Module 1

THE PROJECT
MANAGEMENT
FRAMEWORK
A PROJECT
 A temporary endeavor undertaken to create a
unique product, services or result.

◦ Temporary: a definite beginning and end

◦ Unique: ‘different’ from similar products/services

Project Management
 The application of knowledge,
skills, tools and techniques to
project activities to meet project
requirements
MANAGING A PROJECT
 Identifying requirements
 Establishing ‘SMART’ objectives
 Balancing competing demands cost, time,

scope and relevant level of quality

 Adapting plans and activities to the different

interests of the various stakeholders

PMBOK KNOWLEDGE AREAS
1. Integration 1. Human
2. Scope Resources
3. Time 2. Communicatio
4. Cost n
5. Quality 3. Risk
4. Procurement
AREAS OF EXPERTISE
 The PMBOK
 Application area knowledge, standards &

regulations
 Understanding the project environment
 General management knowledge & skills
 Interpersonal skills
Understanding the Project
Environment

 Cultural and social environment

 International and political environment

 Physical environment
INTERPERSONAL SKILLS

 Effective communication

 Influencing the organization

 Leadership

 Motivation

 Negotiation and conflict management

 Problem solving
PROJECT MANAGEMENT CONTEXT
 Project
management exists in a
broader context that includes
◦ program management,
◦ portfolio management, and
◦ project management office
PROGRAM MANAGEMENT
 A Program is a group of related projects
managed in coordinated way to obtain
benefits and control not available from
managing them individually.
PORTFOLIO MANAGEMENT
Organizations manage their portfolio
based on specific goals:
◦ Strategic objectives
◦ Capabilities/risk tolerance
◦ Efficient use of resources
PROJECT MANAGEMENT OFFICE
A PMO is an organizational unit that centralizes and
coordinates the management of projects under its
domain.

PMOs can operate on a continuum from:

 Support

◦ Training
◦ Software selection
◦ Policies and procedures
To
 Direct management and responsibility for project
objectives
THE PROJECT LIFE CYCLE
“Divide and Conquer”

 A project is divided into phases

◦ Better management and control
◦ Moure logical links to operation

 Collectively, the phases become the project

life cycle
CHARACTERISTICS OF THE PROJECT
LIFE CYCLE
 The project life cycle defines the phases that
connect the beginning of a project to its end

 NOT to be confused with the project

management process group.
CHARACTERISTICS OF PROJECT
PHASES
 Specific deliverable (s)
 Technical transfer or hand-off
 Specific start/finish of each phase
 Finish of a phase marked by a review of

deliverable(s) and performance

 Reviews pre-determined
PROJECT STAKEHOLDERS
 Individuals and organizations who are actively
involved in the project, or whose interests
may be affected as a result of project
execution or project completion
 The project management team MUST identify

the stakeholders, determine their

requirements and expectations and to the
extent possible, manage their influence in
relation to the requirements to ensure a
successful project.
ORGANIZATION
 Functional  Balanced matrix
 Projectized  Strong matrix
 Weak matrix  Composite
 ORGANIZATIONAL STRUCTURE INFLUENCES ON
PROJECTS
Project Functional Matrix Projectized
Characteristics/
Organization
Type

Weak Balanced Strong

Matrix Matrix Matrix
Project Little or None Limited Low to Moderate to High to
Manager’s Moderate High Almost Total
Authority

Resource Little or None Limited Low to Moderate to High to

availability Moderate High Almost Total

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

Manager’s Role

Who Controls the Functional Functional Mixed Project Project

project budget Manager Manager Manager Manager

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

Management
RESPONSIBILITIES – MATRIX
ORGANIZATION

 PROJECT MANAGER – WHAT, WHEN?

 FUNCTIONAL MANAGER – WHO, HOW?

The Role of the PMO in
Organizational Structure

 May range from advisory influence,

limited to recommendations of
specific policies and procedures on
individual projects, to a formal grant
of authority.
PROJECT MANAGEMENT PROCESSES
To be successful a project team must:
 Select and use appropriate process group

processes
 Define an approach to meet project and

product requirements
 Comply with requirements to meet

stakeholder needs, wants & expectations

 Balance demands of scope, time, cost,

quality, resources & risk

PROJECT MANAGENT PROCESSES
The Plan ---- Do ---- Check ---- Act Cycle

 Linked by results

 Output becomes input

THE PROCESS GROUP (IPECC)
1. Initiating
2. Planning
3. Executing
4. Monitoring and Controlling
5. Closing

 Process groups are NOT project phases!

INITIATING PROCESS GROUP
Principal output:

 Project charter

 Stakeholder register

 Stakeholder management strategy

PLANNING PROCESS GROUP
 Develop the project  Determine budget
management plan  Plan quality
 Collect requirements  Develop HR plan
 Define scope  Plan communications
 Create WBS  Plan risk management
 Define activities  Identify risks
 Sequence activities  Perform qualitative
 Estimate activity analysis
resources  Perform quantitative
 Estimate activity analysis
EXECUTING PROCESS GROUP
Processes
 Direct and Manage execution
 Perform quality assurance
 Acquire project team
 Develop project team
 Manage project team
 Distribute information
 Manage stakeholder expectations
 Conduct procurements
MONITORING and CONTROLLING
Process Group

 Monitors performance against plan and

baseline

 Influences factors that could circumvent

integrated change control
CLOSING PROCESS GROUP
The closing process group includes that
processes used to

 formally terminate all activities of a project or

a phase,
 hand off the completed product to others or
 close a cancelled project
PROCESS INTERACTIONS
 Process groups are linked by the objectives
they produce

 The output of one generally becomes the

input to another or is a deliverable

 They are overlapping activities that occur at

varying levels of intensity throughout the
project
“2000 CORE” PLANNING PROCESS
 Essentially performed in same order on most
projects

 Source of MANY questions

Module 2

THE PROJECT
INTEGRATION
MANAGEMENT
PROJECT INTEGRATION
MANAGEMENT

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.
PROJECT INTEGRATION
MANAGEMENT
4.1 Develop Project Charter
4.2 Develop Project Management Plan
4.3 Direct and Manage Project Execution
4.4 Monitor and Control Project Work
4.5 Perform Integrated Change Control
4.6 Close Project or Phase
INTEGRATION PROCESSES FLOW
Adapted form Figure 4-1
Develop Charter
|
Develop Project Management Plan
|
Direct & Manage Execution
|
Monitor & Control Work
|
Perform Integrated Change Control
|
Close Project or Phase
DEVELOP PROJECT CHARTER
 The CHARTER formally authorizes a project

 Issued by someone external to the project

organization

 The result of:

◦ Needs analysis
◦ Business case
◦ Situation statement
4.1 DEVELOP PROJECT CHARTER

.1 Inputs
.1 Project Statement of Work
.2 Business Case
.3 Contract
.4 Enterprise Environmental Factors
.5 Organizational Process Assets
PROJECT STATEMENT OF WORK
 A narrative description of products or
services to be supplied by the project.

 Based on business needs

 Support for strategic plan

ORGANIZATIONAL PROCESS ASSETS

 Any and all of the assets that are used to

influence the project’s success can be drawn
from organizational assets.
4.1 DEVELOP PROJECT CHARTER
.2 Tools and Techniques
.1 Expert Judgment
PROJECT SELECTION METHODS
 Benefit measurement
◦ Economic $$
 Net present value (NPV)
 Return on investment (ROI)
 Payback

◦ Scoring

 Mathematical models – linear, nonlinear,

dynamic, integer or multi-objective
programming algorithms
4.1 DEVELOP PROJECT CHARTER
.3 Outputs
.1 Project Charter
PROJECT MANAGEMENT PLAN
 Select processes to be used
 How work will be executed
 How changes will be monitored
 Performance measurement
 Stakeholder communications
 Management reviews
 Summary or detailed
4.2 DEVELOP PROJECT MANAGEMETN
PLAN
.1 Inputs
.1 Project charter
.2 Outputs from planning processes
.3 Enterprise environment factors
.4 Organizational process assets
ENTERPRISE ENVIRONMENTAL
FACTORS
Enterprise environmental factors may include:

 Government or industry standards

 PMIs, organizational structure and culture

 Infrastructure

 Personnel administration
ORGANIZATIONAL PROCESS ASSETS
 STANDARDIZED GUIDELINES

 WORK INSTRUCTIONS

 PROJECT MANAGEMENT PLAN TEMPLATES

 CHANGE CONTROL PROCEDURES

 HISTORICAL INFORMATION

 CONFIGURATION MANAGEMENT STANDARDS

4.2 DEVELOP PROJECT MANAGEMENT
PLAN

.2 Tools & Techniques

.1 Expert judgment
EXPERT JUDGMENT
 Tailored processes

 Determine skill levels of required resources

 Define configuration management

requirements

 Determine change control process

4.2 DEVELOP PROJECT MANAGEMETN
PLAN

.3 Outputs

.1 Project management plan

DIRECT AND MANAGE PROJECT
EXECUTION

 Whatever it takes to accomplish the

objectives

 Perform activities, expend funds, staff, train

& manage team, select ‘sellers’, manage
risks, create, control and verify deliverables,
report performance and collect & document
lessons learned.
DIRECT AND MANAGE PROJECT
EXECUTION
 Perform activities to accomplish project objectives

 Create project deliverables

 Implement approved changes

 Initiate corrective action

 Execute preventive action plans

 Repair defects
4.3 DIRECT AND MANAGE PROJECT
EXECUTION
.1 Inputs
.1 Project management plan
.2 Approved change requests
.3 Enterprise environmental factors
.4 Organizational process assets
4.3 DIRECT AND MANAGE PROJECT
EXECUTION
.2 Tools & Techniques
.1 Expert judgment
.2 PMIS
4.3 DIRECT AND MANAGE PROJECT
EXECUTION
.3 Outputs
.1 Deliverables
.2 Work performance information
.3 Change requests
.4 Project management plan updates
.5 Project document updates
4.4 MONITOR AND CONTROL
PROJECT WORK
 Monitors project processes – Initiating,
Planning, Executing & Closing

 Is concerned with – assessing performance

vs. plan, analyzing, tracking & monitoring
risks, providing status & forecasts and
monitoring approved changes
4.4 MONITOR AND CONTROL
PROJECT WORK
.1 Inputs
.1 Project management plan
.2 Performance reports
.3 Enterprise environmental factors
.4 Organizational process assets
4.4 MONITOR AND CONTROL
PROJECT WORK
.2 Tools & Techniques
.1 Expert judgment
4.4 MONITOR AND CONTROL
PROJECT WORK
.3 Outputs
.1 Change requests
.2 Project management plan updates
.3 Project document updates
4.5 PERFORM INTEGRATED CHANGE
CONTROL
Includes the following change management
activities based upon the status of the
project:
 Reviewing and approving requests changes
 Maintaining the integrity of baseline
 Controlling and updating the scope, cost,

schedule and quality requirements based

upon approved changes
 Ensuring that configuration practices are

followed
4.5 PERFORM INTEGRATED CHANGE
CONTROL
.1 Inputs
.1 Project management plan
.2 Work performance information
.3 Change requests
.4 Enterprise environmental factors
.5 Organizational process assets
4.5 PERFORM INTEGRATED CHANGE
CONTROL
.2 Tools & Techniques
.1 Expert judgment
.2 Change control meetings
4.5 PERFORM INTEGRATED CHANGE
CONTROL
.3 Outputs
.1 Change request status updates
.2 Project management plan updates
.3 Project document updates
4.6 CLOSE PROJECT OR PHASE
.1 Inputs

.1 Project management plan

.2 Accepted deliverables

.3 Organizational process assets

4.6 CLOSE PROJECT OR PHASE
.2 Tools & Techniques

.1 Expert judgment
4.6 CLOSE PROJECT OR PHASE
.3 Outputs

.1 Final product, service or result transition

.2 Organizational process assets updates

ORGANIZATIONAL PROCESS ASSETS
UPDATES

 Project files

 Project or phase closure documents

 Historical information
Module 3

PROJECT SCOPE
MANAGEMENT
PROJECT SCOPE MANAGEMENT
Ensure project includes all
required and no extra work
for successful completion
PROJECT SCOPE MANAGEMENT
 5.1 Collect requirements
 5.2 Define scope
 5.3 Create WBS
 5.4 Verify scope
 5.5 Control scope
SCOPE PROCESS PRIMARY OUTPUT
FLOW
 5.1 Collect requirements
◦ -> Requirement documentation
 5.2 Define scope
◦ -> Scope statement
 5.3 Create WBS
◦ -> WBS
 5.4 Verify scope
◦ -> Accepted deliverables
 5.5 Control scope
◦ -> Work performance measurements
SCOPE
 Product – features and functions of
project or service

 Project– work that must be done to

deliver the product or service
COLLECT REQUIREMENTS
 This
is the process of developing a
Requirements Management Plan
REQUIREMENTS MANAGEMENT PLAN
 Documents how requirements will
be analyzed, documented and
managed throughout the project
5.1 Collect Requirements
.1 Inputs

.1 Project charter

.2 Stakeholder register
STAKEHOLDER REGISTER
The stakeholder register is the main output of
the Identify Stakeholders process.

 Identification information

 Assessment information

 Stakeholder classification
5.1 Collect Requirements
.2 Tools & Techniques

.1 Interviews

.2 Focus groups

.3 Facilitated workshops

.4 Group creativity techniques

.5 Group decision making techniques

.6 Questionnaires and surveys

.7 Observations

.8 Prototypes
GROUP CREATIVITY TECHNIQUES
 Brainstorming

 Nominal group techniques

 The Delphi techniques

 Idea/mind mapping

 Affinity diagrams
GROUP DECISION MAKING
TECHNIQUES

 Unanimity – everyone agrees

 Majority – 50% of the group

 Plurality – largest ‘block’

 Dictatorship
5.1 Collect Requirements
.3 Outputs

.1 Requirements documentation

.2 Requirements management plan

.3 Requirements traceability matrix

STAKEHOLDER REQUIREMENT
DOCUMENTATION
Can include, but is not limited to:

◦ Business problems or opportunities

◦ Business and project objectives for traceability
◦ Functional requirements
◦ Non-functional requirements
◦ Quality requirements
◦ Assumptions and constraints
5.2 DEFINE SCOPE
Is the process of developing a
detailed description of the project
and product
5.2 Define Scope
.1 Inputs
.1 Project charter
.2 Requirements documentation
.3 Organizational process assets
5.2 Define Scope
.2 Tools & Techniques
.1 Expert judgment
.2 Project analysis
.3 Alternatives identification
.4 Facilitated workshops
FACILITATED WORKSHOPS
Are focused sessions that bring key
cross-functional stakeholders
together to define requirements,
cross-functional requirements and
reconciling stakeholder differences.
5.2 Define Scope
.3 Outputs
.1 Project scope statement
.2 Project documentation updates
PROJECT SCOPE STATEMENT
Describes in detail the project’s
deliverables and the work required to
create those deliverables
PROJECT SCOPE STATEMENT
The project scope statement includes:
◦ Product scope description
◦ Project deliverables
◦ Project exclusions
◦ Product acceptance criteria
◦ Project constraints
◦ Project assumptions
CREATE WBS
A deliverable-oriented hierarchical
decomposition of the work to be
executed by the project team, to
accomplish the project objectives and
create the required deliverables.
PROJECT PLAN
WORK BREAKDOWN STRUCTURE
LEVEL 1

LEVEL 2 LEVEL 2

LEVEL 3 LEVEL 3
PROJECT DOCUMENT UPDATES
 Stakeholder register

 Requirements documentation

 Requirements traceability matrix

5.3 Create WBS
.1 Inputs
.1 Project scope statement
.2 Requirement documentation
.3 Organizational process
5.3 Create WBS
.2 Tools & Techniques
.1 Decomposition

WBS Decomposition is the work package level,

is the lowest level in the WBS, and is the point
at which the cost and schedule for the work
can be reliably estimated.
SAMPLE WORK BREAKDOWN STRUCTURE
- ORGANIZED BY PHASE
software
software product
product
release
release 5.0
5.0

project
project product
product integration
integration and
and
detail
detail design
design construction
construction
management
management management
management test
test

planning
planning software
software software
software software
software software
software

user
user user
user user
user user
user
meeting
meeting documentation
documentation documentation
documentation documentation
documentation documentation
documentation

training
training program
program training
training program
program training
training program
program training
training program
program
administration
administration materials
materials materials
materials material
material material
material
5.3 Create WBS
.3 Outputs
.1 WBS
.2 WBS dictionary
.3 Scope baseline
.4 Project document updates
WBS
WBS is the basis for:
◦ Network scheduling
◦ Responsibility matrix
◦ Budget and cost estimating
◦ Risk analysis
◦ Organizational structure
◦ Coordination of objectives
◦ Project performance measures
WBS DICTIONARY
 The document generated by the Create WBS
process that supports the WBS is called the WBS
Dictionary.

 For each WBS element, the WBS Dictionary

includes detailed description of work and
technical documentation.

 May include quality requirements and technical

references to facilitate performance of the work
5.4 VERIFY SCOPE
Formalizing acceptance of the project
deliverables

.1 Inputs
.1 Project management plan
.2 Requirements documentation
.3 Requirements traceability matrix
.4 Validated deliverables
5.4 VERIFY SCOPE
.2 Tools & Techniques
.1 Inspection

.3 Outputs
.1 Accepted deliverables
.2 Change requests
.3 Project document updates
5.5 CONTROL SCOPE

 Controlling changes to project scope

 The process of monitoring the status of the

project and product scope and managing
changes to the scope baseline
5.5 CONTROL SCOPE
.1 Inputs
.1 Project management plan
.2 Work performance information
.3 Requirements documentation
.4 Requirements traceability matrix
.5 Organizational process assets
5.5 CONTROL SCOPE
.2 Tools & Techniques
.1 Variance analysis

.3 Outputs
.1 Work performance measurements
.2 Organizational process assets updates
.3 Change requests
.4 Project management plan
.5 Project document plan
Module 4

PROJECT
TIME
MANAGEMENT
Project Time Management
Ensuring timely completion of a project

6.1 Define Activities

6.2 Sequence Activities
6.3 Estimate Activity Resources
6.4 Estimate Activity Duration
6.5 Develop Schedule
6.6 Control Schedule
6.1 Define Activities

Identifying the activities necessary to produce

the project deliverables
6.1 Define Activities
.1 Inputs
.1 Scope baseline
.2 Enterprise environmental factors
.3 Organizational process assets

.2 Tools & Techniques

.1 Decomposition
.2 Rolling wave planning
.3 Templates
.4 Expert judgment
Enterprise Environmental Factors
 May include availability of PMIS and
scheduling software

 Any and all of the organization’s enterprise

environmental factors and systems that
surround and influence the project’s success
must be considered
Organizational Process Assets
 The existing formal and informal activity
planning related policies, procedures, and
guidelines that are considered in developing
the activity definitions.

 Lessons learned from previous related

projects.
DECOMPOSITION
 As applied to Define Activities

 Subdividing work packages into smaller, more

manageable components called Schedule Activities

Rolling wave planning:

is a form of progressive elaboration where the
work to be accomplished in the near term is
planned in detail at a low level of the WBS, while
work in the future is planned for WBS components
that are at a relatively high level of the WBS
PLANNING COMPONENT
When you can decompose to the package level,
use the last ‘component’ in the WBS to set up
a high-level planning component.

 Control Account – subsequent work, pending

resolution, is charged to that control account.

 Planning Package – below the control account

but above a work package
6.1 Define Activities
.3 Outputs
.1 Activity list
.2 Activity attributes
.3 Milestone list
Activity List
 A comprehensive list of all schedule activities
that are planned to be performed on the
project.

 Includes an identifier and a scope of work in

sufficient detail to ensure that project team
members understand what work is required
to be completed.
Activity Attributes
These activity attributes are an extension of
the activity attributes in the activity list.

Additional information would be

 predecessor/successor relationships
 Leads and lags
 Resource requirements
 Imposed dates
 Constraints and assumptions, etc…
6.2 Sequence Activities
Identifying and documenting relationships
among project activities

.1 Inputs
.1 Activity list
.2 Activity attributes
.3 Milestone list
.4 Project scope statement
.5 Organization process assets
6.2 Sequence Activities
.2 Tools & Techniques
.1 Precedence diagramming method (PDM)
.2 Dependency determination
.3 Applying leads and lags
.4 Schedule network templates
DEPENDENCY DETERMINATION
 Mandatory – also called hard logic, requires
completion of an activity before

 Discretionary – also called soft logic or

preferred logic; convenience

 External – a supplier or contractor

Applying Leads and Lags
A lead allows the acceleration of the
successor activity

A lag directs a delay in the successor

activity
6.2 Sequence Activities
.3 Outputs
.1 Project schedule network diagrams
.2 Project document updates
6.3 Estimate Activity Resources
Determining the ‘what, when and how many’
resources will be required.

.1 Inputs
.1 Activity list
.2 Activity attributes
.3 Resource calendars
.4 Enterprise environmental factors
.5 Organizational process assets
Clarification of Inputs
 Enterprise environmental factors
◦ Uses the infrastructure resource availability
information

 Organizational process assets

◦ Policies regarding resources plus any relevant
historical information

 Activity attributes
◦ The attributes developed during the Define Activities
process form basis for estimating required resrouces
6.3 Estimate Activity Resources
.2 Tools & Techniques
.1 Expert judgment
.2 Alternatives analysis
.3 Published estimating data
.4 Bottom-up estimating
.5 Project management software
6.3 Estimate Activity Resources
.3 Outputs
.1 Activity resource requirements
.2 Resource breakdown structure
.3 Project document updates
Activity Resource Requirements
The output of the Estimate Activity
Resources process is an identification
and description of the types and
quantities of resources required for
each schedule activity in a work
package.
6.4 Estimate Activity Duration
.1 INPUTS
.1 Activity list
.2 Activity attributes
.3 Activity resource requirements
.4 Resource calendars
.5 Project scope statement
.6 Enterprise environmental factors
.7 Organizational process assets.
6.4 Estimate Activity Duration
.2 TOOLS & TECHNIQUES
.1 Expert judgment
.2 Analogous estimating
.3 Parametric estimating
.4 Three point estimating
.5 Reserve analysis
Duration Estimating
– Tools & Techniques
 Expert judgment
◦ Should be used when guided by historical information
 Analogous estimating (also top-down)
◦ Used when detail information is limited
◦ Most reliable when:
 Previous activities are in fact similar
 Individuals making estimates have needed expertise
 Parametric estimating
◦ Mathematical algorithms
 Three point estimates
◦ Optimistic - Most likely - Pessimistic
 Reserve Analysis
◦ Contingency reserves, buffers
Example: activity = design
 Optimistic time: 4 days
 Pessimistic time: 8 days
 Most likely time: 5 days

 Expected time, te = 4 + (4 * 5) + 8 = 5.3 days

6

Formula: Optimistic + (4*Most Likely) + Pessimistic

6
SCHEDULE PROBABILITY (Ts =
Project Schedule: Original or
Desired
1. Calculate Te for each activity
2. Determine the critical path (CP)
3. Calculate б of each (CP) activity (Range/6)
1. Range = Pess – Optimistic duration
4. Square б for each (CP) activity to get
variance
5. Sum the (CP) variance and take square root
6. Calculate: Z = (Ts – Te)/sq root of variance
7. Look-up % in ‘Z’ probability table
Category of Estimates
Category Accuracy
Order of Magnitude: -15% to +75%
(conceptual)
Budget Estimate: -10% to +25%
(semi-detailed)
Definitive Estimate: -5% to +10%
(detailed)
6.4 Estimate Activity Duration
.3 OUTPUTS
.1 Activity duration estimate
.2 Project document updates
6.5 Develop Schedule
An iterative process, determines
planned start and finish dates for
project activities
6.5 Develop Schedule
.1 Inputs
.1 Activity list
.2 Activity attributes
.3 Project schedule network
.4 Activity resource requirements
.5 Resource calendars
.6 Activity duration estimates
.7 Project scope statement
.8 Enterprise environment factors
.9 Organizational process assets
Clarification of inputs
 Organizational process assets
◦ Scheduling methodology…a project calendar of
working days or shifts.

 Project scope statement

◦ Contains assumptions and constraints that can
impact the development of the project schedule
6.5 Develop Schedule
.2 Tools & Techniques
.1 Schedule network analysis
.2 Critical path method
.3 Critical chain method
.4 Resource leveling
.5 What-if-scenario analysis
.6 applying leads and lags
.7 Schedule compression
.8 Scheduling tool
Critical Path Method
 A schedule network analysis technique that is
performed using the schedule model.

 Uses early start and finish and late start and

finish without regard for any resource
limitations…not necessarily the project
schedule

 Schedule flexibility is determined by ‘total

float’.
Calculating Project Slack
1. Complete a network diagram
2. Calculate the critical path
3. Calculate float:
 Early start – Latest start
Or
 Early finish – Latest finish

 Remember, items on the critical path have

‘zero’ float!
Critical Path - AON
Calculating the Earliest Start
Time-”The Forward Pass”
The earliest possible time an activity can begin
without interfering with the completion of any
preceding activities
 Starts with the beginning node of the network

diagram (time 0) and continues

 If one arrow leads into a node, simple add in

series
 If more than one arrow leads into a node, use

the largest total

Early Start Time
Calculating Latest Start Time – “The
Backward Pass”
The latest time an activity must be started
without delaying the end of the project
 Calculate project duration
 Project duration is the latest finish time of an

end node of the project

 The calculation of the latest start times

involves working form the end node, back

through each node, to the first node of the
project
Latest Start Time
Determining Float
FLOAT
 FREE FLOAT – the amount of time an activity
can be delayed without delaying the early
start of any immediately following activities

 FLOAT – the amount of time that an activity

may be delayed from its early start without
delaying the project finish date

 SLACK- term used in PERT for float

Schedule Compression
 CRASHING- taking action to decrease the
total schedule duration after analyzing a
number of alternatives to determine how to
get the maximum schedule compression for
the least cost.

 FAST TRACKING- performing tasks or phases

concurrently that you would normally do in
sequence. However, there is a risk of rework.
What-if Scenario Analysis
The outcome of ‘what-if’ scenarios can be
used to assess the feasibility of schedule
under adverse circumstances (risk factors)

Monte Carlo simulations may be used to assess

the impact of various circumstances
Resource Leveling
 Any form of network analysis in which scheduling
decisions (start & finish) are driven by resource
management concerns (resource limitations)

 Will level work schedules

 May extend project schedule

 Creates smoother distribution of resource usage

by shifting tasks within their float allowances
Critical Chain Method
 Another schedule network analysis that
modifies the project schedule to account for
limited resources.

 The critical chain method adds duration

buffers that are non-work schedule activities
to maintain focus on the planned activity
durations
6.5 Develop Schedule
.3 Outputs
.1 Project schedule
.2 Schedule baseline
.3 Schedule data
.4 Project document updates
Project Schedule
Including:
 Project schedule network diagrams with

activity date information and critical path.

 Bar charts, which show activity start and end

dates, as well as expected duration.

 Milestone charts, which show completion of

major deliverables and key external
interfaces.
Project Network Diagram with
Scheduled Dates
Gantt Chart
6.6 Control Schedule
.1 Inputs
.1 Project management plan
.2 Project schedule
.3 Work performance information
.4 Organizational process assets
Work Performance Information
Inputs to Control Schedule may include:

 Bar charts, S-curves, histograms & tables

 Earned value: SV, SPI, CV, CPI

 Activities started, activities finished

6.6 Control Schedule
.2 Tools & Techniques
.1 Performance reviews
.2 Variance analysis
.3 Project management software
.4 Resource leveling
.5 What-If-Scenario analysis
.6 Adjusting leads and lags
.7 Schedule compression
.8 Scheduling tool
Variance Analysis
 Comparing target schedule dates with the
actual/forecast start and finish dates

 May prompt corrective action

 Examine total float variance

6.6 Control Schedule
.3 Outputs
.1 Work performance measurements
.2 Organizational process assets updates
.3 Change requests
.4 Project management plan updates
.5 Project document updates
Work Performance Measurements

The calculated SV and SPI values for WBS

components, in particular the work packages

and control accounts, are documented and

communicated to stakeholders.
Organizational Process Assets
Updates
Includes but are not limited to:
 Causes of variances
 Corrective action chosen and the reason
 Other types of lessons learned from project
schedule control.
Schedule Baseline Updates
Baseline change only in response
to approved schedule changes
Module 5

PROJECT
COST
MANAGEMENT
PROJECT COST MANAGEMENT
Ensuring completion within the approved budget

Preceding cost management processes:

◦ Part of develop project management plan (4.2)…

documenting the actions necessary to define,
prepare, integrate and coordinate subsidiary plans
into a project management plan.

◦ Sets out format, criteria for planning, structuring,

estimating, budgeting and controlling project costs.
Project Cost Management
 7.1 Estimate Cost

 7.2 Determine Budget

 7.3 Control Costs

Estimate Cost
 Estimating cost of required resources
7.1 Estimate Costs
.1 Inputs
.1 Scope Baseline
.2 Project Schedule
.3 Human Resource Plan
.4 Risk Register
.5 Enterprise Environment Factors
.6 Organizational Process assets
Scope Baseline
 Scope statement

 Work breakdown structure

 WBS dictionary
Organizational Process Assets
 Cost estimating policies
 Cost estimating templates
 Historical information
 Project files
 Project team knowledge
 Lessons learned
 Resource cost rates
 Basic assumptions
7.1 Estimating Costs
.2 Tools & Techniques
.1 Expert judgment
.2 Analogous estimating
.3 Parametric modeling
.4 Bottom-up estimating
.5 Three point estimate
.6 Reserve analysis
.7 Cost of quality
.8 Project management estimating software
.9 Vendor bid analysis
Cost Estimating – tools & techniques

 Analogous estimating- also called top-down; less

costly; less accurate; based on ‘similar’ activities.
 Parametric modeling- uses statistical relationship

based on historical analysis

 Bottom-up estimating- detail build-up
 Vendor bid analysis – assets costs / component/

bid
 Reserve analysis – assets combine contingencies
 Cost of quality – all costs to secure specification

conformance
7.1 Estimating Costs
.3 Outputs
.1 Activity cost estimates
.2 Basis of estimates
.3 Project document updates
Activity Cost Estimates
Costs are estimated for all resources, such as:
◦ Labor
◦ Material
◦ Equipment
◦ Services
◦ Facilities
◦ Information technology
◦ Special categories, such as an inflation allowance or
cost contingency reserve
Determine Budget
Aggregating the individual costs to establish
an authorized cost baseline.

Scope Baseline
 Scope statement
 work breakdown structure
 WBS dictionary
7.2 Determine Budget
.1 Inputs
.1 Activity Cost Estimates
.2 Basis of Estimate
.3 Scope baseline
.4 Project Schedule
.5 Resource Calendars
.6 Contracts
.7 Organizational Process Assets
7.2 Determine Budget
.2 Tools & Techniques
.1 Cost aggregation
.2 Reserve analysis
.3 Expert judgment
.4 Historical relationships
.5 Funding limit reconciliation
7.2 Determine Budget
.3 Outputs
.1 Cost performance baseline
.2 Project funding requirements
.3 Project document updates
Cost Performance Baseline
 The cost performance baseline is a time-
phase budget that is used as a basis against
which to measure, monitor, and control
overall cost performance on the project.

 Developed by summing estimated costs by

period and is usually displayed in the form of
an S-curve.

 (see page 178 of Becker-module 5)

Control Costs
 The process of monitoring the status of the
project to update the project budget and
manage changes to the cost baseline.
7.3 Control Costs
.1 Inputs
.1 Project management plan
.2 Project funding requirements
.3 Work performance information
.4 Organizational process assets
Cost Control
 Cost control includes:
◦ Monitoring cost performance to detect and understand
variances from the cost baseline

◦ Recording all appropriate changes to the baseline

◦ Informing appropriate stakeholders of approved changes

 Cost control searches out the causes of variance

and is part of Perform Integrated Change Control
Work Performance Information
Includes:
 Deliverables completed and pending

 Costs authorized and incurred

 Estimates to complete the scheduled activities

Project Cost Control
 Project cost control searches out the causes
of variances and is part of Performance
Integrated Change Control
7.3 Control Costs
.2 Tools & Techniques
.1 Earned value measurement
.2 Forecasting
.3 To-Complete performance index (TCPI)
.4 Performance reviews
.5 Variance analysis
.6 Project management software
Performance Measurement Earned
Value Techniques
PV = the budgeted cost for the work scheduled
to be completed on an activity

EV = the budgeted amount for the work

actually completed on the scheduled activity

AC = the actual cost incurred in performing the

work for the scheduled activity
Earned Value Variances and Indices

 Variances:
◦ Cost CV = EV – AC
◦ Schedule SV = EV – PV

 Performance Index:
◦ Cost CPI = EV / AC
◦ Schedule SPI = EV / PV
FORECASTING
 Budget At Completion = BAC

 Estimate To complete = ETC

 Estimate at Completion = EAC

Calculation of ETC and EAC will vary based on

current situation
FORECASTING
 ETC with an atypical current variance:
◦ ETC = BAC – EV

 ETC with typical current variance:

◦ ETC = (BAC –EV) / CPI

 ETC with residual budget not accurate:

◦ ETC will require a NEW estimate!
FORCASTING
 EAC = Estimate at Completion

 Residual budget is accurate:

◦ EAC = AC + (BAC – EV)

 Budget variance will continue (use CPI):

◦ EAC = AC + (BAC – EV) / CPI or
◦ EAC = AC + (BAC – EV) / (CPI x SPI)

 Using a new estimate:

◦ EAC = AC + ETC
FORECASTING
 EAC is sometimes stated:
◦ EAC = AC + (BAC – EV) / CPI or

◦ EAC = AC + (BAC – EV) / (CPI x SPI)

To-complete Performance Index
(TCPI)
 Based on BAC
◦ TCPI = (BAC – EV) / (BAC – AC)

 BASED ON EAC
◦ TCPI = (BAC – EV) / (EAC – AC)
7.3 Control Costs
 .3 Outputs
◦ .1 Work performance measurements
◦ .2 Budget forecasts
◦ .3 Organizational process assets updates
◦ .4 Change requests
◦ .5 Project management plan updates
◦ .6 Project document updates
Module 5

PROJECT
QUALITY
MANAGEMENT
Project Quality Management
Ensuring the project will satisfy the needs for
which it was undertaken

Quality must be planned in….

NOT inspected in
8.1 Project Quality Management
8.1 Plan Quality

8.2 Perform Quality Assurance

8.3 Perform Quality Control

Quality Considerations
 Quality NOT the same as grade

 Customer satisfaction – Understanding,

evaluating, defining and managing
expectations so that customer requirements
are met

 Requires conformance to requirements and

fitness for use
Quality Planning

Identifying relevant quality standards and

determining how to satisfy them

8.1 Plan Quality
.1 Inputs
.1 Scope baseline
.2 Stakeholder register
.3 Cost performance baseline
.4 Schedule baseline
.5 Risk register
.6 Enterprise Environmental Factors
.7 Organizational process assets
Plan Quality Inputs
 Scope Baseline – the scope statement, WBS, WBS dictionary
 Stakeholder Register – Stakeholders concerned with
quality
 Cost Performance Baseline – Time phases to measure cost
performance
 Schedule Baseline – Schedule performance start/finish
dates
 Risk Register – Threats & opportunities
 Enterprise Environmental Factors – Regulations, rules,
standards
 Organizational Process Assets – Policies, procedures,
guidelines, historical databases, lessons learned.
Quality Policy
 The overall intentions and direction of an
organization with regard to quality, as
formally expressed by top management.

 PMBOK / ISO
8.1 Plan Quality
.2 Tools & Techniques
.1 Cost-benefits analysis
.2 Cost of quality
.3 Control charts
.4 Benchmarking
.5 Design of experiments
.6 Statistical sampling
.7 Flowcharting
.8 Proprietary quality management methodologies
.9 Additional quality planning tools
Cost-Benefit Analysis
Quality planning must consider cost-benefits
tradeoffs

Quality planning results in:

Less rework
Higher productivity
Lower costs
Increased stakeholder satisfaction
Design of Experiments
Techniques of analyzing variables
Alter one, stabilize others

 Jr. vs. Sr. Engineering

 Smother ride – tires vs. suspension

Benchmarking & Cost of Quality
Benchmarking is comparing practices to
generate ideas for improvement

Cost of quality is the total price of all efforts to

achieve project or service quality
 This includes all work to build a

product/service that conforms to the

requirements as well as all work resulting
from nonconformance to the requirements
8.1 Plan Quality
.3 Outputs
.1 Quality management plan
.2 Quality metrics
.3 Quality checklists
.4 Process improvement plan
.5 Project document updates
Quality Management Plan

The Quality Management Plan provides input to

the overall Project Management plan and

must address quality control (QC), quality

assurance (QA), and continuous process

improvement.
Process Improvement Plan
 Process boundaries – describes the purpose,
start, and end of processes, their I/O’s, data
required, if any, & owner

 Process configuration – a flowchart

 Process metrics

 Targets for improved performance

Perform Quality Assurance
Quality assurance is the process of auditing the
quality requirements and the results from
quality control measurements to ensure
appropriate quality standards and operational
definitions are used.
8.2 Perform Quality Assurance
.1 Inputs
.1 Project management plan
.2 Quality metrics
.3 work performance information
.4 Quality control measurements
8.2 Perform Quality Assurance
.2 Tools & Techniques
.1 Plan quality and Perform quality control tools and
techniques
.2 Quality audits
.3 Process analysis
8.2 Perform Quality Assurance
.3 Outputs
.1 Organizational process assets updates
.2 change requests
.3 Project management plan updates
.4 Project document updates
Organizational Process Assets
Updates
Updated quality standards provide validation of
the effectiveness and efficiency of the
performing organization’s quality standards
and processes to meet requirements.
Perform Quality Control
Monitoring specific project results to determine
whether they comply with relevant quality
standards and indentifying ways to eliminate
causes of unsatisfactory performance
8.3 Perform Quality Control
.1 Inputs
.1 Project management plan
.2 Quality metrics
.3 Quality checklists
.4 Work performance measurements
.5 Approved change requests
.6 Deliverables
.7 Organizational process assets
8.3 Perform Quality Control
.2 Tools & Techniques
.1 Cause and Effect diagrams
.2 Control charts
.3 Flowcharting
.4 Histogram
.5 Pareto chart
.6 Run chart
.7 Scatter diagram
.8 Statistical sampling
.9 Inspection
.10 Approved change requests review
Cause & Effect Diagram
Control Chart
Perform Quality Control
 Other tools & techniques
◦ Histogram – a bar chart showing a distribution of
variables
◦ Run chart – shows the history and pattern of
variance – trend analysis may show:
 Technical performance
 Cost and schedule performance
◦ Scatter diagram – shows the pattern of relationship
between two variables
◦ Statistical sampling – chooses part of a ‘population’
for inspection
8.3 Perform Quality Control
.3 Outputs
.1 Quality control measurements
.2 Validated changes
.3 Validated deliverables
.4 Organization process assets updates
.5 Change requests
.6 Project management plan
.7 Project updates
Quality Topics
 Quality assurance vs. Quality control
◦ Q.A. – A ‘managerial’ review/audit of the process.

◦ Q.C. – An ‘inspection’ process that uses tools!!

Deming – objective: focus on ‘process’ and

eventually do away with inspection
Quality Control con’t
 Control charts
◦ UCL / LCL
◦ Standard deviation/variance
◦ Rule of 7
◦ Assignable cause

 JIT (just-in-time)
◦ Requires 100% quality
Quality Control con’t
 Control chart irregularities
◦ Special cause-assignable (worker-related 15%)
◦ Common (management control 85%)

 QA vs. QC

 QCC – Quality Control Circles

“harnessing the energy, ingenuity and enthusiasm of
the work force”
Quality Control con’t
 Responsibility for project quality:
◦ Project Manager – Ultimate
◦ “Doer” – Primary

 Deming – Objective: focus on process, do

away with inspection
Quality Control con’t
 QFD – Quality Function Deployment
A more elaborate extension of CWQC.

Incorporates ‘perceptions of quality’ into

products. The voice of the customer is
deployed throughout the company
Quality Control con’t
 Kaizen = Continuous improvement on and
incremental basis.

 Taguchi = Marginal Analysis – optimal quality

is reached when incremental revenue from
improvement equals the incremental cost to
secure it
Impact of Quality on Cost of Sales

Category % of Sales Dollars

Reactive Proactive
Prevention .0160 .0280
Appraisal .0560 .0060
Internal .0768 .0040
External .0112 .0020
Total .16 .04
Module 7

PROJECT
Human Resource
MANAGEMENT
Project Human Resource Management

Ensuring effective use of project

personnel
Project Human Resource Management

 9.1 Develop human resource plan

 9.2 Acquire project team

 9.3 Develop project team

 9.4 Manage project team

Develop Human Resource Plan

Determine project roles, responsibilities

and reporting relationships and

creates the “Staffing Management

Plan.”
Develop Human Resource Plan
9.1.1 Inputs
.1 Activity resource requirements
.2 Enterprise environmental factors
.3 Organizational process assets
Enterprise Environmental Factors
 Organizational culture and structure, existing
human resources

 Personnel administration policies

 Marketplace conditions
Develop Human Resource Plan
9.1.2 Tools & Techniques
.1 Organizational charts and position descriptions
.2 Networking
.3 Organizational theory
Charts used to define roles
Develop Human Resource Plan
9.1.3 Outputs
.1 Human resource plan
Roles and Responsibilities
Project organization charts
Staffing management plan
Roles & Responsibilities
 Role – area of accountability

 Authority – level of decision making

 Responsibility – expected work

 Competency – skill and capacity

Staffing Management Plan (9.1.3.1)

Staff acquisition – source & location

Timetable – when, how long
Release criteria – method and timing
Training needs
Recognition and rewards – criteria, when
Compliance
Safety
Acquire Project Team

Obtaining the human resources

needed to complete the project

Acquire Project Team
9.2.1 Inputs
.1 Project management plan
.2 Enterprise environmental factors
.3 Organizational process assets
Enterprise Environmental Factors
 Availability – who & when
 Ability – what competencies
 Experience – similar or related work
 Interests – desire to be on project
 Cost – how much
 Personnel administration policies
 Organizational structure
 Location
Acquire Project Team
9.2.2 Tools & Techniques
.1 Pre-assignment – RFP or charter
.2 Negotiation – Functional managers or other teams
.3 Acquisition – outside sources
.4 Virtual teams
Acquire Project Team
9.2.3 Outputs
.1 Project staff assignments
.2 Resource calendars
.3 Project management plan updates
Develop Project Team
 Improve skills of team members

 Improve feelings of trust and cohesiveness

 Create a dynamic, cohesive team culture to

build team spirit and cooperation, cross
training and mentoring
Develop Project Team
9.3.1 Inputs
.1 Project staff assignments
.2 Project management plan
.3 Resource calendars
Develop Project Team
9.3.2 Tools & Techniques
.1 Interpersonal skills
.2 Training
.3 Team-building activities
.4 Ground rules
.5 Co-location
.6 Recognition and Rewards
Team-Building Activities
 Forming

 Storming

 Norming

 Performing

 Adjourning
Team Development
 Performance improvements
◦ Individual skills
◦ Team behavior

 Improvements = increased productivity

Develop Project Team
9.3.3 Outputs
.1 Team performance assessments
Improved skills = + effective
Competencies and sentiments
Reduced turnover rate

.2 enterprise environmental factors updates

Manage Project Team
 Track team member performance, provide
feedback, resolve issues and coordinate
changes

 Difficult in a matrix environment

Manage Project Team
9.4.1 Inputs
.1 Project staff assignments
.2 Project management plan
.3 Team performance assessments
.4 Performance reports
.5 Organizational process assets
Manage Project Team
9.4.2 Tools & Techniques
.1 Observation and conversation
.2 Project performance appraisals
.3 Conflict management
.4 Issue log
.5 Interpersonal skills
Project Conflict
 Schedule (most common issue)

 Priorities

 Resources

 Technical options

 Procedures

 Personalities
Project Life Cycle Conflict
Project Activity Inception Planning Implement Terminate

Schedule 3 2 1 1

Priorities 1 1 4 4

Resources 4 5 3 2*

Technical approach 6 4 2 6

Procedures 2 3 5* 7

Cost 5
*Tied in ranking: Low score indicates7principal cause
5* of conflict5

Personalities 7 6 5* 2*
Conflict Management Modes
 Withdrawal 1
 Smoothing 1
 Compromising 2
 Forcing 2
 Collaborating 2
 Problem Solving 2 or “Confronting” 2

1 Temporary – no resolution
2 Provides resolution
Avoiding Conflict
 Inform team of:
◦ Exactly where project is headed
◦ “SMART” goals & objectives
◦ All key decisions
◦ All changes

 Assigns tasks:
◦ Clearly, no ambiguity or overlap
◦ Interesting & challenging
Problem Resolution
 Complex problems – the team (group) usually
develops a better quality solution than an
individual, but may take longer

 He who experiences a problem “must” solve

the problem
◦ An example follows on the next slide
Problem Resolution
 Two project members are having a “problem”
◦ Who solves the problem?
◦ Who should assist?

 The project schedule is unrealistic.

◦ Who solves the problem?
◦ Who should assists?
Five Sources of Power
 Legitimate – Position

 Coercive – Fear

 Reward - +

 Expert - Knowledge

 Referent - Status
Negotiating Project Conflict
 Separate people from problem

 Focus on interests, not positions

 Insist on using objective criteria

McGregor’s Theory X and Y
 Theory X managers assume:
◦ People dislike work, must be controlled and
directed

 Theory Y manager assume:

◦ Work is natural if conditions are favorable, people
can be self-directed, creative and seek
responsibility; motivation occurs at all “levels”
Maslow’s Hierarchy
1. Physiological Food, shelter

2. Safety Fear of losing #1 or

physical danger

3. Social Accepted

4. Esteem Prestige, power

5. Self-actualization Competence achievement

Herzberg’s Hygiene Factor
 Working conditions

 Salary

 Personal life

 Relationships at work

 Security

 Status
Herzberg’s Motivations
 Responsibility

 Self-actualization

 Professional growth

 Recognition
Manage Project Team
9.4.3 Outputs
.1 Enterprise environmental factors updates
.2 Organizational process assets updates
.3 change requests
.4 Project management plan updates
Herzberg’s Theory
 Hygiene factors – not motivators, per se, but
can destroy motivation

 Motivation agents – work itself in a positive,

constructive environment
Organizational Process Assets
Updates
 Input to organizational performance
appraisals

 Lessons-learned documentation:
◦ Organizational charts, etc., to be saved as
templates
◦ Ground rules, conflict management techniques and
recognition events
◦ Procedures for virtual teams, co-location
◦ Special skills “uncovered”
◦ Documented issues and solutions
Module 8

PROJECT
COMMUNICATIONS
MANAGEMENT
Project Communication Management

Ensuring timely and appropriate

generation, collection, dissemination,
storage and ultimate disposition of
project information
Project Communication Management

 10.1 Identify Stakeholders

 10.2 Plan Communications

 10.3 Distribute Information

 10.4 Manage Stakeholders Expectations

 10.5 Report Performance

Identify Stakeholders
 The success of any project is based upon
identifying all project stakeholders

 Then, know their interests and expectations

from the project and plan accordingly
10.1 Identify Stakeholders
.1 Inputs
.1 Project Charter
.2 Procurement Documents
.3 Enterprise Environmental Factors
.4 Organizational Process Assets
10.1 Identify Stakeholders
.2 Tools & Techniques
.1 Stakeholder Analysis
.2 Expert Judgment
10.1 Identify Stakeholders
.3 Outputs
.1 Stakeholder Register
.2 Stakeholder Management Strategy
Communication Considerations
 Sender – receiver models
 Choice of media
 Writing style
 Presentation techniques
 Meeting management techniques
Plan Communications
Determining information needs:
 Who?
 What?
 When?
 How?
10.2 Plan Communications
.1 Inputs
.1 Stakeholder Register
.2 Stakeholder Management Strategy
.3 Enterprise Environmental Factors
.4 Organizational Process Assets
10.2 Plan Communications
.2 Tools & Techniques
.1 Communication Requirements Analysis
.2 Communication Technology
.3 Communication Models
.4 Communication Methods
Communication Paths
Number of communication paths:
n(n-1)/2

For example, consider 8 people in a meeting

= 8(8-1)/2 = 8(7)/2 = 56/2 = 28 paths

Adding two more to the team gives you how many more
paths of communication?
New path = 10(10-1)/2 = 90/2 = 45

#ofNewPaths - #ofOldPaths
45 – 28 = gives you 17 more paths
Communication Requirements
Analysis
 Organizational charts
 Organization/stakeholder responsibility

relationships
 Disciplines/specialties involved
 Logistics number of people and locations
 Internal information needs (across

organizations)
 External information needs (contractors,

media)
 Stakeholder information
Communication Model
Sender Medium Receiver

Encoder Decoder

 Noise ->

Feedback
Communication Methods
 Interactive communication-between 2 or more parties
performing a multidirectional exchange; most efficient
way to ensure common understanding by all
participants.

 Push communication-sent to specific recipients; ensures

information is distributed but does not certify it actually
reached or was understood by intended audience.

 Pull communication-used for very large volumes of

information; requires recipients to access the
communication content at their own discretion.
10.2 Plan Communications
.3 Outputs
.1 Communication Management Plan
.2 Project Document Updates
Distribute Information

Making needed information available to

project stakeholders on a timely basis
Distribution Techniques
 Sender-receiver models – feedback loops and barriers to communications

 Choice of media – situation specifics of when to communicate in writing

versus orally, when to write an informal memo versus a formal report, and
when to communicate fact-to-face versus by e-mail

 Writing style – active versus passive voice, sentence structure, or work choice

 Meeting management techniques – preparing an agenda and dealing with

conflicts

 Presentation techniques – body language and design of visual aids

 Facilitation techniques – building consensus and overcoming obstacles

10.3 Distribute Information
.1 Inputs
.1 Project Management Plan
.2 Performance Reports
.3 Organizational Process Assets
10.3 Distribute Information
.2 Tools & Techniques
.1 Communication Methods
.2 Information Distribution Tools
10.3 Distribute Information
.3 Outputs
.1 Organizational Process Assets
 Stakeholder notifications
 Project reports
 Project presentations
 Project records
 Feedback from stakeholders
 Lessons learned documentation
10.4 Manage Stakeholder
Expectations
.1 Inputs
.1 Stakeholder Register
.2 Stakeholder Management Strategy
.3 Project Management Plan
.4 Issue Log
.5 Change Log
.6 Organizational Process Assets
10.4 Manage Stakeholder
Expectations
.2 Tools & Techniques
.1 Communication Methods
.2 Interpersonal Skills - building trust, resolving
conflict, active listening, and overcoming resistance
to change
.3 Management Skills – presentation skills,
negotiating, writing skills, and public speaking
Communication Methods
 Verbal impact 10-40% of message

 Non-verbal impact 60-90% of message

 Symbolic Appearance

 Tactile “Touch”
Communication Dimensions
 Written and oral, listening and speaking

 Internal (within the project) and external

(customer, the media, the public)

 Formal (reports, briefings) and informal

(memos, ad hoc conversations)

 Vertical (up and down the organization) and

horizontal (with peers)
10.4 Manage Stakeholder
Expectations
.3 Outputs
.1 Organizational Process Assets Updates
.2 Change Requests
.3 Project Management Plan Updates
.4 Project Document Updates
Organizational Process Assets
Updates-PMBOK, p. 261
 Stakeholder notifications
 Project reports
 Project presentations
 Project records
 Feedback form stakeholders
 Lessons learned documents
Manage Stakeholder Expectations

The process of working with

stakeholders to meet their needs,
address their concerns, and resolve
their issues!
Report Performance
The process of collecting and distributing
performance information, such as:
◦ Status reports
◦ Progress measurements
◦ Forecasts
10.5 Report Performance
.1 Inputs
.1 Project Management Plan
.2 Work Performance Information
.3 Work Performance Measurements
.4 Budget Forecasts
.5 Organizational Process Assets
10.5 Report Performance
.2 Tools & Techniques
.1 Variance Analysis
.2 Forecasting Methods
.3 Communication Methods
.4 Reporting Systems
Variance Analysis
Variance analysis is an after-the-fact look at what caused a
difference between baseline and actual performance.
Common steps are:

 Verify quality of information collected to ensure it is

complete, consistent with past data, and credible when
comparing with other project or status information.

 Determine variances, comparing actual with project baseline

and noting all differences both favorable and unfavorable to
project outcomes.

 Determine the impact of variances in project cost and

schedule as well as other areas of the project (i.e., quality
performance adjustments and scope changes, etc.).
Forecasting Methods
 Time series methods – uses historical data as the basis for
estimating outcomes.
Earned value Moving average Extrapolation
Linear prediction Trend estimation Growth curve

 Causal/econometric methods – use assumptions to identify

underlying factors that might influence variable being forecasted

 Judgmental methods – incorporate intuitive judgments, opinions,

and probability estimates (composite forecasts, surveys, Delphi
method, scenario building, technology forecasting, and forecast by
analogy)

 Other methods – include simulation, probabilistic forecasting, and

ensemble forecasting
10.5 Report Performance
.3 Outputs
.1 Performance Reports
.2 Organizational Process Assets Updates
.3 Change Requests
Module 9

PROJECT
RISK
MANAGEMENT
PROJECT RISK MANAGEMENT
Identifying, analyzing and responding to
project risk.

Objectives of Project Risk Management are to

increase the probability and impact of positive
events, and decrease the probability and
impact of negative events in the project.
PROJECT RISK MANAGEMENT
11.1 Plan Risk Management
11.2 Identify Risks
11.3 Perform Qualitative Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk Responses
11.6 Monitor & Control Risks
RISK MANAGEMENT
To be successful, the organization should be
committed to addressing the management
of risk proactively and consistently
throughout the project.
PLAN RISK MANAGEMENT
Plan Risk Management is the process of
deciding how to conduct risk management
activities for a project.
11.1 Plan Risk Management
.1 Inputs
.1 Project Scope Statement
.2 Cost Management Plan
.3 Schedule Management Plan
.4 Communications Management Plan
.5 Enterprise Environmental Factors
.6 Organizational Process Assets
Enterprise Environmental Factors

The attitudes toward risk and the risk tolerance

of organizations and people involved in the
project will influence the Project Management
Plan.
Organizational Process Assets
Organizations may have predefined approaches
to risk management, such as:
 risk categories,
 common definitions of concepts and terms,
 standard templates,
 roles and responsibilities and
 authority levels for decision-making.
11.1 Plan Risk Management
.2 Tools & Techniques
.1 Planning Meetings and Analysis
11.1 Plan Risk Management
.3 Outputs
.1 Risk Management Plan
RISK MANAGEMENT PLAN
The risk management plan describes the following:
◦ Structure and performance
◦ Methodology
◦ Roles & responsibilities
◦ Budgeting
◦ Timing
◦ Risk categories
◦ Definitions of risk probability and impact
◦ Probability and impact matrix
◦ Revised stakeholders’ tolerances
◦ Reporting formats
◦ Tracking
IDENTIFY RISKS
Determining and documenting risks likely to
affect the project.
11.2 Identify Risks
.1 Inputs
.1 Risk Management Plan
.2 Activity Cost Estimates
.3 Activity Duration Estimates
.4 Scope Baseline
.5 Stakeholder Register
11.2 Identify Risks
.1 Inputs (continued)
.6 Cost Management Plan
.7 Schedule Management Plan
.8 Quality Management Plan
.9 Project Documents
.10 Enterprise Environmental Factors
.11 Organizational Process Assets
RISK INDICATORS
 Cause-and-effect diagrams

 Management plans vs. cost/time/quality

estimates

 Project assumptions vs. performance reports

 Earned value
Enterprise Environmental Factors

Published information, including commercial

databases, academic studies, benchmarking,
or other industry studies, may also be useful
in identifying risks.
11.2 Identify Risks
.2 Tools & Techniques
.1 documentation Reviews
.2 Information Gathering techniques
.3 Checklist Analysis
.4 Assumptions Analysis
.5 Diagramming Techniques
.6 SWOT Analysis
.7 Expert Judgment
Information Gathering Techniques
 Brainstorming

 Delphi technique

 Interviewing

 Root cause identification

 Strengths, weaknesses, opportunities, and

threats analysis (SWOT)
Checklist Analysis
Risk identification checklists can be developed
based on historical information and
knowledge that has been accumulated from
previous similar projects and from other
sources of information
Diagramming Techniques
 Cause-and-effect diagrams
◦ Also known as fishbone or Ishikawa diagrams

 System of process flowcharts

 Influence diagrams
Cause-and-Effect Diagram
Materials Work Methods

Defect

Equipment Measurements

POTENTIAL CAUSES EFFECT

Sample Process Flowchart
11.2 Identify Risks
.3 Outputs
.1 Risk Register
 List of identified risks
 List of potential responses
Qualitative Risk analysis
Qualitative Risk Analysis includes methods for
prioritizing the identified risks for further
action, such as Quantitative Risk Analysis or
Risk Response planning.
11.3 Perform qualitative Risk Analysis

.1 Inputs
.1 Risk Register
.2 Risk Management Plan
.3 Project Scope Management
.4 Organizational Process Assets
Organizational Process Assets
Data about risks on past projects and the
lessons learned knowledge base can be used
in the Qualitative Risk Analysis process.
11.3 Perform Qualitative Risk
Analysis
.2 Tools & Techniques
.1 Risk Probability and Impact Assessment
.2 Probability and Impact Matrix
.3 Risk Data Quality Assessment
.4 Risk Categorization
.5 Risk Urgency Assessment
.6 Expert Judgment
11.3 Perform Qualitative Risk
Analysis
.3 Outputs
.1 Risk Register Updates
 Relative Ranking or Priority List
 Risks Grouped by Categories
 Causes of risk or project areas requiring particular attention
 List of Risks Requiring Response in the Near Term
 List of Risks for Additional Analysis & Response
 Watch lists of Low Priority Risks
 Trends in Qualitative Risk Analysis Results
Perform Quantitative Risk Analysis

A Quantitative Risk Analysis is generally

performed on risks that have been prioritized
by the Qualitative Risk Analysis process as
potentially and substantially impacting the
project’s competing demands.
11.4 Perform Quantitative Risk
Analysis
.1 Inputs
.1 Risk Register
.2 Risk Management Plan
.3 Cost Management Plan
.4 Schedule Management Plan
.5 Organizational Process Assets
Quantitative Risk Analysis
Quantitative Risk Analysis generally follows the
Qualitative Risk Analysis process, but
sometimes is performed directly after Risk
Identification.

Quantitative Risk Analysis should be repeated

after Risk Response Planning and Risk
Monitoring and Control.
11.4 Perform Quantitative Risk
Analysis
.2 Tools & Techniques
.1 Data Gathering and Representation Techniques
.2 Quantitative Risk Analysis and Modeling Techniques
.3 Expert Judgment
Data Gathering & representation
Techniques
 Interviewing – quantify the probability and
impact of risks on project

 Probability distribution – Evaluate range of

estimates

 Expert judgment – Internal or external SMEs

Quantitative risk Analysis and
Modeling Techniques
 Sensitivity analysis - Examines the extent of
uncertainty of each project element – other
elements held constant

 Expected monetary value - EMV

 Decision tree analysis

 Modeling and simulation – Monte Carlo

Expected Value
The sum of each probability of occurrence
times the dollar value of the occurrence
Calculating Expected Value
Decision Tree
Results from Monte Carlo Simulation
of a Project Schedule
11.4 Perform Quantitative Risk
Analysis
.3 Outputs
.1 Risk Register Updates
 Probabilistic analysis of the Project
 Probability of Achieving Cost and Time Objectives
 Prioritized List of Quantified Risks
 Trends in Quantified Risk Analysis Results
Plan Risk Responses

Developing options and determining

actions to enhance opportunities and
to reduce threats.
11.5 Plan Risk Responses
.1 Inputs
.1 Risk Register
.2 Risk Management Plan
11.5 Plan Risk Responses
.2 Tools & Techniques
.1 Strategies for Negative Risks or Threats
.2 Strategies for Positive risks or Opportunities
.3 Contingent Response Strategies
.4 Expert Judgment
Risk Register
 The risk register is first developed in the
Identify Risks process. It is updated during
the qualitative and quantitative processes.

 Important inputs are: priority lists, near term

risks, trends, root causes, risks grouped by
category, risks for additional analysis and
response.
Strategies for Negative Risks or
Threats
 Avoid

 Transfer

 Mitigate (reduce odds or impact)

 Accept (active or passive)

Strategies for Positive Risks or
Opportunities
 Exploit

 Share

 Enhance (increase odds or impact)

 Accept
11.5 Plan Risk Responses
.3 Outputs
.1 Risk Register Updates
.2 Risk-related Contract Decisions
.3 Project Management Plan Updates
.4 Project Document Updates
Monitor and Control Risks
The process of implementing risk response
plans, tracking & reanalyzing risks and
reviewing the execution of risk response
plans while evaluating their effectiveness.
11.6 Monitor and Control Risks
.1 Inputs
.1 Risk Register
.2 Project Management Plan
.3 Work Performance Information
.4 Performance Reports
11.6 Monitor and Control Risks
.2 Tools & Techniques
.1 Risk Reassessment
.2 Risk audits
.3 Variance and Trend Analysis
.4 Technical Performance Measurement
.5 Reserve Analysis
.6 Status Meetings
11.6 Monitor and Control Risks
.3 Outputs
.1 Risk Register Updates
.2 Organizational Process Assets Updates
.3 Change Requests
.4 Project Management Plan Updates
.5 Project Document Updates
Risk Register Updates
 Outcomes of risk reassessments, risk audits,
and periodic risk reviews, including updates
to probability, impact, priority, response plans

 Risks that are no longer applicable may be

closed

 The actual outcomes of the project’s risks and

of risk responses are documented for use on
future projects
Disposition of Monitor & Control
Risks Data
 Requested changes
◦ To integrated change control and response plans

 Recommended corrective actions

◦ To direct and manage project execution & monitor
and control work processes

 Organizational process assets

◦ Document final versions of the risk register, risk
templates, checklists and the RBSs
Module 10

PROJECT
PROCUREMENT
MANAGEMENT
Project Procurement Management

Acquiring goods and services from outside the

performing organization.
Project Procurement Management

12.1 Plan Procurements

12.2 Conduct Procurements
12.3 Administer Procurements
12.4 Close Procurements
12.1 Plan Procurements
Determining what to procure and form whom

.1 Inputs
.1 Scope Baseline
.2 Requirements Documentation
.3 Teaming Agreements
.4 Risk Register
.5 Risk-Related Contract Decisions
12.1 Plan Procurement (con’t)
.1 Inputs
.6 Activity Resource Requirements
.6 Project Schedule
.8 Activity Cost Estimates
.9 Cost Performance Baseline
.10 Enterprise Environmental Factors
.11 Organizational Process Assets
Enterprise Environmental Factors

Enterprise environmental factors include the

conditions of the marketplace and what
products, services, and results are available
in the marketplace, from whom and under
what terms and conditions.
Organizational Process Assets
Organizational process assets are the existing
formal and informal procurement-related
policies, procedures, guidelines and
management systems… in the procurement
management plan and selecting the contract
types.
12.1 Plan Procurements
.2 Tools & Techniques
.1 Make-or-Buy Analysis
.2 Expert Judgment
.3 Contract Types
Contract Types
 Fixed-Price Contracts
◦ Firm fixed price (FFP)
◦ Fixed price incentive fee (FPIF)
◦ Fixed price with economic price adjustments (FP-EPA)

 Cost-Reimbursable Contract
◦ Cost-plus-fixed-fee (CPFF)
◦ Cost-plus-incentive-fee (CPIF)
◦ Cost-plus-award-fee (CPAF)

 Time & Material (T&M)

12.1 Plan Procurements
.3 Outputs
.1 Procurement Management Plan
.2 Procurement Statements of Work
.3 Make-or-Buy Decisions
.4 Procurement Documents
.5 Source Selection Criteria
.6 Change Requests
Procurement Statement of Work
 SOW description in sufficient detail

 SOW is written to be clear, complete and

concise

 SOW can be revised and refined as required

until incorporated into a signed contract
Conduct Procurement
Conduct procurements is the process of
obtaining seller responses, selecting a seller,
and awarding a contract.
12.2 Conduct Procurements
.1 Inputs
.1 Project Management Plan
.2 Procurement Documentations
.3 Source Selection Criteria
.4 Qualified Seller List
.5 Seller Proposals
.6 Project Documents
.7 Make-or-Buy Decisions
.8 Teaming Agreements
.9 Organizational Process Assets
12.2 Conduct Procurements
.2 Tools & Techniques
.1 Bidder conferences
.2 Proposal Evaluation Techniques
.3 Independent Estimates
.4 Expert Judgment
.5 Advertising
.6 Internet Search
.7 Procurement Negotiations
12.2 Conduct Procurements
.3 Outputs
.1 Select Sellers
.2 Procurement Contract Award
.3 Resource Calendars
.4 Change Requests
.5 Project Management Plan
.6 Project Documents Updates
Administer Procurements
The process of managing procurement
relationships, monitoring contract
performance, and making changes and
corrections as needed.
12.3 Administer Procurements
.1 Inputs
.1 Procurement Documents
.2 Project Management Plan
.3 Contract
.4 Performance Reports
.5 Approved Change Requests
.6 Work Performance Information
12.3 Administer Procurements
 .2 Tools & Techniques
◦ .1 Contract Change Control System
◦ .2 Procurement Performance Reviews
◦ .3 Inspections and Audits
◦ .4 Performance Reporting
◦ .5 Payment Systems
◦ .6 Claims Administration
◦ .7 Records Management System
12.3 Administer Procurements
.3 Outputs
.1 Procurement Documents
.2 Organizational Process Assets Updates
.3 change Requests
.4 Project Management Plan Updates
Close Procurements
The process of completing each project
procurement
12.4 Close Procurements
.1 Inputs
.1 Project Management Plan
.2 Procurement Document
12.4 Close Procurements
.2 Tools & Techniques
.1 Procurement Audits
.2 Negotiated Settlements
.3 Records Management System
12.4 Close Procurements
.3 Outputs
.1 Closed Procurements
.2 Organizational Process Assets Updates
 Procurement File
 Deliverable Acceptance
 Lessons Learned Documentation
Module 11

PROFESSIONAL
RESPONSIBILITY
PMI’s Code of Ethics and Professional
Conduct
Chapter 1 Vision & Applicability

Chapter 2 Responsibility

Chapter 3 Respect

Chapter 4 Fairness

Chapter 5 Honesty
Ch. 1- Vision & Applicability
1.1 Vision & Purpose
Practitioners do what is right and honorable

1.2 Person to Whom the code Applies

PMI members and non-member PMPs

1.3 Structure of the Code

Aligned with critical values

1.4 Values that Support the Code

Responsibility, respect, fairness and honesty
Ch. 1 - Vision & Applicability
1.5 Aspirational and Mandatory Conduct

◦ Aspirational – the conduct that we strive to uphold

as practitioners

◦ Mandatory – establish firm requirements, and in

some cases, limit or prohibit practitioner
Ch. 2 - Responsibility
2.1 Description of Responsibility
◦ Our duty to take ownership for our decisions and
actions and accept the consequences that result.

2.2 Responsibility: Aspirational Standards

◦ Decisions & actions based upon best interest of
society, public safety and the environment.

◦ Accept only assignments consistent with our

background, experience, skills and qualifications.
Ch. 2 - Responsibility (con’t)
2.3 Mandatory Standards
◦ Uphold the policies, rules, regulations and laws that
govern our work.

◦ Report unethical or illegal conduct to appropriate

management and, if necessary, to those affected by
the conduct.
Ch. 3 - Respect
3.1 Description of Respect
◦ Regard for ourselves and others, as well as entrusted
resources.

3.2 Respect: Aspirational Standards

◦ Inform ourselves about norms and customs of others.

◦ Listen to other points of view.

◦ Approach directly those with whom we have a conflict or a

disagreement.

◦ Conduct ourselves professionally, even if it is not returned.

Ch. 3 – Respect (con’t)
3.3 Mandatory Standards
◦ Negotiate in good faith
◦ Do not benefit at the expense of others.
◦ Do not act in an abusive manner.
◦ Respect the property rights of others.
Ch. 4 - Fairness
4.1 Description of Fairness
◦ Objective and impartial decisions

4.2 Fairness: Aspirational Standards

◦ Transparency in decisions.
◦ Continually re-examine impartiality and objectivity.
◦ Equal access to information.
◦ Equal opportunity to qualified candidates.
Ch. 4 – Fairness (con’t)
4.3 Fairness: Mandatory Standards
◦ Disclose any real or potential conflicts of interest.

◦ Refrain from decision-making where a conflict of

interest exists, unless previously disclosed and
continued participations is requested.
Ch. 5 - Honesty
5.1 Description of Honesty
◦ In our communications and conduct.

5.2 Honesty: Aspirational Standards

◦ Seek and communicate the truth.

◦ Provide accurate information in a timely fashion.

◦ Commitments and promises made in good faith.

◦ Create an environment in which others are safe to tell the truth.

Ch. 5 – Honesty (con’t)
 5.3 Honesty: Mandatory Standards
◦ Do not make or condone deceptive behavior, false
or misleading statements, half truths, information
that is out of context or incomplete.

◦ Do not engage in dishonest behavior for personal

gain or at the expense of others.
AREAS OF CONCERNS
 Conflicts of Interest

 Abusive Manner

 Loyalty
PMP Exam ‘Blueprint’ Elements
4 Components; 16 Questions

1. Ensure personal integrity and professionalism

by adhering to legal requirements, ethical
standards and social norms, in order to protect
the community and all stakeholders and to
create a healthy working environment.
PMP Exam ‘Blueprint’ Elements
3. Enhance personal professional competence
by increasing and applying knowledge, in
order to improve project management
services.
PMP Exam ‘Blueprint’ Elements
4. Promote interaction among team members
and other stakeholders in a professional and
cooperative manner by respecting personal
and cultural differences, in order to ensure a
collaborative project management
environment.