PMP Lecture 10

7/25/2019 PMP Lecture 10

1/48

AUC TechnologiesConsulting | Development | Mentoring | Training

Project Management With PMP Exam Preparation


2/48

Agenda

Controlling [Monitor and Control Work]

Controlling [Control Scope]

Controlling [Control Cost]

Controlling [Control Schedule] Execution [ Manage Project Team ]

Execution [Perform Quality Audit]

Execution [Distribute Information ]

Execution [ Manage Stakeholders Expectations] Controlling [ Report Performance]

Controlling [ Monitor and Control Risks ]

Execution [ Conduct Procurements ]

Controlling [ Administer Procurements ]


3/48

Monitoring and Controlling Project Work

Changes are inevitable on most projects, so its important to

develop and follow a process to monitor and control changes

Monitoring project work includes collecting, measuring, and

disseminating performance information

Monitoring and controlling the processes required to

initiate, plan, execute, and close a project to meet

the performance objectives defined in the projectmanagement plan


4/48

Monitor And Control Work

1. Project

Management Plan

2. Performance

Reports

3. EEF

OPA

1. Expert Judgment

1.Change Requests

2.Project Managementplan updates

3.Project document

updates

InputOutput

Tools


5/48

Control Scope

Involves controlling changes to the project scope

Variance is the diff between planned and actual performance

Goals of scope control are to

influence the factors that cause scope changes

assure changes are processed as per procedures

manage changes when they occur

controlling changes to the project scope


6/48

Control Scope

1. Project

Management

Plan

2. Work

Performance Info

3. Requirement

documentation

4. Requirement

traceability matrix

5. OPA

1. Variance analysis

1. Work Perform

Measurements

2. Organizational process

assets updates

3. Change Requests

4. Project Management

Plan updates

5. Project document

updates

InputOutput

Tools


7/48

Control Schedule

Controlling changes to the project schedule

Determining the current status of the project schedule

Influencing the factors that create schedule changes

Determining that the project schedule has changed

Managing the actual changes as they occur


8/48

Control Schedule

1. Project

management

plan2. Project Schedule

3. Work

Performance

Information

4. Organizational

Process Assets

1. Performance

reviews

2. Variance analysis3. Project

management

software

4. Resource leveling

5. What-if-scenario

analysis

6. Adjusting leads

and lags

7. Scheduling

compression

8. Scheduling Tool

1. Work Performance

measurements2. Organizational process

assets updates

3. Change requests

4. Project management

plan updates

5. Project document

updates

InputOutput

Tools


9/48

Control Costs

Influencing the factors that create cost variances and

controlling changes to the project budget

Assuring the potential cost overruns do not exceed the

authorized funding periodically

Monitoring cost performanceRecording changes accurately against the cost baseline

Acting to bring expected cost overruns with acceptable

limits


10/48

Control Costs

1. Project

management Plan

2. Project fundingrequirements

3. Work performance

information

4. Organization

process assets

1. Earned value

Management

2. Forecasting3. To-complete

performance index

(TCPI)

4. Performance

reviews

5. Variance analysis6. Project

management

Software

1. Work performance

measurements

2. Budget forecasts

3. Organizational processassets updates

4. Change requests

5. Project Management

plan update

6. Project

documentupdates

Input Output

Tools


11/48

Work Performance Information

Deliverables completed and not yet completed

Costs authorized & incurred

Estimates to complete scheduled activities

Percent physically complete of the scheduled activities

Control Cost - Input


12/48

Forecasting

Earned Value Management

Performance Reviews Variance analysis

Compares actual performance to planned or expectedperformance Cost & schedule variances most commonly used Project scope, resource, quality, risk are other areas of

importance Trend analysis

Performance over time to determine improvement /

deterioration Earned value technique

Compare planned performance to actual performance

Variance Management [Responses to major/ minor problems

Cost Control Tools & Techniques


13/48

Organizational Process Assets Updates

Lessons learned including root cause of variance,

reasons behind corrective action chosen and other

types of lessons learned from cost, resource or resource

production control

Project Management Plan Updates

Cost Control - Output


14/48

Earned Value Management (EVM)

EVM is a project performance measurement technique that

integrates scope, time, and cost data

Given a baseline (original plan plus approved changes), you

can determine how well the project is meeting its goals

You must enter actual information periodically to use EVM

More and more organizations around the world are using

EVM to help control project costs


15/48

Earned Value Management Terms

The Planned value (PV), formerly called the budgeted cost ofwork scheduled (BCWS), also called the budget, is that

portion of the approved total cost estimate planned to be

spent on an activity during a given period

Actual cost (AC), formerly called actual cost of work

performed (ACWP), is the total of direct and indirect costs

incurred in accomplishing work on an activity during a given

period

The Earned value (EV), formerly called the budgeted cost of

work performed (BCWP), is an estimate of the value of the

physical work actually completed


16/48

Earned Value Formulas

Performance Measurement Analysis Formulas in a nut shell

BAC Budget at completion No Formula

AC Actual Cost No Formula

PV Planned Value No FormulaEV Earned Value No

Formula

CV Cost Variance EV-AC

SV Schedule Variance EV-PV

CPI Cost Performing Index EV/ACSPI Schedule Performing Index EV/PV

EAC Estimate at completion BAC/CPI

ETC Estimate to complete EAC-AC

VAC Variance at completion BAC-EAC


17/48

EVA Example

A $10,000 software project is scheduled for4 weeks.

At the end of the third week, the project is50% complete and the actual costs to dateis $9,000

Planned Value (PV) = $7,500

Earned Value (EV) = $5,000

Actual Cost (AC) = $9,000


18/48

What is the project health?

Schedule Variance= EVPV = $5,000$7,500 = - $2,500

Schedule Performance Index (SPI)

= EV/PV = $5,000 / $7,500 = .66

Cost Variance

= EVAC = $5,000 - $9,000 = - $4,000

Cost Performance Index (CPI)

= EV/AC = $5,000 / $9,000 = .55

Objective metrics indicate the project is behind schedule

and over budget.


19/48

Forecasting Costs

If the project continues at the current performance,

what is the true cost of the project?

Estimate At Complete

= Budget At Complete (BAC) / CPI

= $10,000 / .55 = $18,181

At the end of the project, the total project costs will be

$18,181


20/48

Manage Project Team

After assessing team performance and related information,

the project manager must decide

if changes should be requested to the project

if corrective or preventive actions should be

recommended, or

if updates are needed to the project management plan or

organizational process assets.

For tracking team member performance, providing

feedback, resolving issues and coordinating changes


21/48

Manage Project Team

1. Project Staff

Assignments

2. Project

management Plan

3. Team performanceassessment

4. Performance

Reports

5. Organizational

process assets

1. Observation &

Conversation

2. Project

Performance

Appraisals

3. Conflict Mgmt

4. Issue Log

5. Interpersonal skills

1. Enterprise

environmental factors

updates

2. Organizational Process

Assets updates

3. Change requests

4. Project Mgmt Plan

updates

Input Output

Tools


22/48

Conflict Handling Modes

Confrontation or problem-solving: directly face a conflict

Compromise: use a give-and-take approach

Smoothing: de-emphasize areas of differences and emphasize

areas of agreement

Forcing: the win-lose approach

Withdrawal: retreat or withdraw from an actual or potential

disagreement


23/48

Personal Preferences Affect Communication Needs

INTROVERTS [ I ]like more private communications,

while EXTOVERTS [ E ]like to discuss things in public

INTUITIVE [ N ]people like to understand the big picture,

while SENSING [ S ]people need step-by-step details

THINKERS [ T }want to know the logic behind decisions,

while FEELING [ F }people want to know how

something affects them personally JUDGING [ J ] people are driven to meet deadlines,

while PERCEIVING [ P ]people need more help in developing

and following plans


24/48

Wideman and ShenharsViews on MBTI

Most suitable to project leadership:

100%: INTJ, ENTJ, ISTJ, ESTJ

50%: INTP, ENTP, ENFP, ENFJ

Best suited as followers:

100%: INFJ, ISFJ

50%: INTP, ENTP, ENFP, ENFJ, ESFJ

Unsuited to project work:

100% INFP, ISFP, ESFP, ISTP

50%: ENFP, ESTP


25/48

Conflict Can Be Good

Conflict often produces important results, such as new ideas,

better alternatives, and motivation to work harder and more

collaboratively

Groupthinkconformance to the values or ethical standards of a

group - can develop if there are no conflicting viewpoints

Research suggests that task-related conflict often improves team

performance, but emotional conflict often depresses team

performance


26/48

General Advice on Teams 1/2

Be patient and kind with your team

Fix the problem instead of blaming people

Establish regular, effective meetings

Allow time for teams to go through the basic team-building

stages

Limit the size of work teams to three to seven members


27/48

General Advice on Teams 2/2

Plan some social activities to help project team members and

other stakeholders get to know each other better

Stress team identity Nurture team members and encourage them to help each

other

Take additional actions to work with virtual team members.


28/48

Quality assurance includes all the activities related to satisfying

the relevant quality standards for a project

Another goal of quality assurance is continuous quality

improvement

Ensuring that the project will employ all processes

needed to meet requirements

Perform Quality Assurance


29/48

Quality Assurance

1. Project Mgmt plan

2. Quality metrics

3. Work performance

information

4. Quality control

measurements 1. Quality Planning

Tools &

Techniques

2. Quality audits

3. Process analysis

1. OPA (updates)2. Change Requests

3. Project Mgmt

Plan(updates)

4. Project document

Updates

Input

Output

Tools


30/48

Benchmarkinggenerates ideas for quality improvements by

comparing specific project practices or product

characteristics to those of other projects or products within

or outside the performing organization

A quality auditis a structured review of specific quality

management activities that help identify lessons learned

that could improve performance on current or future

projects.

Quality Assurance Tools & Techniques


31/48

Organizational Process Assets (Updates)

Completed checklists

Lessons learned documentations

Project management Plan (Updates)

Plan is updated to reflect changes to the quality

management plan that results from changes in performing

the QC process. Requested changes (addition,

modification or deletions) are processed by review and

disposition through the integrated change control

process.

Quality Assurance Outputs


32/48

Distribute Information

Getting the right information to the right people at the right time

and in a useful format is just as important as developing the

information in the first place

Important considerations include

using technology to enhance information distribution

formal and informal methods for distributing information

Determines the information and communications

needs of the stakeholders


33/48

Distribute Information


plan

2. Performance reports

3. Organizational

process assets

1. Communication

methods2. Information

distribution

methods

1. Organizational

process assets

updates

Input

Output

Tools


34/48

Importance of Face-to-Face Communications

Research says in a face-to-face interaction

58% of communication is through body language

35% through how the words are said

7% through the content or words that are spoken

Pay attention to more than just the actual words someone is

saying

A persons tone of voice and body language say a lot about

how they really feel


35/48

Other Communications Considerations

Rarely does the receiver interpret a message exactly as the

sender intended

Geographic location and cultural background affect the

complexity of project communications

Different working hours

Language barriers

Different cultural norms


36/48

Report Performance

Keeps stakeholders informed about how resources are being

used to achieve project objectives

Status reports describe where the project stands

Progress reports describe what the project team has

accomplished during a certain period of time

Forecasts predict future project status and progress

The collection of all baseline data, and distribution of

performance information to stakeholders


37/48

Report Performance

1. Project

management Plan

2. Work performance

information

3. Work Performance

Measurements

4. Budgeted

Forecasted

5. Organizational

process assets

1.Variance analysis

2.Forecasting method

3.Communicationmethods

4.Reporting System

1. Performance reports

2. Organizational process

assets updates

3. Change requests

Input

Output

Tools


38/48

Manage Stakeholder Expectation

Project managers must understand and work with various

stakeholders

Need to devise a way to identify and resolve issues

Two important tools include

Communication Methods

Issue log

Managing communications to satisfy the needs of,

and resolve issues with, project stakeholders


39/48

Manage Stakeholder Expectation

1. Stakeholder

register

2. Stakeholder

managementstrategy

3. Project

Management Plan

4. Issue Log

5. Change Log

6. OPA

1.Communications

Methods

2.Interpersonal skills

3.Management skills

1. Organizational Process

Assets updates

2. Change Requests3. Project Management

Plan updates

4. Project document

updates

InputOutput

Tools


40/48

Monitor and Control Risks

Involves executing the risk management process to respond

to risk events

Workarounds are unplanned responses to risk events that

must be done when there are no contingency plans

Process of identifying, analyzing, and planning for newly

arising risks, keeping track of the identified risks, reanalyzing

existing risks, monitoring trigger condition, monitoring

residual risks, and reviewing the execution of risk responses

while evaluating their effectiveness


41/48

Monitoring & Controlling Risk

1. Risk Register

2. Project

Management Plan3. Work Performance

information

1. Performance

reports

1. Risk reassessment

2. Risk audits

3. Variance and

trend analysis

4. Technical

performance

measurement5. Reserve analysis

6. Status meetings

1. Risk Register updates

2. Org Process Asset

3. Change Requests

4. Project mgt plan

updates

5. Project document

updates

Input Output

Tools


42/48

Conduct Procurement

Team will receive bids and proposals

Evaluating the proposal as selection criteria defined

Negotiating the potential sellers

Finalizing the seller and awarding the contract

The Process of obtaining seller responses, selecting a

seller, and awarding a contract


43/48

Conduct Procurement


plan

2. Procurement doc

3. Source Selection

Criteria

4. Qualified Seller List

5. Seller Proposals

6. Project Documents

7. Make-or-buy Decision

8. Teaming Agreement

9. OPA

1. Bidder Conference

2. Proposal evaluation

technique

3. Independent

estimates

4. Expert Judgment

5. Advertising6. Internet Search

7. Procurement

negotiation

1. Selected Seller

2. Procurement Contract

Award

3. Resource Calendar

4. Change Request

5. Project Mgmt Plan upd

6. Project Doc Updates

InputOutput

Tools


44/48

Administer Procurements

Ensures that the sellers performance meets contractual

requirements

Contracts are legal relationships, so it is important that legal

and contracting professionals be involved in writing and

administering contracts

Administrating contract by the buyer and the seller for

similar purposes


45/48

Administer Procurements

1. Procurement

documents

2. Project

Management Plan3. Contract

4. Performance

reports

5. Approved change

requests

6. Work performance

Information

1. Contract change

control system

2. Procurementperformance

reviews

3. Inspections and

audits

4. Performance

reporting

5. Payment systems6. Claims

administration

7. Records

management

system

1. Procurement

documentation

2. Organizational

process assets

updates3. Change Requests


plan updates

InputOutput

Tools


46/48

Suggestions on Change Control for Contracts

Changes to any part of the project need to be reviewed,

approved, and documented by the same people in the same

way that the original part of the plan was approved

Evaluation of any change should include an impact analysis.

Changes must be documented in writing

Project team members should also document all important

meetings and telephone phone calls


47/48

Suggestions on Change Control for Contracts

Project managers and teams just stay closely involved to

make sure the new system will meet business needs and

work in an operational environment

Have backup plans

Use tools and techniques like a contract change control

system, buyer-conducted performance reviews, inspections

and audits, etc.


48/48

Questions

PMP Lecture 10

Documents

Transcript of PMP Lecture 10