget
Control Costs Includes:
Influencing the factors that create changes to the cost
baseline.
Ensuring requested changes are agreed upon.
Managing the actual changes when and as they occur. Project
Budget
Assuring the potential cost overruns do not exceed the
Management
authorized funding periodically and in total for the project. Reserve
Monitoring cost performance to detect and understand Control
variances from the cost baseline. Account
Recording all appropriate changes accurately against the

Contingency
cost baseline. COST Reserve
BASELINE
Preventing incorrect, inappropriate, or unapproved changes Activity
from being included in the report cost or resource usage. Contingency
Reserve
Informing appropriate stakeholders of approved changes. Work Package
Acting to bring expected cost overruns within acceptable Cost Activity Cost
Estimates Estimates
limits.
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(5) Cost Management

(5.4) Control Costs (Contd)
1. Project management plan 1. Earned value management
Work performance information 1.
2. Project funding requirements 2. Forecasting Cost forecasts 2.
3. Work performance data 3. To-complete performance index
Change requests 3.
4. Organizational process assets 4. Performance reviews
Project management plan updates 4.
5. Project management software
Project documents updates 5.
6. Reserve analysis Organizational process assets 6.
updates
(3) Work performance data: (2) Forecasting:

Completed and incompleted deliverables. Making estimates or predictions of conditions in the
Costs authorized and incurred. projects future based on present. Next Slide.
Estimates to complete schedule activities. Earned Value Technique parameters of BAC, AC,
% physically complete of the schedule and CPI are used to evaluate:
activities. EAC: Estimate At Completion.
ETC: Estimate To Complete.
(3) To-Complete Performance Index (TCPI): (4) Performance Reviews:

Variance Analysis:

The calculated projection of cost performance
that must be achieved on the remaining work to Cost variances are calculated using performance
meet a specified management goal such as BAC Measurement & EVM.
or the EAC. Next Slide. Planned Value (PV), Earned Value (EV) and, Actual Cost
(AC) are continuously monitored (S-Curve).
Trend Analysis
Earned Value Performance.
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(5) Cost Management

(1) Earned Value Analysis (EV): Performance Measurement EAC
Integrates Scope, Cost and Schedule. Assess Performance VAC

Helps to assess Project Performance
BAC
Cumulative Values
PV (Planned Value): Budgeted Cost of Work Scheduled.
(Value of the amount of work that was planned to be Accomplished) CV
AC
WBS, Budget, (Scheduled)
SV
AC (Actual Cost): Actual Cost of Work Performed. PV
(Total of Costs incurred in accomplishing work) EV
Measuring Actual Spending 22 24
Data Scheduled Actual
TIME
EV (Earned Value): Budgeted Cost of Work Performed Date Completion Completion
Date Date
(Value of Work Actually Completed) Earned
= % Work Completed x Project Budget BAC = Budget At Completion
SV (Schedule Variance) = EV-PV ( +$ = Ahead of Schedule and -$ = Behind Schedule)
CV (Cost Variance) = EV-AC ( +$ = Spending Less than Planned and -$ = Over Spending)
Performance Indicators:
SPI = EV/PV (Schedule) ( > 1 Ahead of Schedule trend) (Schedule Performance Index)

CPI = EV/AC (Cost) ( > 1 Spending Less trend) (Cost Performance Index)
20-80 Rule and 0-100 Rule:
Reporting Work Completed (Earned Value) 50-50 Rule: Allowing different percentages of
50% of the Earned Value is credited as earned value when the activity begins the Earned Values to be claimed at
The remaining 50% of the Earned Value is not credited until all of the work is completed the start and completion of the work
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EAC
Project Statistical Forecasts: VAC
Atypical Typical BAC
Cumulative Values
(Variances are (Same Type of Variance
not Typical ) Continue). Same Rate of Spending CV
Use Remaining Use CPI AC
Budget SV
ETC (Estimate Low End: PV
To Complete) = (BAC EV)/ CPI EV
= BAC EV 22 24
High End: Actual
TIME Data Scheduled
= (BAC EV)/ (CPI x SPI) Date Completion Completion
Date Date
EAC (Estimate = BAC / CPI
At Completion) EV Curve
= AC + ETC (Original Estimate was Flawed) BAC
= AC + ETC EV 01-Mar-13
ETC
VAC Works
(Variance At = BAC- EAC AC Curve

Completion) EAC
TCPI AC 01-Mar-13
ETC
When BAC is no longer Viable, then new BAC=
(To-Complete EAC Funds
Performance ETC Works
Index
TCPI = (BAC-EV) / (BAC(new)-AC)
ETC Funds
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EAC
Project Statistical Forecasts Summary: VAC
Method 1: (BAC is FIXED & CPI is FIXED) assumes that the BAC
Cumulative Values
rate of progress to date will continue to prevail and is
expressed as: CV
AC
EAC = BAC/CPI
SV
PV
Method 2: (BAC is NOT FIXED) requires that we determine the
EV
Actual Cost as of to-date (AC), and Re-Evaluate the amount of 24
22
works that are still to be Completed (ETC). This is expressed as: Data Scheduled Actual
TIME
EAC = AC + ETC Date Completion Completion
Date Date
Method 3: (Atypical) assumes that work from a specified EV Curve

point forward will progress at Planned rates (CPI=1)
BAC
whether or not these rates have prevailed to this point. This EV 01-Mar-13
ETC
is expressed as: Works
EAC = AC + (BAC-EV) AC Curve

EAC
Method 4: (Typical) assumes that work from a specified point AC 01-Mar-13
ETC
forward will progress at Actual rates (Based on CPI) whether or Funds
not these rates have prevailed to this point. This is expressed as:
EAC = AC + (BAC-EV)/CPI
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1. Project management plan 1. Earned value management
2. Project funding requirements 2. Forecasting Cost forecasts 2.
3. Work performance data 3. To-complete performance index
Change requests 3.
4. Organizational process assets 4. Performance reviews
5. Project management software
Project documents updates 5.
6. Reserve analysis Organizational process assets 6.
updates
(4) Performance Reviews: (1) Work Performance Information:

Compared cost performance over time. Calculated CV, SV, CPI, and SPI values for WBS
Schedule Activities overrun or underrun components, are documented and communicated to
budget (Planned Value). stakeholders.
Milestones Due or Met. (2) Cost Forecasts:
Performance-Reporting Techniques: Either Calculated EAC; or
1. Variance analysis: Actual Planned A Performance organization-reported EAC value is
Cost and Schedule (Quality/Risk). documented and communicated.

2. Trend Analysis: Examining performance
over time (Improving or Deteriorating). (6) Organizational Process Assets updates:
3. EVM: Compares Planned Performance Lessons learned are documented.
to Actual Performance. Includes Root Causes of Variances.
Reasoning behind the corrective action chosen.
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(5) Cost Management

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(6) Quality Management

Measures overall performance, monitors project results, and
compares them to Quality Standards set in the planning Phase
1. Plan Quality Management
2. Perform Quality Assurance
3. Control Quality

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(6.1) Plan Quality Management
1. Project management plan 1. Cost-benefit analysis 1. Quality management
2. Stakeholder register 2. Cost of Quality (COQ) plan
3. Risk register 3. Seven basic quality tools 2. Process improvement
4. Requirements documentation 4. Benchmarking plan
5. Enterprise environmental 5. Design of experiments 3. Quality metrics
factors 6. Statistical sampling 4. Quality checklists
6. Organizational process 7. Additional quality planning tools 5. Project documents
assets 8. Meetings updates
Identifying which quality standards are relevant to the project and determining how to satisfy them
Quality Management Approach: Precision: Consistency that the value repeated

Compatible with International Organization for Standardization measurements are clustered and have little scatter.
(ISO) [Greek word (isos) means equal ]. Accuracy: Correctness that measures the value is
Proprietary Approaches: Deming, Juran, Crosby and Taguchi Six very close to the true value.
Sigma, Quality Function Deployment, CMMI etc. Example:
Non-Proprietary: Total Quality Management (TQM), Failure Mode PRECISE measurements are not necessarily
& Effect Analysis (FMEA), Design Reviews, Voice of the Customer accurate, while a very ACCURATE measurement
(VOC), Cost of Quality (COQ), and Continuous Improvement. is not necessarily precise.

Quality: The degree to which a set of inherent characteristics fulfill Accuracy
requirements. True Value
10.8
Grade: Category assigned to products or services having the same
functional use but different technical characteristics. 10.7
10.6 Precision
Example: A software product can be of high QUALITY (no defect,
10.5
readable manual etc.) and low GRADE (Limited Number of features).
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(6.1) Plan Quality Management (Contd)
Modern Quality Management: Complements project management, both recognize the importance of:
Customer Satisfaction: Conformance to requirements and fitness for use.
Prevention or Inspection: Cost of preventing defects is much less than the cost of correcting them, as revealed by inspection.
Management Responsibility: Success requires the participation of all members of the team.
Continuous Improvement: The Plan-Do-Check-Act is the basis for quality improvement (by Shewhart & modified by Deming).
The cost of quality refers to the total cost of all efforts related to quality.
Project decisions can impact operational costs of quality as a result of product returns, warranty claims, and recall campaigns.

(1) Cost-Benefit Analysis:
Quality planning must consider Cost-Benefit tradeoffs.
The Primary Cost of meeting quality requirements is: the expense associated with Project Quality Management activities.
The Primary Benefit of meeting quality requirements is: less work, which means higher productivity, lower costs, and
increased stakeholder satisfaction.
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(2) Cost of Quality (COQ): (A) Cost of Conformance: This includes

The total costs incurred by investment in preventing nonconformance to Costs for planning & Training
requirements, appraising the product or service for conformance to A policy of building right the first time
requirements, and failing to meet requirements (rework). Process control and field-testing & Calibration
Costs to produce the product or service of the project according to the Process & product design validation
quality standards. THREE Costs: Testing, evaluation and quality audits
1. Prevention Costs: Defects-Free Away from Customers. Cost of Quality Maintenance
Planning, Training, Design Review etc. (B) Cost of Nonconformance: This includes

2. Appraisal Costs: Costs to Examine product or process. Example: Cost Rework and Scrap
of Inspection and Testing. Expediting
3. Failure Costs: Cost of things that dont go according to Plan: Additional material and inventory
A. Internal Failure Costs: Customer Requirement NOT Satisfied Warranty repairs or service
Costs: Corrective Action, Rework, Scrapping, and Downtime Complaint handling
B. External Failure Costs: Product Delivered and Not Satisfied Liability judgment
Costs: Inspections on-site, Returns, Customer Service Costs Product recalls
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(3) Seven Basic Quality Tools:

Known as the 7QC Tools.
Are used within the context of the (Plan, Do, Check, Act) (PDCA) Cycle to solve quality-related problems.
1. Cause-and-effect-diagrams: Also known Fishbone diagrams or as Ishikawa diagrams. Asking Why several times.
2. Flowcharts: Also referred to as Process Maps because they display the sequence of steps and branching possibilities that
exist for a process. It shows the order of processing by mapping the operational details of procedures that exist within a
horizontal value chain of a SIPOC (Suppliers-Inputs-Process-Outputs-Customers)
3. Checksheets: Known as Tally sheets and may be used as a checklist when gathering data.
4. Pareto Diagrams: Special form of vertical Bar Chart and are used to identify the vital few sources that are responsible

for causing most of the problem effects; representing the 80-20- Rule.
5. Histograms: Special form of Bar Charts that are used to describe the central tendency, dispersion, and shape of a
statistical distribution. It does not consider the influence of time on the variation that exists within a distribution.
6. Control Charts: Determine whether or not a process is stable or has predictable performance. Upper and lower
specification limits are based on requirements of the agreement.
7. Scatter Diagrams: Plot ordered pairs (X,Y) and are sometimes called correlation charts because they seek to explain a
change in the dependant variable, Y, in relationship to a change observed in the corresponding independent variable, X.
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Project Management Institute, A Guide to Project
Seven Basic Quality Tools
Management Body of Knowledge (PMBOK
Guide)- Fifth Edition, Project Management
Institute, Inc, 2013, Fig: 8-7, Page 239
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Thresholds: Acceptance Criteria:

Defined as Cost, Time, or Resource values Includes performance requirements and essential conditions that must
used as parameters, and can be part of be achieved before project deliverables are accepted.
the project scope statement. (4) Benchmarking:
The quantitative point at which an action Comparing Actual or Planned Project Practices to other projects for
is triggered, especially a lower limit. improvement and performance measure.
Standard and Regulation: (5) Design of Experiments:

Standard: Approved and Recognized Statistical Methods to define which factors influence specific
by Recognized Body. Not Mandatory. variables.
Applied to the Product.
Regulation: Imposed by Most important aspect of this technique is that it provides a
Government/Institutes. Mandatory with statistical framework for systematically changing all of
Fine/Penalty. important factors, instead of changing factors one at a time.
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(7) Additional Quality Planning Tools:
Brainstorming: Liberating people from their disciplined way of thinking, to get them to look far-a field from conventional thinking.
Right Brain activity.
Affinity Diagrams: KJ method (Author: Kawakita Jiro)
Opposite of a cause and effect diagram. Developed to discover meaningful groups of ideas within a raw list.
Used when facts or thoughts are uncertain and need to be organized, and to be clarified. (Creative rather than Logical)
Force Field Analysis: (Driving Forces Restraining Forces)
A method for listing, discussing, and evaluating the various forces for and against a proposed change.
Helps look at the big picture by analyzing all of the forces impacting the change and weighing the pros and cons.

Nominal Group Technique: (Small group to produce a large number of ideas in a relatively short period of time)
Used to generate many, creative ideas, to ensure everyone is heard. To build consensus when there is conflict.
Matrix Diagrams: Shows the relationship between two, three or four groups of information. It also can give information about the
relationship, such as its strength, the roles played by various individuals or measurements.
Prioritizing Matrices: Are useful for applying a systematic approach to weighting/prioritizing criteria towards evaluating solutions
against the criteria. Having customers prioritize wants and Prioritizing functional and design requirements.
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Total Quality Management (TQM): International Organization for Standardization (ISO):

A management approach for an organization, centered on A family of international standards for quality management and assurance,
quality, based on the participation of all its members and that covers design, procurement, production, quality assurance, and
aiming at long-term success through customer satisfaction, and delivery processes for everything from banking to manufacturing.
benefits to all members of the organization and to society.
Requires that the company maintain this quality standard in all Organizational Project Management Maturity Model (OPM3):
aspects of its business. Continuous improvement model which is developed by PMI.
Requires ensuring that things are done right the first time and It covers project management practices within performing
that defects and waste are eliminated from operations. organizations.

It uses Benchmarking to achieve observable improvements, and to
Gold Plating: generate ideas for process improvement.
Gold Plating is when project manager interprets the
scope/specification in a certain way and decides to add Occupational Safety and Health Administration (OSHA):
bells and whistles that were not in the original scope. Sets standards for the safety of American workers.
Just In Time (JIT): Capability Maturity Model (CMM):

An inventory strategy that reduces in-process inventory. Continuous improvement model which is developed by the Software
Engineering Institute (SEI) covering software development.
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1. Philip Crosby: (Zero Defects Practice, Quality is Free)
Quality is defined as conformance to requirements, not as goodness or elegance.
The system for causing quality is prevention, not appraisal.
Dr. Genichi Taguchi: Quality is planned in, not inspected in
Performance standard must be zero defect, not close enough.
Optimization of Processes and Actual Product/Service.
The measurement of quality is the price of non-conformance. Developed Design of Experiments (DOE).
2. Joseph Juran: (Fitness for Use)
Focused on methods of quality improvement.
Six Sigma (Process Quality Goal) created at Motorola in the 80s to achieve breakthrough results based on
fundamentals of Juran. (Sigma is a statistical measure of variability in a process).
Six Sigma capability means 12 STD of process output between the upper and lower specification limits.
Therefore, no more than 3.4 parts per million fall outside of the specification limits.
Six Sigma provides the techniques and tools to improve the capability and reduce the defects in any process.
Uses a methodology known as DMAIC (Define opportunities, Measure performance, Analyze opportunities, Improve
performance, Control performance).
3. W. Edwards Deming: (85% of the Cost of Quality is a Management Problem) Rule of 85 Plan-Do-Check-Act
It is not enough to just do your best or work hard. You must know what to work on.
85% of a workers effectiveness is determined by the system he works in, only 15% by his own skill.
When you understand the importance of quality and timeliness of inputs from suppliers, youll stop buying on low-bid.
Monitor outputs throughout i.e. prevention over inspection.

4. Kaizen Approach: (Japanese term for Continuous Improvement Activity) (Kai-Alter, Zen-Improve)
Making small, incremental improvements over an extended period of time.
Kaizen Event is new developed methodology that significantly accelerates the Kaizen process and produces dramatic
results in a week or less.
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(1) Quality Management Plan: (2) Process Improvement Plan:
Describes how the project management team will Subsidiary of the project management plan.
implement the performing organizations quality policy. Details the steps for analyzing processes that will
Provides input to the overall project management plan. facilitate the identification of waste and non-value
Must address Quality Control (QC), Quality Assurance added activity:
(QA), and continuous improvement for the project. A. Process boundaries.
B. Process Configuration.
C. Process metrics.
D. Targets for improved performance.

(3) Quality Metrics: (4) Quality Checklists:
Describe what something is and how the quality control Structured tool, used to verify that a set of required
process measures it. steps has been performed.
Are used in QA and QC processes. They are usually phrased as imperatives Do this.
Examples: Defect Density, Failure Rate, Availability, Might be available from professional organizations or
Reliability, and Test Coverage. commercial service providers.
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(6.2) Perform Quality Assurance
1. Project management plan 1. Quality management and control 1. Change requests
2. Process improvement plan tools 2. Project management plan updates
3. Quality metrics 2. Quality audits 3. Project documents updates
4. Quality control measurements 3. Process analysis 4. Organizational process assets
5. Project documents updates
Applying the planned, systematic quality activities to ensure that the project employs all processes needed to meet
requirements
(1) Quality Management and Control Tools:
1. Affinity diagrams: (2) Quality Audits:
2. Process Decision Program Charts (PDPC) Review Quality Management Activities.
3. Interrelationship Digraphs Measure Progress & Identify Corrective Actions.
4. Tree Diagrams Identify Lessons Learned. Performed on Regular or
5. Prioritization Matrices Random basis.
6. Activity Network Diagrams If Applied Correctly then the Benefits:
7. Matrix Diagrams 1. Gained Fit Product and Meets Safety Standards.
2. Adhered to Applicable Laws and Standards.
3. Correctives actions identified and implemented.
4. Quality Plan is adhered to.

5. Quality Improvement are identified.
(3) Process Analysis:
Follows the steps outlined in the process improvement.
Examines problems experienced, constraints
Project Management Institute, A Guide to Project
Management Body of Knowledge (PMBOK Quality Management experienced, and non-value-added activities.
Guide)- Fifth Edition, Project Management and Control Tools
Institute, Inc, 2013, Fig: 8-10, Page 246 Includes: Root Cause Analysis
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(6.3) Control Quality
1. Project management plan 1. Seven basic quality tools 1. Quality control measurements
2. Quality metrics 2. Statistical sampling 2. Validated changes
3. Quality checklists 3. Inspection 3. Verified deliverables
4. Work performance data 4. Approved change requests 4. Work performance information
5. Approved change requests review 5. Change requests
6. Deliverables 6. Project management plan updates
7. Project documents 7. Project documents updates
8. Organizational process assets 8. Organizational process assets
updates
Monitoring specific project results to determine whether they comply with relevant quality standards and
identifying ways to eliminate causes of unsatisfactory performance
Prevention: Keeping errors out of the processes. Attribute (Discrete) sampling: The result
Inspection: Keeping errors out of the hands of the customer. conforms, or it does not. Gender, True/False,
Excellent, Good, Poor.
Special causes: Unusual events. Variables sampling: The result is rated on a
Common causes: Normal process variation (Random Causes). continuous scale that measures the degrees
of conformity. Ages, Counts, Speed,

Tolerances: The result is acceptable if it falls within range Percentages etc.
specified by the tolerance. Mutual Exclusive: Two events cannot
Control Limits: The process is in control if the result falls within occur in a single trial.
the control limits. Statistically Independent: The probability
of one event occurring does not affect the
probability of another event occurring.
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(6.3) Control Quality (Contd)
updates
(1) Cause and Effect Diagram:
Ishikawa Diagram or Fishbone Diagram
How various Factors linked to Potential Problems or Effects.
Potential Causes Effect
Time Machine Method Material
Major
Defect
Energy Measurement Personnel Environment

(2) Flowcharts:
Help analyze how problems occur.
Graphical presentation of a process.
Show activities, decision points, and order processing. The SIPOC Model Project Management Institute, A Guide to Project
Management Body of Knowledge (PMBOK Guide)-
Mapping the operational details of procedures that exist Fifth Edition, Project Management Institute, Inc, 2013,
within a horizontal value chain of a SIPOC model. Flowcharts Fig: 8-6,7, Page 237 & Page 239
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updates
(3) Checksheets:
Also known as tally sheets and may be used as a
checklist.
Used to organize facts in a manner that will facilitate
effective collection of useful data about potentional
quality problem

Useful for gathering attributes data while performing
inspections to identify defects.
Example: data about the frequencies or consequences
of defects collected in checksheets are often displayed
using Pareto diagrams
Checksheets Project Management Institute, A Guide to Project Management
Body of Knowledge (PMBOK Guide)- Fifth Edition, Project
Management Institute, Inc, 2013, Fig: 8-7, Page 239
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updates
40 100
(4) Pareto Chart: (To identify and evaluate nonconformities)
Percentage of Defective Cases

Histogram ordered by Frequency of Occurrence
No. of Defective Cases

80
nt tive
Small number of causes will typically produce a large majority of the problems 30 75
e
rce la
ag
or defects.
Pe mu
Cu
80/20 principle. 80% of the problems are due to the 20% of the causes.
Fix problems that are causing the greatest number of defects first. 20 50
Frequency by

Cause
(5) Histograms: 10 25
Special form of Bar Chart to describe the central
tendency, dispersion, and shape of statistical
distribution.
Help identify the cause of problem in a process
Wobble
Rotation
Axle
Others
Pressure
Noise
Color
Project Management Institute, A Guide to Project Management
by the shape and width of the distribution Body of Knowledge (PMBOK Guide)- Fifth Edition, Project Causes
Management Institute, Inc, 2013, Fig: 8-7, Page 239
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updates
Project Management Institute, A
Guide to Project Management
(6) Control Charts: Body of Knowledge (PMBOK
Guide)- Fifth Edition, Project
Graphical Display of the Results over time. Management Institute, Inc, 2013,
Fig: 8-7, Page 239
Determine if the process is in control, Stable or has predictable performance.

Answers: Are the process variables within acceptable limits?
Upper Control Limit and Lower Control Limit are usually set at +/- 3 Sigma (STD).
Assignable Cause

Upper Specification Limit (USL)
OR Special Cause Outlier
Rule of Seven: Rule of Thumb or Heuristic Upper Control Limit (UCL)
Non-random data points grouped together in a series that Rule of Seven
TOTAL SEVEN on one side of the MEAN (upper or lower). Mean
Although none of these points are outside the Control Limits,
Lower Control Limit (LCL)
they are not Random and the Process is Out of Control.
This type of Situation should be investigated to find the Cause. Lower Specification Limit (LSL) Common Cause Outlier
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updates
(7) Scatter diagrams: (3) Inspection:
Show the pattern of relationship between two variables. Measure, Examine, Test results conformance.
Dependent variables versus independent variables are plotted. Can be conducted at any level.
The closer the points are to diagonal line, the more closely they are related. Called: Reviews, Audits and Walkthroughs.
Run chart:
Shows the history and pattern of variation. Y
Line graph with data points plotted in the order they occur.
Shows trends in a process over time, and variations over time.

Scatter Diagram
Trend analysis is performed using Run Charts. It involves: X
1. Mathematical Techniques to forecast future outcomes based on historical results.
2. Monitor Technical Performance & Cost & Schedule Performance. Y
(2) Statistical sampling:
Choosing part of the population of interest for inspection. Run Chart
Appropriate sampling can often reduce the cost of quality control. Time
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(7) Risk Management

Identifying and Planning for Potential Risk to increase the
probability and impact of positive event, and decrease the
probability and impact of negative events in the project.
1. Plan Risk Management
2. Identify Risks
3. Perform Qualitative Risk Analysis
4. Perform Quantitative Risk Analysis
5. Plan Risk Responses
6. Control Risks

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(7.1) Plan Risk Management
1. Project management plan 1. Analytical techniques 1. Risk management plan
2. Project charter 2. Expert judgment
3. Stakeholder register 3. Meetings
Defining how to conduct risk management activities for a project
Project risk is an uncertain event or condition that, if it occurs, has a positive or negative affect on at least one
project objective, such as time, cost, scope, or quality.
Project risk has its origins in uncertainty that is present in all projects.
(1) Risk Management Plan: Includes; Project

Methodology.
Roles and Responsibilities.
Technical External Organizational Project
Budgeting & Timing. Management
Risk Categories: Risk Breakdown Structure (RBS). Requirements Subcontractors Project
Definitions of Risk Probability and Impact: Suppliers Dependencies Estimating

Probability: Very Unlikely to Almost Certain Technology Regulatory
Resources
or numeric (0.1, 0.3, 0.5, 0.7, 0.9). Planning
Impact: Very Low to Very High which are Complexity & Market
Interfaces
assigned values (0.1, 0.3, 0.5, 0.7, 0.9). Funding Executing
The impact scale reflects the significance of impact, Customer
(-) for threats or (+) for opportunities. Controlling
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(7.1) Plan Risk Management (Contd)

Known risks: are those that have been identified and analyzed, and it may be possible to plan those risks using
the processes described in these slides.
Unknown risks: cannot be managed proactively, and a prudent response by the project team can be to allocate
general contingency against such risks, as well as against any known risks for which it may not be cost-effective or
possible to develop a proactive response.
Because of the inherent complexity in both the causes and effects of risk events, a systematic and comprehensive
approach to risk management is required that addresses:
1. the probability of the risk event (how likely is it to occur?);
2. the consequences or outcomes of the risk event (what will the cost to the project be?);
3. the causes or circumstances of the risk event (what will trigger it, and how will it become manifest?);

4. the response appropriate to the risk event (what actions are required if it occurs?);
5. the timeframe in which the risk event is likely to become manifest (when is it likely to occur?); and
6. the likelihood of repetition of the risk event (is it a one-time event or is it likely to recur?).
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(7.1) Plan Risk Management (Contd)

Risks are Prioritized according to their Potential Implications for meeting the projects objective. The typical
approach to prioritizing risks is to use a look-up table or a Probability and Impact Matrix
Defined Conditions for Impact Scales of Risk on Major Project Objectives
(Examples are shown for Negative Impacts only)
I
Ob mpact Very Low / 0.05 Low / 0.10 Moderate / 0.20 High / 0.40 Very High / 0.80
ject Is:
ive When: When: When: When: When:
Cost Insignificant cost Cost increase is <10% Cost increase is Cost increase is Cost increase is>
increase between 10-20% between 20-40% 40%
Time Insignificant time Time increase is <5% Time increase is Time increase is Time increase is
increase between 5-10% between 10-20% >20% time

Scope Scope decrease is Minor areas of scope Major areas of Scope reduction is Project end item is
barely noticeable are affected scope are affected unacceptable to effectively useless
Sponsor
Quality Quality Only very demanding Quality reduction Quality reduction is Project end item is
degradation is applications are requires sponsor unacceptable to effectively useless
barely noticeable affected approval sponsor
Definition of Impact Scales for FOUR Project Objectives, PMBOK Guide, PMI, Fifth Edition 2013, Table 11-1, Page 318
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(7) Risk Management

(7.2) Identify Risks
1. Risk management plan 1. Documentation reviews 1. Risk register
2. Cost management plan 2. Information gathering techniques
3. Schedule management plan 3. Checklist analysis
4. Quality management plan 4. Assumptions analysis
5. Human resource management plan 5. Diagramming techniques
6. Scope baseline 6. SWOT analysis
7. Activity cost estimates 7. Expert judgment
8. Activity duration estimates
9. Stakeholder register
10. Project documents
11. Procurement documents
13. Organizational process assets Determining which risks might affect the project and documenting their
characteristics
(2) Information Gathering Techniques:
Brainstorming: Getting Subject matter experts, etc.
Nominal Group Technique: Participants be together in one room, and note one risk per one piece of paper. The
panel will rank and prioritize them.
Delphi Technique: combines both Brainstorming & NGT: Brainstorming by experts who dont know each other.

Unbiased and avoid influences while identifying risk. Compiled results are sent back to experts for further
review and assessment until consensus is reached.
Great tool that allows consensus to be reached very quickly
Root Cause Identification: Inquires into essential causes of a projects risks. Sharpens the definition and allows
grouping risks by causes
Interviewing: Questions and Answers sessions
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(7.2) Identify Risks (Contd)
1. Risk management plan 1. Documentation reviews 1. Risk register
2. Cost management plan 2. Information gathering techniques
3. Schedule management plan 3. Checklist analysis
4. Quality management plan 4. Assumptions analysis
5. Human resource management plan 5. Diagramming techniques
6. Scope baseline 6. SWOT analysis
7. Activity cost estimates 7. Expert judgment
8. Activity duration estimates
9. Stakeholder register
10. Project documents
11. Procurement documents
13. Organizational process assets Determining which risks might affect the project and documenting their
characteristics
(3) Checklist Analysis:
Based on historical information & Previous Experience. ( 5) Diagramming Techniques:
The lowest level of RBS can also be used as a risk checklist. Cause-and-Effect Diagrams: Ishikawa or Fishbone
( 4) Assumptions Analysis: diagram.
Every project is developed based on a set of System or Process Flow Charts.
hypothesis, scenarios, or assumptions. Influence Diagrams: Graphical representations of

situations showing causal influences, time ordering
(6) SWOT Analysis: Strengths, of events, and other relationships among variables
Weaknesses, Opportunities, and Threats. (1) Risk Register and outcomes.
Risk ID Description Category Symptoms Source Type Cause Time/Frequency
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(7.3) Perform Qualitative Risk Analysis
1. Risk management plan 1. Risk probability and impact 1. Project documents updates
2. Scope baseline assessment
3. Risk register 2. Probability and impact matrix
4. Enterprise environmental 3. Risk data quality assessment
factors 4. Risk categorization
5. Organizational process assets 5. Risk urgency assessment
6. Expert judgment
Prioritizing risks for subsequent further analysis or action by assessing and combining their probability of
occurrence and impact
Identified Risks: (1) Risk Probability and Impact Assessment:
Risks discovered during the risk identification Discovering the probability of a risk event and determining the impact
process are evaluated along with their potential the risk will have if it does occur.
impacts on the project. Risk Probability: The Likelihood that risk will occur.
Business: Loss or Gain. Consequences: The Effect on project objectives if the risk event occurs.
Insurable: Loss only.
High Threat or Opportunity
Data Precision:
Describes the extent to which a risk is known and
P (Occurrence)
understood. High

Measures the extent of data available and its
reliability. Medium
Uncertainty:
Uncertainty of risk often depends on project Risk Exposure = Low
progress. P (Occurrence) X Impact of Occurrence
Early in the Project Life Cycle, Risk is High. Low Impact of Occurrence High
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(7.3) Perform Qualitative Risk Analysis (Contd)
1. Risk management plan 1. Risk probability and impact 1. Project documents updates
2. Scope baseline assessment
3. Risk register 2. Probability and impact matrix
4. Enterprise environmental 3. Risk data quality assessment
factors 4. Risk categorization
5. Organizational process assets 5. Risk urgency assessment
6. Expert judgment
Prioritizing risks for subsequent further analysis or action by assessing and combining their probability of
occurrence and impact
(2) Probability and Impact Matrix (PI): Risk ID 3 Risk ID 4
Low Medium High

To determine if risks should be classified (High, Medium, Low). Risk ID 5
SCORE = P (Risk) x Risk Impact.
Probability
Probability and Impact matrix might be as simple as (Ordinal Scale:
Very Unlikely, Low, Medium, High, Very High) OR (Cardinal Scale: Risk ID 1 Risk ID 7 Risk ID 8
uses Rank ordered values from 1(Very Low) to 10 (Certain) OR 0.1 Risk ID 6
(Very Low) to 1.0 (Certain) ).
Risk Probability: The Likelihood that risk will occur.
Risk ID 9 Risk ID 10 Risk ID 2
Consequences (Impacts): The Effect on project objectives if the risk

event occurs.
Risk Impacts: To determine impacts

Develop Pre-defined measurements.
Low Medium High
Low is 0.2, Med 0.45 & High 0.65. Impact
Further criteria, risk event that falls into Med for Cost will increase cost
by 7-9%. LOW MED HIGH
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(7.4) Perform Quantitative Risk Analysis
1. Risk management plan 1. Data gathering and representation 1. Project documents updates
2. Cost management plan techniques
3. Schedule management plan 2. Quantitative risk analysis and
4. Risk register modeling techniques
5. Enterprise environmental factors 3. Expert judgment
6. Organizational process assets Numerically analyzing the effect on overall project objectives
of identified risks
Relative Likelihood
(1) Data Gathering and Representation Techniques: 0.1 0.1
X axis: Time or Cost
Probability Distribution:
Continuous distributions represent the uncertainty in
values (Durations, Costs, etc.). 0.0 0.0
Discrete distributions can be used to represent Beta Distribution Triangular Distribution
uncertain events, such as outcome of a test or Sensitivity Analysis:
possible scenario in decision tree. Determines which risks have the most potential impact on the project.
Interviewing: Examines the extent to which the uncertainty of each project element
Information Gathered depends on the type of affects the objectives being examined when all uncertain elements
distribution: are held at their baselines values.
1. Optimistic (low), pessimistic (high) and most likely Determines stakeholder risk tolerance levels.

(Triangular Distribution) Expected Monetary Value (EMV) Analysis:
2. Mean and Standard Deviation (Normal and Log Statistical concept that calculates the AVG outcome when the future
Normal Distribution) includes scenarios that may or may not happen.
3. Continuous Distribution (Probability & Consequences (+) Opportunities, (-) Risks.
of the project components) Examples: Uniform, Multiply the value of each possible outcome by its probability of
Normal, Triangular, Beta and Log Normal. occurrence and adding them together. Decision Tree (Common Use).
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(7) Risk Management

(7.4) Perform Quantitative Risk Analysis (Contd)
of identified risks
(2) Quantitative Risk Analysis and Modeling Techniques:
Decision Tree Analysis: Structured as Decision Tree (See Next Slide)
Diagram of interrelated decisions and expected results of choosing one alternative over another.
Determines which risks have the most potential impact on the project.
Usually used for risk events associated with time or cost.
Modeling and Simulation:
Uses a model that translates the uncertainties specified at a detailed level into their potential impact on objectives that are
expressed at the level of the total project.
Helps quantify risks associated with the project as a whole.
Results in a Probability Distribution. Probability of completing the project on any specified day, or for any specified cost.
Monte Carlo Simulation:

Determines potential outcomes by simulating the project duration estimates over and over multiple times.
Simulation techniques can be used to predict schedule or cost risks.
Schedule Simulation: using Precedence Diagramming Method (PDM).
Cost Risk Simulation: typically uses the WBS as its basis.
NOTE: Modeling and Simulation are recommended for use in cost and schedule risk analysis, because they are more powerful and
less subject to misuse compared to Expected Monetary Value (EMV) analysis.
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of identified risks
Decision Tree Analysis Example:
-
-

Source: Wikipedia encyclopedia
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of identified risks
(1) Project Documents updates:
Prioritized List of Quantified Risks: Normal Sample Distribution:
List of risks items that present the greatest Threats to the 68.26% of the total distribution are 1 sigma from the mean
project and their impacts. 95.46% of the total distribution are 2 sigma from the mean
List of risks with the greatest Opportunities to the project. 99.73% of the total distribution are 3 sigma from the mean
99.99% of the total distribution are 6 sigma from the mean
Probabilistic Analysis of the Project:
The forecasted results of the project schedule and costs as a results of the outcomes of risk analysis.
Results such as : Projected Completion Date and costs along with confidence level.
Confidence Levels: describe the level of confidence placed on the result; 90% Confident (meet Schedule time or Cost).
Probabilistic of Achieving the Cost and Time Objectives:

The probability of achieving the project objectives under current plan considering the current.
knowledge of the risks facing the project can be estimated using Quantitative Risk Analysis.
Trends in Quantitative Risk Analysis Results:
Trends will likely appear; as risk analysis process is repeated during project planning.
Useful information as the project is progressing. Major threats will be become evident and can be further analyzed to
develop effective risk response plans.
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(7) Risk Management

(7.5) Plan Risk Responses
1. Risk management plan 1. Strategies for negative risks or threats 1. Project management plan updates
2. Risk register 2. Strategies for positive risks or 2. Project documents updates
opportunities
3. Contingent response strategies
4. Expert judgment
Developing options and actions to enhance opportunities, and to reduce threats to project objectives
(1) Strategies for Negative Risks or Threats: (2) Strategies for Positive Risks or Opportunities:
(a) Avoid: (a) Exploit: (Take Advantage, Influence the Probability)
Avoid the risk altogether or eliminates the cause of the risk Add works to ensure that the opportunity is realized.
event or the severity of the risk. Early project risk might be Seek to eliminate the uncertainty associated with a
avoided by improving: Communications, refining requirements, particular upside risk by making the opportunity definitely
assigning additional resources in time etc. happen.
(b) Transfer:
Seek to shift the consequences of a risk to a third party (b) Share:
together with ownership of the response. Has costs Involved. Allocate ownership to a third party who is best able to
Examples: Insurance Contracting, Warranty, Guarantees, capture the opportunity for the benefit of the project
and performance bond. Examples: Forming risk-sharing partnerships, teams,
(c) Mitigate: special-purpose companies.

Attempt to reduce the impact of the risk event by reducing the (c) Enhance: (Influence the Impact)
probability of risk occurrence. Modify the size of an opportunity by increasing
Examples: Conducting more tests, choosing a more stable probability and/or positive impacts, and by identifying
supplier, adopting less complex processes. and maximizing key drivers of these positive-impact risks.
(d) Accept: When no way for resolution. (d) Accept: When no way for resolution.
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(7.5) Plan Risk Responses (Contd)
opportunities
4. Expert judgment
Acceptance: Utility Function:

A strategy that is adopted because it is seldom possible to Technique used to find out the tolerance of a project
eliminate all risks from a project. manager towards risk.
No plans to try to avoid or mitigate the risk.
Willingness to accept the consequences of the risk should it Ultimate decision on how to deal with Risk.
occur. 1. Risk Averter: Avoidance.
Passive Acceptance versus Active Acceptance (Contingency 2. Risk Neutral: Neutral, Balanced Actions.
Reserve).
3. Risk Seeker: Seeking resolutions and facing risk.
(3) Contingent Response Strategies:
Factors Affecting Risk Response:
Some responses are designed for use only if certain events occur.
Lack of Control.
Events that trigger the contingency response, such as missing

intermediate milestones or gaining higher priority with supplier, Risk Preference.
should be defined and tracked. Lack of Information.
Plan alternatives to deal with the risks should they occur. Time (Present versus Future).
Comes into play when risk event occurs. Usual Risk Response: Resources Availability.
Contingency Allowance.
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(7.5) Plan Risk Responses (Contd)
opportunities
4. Expert judgment
(2) Project Documents updates: Risk Response Plan

1. Detailed Actions.
Risk Response Plan must be:
2. Identified Risks with ownerships.
1. Appropriate to the severity of the risk.
3. Results of Qualitative & Quantitative Analysis.
2. Cost Effective in meeting the Challenge.
4. Agreed-upon Responses.
3. Timely, Realistic and within Context.
5. Residual Risk & Specific Actions.
4. Agreed upon by all parties involved.
6. Symptoms and warning signs of risks occurrence.
5. Owned by a responsible person.
7. Budget and Time for responses.
8. Contingency Plans (Developed in case something happens).
9. Fallback Plans (Developed in case Contingency Plans are ineffective).

Residual Risks: The leftover risk so to speak Secondary Risks: Risks that come about as a result of
After implementing any of the risk response strategies, implementing a risk response
residual risk is leftover. When planning for risk, identify and plan responses to
Contingency Reserve is set up to handle situations like Secondary Risks.
this. Never ignore to plan for both known and unknown risks.
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(7.6) Control Risks
1. Risk management plan Risk reassessment 1. 1. Work performance information
2. Risk register Risk audits 2. 2. Change requests
3. Work performance data 3.
Variance and trend analysis 3. Project management plan updates
4. Work Performance 4.
Technical performance 4. Project documents updates
reports measurement 5. Organizational process assets updates
5. Reserve analysis
6. Meetings
Tracking identified risks, monitoring residual risks, identifying new risks, executing risk response plans, and
evaluating their effectiveness throughout the project life cycle
(1) Risk Reassessment: (4) Technical Performance Measurement:

Provides information about project Technical Accomplishments against project plans schedule of technical
Performance and Risks. achievements.
Issues Logs, Action-Item Lists, Jeopardy Technical Deviation (Product Functionality). Risk not achieving scope.
Warnings or Escalation Notices.
(5) Reserve Analysis:
(2) Risk Audits: Emerging of an unanticipated risk. Not in risk response plan.
Examine & document the effectiveness of the Additional Risk Response Planning:
risk response plans measured during project

Risk Impact on objective is greater than expected.
life cycle. Planned response is not adequate.
(3) Variance and Trend Analysis: Perform additional Response Planning to Control Risk.
Earned Value Analysis:
(a) Monitoring overall Project Performance against Baseline Plan.
(b) Results may indicate Potential Deviation of the Project Budget At Completion (BAC) from Cost, & Schedule Targets. (Risk).
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(7.6) Control Risks (Contd)
1. Risk management plan Risk reassessment 1. 1. Work performance information
2. Risk register Risk audits 2. 2. Change requests
3. Work performance data 3.
Variance and trend analysis 3. Project management plan updates
4. Work Performance 4.
Technical performance 4. Project documents updates
reports measurement 5. Organizational process assets updates
5. Reserve analysis
6. Meetings
Tracking identified risks, monitoring residual risks, identifying new risks, executing risk response plans, and
evaluating their effectiveness throughout the project life cycle
(2) Change Requests: (4) Project Documents Updates:

Frequent Implementation of Contingency Plans or Risk may occur or not.
Workarounds. Occurred Risk should be documented and Evaluated.
Changes to Project Risk Response Plan. Risk Controls may reduce the Probability of identified risks
Results: Issuance of a Change Request that must be and/or the Impact of risks.
managed by Integrated Change Control. Risk ranking must be reassessed for better controlling.
Recommended corrective actions: performing the Non-occurred risks should be documented.
contingency plan or workaround.
Recommended preventive actions. Risk Database:

Repository for Collection, Maintenance, and Analysis of
Workaround Responses: gathered data.
Unplanned Responses to the Emerging Risks. To assess risk management throughout the organization.
Risks were not identified or accepted. Updates to Risk Identification Checklists:
Must be properly documented & incorporated into Checklists updated from experience will help risk management
the project plan & Risk Response Plan. for future projects.
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(8) Communications Management
Ensure timely and appropriate generation, collection,

distribution, storage, retrieval, and ultimate disposition of
project information.
1. Plan Communications Management
2. Manage Communications
3. Control Communications

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(8.1) Plan Communications Management
1. Project management plan 1. Communication requirements analysis 1. Communications management
2. Stakeholder register 2. Communication technology plan
3. Communication models 2. Project documents updates
4. Organizational process assets 4. Communication methods
5. Meetings
Developing an appropriate approach and plan for project communications based on project stakeholders
information needs and requirements, and available organizational assets
(1) Communication Requirements Analysis: Total Number of 1 2

Sum of information requirements for the project Communication Channels 6 3
stakeholders. = N ( N-1) / 2 5 4
Type and format of information. Example: 6 (6-1)/ 2 = 15 channels
Project organization & stakeholder responsibility
relationship. (3) Communication Models:
Disciplines, departments, logistics, external information. Demonstrates how information is send and received between
two parties, defined as the sender and the receiver.
(2) Communication Technology: The key components of the model include:
Brief conversation, meetings, E-mails, MIS and 1. Encode.
online schedules. 2. Message and feedback message.

Frequency and timely delivery. 3. Medium.
Influencing Factors: 4. Noise.
Urgency, 5. Decode.
Availability. Inherent in the model is an action to Acknowledge a message.
Staffing. Acknowledge means the message received in its entirety, but
Project Duration, and Project Environment. not necessarily agreement of the message.
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(8.1) Plan Communications Management (Contd)
1. Project management plan 1. Communication requirements analysis 1. Communications management
2. Stakeholder register 2. Communication technology plan
3. Communication models 2. Project documents updates
4. Organizational process assets 4. Communication methods
5. Meetings
Developing an appropriate approach and plan for project communications based on project stakeholders
information needs and requirements, and available organizational assets
(4) Communication Methods: (1) Communications Management Plan:

Methods to share information among project Collection and Filing Structure (Gathering methods &
stakeholders: Storing, Collecting and Disseminating Updates).
1. Interactive communication: Performing Distribution Structure (Status, Schedule, Technical etc.).
multidirectional exchange of information (most Methods of Distributions (Face-to-Face, Meeting,
efficient). Conference Calls, Emails, Online, Letters etc.).
2. Push Communication: Sent to specific Description of Information (Format, Content, Level of
recipients (Letters, memos, reports, emails, Details, Conventions/Definitions to be used.
faxes, voice mails, press release etc. Schedule for each Communications Type.
3. Pull Communication: used for large volumes Methods for updating and refining the communications

of information, or for very large audiences. management plan.
(Intranet sites, e-Learning, etc.).
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(8.2) Manage Communications
1. Communications management 1. Communication technology 1. Project communications
plan 2. Communication models 2. Project management plan updates
2. Work performance reports 3. Communication methods 3. Project documents updates
3. Enterprise environmental factors 4. Information distribution tools 4. Organizational process assets
4. Organizational process assets 5. Performance reporting updates
Creating, collecting, distributing, storing, retrieving and the ultimate disposition of project
information in accordance with the communication management plan
(3) Communication Methods: Exchanged Information (4) Information Distribution Tools:
Sending Clear, Unambiguous, and Complete information. Hard-copy document, manual filing and shared
Receiving Correct, Understood, Acknowledged its Entirety. access Database.
Dimensions of Communications: Electronic communication and conferencing tools.
1. Written and Oral. Listening and Speaking. Electronic tools for PM, such as Web Interfaces to
2. Internal (within Project) and External (Customer, Scheduling and PM software.
Media and Public). Manual filing systems, electronic databases.
3. Video and audio conferences, computer chats, and Project management software.
other remote communications methods. Engineering drawings, design specifications, and
4. Formal (Reporting, Briefing, etc.) and Informal test plans.

(Memos, Ad-hoc conversations).
5. Vertical (up-down) and Horizontal (With Peers). Written Verbal
6. Senders Encode messages. Formal Reports, letters, Minutes Presentations &
7. Transmitting is getting information delivered. & Briefings etc. Speeches (Meetings).
8. Receivers Decode messages. Informal Emails & handwritten Ad-hoc meetings and
Notes (Post It) etc. conversations.
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(8.2) Manage Communications (Contd)
1. Communications management 1. Communication technology 1. Project communications
plan 2. Communication models 2. Project management plan updates
2. Work performance reports 3. Communication methods 3. Project documents updates
3. Enterprise environmental factors 4. Information distribution tools 4. Organizational process assets
4. Organizational process assets 5. Performance reporting updates
Creating, collecting, distributing, storing, retrieving and the ultimate disposition of project
information in accordance with the communication management plan
Art of Communications:
Server-receiver-models. The Managers Time:
Choice of media: Writing versus Orally, Memo 80-90% of time is spent in Communications.
versus Formal letter. Half of communicating time is listening.
Writing style: Active versus passive voice, sentence. Most people recall 50% of what they hear immediately
structure and word choice. after.
Presentation techniques. After two months 25% is recalled.
Meeting management techniques.
Paralingual: Refers to Pitch and Tone.
Encode Message Medium Noise Decode. Improving Communications:
Make the message relevant for the receiver.

Effective Listening Skills: Reduce the message to its simplest terms.
Appear interested & Make Eyes Contact to Speaker. Organize the message into a series of stages.
Put the speaker at ease. Show appreciations Repeat the key points.
Smile, nod head, make comments.
Recap the message in own words an tell back.
Avoid interrupting as appropriate.
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(8.3) Control Communications
1. Project management plan Work performance information
1. Information management 1.
2. Project communications Change requests
systems 2.
3. Issue log Project management plan updates
2. Expert judgment 3.
4. Work performance data Project documents updates
3. Meetings 4.
5. Organizational process assets Organizational process assets 5.
updates
Monitoring and controlling communications throughout the entire project life cycle to ensure the information needs
of the project stakeholders are met
(4) Work performance data: (3) Meetings:
Comparing Actual Project results to planned or Meetings held to assess project status and/or progress.
expected results. Used in conjunction with one or more of performance-
Cost and Schedule Variances are the most reporting techniques.
frequently analyzed. (4) Project documents updates:
(1) Work performance information: Forecasting Methods:
Organize and Summarize the information gathered. Examining project results over time to determine if
Reports provide the kind of information and the level of performance is Improving or Deteriorating:
details required by various stakeholders as per the Time series methods: use historical data as the basis.
communications management plan. Causal/econometric methods: Causes and Economical.
Common Formats include: Bar Charts (Gantt Charts), S- Judgmental methods: Intuitive, opinions, and

Curve, Histograms, and Tables. probability estimates.
Other methods: Simulation, probabilistic forecasting.
(2) Change Requests: Performance Reports:
Request for a Change to some aspects of the project. Status Report: Describes project current standing.
Handled as described in the various Change Control Progress Report: Describes team accomplishments.
Processes (Scope Change Management, Schedule Trend Report: Describes project results over time.
Control, Cost Control etc.). Forecast Report: Predicts future project status.
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(9) Stakeholder Management
Identify the people, groups, or organization that could impact

or be impacted by the project, to analyze stakeholder
expectations and their impact on the project, and to develop
appropriate management strategies for effectively engaging
stakeholders in project decisions and execution.
1. Identify Stakeholders
2. Plan Stakeholder Management
3. Manage Stakeholder Engagement
4. Control Stakeholder Engagement

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(9.1) Identify Stakeholders
1. Project charter 1. Stakeholders analysis 1. Stakeholder register
2. Procurement documents 2. Expert judgment
Identifying all people or organizations impacted by the project, and documenting relevant information regarding
their interests, involvement and impact on project success
(1) Stakeholders Analysis: (1) Stakeholder Register:
Identify stakeholders interests, expectations, and influence Contains all details related to the identified
while relating them to the purpose to of the project. stakeholders including:
Sum of information requirements for the project stakeholders. A. Identification Information: Name, organization
Type and format of information. position, location, role, contacts etc.
Project organization & stakeholder responsibility relationship. B. Assessment Information: Major requirements,
Disciplines, departments, logistics, external information. expectations, potential influence, phase of the
Power/Interest grid: grouping based on level of authority project with most interest, etc.
(Power) and Level of concern (Interest). C. Stakeholder Classification: Internal/External,
Power/Influence grid: grouping based on level of Authority supporter/neutral/resistor, etc.
(Power) and level of Involvement (Influence).
Influence/Impact grid: grouping based on level of Stakeholder Management Strategy:

involvement (Influence) and ability to effect changes to the Defines an approach to increase the support and
project (Impact). minimize negative impacts of stakeholders throughout.
Salience Model: describing classes of stakeholders based on: the entire project life cycle, it includes:
A. Power (Ability to impose their will). Key stakeholders who is/are influential(s).
B. Urgency (need for immediate attention). Level of participation.
C. Legitimacy (Appropriate involvement). Stakeholder groups and their management.
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(9.2) Plan Stakeholder Management
1. Project management plan 1. Expert judgment 1. Stakeholder management plan
2. Stakeholder register 2. Meetings 2. Project documents updates
3. Enterprise environmental factors 3. Analytical techniques
Developing appropriate management strategies to effectively engage stakeholders throughout the project life
cycle, based on the analysis of their needs, interests, and potential impact or project success
(1) Expert Judgment: (3) Analytical Techniques:

To create stakeholder management plan, Compare the current engagement level of all stakeholders
judgment and expertise should be sought from to the planned engagement levels required for successful
groups or individuals with specialized training or project completion
subject matter expert, or insight into the Stakeholder engagement throughout the life cycle of the
relationships within the organization, such as: project is critical to project success. The engagement level
Senior management of the stakeholder can be classified as follows:
Project team members; A. Unaware: Unaware of project and potential impacts.
Other units or individuals within the organization; B. Resistant: Aware of project and potential impacts and
Identified key stakeholders resistant to change.

(2) Meetings: C. Neutral: Aware of project yet neither supportive nor
Should be held with experts and the resistant.
project team to define the required D. Supportive: Aware of project and potential impacts and
engagement levels of all stakeholders. supportive to change.
Information can be used to prepare the E. Leading: Aware of project and potential impacts and
stakeholder management plan actively engaged in ensuring the project is a success.
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(9.3) Manage Stakeholder Engagement
1. Stakeholder management plan 1. Communication methods 1. Issue log
2. Communications management 2. Interpersonal skills 2. Change requests
plan 3. Management skills 3. Project management plan updates
3. Change log 4. Project documents updates
4. Organizational process assets 5. Organizational process assets updates
Communicating and working with stakeholders to meet their needs/expectations, address issues as they
occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle
(1) Communication Methods: Exchanged Information (2) Interpersonal Skills:
Based on the stakeholders communication requirements, the The project manager applies interpersonal skills to
project manager decides how, when, and which of these manage stakeholders expectation. For example:
communications methods are to be used in the project. 1. Building trust;
Sending Clear, Unambiguous, and Complete information. 2. Resolving conflict;
Receiving Correct, Understood, Acknowledged its Entirety. 3. Active listening; and
1. Written and Oral. Listening and Speaking. 4. Overcoming resistance to change.
2. Internal (within Project) and External (Customer, Media and
Public).
3. Video and audio conferences, computer chats, and other (3) Management Skills:
remote communications methods. Coordinate and harmonize the group toward

4. Formal (Reporting, Briefing, etc.) and Informal (Memos, Ad- accomplishing the project objectives. For example:
hoc conversations). 1. Facilitate consensus toward project objectives
5. Vertical (up-down) and Horizontal (With Peers). 2. Influence people to support the project;
6. Senders Encode messages. 3. Negotiate agreements to satisfy the project needs;
7. Transmitting is getting information delivered. 4. Modify organizational behavior to accept the
8. Receivers Decode messages. project outcomes.
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(9.4) Control Stakeholder Engagement
1. Project management plan 1. Information management
2. Issue log systems Change requests 2.
3. Work performance data 2. Expert judgment
4. Project documents 3. Meetings Project documents updates 4.
Organizational process assets 5.
updates
Monitoring overall project stakeholder relationship in project activities throughout the project life cycle
(3) Work Performance Data: (1) Work Performance Information:
Various measurements on project activities and The performance data collected from various controlling
deliverables are collected during various processes, analyzed context, and integrated based on
controlling processes: Examples: relationships across areas.
Report percentage of work completed Work performance data has been transformed into work
Technical performance measures performance information.
Start and finish dates of schedule activities Mainly used for project decision making among all stakeholders.
Number of change requests
Number of defects, actual costs, and
Actual duration. Etc. (2) Change Requests:
Request for a Change to some aspects of the project.
(1) Information Management Systems:
Handled as described in the various Change Control

Provides standard tool for the project manager to
Processes (Scope Change Management, Schedule Control,
capture, store and distribute information to
Cost Control etc.).
stakeholders about project cost, schedule progress,
To provide a clear understandings of the changes between
and performance.
all stakeholders.
Allows the project manager to consolidate reports
from several systems and facilities report
distribution to the project stakeholders.
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(10) Integration Management

Coordinating all aspects of project plan
1. Develop Project Charter
2. Develop Project Management Plan
3. Direct and Manage Project Work
4. Monitor & Control Project Work
5. Perform Integrated Change Control
6. Close Project or Phase

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Includes the Processes and Activities needed to Identify, Define, Combine, Unify, and Coordinate the various
processes and project management activities within the Project Management Process Groups.
Integration:
Project Management Context: Characteristics of Unifications, Consolidation, Articulations, and
Integrative actions.
Managing a Project: Making choices about where to concentrate resources and efforts on any given
day, anticipating potential issues, dealing with these issues before they become critical, and making
trade-offs among competing objectives and alternatives.
Integration primarily concerned with effectively integrating the processes among Project Management
Process Groups. The integrative Project Management Processes includes:
1. Develop Project Charter: Developing project charter and formally authorizing a project or a project phase.
2. Develop Project Management Plan: Documenting the actions necessary to define, prepare, integrate, and
coordinate all subsidiary plans into a project management plan.
3. Direct and Manage Project Execution: Executing the work defined in the project management plan.
4. Monitor and Control Project Work: Monitoring and controlling the processes used to initiate, plan, execute,
and close a project to meet the performance objectives defined in the project management plan.
5. Perform Integrated Change Control: Reviewing all change requests, approving changes, and controlling

changes to the deliverables.
6. Close Project or Phase: Finalizing all activities across all of the project management process groups to
formally close the project or a project phase.
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(10.1) Develop Project Charter
1. Project statement of work 1. Expert judgment 1. Project charter
2. Business case 2. Facilitation techniques
3. Agreements
Develop project charter and formally authorizes a project or a project phase
(1) Project Statement of Work (SOW): (4) Enterprise Environmental Factors:

Narrative description of products or Culture and Organization Structure.
services to be supplied by the project. Government or Industry Standards.
Internal Projects: Developed by Infrastructure.
Initiators or Sponsors. Existing Human Resources.
External Projects: Delivered by Marketplace conditions.
Customer as a part of bid documents. Stakeholders.
SOW: includes Business Needs, Scope PMIS.
Description, and Strategic Plan.
(3) Agreements (When Applicable): (5) Organizational Process Assets

From the customers acquiring organization Formal and Informal Policies.
is an INPUT if the project is being done for Learning and Knowledge from previous projects.
an External Customer. Processes and Procedures for Conducting Work.
Corporate knowledge base for sorting and retrieving information.
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(10.1) Develop Project Charter (Contd)
3. Agreements
Project Selection Methods: Measures the Benefits of the Project

Techniques used during the Initiation Process to Pick one Project over the other or Measure one Project benefits
Decision
Constrained Optimization Benefit Measurement
Methods Methods Models
Benefit/Cost Analysis
Linear Used for
Mathematical Models
Scoring or Weighted Scoring Model

Dynamic Project
Cash Flow Analysis Techniques:
Integer Justification

Nonlinear Pay Back Period
Multi-objective Programming Discounted Cash Flow

Net Present Value (NPV)
Internal Rate of Return (IRR)
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3. Agreements
(1) Expert Judgment: (2) Facilitation Techniques:
To assess the inputs needed to develop the Project Charter. Brainstorming, Conflict Resolution, Problem
Applied to any technical and management details. Solving;
Provided by any group or individual with specialized knowledge or Meeting management are examples of key
training. techniques used by facilitators to help teams
Available from many sources: and individuals accomplish project activities.
Other units within the organization, Consultants, and
Stakeholders (Customers /Sponsors)
Professional and Technical Associations and Industry Groups
Project Management Methodology:
Defines a set of Project Management Process Groups, their related processes and related control functions.

Can be either Formal mature process or Informal technique that aids in developing a Project Charter.
Project Management Information System (PMIS):
Standardized set of automated tools available within the organization.
Is used by the Project Management Team to:
1. Support generation of Project Charter.
2. Facilitate feedback as the document is refined, control changes to Project Charter.
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3. Agreements
(1)Project Charter:
Document that formally authorizes a project
Provides the project manager with the authority to apply organizational resources to project activities.
Project Manager should always be assigned prior to the start of PLANNING and preferably while the Project
Charter is being developed.
Project Charter issued by Project Initiator or Sponsor external to the project organization.
Projects are chartered and authorized as a result of one or more Problems/Opportunities/Business Requirements:
Market Demands, Business Needs, Customer Requests, Technological Advances, Legal Requirements, and Social
Needs.
Project Charter should include:
Requirements that satisfy customer, sponsor and other stakeholder needs.
Project Objectives: SMART: Specific, Measurable, Achievable, Realistic, and Time-bound.

Business needs, high-level project description.
Project Purposes or Justifications.
Assigned Project Manager and Authority Level.
Summary Milestones, Stakeholders Influences, and Functional Organization Descriptions.
Assumptions and Constraints.
Business Case and Budget Summary.
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(10.2) Develop Project Management Plan
1. Project charter 1. Expert judgment 1. Project management plan
2. Outputs from other processes 2. Facilitation techniques
Documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans into a
project management plan
(1) Expert Judgment:
Is applied to develop technical and management details to be included in the Project Management Plan.

Defines a process that aids a project management team in developing and controlling changes to the Project
Management Plan.

PMIS is used by the project management team to support generation of the Project Management Plan,
facilitate feedback as the document is developed, control changes to the project management plan, and

release the approved document:
Configuration Management System: Submitting proposed changes, tracking systems for reviewing
and approving changes, defining approval levels etc.
Change Control System: Collection of formal document procedures that define how project
deliverables are controlled, changed, and approved.
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(10.2) Develop Project Management Plan (Contd)
1. Project charter 1. Expert judgment 1. Project management plan
2. Outputs from planning processes 2. Facilitation techniques
Documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans into a
project management plan
(1) Project Management Plan:
Project Management Plan content will vary depending upon the application area and complexity of the project.
Project Management Plan is updated and revised through the Integrated Change Control Process.
Defines how the project is executed, monitored and controlled, and closed.
Documents the collection of outputs of the planning processes and includes:
o Selected Project Management Processes by the Team.
o Level of Implementation of each selected process.
o Description of the Tools and Techniques to be used for accomplishing those processes.
o How the selected processes will be used to manage the specific project.
o How the work will be executed and changes will be monitored and controlled.
o How Integrity of the performance measurement baselines will be maintained and used.

o Selected Project Life Cycle and associated Project Phases.
Can be either Summary level or Detailed.
Can be composed of one or more Subsidiary management plans and other components:
o Scope plan, Schedule plan, Cost plan, Quality plan,
o Staffing plan, Communications plan, Risk plan, Procurement plan.
Components such as: Milestone list, Schedule Baseline, Cost Baseline, Resource Calendar, Risk Register etc.
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(10.3) Direct and Manage Project Work
1. Project management plan 1. Expert judgment 1. Deliverables
2. Approved change requests 2. Project management 2. Work performance data
3. Enterprise environmental factors information system 3. Change requests
4. Organizational process assets 3. Meetings 4. Project management plan updates
Executing the work defined in the project management plan
(2) Approved Change Requests:
Documented, authorized changes to expand or Validated Defect Repair:
reduce contract project scope. Notification that re-inspected repaired items have been
Changes can be Modify Policies, Procedures, either Accepted or Rejected.
Costs, Budgets, or Revise Schedules. (1) Deliverables:
Approved Corrective Actions: Unique, Verifiable Product, Result, or Capability to
Documented, authorized directions required to Perform a service.
bring expected future project performance into Must be Produced and Provided to Complete the Project.
conformance with Project Management Plan.
(2) Work Performance Data:
Approved Preventive Actions: Information Collected about Project Activities.
Documented, authorized directions to REDUCE the

Schedule Progress, Completed Deliverables.
Probability of negative consequences associated Quality Standards, Cost Authorized and Incurred.
with Project Risks. Estimates to complete schedule activities.
Approved Defect Repair: Resource Utilization Details.
Documented, authorized request for product correction of
defect found during Quality Inspection or the Audit Process.
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(10.3) Direct and Manage Project Work (Contd)
1. Project management plan 1. Expert judgment 1. Deliverables
2. Approved change requests 2. Project management 2. Work performance data
3. Enterprise environmental factors information system 3. Change requests
4. Organizational process assets 3. Meetings 4. Project management plan updates
Executing the work defined in the project management plan
(3) Change Requests: Implemented Change Requests:

Changes Requested to Expand or Reduce Project Scope. Approved Change Requests that have been
Policies, Procedures, Schedule, Cost, Budget. implemented by the Project Management Team.
Direct/Indirect, External/Internal.
Optional/Legally/Contractually Mandated. Implemented Corrective Actions:
The Approved Corrective Actions that have been
implemented by the Project Management Team.
(5) Project documents updates: Implemented Preventive Actions:

Documents all the activities, interactions, and related The Approved Preventive Actions that have been

Roles and Responsibilities needed in executing the implemented by the Project Management Team to
Administrative Closure procedure for the Project. Reduce the consequences of Project Risks.
Implemented Defect Repair:

The Project Management Team has Implemented
the Approved Product Defect Corrections.
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(10.4) Monitor and Control Project Work
1. Project management plan 1. Expert judgment 1. Change requests
2. Schedule forecasts 2. Analytical techniques 2. Work performance reports
3. Cost forecasts 3. Project management 3. Project management plan updates
4. Validated changes information system 4. Project documents updates
5. Work performance information 4. Meetings
Tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project
management plan
(5) Work Performance Information:
Performance data collected from various controlling processes (2) Analytical Techniques:
Analyzed in context, and integrated based on the relationship Applied in project management to forecast
across areas. potential outcomes based on possible
Data itself cannot be used in the decision-making process, as it variations of project or environmental
has only out-of-context meaning. variables and their relationships with other
Work performance information is correlated and contextualized. variables: Examples:
Provides sound foundation for project decision. Regression Analysis
Grouping Methods
(6) Enterprise Environmental Factors: Causal Analysis

Factors that can influence the Monitor and Control Project Root Cause analysis
Work process. This includes: Failure mode and effect analysis (FMEA)
Governmental or industrial standards. Reserve Analysis
Company work authorization system. Trend Analysis
Stakeholders risk tolerances, and Earned Value Management, and
Project Management Information Systems (PMI). Variance Analysis
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(10.4) Monitor and Control Project Work (Contd)
1. Project management plan 1. Expert judgment 1. Change requests
2. Schedule forecasts 2. Analytical techniques 2. Work performance reports
3. Cost forecasts 3. Project management 3. Project management plan updates
4. Validated changes information system 4. Project documents updates
5. Work performance information 4. Meetings
Tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project
management plan
(1) Change Requests: Changes Requested (2) Work Performance Reports:
to Expand or Reduce Project Scope.
Reports prepared by the project team detailing activities,
Recommended Corrective Actions: accomplishments, milestones, identified issues, & problems.
Corrective actions are documented recommendations Current status.
required to bring expected future project performance Significant accomplishments for the period.
into conformance with the Project Management Plan. Scheduled activities.
Forecasts, and Issues.
Recommended Preventative Actions:
Preventive actions are documented recommendations
(4) Project Documents Updates:
Forecasts:

that reduce the probability of negative consequences
associated with project risks. Include estimates or predictions of conditions and events in
the projects future.
Recommended Defect Repair: It is based on Information and Knowledge.
Some defects which are found during Quality Updated and reissued based on work performance
Inspection and Audit Process, are recommended for information while executing project.
Correction. Example: Estimate At Completion & Estimate to Complete.
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(10.5) Perform Integrated Change Control
1. Project management plan 1. Expert judgment 1. Approved change requests
2. Work performance reports 2. Meetings 2. Change log
3. Change requests 3. Change control tools 3. Project management plan updates
4. Enterprise environmental factors 4. Project documents updates
Reviewing all change requests, approving changes, and managing changes to the deliverables,
organizational process assets, project documents and the project management plan
Integrated Change Control:

Performed from project inception through completion.
Used to maintain project management plan, project scope statement and deliverables through managing Changes.
Utilized for approving or rejecting and incorporating changes into a revised baseline.
Performed to identify, influence, review, approve and manage changes.
Accomplished to maintain the integrity of baselines.
Used to review and approve all recommended corrective actions.
Performed to control and update the scope, cost, budget, schedule and quality requirements.
Organized to document and complete impact of requested changes.
Formalized to validate defect repair.

Project Management Information System (PMIS) Objectives:
Project-Wide Configuration Management System, including Change Control Processes

accomplish 3 Main Objectives
(1) Identify and Request Changes (2) Validate and Improve Project (Impact) (3) Communicate All Changes
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(10.5) Perform Integrated Change Control (Contd)
1. Project management plan 1. Expert judgment 1. Approved change requests
2. Work performance reports 2. Meetings 2. Change log
3. Change requests 3. Change control tools 3. Project management plan updates
4. Enterprise environmental factors 4. Project documents updates
Reviewing all change requests, approving changes, and managing changes to the deliverables,
organizational process assets, project documents and the project management plan

Defines a process that aids a project management team in implementing Integrated Change Control for the project
Every documented change request must be either accepted or rejected by some authority with the project
management team or an external organization representing the:
Initiator , Sponsor, or Customer.
The Integrated Change Control process includes a Change Control Board (CCB) responsible for approving and
rejecting the requested changes.

An Automated system is used by the project management team as an aid for the implementation of the Integrated

Change Control process through facilitating feedback for the project and controlling changes across the project
Some of the Configuration Management Activities included are:
1. Configuration Identification: Defining products and verifying their functionalities.
2. Configuration Status Accounting: Capturing, storing, and accessing configuration information needed.
3. Establishing Verification and Auditing: Establishing that the performance and functional requirements defined
in the configuration documentation have been met.
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(10.6) Close Project or Phase
1. Project management plan 1. Expert judgment 1. Final product, service or result
2. Accepted deliverables 2. Analytical techniques transition
3. Organizational process assets 3. Meetings 2. Organizational process assets
updates
Finalizing all activities across all of the project management process groups to formally
close the project or a project phase
Close Project or Phase: (See Next Slide)

Involves performing the project closure portion of the project management plan.
Establishes the procedures to coordinate activities needed to verify and document the project deliverables to
coordinate and interact to formalize acceptance of those deliverables by the customer or sponsor. Two Procedures
are developed to establish closeout interactions:
1. Administrative Closure Procedure:
Details all the activities, interactions, and related roles and responsibilities of project team involved.
Includes integrated activities needed to collect project records, analyze project success or failure, gather lessons
learned, and archive project information for future use by the organization.
2. Contract Closure Procedure:

Includes all activities and interactions needed to settle and close contract agreement established.
Involves product verification (All Works completed correctly and satisfactorily) & Administrative closure
(Updating of contracts records to reflect final results and archiving that information for future use).
3. Final Product, Service or Result: Formal Acceptance and handover of the final product, service, or result.
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(10.6) Close Project or Phase (Contd)
1. Project management plan 1. Final product, service or result
1. Expert judgment
2. Accepted deliverables transition
2. Analytical techniques
3. Organizational process assets 3. Meetings 2. Organizational process assets
updates
Finalizing all activities across all of the project management process groups to formally
close the project or a project phase
(A) Close Project or Phase Process (Integration):
Involves performing the project closure portion of Project Management Plan. Used to closeout overall Project when completed.
(1) Administrative Closure Procedure:
(2) Contract Closure Procedure: To Legally Protect both Parties Interests
Details all Activities, Interactions, Roles &
Ensures all activities to settle and close projects contracts are
Responsibilities. Includes integrated activities
developed and executed during Close Procurements Process.
needed to:
(1) Product Verification: All Works Completed Correctly & Satisfactorily.
(a) Collect Project Records.
Administrative
(2) Financial Closure.
(b) Analyze project success & failure.
(3) Records Management System.
(c) Gather Lessons Learned.
(4) Final Contract Performance Reporting.
(d) Archive Project Information.
(5) Contract File.
(6) Formal Acceptance, Sign Off, and Contract Closure.
Customer Satisfaction
Final Lessons Learned with Closing the
Contract
Team members and End User (B) Close Procurements Process (Procurements):

Project Hand Over
Release Resources Done when the Contract is Finished or Terminated. All Contracts must be
Celebration Closed. Termination may occur: Inability, Budget overrun, Lack of Resources
etc.
Formally The PM performs Procurement Audits for Procurement Process for each
Closing the Project or contract, then administratively closes the Contract.
The PM develops Lessons Learned in conjunction with Suppliers,
Project Phase
Contractors, Subcontractors etc..
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PMI members adhere to a Code of Ethics, and those with the

Project Management Professional (PMP) certification adhere
to a Code of Professional Conduct.
Responsibility Respect Honesty Fairness
Ensuring Integrity
Applying Professional Knowledge
Enhance Individual Competence
Balancing Stakeholders Interests
Respecting Differences in Diverse Cultures

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PMI-Code of Professional Conduct
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Controlling

(1) Ensuring Integrity
(1) Integrity: (2) Conflict of Interest:
Integrity of the Project Management Processes: Responsibility to report to the stakeholders and customers
through accurately applying the knowledge of any actions or circumstances that could be constructed as
these processes to any project. Conflict of Interest.
Integrity of the Product: Complete and sound, or When use of influence to cause others to make decisions in
fit for use. your favor regardless of project.
Personal Integrity: Sticking to an ethical code, a) Associations and Affiliations:
through adherence to the Code of Professional Family Business to be engaged with a project that is,
Conduct. the family member is a PM or others. Actions:
Personal Gain: Declare,
Truthfulness and integrity involves not only Refrain*, (Hold Back or Restrain/Abstain, to keep
information about own background and within prescribed bounds)
experience, but also regarding project itself. Avoid participating in the Project.
Personal Gain Should Never be a b) Vendor Gifts: Company Policy
consideration. Decline, (Refuse)
Inform,
(3) Acting Professionally: Advise and
Responsible for own actions and reactions. Refrain*
c) Stakeholder Influence: Authority and Position.

Self control and patience.
Team Members:
Coach and influence non conforming members.
Actions speak louder than words.
Project manager is leading by example.
*To keep one self from action or interference
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(2) Applying Professional Knowledge
(1) Project Management Knowledge: (2) Honesty Is the Best Policy:
Staying abreast of project management practices, Honesty reports your qualifications.
theories, and techniques. Honesty what you know and what you dont know.
Joining local PMI chapter. Emphasize the knowledge you do have and how you
Meeting, sharing and attending PM conferences. have used it in specific industry.
Continuing project management educational courses.
(3) Industry Knowledge: (4) Truthful Reporting:

Specific industry knowledge is Important. PM is responsible for truthfully reporting all information.
Not Required to be a technical expert. Project Status has to be communicated with honest and
Join industry associations & take educational truthful facts to all Stakeholders.
classes. Where Public is at risk, truthfully report the facts of the
situation and what steps to be taken to counteract or
reduce the threats.
(5) Complying with Laws & Regulations:
Follow all applicable laws, rules and regulations
that apply to the industry. (6) Respecting Confidential Information:
Follow ethical standards and principles. Not to disclose any sensitive or confidential information.
Rules and regulations are different between Signing Non-Disclosure Agreement.
countries.

(7) Company Data: (8) Intellectual Property:
Sharing data between organization and other vendors Things developed by an organization that has
Non Disclosure Agreement. commercial values but are not tangible.
Copyrighted materials, patented ideas and processes.
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(3) Enhance Individual Competence
Individual's Strength and Weakness:
Good knowledge of yourself and make a plan to improve.
Good knowledge of methods of personal evaluation.
Modern Quality Management:

It is not the large improvements to our knowledge that are so important, but it is the
small increases to our knowledge and capability over the years that will be truly improve
our values to ourselves and others.
Perform self-assessment periodically.

Develop a plan to reach goals for self-improvement and professional competence.

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(4) Balancing Stakeholders Interests
(1) Competing Needs:
Stakeholders from different areas.
Different needs and interests that need to be balanced.
Accommodating or choosing among needs.
Office politics has its significant impact.
(2) Dealing with Issues and Problems:

Conflict resolution.
Determine alternative solutions to problems as they occur
without changing the original objectives of the project.
Brainstorming and Delphi techniques.
(3) Balancing Constraints:

Triple constraints: Time, Cost, Scope/Quality.
Making priority.
Diverting one constraint by another.
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(5) Respecting Differences in Diverse Cultures
(1) Global Competition: (2) Cultural Shock:
PM with multinational experiences are Acting certain ways and expecting normal,
increasingly in demand. everyday events to follow a specific course of
Full awareness of cultural influences. action, once might find her/himself disoriented
Conform with conservative actions. when things dont go as one expected.
(3) Respecting Your Neighbors: (4) Training:

Spend time building relationship with To assure that cultural or ethical differences
foreign cultures. dont hinder project success.
Team building activities.
Diversity training.
(5) Perceiving Experiences:
Ones experience is not someones experience.
Give others benefit of the doubt and ask for clarifications.
Freeze personal feelings and remember what you think the other person. means is not

necessarily as it appears due to cultural differences.
Avoid Ethnocentrism. A viewpoint that ones group is the central of everything.
Refrain from Stereotyping. Stereotypes are standardized and simplified conceptions of
groups based on some prior assumptions.
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Code of Professional Conduct
To Conduct work in an ethical and legal manner.
To report violations of the PMI Code of Professional Conduct.
To provide truthful representation of his/her own business in any advertising or public statements
regarding cost of services, description of services, and expected results.
Responsible to satisfy the scope of project as agreed upon unless the customer initiates changes.
To keep all sensitive, private, and propriety information confidential when it is obtained while
carrying professional activities.
To ensure that there are no conflicts of interest that may interface with his/her judgment.
To provide qualified professional services while managing projects.
To maintain his/her level of professional skills to serve as project manager for the types of projects
that are being managed.
To provide leadership in order to ensure that the maximum amount of productivity is achieved.
To ensure the workplace is safe, and that all people working in the area that is the projects
responsibility are protected from danger.
To secure suitable working conditions and to maintain them for the project team and any others in the
area of the projects activity.

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PMP Certification
References:
1. A Guide to Project Management Body of Knowledge,2013, Fifth Edition, Project Management Institute, Inc., Library of Congress
Cataloging-in-Publication Data.
2. A Guide to Project Management Body of Knowledge,2008, Fourth Edition, Project Management Institute, Inc., Library of Congress
Cataloging-in-Publication Data.
3. Newell, Michael W., 2002, Preparing for the Project Management Professional (PMP), Second Edition, American
Management Association.
4. Phillips, Joseph, 2004, Project Management Professional Study Guide, McGraw-Hill/Osborne
5. Francis, David and Horine, Greg, 2004, Exam Cram2 PMP Project Management Professional, Que Publishing
6. Nathan, Peter and Everett, Gerald, 2003, PMP Certification for Dummies, Wiley Publishing, Inc.
7. Mulcahy, Rita, 2005, PMP Exam Prep, RMC Publications, Inc.
8. Pyzdek, Thomas, 2003, The Six Sigma Handbook, The McGraw-Hill Companies, Inc.
9. Heldman, Kim, 2002, PMP Project Management Professional Study Guide, SYBEX Inc.
10. Lewis, James P., 1995, Project Planning, Scheduling & Control, McGraw-Hill
11. Meredith, Jack R., Mantel, Jr. Samuel J., 2000, Project Management, a Managerial Approach, Fourth Edition, John
Wiley & Sons, Inc.
12. Newell, Michael W. and Grashina, Marina N., 2004, The Project Management Questions and Answers Book, American
Management Association, AMACOM.
13. McLeod, Graham, Smith, Derek, 1996, Managing Information Technology Projects, Course Technology, an International
Thomson Publishing Company, ITP.
14. Kerzner, Harold, 2001 Project Management, A Systems Approach to Planning, Scheduling, and Controlling, Seventh

Edition, Library of Congress Cataloging-in-Publication Data.
15. Cooke, Helen S., Tate, Karen, 2005, 36-Hour Course Project Management, Library of Congress Cataloging-in-
Publication Data
16. Verzuh, Eric, 2005, The Portable MBA, the Fast Forward MBA in Project Management, Second Edition, John Wiley &
Sons, Inc.
17. Brue, Greg and Howes, Rod, 2006, 36-Hour Course- Six Sigma, The McGraw-Hill Companies.
18. Whittingham, Ian, 2007, Project Management Professional, Mega Guide, By PrepLogic Inc.
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Initiating Planning Executing Monitoring & Closing

PMP Certification Course Outline

(II) Project Management Framework

1. Manage Project Scope 6. Manage Project Quality

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(V) Professional and Social Responsibility

(I) Becoming a PMP Course Objectives

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(I) Becoming a PMP Why PMP Certification?

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(I) Becoming a PMP What is the PMP Exam Like?

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(II) Project Management Framework Project and Project Management

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(II) Project Management Framework Project and Project Management (Contd)

What is Project Management?

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(II) Project Management Framework Areas of Expertise

2. Application area Knowledge, Standards, Regulations and Practice:

3. Understanding the Project Environment:

4. General Management Knowledge and Skills:

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(II) Project Management Framework Project Manager Skills

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(II) Project Management Framework PM Processes for a Project

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Plan Stakeholder Management Close Procurements

(II) Project Management Framework Project Management Context

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(III) Project Management Environment Project Phases

High Cost & Staffing Level

High Risk Low Risk

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(III) Project Management Environment Project Life Cycle

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(III) Project Management Environment Project Accountability

Senior Project Functional Vendors Board of Suppliers Customer

Project Manager Project Manager Role:

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(III) Project Management Environment Project Stakeholders

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Organizational Structure Influences

Who Controls the Functional Functional Mixed Project Project

Project Managers Part-time Part-time Full-time Full-time Full-time

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Organizational Structure Influences

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Scope (6) Plan Scope Management Control Scope

Time (7) Plan Schedule Management Control Schedule

Cost (4) Plan Cost Management Control Costs

Human Resource (4) Plan Human Resource Acquire Project Team

Communications (3) Plan Communications Management Manage Communications Control Communications

Risk (6) Plan Risk Management Control Risks

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Major Project Documents

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Project Management Framework and Environment

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Project Management Framework and Environment

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PM Knowledge Area Agenda