Atoha PMP Full

WELCOME TO THE CLASS
Project Management Professional

(PMP®) - 5th Edition
Nguyen Si Trieu Chau, PMP, PMI-RMP, PMI-SP, LIMC

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Gentle Reminders
Phone on Silent/Vibrant Punctuality

Mode.
Ask if in Doubt.
Time:
- 09:00 – 12:00
- 13:30 – 16:30
- Break at 10:30 & 15:00
Notify Facilitator if leaving. Have FUN, please.
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Trainer
Nguyen Si Trieu Chau, PMP, PMI-RMP, PMI-SP, LIMC
1. The first Vietnamese who got 3 certificate package (PMP, PMI-RMP, PMI-
SP)
2. The first Vietnamese who got PMI LIMC certificate, 1 of top 35 leaders who
enrolled PMI Master Class in 2016 (only one participant from Asia), got honor
LIMC certificate in the biggest LIM worldwide - PMI Leadership Institute
Meeting 2016 - North America
3. Director of PMI Vietnam Potential Chapter.
4. Figured on PMI PM Network Magazine in Feb 2014
5. The Faces of Project Management - in PMI 2015 Annual Report
6. Reviewer for PMI EMEA Congress 2017 (Europe, Africa, Middle-East).
7. Board member of IPMA Vietnam
8. Project management at big corporations such as Unilever, Nestle …
9. Trained PMP, PMI-RMP, PMI-SP … from 2012 until now
10. Consulted to GEA (schedule management) in a $100+ million project in
2014-2015
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Participants
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What’s your expectation?
Share with me please J
Let’s start now
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Outline
1. PMP introduction
2. Project Management Framework
3. Project Management Processes
4. Integration Management
5. Scope Management
6. Time Management
7. Cost Management
8. Quality Management
9. HR Management
10. Communications Management
11. Risk Management
12. Procurement Management
13. Stakeholder Management
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INTRODUCTION TO PMP
NGUYEN SI TRIEU CHAU

PMP, PMI-RMP, PMI-SP, LIMC
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CONTENT
• Learning Objectives
• PMP Examination Content Outline
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LEARNING OBJECTIVES
• Understand the project management concept

• Understand 5 process groups, 10 knowledge areas, 47 processes, all inputs, tools and
techniques and outputs
• Understand the project management process interactions
• Know how to define a new project or a new phase by obtaining authorization to start the project
or phase
• Know how to establish the total scope of the effort, define and refine the objectives, and develop
the course of action required to attain those objectives. Understand how to build, develop and
manage the project management plan and the project documents that will be used to carry out
the project
• Know how to coordinate people and resources, manage stakeholder expectations, as well as
integrate and perform the activities of the project in accordance with the project management
plan to satisfy the project specifications
• Know how to track, review, and orchestrate the progress and performance of the project; identify
any areas in which changes to the plan are required; and initiate the corresponding changes
• Know how to conclude all activities across all project management process groups to formally
complete the project, phase, or contractual obligations.
• Enhance your competency as a professional project manager
• Pass PMP exam.
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PMP Examination Content Outline
• Domain I. Initiating the Project – 13%

• Domain II. Planning the Project – 24%
• Domain III. Executing the Project – 31%
• Domain IV. Monitoring and Controlling the Project – 25%
• Domain V. Closing the Project – 7%
• Cross-Cutting Knowledge and Skills
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Domain I. Initiating the Project – 13%
Task 1 Perform project assessment based upon available information and meetings with the sponsor, customer, and other
subject matter experts, in order to evaluate the feasibility of new products or services within the given assumptions
and/or constraints
Task 2 Define the high-level scope of the project based on the business and compliance requirements, in order to meet the
customer’s project expectations
Task 3 Perform key stakeholders analysis using brainstorming, interviewing, and other data-gathering techniques, in order to
ensure expectation alignment and gain support for the project
Task 4 Identify and document high-level risks, assumptions, and constraints based on current environment, historical data,
and/or expert judgment, in order to identify project limitations and propose an implementation approach
Task 5 Develop the project charter by further gathering and analyzing stakeholder requirements, in order to document
project scope, milestones, and deliverables
Task 6 Obtain approval for the project charter from the sponsor and customer (if required), in order to formalize the
authority assigned to the project manager and gain commitment and acceptance for the project
Knowledge and skills:
-Cost-benefit analysis
-Business case development
-Project selection criteria (for example, cost, feasibility, impact)
-Stakeholder identification techniques
-Risk identification techniques
-Elements of a project charter
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Domain II. Planning the Project – 24%
Task 1 Assess detailed project requirements, constraints, and assumptions with stakeholde rs based on the proje ct charter, lessons learned from
previous projects , and the use of requirement gathe ring techniques (e.g., planning sessions, brainstorming, focus group), in order to establish
the project deliverables
Task 2 Create the work breakdown structure with the team by deconstructing the scope, in order to manage the scope of the project
Task 3 Develop a budget plan based on the project scope using estimating techniques, in order to manage project cost
Task 4 Develop a project schedule based on the project timeline, scope, and resource plan, in order to manage timely completion of the project
Task 5 Develop a human res ource management plan by defining the roles and responsibilities of the project team membe rs in orde r to crea te an
effective project organization structure and provide guidance regarding how resources will be utilized and managed
Task 6 Develop a communication plan based on the proje ct organization s tructure and external s takeholder requirements, in order to manage the
flow of the project information
Task 7 Develop a procurement plan based on the project scope and schedule, in order to ensure that the required project resources will be available
Task 8 Develop a quality management plan based on the project scope and re quirements , in orde r to prevent the occurre nce of defe cts and reduce
the cost of quality
Task 9 Develop a change management plan by defining how changes will be handled, in order to track and manage changes
Task 10 Plan risk management by developing a risk management plan, and identifying, analyzing, and prioritizing project risks in the risk registe r and
defining risk response strategies, in order to manage uncertainty throughout the project life cycle
Task 11 Present the project plan to the key stakeholders (if required), in order to obtain approval to execute the project
Task 12 Conduct a kick-off mee ting with all key stakeholders , in orde r to announce the start of the project, communicate the project milestones , and
share other relevant information
-Requirements gathering techniques
-Work breakdown structure (WBS) tools and techniques
-Time, budget, and cost estimation techniques
-Scope management techniques
-Resource planning process
-Workflow diagramming techniques
-Types and uses of organization charts
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change management planning/ risk management planning
Domain III. Executing the Project – 31%
Task 1 Obtain and manage project resources including outsourced deliverables by following the procurement plan, in order
to ensure successful project execution
Task 2 Execute the tasks as defined in the project plan, in order to achieve the project deliverables within budget and
schedule
Task 3 Implement the quality management plan using the appropriate tools and techniques, in order to ensure that work is
being performed according to required quality standards
Task 4 Implement approved changes according to the change management plan, in order to meet project requirements
Task 5 Implement approved actions and follow the risk management plan and risk register, in order to minimize the impact
of negative risk events on the project
Task 6 Maximize team performance through leading, mentoring, training, and motivating team members
-Project monitoring tools and techniques
-Elements of a statement of work
-Interaction of work breakdown structure elements within the project schedule
-Project budgeting tools and techniques
-Quality standard tools
-Continuous improvement processes
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Domain IV. Monitoring and Controlling the Project – 25%
Task 1 Measure project performance using appropriate tools and techniques, in order to identify and quantify any variances,
perform approved corrective actions, and communicate with relevant stakeholders
Task 2 Manage changes to the project scope, schedule, and costs by updating the project plan and communicating approved
changes to the team, in order to ensure that revised project goals are met
Task 3 Ensure that project deliverables conform to the quality standards established in the quality management plan by
using appropriate tools and techniques (e.g. testing, inspection, control charts), in order to satisfy customer
requirements
Task 4 Update the risk register and risk response plan by identifying any new risks, assessing old risks, and determining and
implementing appropriate response strategies, in order to manage the impact of risks on the project
Task 5 Assess corrective actions on the issue register and determine next steps for unresolved issues by using appropriate
tools and techniques in order to minimize the impact on project schedule, cost, and resources
Task 6 Communicate project status to stakeholders for their feedback, in order to ensure the project aligns with business
needs
-Performance measurement and tracking techniques (e.g. EV, CPM, PERT)
-Project control limits (e.g. thresholds, tolerance)
-Project performance metrics (e.g. efforts, costs, milestones)
-Cost analysis techniques
-Variance and trend analysis techniques
-Project plan management techniques
-Change management techniques
-Integrated change control processes
-Risk identification and analysis techniques
-Risk response techniques (e.g. transference, mitigation, insurance, acceptance)
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-Reporting procedures
Domain V. Closing the Project – 7%
Task 1 Obtain final acceptance of the project deliverables by working with the sponsor and/or customer, in order to confirm
that project scope and deliverables were met
Task 2 Transfer the ownership of deliverables to the assigned stakeholders in accordance with the project plan, in order to
facilitate project closure
Task 3 Obtain financial, legal, and administrative closure using generally accepted practices, in order to communicate formal
project closure and ensure no further liability
Task 4 Distribute the final project report including all project closure-related information, project variances, and any issues,
in order to provide the final project status to all stakeholders
Task 5 Collate lessons learned through comprehensive project review, in order to create and/or update the organization’s
knowledge base
Task 6 Archive project documents and material in order to retain organizational knowledge, comply with statutory
requirements, and ensure availability of data for potential use in future projects and internal/external audits
Task 7 Measure customer satisfaction at the end of the project by capturing customer feedback, in order to assist in project
evaluation and enhance customer relationships
-Contract closure requirements
-Basic project accounting principles
-Close-out procedures
-Feedback techniques
-Project review techniques
-Archiving techniques and statutes
-Compliance (statute/organization)
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All Domain Cross-Cutting Knowledge and Skills
- Active listening
- Brainstorming techniques
- Conflict resolution techniques
- Cultural sensitivity and diversity
- Data gathering techniques
- Decision making techniques
- Facilitation
- Information management tools, techniques, and methods
- Leadership tools and techniques
- Negotiating
- Oral and written communication techniques, channels, and applications
- PMI’s Code of Ethics and Professional Conduct
- Presentation tools and techniques
- Prioritization/time management
- Problem-solving tools and techniques
- Project management software
- Relationship management
- Stakeholder impact analysis
- Targeting communications to intended audiences (e.g. team, stakeholders, customers)
- Team motivation methods
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PROJECT MANAGEMENT
FRAMEWORK

PMP, PMI-RMP, PMI-SP, PMI LIMC
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Class Activity
• Describe your project
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Project & Project Management
• What is a Project?
A project is a temporary endeavor undertaken to create a unique product, service, or result. The temporary
nature of projects indicates that a project has a definite beginning and end. The end is reached when the
project’s objectives have been achieved or when the project is terminated because its objectives will not or
cannot be met, or when the need for the project no longer exists.
• What is Project Management?

Project management is the application of knowledge, skills, tools, and techniques to project activities to meet
the project requirements. Project management is accomplished through the appropriate application and
integration of the 47 logically grouped project management processes, which are categorized into five Process
Groups. These 5 Process Groups are:
– Initiating Balancing the competing project
– Planning constraints:
– Executing
– Monitoring and Controlling
– Closing
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Classroom Activity
• List problems you are currently having managing
projects
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Operations & Operations Management
• What are Operations?

Operations are ongoing endeavors that produce repetitive outputs, with resources assigned to do basically
the same set of tasks according to the standards institutionalized in a product life cycle.
• What is Operations Management?

Operations management is an area of management concerned with ongoing production of goods and/or
services. It involves ensuring that business operations continue efficiently by using the optimum resources
needed and meeting customer demands. It is concerned with managing processes that transform inputs (e.g.,
materials, components, energy, and labor) into outputs (e.g., products, goods, and/or services). Operations
management is responsible for overseeing, directing, and controlling business operations. Operations evolve to
support the day-to-day business, and are necessary to achieve strategic and tactical goals of the business.
Examples include: production operations, manufacturing operations, accounting operations, software support,
and maintenance.
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Program & Portfolio
• What is a Program?
A program is defined as a group of related projects, subprograms, and program activities managed in a
coordinated way to obtain benefits not available from managing them individually. By grouping related projects
into a program, an organization can coordinate the management of those projects to achieve the program’s
strategic objectives and benefits. Program management focuses on the project interdependencies and helps to
determine the optimal approach for managing them, such as resolving resource constraints/conflict, issues,
change management; aligning strategic direction.
• What is a Portfolio?
A portfolio refers to a collection of organization’s projects, programs and operations that are grouped together
to facilitate effective management to achieve strategic objectives. The programs and projects that make up the
portfolio may not be related other than the fact that they are helping to achieve that common strategic goal.
Portfolio management refers to centralized management of one or more portfolio to achieve specific strategic
objectives. Portfolio management focuses on ensuring that projects, programs are reviewed for priority
resource allocation so that is consistent with organizational strategies.
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Portfolio, Program, and Project
Management Interactions
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Project & Strategic Planning
• Project & Strategic Planning

Projects are typically authorized as a result of one or more of strategic considerations: market demand,
opportunity, business need, social need, environmental consideration, customer request, technological
advance, legal requirement. The strategic plan documents the organization’s strategic vision, goals, and
objectives and may contain a high-level mission statement. All projects should be aligned with their
organization’s strategic plan. Strategic plan alignment ensures that each project contributes to the overall
objections of the organization.
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Project Management Office (PMO)
• Project Management Office (PMO)

PMO is a management structure that standardizes the project-related governance processes and facilitates the
sharing of resources, methodologies, tools, and techniques. There are several types of PMO structures in
organizations, each varying in the degree of control and influence they have on projects within the organization, such
as: supportive, controlling and directive. A primary function of a PMO is to support project managers in a variety of
ways which may include, but are not limited to:
– Manage the interdependencies between projects.
– Help provide resources.
– Recommend the termination of projects.
– Monitor compliance with organizational processes.
– Help gather lessons learned and make them available to other projects.
– Provide templates (e.g., for work breakdown structures or communications management plans).
– Provide guidance.
– Provide centralized communication about the projects.
– Be more heavily involved during project initiating than later in the project.
– Be part of the change control board.
– Be a stakeholder.
– Prioritize projects.
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Weak matrix: power rests with the functional manager, and the power of the project manager is
comparable to that of a coordinator or expediter.
Project expediter: the project expediter acts primarily as a staff assistant and communications coordinator. The
expediter cannot personally make or enforce decisions.
Project coordinator: this position is similar to the project expediter except the coordinator has some power to
make decisions, some authority, and reports to a higher-level manager.
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Classroom Activity
• What is the current level of implementation
of project management in your
organization?
• What can you do to better implement
project management?
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Enterprise Environmental Factors (EEF)
• Culture, structure, process of organization

• Geographic distribution of facilities and resources
• Current human resources, policy
• Company work authorization systems
• Stakeholder risk tolerances
• Marketplace conditions
• Commercial database
• Project management information system
• Etc.
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Organizational Process Assets (OPA)
• Guidelines, processes, policies, procedures, knowledge bases, lesson learned, historical data
• Change control procedures, financial procedures, risk control procedures,
• Issue and defect management procedures
• Organizational communication requirements
• Procedures for prioritizing, approving, and issuing work authorizations
• Performance measurement criteria
• Schedules data, risk data and earned value data
• Etc.
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Project Life Cycle
• A project life cycle is the series of generally sequential and sometime overlapping project phases that a project
passes through from its initiation to its closure. Phases’ names and numbers are determined by the control
needs of the organization or organizations involved in the project. A life cycle can be documented with a
methodology. Characteristics of project life cycle:
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Product Life Cycle
• Product life cycle is the series of phases that represent the evolution of a product, from concept
through delivery, growth, maturity, and to retirement. A product can require many projects over its
life. For example, during a product’s conception, there may be a project to determine the
customer’s needs. When the product is mature, there may be a project to analyze the product’s
competition in the marketplace.
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Project Phases
• Project Phases
A project phase is a collection of logically related project activities that culminates in the completion of one or more
deliverables. The number of phases, the need for phases, and the degree of control applied depend on the size,
complexity, and potential impact of the project. Phase characteristics:
– The work has a distinct focus that differs from any other phase. This often involves different organizations,
locations, and skill sets.
– Achieving the primary deliverable or objective of the phase requires controls or processes unique to the phase
or its activities. The repetition of processes across all five Process Groups provides an additional degree of
control and defines the boundaries of the phase.
– The closure of a phase ends with some form of transfer or hand-off of the work product produced as the phase
deliverable. This phase end represents a natural point to reassess the activities underway and to change or
terminate the project if necessary. This point may be referred to as a stage gate, milestone, phase review,
phase gate or kill point. In many cases, the closure of a phase is required to be approved in some form before it
can be considered closed.
• Phase-to-Phase relationships
– Sequential relationship: a phase starts only when the previous phase is complete
– Overlapping relationship: a phase starts prior to completion of the previous one. This can be applied as fast
tracking à increase risks
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Predictive Life Cycles
Predictive life cycles (also known as fully plan-driven) are ones in which the project scope, and the
time and cost required to deliver that scope, are determined as early in the project life cycle as
practically possible.
Predictive life cycles are generally preferred when the product to be delivered is well understood,
there is a substantial base of industry practice, or where a product is required to be delivered in full to
have value to stakeholder groups.
Even projects with predictive life cycles may use the concept of rolling wave planning, where a more
general, high-level plan is available and more detailed planning is executed for appropriate time
windows, as new work activities are approaching and resources are to be assigned.
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Iterative and Incremental Life Cycles
Iterative and incremental life cycles are ones in which project phases (also called iterations)
intentionally repeat one or more project activities as the project team’s understanding of the product
increases. Iterations develop the product through a series of repeated cycles, while increments
successively add to the functionality of the product. These life cycles develop the product both
iteratively and incrementally.
Iterative and incremental life cycles are generally preferred when an organization needs to manage
changing objectives and scope, to reduce the complexity of a project, or when the partial delivery of a
product is beneficial and provides value for one or more stakeholder groups without impact to the final
deliverable or set of deliverables. Large and complex projects are frequently executed in an iterative
fashion to reduce risk by allowing the team to incorporate feedback and lessons learned between
iterations.
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Adaptive Life Cycles
Adaptive life cycles (also known as change-driven or agile methods) are intended to respond to high levels of
change and ongoing stakeholder involvement. Adaptive methods are also iterative and incremental, but differ in that
iterations are very rapid (usually 2 – 4 weeks in length) and are fixed in time and cost. Adaptive projects generally
perform several processes in each iteration, although early iterations may concentrate more on planning activities.
Adaptive methods are generally preferred when dealing with a rapidly changing environment, when requirements
and scope are difficult to define in advance, and when it is possible to define small incremental improvements that
will deliver value to stakeholders.
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END.
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PROJECT MANAGEMENT
PROCESSES

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Project Management Process Groups
Knowledge Areas
Initiating Planning Executing Monitoring and Controlling Closing
4. Project Integration 4.1. Develop 4.2. Develop Project Management 4.3. Direct and Manage Project 4.4. Monitor and Control Project Work 4.6. Close Project
Management Project Charter Plan Work 4.5. Perform Integrated Change Control or Phase
5.1. Plan Scope Management
5. Project Scope 5.2. Collect Requirements 5.5. Validate Scope
Management 5.3. Define Scope 5.6. Control Scope
5.4. Create WBS
6.1. Plan Schedule Management
6.2. Define Activities
6. Project Time 6.3. Sequence Activities
6.7. Control Schedule
Management 6.4. Estimate Activity Resources
6.5. Estimate Activity Durations
6.6. Develop Schedule
7.1. Plan Cost Management
7. Project Cost
7.2. Estimate Costs 7.4. Control Costs
Management
7.3. Determine Budget
8. Project Quality
8.1. Plan Quality Management 8.2. Perform Quality Assurance 8.3. Control Quality
Management
9.2. Acquire Project Team
9. Project Human 9.1. Plan Human Resource
9.3. Develop Project Team
Resource Management Management
9.4. Manage Project Team
10. Project
10.1. Plan Communications
Communications 10.2. Manage Communications 10.3. Control Communications
Management
Management
11.1. Plan Risk Management
11.2. Identify Risks
11. Project Risk 11.3. Perform Qualitative Risk Analysis
11.6. Control Risks
Management 11.4. Perform Quantitative Risk
Analysis
11.5. Plan Risk Responses
12. Project
12.4. Close
Procurement 12.1. Plan Procurement Management 12.2. Conduct Procurements 12.3. Control Procurements
Procurements
Management
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13. Project Stakeholder 13.1. Identify
13.2. Plan Stakeholder Management
13.3. Manage Stakeholder
13.4. Control Stakeholder Engagement
3838
Management Stakeholders Engagement
Project Management Process Interactions
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Project Management Process Groups
Project management processes are grouped into 5 Project Management Process Groups
(or Process Groups):
• Initiating Process Group. Those processes performed to define a new project or a
new phase of an existing project by obtaining authorization to start the project or
phase.
• Planning Process Group. Those processes required to establish the scope of the
project, refine the objectives, and define the course of action required to attain the
objectives that the project was undertaken to achieve.
• Executing Process Group. Those processes performed to complete the work defined
in the project management plan to satisfy the project specifications.
• Monitoring and Controlling Process Group. Those processes required to track, review,
and regulate the progress and performance of the project; identify any areas in which
changes to the plan are required; and initiate the corresponding changes.
• Closing Process Group. Those processes performed to finalize all activities across all
Process Groups to formally close the project or phase.
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Project Information
• Work performance data. The raw observations and measurements identified during
activities performed to carry out the project work. Examples include reported percent of
work physically completed, quality and technical performance measures, start and finish
dates of schedule activities, number of change requests, number of defects, actual
costs, actual durations, etc.
• Work performance information. The performance data collected from various
controlling processes, analyzed in context and integrated based on relationships
across areas. Examples of performance information are status of deliverables,
implementation status for change requests, and forecasted estimates to complete.
• Work performance reports. The physical or electronic representation of work
performance information compiled in project documents, intended to generate decisions
or raise issues, actions, or awareness. Examples include status reports, memos,
justifications, information notes, electronic dashboards, recommendations, and updates.
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Classroom Activity
• What skills and characteristics do you
believe a project manager needs?
• Each team will brainstorm these and
identify their top 5
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END.
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PROJECT INTEGRATION
MANAGEMENT

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Introduction
Project Integration Management:
• is the primary role of the project manager
• includes the processes and activities to identify, define, combine, unify and coordinate the various
processes and project management activities within the project management process groups
• includes making choices about resource allocation, making trade-offs among competing
objectives and alternatives, and managing the interdependencies among the project management
knowledge areas
• includes the activities needed to manage project documents to ensure consistency with the
project management plan and product, service, or capability deliverables
Monitoring &
Initiating Planning Executing Closing
Controlling
Develop Project Monitor and Close
Develop Project Direct and Manage
Management Control Project Project or
Integration Charter Project Work
Plan Work Phase
Management
Processes Perform Integrated
Change Control
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4.1. Develop Project Charter
Inputs - Project statement of work

- Business case
• The process of developing a document that formally
- Agreements authorizes the existence of a project or a phase and
- Enterprise environmental provides the project manager with the authority to
factors
- Organizational process assets
apply organizational resources to project activities.
Tools and - Expert judgment

techniques - Facilitation techniques • The project charter will be created or issued by the
project initiator/sponsor. However, it is recommended
Outputs - Project charter
that the project manager participate in the development
of the project charter, so the project initiator/sponsor
should delegate that duty to the project manager, and
only should be at a high level to fund the project.
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• Inputs
- Business case
- Agreements
– Project statement of work (SOW)
- Enterprise environmental • Business need. Organization’s business need may be based on
factors a market demand, organizational need, customer request, legal
- Organizational process assets requirement, technological advance, ecological impact, social
need
• Product scope description. Narrative description of project’s
techniques - Facilitation techniques
products or services
Outputs - Project charter
• Strategic plan. Organization’s strategic plan documents the
strategic vision, goals, and objectives and may contain a high-
level mission statement.
– Business case
• Provide necessary information from a business standpoint to
determine whether or not the project is worth the required
investment
• Typically business need and cost-benefit analysis are contained
in the business case to justify the project and establish
boundaries for the project
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• Inputs
- Business case
- Agreements
– Enterprise environmental factors
- Enterprise environmental • Organizational culture, structure
factors • Governmental and industry standards, including regulations
• Project Management Information System (PMIS) includes
automated tools, such as scheduling software, a configuration
management system, shared workspaces for file storage or
distribution
Outputs - Project charter • Marketplace conditions
– Organizational process assets
• Templates, standard processes, procedures, policies, and
process definitions
• Historical information
• Lessons learned knowledge base
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• Tools and techniques
- Business case
- Agreements
– Expert judgment
- Enterprise environmental • Companies from the same industry
factors • Associations that provide professional and technical services
• Departments in the organization that may have expertise but
may not be directly involved in the project
techniques - Facilitation techniques • Project Management Office (PMO)
• Stakeholders
Outputs - Project charter – Facilitation techniques
• Guide the development of the project charter
• Brainstorming, meeting management, and conflict resolution are
examples of key techniques used by facilitators to help teams
and individuals accomplish project activities
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• Outputs
- Business case
- Agreements
– Project charter. A document is issued by the sponsor or initiator that
- Enterprise environmental
formally authorizes the existence of a project, and provides the project
factors manager with the authority to apply organizational resources to project
- Organizational process assets activities
• Project title and description
• Project’s purpose or justification
• Project manager assigned and authority level
Outputs - Project charter • Assumptions and constraints
• Stakeholders
• High-level requirements and product description
• Measurable project objectives: summary milestone schedule and
summary budget
• Approval requirements
• High-level risks
• Name and authority of the sponsor or other person(s)
authorizing the project charter
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Class Activity
• Define your project charter
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Project Selection Method
Project Selection Method. 2 categories:

1.Benefit measurement methods (comparative approach)
– Murder board (a panel of people who try to shoot down a new project idea)
– Peer review
– Scoring model
– Economic model
2.Constrained optimization methods (mathematical approach)
– Linear programming
– Integer programming
– Dynamic programming
– Multi-objective programming
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Economic Model
• Present value
• Net present value (NPV): select the highest one
• Internal rate of return (IRR): select the highest one
• Payback period: select the shortest one
• Benefit cost ratio (B/C): select the highest one
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Economic Model
• Present value Present value: Means the value today of future cash flows
• Net present value (NPV): PV = FV/(1+r)^n
select the highest one
•PV: present value
• Internal rate of return (IRR):
select the highest one •FV: future value
• Payback period: select the •r: interest rate
shortest one •n: number of time periods
• Benefit cost ratio (B/C):
•Question: What is the present value of 100,000 received 2 years from
now if we expect the interest rate to be 10% per year? Should the answer
be more or less than 100,000?
•Answer: Less. I can put an amount less than 100,000 in the bank now
and 2 years later I will have 100,000. Solve: 100,000/(1+0.1)^2 = 82,645
©Atoha JSC 56
Economic Model
• Present value Net present value (NPV): The present value of the total benefits (income
• Net present value (NPV): or revenue) minus the costs over many time periods. The project with the
select the highest one highest NPV is typically selected.
• Payback period: select the •Question: You have 2 projects from which to choose: project A will take
shortest one 2 years to complete and has an NPV of 40,000 or project B will take 5
• Benefit cost ratio (B/C): years to complete and has an NPV of 65,000. Which one would you
select the highest one prefer?
•Answer: Project B. The number of years is not relevant, as it would have
been taken into account in the calculation of the NPV.
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Economic Model
• Present value Internal rate of return (IRR): The project with the highest return will be
• Net present value (NPV): selected
select the highest one •Question: You have 2 projects from which to choose: project A with an
• Payback period: select the IRR of 27% or project B with an IRR of 19%. Which one do you choose?
shortest one •Answer: Project A
• Benefit cost ratio (B/C):
©Atoha JSC 58
Economic Model
• Present value Payback period: Time periods to recover your investment before
• Net present value (NPV): accumulating profit. The shortest one is typically selected
select the highest one •Question: You have 2 projects from which to choose: project A with
• Payback period: select the payback period of 6 years or project B with payback period of 8 years.
shortest one Which one would you prefer?
• Benefit cost ratio (B/C): •Answer: Project A
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Economic Model
• Present value Benefit cost ratio (B/C)

• Net present value (NPV): •B/C < 1: unfavorable
•B/C > 1: higher is better
• Payback period: select the •Question: If the benefit cost ratio of project A is 3.1 and the benefit cost
shortest one ratio of project B is 2.7, which project would you prefer?
• Benefit cost ratio (B/C): •Answer: Project A which has higher benefit cost ratio
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Terms
Opportunity cost: refers to the opportunity given up by selecting one project over another
•Question: You have 2 projects from which to choose: project A with NPV of 55,000 or project B with NPV of
60,000. What is the opportunity cost of selecting project B?
•Answer: 55,000
Sunk costs: are expended costs. Be aware that accounting standards say that sunk costs should not be
considered when deciding whether to continue with a trouble project
•Questions: You have a project with an initial budget of 1,000,000. You are halfway through the project and
spent 1,200,000. Do you consider that it is already 200,000 over budget when determining whether to continue
with the project?
•Answer: No, the money spent is gone
Law of Diminishing return: The law states that adding more resources will not produce a proportional increase
in productivity.
•For example: A single worker may build 1 square meter of a floor per hour. With second worker, the two may
build 1.8 square meter of a floor per hour. With a third worker, the group may build 2.4 square meter of a floor
per hour
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Terms
Depreciation: Assets purchased by a company lose value over time. Accounting standards call this depreciation.
Depreciation forms:
– Straight Line Depreciation: the same amount of depreciation is taken each year.
For example: A $10,000 item with a 5-year useful life and no salvage value (how much the
item is worth at the end of its life) would be depreciated at $2,000 per year
– Accelerated Depreciation: Accelerated depreciation depreciates faster than straight line depreciation.
There are 2 forms of accelerated depreciation: Double Declining Balance and Sum of the Years Digits
For example: A $10,000 item with a 10-year useful life and no salvage value (how much the
item is worth at the end of its life) would be depreciated at $1,900 in the first year, $1,700 in the
second year, $1,500 in the third year, etc.
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Fill in the blank:
IF YOU FAIL TO PLAN,

YOU ARE ___ ___ ___
Benjamin Franklin
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4.2. Develop Project Management Plan
Inputs - Project charter

• The process of defining, preparing, and coordinating all subsidiary plans
- Outputs from other processes
and integrating them into a comprehensive project management plan.
factors
- •
Organizational process assets The project management plan is a formal, approved document that defines
how the project is executed monitored and controlled, and closed.
Outputs - Project management plan
©Atoha JSC 64

• Inputs
• Guidelines dictated by industry or government
factors
• PMIS
• Organizational structure, culture, management practices, and sustainability
• Infrastructure
Tools and - Expert judgment • Practices used in administrations of personnel
• Standard project life cycles
Outputs - Project management plan • Quality policies and procedures
• Configuration management knowledge base
• Change control procedures
• Risk management processes
• Historical information and lessons learned knowledge base
• Project files from previous projects
– Facilitation techniques
• Guide the development of the project charter
• Brainstorming, meeting management, and conflict resolution are examples of
key techniques used by facilitators to help teams and individuals achieve
agreement to accomplish project activities
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• Outputs
- Enterprise environmental – Project management plan: is a formal & approved
factors document that describes how the project will be
executed, monitored, and controlled. Project
management plan (below table) integrates and
consolidates all of the subsidiary management plans
and baselines from the planning processes.
• Project baselines include:

– Scope baseline
– Schedule baselines
– Cost baseline
©Atoha JSC 66

factors

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4.3. Direct and Manage Project Work
Inputs - Project management plan

• The process of leading and performing the work defined in the project
- Approved change requests
management plan and implementing approved changes to achieve the
project’s objectives
factors
• Activities:
Tools and - Expert judgment – Create project deliverables
techniques - Project management – Record project data: progress, status, time, cost, etc. of deliverables
information system – Train and manage project team members
- Meetings – Establish and manage project communication channels
– Manage risks and implement risk response activities
Outputs - Deliverables
– Manage sellers and suppliers
- Work performance data
– Manage stakeholders and their engagement
- Change requests
- Project management plan
– Collect and document lesson learned
updates – Look for change and manage change as early as possible, initiate change
- Project documents updates
request if necessary
– Implement approved change request
– Implement approved process improvement activities
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• Inputs
– Approved change requests: an output of the Perform Integrated Change
Inputs - Project management plan Control process, a change control status update will indicate that some
- Approved change requests changes are approved by the change control board (CCB). Approved
- Enterprise environmental change requests are scheduled for implementation by project team, and
factors may require implementation of preventive or corrective actions
• Business and customer cultural and structural practices within the
techniques - Project management organization
information system • Infrastructure
- Meetings
• Risk tolerances
• PMIS
Outputs - Deliverables
- Work performance data • Practices used in personal administrations
- Change requests – Organizational process assets
• Project files from previous projects
updates
• Procedures and directives for producing work
• Requirements for communication
• Procedures, database for issue and defect management
• Database for process measurement
©Atoha JSC 69

– Meetings
factors • Includes the project manager, the project team and appropriate
- Organizational process assets stakeholders involved or affected by the topics addressed
• Tend to be: information exchange, brainstorming, option
Tools and - Expert judgment evaluation, design or decision making
techniques - Project management
• Meetings are most effective when all participants can be face-to-
information system
face in the same location
- Meetings
• Virtual meetings can be held using audio and/ or video
Outputs - Deliverables conferencing tools, but generally require additional preparation
- Work performance data and organization to achieve the same effectiveness of a face-to-
- Change requests face meeting
updates
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• Outputs
– Deliverables: an approved deliverable is any unique and verifiable product, result, or
Inputs - Project management plan capability to perform a service that must be produced to complete a process, phase or
- Approved change requests project. Deliverables are typically tangible components completed to meet the project
- Enterprise environmental objectives
factors – Work performance data
• Are the raw observations and measurements identified during activities being
performed to carry out the project work
Tools and - Expert judgment • Data are often viewed as the lowest level of detail from which information is
techniques - Project management derived by other processes
information system
• Date is gathered through work execution and passed to the controlling
- Meetings processes of each process for further analysis
• Example of work performance data includes work completed, key performance
Outputs - Deliverables indicators, technical performance measures, start and finish dates of schedule
- Work performance data activities, number of change requests, number of defects, actual costs, actual
- Change requests duration, etc. à inputs to all control processes
- Project management plan – Change requests
updates
• Changes to the project management plan can occur as work is performed,
- Project documents updates comparing planned results to actual results, or any request from customer, or
sponsor
• May require implementation of corrective action/ preventive action/ defect
repair/updates
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4.4. Monitor and Control Project Work
• The process of tracking, reviewing, and reporting the progress to meet the
performance objectives defined in the project management plan. The key benefit
of this process is that it allows stakeholders to understand the current state of the
- Schedule forecasts
project, the steps taken, and budget, schedule, and scope forecasts
- Cost forecasts
- Validated changes • Monitoring includes collecting, measuring, and distributing performance
- Work performance information
information, and assessing measurements and trends to effect process
improvements
factors
• Controlling includes determining corrective or preventive actions or re-planning
Tools and - Expert judgment and following up on action plans to determine whether the actions taken resolved
techniques - Analytical techniques the performance issue.
- Project Management
Information System
– Comparing actual project performance against the project management plan
- Meetings
– Assessing performance to determine whether any corrective or preventive
Outputs - Change requests actions are indicated, and then recommending those actions as necessary
- Work performance reports – Monitoring existing risks and identifying new risks
– Providing information to support status reporting, progress measurement,
updates
and forecasting
– Providing forecasts to update current cost and current schedule information
©Atoha JSC 72

• Inputs
– Schedule forecasts: output of Control Schedule
- Cost forecasts
- Validated changes
– Cost forecasts: output of Control Costs
- Work performance information – Validated changes: output of Control Quality
- Enterprise environmental – Work performance information: is the performance data collected
factors from various controlling processes, analyzed in context, and
- Organizational process assets integrated based on relationships across areas. Thus work
performance data has been transformed into work performance
Tools and - Expert judgment information
techniques - Analytical techniques – Enterprise environmental factors
- Project Management • Governmental or industry standards
Information System • Work authorization systems
- Meetings • Stakeholder risk tolerances
• PMIS
Outputs - Change requests – Organizational process assets
- Work performance reports • Organizational communication requirements
- Project management plan • Procedures for financial control, change control, risk control
updates • Procedures for issues and defect management
- Project documents updates • Database for lessons learned
©Atoha JSC 73

- Cost forecasts – Analytical techniques: to forecast potential outcomes based on
- Validated changes possible variations of project
- Work performance information • Regression analysis, Causal analysis, Root cause analysis, Reserve
- Enterprise environmental analysis, Trend analysis, Earned value management (EVM) and Variance
factors analysis
- Organizational process assets • Grouping methods
• Failure mode and effect analysis ( FMEA), Fault tree analysis (FTA)
Tools and - Expert judgment • Forecasting methods (e.g., time series, scenario building, simulation, etc.)
techniques - Analytical techniques
– Project Management Information System: part of EEF, provides
access to automated tools, such as scheduling, cost, and resourcing
Information System
tools, performance indicators, databases, project records, and
- Meetings
financials used during the Monitor and Control Project Work process
Outputs - Change requests
- Work performance reports
updates
©Atoha JSC 74
• Outputs
– Change requests: as a result of comparing planned to actual results
• Change requests may be issued to expand, adjust, or reduce project scope,
product scope, or quality requirements, schedule baseline, cost baseline
- Cost forecasts • Change requests can impact the project management plan, project documents,
- Validated changes
or product deliverables
- Work performance information • Changes that meet the project’s change control criteria should go through the
- Enterprise environmental integrated change control process. May be include: corrective actions,
factors
preventive actions, defect repair
- Organizational process assets – Work performance reports: are the physical or electric representations of work
performance information compiled in project documents, intended to generate
decisions, actions, or awareness. Work performance reports are a subset of project
documents, include status reports, memos, justifications, information notes,
recommendations, and updates
– Project management plan updates:
Information System
- Meetings
• Project baselines
• Scope/ requirements/ schedule/ cost/ quality management plan
Outputs - Change requests – Project documents updates:
- Work performance reports • Schedule and cost forecasts
- Project management plan • Work performance reports
updates • Issue log
©Atoha JSC 75
4.5. Perform Integrated Change Control
• The process of reviewing all change requests, looking for and evaluating
any impacts, approving changes and managing changes to the
- Change requests
deliverables, organizational process assets, project documents and the
project management plan; and communicating their disposition.
factors
• Inputs
Tools and - Expert judgment – Work performance reports: resource availability, schedule and cost data, and
techniques - Meetings earned value management (EVM) reports
- Change control tools – Change requests: may include corrective action, preventive action, and defect
repair
Outputs - Approved change requests – Enterprise environmental factors: PMIS may include the scheduling software
- Change log tool, a configuration management system, an information collection and
- Project management plan distribution system, or web interfaces to other online automated systems.
updates – Organizational process assets:
- Project documents updates • Procedures designed to control change
• Approval and change authorization procedures
• Process measurement database
• Project documents
©Atoha JSC 76
Inputs - Project management plan • Tools and techniques
– Meetings: usually referred to as change control meetings
- Change requests
• Change control board (CCB) is responsible for meeting and reviewing the
- Enterprise environmental change requests and approving or rejecting those changes
factors • The roles and responsibilities of these boards are clearly defined and
- Organizational process assets agreed upon by appropriate stakeholders and documented in the change
management plan
Tools and - Expert judgment • CCB decisions are documented and communicated to the stakeholders
techniques - Meetings – Change control tool: are manual or automated tools
- Change control tools
• Outputs
Outputs - Approved change requests – Approved change request
- Change log • Approved change requests will be implemented through the Direct and
- Project management plan Manage Project Work process
updates • The status of change requests (approved or rejected) must be
- Project documents updates documented in the change log as part of updates to the project
documents
– Change log
• Is used to document changes that occur during the project (approved or
rejected), includes their impacts to project in terms of time, cost, risk, etc.
• Is communicated to the appropriate stakeholders
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Detailed Process for Making Changes
- Change requests
1.Prevent the root cause of changes
- Enterprise environmental 2.Identify changes
factors 3.Look at the impact of the change within the knowledge area
4.Create a change request
5.Perform integrated change control
techniques - Meetings – Assess the change
- Change control tools – Look for options
– The change is approved or rejected
Outputs - Approved change requests – Update the status of the change in the change log
- Change log – Adjust the project management plan, project documents, and
- Project management plan baselines as necessary
updates
6.Manage stakeholders’ expectations by communicating the change to
stakeholders affected by the change
7.Manage the project to the revised project management plan and
project documents
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4.6. Close Project or Phase
Inputs - Project management plan • The process of finalizing all activities across all of the project management
- Accepted deliverables process groups to formally complete the project or phase. It is used also for
- Organizational process assets projects which are terminated before completion

• Inputs
- Meetings
• Guidelines or requirements for phase or project closure
• Information from previous projects such as files and documentation of the
Outputs - Final product, service, or result project close information
transition
• Outputs
– Final product, service, or result transition
updates
• Formal acceptance or project’s final deliverables
• Formally hand over final deliverables to internal/external customer
(finished, unfinished deliverables or cancelled projects)
– Organizational process assets updates
• Project files
• Project or phase closure documents
• Historical information
• Lessons learned are finished in Close Project or Phase, but written down
throughout the entire project
©Atoha JSC 79
END.
©Atoha JSC 80
PROJECT SCOPE MANAGEMENT

©Atoha JSC 81
Introduction
Project Scope Management: includes the processes required to ensure that the project includes all the
work required, and only the work required to complete the project successfully. Managing the project
scope is primarily concerned with defining and controlling what is and is not included in the project
• Product scope: any requirements that relate to the product of the project, such as the features
and functions that characterize a product, service, or result
• Project scope: the work performed to deliver a product, service, or result with the specified
features and functions. This work includes the planning, coordination, and management activities
(such as meetings and reports) that ensure the product scope is achieved
Monitoring &
Controlling
Plan Scope Management Validate Scope

Scope
Collect Requirements Control Scope
Management
Processes Define Scope
Create WBS
©Atoha JSC 82

• The process of creating a scope management plan that documents how the
- Project charter
project scope will be defined, validated, and controlled
factors
- •
Organizational process assets Inputs
– Project charter
• Is used to provide the project context needed
techniques - Meetings
• Provides the high-level project description and product characteristics
from the project SOW
Outputs - Scope management plan
- Requirements management – Enterprise environmental factors: includes Organization’s culture,
plan infrastructure, personnel administration, marketplace conditions
– Organizational process assets: included policies, procedures,
historical information and lessons learned knowledge based

– Meetings: all relevant stakeholders such as project sponsor, project
manager, selected team members, selected stakeholders, anyone
with responsibility for the scope management processes
©Atoha JSC 83
Inputs - Project management plan • Outputs

- Project charter
– Scope management plan: is a component of the project management plan,
- Enterprise environmental describes how the scope will be defined, developed, monitored, controlled, and
factors verified. The components include:
- Organizational process assets • Process for preparing a detailed project scope statement
• Process that enables the creation of the WBS from the detailed project
Tools and - Expert judgment scope statement
techniques - Meetings • Process that establishes how the WBS will be maintained and approved
• Process that specifies how formal acceptance of the completed project
Outputs - Scope management plan
deliverables will be obtained
- Requirements management
• Process to control how requests for changes to the detailed project scope
statement will be processed, and this is directly linked to the Perform
plan
Integrated Change Control process
– Requirements management plan: is a component of the project management
plan, describes how the requirements will be analyzed, documented, and
managed.
• How requirements activities will be planned, tracked and reported
• How changes to product will be initiated, how impacts will be analyzed,
tracked and approved
• Requirements prioritization process
• Traceability structure to reflect which requirement attributes will be
captured on the traceability matrix
©Atoha JSC 84
5.2. Collect Requirements
Inputs - Scope management plan

• The process of determining, documenting and managing stakeholders needs
and requirements to meet the project objectives. The key benefit of this process
plan
is that it provides the basic for defining and managing the project scope
- Stakeholder management plan
including product scope
- Project charter
- Stakeholder register • These requirements can be grouped into classification allowing for further
refinement and detail as the requirements are elaborated. These classifications
Tools and - Interviews include:
techniques - Focus groups – Business requirements: higher level needs of organization, such as any
- Facilitated workshops opportunities, and reasons why a project has been undertaken
- Group creativity techniques – Stakeholder requirements: any needs of a stakeholders/stakeholder group
- Group decision making – Solution requirements: any features, functions, and characteristics of the product,
techniques services that will meet the business and stakeholder requirements. There are
- Questionnaires and surveys functional and nonfunctional requirements
- Observations – Transition requirements: temporary capabilities, such as data conversion, and
- Prototypes training requirements, etc.
- Benchmarking – Project requirements: any actions, processes, or other conditions the project needs
- Context diagrams to meet
- Document analysis – Quality requirements: any condition or criteria needed to validate the successful
completion of a project deliverable, or fulfillment of other project requirements
Outputs - Requirements documentation
©Atoha-JSC Requirements traceability 85
matrix

• Inputs
plan
– Scope management plan
- Stakeholder management plan – Requirements management plan
- Project charter – Stakeholder management plan: is used to understand stakeholder
- Stakeholder register communication requirements and level of stakeholder engagement in
order to assess and adapt to the level of stakeholder participation in
Tools and - Interviews requirements activities
techniques - Focus groups
– Project charter: is used to provide the high-level description of the
- Facilitated workshops
- Group creativity techniques
product/service of the project so that detailed requirements can be
- Group decision making
developed
techniques – Stakeholder register: is used to identify stakeholders (individuals &
- Questionnaires and surveys organizations) who can provide information on detailed project and
- Observations product requirements
- Prototypes
- Benchmarking
- Context diagrams
- Document analysis

matrix

– Interviews
plan
– Focus groups:
- Project charter • Bring together prequalified stakeholders and subject matter experts to
- Stakeholder register
learn about their expectations and attitude about a proposed product,
service, or result
• A trained moderator guides the group through an interactive discussion,
Tools and - Interviews
designed to be more conversational than a one-on-one interview
– Facilitated workshops
- Group creativity techniques • Bring key stakeholders together to define product requirements
- Group decision making • Define cross-functional requirements and reconcile stakeholders
techniques differences
- Questionnaires and surveys • Well-facilitated sessions can build trust, foster relationships, improve
- Observations communication, and increase stakeholder consensus
- Prototypes • User stories, which are short, textual descriptions of required functionality,
- Benchmarking are often developed during a requirements workshop. User stories
- Context diagrams describe the stakeholder who benefits from the feature (role), what the
- Document analysis stakeholder needs to accomplish (goal), and the benefit to the
stakeholder (motivation). User stories are widely used with agile methods
matrix

– Group creativity techniques
plan
• Brainstorming: a technique used to generate and collect multiple ideas related to
- Stakeholder management plan project and product requirements
- Project charter • Nominal group technique: a technique that enhances brainstorming with a voting
- Stakeholder register process used to rank the most useful & potential ideas for further brainstorming or for
prioritization
• Idea/mind mapping: a technique in which ideas created through individual
brainstorming sessions are consolidated into a single map to reflect commonality and
techniques - Focus groups differences in understanding, and generate new ideas
- Facilitated workshops • Affinity diagram: classify large numbers of ideas into groups for review and analysis
- Group creativity techniques • Multi-criteria decision analysis: a technique that utilizes a decision matrix to provide
- Group decision making a systematic analytical approach for establishing criteria, such as risk levels,
uncertainty, and valuation, to evaluate and rank many ideas.
techniques
– Group decision making techniques
- Questionnaires and surveys
• Unanimity: a decision that is reached whereby everyone agrees. E.g., Delphi
- Observations
technique is a way of letting all experts in a group give their feedback about what
- Prototypes should be in the product while keeping them anonymous
- Benchmarking • Majority: a decision that is reached with support obtained from more than 50% of the
- Context diagrams members of the group
- Document analysis • Plurality: a decision that is reached whereby the largest block in the group decides,
even if a majority is not achieved
• Dictatorship: one individual makes the decision for the group
matrix

– Questionnaires and surveys: use questionnaires and/or surveys to get
plan
requirements from a big group of users, customers, or stakeholders when are
geographically dispersed and where statistical analysis is appropriate.
- Project charter
– Observations: is also known as “job shadowing”. It is useful when stakeholders
have difficulties or are reluctant to tell their requirements
– Prototypes: are models of the product that you’re going to build that let your
stakeholders to have better ideas to elicit requirements. Storyboarding is a
prototyping technique showing sequence or navigation through a series of
- Facilitated workshops images or illustrations.
– Benchmarking: compare to appropriate organizations to identify best
- Group decision making practices, generate ideas for improvement, and provide a basis for measuring
techniques performance
– Context diagram: an example of a scope model. Context diagrams visually
- Observations depict the product scope by showing a business system (process, equipment,
- Prototypes computer system, etc.), and how people and other systems (actors) interact
- Benchmarking with it
- Context diagrams – Document analysis: analyze existing documentation and identify information
- Document analysis relevant to the requirements; includes business plan, marketing literature,
request for proposal, other requirements documents, etc.
matrix

• Outputs
plan
– Requirements documentation: Components of requirements
documentation can include:
- Project charter • Business requirements: business and project objectives,
- Stakeholder register business rules, etc.
• Stakeholder requirements: organizational impacts,
Tools and - Interviews communication and reporting, etc.
• Solution requirements: functional and nonfunctional
requirements, quality requirements, etc.
- Group decision making • Project requirements: level of service, performance, safety,
techniques compliance
- Questionnaires and surveys • Transition requirements
- Observations
• Requirements assumptions, dependencies, and constraints
- Prototypes
- Benchmarking
- Context diagrams
- Document analysis

matrix
• Outputs
– Requirements traceability matrix: is a grid
• Links product requirements from their origin to the deliverables that satisfy them
• Helps ensure that each requirement adds business value by linking it to the
plan
business and project objectives
• Provides a mean to track requirements throughout the project life cycle, help to
- Project charter
make sure that requirements approved in the requirements documentation are
delivered at the end of the project
• Provides a structure for managing changes to the project scope
- Group decision making
techniques
- Observations
- Prototypes
- Benchmarking
- Context diagrams
- Document analysis

matrix
5.3. Define Scope

• The process of developing a detailed description of the project and
- Project charter
product
- Requirements documentation
-
•
Organizational process assets
The preparation of a detailed project scope statement is critical to project
success and builds upon the major deliverables, assumptions, and
Tools and - Expert judgment constraints that are documented during project initiation
techniques - Product analysis
- Alternatives generation
• Inputs
– Scope management plan
Outputs - Project scope statement – Project charter
- Project documents updates – Requirements documentation
– Organizational process assets: templates, procedures, project files from
previous projects, and lessons learned from similar projects will help to define
project scope statement
©Atoha JSC 92
5.3. Define Scope

- Project charter
- Requirements documentation – Product analysis:
- Organizational process assets • Product analysis can be an effective tool for projects that have a product
as a deliverable
Tools and - Expert judgment • Translate high-level product descriptions into tangible deliverables
techniques - Product analysis • Includes product breakdown, system analysis, requirements analysis,
- Alternatives generation system engineering, value analysis, and value engineering
- Facilitated workshops – Alternatives generation: exploring different product concepts, design
options, and project approach can help to find the combination that
Outputs - Project scope statement
delivers the maximum fulfillment of project requirements
– Facilitated workshops: helps to reach a cross-functional and
common understanding of the project objectives and its limits
©Atoha JSC 93
5.3. Define Scope

• Outputs
- Project charter
- Requirements documentation – Project scope statement: Describes the project’s deliverables and
- Organizational process assets the work needed to create those deliverables. Components of the
project scope statement
Tools and - Expert judgment • Product scope description
techniques - Product analysis • Acceptance criteria
- Alternatives generation • Project deliverables
• Project exclusion (what are out of scope)
• Constraints: limiting factors that affect the execution of a project or
Outputs - Project scope statement
process, such as pre-defined budget, any imposed dates, schedule
milestones, etc.
• Assumption: factor in the planning process that is considered to be true,
real, or certain, without proof or demonstration. Also describes the
potential impact of those factors if they prove to be false
– Project documents updates: stakeholder register, requirements
documentation, and requirements traceability matrix
©Atoha JSC 94
5.4. Create WBS

• The process of subdividing project deliverables and project work into smaller,
- Project scope statement
more manageable components.
factors
- •
– Enterprise environmental factors: industry – specific WBS standards
Tools and - Decomposition
– Organizational process assets: WBS templates, WBS from similar
techniques - Expert judgment
projects, lessons learned
Outputs - Scope baseline

- Project documents updates • Tools and techniques
– Decomposition
• Is a technique used for dividing and subdividing the project scope and project
deliverables into smaller, more manageable parts
• The work package is the work defined at the lowest level of the WBS for which
cost and duration can be estimated and managed
• The level of detail for work packages will vary with the size and complexity of
the project
• Rolling wave planning is a technique that decomposition of some deliverables
can be waited until uncertainty is clarified and agreed on
©Atoha JSC 95
5.4. Create WBS

• Outputs:
– Scope baseline: a component of the project management plan. It is
the approved version of:
• Project scope statement
factors
• WBS


• WBS dictionary: is a document that provides detailed deliverable,

activity, and scheduling information about each component in the WBS.
WBS dictionary may include: code of account identifier, description of
work, assumptions and constraints, resources required, acceptance
criteria, etc.
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5.4. Create WBS

WBS
– The WBS is a graphical picture of the hierarchical decomposition of the total
- Requirements documentation scope of work to be carried out by the project team to accomplish the project
- Enterprise environmental objectives and create the required deliverables
factors – Identifies all the deliverables to be completed. If it is not in the WBS, it is not part
- Organizational process assets of the project.
– Valuable result of creating a WBS is team buy-in (make team speaking the same
language)
techniques - Expert judgment – Should exist for every project
– Forces you to think through all aspects of the project
– Can be reused for other projects
– Does NOT show dependencies
– The WBS is finalized by assigning each work package to a control account and
establishing a unique identifier for that work package from a code of accounts.
– A control account is a management control point where scope, budget, actual
cost, and schedule are integrated and compared to the earned value for
performance measurement.
– Each control account may include one or more work packages, but each of the
work packages should be associated with only one control account
– A control account may include one or more planning packages. A planning
package is a WBS component below the control account with known work content
but without detailed schedule activities.
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9797
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Class Activity
• Define the WBS of your project
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5.5. Validate Scope

• The process of formalizing acceptance of the completed project
deliverables. Validate Scope includes reviewing verified deliverables
- Requirements traceability
(obtained from the Control Quality process) with the customer or sponsor to
matrix
ensure that they are completed satisfactorily and obtaining formal
- Verified deliverables
acceptance of deliverables by the customer or sponsor
Tools and - Inspection • Difference between Validate Scope and Control Quality:
techniques - Group decision-making
– Control Quality: is primarily concerned with correctness of the
deliverables and meeting the quality requirements specified for the
Outputs - Accepted deliverables
deliverables. In Control Quality, the quality control department checks
- Change requests
to see if the requirements specified for the deliverables are met and
makes sure the work is correct à Verified deliverables
– Validate Scope: is primarily concerned with acceptance of the
deliverables. In Validate Scope, the customer checks and hopefully
accepts the deliverables à Accepted deliverables
– In general, Control Quality will be performed before Validate Scope (to
make sure the deliverable meets the requirements before it is shown
to the customer), OR may be performed in parallel.
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5.5. Validate Scope

• Inputs
- Requirements traceability – Project management plan: scope baseline and scope management
matrix plan
- Verified deliverables – Requirements documentation: all the requirements and their
- Work performance data associated acceptance criteria
– Requirements traceability matrix: links requirements to their origin
Tools and - Inspection
and tracks them throughout the project life cycle
– Verified deliverables (output of Control Quality): verified
deliverables are project deliverables that are completed and checked
- Change requests
for correctness through the Control Quality process.
- Work performance information – Work performance data: includes the degree of compliance with
- Project documents updates requirements, number of nonconformities, severity of the
nonconformities, or the number of validation cycles performed in a
period of time
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5.5. Validate Scope
– Inspection
• Includes activities such as measuring, examining, and validating to
matrix determine whether work and deliverables meet requirements and
- Verified deliverables product acceptance criteria
- Work performance data • Sometimes called reviews, product reviews, testing, desk-check,
audits, and walkthroughs
– Desk-check:
» Carefully examine the product
Outputs - Accepted deliverables » Participants use a checklist to review the product one
- Change requests portion at a time
- Work performance information » Issues and defects are recorded, and a product
- Project documents updates disposition is determined
– Walkthrough:
» The producer describes product and asks for comments
from the participants
» Comments generally serve to inform participants about
product rather than correct it
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5.5. Validate Scope

• Outputs
- Requirements traceability – Accepted deliverables:
matrix • Deliverables that meet the acceptance criteria are formally signed off and
- Verified deliverables approved by the customer or sponsor
- Work performance data • Formal documentation received from the customer or sponsor
acknowledging formal stakeholder acceptance of the project’s
deliverables is forwarded to the Close Project or Phase
techniques - Group decision-making • Deliverables that are not accepted must be documented with the reasons.
It is a useful component of the lessons learned and audit trail of the
project
- Change requests – Change requests: the completed deliverables that have not been
- Work performance information formally accepted are documented, along with the reasons for non-
- Project documents updates acceptance of those deliverables. Those deliverables may require a
change request for defect repair
– Work performance information: includes information about project
progress
– Project documents updates: may be updated any documents that
define the product or report status on product completion
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5.5. Validate Scope

• Difference between Validate Scope and Close Project or Phase:
– Validate Scope can be done at the end of each project phase in the
matrix
project life cycle (to get formal acceptance of the phase deliverables
- Verified deliverables along the way) and at other points throughout the project as part of
- Work performance data monitoring and controlling (to get formal acceptance of any
deliverables that require approval in the middle of the phase or
Tools and - Inspection project). Therefore, you validate scope with the customer multiple
techniques - Group decision-making times in one project.
– Validate Scope results in formal acceptance by the customer of
Outputs - Accepted deliverables interim deliverables while Close Project or Phase results in final
- Change requests acceptance, sign-off, or termination from the customer for the project
or phase as a whole.
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5.6. Control Scope

– The process of monitoring the status of the project and product scope
and managing changes to the scope baseline
matrix
– Ensures all requested changes and recommended corrective or
- Work performance data preventive actions are processed through the Perform Integrated
- Organizational process assets Change Control process
– Is used to manage the actual changes when they occur and is
Tools and - Variance analysis integrated with the other control processes
techniques
– Change is inevitable; therefore some type of change control process
Outputs - Work performance information
is mandatory for every project
- Change requests
updates
updates
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5.6. Control Scope

• Inputs
- Requirements traceability – Project management plan: scope baseline; management plan of
matrix scope, change, configuration, and requirements
- Work performance data – Requirement documentation: should be unambiguous (measurable
- Organizational process assets and testable), traceable, complete, consistent, and acceptable to key
stakeholders
Tools and - Variance analysis
– Requirements traceability matrix
techniques
– Work performance data: includes the number of change requests
- Change requests
received, the number of requests accepted or the number of
deliverables completed, etc.
updates – Organizational process assets: guidelines, procedures and policies
- Project documents updates related to controlling scope and methods of monitoring and reporting
updates
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5.6. Control Scope

– Variance analysis
• Determines the cause and degree of difference between the baseline and
matrix
actual performance and decides whether corrective or preventive action
- Work performance data is required
• Project performance measurements are used to assess the magnitude of
variation from original scope baseline. Performance measurements are
Tools and - Variance analysis typically part of progress report
techniques
• Outputs
- Change requests
– Work performance information: includes
• Correlated and contextualized information on how the project scope is
updates
performing compared to the scope baseline
• The categories of the changes received, the identified scope variances
and their causes, how they impact schedule or cost and the forecast of
updates the future scope performance
– Change requests: analysis of scope performance can result in a
change request to the scope baseline or other components of the
project management plan
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5.6. Control Scope

• Scope Creep:
- Requirements traceability – Refers to the change in a project’s scope after the project work has
matrix started. Typically, the scope expands by adding new features to an
- Work performance data approved feature list. As a result, the project drifts away from its
- Organizational process assets original purpose, timeline, and budget
– This change in scope often comes from small, seemingly insignificant
Tools and - Variance analysis change requests that the project team accepts to keep the project
techniques sponsor happy
– Causes of scope creep
- Change requests
• Poor control of the project by the project manager
updates • Poor communications management by the project manager
- Project documents updates • Undetailed project scope statement
• Too many project stakeholders who have different priorities and
updates
objectives
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PROJECT TIME MANAGEMENT

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Introduction
Project Time Management includes the processes required to manage timely completion of the project
Monitoring &
Controlling
Plan Schedule
Control Schedule
Management
Define Activities
Sequence
Time Activities
Management Estimate Activity
Processes Resources
Estimate Activity
Durations
Develop
Schedule
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Inputs - Project management plan • The process of establishing the policies, procedures, and documentation for
- Project charter planning, developing, managing, executing, and controlling the project
- Enterprise environmental schedule
factors
• Inputs
• Organizational culture and structure
• Work authorization systems
- Meetings
• Project management software provides scheduling tools
• Resource availability and skills
Outputs - Schedule management plan
• Historical information, templates
• Change control and risk control procedures
• Existing formal and informal schedule control related policies,
procedures, and guidelines
• Monitoring and reporting tools
– Analytical techniques: may involve choosing strategic options to estimate and
schedule the project such as: scheduling methodology, scheduling tools and
techniques, estimating approaches, formats, and project management software
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• Outputs:
- Project charter
- Enterprise environmental • Schedule management plan
factors – Establishes the criteria and the activities for developing, monitoring,
- Organizational process assets and controlling the schedule.
– May be formal or informal, highly detailed or broadly framed, based
upon the needs of the project, and includes appropriate control
- Meetings
thresholds
– Can establish the following:
Outputs - Schedule management plan • Project schedule model development
• Level of accuracy
• Units of measure
• Organizational procedures links
• Project schedule model maintenance
• Control thresholds
• Rules of performance measurement
• Reporting formats
• Process descriptions
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Inputs - Schedule management plan

• The process of identifying and documenting the specific actions to be
- Scope baseline
performed to produce the project deliverables
factors
- •
Organizational process assets The key benefit of this process is to break down work packages into smaller
components called activities that provide a basic for estimating, scheduling,
Tools and - Decomposition executing, monitoring, controlling the project work
techniques - Rolling wave planning
- Expert judgment • Inputs
Outputs - Activity list
• Organizational cultures and structure
- Activity attributes
- Milestone list
• Published commercial information
• PMIS
• Templates
• Policies, procedures, and guidelines
• Lessons learned knowledge base
• Standardized processes
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– Decomposition
• The lowest level of WBS is work package. The work packages are decomposed
into smaller, more manageable components called activities
- Scope baseline • The activity list, WBS and WBS dictionary can be developed either sequentially
or concurrently, with the WBS and WBS dictionary as the basis for development
factors
of the final activity list.
- Organizational process assets • Involving team members in the decomposition can lead to better and more
accurate results.
– Rolling wave planning
techniques - Rolling wave planning • Is an iterative planning technique in which the work to be accomplished in the
- Expert judgment “near term” is planned in detail, while the work in the future is planned at a
higher level (“planning packages”) with much less detail. These planning
packages may contain cost and resource information, which becomes fixed in
Outputs - Activity list
the baseline duration and cost. When detailed planning takes place, it replaces
the planning packages with additional details.
- Milestone list
• It is a form of progressive elaboration.
• During early strategic planning, when information is less defined, work packages
may be decomposed to the known level of detail. As more is known about the
upcoming events in the near term, work packages can be decomposed into
activities
• An important principle for rolling wave planning is to perform the detailed
planning at regular intervals. The detailed planning for the next interval needs to
be completed well in advance of the start of the next wave’s execution
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• Outputs
- Scope baseline
- Enterprise environmental – Activity list: a comprehensive list of all schedule activities required
factors on the project that includes the activity identifier and scope of work
- Organizational process assets description for each activity in sufficient detail to ensure that project
team members understand what work is required to be completed
Tools and - Decomposition – Activity attributes
techniques - Rolling wave planning • During the initial stages of the project: the activity identifier (ID), WBS ID,
- Expert judgment and activity label or name
• When completed: activity codes, activity description, predecessor and
Outputs - Activity list successor activities, logical relationship, leads and lags, resource
- Activity attributes requirements, imposed dates, constraints, and assumptions
- Milestone list • Can be used to identify the person responsible for executing the work,
geographic area, or place where the work has to be performed and
activity type (level of effort – LOE, discrete effort, and apportioned effort)
– Milestone list
• The milestone list defines all the important point or event in a project
according to contract or based upon historical information
• Milestones are similar to activities but have zero duration
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6.3. Sequence Activities

• The process of identifying and documenting relationships among the project
- Activity list
activities
- Milestone list
• The key benefit of this process is that it defines the logical sequence of
- Project scope statement work to obtain the greatest efficiency given all project constraints
- Enterprise environmental • Every activity and milestone except the first and last should be connected
factors to at least one predecessor and at least one successor
• Inputs
Tools and - Precedence diagramming
– Project scope statement: product scope description (to ensure
techniques method (PDM)
- Dependency determination
accuracy), project deliverables, project constraints, and project
- Leads and lags
assumptions may affect activity sequencing
– Enterprise environmental factors:
Outputs - Project schedule network • Industry standards
diagrams • Scheduling tool, PMIS
– Organizational process assets:
• Templates, policies, procedures, and guidelines
• Historical information from previous projects
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- Activity list
- Activity attributes – Precedence diagramming method (PDM): 4 types of dependencies:
- Milestone list • Finish-to-start (FS): a successor activity cannot start until a predecessor
- Project scope statement activity has finished. This is the most commonly used relationship
- Enterprise environmental • Finish-to-finish (FF): a successor activity cannot finish until a
factors predecessor activity has finished
- Organizational process assets • Start-to-start (SS): a successor activity cannot start until a predecessor
activity has started
Tools and - Precedence diagramming • Start-to-finish (SF): a successor activity cannot finish until a
techniques method (PDM) predecessor activity has started. This is rarely used
- Leads and lags
Outputs - Project schedule network

diagrams
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119
Practice
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- Activity list
- Activity attributes – Dependency determination: 4 types of dependencies:
- Milestone list • Mandatory dependencies (hard logic or hard dependencies): are
- Project scope statement legally or contractually required or inherent in the nature of the work. For
- Enterprise environmental example: have to setup computer before installing software
factors • Discretionary dependencies (preferred logic, preferential logic, or
- Organizational process assets soft logic): best practices
• External dependencies: involve a relationship between project activities
Tools and - Precedence diagramming and non-project activities. These dependencies are usually outside the
project team’s control. For example, governmental environmental
hearings may need to be held before site preparation can begin on a
construction project
- Leads and lags
• Internal dependencies: involve a precedence relationship between
project activities and are generally inside the project team’s control. For
example, the team cannot test a machine until they assemble it; this is an
diagrams
internal mandatory dependency.
– Leads and lags
• Lead: a lead may be used to indicate that an activity can start before its
predecessor activity is completed
• Lag: a lag is inserted waiting time between activities
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• Outputs
- Activity list
- Activity attributes – Project Schedule Network Diagrams: is a schematic display of the
- Milestone list project schedule activities and the logical relationships among them
factors
Tools and - Precedence diagramming

- Leads and lags

diagrams
– Project documents updates: activity list, activity attributes,
milestone list, and risk register
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6.4. Estimate Activity Resources

• The process of estimating the type and quantities of material, human
- Activity list
resources, equipment, services, or supplies required to perform each
activity
- Resource calendars
- Risk register
- Activity cost estimates
• Inputs
– Resource calendars
factors
• When and how long identified project resources will be available during the project
• Resource experience, skill level, and geographical location
– Enterprise environmental factors: resource location, availability, and skills
techniques - Alternatives analysis
• Policies and procedures regarding staffing
- Published estimating data
• Policies and procedures relating to rental or purchase of supplies and equipment
- Bottom-up estimating
• Historical information regarding types of resources used for similar work on previous
- Project management software projects
Outputs - Activity resource requirements

- Resource breakdown structure
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- Activity list
- Activity attributes – Alternatives analysis: considering various levels of resource
- Resource calendars capability or skills, different size or type of machines, different tools
- Risk register (hand versus automated), and make-rent-or-buy decisions regarding
- Activity cost estimates the resources
- Enterprise environmental – Published estimating data: production rates, unit costs of resources
factors
– Bottom-up estimating: decompose activities into details that the
resources needs are estimated. These estimates are then aggregated
into a total quantity for each of the activity’s resources
techniques - Alternatives analysis – Project management software: scheduling software tool can be
- Published estimating data used to plan, organize, and manage resource pools and develop
- Bottom-up estimating resource estimates

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• Outputs
- Activity list
- Activity attributes – Activity resource requirements: identifies the types and quantities
- Resource calendars of resources required for each activity in a work package, including:
- Risk register basis of estimate for each resource, assumptions, resources’
- Activity cost estimates availability, and quantities
- Enterprise environmental – Resource breakdown structure: is a hierarchical structure of
factors
resources by category and type
• Resource categories: labor, material, equipment, and supplies
• Resource types: the skill level, grade level, etc.
techniques - Alternatives analysis
– Project documents updates: activity list, activity attributes, and
- Published estimating data resource calendars

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• The process of approximating the number of work periods needed to
- Activity list
complete individual activities with estimated resources
- Activity resource requirements
- Resource calendars • Durations: the total number of work periods (excluding holidays or other
- Project scope statement nonworking periods) required to complete a schedule activity or WBS
- Risk register component. Usually expressed as workdays or workweeks.
- Enterprise environmental • Inputs
factors
– Activity resource requirements. E.g., lower-skilled resources may complete
- Organizational process assets an activity longer than higher-skilled resources
– Resource calendars: human resources availability, capabilities, skills, and non-
Tools and - Expert judgment working days
techniques - Analogous estimating
– Project scope statement
- Parametric estimating
• Constraints: contract terms and requirements, skilled resources availability
- Three-point estimates • Assumptions: existing conditions, availability of information, and length of project
- Group decision-making reporting periods
techniques – Risk register: provides the list of risks, along with the results of risk analysis
- Reserve analysis and risk response planning
Outputs - Activity duration estimates

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- Activity list
– Analogous estimating (top-down)
- Activity resource requirements • Analogous estimating uses expert judgment and historical information to
predict the future. This can be done for a project or an activity. For
example: the last 7 projects similar to this one each took 12 months, so
this one should also
- Risk register
• Generally less costly and time consuming than other techniques, but it is
also generally less accurate
factors • Management or the sponsor might use analogous estimating to create
the overall project estimate given to the project manager as the project is
chartered.
Tools and - Expert judgment – Parametric estimating (higher levels of accuracy): uses a statistical
relationship between historical data and other variables (e.g., time per line of
code) to calculate an estimate for activity parameters, such as cost, budget,
and duration. For example: if the assigned resource is capable of installing 10
- Three-point estimates
meters of cable per hour, the duration required to install 200 meters would be
- Group decision-making
20 hours (200 meters divided by 10 meters per hour).
techniques
- Reserve analysis

Inputs - Schedule management plan • Tools and techniques

- Activity list • Three-point estimate (PERT analysis – Program Evaluation and Review
- Activity attributes Technique):
- Activity resource requirements – Considering estimation uncertainly and risk to duration estimate to improve
accuracy
– PERT uses 3 estimates: Optimistic (O), Most likely (M), and Pessimistic (P) for
each activity
- Risk register
• Expected Activity Duration (E):
– Triangular Distribution (Simple Average): E = (O + M + P)/3
– Beta Distribution (Weighted Average - traditional PERT
factors
technique): E = (O + 4M + P)/6
• Beta Activity Standard Deviation (SD) = (P - O)/6
• Range for an individual estimate using weighted (beta) averaging: from
Tools and - Expert judgment (E – SD) to (E + SD)
techniques - Analogous estimating • Activity Variance = [(P - O)/6]^2
• Expected Project Duration = sum of (E) for all activities on the critical path
• Project Standard Deviation = square root of (sum of variances of critical
- Group decision-making path activities)
techniques – Useful when project teams facing a new type of activity
- Reserve analysis – The greater the range created by the standard deviation calculation, the greater
the risk
Practice
Activity
Expected Activity Activity
Activity P M O Standard Range of the Estimate
Duration (or PERT) Variance
Deviation
A 47 27 14
B 89 60 41
C 48 44 39
D 42 37 29
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Practice
Activity
Expected Activity Activity
Activity P M O Standard Range of the Estimate
Duration (or PERT) Variance
Deviation
22.667 to 33.667, or
A 47 27 14 28.167 5.500 30.250
28.167 +/- 5.500
53.667 to 69.667, or
B 89 60 41 61.667 8.000 64.000
61.667 +/- 8.000
42.333 to 45.333, or
C 48 44 39 43.833 1.500 2.250
43.833 +/- 1.500
34.333 to 38.667, or
D 42 37 29 36.500 2.167 4.696
36.500 +/- 2.167
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- Activity list
– Group decision-making techniques: brainstorming, Delphi, nominal group, etc.
When relevant people are involved in the estimation process, additional information is
- Activity resource requirements gained, more accurate estimates obtained, and their commitment towards meeting the
- Resource calendars resulting estimates increases
- Project scope statement – Reserve analysis:
- Risk register • Contingency reserve is allocated for identified risks that are accepted and for which
- Resource breakdown structure contingent or mitigation responses are developed. Contingency reserves are
associated with the “known-unknowns”. As more precise information about the project
becomes available, the contingency reserve may be used, reduced, or estimated.
factors
• Management reserves are a specified amount of the project duration withheld for
- Organizational process assets management control purposes and are reserved for unforeseen work that is within
scope of the project. Management reserves are intended to address the “unknown-
unknowns” that can affect a project. It is excluded in the schedule baseline
techniques - Analogous estimating • Outputs
- Parametric estimating – Activity duration estimates
- Three-point estimates • The estimates of how long each activity in the activity list will take
- Group decision-making • The estimate can be in hours, days, weeks, etc. and may include some range. E.g., 2
techniques months +/- 5 days
- Reserve analysis – Project documents updates
• Activity attributes updates
• Assumptions


- Activity list • The process of analyzing activity sequences, durations, resource
requirements, and schedule constraints to create the project schedule
- Project schedule network
diagrams model. This is often an iterative process
- Activity duration estimates
• Inputs
- Risk register – Activity resource requirements: types and quantities of resources required
- Project staff assignments for each activity
- Enterprise environmental – Resource calendars: availability of resources during the project
factors – Project scope statement: assumptions and constraints
- Schedule network analysis – Enterprise environmental factors: standards, communication channels, and
Tools and
- Critical path method scheduling tools
techniques
- Critical chain method – Organizational process assets: scheduling methodology and project
- Resource optimization
techniques
calendars
- Modeling technique
- Leads and lags
- Schedule compression
- Scheduling tool
Outputs - Schedule baseline
- Project schedule
- Schedule data
- Project calendars
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132
updates

- Activity list • Tools and techniques
- Project schedule network – Schedule network analysis: is a technique that generates the
diagrams project schedule model, using various analytical technique, such as
Critical path method, Critical chain method, Resource optimization
- Activity duration estimates technique, and What-if analysis to calculate the early and late start
- Project scope statement and finish dates
- Risk register
- Project staff assignments – Critical path method (CPM)
• Used to estimate the minimum project duration and determine the
factors
amount of scheduling flexibility on the logical network paths within the
- Organizational process assets schedule model
Tools and - Schedule network analysis • This schedule network analysis technique calculates the early start (ES),
- Critical path method
techniques
- Critical chain method
early finish (EF), late start (LS), and late finish (LF) dates for all activities
- Resource optimization without regard for any resource limitations by performing a forward pass
techniques (calculates ES & EF) and backward pass (calculates LS & LF) analysis
- Modeling technique through the schedule network
- Leads and lags
• Critical path: is the longest duration path through a network diagram and
- Scheduling tool determines the shortest time it could take to complete the project
- Project schedule
- Schedule data
- Project calendars
133
updates

- Activity attributes – Critical path method (CPM)
diagrams
• Delay in completion of any activity on critical path will delay the
- Activity resource requirements completion of project, unless corrective action is taken
- Resource calendars • A CPM critical path is normally characterized by zero total float
- Activity duration estimates on the critical path. As implemented with PDM sequencing,
- Project scope statement critical paths may have positive, zero, or negative total float
- Risk register depending on constraints applied. Any activity on the critical path
- Project staff assignments
is called critical path activity
- Enterprise environmental • Near-critical path: is close in duration to the critical path
factors • Float (slack): Float = LF – EF = LS – ES
- Schedule network analysis – Total float (slack): the amount of time that an activity can
Tools and
- Critical path method be delayed or extended from its early start date without
techniques
- Critical chain method delaying the project finish date or violating a schedule
- Resource optimization constraint
techniques – Free float (slack): the amount of time that an activity can
- Leads and lags
be delayed without delaying the early start date of any
successor or violating a schedule constraint
- Scheduling tool – Project float (slack): the amount of time a project can be
Outputs - Schedule baseline delayed without delaying the externally imposed project
- Project schedule completion date required by customer, management
- Schedule data
- Project calendars
134
updates

– Critical path method (CPM)
diagrams • Forward pass calculations
EF = ES + duration – 1
- Activity duration estimates ES = the largest value of [predecessors’ EF + lag of the corresponding
- Project scope statement predecessors (if any)] + 1
- Risk register
- Resource breakdown structure • Backward pass calculations
LF = the lowest value of [successors’ LS – Lag of the corresponding
factors
- Organizational process assets successors (if any)] – 1
Tools and - Schedule network analysis LS = LF – duration + 1
techniques
techniques
- Leads and lags
- Scheduling tool
- Project schedule
- Schedule data
- Project calendars
135
updates
Practice
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Practice
©Atoha JSC 137


- Project schedule network – Critical chain method (CCM): is schedule network analysis method that
diagrams allows the project team to place duration buffers on any project schedule path
- Activity resource requirements to account for limited resources and project uncertainties
• Applies after the critical path has been identified
- Project scope statement • Adds duration buffer at the end of the critical chain, known as Project
- Risk register buffer
- Resource breakdown structure • Adds duration buffers at each point NOT on the critical chain that feeds
- Enterprise environmental into the critical chain, known as Feeding buffer
factors
Tools and - Schedule network analysis
techniques
techniques
- Leads and lags
- Scheduling tool
- Project schedule
- Schedule data
- Project calendars
138
updates

- Project schedule network – Resource optimization techniques
diagrams • Resource leveling: is used to produce a resource-limited
- Resource calendars schedule. It evaluates all of the resources to see if the critical
- Activity duration estimates path needs to change to accommodate resource assignments
- Risk register
due to balancing demand for resources with the available supply.
- Project staff assignments Leveling lengthens the schedule and increase cost.
• Resource smoothing: is a modified form of resource leveling,
factors where resources are leveled only within the limits of the float of
- Organizational process assets their activities, so the completion dates of activities are not
- Critical path method delayed.
techniques
techniques
- Leads and lags
- Scheduling tool
- Project schedule
- Schedule data
- Project calendars
139
updates

- Project schedule network – Modeling techniques
diagrams • What-if scenarios analysis: is the process of evaluating
- Resource calendars scenarios in order to predict their effect, positively or negatively,
- Activity duration estimates on project objectives. The outcome of the what-if scenario
- Risk register
analysis can be used to assess the feasibility of the project
- Project staff assignments schedule under adverse conditions, and in preparing
- Resource breakdown structure contingency and response plans to overcome or mitigate the
factors impact of unexpected situations
- Organizational process assets • Simulation:
techniques
- Critical path method – Involves calculating multiple project durations with
different sets of activity assumptions to account for
techniques uncertainly
- Leads and lags
– The most common simulation technique is “Monte Carlo
- Schedule compression Analysis” that use a computer to simulate the outcome if a
- Scheduling tool project making use of three-point estimates for each
- Schedule baseline
Outputs
- Project schedule activity or network diagram
- Schedule data
- Project calendars
140
updates

- Project schedule network – Schedule compression: a technique that shortens the project
diagrams schedule duration without reducing the project scope, in order to meet
schedule constraints, imposed dates or other schedule objectives
- Activity duration estimates • Fast tracking: do only activities on critical path in parallel and
- Risk register
only works if activities can be overlapped to shorten duration. It
- Project staff assignments may result in rework and increased risks
• Crashing: cost and schedule trade-off are analyzed to
factors determine how to obtain the greatest amount of compression for
- Organizational process assets the least incremental cost such as approving overtime, bringing
- Critical path method in additional resources, or paying to expedite delivery to
techniques
- Critical chain method activities on the critical path. And only works for any activities on
techniques
the critical path where additional resources will shorten the
- Modeling technique duration à increase cost
- Leads and lags
– Scheduling tools: software-based scheduling tools can help
- Scheduling tool generate start and finish dates based on activity inputs, network
diagrams, resources, and activity duration
- Project schedule
- Schedule data
- Project calendars
141
updates
• Outputs
- Schedule management plan
– Schedule baseline: is the approved version of a schedule model that defines the baseline start
Inputs
- Activity list and finish dates for the project and is used to analyze variances between actual and planned
- Activity attributes schedule performance
- Project schedule network – Project schedule: is an output of a schedule model the presents linked activities with planned
diagrams dates, durations, milestones, and resources. It is more often presented in graphically formats as
- Activity resource requirements below:
• Milestone charts: identify the start or completion of key deliverables and external interfaces
- Risk register
factors
techniques
- Resource optimization • Bar charts (known as Gantt chart): used in management presentations
techniques
- Leads and lags
- Scheduling tool
- Project schedule
- Schedule data
- Project calendars
142
updates

- Activity list • Outputs
– Project schedule:
diagrams • Milestone charts
- Activity resource requirements • Bar charts (known as Gantt chart)
- Resource calendars • Project schedule network diagrams: can be presented in 3 formats:
– Activity-on-node diagram: show activities and relationships without a time
scale, referred to as a pure logic diagram
- Risk register
- Project staff assignments – Time-scaled schedule network diagram: logic bar chart as figure below
factors
techniques
techniques
- Leads and lags
- Scheduling tool
- Schedule baseline – Time-scaled logic diagram
Outputs
- Project schedule
- Schedule data Data date (as-of date or status date): a point in time when the status of the project is recorded
- Project calendars
143
updates

- Activity list • Outputs
– Schedule data: is the collection of information for describing and controlling the
diagrams schedule, includes:
- Activity resource requirements • Milestones, activities, activity attributes, assumption and constraints
• Resource requirements by time period
- Project scope statement • Alternative schedules (best-case or worst-case scenarios)
- Risk register
• Scheduling of contingency reserves
- Resource breakdown structure – Project management plan updates: schedule management plan and schedule
- Enterprise environmental baseline
factors
- Organizational process assets – Project documents updates
Tools and - Schedule network analysis • Activity resource requirements
techniques
• Activity attributes
- Resource optimization • Calendars: project calendars, individual resource calendars, etc.
techniques
• Risk register updates
- Leads and lags •
- Scheduling tool
- Project schedule
- Schedule data
- Project calendars
144
updates

- Project schedule
• The process of monitoring the status of the project activities to update
project progress and manage changes to the schedule baseline to achieve
- Project calendars
the plan
- Schedule data
Tools and - Performance reviews • Inputs
techniques - Project management software – Work performance data: refers to information about project progress such as
- Resource optimization which activities have started, finished, and their progress (actual duration,
techniques remaining duration, and physical percent complete)
- Modeling techniques – Organizational process assets: policies, procedures, guideline, schedule
- Leads and lags control tools, etc.
- Scheduling tool
- Change requests
updates
updates
©Atoha JSC 145

- Project schedule
– Performance reviews: measure, compare and analyze schedule performance
- Project calendars
data such as actual start and finish dates, percent complete, and remaining
duration. Some techniques include:
- Schedule data
• Trend analysis: examines project performance over time to determine
Tools and - Performance reviews
whether performance is improving or deteriorating, compares the current
performance to future performance goals
techniques - Project management software
• Critical path method: variances on the critical path will have a direct
techniques
impact on the project end date
- Modeling techniques • Critical chain method: comparing the amount of buffer remaining to the
- Leads and lags
amount of buffer needed to protect the delivery date can help determine
schedule status
- Scheduling tool • Earned value management: assess the magnitude of variation ( SV,
SPI) to the schedule baseline
- Change requests
updates
updates
©Atoha JSC 146

- Project schedule
• Outputs
– Work performance information: calculated SV and SPI
- Project calendars – Schedule forecasts: based on the project’s past performance to expect and
- Schedule data predict the future performance
- Organizational process assets – Change requests: schedule variance analysis, along with review of progress
Tools and - Performance reviews reports, results of performance measures, and modifications to the project
techniques - Project management software schedule can result in change requests to the schedule baseline and/or other
components of the project management plan
techniques – Project management plan updates: schedule management plan, schedule
- Modeling techniques baseline, and cost baseline
- Leads and lags – Project documents updates: schedule data, project schedule, and risk
- Schedule compression register
- Scheduling tool – Organizational process assets updates
Outputs - Work performance information • Causes of variances, corrective actions chosen and the reasons
- Schedule forecasts • Lessons learned
- Change requests
updates
updates
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END.
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PROJECT COST MANAGEMENT

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Introduction
Project Cost Management includes the processes of planning, estimating, budgeting, financing, funding,
managing, and controlling costs so that the project can be completed within the approved budget
Monitoring &
Controlling
Plan Cost
Control Costs
Cost Management
Management Estimate Costs
Processes
Determine
Budget
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Inputs - Project management plan • The process that establishes the policies, procedures, and documentation
- Project charter for planning, managing, expending and controlling project cost
factors
- •
– Project management plan
• Scope baseline / Schedule baseline
• Other information: cost-related scheduling, risk, and communications decisions
- Meetings
• Market conditions
Outputs - Cost management plan • Currency exchange rates
• Published commercial information such as cost rate and seller price list
• PMIS
• Policies, procedures, templates
• Historical information and lessons learned knowledge bases

– Analytical techniques: Payback period, ROI, IRR, NPV
©Atoha JSC 151

Inputs - Project management plan • Outputs: Cost management plan describes how the project cost will be planned,
- Project charter structured, and controlled
- Enterprise environmental – Units of measure: each unit used in measurements is defined for each of the
factors resources, such as staff days, meters, liters, tons, etc.
- Organizational process assets – Level of precision: activity cost estimates will be rounded up or down based
on the scope of the activities and how big of the project
Tools and - Expert judgment – Level of accuracy: is the acceptance range (e.g. +/- 5%) used in determining
realistic activity cost estimates
- Meetings
– Organizational procedures links: the WBS component used for the project
cost accounting is called the control account. Each control account is assigned
a unique code which links directly to the accounting system
Outputs - Cost management plan – Control thresholds: an agreed-upon amount of variation to be allowed before
some action needs to be taken. Typically expressed as percentage deviations
from the baseline plan
– Rules of performance measurement: EVM rules of performance
measurement are set
– Reporting formats
– Process descriptions: descriptions of each of the other cost management
processes are documented.
– Additional details: description of strategic funding choices, procedure to
account for fluctuations in currency exchange rates, and procedure for project
cost recording.
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• Life cycle cost: the cost of the whole life of the product, not just the
- Project charter
project. Life cycle cost included project cost and operations and
maintenance costs. Generally, the lower life cycle cost should be selected
factors
Tools and - Expert judgment • Value Analysis (value engineering): find the less costly way to do the
techniques - Analytical techniques same work
- Meetings
Outputs - Cost management plan
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7.2. Estimate Costs
Inputs - Cost management plan

• The process of developing an approximation of the monetary resources
- HR management plan
needed to complete project activities.
- Scope baseline
- Project schedule
- Risk register • Cost estimates include the identification and consideration of costing
- Enterprise environmental alternatives to initiate and complete the project. Cost trade-offs and risks
factors should be considered to achieve optimal costs for the project.
• Cost estimates are generally expressed in units of some currency (i.e.,
- Parametric estimating dollars, euros, etc.),
• Cost estimates should be reviewed and refined during the course of the
- Reserve analysis
project to reflect additional detail as it becomes available and assumptions
- Cost of quality
are tested. The accuracy of a project estimate will increase as the project
progresses through the project life cycle.
- Vendor bid analysis
techniques
Outputs - Activity cost estimates
- Basis of estimates
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154
7.2. Estimate Costs

• Accuracy level of estimate type:
- Scope baseline – ROM – Rough Order of Magnitude estimate (-25% to +75%)
- Project schedule • Initiation phase
- Risk register • Approximation without detailed data
- Enterprise environmental – Budget estimate (-10% to +25%)
factors
• Planning phase
• Initial funding to gain the project approval
techniques - Analogous estimating – Definitive estimate (-5% to +10%)
- Parametric estimating • Planning phase
- Bottom-up estimating • Detailed data
- Three-point estimates • Most expensive to create
- Reserve analysis
– Final estimate (0%)
- Cost of quality
techniques

155
155
7.2. Estimate Costs

• Inputs
– HR management plan: project staffing attributes, personnel rates, and
- Scope baseline
rewards/recognition system
- Project schedule
– Scope baseline: project scope statement, WBS, and WBS dictionary
- Risk register
– Project schedule: information about resource types, quantities, rates, and their
availability
factors
– Risk register: should be reviewed to consider risk response cost
Tools and - Expert judgment – Enterprise environmental factors
techniques - Analogous estimating • Market conditions
- Parametric estimating • Published commercial information such as resource cost rate information
- Bottom-up estimating – Organizational process assets
- Three-point estimates • Cost estimating policies and templates
- Reserve analysis • Historical information
- Cost of quality • Lessons learned
techniques

156
7.2. Estimate Costs

- Scope baseline – Analogous estimating (top-down)
- Project schedule • Uses actual values of scope/ cost/ budget/ duration or measures of scale
- Risk register of size/ weight/ complexity from similar, completed projects as the basic
- Enterprise environmental for estimating the same parameter or measurement for a current project
factors • Be used in the early phases of a project, when there is a limited amount
- Organizational process assets of detailed information
Tools and - Expert judgment • Relies on expert judgment (is a form of expert judgment)
techniques - Analogous estimating • Typically: Less costly / Less time consuming / Less accurate
– Parametric estimating
• Uses a statistical relationship between historical data and other variable
to calculate an estimate for activity parameters, such as cost, budget,
- Reserve analysis
duration
- Cost of quality
• More accurate than analogous estimating
– Bottom-up estimating
- Group decision-making • Detailed estimating is done for each activity (if available) or work package
techniques (if activities are not defined), and then rolled up into control accounts and
into an overall project estimate
- Basis of estimates • This estimating requires an accurate and detailed WBS
157
7.2. Estimate Costs

- Scope baseline
– Three-point estimating
- Project schedule
• Consider estimation uncertainty and risk to
- Risk register
- Enterprise environmental cost estimate to improve accuracy
-
factors
Organizational process assets
• The expected cost (E) can be calculated
Tools and - Expert judgment using formulas:
techniques - Analogous estimating – Triangular Distribution: E = (O + M + P)/3
– Beta Distribution (from a traditional PERT analysis): E =
(O + 4M + P)/6
- Reserve analysis
– Reserve analysis
- Cost of quality • Contingency reserves (contingency allowances) are the budget within the cost
baseline intended to address the “known-unknowns” that can affect a project
• Management reserves are an amount of the project budget (excluded in the
cost baseline) withheld for management control purposes and reserved for
unforeseen work that is within scope of the project. Management reserves are
techniques intended to address the “unknown unknowns” that can affect a project. When
Outputs - Activity cost estimates an amount of management reserves is used, this amount is added to the cost
- Basis of estimates baseline, thus requiring an approved change to the cost baseline.
158
7.2. Estimate Costs

- Scope baseline – Cost of Quality (COQ): the costs incurred to ensure quality.
- Project schedule • Cost of Conformance: money spent during the project to avoid
- Risk register failures
- Enterprise environmental – Prevention costs (build a quality product)
factors
– Appraisal costs (assess the quality)
• Cost of Nonconformance: money spent during and after the project
because of failures
- Parametric estimating – Internal failure costs (failures found by the project)
- Bottom-up estimating – External failure costs (failures found by the customer)
- Reserve analysis
- Cost of quality – Project management estimating software: software applications,
- Project management software spreadsheets, simulation tools, and statistics packages
- Vendor bid analysis – Vendor bid analysis: analysis of what an appropriate cost for the
- Group decision-making project should be, based on bids from qualified vendors
techniques
– Groups decision-making techniques: brainstorming, Delphi, or
nominal group techniques
159
7.2. Estimate Costs

-
-
HR management plan
Scope baseline
• Outputs
- Project schedule – Activity cost estimates: are quantitative assessments of the
- Risk register probable costs required to complete project work
– Basis cost estimates
factors
• Supporting details of the cost estimates just like the WBS has a WBS
dictionary
• May include:
- Parametric estimating – Basis of the estimate
- Bottom-up estimating – Assumptions and constraints
- Three-point estimates – The range of possible estimates
- Reserve analysis – Confidence level of the final estimate
- Cost of quality
– Project documents updates: risk register
techniques

160
7.2. Estimate Costs

• Types of cost:
- Scope baseline • A cost can be either variable or fixed:
- Project schedule • Variable costs: these costs change with the amount of production or the
- Risk register amount of work. E.g., cost of material, supplies, wages, etc.
- Enterprise environmental • Fixed costs: these costs do not change as production changes. E.g.,
factors cost of setup, rent, etc.
•
techniques - Analogous estimating • A cost can be either direct or indirect:
- Parametric estimating • Direct costs: these costs are directly attributable to the work on the
- Bottom-up estimating project. E.g., team travel, team wages, recognition, costs of material used
- Three-point estimates on the project, etc.
- Reserve analysis • Indirect costs: these costs are overhead items or costs incurred for the
- Cost of quality benefit of more than one project. E.g., taxes, fringe-benefits, and janitorial
- Project management software services.
techniques

161

• The process of aggregating the estimated cost of individual activities or
- Scope baseline
work packages to establish an authorized cost baseline, which is the
approved version of the time-phased project budget, but excludes
management reserves
- Project schedule
- Risk register • Inputs
- Agreements – Agreements: applicable agreement information and costs relating to
- Organizational process assets products, services, or result that have been or will be purchased are
Tools and - Cost aggregation included when determining the budget
techniques - Reserve analysis
- Expert judgment
- Historical relationships
• Cost budgeting-related policies, procedures, and guidelines
- Funding limit reconciliation • Cost budgeting tools and reporting methods
Outputs - Cost baseline
- Project funding requirements
©Atoha JSC 162


- Scope baseline
– Cost aggregation: cost estimates are aggregated by work packages in
accordance with the WBS. The work package cost estimates are then
aggregated for the higher component levels of the WBS (such as control
- Project schedule
accounts) and ultimately for the entire project.
– Reserve analysis: contingency reserve and management reserve
- Risk register
– Historical relationships: both the cost and accuracy of analogous and
- Agreements
parametric models can vary widely. They are most likely to be reliable with
accurate historical information, quantifiable parameters, and scalable models
Tools and - Cost aggregation
– Funding limit reconciliation: the expenditure of funds should be reconciled
with any funding limits on the commitment of funds for the project. A variance
- Expert judgment
between the funding limits and the planned expenditures will sometimes
necessitate the rescheduling of work to level out the rate of expenditures. E.g.,
- Funding limit reconciliation if equipment costing $10,000 is scheduled to be purchased on April 4 but the
Outputs - Cost baseline money for the purchase is not available until May 5, the activities dependent on
- Project funding requirements that equipment will have to be moved to later points in the schedule.
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• Outputs
- Scope baseline
- Activity cost estimates – Cost baseline: cost baseline = the summation of the control accounts. The
cost baseline is the approved time-phased project budget, excluding any
- Project schedule
management reserve, which is displayed as an S-curve
- Risk register
- Agreements
Tools and - Cost aggregation
- Expert judgment
- Funding limit reconciliation
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• Outputs
- Scope baseline
- Activity cost estimates – Project funding requirements
- Basis of estimates • Project budget (total funds required ) = cost baseline + management
- Project schedule reserve
- Resource calendars • Total funding requirements and periodic funding requirements (monthly,
- Risk register quarterly, annual) are derived from the cost baseline
- Agreements • The cost baseline will include projected expenditures plus anticipated
- Organizational process assets liabilities. Funding often occurs in incremental amounts that are not
Tools and - Cost aggregation continuous, and may not be evenly distributed, which appear as steps
- Expert judgment
- Funding limit reconciliation
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7.4. Control Costs
Inputs - Project management plan • The process of monitoring the status of the project to update the project
- Project funding requirements cost and managing changes to the cost baseline.
• Inputs
Tools and - Earned value management
– Project management plan: cost baseline and cost management
techniques - Forecasting
plan
- To-complete performance – Project funding requirements: includes project expenditures
index (TCPI) plus anticipated liabilities
- Performance reviews – Work performance data
• Project progress information, such as start date, finish date,
- Reserve analysis
actual duration, remaining duration, etc.
• Cost that have been authorized and incurred, it tells how you
are spending your budget
- Cost forecasts – Organizational process assets
- Change requests • Existing cost control-related policies, procedures, and
- Project management plan guidelines
updates
• Tools for controlling costs
• Methods used for monitoring and reporting
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Abbrevi
Name Lexicon Definition How Used Equation Interpretation of Result
ation
The value of the work planned
The authorized budget
to be completed to a point in PV = BAC * Planned
PV Planned Value assigned to scheduled
time, usually the data date, or % complete
work
project completion.
The planned value of all the EV = sum of the
The measure of work
work completed (earned) to a planned value of
performed expressed in
EV Earned Value point in time, usually the data completed work:
terms of the budget
date, without reference to EV = BAC * Actual %
authorized for that work
actual costs. complete
The realized cost incurred
The actual cost of all the work
for the work performed on
AC Actual Cost completed to a point in time,
an activity during a
usually the data date.
specific time period
The sum of all budgets
Budget at The value of total planned
BAC established for the work
Completion work, the project cost baseline.
to be performed
The amount of budget Positive = Under planned
The difference between the
deficit or surplus at a cost
value of work completed to a
given point in time, Neutral = On planned
CV Cost Variance point in time, usually the data CV = EV – AC
expressed as the cost
date, and the actual costs to
difference between EV Negative = Over planned
the same point in time.
and AC cost
The amount by which the
project is ahead or behind The difference between the
Positive = Ahead of
the planned delivery date, work completed to a point in
schedule
Schedule at a given point in time, time, usually the data date, and
SV SV = EV – PV Neutral = On schedule
Variance expressed as the the work planned to be
Negative = Behind
difference between the completed to the same point in
schedule
©Atoha JSC earned value and the time.
167
planned value
Abbrevi
ation
A projection of the
Positive = Under planned
amount of budget deficit
cost
or surplus, expressed as The estimated difference in
Variance at Neutral = On planned
VAC the difference between cost at the completion of the VAC = BAC – EAC
Completion cost
the budget at completion project.
Negative = Over planned
(BAC) and the estimate at
cost
completion (EAC)
A CPI of 1.0 means the project
is exactly on budget that the Greater than 1.0 = Under
A measure of the cost
work actually done so far is planned cost
Cost efficiency of budgeted
exactly the same as the cost so Exactly 1.0 = On planned
CPI Performance resources expressed as CPI = EV/AC
far. Other values show the cost
Index the ratio of earned value
percentage of how much costs Less than 1.0 = Over
to actual cost
are over or under the budgeted planned cost
amount for work accomplished.
An SPI of 1.0 means that the
project is exactly on schedule,
Greater than 1.0 =
that the work actually done so
A measure of schedule Ahead of schedule
Schedule far is exactly the same as the
efficiency expressed as the Exactly 1.0 = On
SPI Performance work planned to be done so far. SPI = EV/PV
ratio of earned value to schedule
Index Other values show the
planned value Less than 1.0 = Behind
percentage of how much costs
schedule
are over or under the budgeted
amount for work planned.
©Atoha JSC 168

Abbrevi
ation
If the CPI is expected to be the
same for the remainder of the
project, EAC can be calculated
(1) EAC = BAC/CPI
using (1):
The expected total cost of (2) EAC = AC + BAC –
If future work will be
completing all work EV
Estimate At accomplished at the planned
EAC expressed as the sum of (3) EAC = AC +
Completion rate, use (2):
the actual cost to date and Bottom-up ETC
If the initial plan is no longer
the estimate to complete (4) EAC = AC + [(BAC
valid, use (3):
– EV)/ (CPI x SPI)]
If both the CPI and SPI
influence the remaining work,
use (4):
Assuming work is proceeding
on plan, the cost of completing
The expected cost to finish
Estimate to the remaining authorized work (5) ETC = EAC – AC
ETC all the remaining project
Complete can be calculated using (5): (6) ETC = Reestimate
work
Reestimate the remaining work
from the bottom up (6).
A measure of the cost
performance that must be
achieved with the
The efficiency that must be Greater than 1.0 =
remaining resources in (7) TCPI = (BAC –
To Complete maintained in order to Harder to complete
order to meet a specified EV)/(BAC – AC)
TCPI Performance complete on plan (7). Exactly 1.0 = Same to
management goal,
Index The efficiency that must be complete
expressed as the ratio of (8) TCPI = (BAC –
maintained in order to Less than 1.0 = Easier to
the cost to finish the EV)/(EAC – AC)
complete the current EAC (8). complete
outstanding work to the
budget available
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7.4. Control Costs

• Outputs
- Work performance data – Work performance information: CV, SV, CPI, SPI, TCPI, and VAC
- Organizational process assets values for WBS components, in particular the work packages and
control accounts, are documented and communicated to stakeholders
Tools and - Earned value management – Cost forecasts: EAC value is documented and communicated to
techniques - Forecasting stakeholders
- To-complete performance
– Change requests: analysis of project performance may result in a
index (TCPI)
change request to the project management plan, may include
- Performance reviews
corrective or preventive actions
- Reserve analysis – Project management plan updates: cost baseline and cost
management plan
– Project documents updates: cost estimates and basic of estimates
– Organizational process assets updates: causes of variances,
- Cost forecasts
corrective action and the reasons, lessons learned
- Change requests
updates
PROJECT QUALITY MANAGEMENT

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Introduction
Project Quality Management:

• includes the processes and activities of the performing organization that determine quality
policies, objectives, and responsibilities so that the project will satisfy the needs for which it was
undertaken
• uses policies and procedures to implement, within the project’s context, the organization’s
quality management system and, as appropriate, it supports continuous process improvement
activities as undertaken on behalf of the performing organization
• works to ensure that the project requirements, including product requirements, are met and
validated
Monitoring &
Controlling
Quality
Plan Quality Perform Quality
Management Control Quality
Processes Management Assurance
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TERMS
• Quality and Grade:

– Quality as a delivered performance or result is the degree to which a set of inherent characteristics
fulfill requirements
– Grade as a design intent is a category assigned to deliverables having the same functional use but
different technical characteristics.
– While a quality level that fails to meet quality requirements is always a problem, a low grade of
quality may not be a problem
• Precision vs. Accuracy:

– Precision is a measure of exactness
– Accuracy is an assessment of correctness
– For example, comparison of archery targets. Arrows clustered tightly in one area of the target, even
if they are not clustered in the bull’s-eye, are considered to have high precision. Targets where the
arrows are more spread out but equidistant from the bull’s-eye are considered to have the same
degree of accuracy. Targets where the arrows are both tightly grouped and within the bull’s-eye are
considered to be both accurate and precise
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TERMS
• Gold Plating: refers to giving the customer extras (e.g., extra functionality, higher quality components,
extra scope, or better performance)
• Just in Time (JIT): e.g. holding packaging materials in warehouse is too expensive and is unnecessary
à a company requests suppliers to deliver packaging materials just when they are needed, thus
decreasing storage cost to close to zero
• Marginal Analysis: optimal quality is reached at the point where the benefits or revenue to be received
from improving quality equals the incremental cost to achieve that quality. Sometimes added attention to
quality does not produce added value. When that point is reached, you should stop trying to improve
quality.
• Prevention (keeping errors out of the process) and inspection (keeping errors out of the hands of the
customer)
• Attribute sampling (the result either conforms or does not conform) and variables sampling (the result
is rated on a continuous scale that measures the degree of conformity)
• Tolerances (specified range of acceptable results) and control limits (that identify the boundaries of
common variation in a statistically stable process or process performance)
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TERMS
Modern quality management approaches seek to minimize variation and to deliver results that meet defined requirements.
These approaches recognize the importance of:
•Customer satisfaction: requires a combination of conformance to requirements (to ensure the project produces what it
was created to produce) and fitness for use (the product or service needs to satisfy the real needs)
– Quality is “conformance to requirements” – Philip Crosby
– Quality is “fitness for use” – Joseph Juran
– Crosby’s response to the quality crisis was the principle of “doing it right the first time” (DIRFT)
•Prevention over inspection: quality should be planned, designed, and built into—not inspected into the project’s
management or the project’s deliverables. The cost of preventing mistakes is generally much less than the cost of correcting
mistakes when they are found by inspection or during usage
•Continuous improvement: involves continuously looking for small improvements in products or processes to reduce costs
and ensure consistency of performance of products or services
– PDCA (Plan – Do – Check – Act) cycle is the basic for quality improvement as defined by Shewhart and modified
by Deming: Plan what is needed; Do it; Check that it works; and Act to correct any problem or improve
performance.
– Total quality management (TQM): this philosophy encourages companies and their employees to focus on
finding ways to continuously improve the quality of their products and their business practices at every level of
the organization
– Six Sigma: could improve the quality of the project’s management as well as the quality of the project’s product
– Lean Six Sigma
– Malcolm Baldrige model
– Organizational Project Management Maturity Model (OPM3®)
– Capability Maturity Model Integrated (CMMI®)
©Atoha JSC 175
TERMS
Modern quality management approaches seek to minimize variation and to deliver results that
meet defined requirements. These approaches recognize the importance of:
•Management responsibility
– Entire organization has responsibilities relating to quality
– Senior management is responsibility for organizational quality
– PM has ultimate responsibility for quality of product of project
– Each team member is responsible for self-inspection
•Cost of quality (COQ): refers to the total cost of the conformance work and the nonconformance work that
should be done as a compensatory effort because, on the first attempt to perform that work, the potential
exists that some portion of the required work effort may be done or has been done incorrectly. The costs for
quality work may be incurred throughout the deliverable’s life cycle.
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8.1. Plan Quality Management

• The process of identifying quality requirements and standards for the
project and its deliverables, and documenting how the project will
- Risk register
demonstrate compliance with relevant quality requirements.
factors
• Inputs
• Scope baseline: project scope statement, WBS, WBS dictionary
Tools and - Cost – benefit analysis
• Schedule baseline
techniques - Cost of quality
• Cost baseline
- Seven basic quality tools • Other management plan
- Benchmarking
- Design of experiments
• Industry quality standard or guidelines
- Statistical sampling
• Governmental regulations
- Additional quality planning • Organizational or company culture and structure
tools
- Meetings
• Quality policy, procedures, and guideline in organization
• Historical information and lessons learned from similar project
Outputs - Quality management plan
- Process improvement plan
- Quality metrics
©Atoha-JSC Quality checklists 177

– Cost benefit analysis: compares the cost of the quality step to the expected
- Risk register
benefit for each quality activity. The primary benefits of meeting quality
requirements include less rework, higher productivity, lower costs, increased
stakeholder satisfaction, and increased profitability
factors
– Cost of quality (COQ)
Cost of Conformance Cost of Nonconformance

(Money spent during the project to (Money spent during and after the project
techniques - Cost of quality avoid failures) because of failures)
- Seven basic quality tools
Prevention Costs
- Benchmarking
(Build a quality product) Internal Failure Costs
- Design of experiments - Training (Failures found by the project)
- Statistical sampling - Document processes - Rework
- Additional quality planning - Equipment - Scrap
tools - Time to do it right
- Meetings Appraisal Costs External Failure Costs
(Assess the quality) (Failures found by the customer)
Outputs - Quality management plan - Testing - Liabilities
- Process improvement plan - Destructive testing loss - Warranty work
- Quality metrics - Inspections - Lost business

– Seven basic quality tools: known as 7QC tools, are used within the context of
- Risk register
the PDCA cycle to solve quality-related problems
1. Cause & effect diagrams (fishbone diagrams or Ishikawa
diagrams) à find actionable root cause of the problem. Cause & effect
factors
tool can be used to perform “5 Why”
2. Flowcharts
– Show how process or system flow from beginning to end and how the
Tools and - Cost – benefit analysis elements interrelate
techniques - Cost of quality – Show the activities, decision points, branching loops, parallel paths, and the
- Seven basic quality tools overall order of processing by mapping the operational details of procedures
- Benchmarking that exist within a horizontal value chain of a SIPOC model
– May prove useful in understanding and estimating the COQ in a process
- Statistical sampling 3. Checksheets (tally sheets or checklist): useful for gathering
- Additional quality planning attributes data white performing inspections to identify defects
tools 4. Pareto diagrams
- Meetings – Are a special form of vertical bar chart and are used to identify the vital few
sources that are responsible for causing most of a problem’s effects
– Help focus attention on the most critical issues for improving
– Pareto diagrams will be organized into categories that measure either
- Process improvement plan frequencies or consequences
- Quality metrics

- Risk register
5. Histograms: are special forms of bar chart and are used to describe
the central tendency, dispersion, and shape of a statistical distribution.
factors
Unlike the control chart, the histogram does not consider the influence
of time on the variation that exists within a distribution.
6. Scatter diagrams (correlation charts): show how two different types
of data related to each other, to explain a change in the dependent
techniques - Cost of quality variable. The direction of correlation may be proportional (positive
- Seven basic quality tools correlation), inverse (negative correlation), or a pattern of correlation
- Benchmarking may not exist (zero correlation). If correlation can be established, a
- Design of experiments regression line can be calculated and used to estimate how a change to
- Statistical sampling the independent variable will influence the value of the dependent
- Additional quality planning variable
tools
- Meetings

- Quality metrics

- Risk register
7. Control charts:
factors
– Graphically help to determine whether a process is stable or has
predictable performance
– Upper and lower specification limits are based on requirements
of the agreement. They reflect the maximum and minimum values
allowed. There may be penalties associated with exceeding the
specification limits
– Upper and lower control limits are determined using standard
- Benchmarking
statistical calculations and principles to ultimately establish the
natural capability for a stable process. Corrective actions will be
taken to prevent unnatural performance when a process is
- Additional quality planning considered out of control:
tools
» Data points outside the range between upper and lower
- Meetings
control limits
» Rule of Seven: seven consecutive plot points are above or
Outputs - Quality management plan below the mean, even within the upper & lower control limit
- Quality metrics

• Seven basic quality tools
- Risk register
factors

- Benchmarking
- Additional quality planning
tools
- Meetings

- Quality metrics

– Benchmarking: the surveying of other organizations, or looking at any past
- Risk register
comparable projects to identify best practices, get ideas for improvement on the
current project and provide a basis for measuring quality performance
– Design of Experiments (DOE):
factors
• Is a statistical method, uses experiments to statistically determine what
variables will improve quality
• Allows changing systematically all of the important factors in a process
and see which combination has a lower impact on the project. This
technique is faster and more accurate than changing each variable once
at a time
- Benchmarking
• Optimizes products or processes
• Allows you to find which variable/factors that have the most impact on
quality. Also, experiments are a method for R&D
tools
– Statistical sampling: chooses part of a population of interest for inspection
- Meetings – Additional quality planning tools
• Brainstorming
Outputs - Quality management plan • Force field analysis
- Process improvement plan • Nominal group techniques
- Quality metrics • Quality management and control tools

• Outputs
– Quality management plan
- Risk register
• Is a component of the project management plan that describes how the
organization’s quality policies will be implemented and how the project
management team plans to meet the quality requirements set for the
factors
project
• Should be reviewed early in the project to ensure that decisions are
based on accurate information
– Process improvement plan: details the steps for analyzing project
management and product development processes to identify activities that
enhance their value, includes the following areas:
- Benchmarking
• Process boundaries
• Process configuration
• Process metrics
tools • Target for improved performance
- Meetings

- Quality metrics

• Outputs
– Quality metrics
- Risk register
• Describes a project or product attribute, and how the control quality
process will measure. The tolerance defines the allowable variations to
the metric
factors
• Examples include on-time performance, cost control, defect frequency,
failure rate, availability, reliability, and test coverage
– Quality checklists: A quality checklist is a list of items to inspect, or a list of
steps to be performed, etc.
– Project documents updates
- Benchmarking
• Stakeholder register
- Design of experiments • Responsibility assignment matrix (RAM)
- Statistical sampling • WBS and WBS dictionary
tools
- Meetings

- Quality metrics
8.2. Perform Quality Assurance
Inputs - Quality management plan

• The process of auditing the quality requirements and the results from
quality control measurements to ensure that appropriate quality standards
- Quality metrics
and operational definitions are used. It facilitates the improvement of quality
- Quality control measurements
processes
- Project documents
Tools and - Quality management and

techniques control tools • Inputs
- Quality audits – Quality control measurements
- Process analysis
• Are the results of activities performed during control quality that analyze
and evaluate the quality of the processes of the project against the
Outputs - Change requests standards or the requirements specified
• Can also compare the processes used to create the measurements, and
updates validate actual measurements to determine their level of correctness.
updates
©Atoha JSC 186

– Quality management & control tools: this process uses all the tools and
techniques of the Plan Quality Management and Control Quality processes and
Inputs - Quality management plan other tools such as:
- Process improvement plan • Affinity diagrams: are similar to mind-mapping techniques in that they are
- Quality metrics used to generate large numbers of ideas that can be linked to form organized
- Quality control measurements patterns of thought about a problem, into groups for review and analysis
- Project documents • Process decision program charts (PDPC): used to understand a goal in
relation to the steps for getting to the goal
Tools and - Quality management and • Interrelationship digraphs: provide a process for creative problem solving in
techniques control tools moderately complex scenarios that possess intertwined logical relationships
- Quality audits for up to 50 relevant items
- Process analysis • Tree diagrams: known as systematic diagrams, and may be used to
represent decomposition hierarchies such as WBS, RBS (risk breakdown
Outputs - Change requests structure), OBS (organizational breakdown structure)
- Project management plan • Prioritization matrices: identify the key issues and the suitable alternatives
updates to be prioritized as a set of decisions for implementation
- Project documents updates • Activity network diagrams (arrow diagrams): like schedule network
- Organizational process assets diagram, include AOA (activity on arrow) and, most commonly used, AON
updates (activity on Node)
• Matric diagrams: used to perform data analysis with organizational structure
created in the matrix. The matrix diagram seeks to show the strength of
relationships between factors, causes, and objectives that exist between the
rows and columns that form the matrix.
©Atoha JSC 187

- Process improvement plan – Quality management & control tools
- Quality metrics
- Quality control measurements
- Project documents

techniques control tools
- Quality audits
- Process analysis

updates
updates
©Atoha JSC 188


Tools and techniques
- Quality metrics
– Quality audits
- Quality control measurements • Review whether project activities comply with company policies,
- Project documents standards, processes, and procedures and determine whether
the policies, standards, processes, and procedures being used
Tools and - Quality management and are effective and efficient
techniques control tools • A good quality audit will look for new lessons learned and good
- Quality audits
practices that your project can contribute to your organization
- Process analysis
• Quality audits can confirm the implementation of approved
change request including corrective actions, prevention actions,
and defect repairs
- Project management plan – Process analysis: includes root cause analysis. Process analysis
updates follows the steps outlined in the process improvement plan to identify
- Project documents updates needed improvements. This analysis also examines problems
- Organizational process assets experienced, constraints experienced, and non-value added activities
updates identified during process operation.
©Atoha JSC 189


• Outputs
- Quality metrics
– Change requests
- Quality control measurements – Project management plan updates: quality, scope, schedule and
- Project documents cost management plan
• Quality audits reports
techniques control tools
- Quality audits
• Training plans
- Process analysis • Process documentation
– Organizational process assets updates: quality standards and the
quality management system
updates
updates
©Atoha JSC 190

8.3. Control Quality

• The process of monitoring and recording results of executing the quality
- Quality metrics
activities to assess performance and recommend necessary changes
- Quality checklist
- Approved change requests • A goal of the Control Quality process is to determine the correctness of
- Deliverables deliverables
- Project documents
Tools and - Seven basic quality tools
• The key benefit of this process includes
techniques - Statistical sampling – Identifying the causes of poor process or product quality, and
- Inspection recommending and/or taking action to eliminate them
- Approved change requests – Validating that project deliverables and work meet the requirements
review
specified by key stakeholder necessary for final acceptance
Outputs - Quality control measurements
- Validated changes
- Change requests
updates
©Atoha-JSC Organizational process assets

191
updates

• Inputs
- Quality metrics
– Project management plan: quality management plan
- Quality checklist
– Quality metrics: e.g., used in factory production: mean time between failure
(MTBF), and mean time to repair (MTTR)
- Deliverables
– Work performance data: includes planned vs. actual technical performance,
schedule performance, and cost performance
- Project documents
– Approved change requests: the timely implementation of approved changes
needs to be verified when approved change requests include modifications
such as defect repairs, revised work methods, and revised schedule
techniques - Statistical sampling
- Inspection
– Project documents: training plan, quality audit reports, agreements, etc.
- Approved change requests – Organization process assets: standards, policies, guidelines, and procedures
review
- Validated changes
- Change requests
updates

192
updates

• Tool & Techniques
- Quality metrics
– Seven basic quality tools
- Quality checklist
• Cause & effect diagrams (fishbone diagrams or Ishikawa diagrams)
- Approved change requests • Flowcharts
- Deliverables • Checksheets (tally sheets or checklist)
- Project documents • Pareto diagrams
- Organizational process assets • Histograms
Tools and - Seven basic quality tools • Control charts
• Scatter diagrams (correlation charts)
- Inspection
– Statistical sampling
– Inspection
review
• May be called reviews, peer reviews, audits, or walkthroughs; and is used
- Validated changes
to validate defect repairs
- Verified deliverables • Looking at all deliverables to check if they conform to documented
standards
- Change requests • Can inspect a single activity or the final product of the project
- Project management plan • Increasing inspection lead to the LEAST amount of quality improvement
updates – Approved change request review

193
updates

• Outputs
- Quality metrics
– Quality control measurements: results of control quality activities: the
- Quality checklist
numbers of defects you’ve found, numbers of tests that passed or failed
(outputs from the inspections), results from the repairs you’ve made, etc.
– Validated changes: any changed or repaired items are inspected and will be
- Deliverables
either accepted or rejected before notification of decision is provided
- Project documents
– Verified deliverables (input to Validate Scope for formalized acceptance):
the results of performing Control Quality are verified deliverables
– Project management plan updates: quality management plan, process
improvement plan
- Inspection
– Project management updates: quality standards, quality audit reports, training
plans, agreements, etc.
review
– Organizational process assets updates: completed checklists, and lessons
- Validated changes
learned
- Change requests
updates

194
updates
PROJECT HUMAN RESOURCE
MANAGEMENT

©Atoha JSC 195

Introduction
• Project Human Resource Management includes the processes that organize, manage, and lead the project
team. The project team is comprised of the people with assigned roles and responsibilities for completing the
project. Project team members may have varied skill sets, may be assigned full or part-time, and may be added
or removed from the team as the project progresses.
• Managing and leading the project team includes: Influencing the project team (team environment,
geographical locations of team members, communications among stakeholders, internal and external politics,
cultural issues, organizational uniqueness, etc.) and Professional and ethical behavior (ensure that all team
members follow professional and ethical behavior)
Monitoring &
Controlling
Plan Human
Acquire Project
Resource
Human Team
Management
Resource
Develop Project
Management Team
Processes
Manage Project
Team
©Atoha JSC 196

9.1. Plan Human Resource Management
• The process of identifying and documenting project roles, responsibilities,
required skills, reporting relationships, and creating a staffing management
plan
factors
• Inputs
Tools and - Organizational charts and – Project management plan: includes project life cycle, change management
techniques position descriptions plan, configuration management plan, needs and methods of communication
- Networking among stakeholders, etc.
- Organizational theory – Activity resource requirements: determine human resource needs for the
- Expert judgment project
- Meetings – Enterprise environment factors
• Organization culture and structure
Outputs - Human resource management • Marketplace conditions, labor rates
plan • Existing human resources
– Organization process assets
• Templates, processes, policies, standard, and guidelines
• Lessons learned
• Escalation procedures for handling issues within the team and within the
performing organization
©Atoha JSC 197
• Organization charts and position descriptions: is to ensure that each
factors
work package has an unambiguous owner and that all team members have
- Organizational process assets a clear understanding of their roles and responsibilities
– Three common types:
Tools and - Organizational charts and • Hierarchical-type charts
techniques position descriptions • Matrix-based charts
- Networking • Text-oriented formats: position descriptions, role-responsibility-authority
- Organizational theory – Different formats may be used, depending on the project
- Expert judgment
- Meetings
Outputs - Human resource management

plan
©Atoha JSC 198

• Matrix – based chart
– A responsibility assignment matrix (RAM) is used to identify the connections
between work packages or activities and project team members
factors
– The matrix format shows all activities associated with one person and all people
associated with one activity. This also ensures that there is only one person
accountable for any one task to avoid confusion of responsibility.
Tools and - Organizational charts and
– The RACI (Responsible, Accountable, Consult, Inform) – one type of RAM:
techniques position descriptions
- Networking
- Organizational theory
- Expert judgment
- Meetings ROLE
Activity
Robert Mark Tony Ann
Outputs - Human resource management
Develop project management plan A R C I
plan
Develop schedule A R I
Develop risk plan A R I
Develop human resource plan A R C R
Develop budget A R C
©Atoha JSC 199

– Human resource management plan: provides guidance on how project
- Enterprise environmental human resources should be defined, staffed, managed, and eventually
factors released. Includes:
- Organizational process assets • Roles and responsibilities
– Role
Tools and - Organizational charts and
– Authority
techniques position descriptions
– Responsibility
- Networking
– Competency
- Organizational theory
- Expert judgment
• Project organization charts
- Meetings • Staffing management plan:
– Staff acquisition
Outputs - Human resource management – Resource calendars
plan – Staff release plan
– Training needs
– Recognition and rewards
– Compliance to government regulations, union contract, etc.
– Safety policies and procedures
©Atoha JSC 200

Inputs - Human resource management
• The process of confirming human resource availability and obtaining the
plan
team necessary to complete project activities.
factors
• Inputs
– Human resource management plan
Tools and - Pre-assignment
– Enterprise environment factors
techniques - Negotiation • Existing information on human resource including availability, competency
- Acquisition
levels, prior experience, interest in working on the project and their cost
- Virtual teams
rate
- Multi-criteria decision analysis • Colocation or multiple locations
• Organizational structure – functional/ matrix/ projectized. What is the
Outputs - Project staff assignments
project managers’ authority and ability to acquire project team?
- Resource calendars • Personnel administration policies
- Project management plan – Organizational process assets: standard policies, guidelines, and procedures
updates
©Atoha JSC 201

Inputs - •
Human resource management Tools and techniques
plan – Pre-assignment: specific people are selected in advance to participate on a project
- Enterprise environmental team
factors – Negotiation
- Organizational process assets – Acquisition: acquire outside resources such as hiring consultants or subcontracting
work to another organization
– Virtual teams: when project team members
• Live in different locations, widespread geographic areas
techniques - Negotiation
• Work different shifts, hours, or days
- Acquisition
• Work from home offices
- Virtual teams
• With mobility limitations or disabilities
- Multi-criteria decision analysis – Multi-criteria decision analysis
• Availability: Who is available and when within the project timeline?
Outputs - Project staff assignments • Cost: How much cost is required for this skill and competency level? Is it more
- Resource calendars costly to outsource?
- Project management plan • Experience: Have they done similar project? Did they complete well?
updates • Ability: Has the team member have the required competencies?
• Knowledge: whether the team member has relevant knowledge
• Skills: whether the team member has relevant skills
• Attitude: whether the team member has the ability to work with others as a
cohesive team
• International factors: location, time zone and communication capabilities
©Atoha JSC 202

• Outputs
plan
– Project staff assignments: the project is staffed when appropriate people
have been assigned to the team
factors
– Resource calendars: time periods that each project team member is available
to work on the project
– Project management plan updates: human resource management plan
techniques - Negotiation
- Acquisition
- Virtual teams
- Multi-criteria decision analysis
Outputs - Project staff assignments

updates
©Atoha JSC 203

• The process of improving the competencies, team member interaction, and
plan
overall team environment to enhance project performance
• Objectives
Tools and - Interpersonal skills – Build up and enhance teamwork, team spirit by creating an open, truthful, and
techniques - Training constructive environment
- Team-building activities – Improve knowledge and skills of team members to increase their ability to
- Ground rules complete project deliverables, while improving quality, reducing cost and time.
- Colocation – Create and maintain dynamic, cohesive, and collaborative team culture to
- Recognition and rewards improve individual and team productivity and to share knowledge and
- Personnel assessment tools experience among team members
Outputs - Team performance

assessments
factors updates
©Atoha JSC 204

Inputs - Human resource management • Tools and techniques
plan – Interpersonal skills (soft-skills): includes proficiencies such as
- Project staff assignments communication skills, emotional intelligence, conflict resolution,
- Resource calendars negotiation, influence, team building, and group facilitation.
– Training: includes all activities designed to increase the competencies of
the project team members. Training may be formal or informal, include e-
Tools and - Interpersonal skills learning, classroom, on the job training, coaching, etc.
techniques - Training – Team building activities:
- Team-building activities • Informal communication and activities can help in building trust and
- Ground rules establishing good working relationship
- Colocation • A continued or a renewed team-building effort should be applied
- Recognition and rewards • Team development model – Tuckman ladder: 5 stages
- Personnel assessment tools – Forming: people are brought together as a team
– Storming: there are disagreements as people learn to work
together
assessments
– Norming: team members begin to build good working
relationships
– Performing: the team becomes efficient and work effectively
factors updates
together. This is the point when the project manager can give
the most attention to developing individual team members
– Adjourning: the project ends, and the team is disbanded
©Atoha JSC 205

plan
– Ground rules: statements that a group establishes to help team
members decide how to act. Early commitment to clear guidelines
decreases misunderstandings and increases productivity
Tools and - Interpersonal skills – Co-location (tight matrix): place all of the most active project team
techniques - Training members in the same location (“war room”) to enhance their ability to
- Team-building activities perform as a team
- Ground rules
– Recognition and rewards: people are motivated if they feel they are
- Colocation
valued in the organization and this value is demonstrated by the
- Recognition and rewards
rewards give to them
- Personnel assessment tools
– Personnel assessment tools: various tools are available such as
attitudinal survey, structured review, ability test, focus group, etc. that
assessments provide improved understanding, trust, commitment, and
- Enterprise environmental communications among team members throughout the project
factors updates
©Atoha JSC 206

• Outputs
plan
– Team performance assessments
- Resource calendars • Make formal or informal assessments of the project team’s
effectiveness
Tools and - Interpersonal skills • Effective team development strategies and activities are
techniques - Training implemented to increase the team’s performance, which
- Team-building activities increases the likelihood of meeting project objectives
- Ground rules
• The performance of a successful team is measured in terms of
- Colocation
- Recognition and rewards
technical success, performance on project schedule and budget
- Personnel assessment tools – Enterprise environment factors updates: personnel administration,
training records, and skill assessments
assessments
factors updates
©Atoha JSC 207

Inputs - HR management plan
• The process of tracking team member performance, providing feedback,
resolving issues, and managing team changes to optimize project
- Team performance
performance. The key benefit of this process is that it influences team
assessments
behavior, manages conflict, resolves issues, and appraises team member
- Issue log
performance
• Inputs
Tools and - Observation and conversation
– Issue log: issues arise in the course of managing the project team.
techniques - Project performance appraisals
An issue log can be used to document and monitor who is responsible
- Conflict management
for resolving specific issues by a target date.
- Interpersonal skills
– Work performance reports: provides documentation about the
Outputs - Change requests current project status compared to project forecasts. These assist in
- Project management plan determining future human resource requirements, recognition and
updates rewards, and update to the staffing management plan
- Project documents updates – Organization process assets: certificates of appreciation, websites,
bonus structures, corporate apparel, newsletters, and other
factors updates
organizational perquisites
updates
©Atoha JSC 208

- Team performance
– Observation and conversation: monitor team members’ attitudes
assessments
and performance by walking around to stay in touch with what is really
- Issue log going on with the project
- Work performance reports – Project performance appraisals
• Looking at each person’s work and assessing his or her
performance
• Evaluation and feedback to encourage team members to
achieve high level of performance

updates
factors updates
updates
©Atoha JSC 209

Inputs - HR management plan • Tools and techniques
– Conflict management
- Team performance
• Conflict is inevitable during projects and is not necessarily negative
assessments
• Reduce conflict with
- Issue log
– Team ground rules
- Work performance reports – Group norms/policies
- Organizational process assets – Solid project management practices, such as communications planning
and roles definition
Tools and - Observation and conversation • 7 sources of conflict in order of frequency:
techniques - Project performance appraisals – Schedule
- Conflict management – Project priorities
– Resources
– Technical opinions
– Administrative procedures
– Cost
– Personality
updates
• Techniques for resolving conflict:
– Project team members should try to resolve conflict
– If conflict escalates, the project manager should help
factors updates
– A direct and collaborative approach is useful
- Organizational process assets – If a disruptive conflict continues, formal procedures may be necessary
updates
©Atoha JSC 210

- Team performance
– Conflict management: 5 general techniques for resolving conflict:
assessments • Withdraw/Avoid: Retreating from an actual or potential conflict
- Issue log situation; postponing the issue to be better prepared or to be
- Work performance reports resolved by others
• Smooth/Accommodate: Emphasizing areas of agreement
rather than areas of difference; conceding one’s position to the
needs of others to maintain harmony and relationships.
• Compromise/Reconcile (lose-lose): Searching for solutions
that bring some degree of satisfaction to all parties in order to
temporarily or partially resolve the conflict.
Outputs - Change requests • Force/Direct (win-lose): Pushing one’s viewpoint at the
- Project management plan expense of others; offering only win-lose solutions, usually
updates enforced through a power position to resolve an emergency.
• Collaborate/Problem Solve (win-win): Incorporating multiple
viewpoints and insights from differing perspectives; requires a
factors updates
cooperative attitude and open dialogue that typically leads to
updates
consensus and commitment.
©Atoha JSC 211
Class Activity
• Identify situations where conflict occurred in your work
• What caused the conflict?
• How was the conflict handled?
• How would you handle it differently?
©Atoha JSC 212

Inputs - HR management plan • Tools and techniques
– Interpersonal skills:
- Team performance
Leadership: some typical leadership styles
assessments
• Autocratic: top-down approach where the manager has power to do whatever
- Issue log he or she wants. The manager may coach or delegates, but everyone is doing
- Work performance reports what the manager wants them to do
- Organizational process assets • Bureaucratic: focuses on procedures exactly. It may be appropriate for work in
which details are critical or in which specific safety or other regulations must be
strictly adhered to
Tools and - Observation and conversation • Charismatic: encourage the team in performing project work. With this style,
techniques - Project performance appraisals project success may become dependent on the presence of the charismatic
- Conflict management leader, and the team relies on the leader for motivation
- Interpersonal skills • Consensus: involves problem solving in a group, and making decisions based
on group agreement
• Delegating: with a delegating style, the manager establishes goals and then
gives the project team sufficient authority to complete the work. For basic
- Project management plan project management, the manager involves the team in the planning process
updates and assigns or delegates planning work and executing work to team members
- Project documents updates • Democratic: encourages team participation in the decision-making process.
The team own the decisions made by the groups, which results in improved
teamwork and cooperation
factors updates
• Laissez-faire: French term means “allow to act”. A laissez-faire manager is not
- Organizational process assets directly involved in the work of the team but manages and consults as
updates necessary. This style can be appropriate with a highly skilled team
©Atoha JSC 213
- Team performance
– Interpersonal skills
assessments • Influencing
- Issue log – Power of the project manager:
- Work performance reports » Formal (Legitimate): come from your position
» Reward: come from your reward policies from your position
» Penalty (Coercive): come from your penalty policies from
Tools and - Observation and conversation your position
» Expert: come from your being technical or project
management expert
» Referent: come from another person respecting you due to
your fame
– Powers derived from your position are: Formal, Reward and
Penalty
updates
– The best forms of power are Expert & Reward
– The worst form of power is Penalty
factors updates – The power is earned by your own is Expert
updates
©Atoha JSC 214

Class Activity
• What types or sources of power are available to you?
• How can you most effectively use each one?
• How will you implement ideas from this chapter to negotiate
or share power more effectively?
©Atoha JSC 215

- Team performance
assessments • Effective decision-making
- Issue log – Study the environmental factors
– Analyze available information
– Focus on goals to be served
Tools and - Observation and conversation – Follow a decision-making process
techniques - Project performance appraisals – Develop personal qualities of the team members
– Stimulate team creativity
– Manage risk.
updates
factors updates
updates
©Atoha JSC 216

• Outputs
– Change requests: staffing changes can affect the rest of the project
- Team performance
management plan such as causing the schedule to be extended and the budget
assessments
to be exceeded. Preventive actions may include cross training to reduce
- Issue log
problems during project team member absences and additional role clarification
- Work performance reports to ensure all responsibilities are fulfilled.
– Project management plan updates: human resource management plan
– Project documents updates: issue log, roles description and project staff
assignments
– Enterprise environmental factors updates: the project manager should
update any competencies or skills of team members that were discovered
- Interpersonal skills during the project
• Templates and standard process
updates
• Historical database and lessons learned
factors updates
updates
©Atoha JSC 217

TERMS
• Expectancy theory: employees who believe their efforts will lead to effective performance
and who expect to be rewarded for their accomplishments will remain productive as rewards
meet their expectations.
• Arbitration: a neutral party hears and resolves a dispute
• Perquisites (perks): some employees receive special rewards, such as assigned parking
spaces, education, profit sharing
• Fringe benefits: “standard” benefits formally given to all employees, such as education
benefits, insurance, and profit sharing.
• Hallo effect: a tendency to rate team members high or low on all factors due to the
impression of a high or low rating on some specific factor. E.g., you are a construction
expert, your boss will make you a PM and expect you to be a great PM as well
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MOTIVATION THEORIES
• McGregor’s theory of X and Y
– Theory X: managers who accept this theory believe that employees need to be
watched every minute. They believe employees avoid responsibility, and avoid work
whenever possible
– Theory Y: managers who accept this theory believe that employees are willing to work
without supervision, and want to achieve. Employees can direct their own efforts
• Maslow’s hierarchy of needs: Maslow created a pyramid to show how people are
motivated and mentioned one cannot ascend to the next level until the levels below are
fulfilled
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MOTIVATION THEORIES
• David McClelland’s theory of needs (Acquired Needs theory): people are most
motivated by one of the 3 needs in the following table.
Primary Need Behavioral Style
Achievement - These people should be given projects that are challenging but are reachable
- They like recognition
Affiliation - These people work best when cooperating with others
- They seek approval rather than recognition
Power - People whose need for power is socially oriented, rather than personally
oriented, are effective leaders and should be allowed to manage others
- These people like to organize and influence others
• Herzberg's theory:
Hygiene factors: poor hygiene factors may destroy motivation, Motivating agents: what motivates people is
but improving them will not improve motivation the work itself
Working conditions, salary, personal life, security, safety, Responsibility, self-actualization, professional
relationship at work, etc. growth, recognition
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Class Activity
• What motivation techniques have you used in your
project?
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END.
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PROJECT COMMUNICATIONS
MANAGEMENT

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Introduction
• Project Communications Management: includes the processes that are required to ensure timely and
appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring,
and the ultimate disposition of project information.
• Project managers spend most of their time (around 60-90%) communicating with team members and other
project stakeholders (internal & external). The project manager cannot control all communications but
should try to control
• Classification of communication activities:
– Internal (within the project) and external (customer, other projects, the media, the public)
– Formal (report, minutes, briefings) and informal (emails, memos, ad-hoc discussions)
– Vertical (up and down the organization) and horizontal (with peers)
– Official (newsletters, annual report) and unofficial (off the record communications)
– Written and oral
– Verbal and non-verbal (voice inflections, body language)
Monitoring &
Controlling
Communications Plan
Manage Control
Management Communications
Communications Communications
Processes Management
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10.1. Plan Communications Management
• The process of developing an appropriate approach and plan for project
communications based on stakeholder's information needs and
requirements, and available organizational assets. The key benefit of this
factors
process is that it identifies and documents the approach to communicate
most effectively and efficiently with stakeholders. Effective communication
Tools and - Communication requirements
means that the information is provided in the right format, at the right time,
techniques analysis
to the right audience, and with the right impact. Efficient communication
- Communication technology
means providing only the information that is needed
- Communication models
- Communication methods • Effective communications: need to be aware of factors:
- Meetings
– Nonverbal: A significant portion of in-person communication is nonverbal (i.e.,
based on physical mannerisms). This is also known as body language
Outputs - Communication management
– Paralingual: Pitch and tone of voice also help to convey a spoken message.
plan
– Words: The words and phrasing the sender chooses are an essential
component to the message, but their meaning can change depending on the
accompanying nonverbal and paralingual factors – or even the absence of
those factors in written communications
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Communication pie chart
How many % of Words, Paralingual, Nonverbal that
convey your messages?
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• Inputs
– Stakeholder register: provides the information needed to plan the
factors
communication with stakeholders
• Organizational culture, structure, and governance
• Existing human resources
techniques analysis
• Geographic distribution of facilities and resources
• Political climate
• Commercial databases
- Communication methods
• PMIS
- Meetings
• Company work authorization systems
• Stakeholder risk tolerance
Outputs - Communication management • Marketplace conditions
plan – Organizational process assets
- Project documents updates • Past experience working with the same stakeholders
• Lessons learned and historical information
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– Communications requirements analysis:
• Determine the information needs of the stakeholders. These
factors requirements are defined by combining the type and format of information
- Organizational process assets needed with an analysis of the value of that information.
• The project manager should consider the number of potential
Tools and - Communication requirements communication channels or paths as an indicators of the complexity of a
project’s communications
techniques analysis
• Number of communication channels = n(n-1)/2
•
– Communication technology: Factors may influence the choice of
communication technology:
- Meetings
• Urgent of the need for information: urgency, frequency, and format of
the information
• Availability of technology: compatible, available, accessible
plan
• Ease of use: suitable for project participants
• Project environment: face to face, virtual environment, multiple time
zones, cultures, etc.
• Sensitivity and confidentiality of the information: sensitive or
confidential information, also consider the most appropriate way to
communicate the information
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Inputs - Project management plan • Tools and techniques:
- Stakeholder register Communication models
factors

techniques analysis
- Communication technology • Encode: Ideas are translated into language by the sender. The sender is responsible
- Communication models for the transmission of the message, ensuring the information being communicated is
clear and complete, and confirming the communication is correctly understood
• Transmit message: This information is then sent by sender using communication
- Meetings channel (medium). The transmission of this message may be compromised by
various factors, such as distance, unfamiliar technology, cultural difference, etc.
Generally, these factors are termed as noise. Any noises along the way may
Outputs - Communication management compromise the original meaning of message and lead to being misunderstood or
plan misinterpreted
- Project documents updates • Decode: The message is translated by the receiver back into meaningful ideas. The
receiver is responsible for ensuring the information is received entirely, understood
correctly, and acknowledged
• Acknowledge: The receiver may signal (acknowledge) receipt of message, DO NOT
necessarily mean AGREEMENT with the sender
• Feedback/Response: When the received message has been decoded and
understood, the receiver encodes ideas into a message and then transmits this
message to the original sender
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– Communications Methods:
• Interactive communication: Between two or more parties performing a
factors
multidirectional exchange of information. It's the most efficient way to
ensure a common understanding by all participants on specified topics.
E.g., meetings, phone calls, video conference, etc.
• Push communication: Sent to specific recipients who need to receive
techniques analysis
the information. This ensures the information is distributed but does NOT
ensure that it actually reached or was understood by the intended
- Communication models audience. E.g., letters, emails, reports, memos, faxes, voice mails, etc.
• Pull communication: Used for very large volumes of
- Meetings information/audiences, and requires the recipients to access the
communication content at their own discretion. E.g., intranet, e-learning,
Outputs - Communication management lessons learned databases, etc.
plan
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• Outputs
– Communications management plan: describes how project communications
will be planned, structured, monitored, and controlled. Including:
factors
• Stakeholder communications requirements
• Reason for the distributions of the information
• Information to be communicated, including language, format, content,
level of detail
techniques analysis
- Communication technology • Time frame and frequency for the distribution of required information and
receipt of acknowledgment or response
- Communication methods • Methods or technologies used to convey the information, such as email,
- Meetings
press releases, etc.
• Person responsible for communicating/ authorizing release of confidential
information
plan • Process for escalating issues that cannot be solved at lower staff level
- Project documents updates • Guidelines and templates for meetings, presentations
• Communication constraints usually derived from a specific legislation or
regulation, technology, and organizational policies, etc.
– Project documents updates: project schedule, stakeholder register
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10.2. Manage Communications
Inputs - Communications management • The process of creating, collecting, distributing, storing, retrieving, and the
plan ultimate disposition of project information in accordance to the
- Work performance reports communications management plan. This process enables an efficient and
- Enterprise environmental effective communications flow between project stakeholders
factors
• Techniques and considerations for effective communications management
include:
Tools and - Communication technology
– Sender-receiver models: Incorporating feedback loops to provide
techniques - Communication models
opportunities for interaction and remove barriers to communication
– Choice of media. Writing vs. orally, informal vs. formal report, face to face vs.
- Information management e-mail, etc.
systems – Writing style: Appropriate use of active vs. passive voice, structure of
- Performance reporting sentence, and word choice
– Meeting management techniques: Preparing an agenda and dealing with
Outputs - Project communications conflicts
- Project management plan – Presentation techniques: Awareness of the impact of body language and
updates
design of visual aids
– Facilitation techniques: Building consensus and overcoming obstacles
- Organizational process assets – Listening techniques: Listening actively by acknowledging, clarifying, and
confirming understanding
updates
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Inputs - Communications management
• Inputs
plan
– Communication management plan
– Work performance reports: are the project performance and status
information
factors
Tools and - Communication technology • Industry standard and regulations
techniques - Communication models • PMIS
- Communication methods – Organizational process assets
- Information management • Policies, procedures, processes, guidelines, and templates
systems
• Historical information and lessons learned
- Performance reporting
Outputs - Project communications

updates
updates
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plan
– Information management systems: project information is managed and
distributed using various tools:
• Hard-copy document management: letters, memos, reports
factors
• Electronic communication management: e-mail, fax, voice mail,
telephone, video, web conferencing
• Electronic project management: project management software, virtual
office support software, portals
- Communication methods – Performance reporting: the act of collecting and distributing performance
- Information management
information, including status report, progress measurements, and forecasts.
systems • Involves the periodic collection & analysis of baseline vs. actual data to
- Performance reporting understand and communicate the project progress and performances as
well as to forecast the project results
Outputs - Project communications
• Performance reporting needs to provide information at an appropriate
level for each audience
updates • Reports should be designed for the needs of the project
- Project documents updates • Reports must be truthful and not hide what is really going on
- Organizational process assets • There are different types of performance reports: status report, progress
updates report, trend report, forecasting report, variance report, earned value
report, lessons learned documentation
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• Outputs
plan
– Project communications: may include performance reports, deliverables
status, schedule progress, cost incurred. Some common report formats: Bar
Chart, S-curves, Histogram, Table
factors
– Project management plan updates: project baseline, communications
management, and stakeholder management plan
• Issue log
- Communication methods • Project schedule
- Information management • Project funding requirements
systems – Organizational process assets updates
- Performance reporting • Stakeholder notifications
• Project reports
Outputs - Project communications • Project presentations
• Project records
updates
• Feedback from stakeholders
• Lesson learned documentation
updates
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10.3. Control Communications
Inputs - Project management plan • Process of monitoring and controlling communications throughout the entire
- Project communications project life cycle to ensure the information needs of the project stakeholders
- Issue log are delivered to the right person at the right time. The key benefit of this
- Work performance data process is that it ensures an optimal information flow among all
- Organizational process assets communication participants at any moment in time
Tools and - Information management

• Inputs
techniques systems
– Project management plan: includes:
- Expert judgment
• Stakeholder communication requirements
- Meetings
• Reason for distribution of information
• Timeframe and frequency for distribution of required information
• Individual or group responsible for communication of information or
- Change requests receiving information
- Project management plan – Project communications: come from multiple sources and may vary in their
updates format, level of detail, degree of formality and confidentiality, incl.
- Project documents updates • Deliverables status
- Organizational process assets • Costs incurred
updates • Schedule progress
– Issue log: is used to document and monitor the resolution of issues
– Organizational process assets: report templates, policies, standards,
procedures that define communication
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10.3. Control Communications
- Project communications
– Information management systems: provides a set of standard tools for the
- Issue log
project manager to capture, store, and distribute information to stakeholders
about the project's cost, schedule progress, and performance.
Tools and - Information management • Outputs

techniques systems – Work performance information: organizes and summarizes the performance
- Expert judgment data gathered. This information is then communicated to the appropriate
- Meetings stakeholders
– Project management plan updates: communications management plan,
Outputs - Work performance information stakeholder management plan, and human resource management plan
- Change requests – Project documents updates: forecast, performance reports, and issue log
- Project management plan – Organizational process assets updates: report format, lessons learned, etc.
updates
updates
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END.
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PROJECT RISK MANAGEMENT

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CONTENT
Introduction
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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Introduction
– Risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on one
or more project objectives such as scope, time, cost, and quality. A risk may have one or more
causes and, if it occurs, it may have one or more impacts. A cause may be a given or potential
requirement, assumption, constraint, or condition that creates the possibility of negative or
positive outcomes
– Project Risk Management includes the processes of conducting risk management planning,
identification, analysis, responses planning, and monitoring risk on a project. The objectives of
project risk management are to increase the likelihood and impact of positive events, and
decrease the likelihood and impact of negative events in the project
– The risk attitudes are driven by perception, tolerances, and other biases, which should be made
explicit wherever possible. The risk attitudes may be influenced by three themes:
• Risk appetite: the degree of uncertainty an entity is willing to take on, in anticipation of a reward
• Risk tolerance: the degree, amount, or volume of risk that an organization or individual will withstand
• Risk threshold: measure of the level of uncertainty or the level of impact at which a stakeholder may
have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk
threshold, the organization will not tolerate the risk.
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Project Risk Management
Process Group
Monitoring &
Controlling
11.6. Control
Risks

Risk
11.3. Perform Qualitative Risk
Management
Analysis
Processes
11.4. Perform Quantitative Risk
Analysis
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Inputs 1. Project management plan

The process of defining how to conduct risk management activities
2. Project charter
for a project
3. Stakeholder register
4. Enterprise environmental factors
5. Organizational process assets • Inputs:
Tools and 1. Analytical techniques – Enterprise environmental factors: risk attitudes, thresholds, and
techniques 2. Expert judgment tolerances
3. Meetings
Outputs 1. Risk management plan
• Risk categories
• Common definitions of concepts and terms
• Risk statement formats
• Roles and responsibilities
• Authority levels for decision making
• Standard templates and lessons learned
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Inputs 1. Project management plan • Outputs: Risk management plan:

2. Project charter – Methodology: describes the approaches, tools, methods, and source of information which
3. Stakeholder register will be used to perform risk management
4. Enterprise environmental factors – Roles and responsibilities: defines the lead, support, and risk management team members
5. Organizational process assets and clarifies their responsibilities for each activity in the risk management plan
– Budgeting: estimates funds needed, based on assigned resources, for inclusion in the cost
Tools and 1. Analytical techniques
baseline and establishes protocols for application of contingency and management reserves
techniques 2. Expert judgment – Timing: defines when and how often risk management processes will be performed and
3. Meetings establishes protocols for application of schedule contingency reserves
Outputs 1. Risk management plan – Risk categories (sources of risks): provide a means for grouping potential caused of risks.
A risk breakdown structure (RBS) may classify risks, such as:
• External, internal, technical, unforeseeable
• Customer, project management, suppliers, resistance to change, cultural differences
• Schedule, cost, quality, scope, resources, stakeholder satisfaction
– Definitions of risk probability and impact: for example
– Probability and impact matrix: is a grid for mapping the probability of each risk occurrence
and its impact on project objectives if that risk occurs
– Revised stakeholders’ tolerances
– Reporting formats: reporting formats define how the outcomes of the risk management
process will be documented, analyzed, and communicated. It describes the content and
format of the risk register as well as any other risk reports required.
– Tracking: tracking documents how risk activities will be recorded for the benefit of the current
project and how risk management processes will be audited.
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Inputs 1. Risk management plan The process of determining which risks may affect the project and
2. Cost management plan documenting their characteristics
3. Schedule management plan
4. Quality management plan –Identify risks is an iterative process, because new risks evolve or
5. HR management plan become known as the project progresses through its life cycle. The
6. Scope baseline frequency of iteration and participation in each cycle will vary by situation
7. Activity cost estimates
8. Activity duration estimates –The format of the risk statements should be consistent to ensure that
9. Stakeholder register each risk is understood clearly and unambiguously in order to support
10. Project documents
effective analysis and response development. The risk statement should
support the ability to compare the relative effect of one risk against others
11. Procurement documents
on the project
13. Organizational process assets
–This process should involve the project team so they can develop and
Tools and 1. Documentation reviews maintain a sense of ownership and responsibility for the risks and
techniques 2. Information gathering techniques associated risk response actions. Stakeholders outside the project team
3. Checklist analysis may provide additional objective information. Therefore everyone should
4. Assumptions analysis
be involved in risk identification.
5. Diagramming techniques
6. SWOT analysis
7. Expert judgment
Outputs 1. Risk register

©Atoha JSC 245
Inputs 1. Risk management plan

• Inputs
2. Cost management plan
– Project documents: project charter, project schedule, schedule
4. Quality management plan
network diagrams, issue log, quality checklist, etc.
5. HR management plan – Enterprise environmental factors:
6. Scope baseline • Published information, including commercial database
7. Activity cost estimates • Academic studies
8. Activity duration estimates
• Published checklists
• Benchmarking
10. Project documents
• Industry studies
11. Procurement documents
• Risk attitudes
13. Organizational process assets – Organizational process assets:
Tools and 1. Documentation reviews • Project files, including actual data
techniques 2. Information gathering techniques • Organizational and project process controls
3. Checklist analysis • Risk statement formats or templates
4. Assumptions analysis • Lessons learned
6. SWOT analysis
7. Expert judgment

©Atoha JSC 246
Inputs 1. Risk management plan • Tools and techniques:

– Documentation reviews: structured review of the project
documentation, such as plans, requirements, documents,
assumptions, previous project files, etc.
5. HR management plan
– Information gathering techniques
6. Scope baseline
• Brainstorming
• Delphi technique: is used to achieve consensus among experts who
participate anonymously. A request for information is sent to the experts,
9. Stakeholder register their responses are compiled, and the results are sent back to them for
10. Project documents further review until consensus is reached.
11. Procurement documents • Interviewing
12. Enterprise environmental factors • Root cause analysis: used to identify a problem, discover the underlying
13. Organizational process assets causes that lead to it, and develop preventive action
Tools and 1. Documentation reviews – Diagramming techniques: include
techniques 2. Information gathering techniques • Cause and effect diagrams (Ishikawa or fishbone diagrams): to find
3. Checklist analysis the root cause of a risk
4. Assumptions analysis • System or process flowcharts: show how various elements of a system
interrelate and the mechanism of causation
6. SWOT analysis
• Influence diagrams: these are graphical representations of situations
showing causal influences, time ordering of events, and other
7. Expert judgment
relationships among variables and outcomes
©Atoha JSC 247

• Tools and techniques:
– SWOT analysis: helps to examine the project’s strengths,
weaknesses, opportunities, and threats
5. HR management plan – Expert judgment: the experts’ bias should be taken into account in
6. Scope baseline this process
• Outputs: Risk register
10. Project documents – List of identified risks:
11. Procurement documents • Detailed and structured (e.g., "As a result of {trigger}, the
12. Enterprise environmental factors following {uncertain event – risk} may occur, which would give
rise to {effect} on objective.”)
Tools and 1. Documentation reviews
• Include their root causes
techniques 2. Information gathering techniques
3. Checklist analysis
• Trigger: the event, incident or circumstances which lead to the
4. Assumptions analysis
risk occurring, that is the cause of the risk.
5. Diagramming techniques – List of potential risk responses: should be used as inputs to the
6. SWOT analysis Plan Risk Responses process
7. Expert judgment

©Atoha JSC 248
11.3. Perform Qualitative Risk Analysis
The process of prioritizing risks for further analysis or action by
2. Scope baseline
assessing and combining their probability of occurrence and impact.
3. Risk register
This process can lead into Perform Quantitative Risk Analysis or
directly into Plan Risk Responses
Tools and 1. Risk probability and impact

techniques assessment • Inputs:
2. Probability and impact matrix –Enterprise environmental factors: industry studies of similar projects
3. Risk data quality assessment and industry risk databases
4. Risk categorization
–Organizational process assets: information on previous, similar
5. Risk urgency assessment
6. Expert judgment
completed projects
Outputs 1. Project documents updates
©Atoha JSC 249

– Risk probability and impact assessment:
2. Scope baseline
• Risk probability assessment à likelihood that each risk will occur.
3. Risk register
• Risk impact assessment à potential effect on a project objective.
5. Organizational process assets • Probability and impact are assessed for each identified risk by
interviewing and meeting
Tools and 1. Risk probability and impact
techniques assessment
• Probabilities and impacts are rated according to the definitions given in
the risk management plan. Risks with low ratings of probability and
2. Probability and impact matrix
impact will be included within the risk register as part of the watch list
3. Risk data quality assessment
(non-critical) for future monitoring
– Probability and impact matrix
6. Expert judgment • Risk score (RS) = Probability (P) * Impact (I). The entire list of risks can
be prioritized, or sorted, based on the risk score that lead to rating the
risks as low, moderate, or high priority.
©Atoha JSC 250

2. Scope baseline
3. Risk register
– Risk data quality assessment: include determining the following for
each risk:
5. Organizational process assets • Extent of the understanding of the risk
Tools and 1. Risk probability and impact • Data available about the risk
techniques assessment • Accuracy and quality of the data
2. Probability and impact matrix • Reliability and integrity of the data
3. Risk data quality assessment – Risk categorization: helps create effective risk response plans.
Risks can be categorized by:
• Source of risk – use RBS
6. Expert judgment
• Area of project affected – use WBS
• Phase affected
• Common root causes
– Risk urgency assessment
• Risks requiring near-term responses may be considered more urgent to
address. Indicators of priority may include time to effect a risk response
plan, symptoms, warning signs, and risk rating
• Use urgency factor to determine RS: Risk score (RS) = Probability (P) *
Impact (I) * Urgency (U)
©Atoha JSC 251
• Outputs: Project documents updates:
2. Scope baseline
3. Risk register
– Risk register updates
4. Enterprise environmental factors • List of prioritized risks and their probability and impact ratings
5. Organizational process assets • Risk ranking or scores
Tools and 1. Risk probability and impact • Risks grouped by categories
techniques assessment • List of risks requiring additional analysis in the near term (risk urgency
2. Probability and impact matrix information)
3. Risk data quality assessment • List of risks for additional analysis and response
4. Risk categorization • Watch list of low-priority risks
5. Risk urgency assessment • Trends in qualitative risk analysis results
6. Expert judgment
– Assumptions log updates: the assumptions log needs to be revised
to accommodate for any change and may be incorporated into the
project scope statement or in a separate assumptions log
©Atoha JSC 252

11.4. Perform Quantitative Risk Analysis
• The process of numerically analyzing the effect of identified risks on
overall project objectives
4. Risk register
5. •
Enterprise environmental factors This process is performed on risks that have been prioritized by the
6. Organizational process assets Perform Qualitative Risk Analysis
Tools and 1. Data gathering and
techniques representation techniques • Inputs:
2. Quantitative risk analysis and
– Enterprise environmental factors: industry studies of similar
modeling techniques
projects and industry risk databases
3. Expert judgment

– Organizational process assets: information on previous, similar
completed projects
©Atoha JSC 253

– Data gathering and representation techniques
4. Risk register • Interviewing: draw on experience and historical data to quantify
5. Enterprise environmental factors the probability and impact of risk on project objectives. For
6. Organizational process assets instance, information would be gathered on the optimistic,
pessimistic, and most likely scenarios for some commonly used
techniques representation techniques distributions.
2. Quantitative risk analysis and • Probability distributions:
modeling techniques
– Continuous probability distributions, which are used
3. Expert judgment
extensively in modeling and simulation. E.g. Beta
Outputs 1. Project documents updates distribution and Triangular distribution
– Discrete distributions can be used to represent
uncertain events
– Uniform distributions can be used if there is no obvious
value that is more likely than any other between specified
high and low bounds, such as in the early concept stage of
design
©Atoha JSC 254

Inputs 1. Risk management plan • Tools and techniques:
– Quantitative risk analysis and modeling techniques:
• Sensitivity analysis: helps to determine which risks have the most
4. Risk register
potential impact on the project. It examines the extent to which the
uncertainty of each project element affects the objective being studied
6. Organizational process assets when all other uncertain elements are held at their baseline values. One
Tools and 1. Data gathering and typical display is the Tornado diagram
techniques representation techniques
modeling techniques
3. Expert judgment
• Expected monetary value (EMV) analysis

– A statistical technique that calculates the average outcome when
the future includes scenarios that may or may not happen. A
common use of this technique is within decision tree analysis.
– EMV = Probability * Outcome
– EMV requires risk-neutral assumption – neither risk averse nor
risk seeking
• Modeling and simulation (cont.)
©Atoha JSC 255
– Quantitative risk analysis and modeling techniques:
4. Risk register • Modeling and simulation (cont.)
5. Enterprise environmental factors – Use a model that translates the specified detailed uncertainties of
6. Organizational process assets the project into their potential impact on project objectives.
Simulations are typically performed using the Monte Carlo
technique
– The project model is computed many times (iterated), with the
input values (e.g., cost estimates or activity durations) chosen at
modeling techniques
random for each iteration from the probability distributions of these
3. Expert judgment variables
Outputs 1. Project documents updates – Figure below illustrates the respective probability of achieving
specific cost targets
©Atoha JSC 256

• Outputs:
– Project documents updates: risk register updates include:
4. Risk register • Probabilistic analysis of the project
5. Enterprise environmental factors • Probability of achieving cost and time objectives
• Prioritized list of quantified risks
• Trends in quantitative risk analysis results
• Initial amount of contingency time and cost reserves needed
modeling techniques
3. Expert judgment
©Atoha JSC 257


• The process of developing options and actions to enhance
2. Risk register
opportunities and to reduce threats to project objectives
Tools and 1. Strategies for negative risks or
techniques threats
2.
•
Strategies for positive risks or
Inputs:
opportunities – Risk management plan
3. Contingent response strategies • Roles and responsibility
4. Expert judgment
• Risk analysis definition
Outputs 1. Project management plan • Timing for reviews and for eliminating risks from review
updates
• Risk thresholds for low, moderate, and high risks
2. Project documents updates
– Risk register: refers to identified risks, root causes of risks, lists of
potential responses, risk owners, symptoms and warning signs, the
relative rating or priority list of project risks, risks requiring responses
in the near term, risks for additional analysis and response, trends in
qualitative analysis results, and a watch list.
©Atoha JSC 258


2. Risk register
– Strategies for negative risks or threats
• Avoid: eliminate the threat or protect the project from its impact. E.g.,
techniques threats
change the PM plan (extending the schedule, reducing scope, etc.),
2. Strategies for positive risks or isolate the project objectives from the risk’s impact or change the
opportunities objective
3. Contingent response strategies
• Transfer: shift the impact of a threat to a third party, together with
4. Expert judgment ownership of the response. This does not eliminate risk and involves
Outputs 1. Project management plan
paying a fee. E.g., insurance, warranties, guarantees, contracts,
updates
agreements, etc.
2. Project documents updates • Mitigate: reduce the probability of occurrence or impact of a risk. It
implies a reduction in the probability and/or impact of an adverse risk to
be within acceptable threshold limits. E.g., adopting less complex
processes, conducting more tests, choosing a more stable supplier, or
designing redundancy into a system, etc.
• Accept: acknowledge the risk and not take any action unless the risk
occurs:
– Passive acceptance: deal with risks as they occur
– Active acceptance: establish contingency reserves, including
amounts of time, cost, or resources to deal with risks
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2. Risk register
– Strategies for positive risks or opportunities
Tools and 1. Strategies for negative risks or • Exploit: seek to eliminate the uncertainty associated with a particular
techniques threats upside risk by ensuring the opportunity definitely happens. E.g., using
2. Strategies for positive risks or more skilled resources on a project to reduce the time to completion,
opportunities using new technologies to reduce duration required to realize project
3. Contingent response strategies objectives
4. Expert judgment • Enhance: increase the probability and/or the positive impacts of an
opportunity. E.g., adding more resources to an activity to finish early
updates
• Share: allocate some or all of the ownership of the opportunity to a third
party who is best able to capture the opportunity for the benefit of the
project. E.g., joint ventures, forming risk-sharing partnership
• Accept: Accepting an opportunity is being willing to take advantage of
the opportunity if it arises, but not actively pursuing it.
– Contingency response strategies
• Some responses are designed for use only if certain events occur
• Define and track triggers (trigger is an event or situation that indicates
that a risk is about to occur)
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Inputs 1. Risk management plan • Outputs:

2. Risk register – Project documents updates:
• Risk register updates
– Risk owners and assigned responsibilities
techniques threats
– Agreed-upon response strategies
2. Strategies for positive risks or
– Specific actions to implement the chosen response strategy
opportunities
– Trigger conditions, symptoms, and warning signs of a risk
3. Contingent response strategies occurrence
4. Expert judgment – Budget and schedule activities required to implement the chosen
responses
– Contingency plans and triggers that call for their execution
updates – Fallback plans for use as a reaction to a risk that has occurred
2. Project documents updates and the primary response proves to be inadequate
– Residual risks that are expected to remain after planned
responses have been taken, as well as those that have been
deliberately accepted
– Secondary risks that arise as a direct outcome of implementing a
risk response
– Contingency reserves that are calculated based on the
quantitative risk analysis of the project and the organization’s risk
thresholds.
• Assumptions log updates
• Technical documentation updates
• Change requests
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Class Activity
• Evaluate your organization’s ability to manage risk
• What can you do to improve the way you manage
the risk of projects
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11.6. Control Risks

• The process of implementing risk response plans, tracking identified
2. Risk register
risks, monitoring residual risks, identifying new risks, and evaluating
3. Work performance data
risk process effectiveness throughout the project. It improves
4. Work performance reports
efficiency of the risk approach throughout the project life cycle to
Tools and 1. Risk reassessment continuously optimize risk responses
techniques 2. Risk audits
3. Variance and trend analysis
4. Technical performance • Control Risks process can determine if project assumptions are still valid,
measurement risk management policies are being followed, and contingency reserves for
5. Reserve analysis cost and schedule should be modified in alignment with the current risk
6. Meetings assessment, etc.
Outputs 1. Work performance information
2. Change requests
3. Project management plan
updates
updates
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11.6. Control Risks

• Inputs:
2. Risk register
– Work performance data:
4. Work performance reports • Deliverable status
Tools and 1. Risk reassessment • Schedule progress
techniques 2. Risk audits • Costs incurred
– Work performance reports: provide specific data on project work
4. Technical performance
performance
measurement
5. Reserve analysis
• Variance analysis
6. Meetings • Earned value data
Outputs 1. Work performance information • Forecasting data
2. Change requests
updates
updates
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11.6. Control Risks
Inputs 1. Project management plan • Tools and techniques:

2. Risk register – Risk reassessment: risk reassessment need to be regularly scheduled
3. Work performance data throughout the project to:
• Identify new risks
• Reassess current risks
Tools and 1. Risk reassessment • Close outdated risks
techniques 2. Risk audits – Risk audits: throughout the project life cycle, risk audits should be performed
3. Variance and trend analysis to review the effectiveness of risk response plans and risk management
4. Technical performance
processes
– Variance and trend analysis: compares the planned results to the actual
measurement
results. Deviation from the baseline plan may indicate the potential impact of
5. Reserve analysis threats or opportunities
6. Meetings – Technical performance measurement:
• Compares technical accomplishments during execution to the schedule of
technical achievements. Technical performance measures may include
2. Change requests weight, transaction times, number of delivered defects, storage capacity,
3. Project management plan etc.
updates • Deviations from the planned technical achievements at a milestone may
imply a risk exist and can help to forecast the degree of success in
achieving the project’ scope
– Reserve analysis: compares the remaining contingency reserves with the
updates remaining risk to determine if the remaining reserves are adequate
– Meetings: frequent discussions about risk make it more likely that people will
identify risks and opportunities
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11.6. Control Risks

• Outputs:
2. Risk register
– Work performance information: provides a mechanism to communicate and
support project decision making
– Change requests:
Tools and 1. Risk reassessment • Request for changes may be necessary to implement contingency plans
techniques 2. Risk audits or workarounds
• Workaround: is a response to a threat that has occurred, for which a prior
4. Technical performance response had not been planned or was not effective
measurement
– Project documents updates: risk register updates
5. Reserve analysis
• Results of risk reassessments, risk audits, and periodic risk reviews
6. Meetings
• Actual outcomes of project risks and of the risk responses
2. Change requests
• Templates for risk management plan
updates • Risk categories and/or the risk breakdown structure and risk checklists
4. Project documents updates • Lessons learned
updates
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PROJECT PROCUREMENTS
MANAGEMENT

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Introduction
Project Procurement Management includes:

• The processes to purchase or acquire the products, services, or results needed from outside
the project team to perform the work
• The contract management and change control processes required to develop and administer
contracts or purchase orders issued by authorized project team members.
• Controlling any contract issued by an outside organization (the buyer) that is acquiring
deliverables from the project from the performing organization (the seller), and administering
contractual obligations placed on the project team by the contract.
Monitoring &
Controlling
Procurement
Plan Procurement Conduct Control Close
Management
Management Procurement Procurement Procurement
Processes
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TERMS
• Contract: a contract is a mutually binding agreement which obligates the seller to provide the specified products,
services or results and obligates the buyer to provide monetary or other valuable compensation
– Mutual business agreement
– Recognized by law
– One party provides the service
– The other party pays for service
• Type of contracts:
– In a centralized contracting: the procurement manager is involved with many projects at the same time and
reports to the head of procurement department, not to the project manager.
– In a decentralized contracting: the procurement manager is assigned to one project full-time and reports
directly to the project manager
• Project manager’s role in procurement:

– Involve in the procurement process to make sure contract contains all the scope of work and all project needs
– Identify risks, and incorporate mitigation and allocation of risks into the contract to decrease project risk
– Be involved during contract negotiations to protect the relationship with the seller.
– Work with procurement manager to manage changes to the contract
If no point of view is mentioned, assume you are the buyer and the seller remains external to the project team.
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12.1. Plan Procurement
Inputs - Project management plan • The process of documenting project purchasing decisions, specifying the
- Requirements documentation approach, and identifying potential sellers. It determines whether to acquire
- Risk register outside support, and if so, what to acquire, how to acquire it, how much is
- Activity resource requirements needed, and when to acquire it
- Project schedule
• Inputs
– Project management plan: scope baseline
– Requirements documentation: requirements with special contractual and
factors
legal implications, which may involve health, safety, security, environmental
- Organizational process assets impact, licenses, and permits, etc.
Tools and - Make-or-buy analysis – Risk register: results of risk analysis and risk response planning
techniques - Expert judgment – Project schedule: required timelines or mandated deliverables dates
- Market research
– Activity cost estimate: used to evaluate the reasonableness of the bids
- Meetings received from potential sellers
Outputs - Procurement management – Enterprise environmental factors: marketplace conditions, unique local
plan requirements, suppliers, etc.
- Procurement statement of work – Organizational process assets:
- Procurement documents • Templates, policies, procedures, and guidelines
- Source selection criteria • An established multi-tier supplier system of prequalified sellers based on
- Make-or-buy decisions prior experience
- Change requests

270
Contract types:
1. Fixed-price or lump-sum
• Firm Fixed Price (FFP)
• Fixed Price Incentive Fee (FPIF)

• Fixed Price with Economic Price
Adjustment (FPEPA)
2. Cost-reimbursable
• Cost Plus Fixed Fee (CPFF)
• Cost Plus Incentive Fee (CPIF)
• Cost Plus Award Fee (CPAF)
• Cost Plus Percentage of Costs (CPPC)
3. Time and Material (T&M)
- Requirements documentation • Contract types: there are 3 contract types:
- Risk register 1. Fixed-price or lump-sum: involves setting a fixed total price for a defined
- Activity resource requirements product, service, or result to be provided. Fixed-price contracts may also
- Project schedule
incorporate financial incentives for achieving or exceeding selected project
objectives, such as schedule delivery dates, cost and technical performance, or
anything that can be quantified and subsequently measured. Sellers under
- Stakeholder register fixed-price contracts are legally obligated to complete such contracts, with
- Enterprise environmental possible financial damages if they do not. Under the fixed-price arrangement,
factors buyers need to precisely specify the product or services being procured.
Changes in scope may be accommodated, but generally with an increase in
contract price.
Tools and - Make-or-buy analysis
• Firm Fixed Price (FFP): the most commonly used contract type is the
FFP. It is favored by most buying organizations because the price of
- Market research goods is set at the outset and not subject to change unless the scope of
- Meetings work changes
Outputs - Procurement management • Fixed Price Incentive Fee (FPIF): financial incentives can be adjusted
plan based on the seller meeting specified performance criteria such as
- Procurement statement of work getting the work done faster, cheaper, or better. Under FPIF contracts, a
price ceiling is set, and all costs above the price ceiling are the
- Procurement documents
responsibility of the seller, who is obligated to complete the work.
- Source selection criteria
• Fixed Price with Economic Price Adjustment (FPEPA): provision for
- Make-or-buy decisions
adjustment because of changed conditions such as inflation changes, or
- Change requests cost of labor/materials changes in long duration contract
271
Contract types:

Adjustment (FPEPA)
• Contract types: there are 3 contract types:
- Risk register
2. Cost-reimbursable: involves payments (cost reimbursements) to the seller for all legitimate
- Activity resource requirements actual costs incurred for completed work, plus a fee representing seller profit.
- Project schedule • Cost Plus Fixed Fee (CPFF): The seller is reimbursed for all allowable costs for
- Activity cost estimates performing the contract work, and receives a fixed-fee payment calculated as a
percentage of the initial estimated project costs. A fee is paid only for completed work
and does not change due to seller performance. Fee amounts do not change unless
the project scope changes.
factors • Cost Plus Incentive Fee (CPIF): The seller is reimbursed for all allowable costs for
- Organizational process assets performing the contract work and receives a predetermined incentive fee based upon
Tools and - Make-or-buy analysis achieving certain performance objectives as set forth in the contract. In CPIF
contracts, if the final costs are less or greater than the original estimated costs, then
both the buyer and seller share costs from the departures based upon a
- Market research prenegotiated cost-sharing formula, for example, an 60/40 split over/under target
- Meetings costs based on the actual performance of the seller
Outputs - Procurement management • Cost Plus Award Fee (CPAF): The seller is reimbursed for all legitimate costs, but
plan the majority of the fee is earned only based on the satisfaction of certain broad
subjective performance criteria defined and incorporated into the contract. The
- Procurement statement of work
determination of fee is based solely on the subjective determination of seller
- Procurement documents performance by the buyer, and is generally not subject to appeals.
- Source selection criteria • Cost Plus Percentage of Costs (CPPC): a CPPC contract requires the buyer to pay
- Make-or-buy decisions for all costs plus a percentage of costs as a fee. This type of cost-reimbursable
- Change requests contract is bad for buyers everywhere

272
Contract types:

Adjustment (FPEPA)
• Contract types: there are 3 contract types:
- Risk register
3. Time and Material (T&M): Time and material contracts are a hybrid type of
contractual arrangement that contain aspects of both cost-reimbursable and
- Project schedule
fixed-price contracts. They are often used for staff augmentation, acquisition of
experts, and any outside support when a precise statement of work cannot be
- Stakeholder register quickly prescribed
factors
- Market research
- Meetings
Outputs - Procurement management
plan
- Change requests

273
Contract types:

Adjustment (FPEPA)
• Risks and Contract types:
- Risk register
- Project schedule
factors
- Market research
- Meetings
plan
- Change requests

274
Contract types:

Adjustment (FPEPA)
• Incentive contracts: Sellers are usually focused on the profits to be made
- Risk register
on a project. The buyer may be focused on total cost, performance,
schedule, or a combination of these concerns. Incentives are used to bring
- Project schedule
the seller’s objectives in line with the buyer’s. The buyer will provide an
additional fee if the seller meets some cost, performance, or schedule
objectives.
factors – Sharing ratio: buyer/ seller
- Organizational process assets – Applied for both FPIF and CPIF contracts
- Market research
- Meetings
plan
- Change requests

275
Contract types:

Adjustment (FPEPA)
• Terms and Incentive calculation
– Price: This is the amount the seller charges the buyer
– Profit (fee): This is planned into the price the seller provides the buyer. Sellers usually have an acceptable profit margin in mind.
However, how much profit they actually receive is based on many factors, including the contract terms and the seller’s ability to manage
the project
– Cost: This is how much an item costs the seller to create, develop, or purchase. A buyer’s costs can include a seller’s costs and profits
– Target price: This term is often used to compare the end result (final price) with what was expected (the target price). Target price is a
measure of success. Watch for similar terms. Target cost plus target fee equals target price. (Remember, we are thinking about
procurements from the buyer’s point of view!)
– Sharing ratio: Incentives are usually expressed as a ratio, e.g., 70/30 (buyer/seller). This sharing ratio describes how the cost savings or
cost overrun will be shared
– Ceiling price: This is the highest price the buyer will pay; it’s a way for the buyer to encourage the seller to control costs. The ceiling
price is a condition of the contract that must be agreed to by both parties before signing.
– Point of total assumption (PTA): This only relates to fixed price incentive fee contracts and refers to the amount above which the seller
bears all the loss of a cost overrun. Costs that go above the PTA are assumed to be due to mismanagement. Sellers will sometimes
monitor their actual costs against the PTA to make sure they are still receiving a profit for completing the project.
Underrun or overrun = Target cost - Actual cost

Incentive fee = (Underrun or overrun) x Seller’s share ratio
Fee (Profit) = Target fee + Incentive fee. (For CPIF, compare Fee to any Floor or Ceiling Fee)
Final Price = Actual Cost + Fee. (For FPIF, compare Final Price to Celling Price)
PTA = (Ceiling price – Target price) /Buyer’s share ratio + Target cost
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– Make or buy analysis: evaluates which particular work should be completed
- Risk register
by the project team or purchased from outside the organization:
• Review direct and indirect costs, schedule, project staffing, company
- Project schedule
policy
• Consider contract types and terms in relation to risk sharing strategy
– Expert judgment
factors – Market research
- Organizational process assets – Meetings
- Market research
- Meetings
plan
- Change requests

277
- Requirements documentation – Procurement management plan: how the procurement processes will be
- Risk register managed from developing procurement documents through contract closure.
Can include guidance for:
• Contract types to be used
- Project schedule
• Risk management issues
• Standard procurement documents
- Stakeholder register • Managing multiple contractors
- Enterprise environmental • Constraints and assumptions
factors • Identifying prequalified sellers
- Organizational process assets • Procurement metrics to be used to manage contracts and evaluate
Tools and - Make-or-buy analysis sellers
techniques - Expert judgment – Procurement statement of works (SOW): is developed from the project scope
baseline and defines only that portion of the project scope that is to be included
- Market research within the related contract. The procurement SOW describes the procurement
- Meetings item in sufficient detail to allow prospective sellers to determine if they are
Outputs - Procurement management capable of providing the products, services, or results. There are 3 types:
plan
• Performance: conveys what the final product should be able to
accomplish, rather than how it should be built or what its design
- Procurement statement of work characteristics should be. E.g., A car that go from 0 to 120 km/hour in 4s
- Procurement documents • Functional: conveys the end purpose or result rather than specific
- Source selection criteria procedures. E.g. I want a car with 20 cup holders
- Make-or-buy decisions • Design: conveys precisely what work is to be done, build it exactly as
shown on the drawings
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278
• Outputs
– Procurement documents (bid documents)
- Risk register
• Terms such as bid, tender, or quotation are generally used when the seller selection
- Activity resource requirements decision will be based on price (as when buying commercial or standard items)
- Project schedule • A term such as proposal is generally used when other considerations, such as
- Activity cost estimates technical capability or technical approach are paramount
- Stakeholder register • Common terms are in use for different types of procurement documents and may
- Enterprise environmental include request for information (RFI), request for proposal (RFP), invitation for bid
(IFB), request for quotation (RFQ), tender notice, invitation for negotiation, and
factors
invitation for seller’s initial response.
• Procurement documents include a description of the desired form of the response, the
Tools and - Make-or-buy analysis relevant procurement SOW and any required contractual provisions
techniques - Expert judgment – Source selection criteria: are included in the procurement documents to give
- Market research the seller an understanding of the buyer’s needs and to help the seller decide
- Meetings whether to bid or make a proposal on the work. Source selection criteria may
Outputs - Procurement management include:
plan • Understanding of need
- Procurement statement of work • Overall or life cycle cost
- Procurement documents • Technical ability
- Source selection criteria • Financial capability
- Make-or-buy decisions • Quality of past performance
- Change requests • Etc.

279
• Outputs
– Make-or-Buy decision: are conclusions of regarding what particular work will
- Risk register
be acquired from outside the project organization or will be performed internally
by project team
- Project schedule
• Requirements documentation
• Requirements traceability matrix
factors • Risk register
- Market research
- Meetings
plan
- Change requests

280
12.2. Conduct Procurement
Inputs - Procurement management
• The process of obtaining seller responses, selecting a seller, and awarding
plan
a contract
• Inputs
- Seller proposals
- Project documents
– Project documents: risk-related contract decisions included within the risk
register
- Procurement SOW
– Procurement SOW: provides suppliers with a clearly stated set of goals,
requirements, and outcomes from which they can provide a quantifiable
response. The statements of work may include, but are not limited to:
Tools and - Bidder conference
techniques - Proposal evaluation techniques
• Specifications
- Independent estimates • Quantity desired
- Expert judgment • Quality levels
- Advertising • Performance data
- Analytical techniques • Period of performance
- Procurement negotiations • Work location
Outputs - Selected sellers
• Other requirements
- Agreements
– Organizational process assets: lists of prospective and previously qualified
sellers and information on past experience with them
- Change requests
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281
Inputs - Procurement management
plan
– Bidder conferences: formal sessions during which the sellers can ask questions about the
- Procurement documents required work or other aspects of the request prior to submittal of a bid or proposal. They are
- Source selection criteria to ensure all prospective vendors have clear and the same understanding of the request
- Seller proposals – Proposal evaluation techniques
- Project documents • Screening system: eliminating sellers that do not meet minimum requirements of the
selection criteria
• Past performance history: look at the seller’s past experience with the buyer
- Procurement SOW
• Weighting system: this allows the buyer’s evaluation committee to select a seller by
weighting the source selection criteria
Tools and - Bidder conference
– Independent estimates: can serve as a benchmark on proposed responses. Significant
techniques - Proposal evaluation techniques differences in cost estimates can be an indication that the procurement SOW was deficient,
- Independent estimates ambiguous, and/or that the prospective sellers either misunderstood or failed to respond fully
- Expert judgment to the procurement SOW.
- Advertising
– Advertising: to expand potential sellers list
- Analytical techniques
– Analytical techniques
• Identify the readiness of a vendor to provide the good, service, etc.
- Procurement negotiations
• Determine the cost expected to support budgeting, and avoid cost overruns due to
Outputs - Selected sellers
changes
- Agreements
• Identify areas that may have more risk and need to be monitored closely
– Procurement negotiations
- Change requests • Obtain a fair and reasonable price
- Project management plan • Develop a good relationship with the seller
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282
Inputs - Procurement management • Outputs
plan
– Selected sellers
– Agreements
• Awarded to a selected seller and can also be called an understanding, a
- Seller proposals contract, a subcontract, or a purchase order
- Project documents • A contract is a mutually binding legal agreement that obligates the seller
- Make-or-buy decisions to provide the specified products, services, or results, and obligates the
- Procurement SOW buyer to compensate the seller. A contract is a legal relationship subject
- Organizational process assets to remedy in the courts
Tools and - Bidder conference – Resource calendars: the quantity and availability of contracted resources and
available dates for each resource are documented
techniques - Proposal evaluation techniques
- Independent estimates
– Change requests
- Expert judgment
– Project management plan updates
- Advertising
• Scope, schedule, and cost baseline
- Analytical techniques
• Communications and procurement management plan
- Procurement negotiations – Project documents updates
Outputs - Selected sellers • Requirements documentation
- Agreements • Requirements traceability documentation
- Resource calendars • Risk register
- Change requests • Stakeholder register
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283
12.3. Control Procurement
• The process of managing procurement relationships, monitoring contract
performance, and making changes and corrections to contracts as needed
- Agreements
• Reviews and documents how well a seller is performing or has performed
based on the contract and establishes corrective actions when needed
Tools and - Contract change control
techniques system • Control Procurements includes application of the appropriate project
- Procurement performance management processes to the contractual relationships and integration of
reviews the outputs from these processes into the overall management of the
- Inspections and audits project:
– Direct and Manage Project Work: to authorize the seller’s work at the
- Payment systems appropriate time
- Claims administration
– Control Quality: to inspect and verify the adequacy of the seller’s product
- Records management system
– Perform Integrated Change Control: to assure that changes are properly
approved and that all those with a need to know are aware of such changes
- Change requests
– Control Risks: to ensure that risks are mitigated
updates

• Inputs
- Agreements
– Procurement documents: includes procurement contract awards and the
SOW
– Agreements
Tools and - Contract change control – Approved change requests
techniques system • Can include modifications to the terms and conditions of the contract,
- Procurement performance including the procurement statement of work, pricing, and descriptions of
reviews the products, services, or results to be provided.
- Inspections and audits • All procurement-related changes are formally documented in writing and
- Performance reporting approved before being implemented through the Control Procurements
- Payment systems process.
- Claims administration – Work performance reports: technical documentation and work performance
- Records management system information
Outputs - Work performance information – Work performance data: includes
- Change requests • The extent to which quality standards are being satisfied
- Project management plan • The costs that have been incurred or committed
updates
• Identification of the seller invoices that have been paid

– Contract change control system
- Agreements
• Defines the process for changing a contract
- Work performance reports • An effective contract change control system specifies the required
documentation to request a change, person in charge to evaluate and
approve changes, dispute resolution procedures, and how changes are
tracked to ensure completion (if approved).
techniques system
- Procurement performance
• It is integrated with the Integrated Change Control System
reviews – Procurement performance reviews
- Inspections and audits • A structured review of the seller’s progress in meeting scope, quality,
- Performance reporting schedule, and cost as compared to the contract, and may occur as part of
- Payment systems project status reviews
- Claims administration • Can include review of seller reports, buyer inspections, and quality audits
- Records management system – Inspection and audits: to verify compliance in the seller’s work processes or
Outputs - Work performance information deliverables
- Change requests – Performance reporting: provides management with information about how
- Project management plan contract work is progressing
updates – Payment systems: payments to seller are usually handled by the buying
- Project documents updates accounts payable system after an authorized project member certifies that
satisfactory work has been performed
– Claims administration:
- Agreements • Contested changes (claims, disputes or appeals) and potential constructive changes
- Approved change requests are where the buyer and seller cannot reach an agreement
- Work performance reports • If the parties themselves cannot resolve a claim, it may have to be handled in
accordance with alternative dispute resolution (ADR) typically following procedures
- Work performance data established in the contract
Method Description
techniques system Discussion Many disputes can be considered in open and usually informal debate between the
- Procurement performance parties without going to a more formal process
reviews Negotiation Many disputes are relatively minor and are settled by negotiation or compromise
- Inspections and audits
Mediation Most disputes are settled out of court. Mediation uses a third party (mediator) to help
settle a case. The mediator typically meets with each party separately and makes
recommendations to reach a compromise. Mediator cannot impose a settlement and are
- Payment systems often used in labor and consumer disputes
- Claims administration Arbitration When the parties are unable to come to agreement on a dispute but do not want to
- Records management system spend the time or money on litigation, arbitration may be appropriate. Arbitration uses a
Outputs - Work performance information third party (arbitrator) and is similar to a court trial with evidence and arguments. The
decision may be binding or non-binding on the parties, and ground s for appeal are
- Change requests
limited
Litigation The least desirable option
updates
– Records management system: it consists of a specific set of processes, related
control functions, and automation tools that are consolidated and combined as part of the
PMIS. The system contains a retrievable archive of contract documents and correspondence
• Outputs
– Work performance information
- Agreements
• Provides a basic for identification of current or potential problems to
support later claims or new procurements, etc.
• Includes reporting compliance of contracts to improve communications
with vendors so that potential issues are addressed promptly to the
satisfaction of all parties
techniques system
- Procurement performance
– Project management plan updates
reviews • Procurement management plan
- Inspections and audits • Schedule and cost baseline
- Performance reporting – Project documents updates: procurement documentation
- Payment systems – Organizational process assets updates
- Claims administration • Correspondence includes a complete record of written communication
- Records management system between the buyer and seller
• Payment schedules and requests
- Change requests
• Seller performance evaluation documentation
updates

12.4. Close Procurement
• The process of completing each procurement
Tools and - Procurement audits • The Close Procurements process also involves administrative
techniques - Procurement negotiations activities such as finalizing open claims, updating records to reflect
- Records management system final results, and archiving such information for future use.
Outputs - Closed procurements

• Unresolved claims may be subject to litigation after closure
updates
• Early termination of a contract is a special case of procurement
closure that can result from a mutual agreement by both parties, from
the default of one party, or for convenience of the buyer if provided for
in the contract. The rights and responsibilities of the parties in the
event of an early termination are contained in the terminations clause
of the contract
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12.4. Close Procurement
Inputs - Project management plan • Inputs
- Procurement documents – Project management plan: procurement management plan
Tools and - Procurement audits • Tools and techniques

techniques - Procurement negotiations – Procurement audits: are structured reviews of the procurement
- Records management system process originating from the Plan Procurement Management
process through Control Procurements to identify successes and
failures that should be documented as lessons learned for current
Outputs - Closed procurements project or other project in the future
- Organizational process assets – Procurement negotiation: the final equitable settlement of all
updates outstanding issues, claims, and disputes by negotiation is a primary
goal. Whenever settlement cannot be achieved through negotiation,
mediation or arbitration may be used. When all else fails, litigation in
the courts is the least desirable option.
• Outputs
– Closed procurements: the buyer provides the seller with formal
written notice that the contract has been completed
• Procurement files
• Deliverable acceptance
• Lessons learned documentation
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TERMS
• Non-disclosure agreement: this is an agreement between the buyer and prospective sellers identifying
the information or documents they will hold confidential and control, and who in the organization will gain
access to the confidential information.
• Letter of intent: is a letter, without legal binding, that says the buyer intends to hire the seller
• Privity: A hire B, B hire C à A & C have no contractual relationship
• Non-competitive procurements
– Single source: contract directly with preferred seller without going through the full procurement
process
– Sole source: there is only one seller, this might be a company that owns a patent
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END.
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PROJECT STAKEHOLDER
MANAGEMENT

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Introduction
Project Stakeholder Management includes the processes required to identify the people, group, or
organizations that could impact or be impacted by project, to analyze stakeholder expectations and their impact
on project, and to develop appropriate management strategies for effectively engaging stakeholders in project
decisions and execution. Stakeholder management also focuses on continuous communication with
stakeholders to understand their needs and expectations, addressing issue as they occur, managing conflicting
interests and fostering appropriate stakeholder engagement in project decisions and activities. Stakeholder
satisfaction should be managed as a key project objective.
Monitoring &
Controlling
Stakeholder Manage Control
Identify Plan Stakeholder
Management Stakeholder Stakeholder
Stakeholder Management
Processes Engagement Engagement
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13.1. Identify Stakeholders
• The process of identifying all people, groups, or organizations that could
impact or be impacted by a decision, activity, or outcome of the project,
analyzing and documenting relevant information regarding their interests
factors
(concern), influence (involvement), interdependences, and potential
impact on project success. The key benefit of this process is that it
Tools and - Stakeholder analysis
allows the project manager to identify the appropriate focus for each
stakeholder or group of stakeholder
- Meetings
• Inputs
Outputs - Stakeholder register – Procurement documents: any party listed in contracts are generally
considered to be stakeholders
• Government or industry standards
• Templates of stakeholder register
• Lessons learned from previous projects
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– Stakeholders analysis: generally follows below steps:
• Step 1: Identify all potential stakeholders and relevant information such as their roles,
factors departments, interests, knowledge, expectations, and influence levels
- Organizational process assets • Step 2: Analyze the potential impact or support each stakeholder could generate, and
classify them so as to define an approach strategy
Tools and - Stakeholder analysis • Step 3: Assess how key stakeholders are likely to react or respond in various
situations in order to plan how to influence them to enhance their support and mitigate
potential negative impacts
- Meetings
•
Outputs - Stakeholder register • Multiple classification models used for stakeholder analysis, such as:
• Power/interest grid: grouping the stakeholders based on their level of authority
(“power”) and their level of concern (“interest”) regarding the project outcomes (see
example power/interest grid)
• Power/influence grid: grouping the stakeholders based on their level of authority
(“power”) and their active involvement (“influence”) in the project
• Influence/impact grid: grouping the stakeholders based on their active involvement
(“influence”) in the project and their ability to effect changes to the project’s planning
or execution (“impact”)
• Salience model: describing classes of stakeholders based on their power (ability to
impose their will), urgency (need for immediate attention), and legitimacy (their
involvement is appropriate)
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Class Activity
• Identify your stakeholders in your project
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• Outputs
- Enterprise environmental – Stakeholder register: contains information of the
factors identified stakeholders:
• Identification information: name, title, role in the
Tools and - Stakeholder analysis
project, location, and contact information
techniques - Expert judgment • Assessment information: major requirements,
- Meetings main expectations, potential influence
Outputs - Stakeholder register
• Stakeholder classification: internal/external,
supporter/neutral/resistor, etc.
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• The process of developing appropriate management
strategies to effectively engage stakeholders throughout the
factors project life cycle, based on the analysis of their needs,
- Organizational process assets interests, and potential impact on project success

techniques - Meetings • It provides a clear, actionable plan to interact with project
- Analytical techniques stakeholders to support the project’s interest
Outputs - Stakeholder management plan
- Project documents updates • Stakeholder management is about creation and maintenance
of relationships between the project team and stakeholders,
with the aim to satisfy their respective needs and
requirements within project boundaries
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– Analytical techniques: the current engagement level of all stakeholders needs
to be compared to the planned engagement levels required for successful
factors
project completion. There are 5 engagement levels:
• Unaware: unaware of project and potential impacts
• Resistant: aware of project and potential impacts and resistant to change
• Neutral: aware of project yet neither supportive nor resistant
- Analytical techniques • Supportive: aware of project and potential impacts and supportive to
change
Outputs - Stakeholder management plan • Leading: aware of project, potential impacts and actively engaged in
ensuring a successful project
The gaps between the current engagement (C) and desired engagement (D) can be
fulfilled by further communications and additional actions.
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• Outputs
– Stakeholder management plan: identifies the management strategies
required to effectively engage stakeholders. It can be formal or informal, highly
factors
detailed or broadly framed, based on the needs of the project. Often, includes:
• Current and desired engagement levels of key stakeholders
• Scope and impact of change to stakeholders
• Identified interrelationships and potential overlap between stakeholders
- Analytical techniques • Stakeholder communication requirements for current project
• Information to be distributed to stakeholders, including language, format,
Outputs - Stakeholder management plan content, level of detail
- Project documents updates • Reason for the distribution of that information and expected impact to
stakeholder engagement
• Time frame and frequency for distribution of required information to
stakeholders
• Method for updating and refining the stakeholder management plan as
the project progresses and develops
• Project schedule
• Stakeholder register
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13.3. Manage Stakeholder Engagement
Inputs - Stakeholder management plan
• The process of communicating and working with stakeholders to meet
- Communications management
their needs and expectations, address issues as they occur, and foster
plan
appropriate stakeholder engagement in project activities throughout the
- Change log
project life cycle. It helps to increase the probability of project success by
ensuring that stakeholders clearly understand the project goals, objectives,
Tools and - Communication methods
benefits, and risks.
techniques - Interpersonal skills
- Management skills • The key benefit of this process is that it allows the project manager to
increase support and minimize resistance from stakeholders, significantly
Outputs - Issue log increasing the chances to achieve project success
- Change requests
updates
updates
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Inputs - •
Stakeholder management plan Inputs
– Change log
plan • A change log is a project document where all changes are recorded
- Change log • These changes and their impact on the project in terms of time, cost, and risk, must
- Organizational process assets be communicated to the appropriate stakeholders
• Organizational communication requirements
• Issues management procedures
techniques - Interpersonal skills
• Change control procedures
- Management skills • Historical information about previous project
Outputs - Issue log
- Change requests • Building trust
- Project management plan • Resolving conflict
updates • Active listening
- Project documents updates • Overcoming resistance to change
- Organizational process assets – Management skills
updates • Presentation, negotiating, writing, public speaking, etc.
• Facilitate consensus toward project objectives,
• Influence people to support the project
• Negotiate agreements to satisfy the project needs
• Modify organizational behavior to accept the project outcomes
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Inputs - Stakeholder management plan
• Outputs
– Issue log: to be updated as new issues are identified or current issues are
plan
resolved
- Change log
– Project management plan updates: stakeholder management plan
– Project documents updates: stakeholder register
techniques - Interpersonal skills • Stakeholder notifications
- Management skills • Project reports
• Project presentations
Outputs - Issue log • Project records
- Change requests • Feedback from stakeholders
• Lesson learned documentation
updates
updates
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• The process of monitoring overall project stakeholder relationships and
- Issue log
adjusting strategies and plans for engaging stakeholders
- Project documents
• The key benefit of this process is that it will maintain or increase the
Tools and - Information management efficiency and effectiveness of stakeholders engagement activities as the
techniques systems project evolves and its environment changes
- Expert judgment
- Meetings • Inputs
– Work performance data: are the raw observations and measurements
Outputs - Work performance information identified during activities being performed to carry out the project work. E.g.
- Change requests reported percentage of work completed, technical performance measures, start
- Project management plan and finish dates of schedule activities, number of change request, actual cost,
updates actual durations, etc.
- Project documents updates – Project documents: project schedule, stakeholder register, issue log, change
- Organizational process assets log, and project communications
updates
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- Issue log – Information management system
- Work performance data • Provides a set of standards tools for the project manager to capture, store, and
- Project documents distribute information to stakeholders about the project cost, schedule progress, and
performance
Tools and - Information management • It also allows the project manager to consolidate reports from several systems, and
facilitate distribution of reports to the project stakeholders
techniques systems
- Expert judgment • Outputs
- Meetings – Work performance information: is the performance data collected from various
controlling processes, analyzed in context, and integrated based on relationships across
areas. Thus work performance data have been transformed into work performance
information. Data per se are not used in the decision-making process, because the
- Change requests
meaning may be misinterpreted. Information, however, is correlated and contextualized and
- Project management plan provides a sound foundation for project decisions.
updates – Project documents updates
- Project documents updates • Stakeholder register / Issue log
updates
• Stakeholder notifications
• Project reports
• Project presentations
• Project records
• Feedback from stakeholders
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• Lessons learned documentation
FINAL ACTIVITY
• Could you please write down 3 actions that you will
undertake over the next 2 weeks to improve your project
management skills
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THANK YOU
• Nguyen Si Trieu Chau

• chau@atoha.com
• 0903948140
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WELCOME TO THE CLASS

Project Management Professional

Nguyen Si Trieu Chau, PMP, PMI-RMP, PMI-SP, LIMC

Phone on Silent/Vibrant Punctuality

Let’s start now

NGUYEN SI TRIEU CHAU

• Understand the project management concept

• Domain I. Initiating the Project – 13%

NGUYEN SI TRIEU CHAU

• What is Project Management?

• What are Operations?

• What is Operations Management?

• Project & Strategic Planning

• Project Management Office (PMO)

• Culture, structure, process of organization

NGUYEN SI TRIEU CHAU

NGUYEN SI TRIEU CHAU

Inputs - Project statement of work

Tools and - Expert judgment

Inputs - Project statement of work

Inputs - Project statement of work

Inputs - Project statement of work

Inputs - Project statement of work

Project Selection Method. 2 categories:

• Present value Benefit cost ratio (B/C)

IF YOU FAIL TO PLAN,

Inputs - Project charter

Outputs - Project management plan

Inputs - Project charter

Inputs - Project charter

• Project baselines include:

Inputs - Project charter

Tools and - Expert judgment

Outputs - Project management plan

Inputs - Project management plan

Inputs - Project management plan

Inputs - Project management plan

Inputs - Project management plan

Tools and - Expert judgment

NGUYEN SI TRIEU CHAU

Plan Scope Management Validate Scope

Inputs - Project management plan

• Tools and techniques

Inputs - Project management plan • Outputs

Inputs - Scope management plan

Inputs - Scope management plan

Outputs - Requirements documentation

Inputs - Scope management plan

Inputs - Scope management plan

Inputs - Scope management plan

Inputs - Scope management plan

Outputs - Requirements documentation

Outputs - Requirements documentation

Inputs - Scope management plan

Inputs - Scope management plan

Inputs - Scope management plan

Inputs - Scope management plan

Outputs - Scope baseline

Inputs - Scope management plan

Tools and - Decomposition

Outputs - Scope baseline

• WBS dictionary: is a document that provides detailed deliverable,

Inputs - Scope management plan