00 IGTR CIPM Handouts April 2014
Transcript of 00 IGTR CIPM Handouts April 2014
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Organised by
Centrefor Excellence in Project Management (P) Ltd.
A-48, Sector 5, Noida 201301
Tel: (0120) 242-0444, 242-0463 M: +91 9999 684 632Email: [email protected] & [email protected]
for
Three Day Workshop
on
leading to the Cert ificate In Project Management (CIPM)
Totality of Project Management
7 - 9 April 2014
Indo German Tool Room
Aurangabad
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Three day Workshop on
Totality of Project Management
Leading to the
Certification in Project Management (CIPM)
Workshop Agenda
Centre for Excellence in Project Management (P) Ltd. (CEPM) 2014
A - 48, Sector - 5, Noida - 201 301, India Tel.: (120) 242 0444, 242 0463 Fax: (120) 242 1482
Email: [email protected] Website: http://www.cepm.com
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Day 1
0930 - 0945 Inauguration- Saraswati Invocation- Introduction
0950 - 1100 Project Management Knowledge (PMKQ) TestProject, Programme, OperationsProject Management
1100 - 1120 Tea Break
1120 - 1315 Project Life CycleNeed AnalysisProject StakeholdersBusiness Case
- Payback Period, NPV, IRRProject CharterProject Management PlanPractice Q&As
1315 - 1400 Lunch
1400 - 1510 Success Criteria for projectScope & Deliverables Management
- Work Breakdown Structures
1510 - 1530 Tea Break
1530 - 1745 Time Management
Network Diagrams- Critical Path analysis (CPM)
- Bar charts- Resource Histograms- PERT, Standard Deviation
Duration Compression- Crashing- Fast Tracking
Practice Q&As
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Three day Workshop on
Totality of Project Management
Leading to the
Certification in Project Management (CIPM)
Workshop Agenda
Centre for Excellence in Project Management (P) Ltd. (CEPM) 2014
A - 48, Sector - 5, Noida - 201 301, India Tel.: (120) 242 0444, 242 0463 Fax: (120) 242 1482
Email: [email protected] Website: http://www.cepm.com
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Day 2
0930 - 1100 Cost ManagementCost EstimationCost BudgetingEarned Value Management System
Practice Q&As
1100 - 1120 Tea Break
1120 - 1315 Quality Management Quality Planning, Assurance, Control
- Quality toolsPractice Q&As
1315 - 1400 Lunch
1400 - 1510 Risk Management- Risk identification- Qualitative and Quantitative Risk analysis- Risk Response Strategies
Practice Q&As
1510 - 1530 Tea Break
1530 - 1745 HR Management Organization Structures
Roles & ResponsibilitiesResponsibility Assignment MatrixTeamworkConflict ManagementLeadershipMotivating Team Members
Practice Q&As
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Three day Workshop on
Totality of Project Management
Leading to the
Certification in Project Management (CIPM)
Workshop Agenda
Centre for Excellence in Project Management (P) Ltd. (CEPM) 2014
A - 48, Sector - 5, Noida - 201 301, India Tel.: (120) 242 0444, 242 0463 Fax: (120) 242 1482
Email: [email protected] Website: http://www.cepm.com
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Day 3
0930 - 1100 Communication ManagementInformation & ReportsProcurement & Contract Management
Practice Q&As
1100 - 1120 Tea Break
1120 - 1215 Procurement & Contract Management (Contd.)
1215 - 1315 NegotiationChange Control processesConfiguration ManagementIntegrationProblem SolvingDeliver & CloseoutLessons LearnedPractice Q&As
1315 - 1400 Lunch
1400 - 1500 Mock Test (60 Minutes)
1500 - 1520 Mock Test Discussion
1520 - 1540 Tea Break
1545 - 1745 CIPM f inal Examination (2 hrs)- CIPM exam is administered by the Institute of ProjectManagement Certification ( IPMC), the national PM CertificationBody of PMA, India
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The CIPM examinationThe CIPM examination
Is AdministeredIs Administered
byby
PMAPMA
The Indian National Certification body ofThe Indian National Certification body of
International Project Management AssociationInternational Project Management Association
(IPMA), Switzerland(IPMA), Switzerland
IPMA membership across 56+IPMA membership across 56+ countriescountries
Some Leading companies that have opt ed for CIPM
NTPC
NHPC
Coal India
Adan i Power
Avera
Bharat Hotels
Fortis Healthcare
GAIL
HCL Technologies
Indian Oil
IL&FS Property Mgmt
Lanco
Idea Cellu lar
Jindal Steel & Power
Mazagon Dock Ltd.
Max Health care
GENPACT
MECON
North Delhi Power Ltd
Numaligarh Refinery
Neyveli Lignite
Nuclear Power
Oil India Ltd
Philips Carbon Black
Rail Vikas Nigam Ltd
RITES Ltd.
Power Grid Corp.
SAIL
Tehri Hydro
Xansa (India) Ltd
CIPM Exam consists of 1 PaperCIPM Exam consists of 1 Paper
Total Time: 2 Hours
Total Questions: 125 multiple choice
questions in 4 sections
Total Marks :Total Marks: 175175
Passing Score: Overall 60%
50% in each section Must
CIPM ExamCIPM Exam has 3 Types of Questionshas 3 Types of Questions
Type 1:Type 1: Has 1 answer fromHas 1 answer fr om 44 opti ons.options.
CarriesCarries 11 markmark
Type 2:Type 2: Has 1 answer fromHas 1 answer from 55 options.options.
CarriesCarries 22 marksmarks
Type 3:Type 3: Select 1 answer fr omSelect 1 answer fr om 44 options.options.Needs calcul ations. Carri esNeeds calculati ons. Carries 55 marksmarks
Negative Marking: 25% of the marks fo r the questi onNegative Marking: 25% of the marks fo r the questi on
CIPM ExamCIPM Exam BreakBreak--up of Questionsup of Questions
Section
Type 3Questions5 marksper Qstn
Type 2Questions
2 marks perQstn
Type 1Questions1 mark per
Qstn
Total
marksin
Paper
Passmarks
Sections
50%
Paper
60%
1 2 (10 mks) 5 (10 mks) 15 (15 mks) 35 17
2 4 (20 mks) 11 (22 mks) 28 (28 mks) 70 35
3 - 5 (10 mks) 25 (25 mks) 35 17
4 - 5 (10 mks) 25 (25 mks) 35 17
Total no.of Qstns
in Paper
6 out of125 Qstns
26out of125 Qstns
93 out of125 Qstns
175 105
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Cer t i f i ca t ion In Pro jec te r t i f i ca t ion In Pro jec tManagementCIPM)
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To ta l i t y o f Pro jec t Managemento ta l i t y of Pro jec t ManagementLead ing to
2014 CEPM
What is a Project?
Means of converting Vision to Reality
A set of act iv it ies undertaken to meet
specific objectives for changes
A temporary endeavor undertaken to create
a unique product, service or result
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New products / services / Business
processes / Infrastructure
Changes in existing products and services
Projects can be undertaken for:
Projects are undertaken for diverse reasons:
Business
Industry
Government
Social sector
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What is a Project?
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What is a Project?
Project has following Characteristics:
Temporary have a defini te beginning and an end
Unique no two pro jec ts are ident ical
Predefined goals & objectives financial/ soc ial /economic
Budgets & schedules prefixed budget and t imeframe
Uses Resources & Manpower bo th are l imi ted
Quality / Performance determined at beg inning
Face Risks known and unknown risks
Have a Project Li fe cycle many phases f rom start to end
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What is a Programme?
Management of a coherent group or a
collection of projects that are related to a
common objective to deliver additional
benefits to the organization.
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What is a Programme?
A group of projects related to a common
objectives e.g. business aim
An interdependency between number of projects
Creating more benefit for the organization
Resource allocation amongst a portfo lio of projects
Achieve overal l benefi ts for the business not jus t
for a project
An organizations business st rategy required to
be implemented through projects
Programme management can cover:
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Project Life Cycle
Project Life Cycle (PLC):
Length of each phase will vary
Each phase associated with major processes anddeliverables
Names used to describe each phase will vary
A PLC is a sequence of phases from project start to pro jectend
Generically there are 4 phases :Start or Concept phase,Planning phase , Execution Phase & Delivery/CloseoutPhase
However, Number of Phases in PLC wil l vary depending onthe industry or sector
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Project Life Cycle
5. Requirements
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What is a Project?
Project Life Cycle:
Conceptualize
Plan
Organize
Implement
Control
Integrate
Deliver & Closeout
Knowledge Leverage
In CIPM, the PLC is div ided into these 8 generic phases
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Project Life Cycle
Work can be broken up into manageableblocks or phases
Each phase has specif ic deliverables More efficient allocation of all kinds of
resources requirements vary with phase
Better cost control funds needed for next phase,procurement can be planned & released as needed
Allows better planning, scheduling, est imating& control
Some Advantages of a Project Life Cycle:
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Characteristics Of A Life Cycle
High
Low
Opportunity to add Value
Cost to make change
Life Cycle of Project (Time)
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Characteristics Of A Life Cycle
High
Low
Uncertainty of Success
Amount at Stake
Life Cycle of Project (Time)
Low
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Project Management
What is Project Management (PM)?
Project Management is the
application of processes, knowledge,
skills, tools and techniques to meet
project requirements and to produce
deliverables within specified goals &
objectives.
Project Management is the mostefficient way for implementing
unique changes
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Project Management
Project Management manages and controls the
project work by:
Planning the work in detail : Why, What, Who,
When, Where, How and How Much
Understanding specific requirements of all
Stakeholders that may be conf licting
Identifying the Scope, Time, Cost andQuality/performance criteria and potential risks
Making one person, generally the project manager
accountable for the project
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Project Management
Project Management manages and controls theproject work by:
PM combines Hard and Soft skills
Hard skills Technology, Tools & Techniques,Processes
Soft skills Leadership, Team Building,Communication, Decision Making, Trust Building,Conflict Management, Coaching, Political andCultural Awareness
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Project Stakeholders
Who is a Stakeholder?
All indiv iduals, groups and organizat ionsdirectly involved in the project or that maybe affected by the project activities and the
project outcome
Understanding and Managing stakeholderneeds and requirements is cr itical for project
success
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A stakeholder could be:
Passively involved in the project
Actively involved in the project work and projectoutcome
Positive about the project and help the Project tosucceed
Negative about the project and be opposed to it
A Stakeholder
can help or hinder the project
Project Stakeholders
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Key Stakeholders are:
Project Manager - is overall responsible to ensure projectmeets it 's goals and objectives
Project Sponsor represents top management . Isresponsible to ensure funds available and to provideoverall, high level guidance to pro ject
Team Members perform the work. At core of success
Customer / Client indiv idual /group /organization thatwill use the deliverables. Can have one or many
Performing organization employs the people engagedin project work. Internal project or external project
Project Stakeholders
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Stakeholder Analysis:
Stakeholders are classified according to their interest, influence
and invo lvement in project.
Project manager should follow below steps while doing stakeholder
analysis :
Step 1 : Stakeholder Identification
Identify all potential project stakeholders and relevant information
such as their roles, departments, interest, knowledge levels,
expectations and influence levels .
Key stakeholders are easy to identify. Other stakeholders usually
identified by interviewing identified stakeholders and expanding the
list until all potential stakeholders included.
Stakeholder Analysis
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Step 2 : Analyze Stakeholder Authority , Interest and Influence
Identify potential impact or support each stakeholder could generate
and classify them so as to define an approach strategy .
Multiple classification models available e.g.
Power / interest grid ( Autho rity / Concern) Power / influence grid (Authority / involvement )
Influence / impact grid (Invo lvement / ability to effect changes)
Stakeholder Analysis
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Keep SatisfiedManageClosely
Monitor(Minimum
effort)
KeepInformed
Low High
High
Low
Power
Interest
Power/Interest grid for mapping s takeholders
Manage closely High interest & high power in project High interest, less power keep informed
Monitor Low interest, low power
Low interest, high power keep satisfied
Step 3 : Develop strategies to manage stakeholders expectations
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Need Analysis goes through three phases Need Emergence, Need Recognit ion & Need
Articu lat ion
Needs RecognitionThe Need is recognized by the organization
- its validity and urgency is studied and ratedagainst other needs
Needs EmergenceA Need Emerges in organizat ion from any level
for a new requirement
Need Analysis Cycle
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Need for Change
Needs ArticulationThe Need is evaluated
Need Analysis
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Business Case
A Key document in the project that shows thejusti fication for undertaking the pro ject
i.e. the why of the project
Used to make a decision of whether toinvest in the project or not - justifies theinvestment
Business Case is owned by the Sponsor &Sponsor is responsible for it s development
Is developed from the Need statement
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Is the time expected to be taken by the proposedproject to get a financial return equal to the originalinvestment made
Payback Period is achieved when the cumulative
cash flow becomes equal to the init ial investment
Does not consider the whole life span of the project -
calculation stops once the original investment hasbeen recovered
Payback Period
Investment Appraisal
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Payback Period
Initial Investment (year 0) = 100K
Payback period for Project A is 4 years 2.57 months
Cash Flow up to year 4 = 85K
Shortfall of 15K (100K - 85K)
Cash Flow in year 5 = 70K
Per month cash Flow in year 5
= 70K / 12 = 5,833
15K / 5833 = 2.57 months
Cash Flow = 100,000 in 4 years
2.57 months
Investment Appraisal
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Is s imple to use
Good as an initial fil ter
Standard technique used worldwide
Favours projects with faster returns, better for liquidity
Effective for high risk situations
Payback Period - Advantages
Investment Appraisal
Ignores the Time Value of money
Does not consider project cash flows after PaybackPeriod has been reached
Not good for long term projects
Payback Period - Disadvantages
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Discounted Cash Flow (DCF) method
Relates future cash flows over the projects
life to a common base value
DCF based on fact that the value of moneydepreciates with time
Expected Cash flows are adjusted formoney over time
Discounting Cash Flow gives more realisticpicture of potential projects feasibili ty
Investment Appraisal
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Net Present Value (NPV)
Internal Rate of Return (IRR)
Used by two key Investment appraisaltechniques:
Discounted Cash Flow (DCF) method
Investment Appraisal
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Net Present Value (NPV)
Differ in Time spans, Initial Investments, andCash Flows
Higher the NPV, better the project
NPV helps to compare viability of projects that:
Expected Cash flows adjusted for money over t ime
Reject any project having Negative NPV
Quantifies expected profit in absolute terms
Investment Appraisal
Shows projects net value in today's monetary terms
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Step 1:Calculate Cash Flow for each year (Income -
Expenses)
Step 2:Calculate the PV for each year - discount annual
cash flow by the given Discount Rate
Step 3:Sum up the Present Values calculated for eachyear
Step 4:Subtract project's Initial Investment f rom
cumulative Present Values to obtain the project s NPV
Net Present Value (NPV)
Investment Appraisal
Present Value (PV) = FV / (1 + r)n
FV = Future Value; r = Discount rate; n = No. of years
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Investment Appraisal
Calculating NPV
Year 0 = Initial Investment Discount (Interest) Rate is 10%
Discount Factor @ 10% is given Year 1 = 25 x .91 or 25 / 1.10= 22.7
Year 2 = 25 x .83 or 25 / 1.210(1.10 x 1.10) = 20.75
Year 3 = 20 x .75 or 20 / 1.331(1.10 x 1.10 x 1.10) = 15.00
Year 4 = 15 x .68 or 15 / 1.464(1.10 x 1.10 x 1.10 x 1.10) =10.20
Cumulative PV = 112,100
NPV = 112.100 less 100,000 = 12,100
Year 5 = 70 x .62 or 70 / 1.610(1.10 x 1.10 x 1.10 x 1.10 x 1.10)= 43.40
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Investment Appraisal - NPV
Disadvantages
Accuracy depends on
how well future cash
flows and discount rate
is predicted
Does not consider non-
financial data
Has bias towards shortterm projects
Advantages
NPV is more realistic
considers time value of
money
Considers whole life
span of product / service
from project beginning
to product termination
Higher the Discount rate, Lower the NPV
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Investment Appraisal
IRR is the Discount Rate at whichNPV for project = 0
Shows the Discount Rate at whichproject will break even
IRR expresses profitability as apercentage while NPV expressedprofitability in absolute terms
Internal Rate of Return (IRR)
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Higher the IRR, better the project
IRR arrived at by trial and error
Higher the Discount rate (Interestrate) lower the NPV
Calculated to nullify impact of timevalue of money on proposed project
Investment Appraisal
Internal Rate of Return (IRR)
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How Project Comes into Existence ?
NeedAnalysis
ProjectManagement
Plan
BusinessCase
ProjectCharter
Business Case Approval
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Name of Project Manager
Expected project budget
Assumptions / constraints
High level description of product/serviceto be delivered by the project
Milestone schedule showing summary ofrequired completion dates
Organizations/departments to be involved
Contents of Project Charter
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Why Managements statement of success criteria
What What are we going to accomplish
Who Who will do the work
When Schedules to do work
How PMs vision of doing the work: Resources,Tools & techniques, IT needs, Technical issues,Quality, validation & testing, Risk management,Procurement, Change management etc.
How much project costs and budget
Answers to the fol lowing:
Project Management Plan (PMP)
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Project Management Plan (PMP)
Detailed planning done for di fferent aspects ofproject & in tegrated into a single plan known as theProject Management Plan (PMP)
PMP is key document of the project
Is owned by the Project Manager
Is used to control the project
Forms the baseline of project
Developed by Project Manager with project team
Approved by the Sponsor / cl ient
Should be accepted by Sponsor & project team
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The Project Management Plan contains :
Project Management Plan (PMP)
1. Scope Management Plan2. Schedule Management Plan3. Cost Management Plan
4. Staffing (HR) Management Plan5. Communication Management Plan6. Procurement Management Plan7. Risk Management Plan8. Quality Management Plan9. Process Improvement Plan
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Project Management Plan (PMP)
10. Scope Baseline11. Schedule Baseline12. Cost Baseline13. Quality baseline14. Risk Register15. Milestone List
16. Resource Calendar17. Change Management Plan18. Configuration Management Plan
The Project Management Plan contains:
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Success Criteria
What is Success Criteria?
Criteria by which project success will bejudged by stakeholders
Success cr iteria should be clearly defined
with stakeholders at project beginningIncludes Internal & External parameters
Traditional view - a project is successful ifcompleted on time, within budget andmeet's required quality/performance criteria
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Success Criteria
What is Success Criteria?
Different stakeholders have differentsuccess criteria for same project whichmay conflict e.g.
Business objectives for undertaking project
Key deliverables
Key parameters l ike Time , Cost
Customer Satisfaction
Quality requirements
KPIs meeting stakeholder specifications
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Success Criteria
What is Success Criteria?
Key Performance Indicators (KPIs)
The measurable values of success criteriaare known as Key Performance Indicators
KPIs help to achieve the success cr iteriaby allowing PM to take corrective actionstimely
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Project Success Factors
Goals and Objectives are clear and agreed wi th
stakeholder
Support from senior management
Clear Scope from c lient / sponsor / users
Timely communication with all stakeholders
Motivated team / Positive atti tude of team members
Subject matter expertise
Realistic Schedule and Cost Estimates
Continuous Risk assessment and management
Factors required for success more within control of
the Client ,PM, Sponsor, team, top management etc.
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Triple Constraints of Project Management
Conventionally, projects focus on three major
aspects of Scope, Time and Cost
Maintaining Quality is implied in the pro ject
Challenge is to manage all 3 sides
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Scope Management Plan
How total scope will be managed & control led
How scope wi ll be identified, defined, classif ied,documented, managed and integrated into theproject
How WBS wil l be developed
How scope changes made after WBS is f inalizedwill be managed & integrated into project
Scope Management Plan descr ibes the varioussteps needed to manage projects scope and thescope changes
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Scope Planning
Develops the Scope Statement
Scope statement acts as agreement forunderstanding between project team & customer
Scope Statement is a detailed, descript ion of thework required to be done to deliver the projectsproduct or service or result.
First a broad, macro level planning done then themicro level detailed planning done
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Product Scope Description - Characteristics of theProduct, Services or Result
Product acceptance Criteria
Project Objectives - Measurable success criteria e.g.Cost, schedule, quality or Business objectives
Project Deliverables - Product, Services or Results ofthe project including ancillary results (Reports and
Documentation) Project Requirements - Conditions or capabilities that
must be satisfied by the Deliverables as specified in the
contract, specification or Stakeholder analyses
Scope Statement
Project Scope Statement should include:
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Project Constraints - Pre-defined budget , imposedschedule end date
Project assumptions
Project Boundaries (What is not included in the scope) Initial Project Organization
Initial Identified Risk
Schedule Milestone
Preliminary Cost estimate
Approval Requirement
Scope Statement
Project Scope Statement should include:
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Scope Management - WBS
Work Breakdown Structure (WBS)
The WBS is a task oriented hierarchical
decomposition showing all the work to be
done by project team to deliver the
projects product / service and achieve the
project objectives
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Scope Management - WBS
After scope statement is made, enti re scope isreviewed and all deliverables are decomposedinto smaller more manageable componentsgiving r ise to what is known as the Work
Breakdown Structure
Each descending level shows greater detail
WBS developed by project team based oncollective experience and by brainstorming withother stakeholders to list out all possible tasks tobe performed
Work Breakdown Structure (WBS)
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Scope Management - WBS
Decomposition
Decompose higher level elements to lower level
Decompose to level where work can be scheduledcost estimated, assigned and cont rolled
Verify that the level of decomposition of work is
correct and adequate
Identifying the deliverables and related work
Breaking-up the entire project into smaller,more manageable elements of work
Different deliverables will be decomposed todifferent levels
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Sample WBS
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Work Breakdown Structure
ResidentialConstruction
Build Foundation Build Structure Internal services External Services
Earth Work Base Preparation Blinding
Layout Excavation Leveling
Ant i-te rmi te Polyth ene Work
Shuttering Concreting
Compoun d Wall
Driveway
Water Supply lines
Sewage Lines
Electric Connection
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A SW Project
1.0
Prepare
SRS
Prepare
Design
Documents
Code
Software
SW
Testing
SW
Documentation
Deployment
Gather
Requirement
Analyze
requirements
Document
SRS
Prepare HLD
Prepare LLD
Code
Module1
Code
Module 2
Test module 1
Test Module 2
Integration
Test
User
Acceptan ce
SW
TrainingLLD Module 1
LLD Module 2
SW
Transition
1.1 1.2 1.3 1.4 1.5 1.6
1.1.1
1.1.2
1.1.3
1.2.1
1.2.2
1.3.1
1.3.2
1.4.1
1.4.2
1.4.3
1.6.1
1.6.2
1.6.31.2.2.1
1.2.2.2
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Scope Management - WBS
WBS Levels : The Top most Level is the Name of the Project
Level 1 Can be Phase or Deliverable or Sub-Projects
Lowest Level known as Work Package
Decomposition done till level where possible toallocate the work, estimate the time and cost andmanage and control the work
WBS developed using Top-down approach,Bottom-up approach or both
Work not reflected in WBS NOT part of project
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Scope Management - WBS
Work Packages
Work package is further broken down into smaller
activities for the pro jects network schedule
Lowest level in the WBS work assigned andcontrolled at this level
A sing le owner responsible to see work iscompleted. Can own many work packages
Should have scheduled start & finish dates
A time phased budget ass igned to it
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Scope Management - WBS
Some key advantages of using a WBS
WBS Key tool to PLAN and CONTROL theproject
Helps to assign work and track project progress
Basis for making network schedule and bar charts
Basis for budget, schedule and resources datarequired for determining the earned valuecriteria for the project
Provides common understanding and clarity ofwork and the total project among all the teammembers and other stakeholders
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Scope Management - WBS
Some key advantages of using a WBS
Identifies project's key milestones & deliverables
Basis for developing the Organizational, Risk,Communication, Cost Breakdown structures andResponsibility Assignment Matrix
Work package assignment to the rightperson/team members
Risk identification and management canbe done more effectively
Using lowest level of WBS an accurate bottom-up cost estimation can be done
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Time Management
To complete theproject on time aschedule of theproject workmust be fullyplanned in detail
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A project schedule developed of total workrequired to be done to plan and control the
time
The PM uses a formal change controlprocess to control any changes in theschedule
Time Buffers/Reserve/Contingency kept inschedule to meet unanticipated delay
Work packages are further broken down toactivities that are used to estimate, schedule,assign, implement and control project work
Time Management
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Critical Path Method (CPM)
CPM is a project scheduling method that
helps to determine the Early Start, Early
Finish, Late Start, Late Finish for individual
tasks.
The Critical Path determines the earliest
possible completion date of the project
Time Management
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Activ ity Logical Relat ionships
3 types of logical relationsh ips possible:
Discretionary or soft logic basedon experience or best practices
External based on outside factors
e.g. political, govt. rules, other
projects
Mandatory or hard logic work
requires a specific sequence
Activity Relat ionships
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The Four Types of activity Interrelationships are:
Activi ty Relat ionships
B
A
B B
Finish Start (FS) Start Finish (SF)
Start Start (SS) Finish Finish (FF)
A
A
AB
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LEAD:A modification of the logical relationship that
accelerates the successor task.
LAG:A modification in the logical relationship that
causes the successor task to be delayed.
A
B
Days
Activi ty Relat ionships
B
A
Days
In a FS
relationship B
has a Lead of
1 day
There are Two Modifiers:
In a FS
relationship B
has Lag of 1
day
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ARROW DIAGRAMMING METHOD (ADM)
also called ACTIVITY On ARROW (AOA)
Start
C
D
EF
Finish
1
2
4
6
7
B
A
5
3
8
Dummy
Project Networks
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ARROW DIAGRAMMING METHOD (ADM)
Arrows represent the Activity
Nodes (Event) represent the activitycompletion
ADM al lows only Finish-to-Startdependencies
Dummy activities i.e. dotted arrows used toshow logical dependency
Dummy activities consume NO Time orResources
Project Networks
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PRECEDENCE DIAGRAMMING METHOD (PDM)
also called ACTIVITY ON NODE (AON)
Start
A B
D E
C
F
Finish
Project Networks
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PRECEDENCE DIAGRAMMING METHOD (PDM)
also called ACTIVITY ON NODE (AON)
Node represents the Activ ity
Arrow used to show logicaldependency
Allows use of all 4 logicaldependencies
Project Networks
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Early Start
The earliest time a task
can start based on the
network logic and
schedule constraints.
Early Finish
The earliest time a task
can finish based on thenetwork logic and
schedule constraints.
Project Networks
Forward Pass
Late Start
The latest time by which a
task can begin without
violating a schedule
constraint / project end date.
Late Finish
The latest time a task can be
completed without violating a
schedule constraint or the
project end date.
Backward Pass
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FLOAT / TOTAL FLOAT
Length of time a non-critical task can be
delayed or extended without affecting the
project end date. Is measure of time flexibil ity
available in performance of an Activity
For an activity:
FLOAT = LF - EF or LS - ES
Project Networks
ES EF
LS LF
A
6 9
1613
Activi ty A has a
Float of 7 days
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FREE FLOAT
Length of time a non-critical task can be
delayed or extended without affecting earliest
start date of any subsequent activity and the
project end date.
Project Networks
ES EF
LS LF
A
ES EF
LS LF
B
ES EF
LS LF
C
3 6 6 9
16131310
1311
3 5 Activi ty C has
a Free Float
of 1 day
FREE FLOAT of Activity
= ESJ - EFI
J= Succeeding Activity
I= Preceding Activi ty
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Exercise: Critical Path Method
BB
CC
StartStart FinishFinish
EE
AA
DD
FF
ESES EFEF
LSLS LFLF
AA
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55
22 88
88
D
F
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Exercise: Critical Path Method(CPM)
ESES EFEF
AA
ESES EFEF
BB
ESES EFEF
ESES
EE
EFEF ESES EFEF
33
77 44
55
22 88
ESES
CC DD
FF
EFEF
Backward Pass
LFLFLSLS
EFEF
LFLFLSLSLFLFLSLS
ESESEFEFESES
LFLFLSLS
Please find out all the ES,EF,LS,LF=?
Forward Pass
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Exercise: Critical Path Method(CPM)
00 33
AA
33 1010
BB
1010 1414
33
EE
55 55 1313
33
77 44
55
22 88
1414
CC DD
FF
1919
Forward Pass
??
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Exercise: Critical Path Method(CPM)
00 33
AA
33 1010
BB
1010 1414
33
EE
55 55 1313
33
77 44
55
22 88
1414
CC DD
FF
1919
Backward Pass
19191414
1414
14141010101033
6666??44
3300
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Exercise: Critical Path Method(CPM)
00 33
AA
33 1010
BB
1010 1414
33
EE
55 55 1313
33
77 44
55
22 88
1414
CC DD
FF
1919
19191414
1414
14141010101033
666644
3300
TF=0
TF=0 TF=0
TF=0
TF=1 TF=1Critical Path is:
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THE CRITICAL PATH Is:
The Longest path in the network
Has zero float
Can have more than one Critical Path
Critical path can change through
projectNegative float in critical path shows
project is behind schedule
Critical Path
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Show summary level /activity level activi tiesagainst time, drawn to a common time scale
Drawback Bar charts do not show activity
dependencies
Gantt / Bar Charts
Bar / Gantt Charts
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Linked Bar / Gantt Charts
The dependencies between activities is shown
by arrows and the floats are depicted by single
lines drawn after the bar
Time Management
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Gantt/ Bar charts commonly used as:
Easy to draw, read and understand
Provide a clear picture of the project status
Summary of ten's of activities can be depicted
by one bar
Easily view the planned time schedule versus
the progress at a glance (% Completion)
Excellent tool for management reporting of
project progress
Gantt / Bar Charts
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Mapping Resources - Histogram
Vertical bars used to display total resource allocation time wise
Helps to plan and allocate resources
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Fast Tracking:
Overlap work normally done sequentiallye.g. order equipment before designfinalized
Critical Path activities are carried out inparallel to accelerate the project end date
Fast tracking requires much moremanagement control and co-ordination
Fast Tracking increases RISK
Fast Tracking increases Communication
Fast Tracking
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Crashing:
Extra resources added to Critical Pathactivities to reduce their duration
Activi ties that wil l cost minimum to crashshould be selected first
Use more overtime / faster workedmaterials
Costs likely to increase
Crashing possible only up to a point lawof Diminishing Returns
Crashing
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PERT
Program Evaluation and Review technique(PERT)
Also known as 3 Time estimates
Used for time and cost estimating when it i s
diff icult to arrive at an estimate due to lack ofknowledge or experience
Arrives at an estimate using a weighted averageto reduce the risk
Formula for PERT is:{Optimist ic + (4 x Most l ikely) + Pessimist ic} / 6
Standard deviation SD = (P-O)/6
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Standard Normal Distr ibut ion
Mean +/- 1 SD = 68.2 %
Mean +/- 2 SD = 95.4 %
Mean +/- 3 SD = 99.7 %
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Cost is the third leg of the Triple
Constraints, and is a key aspect
in planning, managing and
controlling the project
Cost Management
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Estimating Techniques
Parametric estimating technique
Uses project characteristics in a mathematicalmodel (e.g. Unit Rate) to calculate an estimatefor activity parameters
Used for top down and bottom up estimates
Common for construction, software
Parametric models are used to estimate how
much the product (or project) will cost basedon physical attributes e.g. weight, volume,power, lines of code, price per sq. foot
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Estimating Techniques
Bottom up estimating technique
A detailed estimate bui lt up from theknowledge of the design of the system
Uses the WBS work packages details.Performed in the Planning Phase of the PLC.
Most time consuming method but also mostaccurate estimate
Resources needed fi rst estimated and arethen converted into monetary terms.
Type of estimate prepared is known asDefinitive Estimate.
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Cost Budgeting
Budgeting Costs
Costs are allocated to schedule activit ies orwork packages
A time phased budget created for costs byaligning costs with the project schedule
A cost baseline is establ ished to measurethe projects performance
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Cost Baseline
Cost Baseline is the time phased budget for theproject.
Is used to measure, monitor and control projectsoverall cost performance
Is the total estimated cost for pro ject
Shown as an S curve
Large projects can have different costbaselines for the project e.g. internal labourcosts, contractor labour costs , materialcosts
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Cost Reserves
A monetary provis ion kept for mi tigating
cost and/or schedule risks
Contingency Reserve
Management ReservesBudget kept for unpredictable parts of project -
"unknown unknowns." Use of the management
reserve generally requires a baseline change.
Estimated costs used at PMs discretion to deal
with anticipated, but not certain, events. These
events are "known unknowns" and are part of
the project scope and cost baselines."
Reserves
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Control Account and Chart of Account
Control Account Are selected components of the
WBS that are used for management control. The Scope,
budget, schedule and actual cost are integrated at this
level to measure work performance using Earned Value
methods. Are kept above the Work Package level. Each
Control account can contain more than one WP but each
work package should be included only in one CA.
Chart of Account -Any numbering System used to
Monitor Project Cost by category (e.g. Material,
Equipment, Labor ). It is based organizations Chart of
Accounts.
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EVMS measures project performance byintegrating project scope, cost and schedule measuresconcurrently enabling a holistic view of projectperformance and progress
Earned Value represents the value of work accomplishedin terms of financial worth and is used to measure theperformance of the project.
Work is represented in terms of a cost based structure.Costs can be in Money or Man-Hours
An integrated baseline is formed against whichperformance is measured.
EARNED VALUE MANAGEMENT SYSTEM
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EVMS
Key parameters used to represent physical progress
achieved on the project in monetary units are:
Planned Value (PV): formerly known as Budgeted Costof Work Scheduled (BCWS). PV = BAC X % ofPlanned Work
Earned Value (EV): formerly known as Budgeted Costof Work Performed (BCWP). EV = PV x % of ActualWork done
Actual Cost (AC) formerly known as Actual Cost ofWork Performed (ACWP)
Budget At Completion (BAC) = total Budget for workplanned (sum of all PV)
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EVMS
Variances
Schedu le Va r iance ( SV) = EV PV
Cos t Var iance (CV) = EV - AC
+ve is good performance0 is on target
-ve is poor performance
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EVMS
Performance Indices
CPI (Cost Performance Index i.e. cost efficiency)= EV / AC
SPI (Schedule Performance Index i.e.
schedule efficiency)= E V / P V
CPI > 1 shows pro ject is under budget
SPI > 1 shows project is ahead of schedule
>1 is good performance=1 is on target
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EVMS
EAC = BAC/CPI to-date
or
= AC + (BAC EV)CPI New
or
= AC + ETC New
EAC (Estimate at Completion)
EAC forecasts the revised budget for the total project or anactivity based on the projects current performance or a newassumed performance in fu ture.
VAC (Variance at Completion) = BAC EAC
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EVMS
To forecast new completion time if future performanceexpected to be different:
New Duration
= Current month + [ (Delay + Remaining months) / SPIAss umed]
To forecast new completion time based on currentperformance:
New Duration = Original Duration / SPI to-date
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Scope, Time, Cost and
Quality
SCOPESCOPE
QUALITYQUALITY
Quality Management
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Quality is the totality of characteristics
of an entity that bear on its
ability to satisfy stated or implied needs
- ISO
Degree to which a set of inherent
characteristics fulfill requirements
- American Society for Quality
Project Quality
What is Quality?
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Quality
Planning
Quality
Assurance
Quality
Control
Quality
Management
QUALITY
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Quality Management has fol lowing three processes :
2014 CEPM
Define Quality
Standard
Are we fol lowing the righ t processes ?
QualityPolicy
QualityRequirement
StatutoryRequirement
What
Actions/Process/
Procedures ?
Do we need to modi fy processes ?
NO YESDefectRepair/Rework
Quality Planning
Quality Assurance
Feedback to QP and QA
End Results
complying with
Standards ?
Quality Control
Quality Management
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Quality Planning:
Identif ies & Determines which qualitystandards are applicable to project
Quality Planning
Preparation, checking and recording ofactions necessary to achieve thestandard of the product or service that
is required by the customer and lawIs driven by companys quality policy
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The set of processes
and procedures that demonstrate that
the work is being done according to the
quality plan and will satisfy
the relevant quality standards
Quality Assurance
Quality Assurance is:
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Pre planned Audits and Reviews used to
check compliance that all procedures
are being met as planned
Quality Assurance
QA ensures compliance of the process not the product
result
Performed by QA department or line organization
personnel or separate 3rd party organization
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Processes for planning & monitoring
specific project results
to verify if they complywith relevant quality standards, and
identifying ways to eliminate causes
of unsatisfactory results
Quality Control
Quality Control
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Broken into three main categories:
1. Prevention costs e.g. training, equipment,maintenance
2. Appraisal costs e.g. inspections, audits, testing
Cost of Quality
3. Failure costs
Internal failure costs before leavingorganization e.g. rework, scrap
External failure costs customer determinestheir requirements not satisfied e.g. liabilities,
warranty work
Cost of conformance
Cost of nonconformance
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Total Quality Management
(TQM)
Total Quality Management TQM)
TQM is an approach used to implementquality improvement programmeinvolving everyone across the organization
Get ideas from employees
Environment of participative leadership
Improve the customer service
Benchmark major activities to improve
Reduce cycle time
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Quality Gurus
Deming
Juran
Crosby
Key Quality Gurus who have shaped theQuality movement are:
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Quality Gurus W. Edwards Deming
Demings Plan-Do-Check-Act (PDCA) cyclefor continuous improvement
Plan - see how to improve present practices
Do - implement improvement plan on small scale
Check - test to check got desired results or not
Act - implement corrective actions needed in plan
Management commitment essential
85% of meeting quality is managementresponsibility
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Juran advocated Three key concepts
1. Fitness for Use :
Availabi li ty : reliability (i.e., frequency of repairs) and
maintainability (i.e. speed or ease of repair).
Safety: The potential hazards of product use
Field use: This refers to the way the product will be used
by the customer
2. Juran Trilogy : Quality Improvement , Quality Planningand Quality Control
3. Cost of Quality
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Quality Gurus Joseph M Juran
2014 CEPM
Crosby developed his Four Absolutes of Quality:
Quality means conformance to requirements.
Quality comes from prevention, not from inspection.
Quality means that the performance standard is "zero
defects."
Quality is measured by the cost of nonconformance.
Crosby found that the cost of not doing things right the first
time could be appreciable.
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Quality Gurus Philip B. Crosby
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Meet customer needs through evaluation,
defining and managing of their expectations
More Quality Concepts
Customer Satisfaction
Quality & Grade
Grade is the level or functionality of the
product or service
Quality is achieved by meeting the stated
requirements
Project aims to satisfy customers qualityexpectations
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Goal is to improve processes to avoid alldefects
Management to establish a defect free
environment
Quality Concepts
Zero Defects
Prevention vs. Inspection
Cheaper to do things correctly at the first
time.
Rework after removing defects after
inspection more costly
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Example of Cause and Effect Diagram
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Example of Cause and Effect Diagram
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Fish Bone Diagram for Hotel Industry
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ParetoChart
Histogram ranking no. of defects in order of frequency or
importance
Quality Tools & Techniques
80% problems are due to 20% reasons 80/20 rule
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Pareto Chart Late for office
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
168.0
152.2
134.4
117.6
100.8
84.0
67.2
50.4
33.6
16.8
0.0
Traffic ChildrenTranspor
tation ParentsOverslept Emergency
Quality Tools & Techniques
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Left hand vertical axis representing the unit o fcomparison selected e.g. frequency, cost, time
Horizontal axis representing different categoriesof data from max (L) to min. (R)
Right hand axis represents the cumulativepercent from 0% to 100%
Pareto Chart
The chart drawn using 3 axis:
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Used to decide whether the product or service is incontrol i.e. within a specified, acceptable range
Graphically displays results of a process
Does not provide causes for deviations or solutions
Control Chart
0
4
Mean
8
Rule of Seven
UCL
LCL
Out of Control
3
2
1
A Cont ro l Chart Process
USL
LSL
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Rule of Seven: When several successive points lineup on one side of the central line, this pattern is called a
RUN
As a rule of thumb, if the RUN has a length of seven
points, there is an abnormality in the process.
Quality Tools & Techniques
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Quality Tools & Techniques
Common causes:
This source of random variation is always present in
any process.
It is that part of the variability inherent in the process
itself. The cause of this variation can be corrected onlyby a management decision to change the system.
Special causes:
This variation can be controlled at the local or
operational level.
Special causes are indicated by a point on the control
chart that is beyond the control limit or by a persistent
trend approaching the control limit.
Control Chart
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Histogram
Histogram is a chart with col umns. This represents t he distributi on by mean. If the histo gram isnormal, the graph takes the shape of a bell curve.If it is not normal, it may take different shapes based on the condit ion of the distrib ution.
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Sampling
Inspection done to a sample rather than entire
population determine the level of performance as per a
predetermined standard.
Includes measuring, examining and testing
Quality Tools & Techniques
Benchmarking
Used for process and product improvement Can be done within organization or with other
organizations which have similar processes
Checklists
Structured list of actions. Simple but very useful
Show relation between different components of a
system. Are excellent visual tools
Flow charts
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Risk Management
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Risks
A risk is any uncertain event that may
have a positive or a negative effect on
the goals and objectives of the
project if it occurs
Risk can also be described as
the product of the probabilit y of an event
occurring times its impact if it did.
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Risk Categories
Internal risks control led to some extent byproject manager e.g.
Project schedule
Manpower
Technology used
Accuracy of est imates
External risks can not be controlled by PM e.g.
Gov. rules
Inflation
Natural calamities
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Risk Categories
Organizational risks
Fund availability
Resource utilization
Schedule expectations
Project priority
Project Management risks
Poor use of PM techniques
Manpower allocation inexperienced
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Risk Management Processes
Most of these processes are updated throughout the projectlife cycle
Develop a Risk Management Plan
Prepare a Risk Register
Prioritize the Risks
Probabilistic Treatment of Risks
Develop Risk Responses
Assess Risks Cont inuously
Identify all possible Risks
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Risk Identif ication Tools
Documentation Reviews
Brainstorming
Interviews
Delphi technique
SWOT analysis
Root cause identification
Informationgathering techniques
Other techniques
Checklists
Assumption analysis
Flowcharts
Cause-and-effect diagram
Influence diagram
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Documentation Review
Contract Document
Work Breakdown Structure (WBS) key tool
Product description
Scope statement
Project management plan, Network schedule
Risk management plan
Industry data
Historical information
Review project documents e.g.
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Brainstorming
Use a experienced facilitator
List all ideas all are good
Use WBS and risk categories for identification
Involve team members, other stakeholders
What is said important be non critical
Brainstorming a popular technique
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Delphi Technique
Facili tator sends participants a questionnaire
Response collated and ci rculated few t imes
Less bias of other participants
Can be done remotely e.g. through E-mail
Similar to brainstorming but participants
are anonymous
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SWOT Analysis
Looks at the projects:
Strengths Experienced project team
Weaknesses Lack of Processes
Opportunities Will prove credibility if done
successfully
Threats New Technology
Strengths and Weaknesses are internal
Opportunit ies and Threats are external
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Risk Analysis
QualitativeRisk analysis
QuantitativeRisk analysis
A quali tative riskassessment is carriedout to prioritize risks
A risks Probab il ity (P)of occur rence andImpact (I) is combinedand assessed
Should always be donefor all projects
Risk probabilityassessed us ingspecific values
Numerically analyseseffect of identified risks
on project objectivesMore rigorous
Optional analysis
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Risk Probabil ity Impact Matrix
Subjective assessment done separately of a RisksProbability and its Impact on pro ject objectives
Risk score then assigned to each risk based on bothProbability & Impact (Probability x Impact)
Risks rated and ranked in order of importance
Overall risk ratings prio riti ze the risks for project
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Probability Impact Matrix
2014 CEPM
Quantitative Risk Analysis Tools
Decision Trees
Expected Monetary Value (EMV)
Monte Carlo simulation
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Quantitative Risk Analysis
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Decision Trees
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Quantitative Risk Analysis
Expected Monetary Value Analysis (EMV)
To calculate the average outcome in
Monetary Units of scenarios that mayor may not occur .
Looks at probability and impact.
Formula: EMV = Probabil ity x Impact
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Example : There is 40 % chance of getting a purchase order wor th$ 100,000 . The EMV = 0.4 x $100,000 = $ 40,000
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Perform Quantitative Risk Analysis
Typically used to make decisions on risks that are uncertain. Takes multiple scenarios andcalculates the level of impact.
Structured using a decision tree diagram.
Solving the diagram will result in an EMV for each alternative.
SoftwarePackage
25% Probability$90,000 -ve Impac t
No impact
55% Probability$110,000 ve Impac t
No impact
Not Fit
Fit
$197,500=(0.25 x 90000+0.75 x 0+$175,000)
Not Fit
Fit
$210,500=(0.55x110000+0.45x0+$150,000)
$22,500
$60,500
BUY$175,000
MAKE$ 150,000
Example
App licat ion of EMV in Decision Tree Analysis
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Monte Carlo Simulation
Monte Carlo simulation used to show a large numberof possible project outcomes. Gives a completepicture and what-if scenarios
Project performed many times using differentdurations for activities
Provides a statistical distribution of the resultsCorrelation between different activities and activities
very crucial for the projects duration are highlighted
Two important outputs are histograms andCumulative probability charts or S curves
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Monte Carlo Simulation
Project Simulation
50
160
275300
120
70
250
50
100
150
200
250
300
350
55 65 75 85 95 105 115
Project Duration
No.
Completed
Frequency
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Probability of Completing on Time
0
0.2
0.4
0.6
0.8
1
1.2
60 70 80 90 100 110 120
Probability
Days to Complete
Project Simulation
Probility to complete
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Risk Response Planning
Identify a responsible owner for the risk
Select most appropriate response methodfor the risk cost effective, timely, realistic
Keep track and record in a Risk Register
Develop proactive action plans to deal with risks reduce threats, enhance opportuni ties
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Risk Response Strategies
Risk Response Strategy Effect of Response
Threats or Negativerisks
AvoidRemove root cause.
Eliminate from project
TransferThird party financially
responsible
MitigateReduce Probability or
Impact or Both
Opportunities or
positive risksExploit
Remove uncertainty to use
opportunity
Share
Make third party owner-better equipped
Enhance
Increase positive Impact orProbability or both
Threats &Opportunities
AcceptAccept the risk. Keep a
contingency reserve
Unclear but threatmore likely
ContingentResponse
Execute if required
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Organization Structures
Three main types of organization structures:
Function or Line most common. Istraditional hierarchical structure.
Matrix weak matrix, balanced matrix andstrong matrix. PMs authority increasesfrom Weak to Strong matrix
Project or Task Force geared for projects
Projects organizational structure wil l impactthe roles and responsibil ities as well as theavailability of project resources
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Functional Organization
Grouped by functionor department
Each employee has
clear boss
Interdepartmentalcommunication viaFunctional head
Staff & Project leadassigned part time toproject
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Research
Employee 1
Production
Employee
Marketing
Employee
Finance
Employee
CEO
Research &
Development
Production Marketing Accounts &
Finance
Research
Employee 2
Research
Employee 3
Production
Employee
Production
Employee
Marketing
Employee
Marketing
Employee
Finance
Employee
Finance
Employee
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Advantages
Best for routine operations, occasional projects
Better technical control
Broad manpower base, flexibility
Communication channels good
Easier budget, cost control
Better functional support / technical base
Functional Structures
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Disadvantages
No direct responsibili ty for project
Cumbersome coordination betweendepartments
Slow customer response / focus
Stronger group wins
Less innovation
Functional Structures
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Disadvantages
Matrix Structures
Dual reporting system two bosses PM andFunctional manager
Conflicting / changing pr iorities between PMand Functional manager
Multidimensional work & information flow
Structure more diff icult to implement
Needs more top management involvementinitially
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Projectized Organization
Projects main work o forganization andstructure geared for
projects
All staff repor t to PM
PM has completeauthority andindependence
Project work givenmaximum importance
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Team
Member
Team
Member
Team
Member
CEO
Project
Manager 1
Project
Manager 2
Project
Manager 3
Team
Member
Team
Member
Team
Member
Team
Member
Team
Member
Team
Member
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Advantages
PM has complete functional authority overproject
All resources avai lab le to PM as and whenneeded
Good communication channels
Fast reaction time
Projectized Organization
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Duplication of effort, resources, facili ties
People retained unnecessarily after project as
they may not have another project Technical base less st rong as no line
department looking out to maintain skills
Slower career growth
Projectized Organization
Disadvantages
Technical skill and knowledgeremains in same group
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Roles and Responsibi lities
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Responsibilit y Assignment Matrix
Responsibility Assignment Matrix (RAM)
To show project Roles & Responsib ilities Who will do what work
Level of responsibility
Rows indicate the activities
Columns identify the positions, or names
WBS & OBS( Organization Breakdown Structure)combined to develop the RAM. WBS shown down left
hand side and resources from OBS across the top ofthe matrix.
Weakness - Responsibility Matrix does NOT show when work willbe done, how much time wil l be taken nor how people will interact
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Responsibility Assignment Matrix (RAM)
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Responsibility Assignment Matrix using a RACI chart
Persons
Activ ity
Define
Ayan
Develop
Test
Design
R = Responsible A = Accountable C = Consult I = Inform
Druv Mira KrishSara
A
A
A
A
R
R
R
R
I
I
I
I I I
I
I
C
C C
C
2014 CEPM
Developing the Project Management Plan
Delivering the project on time, within budget
and meeting required specifications
Managing stakeholder expectations
Integrating, controlling & coordinating the project
Developing and motivating team, resolving conflicts
Monitoring & controlling all aspects of project
PM - Role & Responsibili ties
PM is overall responsible for the project and itsday-to-day management such as:
Communicating with all stakeholders190
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Team Performance
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Group of individuals that share common:
What is a team?
Objective and identity
Values
Norms
Standard of behavior
Commitment
Loyalty
Diversity
Team Performance
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Forming
Storming
Team Formation Stages
Team members only moderately effective as they lack
a common aim, are hesitant and unsure of each other
PMs role (Directing) - give direction, build common
grounds, help members to understand each other
better . (high direction , low support)
Differences and hostilities surface between team
members leading to arguments, different opinions,personality conflicts, formation of groups /sub groups
PMs role (Coaching) - motivate and educate team
members, clarify project goals and manage team
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Norming
Team Formation Stages
Team members start developing an identity and
set of norms and values.
Better understanding and communication among
team.
Issues become more important than individuals
PMs role (Supporting) - resolve issues that came up,
define and assigning team roles and responsibilities
(Low Direction but high Support to bolster confidence
and motivation)
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Mourning / Adjourning
Team Formation Stages
Performing
Team becomes high performing team - membersunderstand and appreciate each other.
Team works effectively as a resourceful, focused,cohesive force with a united aim. Problems tackledmore confidently and innovatively
PMs role (Delegating) - maintain performance by co-coordinating and cont rolling the work, appraiseperformance, delegate work, acknowledge good work.
(Low Direction & Low Support )
Team disbanded - some persons happy some sad
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Good Team Attributes
Imaginative
Trust
Respect
Innovative
Clear roles
Supportive
Adaptive
Result oriented
Committed
Team Performance
Hiding facts
Personal agendas
No clear direction
Lot of rework
Blame culture
Self centred
Unresolved
conflicts
Poor team attributes
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For effective team PM should:
Clarify individual role and responsibili ties
Delegate to appropriate person
Expect and resolve conflicts at the earliest
Encourage diversity
Build a team identity
Team Formation
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Managing team conflicts
Five main methods to resolve conflicts:
Withdrawal
Smoothing Compromising
Forcing
Confrontation
Conflict Resolution Techniques
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Compromising
Conflict Resolution Techniques
This method uses a give and take attitude
Both parties need to make some trade offs so
neither party can win (Lose-Lose)
Gives some satisfaction to each concerned party
but not ideal solution
PM can use to resolve a conflict in team
temporarily to avoid delays in work, or in making
concessions when negotiating for contracts
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Forcing
Conflict Resolution Techniques
Uses authori ty to exert ones viewpoint at the
potential expense of another
PM uses his power and authority to force a solution
Should be used as a last resort as ill feelings are
likely to return as a problem
PM can use forcing to make quick decisions in
crucial or urgent situations or when he wants a
specific solution to be used
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Confrontation / Problem Solving
Conflict Resolution Techniques
The issue kept as focus not the individuals.
Affec ted parties try to resolve their disagreements
by directly facing the conflict
Most direct and objective approach that pinpoin ts
the problem
It provides a final solution to the conflict
PM can use confrontation method when team is
mature
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Leadership
AndMotivation systems
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Effective characterist ics of Project Manager
Leader
Committed
Goal oriented
Communicator
Supportive to team Creative
Integrator
Budget conscious
Sees overall picture
Independent thinker
Decision maker Flexible
Leadership
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Leadership styles that a PM can fol low are:
Autocrat ic - Keeps tight contro l over staff and dictates what shouldbe done (l ikea k ing)
Laissez faire - A form of non-management. No one is in charge.
Democratic - The project manager consults team members butdecides on the best course of action.
Bureaucratic - Lots of rules, regulations and procedures.
Directive - Specifies what to do and how to do the work andsupervises the work closely.
Supportive - Encouragement , praise and pos iti ve feedback tomotivate.
Leadership
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Some key Motivation Theories are:
Maslow's Hierarchy of Needs Theory
Herzbergs Two Factor Theory
Motivation
McGregor's Theory X and Y
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Developed by AbrahamMaslow in 1943
There are five basic humanneeds that must be fulfilledto mot ivate people
Maslow's Hierarchy of Needs Theory
Behaviour of all personsincluding project team membersgoverned by their personal needs
Needs have to be met fromlowest level to highest level
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Physiological needs - air, water,food, shelter, cloth ing
Safety/security needs Job security,Stabilit y, Freedom from Physical Harm
Social needs Love, Affectionaterelationships, Friends, Social status
Maslow's Hierarchy of Needs Theory
Esteem/recognition needs Accomplishment,
Respect,, Attention, Appreciation, Self worth,
Self Actualization Self-fulfillment, Growth,Creativ ity, Learning, Developing potential
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Hygiene factors and Motivators
Both are independent and affect persons
differently
Herzbergs Two Factor Theory
In 1960 Frederick Herzberg identif ied twoseparate categories of need and motivation
Hygiene factors necessary for persons toavoid becoming dissatisfied and de-motivatedwith their job
Motivators necessary fo r persons to bemotivated
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Hygiene factors
Herzbergs Two Factor Theory
Motivators
Company policies
Peer, subordinate,superior relationships
Working conditions
Salary
Personal l ife
Status
Security
Achievement
Recognition
Work content
Responsibility
Professional growth
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Theory X - average workers are lazy, lack mot ivationand ambition, will avoid work unless supervised.
Managers who believe in this tend to be authoritarian and
suspicious. They impose tight organizational structures, rigid
rules/policies, and strict supervisory controls because they
believe that subordinates lack a sense of responsibility.
Theory Y Workers are self-motivated, creative,imaginative, commit ted.
Managers provide more freedom and the opportunity to participate
in planning and decision making. They emphasize opportunities for
development and growth.
McGregor s Theory X and Y
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Communication Management
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Communication can be:
Oral
Written
Non Verbal (Body language)
Communication
Effective communication requires:
talking
writin