PMP Student Guide

PMP Exam Preparation Course

Project Management Professional

Exam Preparation Course

Copyrights


This book is produced by Techno Management®, a project management

consulting company, registered in Canada. This document may not be

reproduced, stored in a retrieval system, or transmitted in whole or in part, in

any form or by any means, electronic, mechanical, photocopying, recording,

or otherwise, without the prior written permission of Techno Management®.

PMBOK and PMP are trademarks registered by the Project Management

Institute (PMI) in the United States and other nations.

1- Introduction


Table of Contents 1. Introduction ............................................................................................................ 5

2. Project Management Framework ........................................................................... 7 2.1 TERMS AND DEFINITIONS .................................................................................................. 7 2.2 COMPARATIVE OVERVIEW ................................................................................................ 9 2.3 PROJECT CHARACTERISTICS ............................................................................................ 9 2.4 PROJECTS VS. OPERATIONAL WORK: .............................................................................. 11 2.5 PROJECT CONSTRAINTS ................................................................................................. 11 2.6 ROLE OF A PROJECT MANAGER ....................................................................................... 14 2.7 PROJECT STAKEHOLDERS .............................................................................................. 14 2.8 PROJECT ORGANIZATION STRUCTURE ............................................................................ 15 2.9 ORGANIZATIONS CHARACTERISTICS ................................................................................ 18 2.10 LIFE CYCLES AND PROCESS GROUPS ............................................................................. 19 2.11 PROCESS GROUPS ........................................................................................................ 19 2.12 INTERACTION BETWEEN PHASES ..................................................................................... 20 2.13 PMI KNOWLEDGE AREAS ............................................................................................... 21

3. Project Initiation Phase ........................................................................................ 29 3.1 DEVELOP PROJECT CHARTER ......................................................................................... 30 3.2 IDENTIFY STAKEHOLDERS ............................................................................................... 35

4. Project Planning Phase ......................................................................................... 40 4.1 DEVELOP PROJECT MANAGEMENT PLAN ......................................................................... 41 4.2 COLLECT REQUIREMENTS .............................................................................................. 45 4.3 DEFINE SCOPE .............................................................................................................. 51 4.4 CREATE WBS ................................................................................................................ 58 4.5 DEFINE ACTIVITIES ......................................................................................................... 63 4.6 SEQUENCE ACTIVITIES ................................................................................................... 69 4.7 ESTIMATE ACTIVITY RESOURCES .................................................................................... 75 4.8 ESTIMATE ACTIVITY DURATIONS ..................................................................................... 80 4.9 DEVELOP SCHEDULE ...................................................................................................... 85 4.10 ESTIMATE COSTS ........................................................................................................... 94 4.11 DETERMINE BUDGET .................................................................................................... 100 4.12 PLAN QUALITY ............................................................................................................. 104 4.13 DEVELOP HUMAN RESOURCE PLAN .............................................................................. 117 4.14 PLAN COMMUNICATIONS............................................................................................... 123 4.15 PLAN RISK MANAGEMENT ............................................................................................. 129 4.16 IDENTIFY RISKS............................................................................................................ 133 4.17 PERFORM QUALITATIVE RISK ANALYSIS ........................................................................ 139 4.18 PERFORM QUANTITATIVE RISK ANALYSIS ...................................................................... 144 4.19 PLAN RISK RESPONSES ............................................................................................... 149 4.20 PLAN PROCUREMENTS ................................................................................................. 155

5. Project Execution Phase ..................................................................................... 167 5.1 DIRECT AND MANAGE PROJECT EXECUTION .................................................................. 168 5.2 PERFORM QUALITY ASSURANCE ................................................................................... 172 5.3 ACQUIRE PROJECT TEAM ............................................................................................. 176 5.4 DEVELOP PROJECT TEAM ............................................................................................. 180 5.5 MANAGE PROJECT TEAM .............................................................................................. 187 5.6 DISTRIBUTE INFORMATION ............................................................................................ 191 5.7 MANAGE STAKEHOLDER EXPECTATIONS ....................................................................... 194 5.8 CONDUCT PROCUREMENT ............................................................................................ 197

1- Introduction


6. Project Monitor and Control Phase .................................................................... 203 6.1 MONITOR AND CONTROL PROJECT WORK ..................................................................... 204 6.2 PERFORM INTEGRATED CHANGE CONTROL ................................................................... 207 6.3 VERIFY SCOPE ............................................................................................................. 210 6.4 CONTROL SCOPE ......................................................................................................... 212 6.5 CONTROL SCHEDULE ................................................................................................... 216 6.6 CONTROL COSTS ......................................................................................................... 219 6.7 PERFORM QUALITY CONTROL ....................................................................................... 231 6.8 REPORT PERFORMANCE............................................................................................... 241 6.9 MONITOR AND CONTROL RISKS .................................................................................... 246 6.10 ADMINISTER PROCUREMENTS ....................................................................................... 250

7. Project Closing Phase ........................................................................................ 254 7.1 CLOSE PROJECT OR PHASE.......................................................................................... 255 7.2 CLOSE PROCUREMENT ................................................................................................. 258

8. Appendix-1 Case Study ..................................................................................... 261

9. Appendix-2 Exercise Forms .............................................................................. 262 9.1 PROJECT CHARTER ...................................................................................................... 262 9.2 SCOPE STATEMENT ..................................................................................................... 263 9.3 ASSUMPTION LIST ........................................................................................................ 264 9.4 WORK BREAKDOWN STRUCTURE .................................................................................. 265 9.5 ACTIVITY LIST, RESOURCE ASSIGNMENT, DEPENDENCY & TIME ESTIMATE ..................... 266 9.6 QUALITY MANAGEMENT PLAN ....................................................................................... 267 9.7 RISK ANALYSIS ............................................................................................................ 268 9.8 RISK ANALYSIS ............................................................................................................ 269 9.9 CHANGE CONTROL....................................................................................................... 270

10. Appendix-3 List of Figures ............................................................................. 271

11. Appendix-4 List of Tables .............................................................................. 274

12. Appendix-5 List of Exercises .......................................................................... 275

13. Appendix-6 List of Group Discussions........................................................... 276

1- Introduction


1. Introduction

This book is directed to the project management professionals who are seeking the Project Management Professional certification. It covers al the material that needed to be covered to help passing the PMP exam and covered in the PMBOK®. The approach taken here to present the material is different than the one taken in the PMBOK® in that the material goes through the project phase rather than the knowledge areas. This will help presenting the knowledge in a better logical flow that will make it more clear and logical to understand. This book addresses the practical side of the project management by having a case study that will be taken from the very initial project stage to its completion. This will bone through comprehensive group workshops that will facilitate explaining the material in a clear and practical approach. The book is structured as follow:

1- Project Framework 2- Project Initiation Phase 3- Project Planning Phase 4- Project Executing Phase 5- Project Monitor and Control Phase 6- Appendix-1, Case Study 7- Appendix-2, Exercise Forms 8- Appendix-3, List of Figures 9- Appendix-4, List of Tables 10- Appendix-5, List of Exercises 11- Appendix-6, List of Group Discussions

1- Introduction


Group Discussion ‎1-1-Student’s‎Expectations

Group Discussion 1.1– Student’s Expectations Please write down your expectations out of the course. This sheet will be collected, compiled to produce the overall class expectations and will be reviewed by the end of the course.

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

3- Initiation Phase


2. Project Management Framework

This section provides an introduction to the key concepts covered by the PMBOK® Guide. These concepts are valid to manage any project in any size. It will cover the following areas:

1- The purpose of the PMBOK® Guide 2- Project definition 3- Project management definition 4- Relationship among the Project Management, Program

management and Portfolio Management 5- Project Management and Operations Management 6- The role of the project manager 7- Project management body of knowledge

2.1 Terms and Definitions

1. Project A project is a temporary endeavor undertaken to create a unique product or service. (Source: PMBOK® Guide - Fourth Edition, page 5) A project is a sequence of unique and connected activities having one goal that must be completed by a specific time, within a budget and according to specification.

2. Program A program is a group of related projects managed in a coordinated way to obtain benefits not available from managing them individually. (Source: PMBOK® Guide - Fourth Edition, page 9)

3. Portfolio

A program is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. (Source: PMBOK® Guide - Fourth Edition, page 8)

4. Project management

Project management is the application of knowledge, skills, tools, and techniques to project activities to meet projects requirements. (Source: PMBOK® Guide – Release 4, page 6)

5. Project Portfolio Management

3- Initiation Phase


Project portfolio management refers to the selection and support of projects or program investments, which are guided by the organization's strategic plan and available resources.

6. Standards It is a document established by consensus and approved by recognized body that provides for common and repeated use rules, guidelines and regulations. They are imposed requirement which specifies product, process or service characteristics.

7. Project Management Office A project management office (PMO) is an organizational unit to centralize and coordinate the management of projects under its domain. PMOs can operate on a continuum, from providing project management support functions in the form of training, software, standardized policies, and procedures, to actual direct management and responsibility for achieving the project objectives. (Source: PMBOK® Guide – Release 4, page 11)

3- Initiation Phase


2.2 Comparative Overview

PROJECT PROGRAMS PORTFOLIOS

Scope Project have defend objectives, Scope is progressively elaborated throughout the project life cycle

Programs have a larger scope and provide more significant benefits.

Portfolios have a business scope that change with the strategic goals of the organization.

Change Project managers expect change and implement processes to keep change managed and controlled.

The program manager must expect change from both inside and outside the program and be prepared to manage it.

Portfolio managers continually monitor changes in the broad environment.

Planning Project mangers progressively elaborate high-level information into detailed plans throughout the project life cycle.

Program managers develop the overall program plan and create high-level plans to guide detailed planning at the component level.

Portfolio managers create and maintain necessary processes and communication relative to the aggregate portfolio.

Management Project managers manage the project team to meet the project objectives

Program managers manage the program staff and the project managers; they provide vision and overall leadership.

Portfolio managers may manage or coordinate portfolio management staff.

Success Success is measured by product and project quality, timeliness, budget compliance, and degree of customer satisfaction.

Success is measured by the degree to which the program satisfies the needs and benefits for which it was undertaken.

Success is measured in terms of aggregate performance of portfolio components.

Monitoring Project managers monitor and control the work of producing the products, service or results that the project was undertaken to produce.

Program managers monitor the progress of program components to ensure the overall goals, schedules, budget, and benefits of the program will be met.

Portfolio managers monitor aggregate performance and value indicators.

Table ‎2-1- Comparative Overview

Source: PMBOK® Guide - Fourth Edition, page 9

2.3 Project Characteristics

Projects vary in size and complexity. Regardless the project nature, they all share common characteristics that should be maintained throughout the project life cycle. These characteristics are:

Unique. There is no two identical projects

One time efforts. No second chance.

Defined duration

Defined output

Defined Budget

Use Resources

3- Initiation Phase


Group Discussion ‎2-1- Which one is not a project

Group Discussion 2.1 – Which one is not a project? Which one of the following list is not a project? I.e. does not match the project definition criteria? Justify your answers:

1. Building a bridge. 2. Painting the house. 3. Learning Tango dance. 4. Having a Family. 5. Implementing National Social Number. 6. Preparing a morning coffee.

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

3- Initiation Phase


2.4 Projects vs. Operational Work:

Projects in nature are one time effort, as opposed to operations, which is a repetitive effort that is systematically repeated on periodical way. Although they are different in their nature, and hence in the way they are managed, yet they share the following characteristics:

Performed by people

Constrained by limited resources

Planned, executed, and controlled. Also, Projects and operations differ in that:

Operations are ongoing and repetitive, while projects are temporary and unique.

Operational work can be thought of repetitive work that each one is comprised of many related small projects.

2.5 Project Constraints

They are the known factors that limit the project teams’ options. Three main constraints from which, other derivates are produced:

1- Time (Schedule) 2- Budget (Cost) 3- Specifications (Quality)

Project Success Criteria Projects are said to be successful when the project team manages to complete the project within the agreed upon (contracted) constrains. Generally speaking the project is successful if it is completed:

Within time (schedule)

Within cost (budget)

Within specifications (requirements)

3- Initiation Phase


A project may be sensitive to one of those constraints, but once contract is signed, they are all important and the project manager should adhere to all constraints.

3- Initiation Phase


Group Discussion ‎2-2-Project Constraints

Group Discussion 2.2– Project Constraints From your perspective, and considering the nature of business of your organization, which of the following constraints is more important?

1. Cost 2. Time 3. Budget

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

3- Initiation Phase


2.6 Role of a Project Manager

The project manager is the maestro who orchestrates all the project activities. By doing the analogy with the maestro, the project team will never perform in harmony unless the project manager leads the team and guides each team member to his / her role of the project. The project manager job is a full time job that requires the project manager doing many activities that are not limited to, but include the following:

Acts as the single point of contact on the project.

Planning and organizing the work

Managing the day-to-day activities of a project

Delivering the project deliverables to the client

Identifying potential stakeholders

2.7 Project Stakeholders

Projects are done by people, for people to produce products that will be used by other people. The combined people of these three groups (done by, for, to be used) is called “Stakeholders”. Stakeholders are defined as “any one impacts the project positively or negatively”. The stakeholder list includes, but not limited to:

Project Manager

Customer

Performing organization, owners, government agencies

Project Sponsor

Developing Team

Internal external users

End user

Society, citizens

Others: owners, funders, suppliers It is the project manager’s responsibility to identify the project stakeholders, as he will need to communicate with them throughout the project life cycle. Missing any stakeholders may lead to miscommunication problems that may jeopardize the project success.

3- Initiation Phase


2.8 Project Organization Structure

Organization structure influences the way how projects are managed. The degree of the project management maturity and its project management system also has a high impact on the project success. Organization structure is an organizational environmental factor which affects the resources availability and how they are controlled. It also affects the degree of the authorities of the project manager in the decision making process. Below are the basic organization structures that PMBOK® Guide identifies:

Functional

Matrix

Weak matrix

Balanced matrix

Strong matrix

Projectized

Composite The PMBOK® Guide is addressing the “Project” organization structure and not the “Company” organization structure. Most companies are based on Functional organization structure, but a project manager in this company can manage a project(s) based on Functional project organization and at the same time other project(s) based on Matrix organization structure.

2.8.1 Functional Project Organization

This is the classical functional organization. In this structure, each employee has one clear superior. Staff members are grouped by specialty area that is called departments or divisions. These areas may be divided further down to a lower level of hierarchy, but they all share the fact that each employee has one clear superior.

Figure ‎2-1- Functional Origination


Staff

Chief Executive

Officer

Staff

Functional

Manager 3

Functional

Manager 2

StaffStaff

Staff

Staff

Functional

Manager 1

Staff

Staff

Staff

Project Coordination

3- Initiation Phase


2.8.2 Matrix Organization

Projects that need to be implemented and managed across divisions need an organizational model that allows communication across divisions. The classical functional organizational will not fit here, as communication between the project manager and the team members should be very fast and does not tolerate the bureaucracy of the functional organization. A new organizational structure is applied here. It is called Matrix, as it works across organization in rows and columns like the mathematical matrix structure. There are three types of matrix organizations:

1. Weak 2. Strong 3. Balanced

1- Weak Matrix Organization In this organizational structure, many of the functional organization features are maintained. The project manager role is more of a coordinator or expeditor. The project manager can work in this model on part time basis.

Figure ‎2-2- Weak Matrix Origination


2- Strong Matrix Organization This structure requires a full time project manager with considerable authority. Based on the project size, he may be assisted with a full time administrative staff to help in the different project administration functions. This model fits with projects that need high authority project manager. In many cases, the company needs to be structured in a

Staff

Chief Executive

Officer

Staff

Functional

Manager 3

Functional

Manager 2

StaffStaff

Staff

Staff

Functional

Manager 1

Staff

Staff

Staff


3- Initiation Phase


certain way to serve this model. A PMO “Project Management Office” is an example of this implementation.

Figure ‎2-3- Strong Matrix Origination


3- Balanced Matrix Organization This model does not provide a full authority to the project manager, yet, it gives him/her enough authority to manage the resources. This model fits with projects that require managing projects across divisions and do not need a high authority project manager.

Figure ‎2-4- Balanced Matrix Origination


Staff

Staff

Staff

Staff

Staff

Staff


Project Manager

Project Manager

Project Manager

Staff

Chief

Executive

Officer

Staff

Functional

Manager 3

Functional

Manager 2

Staff

Functional

Manager 1

Manager of

Project Managers

Staff

Chief Executive

Officer

Staff

Functional

Manager 3

Functional

Manager 2

StaffProject Manager

Staff

Staff

Functional

Manager 1

Staff

Staff

Staff


3- Initiation Phase


2.8.3 Projectized Organization

This is the model that the project manager exercises the highest level of authority. Most of the company employees are co-located and involved in the project work.

Figure ‎2-5- Projectized Origination


2.9 Organizations Characteristics

Functional Matrix Projectized

Weak Balanced Strong

Project Manager’s Authority

Little or None Limited Low to Moderate

Moderate to High

High to Almost Total

Resource Availability

Little or None Limited Low to Moderate

Moderate to High

High to Almost Total

Who controls the Budget?

Functional Manager

Functional Manager

Mixed Project Manager

Project Manager

Project manager’s role

Part-Time Part-Time Full-Time Full-Time Full-Time

PM admin. Staff Part-Time Part-Time Part-Time Full-Time Full-Time

Table ‎2-2- Organizational Influence on Projects


Staff

Chief Executive

Officer

Staff

Project

Manager 3

Project

Manager 2

Staff

Staff

Project

Manager 1

Staff

Staff

Staff


Staff

Staff

3- Initiation Phase


2.10 Life Cycles and Process Groups

Projects are exactly like people. They grow over time. They are created (incepted), grow (managed) and die (close out). This forms a typical life cycle that projects go through. There two interdependent life cycles:

1- Project Life Cycle 2- Project Management Life Cycle

2.10.1 The Project Life Cycle

This is a product based cycle, through which the product of the project goes through. People involved in this are technical people (accountants, engineers, programmers, architect, lawyers etc.) They need to have a strong technical knowledge in their expertise area and they do not need to possess strong project management knowledge, although having it is a plus.

Figure ‎2-6- Project Life Cycle

2.10.2 The Project Management Life Cycle

This is a project based cycle, through which the project goes through. The project manager will manage the project based on this cycle. Each phase will contain many project management activities. Project managers need to have a strong knowledge in the different project management knowledge areas, and do not need, although will be a plus, to have a strong business knowledge.

Figure ‎2-7- Management Project Life Cycle

2.11 Process Groups

1- Initiating Process Group. Defines and authorizes the project or a project phase.

3- Initiation Phase


2- Planning Process Group. Defines and refines objectives, and plans the course of action required to attain the objectives and scope that the project was undertaken to address. 3- Executing Process Group. Integrates people and other resources to carry out the project management plan for the project 4- Monitoring and Controlling Process Group. Regularly measures and monitors progress to identify variances from the project management plan so that corrective actions can be taken when necessary to meet project objectives. 5- Closing Process Group. Formalizes acceptance of the product, service or result and brings the project or a project phase to an orderly end.

Figure ‎2-8- Project Process Groups

2.12 Interaction between Phases

The process groups explained above are not to be performed one time only across the project life cycle, but also will be done within each project phase. From the project management perspective, each phase is treated as a complete project that includes all the project management process groups as illustrated in the following figure.

3- Initiation Phase


Figure ‎2-9- Project Process Groups Interaction

Process groups are not discrete. In other words, they should not be done and completed sequentially. There are some overlaps between them as illustrated in the following figure.

Figure ‎2-10- Process Group Overlapping

2.13 PMI Knowledge Areas

Project Management Institute (PMI) defined the following knowledge areas that are needed to be known by the professional project managers:

1- Project Integration Management 2- Project Scope Management 3- Project Time Management 4- Project Cost Management 5- Project Quality Management 6- Project Human Resources Management 7- Project Communication Management 8- Project Risk Management 9- Project Procurement Management

3- Initiation Phase


On top of the above areas, the “Professional Responsibility” supplement was

added. It is not considered as a tenth area, but will be included in the PMP

exam preparation test with a relatively low weight.

3- Initiation Phase


Project Management Process Groups and Knowledge Area Mapping Note: Numbering starts form 4, to match the numbering of the PMBOK® Guide

Knowledge Areas

Project Management Process Groups

Initiating Process Group

Planning Process Group

Executing Process Group

Monitoring & Controlling

Process Group

Closing Process Group

4. 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

5. Project Scope Management

5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS

5.4 Verify Scope 5.5 Control Scope

6. Project Time Management

6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule

6.6 Control Schedule

7. Project Cost Management

7.1 Estimate Costs 7.2 Determine Budget

7.3 Control Costs

8. Project Quality Management

8.1 Plan Quality

8.2 Perform Quality Assurance

8.3 Perform Quality Control

9. 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

10. Project Communications Management

10.1 Identify Stakeholders

10.2 Plan Communications

10.3 Distribute Information 10.4 Manage Stakeholder Expectations

10.5 Report Performance

11. 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 and Control Risks

12. Project Procurement Management

12.1 Plan Procurements

12.2 Conduct Procurements

12.3 Administer Procurements

12.4 Close Procurements

Table ‎2-3- Project Management Process Groups and Knowledge Area Mapping


3- Initiation Phase


Initiating Process Group 4.1 Develop Project Charter 10.1 Identify Stakeholders

Figure ‎2-11- Initiating Process Group

3- Initiation Phase


Planning Process Group 4.2 Develop Project Management Plan 5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 7.1 Estimate Costs 7.2 Determine Budget 8.1 Plan Quality 9.1 Develop Human Resource Plan 10.2 Plan Communications 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 12.1 Plan Procurements

Figure ‎2-12- Planning Process Group

3- Initiation Phase


Executing Process Group 4.3 Direct and Manage Project Execution 8.2 Perform Quality Assurance 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team 10.3 Distribute Information 10.4 Manage Stakeholder Expectations 12.2 Conduct Procurements

Figure ‎2-13- Executing Process Group

3- Initiation Phase


Monitoring & Controlling Process Group 4.4 Monitor and Control Project Work 4.5 Perform Integrated Change Control 5.4 Verify Scope 5.5 Control Scope 6.6 Control Schedule 7.3 Control Costs 8.3 Perform Quality Control 10.5 Report Performance 11.6 Monitor and Control Risks 12.3 Administer Procurements

Figure ‎2-14- Monitor and Control Process Group

3- Initiation Phase


Closing Process Group 4.6 Close Project or Phase 12.4 Close Procurements

Figure ‎2-15- Closing Process Group

Project Management Process Interaction

Figure ‎2-16- Project Management Process Interaction

3- Initiation Phase


3. Project Initiation Phase

Project initiation phase is the phase in which the project idea is incepted and a

decision is made whether the project will be selected by the organization for

implementation or will be postponed for a later date or will be rejected. This

phase combines the following two processes, within the initiation process

group:

4.1 Develop Project Charter 10.1 Identify Stakeholders

3- Initiation Phase


3.1 Develop Project Charter

Figure ‎3-1- Develop Project Charter Process

Source: PMBOK® Guide – Fourth Edition, page 73

Definition Develop Project Charter is the process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholders' needs and expectations.


3- Initiation Phase


Process Interaction

Figure ‎3-2 - Develop Project Charter – Process Interaction

3.1.1 Inputs to Develop Project Charter

1. Project statement of work 2. Business case 3. Contract (if available) 4. Enterprise environmental factors 5. Organizational process assets

1. Project statement of work Statement of work is the document that describes the project work. It contains the following:

Business needs

Product scope description

Strategic plan

2. Business case It is the document that includes the necessary information from the business perspective. It contains:

Market demand

Organizational need

3- Initiation Phase


Customer request

Technologies advance

Legal requirement

Ecological impacts

Social need

3. Contract (if available) A contract from the customer’s acquiring organization is an input if the project is being done for an external customer.

4. Enterprise environmental factors

Governmental or industry standards

Organization infrastructure

Marketplace conditions

5. Organizational process assets

Organizational standard processes, policies, and standardized process definitions for use in the organization

Templates (e.g. project charter template)

Historical information and lessons learned knowledge base

3.1.2 Tools and Techniques for Develop Project Charter

1. Expert judgment

1. Expert judgment Expert judgment is used to assess the input used to develop the charter. The expertise is obtained from:

Other units from the organization

Consultants

Stakeholders, including customers or sponsors

Professional and technical associations

Industry groups

Subject matter experts

Project management office (PMO)

3.1.3 Outputs of Develop Project Charter

1. Project charter

1. Project charter The project charter documents the business needs and the current customer requirements by addressing:

3- Initiation Phase


Project purpose or justification

Measurable project objectives and related success criteria

High-level requirements

High-level project description

High-level risks

Summary milestone schedule

Summary budget

Project approval requirements (what constitutes project success, who decides the project is successful and who signs off on the project)

Assigned project manager, responsibility and authority level

Name and authority of the sponsor or other person (s) authorizing the project charter.

3- Initiation Phase


Exercise ‎3-1 - Develop Project Charter

Exercise 3.1 – Develop Project Charter In the provided case study in Appendix 1, develop the project charter. Note: use the following form.

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

3- Initiation Phase


3.2 Identify Stakeholders

Figure ‎3-3- Identify Stakeholders Process


1.Project charter

2.Procurement

documents

3.Enterprise

environmental

factors

4.Organizational

process assets

Inputs

1.Stakeholder

analysis

2.Expert judgment

Tools &

Techniques

1.Stakeholder

register

2.Stakeholder

management

strategy

Outputs

Definition Identify Stakeholders is the process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success.


3- Initiation Phase


Process Interaction

Figure ‎3-4 Identify Stakeholders – Process Interaction

Dimensions of Communication Activities The project manager is the center of the communication hub within the project. He communicates will all project stakeholders in many different levels, as follows:

Internal and External

Formal and Informal

Vertical and Horizontal

Official and unofficial

Written and Oral

Verbal and Non-Verbal

3.2.1 Inputs to Identify Stakeholders

1. Project charter 2. Procurement documents 3. Enterprise environmental factors 4. Organizational process assets

3- Initiation Phase


3.2.2 Tools and Techniques for Identify Stakeholders

1. Stakeholder analysis 2. Expert judgment

1. Stakeholder analysis It is the technique of systematically gathering and analyzing qualitative and quantitative information to determine whose interest should be taken into account. It defines the interest, expectations and influence of stakeholders and relate them to the purpose of the project.

Steps of Stakeholders Analysis Step 1: Identify all potential project stakeholders and relevant information. Step 2: Identify the potential impact or support each stakeholder could generate:

Power/interest grid

Power/influence grid

Influence/impact grid

Salience model Step 3: Assess how key stakeholders are likely to react or respond in various situations.

Power / Interest Grid Power interest grid is the method of grouping the stakeholders based on their level of authority (power) and their level of concern (interest) regarding the project outcome.

Figure ‎3-5 Power / Interest Grid

2. Expert judgment

Keep

Satisfied

Monitor Keep

Informed

Manage

Closely

Interest

Power

LowHigh

High

GF

A

D

H

B

E

C

3- Initiation Phase


Identifying the project stakeholders requires high level of knowledge and expertise in order not to miss any one who could be with an important role in the project and missing him/her may damage the project outcome. Experts include, but not limited to the following:

Senior management

Other units within the organization

Identified key stakeholders

Project managers who have worked on projects in the same area

Subject matter experts (SMEs) in business or project area

Industry groups and consultants, and


3.2.3 Outputs of Identify Stakeholders

1. Stakeholder register 2. Stakeholder management strategy

1. Stakeholder register Stakeholder register is the repository that contains all the details about each stakeholder, including the following:

Identification information

Assessment information

Stakeholder classification

2. Stakeholder management strategy Based in the identified stakeholders, included in eth stakeholders’ register, a strategy will be assigned to each key stakeholder. The strategy will include elements such as:

Key stakeholders who can significantly impact the project

Level of participation in the project desired for each identified stakeholder, and

Stakeholder groups and their management (as groups)

3- Initiation Phase


Exercise ‎3-2 - Stakeholder Analysis

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 3.2 – Stakeholder Analysis In the provided case study, analyze the stakeholder and communication needs by providing the following information:

1. Stakeholder 2. Organization 3. Position 4. Communication Needs

4- Planning Phase


4. Project Planning Phase

Project planning phase is the phase where all the project plans are created. It is the time where all project activities are identified, assigned and scheduled. During the phase, the following twenty planning processes are executed:

4.2 Develop Project Management Plan 5.1 Collect Requirements 5.2 Define Scope 5.3 Create WBS 6.1 Define Activities 6.2 Sequence Activities 6.3 Estimate Activity Resources 6.4 Estimate Activity Durations 6.5 Develop Schedule 7.1 Estimate Costs 7.2 Determine Budget 8.1 Plan Quality 9.1 Develop Human Resource Plan 10.2 Plan Communications 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 12.1 Plan Procurements

4- Planning Phase


4.1 Develop Project Management plan

Figure ‎4-1 - Develop Project Management plan Process


1.Project charter

2.Outputs from

planning

processes

3.Enterprise

environmental

factors

4.Organizational

process assets

Inputs

1.Expert judgment

Tools &

Techniques

1.Project

management

plan

Outputs

Definition Develop Project Management Plan is the process of documenting the actions necessary to define, prepare, integrate and coordinate all subsidiary plans.


4- Planning Phase


Process Interaction

Figure ‎4-2 Develop Project Management plan – Process Interaction

4.1.1 Inputs to Develop Project Management plan

1- Project charter 2- Outputs from all planning processes 3- Enterprise environmental factors 4- Organizational process assets

4.1.2 Tools and Techniques for Develop Project Management plan

1- Expert judgment

1. Expert judgment In this process, expert judgment is utilized to:

Tailor the process to meet the project needs

Develop technical and management details

Determine the requires resources and skill levels

Define the required level of configuration management

4- Planning Phase


4.1.3 Outputs of Develop Project Management plan

1- Project management plan

1. Project management plan The project management plan integrates and consolidates all of the subsidiary management plans and baselines from the planning processes and includes the project baseline and subsidiary plans Project Baseline Project baselines include, but are not limited to:

Schedule baseline

Cost performance baseline, and

Scope baseline Subsidiary Plans Subsidiary plans include, but are not limited

Scope management plan

Requirements management plan

Schedule management plan

Cost management plan

Quality management plan

Process improvement plan

Human resource plan

Communications management plan

Risk management plan

Procurement management plan

4- Planning Phase


Exercise ‎4-1 - Change Management Process

Exercise 4.1 – Change Management Process Change management plan is part of the overall project plan, discuss the below change management process and reflect it to your environment.

Initial assessment,

appoint assessor

Analysis,

evaluation, assess

Impact

Complete chg. req.

Impact Study

Agree Make changes

File Change

Request

Initial review &

discussion

Discuss/ negotiate

with Tech.Lead

Call Change Mgnt.

Meeting

Agree

Stop

Raise Change

Request Form

START

Tech. Lead

Assessor

Assessor

Review assessment

Tech. Lead

Yes

No Impact

Dev. Team

Stop

Initiator

Yes

No

No

Yes

Change has an Impact

Amend Agreements

Update Proj. Plan

Re-baseline

Will it affect

Cost or

timescales

No

Change Reqest

Endorsement by

Steering Committee

Yes

4- Planning Phase


4.2 Collect Requirements

Figure ‎4-3- Collect Requirements Process


4.2.1 Inputs to Collect Requirements

1- Project Charter 2- Stakeholder Register

1- Project Charter: is used to provide the high-level project requirements that can be developed.

2- Stakeholder Register: is used to identify stakeholders that can provide information on detailed project and product requirements.

4.2.2 Tools and Techniques for Collect Requirements

1- Interviews 2- Focus Groups

1.Project charter

2.Stakeholder

register

Inputs

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

Tools &

Techniques

1.Requirements

documentation

2. Requirements

management

plan

3.Requirements

traceability

matrix

Outputs

Definition Collect requirements is the process of defining and documenting stakeholders’ needs to meet the project objectives.


4- Planning Phase


3- Facilitated Workshops 4- Group Creativity Techniques

1. Interviews They are formal or informal approach to discover information from stakeholders by talking to them directly. It is typically performed by asking prepared and spontaneous questions and recording the responses. Interviews are often conducted “one-on-one”, but may involve multiple interviewers and/or multiple interviewees. Interviewing experienced project participants, stakeholders and subject matter experts can aid in identifying and defining the features and functions of the desired project deliverables. 2. Focus Groups Bring together pre-qualified stakeholders and subject matter experts to learn about their expectations about a proposed product. A trained moderator guides the group through an interactive discussion, designed to be more conversational than a one-on-one interview. 3. Facilitated Workshops Requirements workshops are focused sessions that bring key cross-functional stakeholders together to define product requirements. Workshops are considered as primary techniques for quickly defining cross-functional requirements and reconciling stakeholder differences. These differences can be discovered and resolved more quickly than in individual interviews 4. Group Creativity Techniques

Brainstorming

Nominal group technique

Delphi Technique

Idea/mind mapping

Affinity diagram

4.2.3 Outputs of Collect Requirements

1- Requirements documentation 2- Requirements management plan 3- Requirements traceability matrix

1. Requirements documentation Requirements Documentation describes how individual requirements meet the business need of the project. Requirements may start out at a

4- Planning Phase


high level and become progressively more detailed as more information is known. Before being baselined, requirements must be unambiguous, traceable, complete, consistent, and acceptable to key stakeholders.

Requirements Documentation Components

There is no standard template to produce the requirements document. But below are its general components:

Business need or opportunity to be seized.

Business and project objectives for traceability

Functional requirements, describing business process, information and interaction with the product as appropriate which can be documented textually in a requirements list

Non-functional requirements such as level of service, performance, safety, security, compliance, supportability, retention etc.

Quality requirements

Acceptance criteria.

Business rules stating the guiding principles of the organization

Impacts to other organizational areas

Impacts to other entities inside or outside

Support and training requirements

Requirements assumptions and constraints

2. Requirements management plan It documents how requirements will be analyzed, documented and managed throughout the project. It contains the following components:

How requirements activities will be planned, tracked and reported.

Configuration management activities such as how changes to the product, service or result requirements will be initiated, how impacts will be analyzed

Requirements prioritization process

Product metrics that will be used and the rationale for using them

Traceability structure that is which requirements attributes will be captured on the traceability matrix and to which other project documentation requirements will be traced.

The Delphi Technique It is an anonymous way to reach a consensus of experts on a subject. It involves the following:

Questionnaire to solicit ideas from the experts

Responses are submitted anonymously, compiled, and then circulated to the experts for review

4- Planning Phase


3. Requirements traceability matrix It is a table that links requirements to their original business objective. This process includes:

Requirements to business needs, opportunities, goals, and objectives

Requirements to project objectives

Requirements to project scope/WBS deliverables

Requirements to product design

Requirements to product development

Requirements to test strategy and test scenarios, and

High-level requirements to more detailed requirements

4- Planning Phase


Group Discussion ‎4-1-Requirements Gathering Challenges

Group Discussion 4.1 – Requirements Gathering Challenges Highlight the most problematic areas in the process of gathering requirements in your organization. Use the following as guidelines:

1. Lacking time to complete the requirement gathering process 2. Customers may not know what they really want 3. Too many changes

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

4- Planning Phase


Exercise ‎4-2-Create Project Charter

Exercise 4.2 – Create Project Charter Based on the supplied case study, create the Project Charter that will provide a high authority for the project manager. Consider specifying the following:

1. Customer 2. Project Name 3. Project Description 4. Project Manager: Name and Authority Level 5. Business Needs 6. Issued By Manager

Note: Use form 9.1 in Appendix 2

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

4- Planning Phase


4.3 Define Scope

Figure ‎4-4- Define Scope Process


1.Project charter

2.Requirements

documentation

3.Organizational

process assets

Inputs

1.Expert judgment

2.Product analysis

3.Alternatives

identification

4.Facilitated

workshops

Tools &

Techniques

1.Project scope

statement

2.Project

document

updates

Outputs

Definition Define Scope is the process of developing a detailed description of the project and product.


4- Planning Phase


Group Discussion ‎4-2- Scope Creep Indicators

Group Discussion 4.2– Scope Creep Indicators From your perspective, what do you think of the following three statements?

1. Exceeding Customer Expectations 2. Delivering State of the art products 3. Providing low cost items, that may not cost anything free of charge

Your Notes 1. Exceeding Customer Expectations

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

2. Delivering State if the art products _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

3. Providing low cost items, that may not cost anything free of charge

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

4- Planning Phase


4.3.1 Inputs of Define Scope

1- Project charter 2- Requirements documentation 3- Organizational process assets: 4- Policies, procedures, and templates for a project scope statements 5- Project files from previous projects, and 6- Lessons learned from previous phases or project

4.3.2 Tools and Techniques for Define Scope

1- Expert judgment 2- Product analysis 3- Alternatives identification 4- Facilitated workshops

1. Expert judgment This is the tools of getting the opinion of experts who have had previous experience in similar projects. Experts can be obtained from the following categories:

Other units within the organization

Consultants

Stakeholders including customers or sponsors


Industry groups and

Subject matter experts

2. Product analysis Each application area has one or more generally accepted methods for translating high-level product descriptions into tangible deliverables. Product analysis includes techniques such as:

Product breakdown

Systems analysis

Requirements analysis

System engineering

Value engineering

Value analysis.

3. Alternatives identification Identifying alternatives is a technique used to generate different approaches to execute and perform the work of the project. A variety of general management techniques can be used such as brainstorming, lateral thinking, pair wise comparisons, etc.

4- Planning Phase


4.3.3 Outputs of Define Scope

1- Project scope statement 2- Project document updates

1. Project scope statement This document describes, in detail, the projects deliverables and the work required to create those deliverables. It also provides a common understanding of the project scope among project stakeholders. The Project Scope Statement may contain explicit scope exclusions that can assist in managing stakeholder expectations. Below are some of the benefits of the project scope statement:

Help the project team to perform more detailed planning

Guides the project team’s work during execution

Provides the baseline for evaluating whether requests for changes or additional work are contained within or outside the project’s boundaries

Scope Statement Content As the details are not always ready from day one of the project, so this document may be compiled progressively over a period of time. The contents of this document include, but not limited to the following:

Product scope description

Product acceptance criteria

Project deliverables

Work breakdown structure

Project exclusions

Project constraints

Project assumptions

Project boundaries

Project resources

Project milestones

Project stakeholders

Project Risks

Identifying Constraints Examples of constraints that may be faced during a project:

Budget

Schedule

People

Facilities and Equipment

Constraints: Are known factors, which limit the project team’s options. Assumptions: Are factors that, for planning purposes, are considered to be true, real, or certain. They need to be validated during the course of project planning

4- Planning Phase


Fault tolerant objectives

Portability requirements

The real world

Identifying Assumptions Assumptions are identified and documented during the planning process as they affect all aspects of planning. They need to be verified to ensure that they are true. In case if it is proven to be false, then re-planning is needed. They always carry a certain degree of risk

Unquantifiable Expectations Some expectations “requirements” may be difficult to quantify, they need to be quantified as much as possible, and otherwise they become a risk item of unclear requirements. Examples of these are:

Customer satisfaction

Company Image

Community Perception

2. Project Document Updates As mentioned earlier, the project management team does not always have answers to all planning questions. Facts come up during different times during the project life cycle. This entails changing the project related documents as and when new facts come up. Changes also come due handling authorized change requests. Examples of the documents that will be changed in this process are:

Stakeholder register

Requirements documentation

Requirements traceability matrix.

4- Planning Phase


Exercise ‎4-3-Create Scope Statement

Exercise 4.3 – Create Scope Statement Based on the supplied case study, create the Project Scope Statement that will highlight the minimum project information. Consider this as the business case used in your organization. Include the following information:

1. Project Name 2. Project Manager 3. Business Needs (project justification) 4. Summary of Product Description 5. Deliverables 6. Objectives (cost, schedule, quality measures, other) 7. Project Constraints 8. Project Risks (high level)


Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

4- Planning Phase


Exercise ‎4-4-Create Project Assumptions

Exercise 4.4 – Create Project Assumptions Based on the supplied case study and the developed scope statement, create the Project Assumptions List. Include the following information:

1. Area: the area of the assumption, can be technical, financial, business etc.

2. The Assumption that you see true or false and that will be verified later on.


Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

4- Planning Phase


4.4 Create WBS

Create WBS is the process of subdividing project deliverables and project work into smaller, more manageable components. It is 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. Each descending level of the WBS represents an increasingly detailed definition of the project work. The WBS organizes and defines the total scope of the project and represents the work specified in the current approved project scope statement. The planned work is contained within the lowest level WBS components, which are called work packages. A work package can be scheduled, cost estimated, monitored and controlled. In the context of the WBS, work refers to work products or deliverables that are the result of effort and not to the effort itself.

Figure ‎4-5- Create WBS Process


1.Project scope

statement

2.Requirements

documentation

3.Organizational

process assets

Inputs

1. Decomposition

Tools &

Techniques

1.WBS

2.WBS dictionary

3.Scope baseline

4.Project

document

updates

Outputs

Definition Create WBS is the process of subdividing project deliverables and project work into smaller.


4- Planning Phase


Example of a WBS 1. Hardware

1.1 Servers 1.1.1 Head Office Server 1.1.2 Branch Server 1.2 Network 1.2.1 Switches 1.2.2 Routers

1.2.2.1 Head Office Router 1.2.2.1 Branch Router

2. Software 2.1 Application 2.1.1 Portfolio Management 2.1.2 Real Estate Management 2.1.3 Asset Management 2.2 Licenses

2.2.1 Windows Server 2.2.2 SharePoint Portal 3.2.3 Office 2003.

3. Training 3.1 Windows Training

3.1.1 Windows Server Admin 3.1.2 Office Training

3.2 Application Training 3.2.1 DB Admin 3.2.2 Application Admin

Why WBS is so Important It is the base of all other planning activities. The following diagram shows that the activity list, resources, duration, dependencies, cost and schedule are all dependants on the WBS.

Figure ‎4-6- Example of WBS

4- Planning Phase


4.4.1 Inputs to Create WBS

1- Project scope statement 2- Requirements documentation 3- Organizational process assets

4.4.2 Tools and Techniques for Create WBS

1- Decomposition

1. Decomposition It is the subdivision of project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level. Decomposition of the total project work into work packages generally involves the following activities:

identifying and analyzing the deliverables and related work

Structuring and organized the WBS

Decomposing the upper WBS levels into lower level detailed components

Developing and assigning identification codes to the WBS components

Verifying that the degree of decomposition of the work is necessary and sufficient.

Reaching to the lowest level of decomposition “Work Package”

4.4.3 Outputs of Create WBS

1- Work Breakdown Structure (WBS) 2- WBS dictionary 3- Scope baseline 4- Project document updates

1. Work Breakdown Structure (WBS) The WBS is 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. Each descending level of the WBS represents an increasingly detailed definition of the project work. The WBS is finalized by establishing control accounts for the work packages and a unique identifies from a code of accounts. A control account is a management control point where scope, cost, and schedule are integrated and compared to the earned value for performance measurement.

Work Package: It is the smallest level of the WBS breakdown. It is the result of breaking down the deliverables to the smallest necessary (i.e. not too much of unnecessary breakdown) and sufficient (not very little of break down) level

4- Planning Phase


2. WBS dictionary The WBS dictionary provides more detailed descriptions of the components in the WBS including work packages and control accounts. It may contain the following information:

code of account identifies

Description of work

Responsible organization

List of schedule milestones

Associated schedule activities

Resources required

Cost estimates

Quality requirements

Acceptance criteria

Technical references

Contract information

3. Scope baseline The scope baseline is a component of the project management plan. The components of the scope baseline include:

Project scope statement

WBS

WBS dictionary

4. Project document updates Project documents that may be updated include:

Requirements documentation

Change requests results from the create WBS process

Other Breakdown Structures The WBS should not be confused with other kinds of breakdown structures, like:

Organizational Breakdown Structure (OBS)

Bill of Materials (BOM)

Risk Breakdown Structure (RBS)

Resource Breakdown Structure (RBS).

4- Planning Phase


Exercise ‎4-5- Create WBS

Exercise 4.5 – Create WBS Based on the supplied case study, create the Project Work Breakdown Structure. Note: Use form 9.4 in Appendix 2

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

4- Planning Phase


4.5 Define Activities

Activities vs. WBS

Both use decomposition tool

The decomposition in the “Define Activities” process breaks down the work packages into activities. The result is activity “verb” oriented

The decomposition in the “Create WBS” process breaks down the deliverables into work pancakes. The result is deliverable “noun” oriented

Figure ‎4-7- Define Activities Process


1.Scope baseline

2.Enterprise

environmental

factors

3.Organizational

process assets

Inputs

1.Decomposition

2.Rolling wave

planning

3.Templates

4.Expert judgment

Tools &

Techniques

1.Activity list

2.Activity

attributes

3.Milestone list

Outputs

Definition Define Activities is the process of identifying the specific actions to be performed to produce the project deliverables.


4- Planning Phase


Process Interaction

5.3 Create WBS


Ø Organizational

process assets

Ø Enterprise

environmental

factors

Ø Scope baseline

6.2 Sequence

Activities

6.3 Estimate

Activity

Resources

6.4 Estimate

Activity

Durations

6.5 Develop

Schedule

Ø Milestone List

Involved Documents (IN)

ØScope baseline

ØEnterprise environmental

factors

ØOrganizational process assets

Involved Documents (OUT)

ØActivity list

ØActivity attributes

ØMilestone list

Ø Activity List

Ø Activity attributes

Enterprise/

Organization

Source: PMBOK® Guide – Fourth Edition

Diagram Developed by Techno Management

Ø

Figure ‎4-8- Define Activities – Process Interaction

4.5.1 Inputs to Define Activities

1. Scope baseline 2. Enterprise environmental factors 3. Organizational process assets: 4. Existing formal and informal activity planning-related policies,

procedures and guidelines.

4.5.2 Tools and Techniques for Define Activities

1. Decomposition 2. Rolling wave planning 3. Templates 4. Expert judgment

1. Decomposition The technique of decomposition as applied to defining activates, involves subdividing the project work packages into smaller, more manageable components called activities. Activities represent the effort needed to complete a work package. The Define Activities process defines the final outputs as activities rather than deliverables as in the work packages.

4- Planning Phase


2. Rolling wave planning It is a form of progressive elaboration planning where the work to be accomplished in the near term is planned in detail and future work is planned at a higher level of the WBS. Therefore, work can exist at various levels of detail depending on where it is in the project life cycle. 3. Templates Experience from previous projects can be used as templates to be used in similar projects. 4. Expert judgment Generally speaking, the project manager is not supposed to acquire the skills and knowledge to produce the activities of the project. He may have a limited experience in one or more domains, but he should rely on others who are experts n their domains to produce the activities of that particular domain. Even if the project manager has an experience in any of the domains, it is recommended to take the activities from the member who is in charge of this domain to grant his commitment to the activities, and later on, the schedule that he will be in charge.

4.5.3 Outputs of Define Activities

1. Activity list 2. Activity attributes 3. Milestone list

1. Activity list The activity list is a comprehensive list including all schedule activities required on the project. The activity list includes the activity identifier and a scope of work description for each activity in sufficient detail to ensure that project team members understand what work is required to be completed

2. Activity attributes This is an explanation of the activity that adds more information to help further activity planning. This information will help in assigning the resources, identify the dependencies, etc. it may include the following information.

Responsibility (who will do the work)

Geographic Area (where the work will be performed)

Activity Type (summary or detailed)

WBS Classification (for ordering and

The Activity List Must include all

activities in the project

Should be organized as an extension to WBS to help ensure that it is complete.

Should include descriptions of each activity.

4- Planning Phase


sorting)

3. Milestone list A milestone is a significant point or event in the project. A milestone list identifies all milestones and indicates whether the milestone is mandatory, such as those required by contract, or optional such as those based upon historical information.

4- Planning Phase


Group Discussion ‎4-3-Creating Activities

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Group Discussion 4.3– Creating Activities Do you have a standard process or templates you use in your organization that helps you to create project activities? What are the challenges you and your organization have in this regard?

4- Planning Phase


Exercise ‎4-6-Create Activity List

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 4.6 – Create Activity List Based on the supplied case study and the produced WBS, create the detailed activity list for only one work package. You may consider the following WBS: 1 Hardware

1.1 Servers 1.1.1 Head Office Serve 1.1.2 Branch Server

1.2 Network 1.2.1 Switches 1.2.2 Routers

1.2.2.1 Head Office Router 1.2.2.1 Branch Router

2 Software 2.1 Application

2.1.1 Portfolio Management 2.1.2 Real Estate Management 2.1.3 Asset Management

2.2 Licenses 2.2.1 Windows Server 2.2.2 SharePoint Portal 3.2.3 Office 2003.

3 Training 3.1 Windows Training

3.1.1 Windows Server Admin 3.1.2 Office Training

3.2 Application Training 3.2.1 DB Admin 3.2.2 Application Admin


4- Planning Phase


4.6 Sequence Activities

Figure ‎4-9 - Sequence Activities Process


1.Activity list

2.Activity

attributes

3.Milestone list

4.Project scope

statement

5.Organizational

process assets

Inputs

1.Precedence

diagramming

method (PDM)

2.Dependency

determination

3.Applying leads

and lags

4.Schedule

network

templates

Tools &

Techniques

1.Project

schedule

network

diagrams

2.Project

document

updates

Outputs

Definition Sequence Activities is the process of identifying and documenting relationships among the project activities.


4- Planning Phase


Process Interaction

6.2 Sequence

Activities

5.2 Define ScopeEnterprise /

Organization


`Project

Documents

6.5 Develop

Schedule

Ø Organizational

process assets

Ø Project Scope

Statement

Ø Project

Documents

Updates

Ø Project schedule

network diagrams

Ø Activity list


Ø Milestone list


ØActivity list


ØMilestone list

ØProject scope statement



ØProject schedule network

diagrams

ØProject document updates



Ø

Figure ‎4-10- Sequence Activities – Process Interaction

4.6.1 Inputs of Sequence Activities

1- Activity list 2- Activity attributes 3- Milestone list 4- Project scope statement 5- Organizational process assets

4.6.2 Tools and Techniques for Sequence Activities

1- Precedence diagramming method (PDM) 2- Dependency determination 3- Applying leads and lags 4- Schedule network templates

1. Precedence diagramming method (PDM) PDM is a method used in Critical Path Methodology (CPM) for constructing a project schedule network diagram. It uses boxes or rectangles referred to as nodes, to represent activities, and connect them with arrows that show the logical relationships that exist between them. This technique is called Activity-On-Node (AON) and is the method used by most project management software packages.

4- Planning Phase


Figure ‎4-11- Precedence Diagram (Activity on the node)

Activity on the Arrow (AOA) – An old Technique This is an old technique which shows the activities on the arrows and the relationships between the activities are made by joints (circles) connecting the arrows. This model shows only Finish to Start relationship. In the below diagram, in order to make a dependency between task B and C, a dummy activities (new arrow) is created.

Figure ‎4-12- Activity on the arrow

Task Dependencies Relationships between tasks are determined by the dependencies that link these tasks together. There are mainly four types of tasks, they are:

1- Finish-to-start (FS) 2- Finish-to-finish (FF) 3- Start-to-Start (SS) 4- Start-to-finish (SF)

A

Start

DC

B

Finish

E

D

C

Dummy

Activity

B

A

StartEnd

4- Planning Phase


Figure ‎4-13- Task Dependencies

2. Dependency determination

Three types of dependencies are used to define the sequence among the activities:

Mandatory dependencies: Also known as hard logic. It is applied when one dependency type must be used. For example, we have to use a finish to start relationship between task1 (building floor 1) and task 2 (building floor 3). This dependency, once identified cannot be changed.

Discretionary dependencies: Also known as soft logic or preferred logic. It is applied when the project team have the option of applying more than dependency on two tasks, then they prefer to use on the over and keep the right to change it as necessary.

External dependencies: Tasks dependant on other tasks that are performed by external parties are highlighted as External dependencies to give it more wait to be monitored and controlled to avoid problems.

Type of interdependency or

Precedence Relationship

Description

Finish to start (FS)

The finish of Task1 drives the start of Task2

Start to Start (SS)

The start of Task1 drives the start of Task2

Finish to Finish (FF)

The finish of Task1 drives the finish of Task2

Start to Finish (SF)

The start of Task1 drives the finish of Task2

1

2

1

2

1

2

1

2

4- Planning Phase


Group Discussion ‎4-4-Creating Activities

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Group Discussion 4.4– Dependencies What is the usefulness of identifying dependencies as mandatory or

discretionary?

4- Planning Phase


3. Applying leads and lags A lead allows an acceleration of the successor activity, while a lag directs a delay in the successor activity

Lag Time is a delay between a task and its predecessor. It is usually expressed using a specific amount of time.

Figure ‎4-14- Lag Time

Lead Time is an overlap between a task and its predecessor. In project management software, lead time may be expressed as a negative number in the lag field.

Figure ‎4-15- Lead Time

4.6.3 Outputs of Sequence Activities

1- Project schedule network diagrams 2- Project document updates:

Activity lists,

Activity attributes, and

Risk register

1 22 Days

1

2

2 Days

4- Planning Phase


4.7 Estimate Activity Resources

Figure ‎4-16- Estimate Activity Resources Process


1.Activity list

2.Activity

attributes

3.Resource

calendars

4.Enterprise

environmental

factors

5.Organizational

process assets

Inputs

1.Expert judgment

2.Alternatives

analysis

3.Published

estimating data

4.Bottom-up

estimating

5.Project

management

software

Tools &

Techniques

1.Activity

resource

requirements

2.Resource

breakdown

structure

3.Project

document

updates

Outputs

Definition Estimate Activity Resources is the process of estimating the type and quantities of material, people, equipment or supplies required to perform each activity.


4- Planning Phase


Process Interaction

9.2 Acquire

Project Team

12.2 Conduct

ProcurementsEnterprise /

Organization

6.3 Estimate

Activity Resources

12.1 Plan

Procurements

9.1 Develop

Human Resource

Plan

`Project

Documents

Ø Organizational

process assets

Ø Enterprise

environmental

factors

Ø Activity list


6.1 Define

Activities


ØActivity list


ØResource calendars


factors



ØActivity resource requirements

ØResource breakdown structure

ØProject document updates6.4 Estimate

Activity Durations

6.5 Develop

Schedule

Ø Resource

breakdown

structure

Ø Project

Documents

Updates

Ø Activity resource

requirements

Ø Resource

Calendars



Ø

Figure ‎4-17- Estimate Activity Resources – Process Interaction

4.7.1 Inputs to Estimate Activity Resources

1- Activity list 2- Activity attributes 3- Resource calendars 4- Enterprise environmental factors 5- Organizational process assets

1. Activity list

This is the output on the Define Activities process.

2. Activity attributes Activity attributes plays a role in defining the required resources. Based on the type and nature of the task, team members may decide to perform it with certain recourses that may have specific skills or does not conflict with another type of activities he is also involved in within the same project or others.

3. Resource calendars The resource calendar determines the resources that will be assigned, based on their availability. Each resource will have a resource calendar that shows their assignments and availability.

4- Planning Phase


4. Enterprise environmental factors This is all the enterprise environmental factors that have an impact on deciding the required resources. This includes, but not limited to:

Resource availability Resources skills Multi-culture structure

5. Organizational process assets This is all the organizational process assets that have an impact on deciding the required resources. This includes, but not limited to:

Staffing policy and procedures Procurement policy and procedures Outsourcing policy and procedures Job market conditions

4.7.2 Tools and Techniques for Estimate Activity Resources

1- Expert judgment 2- Alternatives analysis 3- Published estimating data 4- Bottom-up estimating 5- Project management software

1. Expert judgment All inputs related to the resource need to be assessed by an expert to decide on the way how the resources are identified and assigned. Experts can be team members, other team members within the organization or external consultants. 2. Alternatives analysis Analyzing the tasks and which resources and skills can be applied may result in options to the project team that they find useful in terms of schedule and budget optimization.

3. Published estimating data Some companies rely on published resources estimates that are either done internally or purchased from third parties.

4. Bottom-up estimating In case if the resource requirements to a certain activity could not be estimated to an acceptance level of confidence, this activity is decomposed (broken down) into further small activities that can be easily analyzed and identify their resource requirements. Once this is doe, the resource requirements are aggregated upward.

5. Project management software

4- Planning Phase


Many project management software provide the automation of planning, organizing and optimizing resources. Some also allow creating resources pools that can be managed across the organization.

4.7.3 Outputs of Estimate Activity Resources

1. Activity resource requirements It identifies the types and quantities of resources required for each activity in a work package. These requirements can then be aggregated to determine the estimated resources for each work package. The amount of detail and the level of specificity of the resource requirements descriptions can vary by application area. The resource requirements documentation for each activity can include the basis of estimate for each resource, as well as the assumption that were made in determining which types of resources are applied, their availability and what quantities are used.

2. Resource breakdown structure The Resource Breakdown Structure is a hierarchical structure of the identified resources by resource category and resource type. Resource categories include labor, material, equipment, and supplies. Resource types can include the skill level, grade level or other information as appropriate to the project. The resource breakdown structure is useful for organizing and reporting project schedule data with resource utilization information.

3. Project document updates

Activity list

Activity attributes

Resource calendars

4- Planning Phase


Exercise ‎4-7-Resource Assignment

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 4.7 – Resource Assignment Based on the supplied case study and the produced activity list, identify the required resources for each task. Note: Use form 9.5 in Appendix 2

4- Planning Phase


4.8 Estimate Activity Durations

Figure ‎4-18- Estimate Activity Durations Process


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

Inputs

1.Expert judgment

2.Analogous

estimating

3.Parametric

estimating

4.Three-point

estimates

5.Reserve

analysis

Tools &

Techniques

1.Activity duration

estimates

2.Project

document

updates

Outputs

Definition Estimate Activity Durations is the process of approximating the number of work periods needed to complete individual activities with estimated resources.


4- Planning Phase


Process Interaction

5.2 Define Scope9.2 Acquire

Project Team

Enterprise /

Organization

6.4 Estimate

Activity Durations

11.2 Identify Risks`

Project

Documents

Ø Resource

Calendars

Ø Organizational

process assets

Ø Enterprise

environmental

factors

Ø Project

Document

s Updates

6.1 Define

Activities

6.3 Estimate

Activity Resources

6.5 Develop

Schedule



ØActivity list





factors



ØActivity duration estimates


12.2 Conduct

Procurements

Ø Activity duration

estimates

Ø Project scope statement

Ø Activity

resource

requirements

Ø Activity list

Ø Activity

attributesSource: PMBOK® Guide – Fourth Edition


Ø

Figure ‎4-19- Estimate Activity Duration – Process Interaction

Activity Duration compared to Effort

Elapsed time: The time that shows on the calendar. Includes the holidays and weekends.

Duration: The number of working days. It does not include holidays or week ends

Working time (Effort): The actual aggregated time, It adds the working time of all the involved resource.

4.8.1 Inputs to Estimate Activity Durations

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

4.8.2 Tools and Techniques for Estimate Activity Durations

1. Expert judgment 2. Analogous estimating 3. Parametric estimating 4. Three-point estimates 5. Reserve analysis

1. Expert judgment

4- Planning Phase


All inputs related to the resource need to be assessed by an expert to decide on the way how the resources are identified and assigned. Experts can be team members, other team members within the organization or external consultants.

2. Analogous estimating Actual duration of a previous, similar activity is basis for estimating the future activity. It is a form of Expert Judgment. It is most reliable when:

Activities are really similar.

Individuals preparing the estimates have needed expertise

3. Parametric estimating Parametric estimating uses a statistical relationship between historical data and other variables to calculate an estimate for activity parameters, such as cost, budget and duration. Activity durations can be quantitatively determined by multiplying the quantity of work to be performed by labor hours per unit of work. This technique can produce higher levels of accuracy depending upon the sophistication and underlying data built into the model.

4. Three-point estimates This concept originated with the Program Evaluation and Review Technique (PERT), PERT uses three estimates to define an approximate range for an activity’s duration:

Most likely

Optimistic

Pessimistic PERT analysis calculated an Expected activity duration using a weighted average of these three estimates. It uses the following formulas: Estimated Time:

Standard Deviation:

4- Planning Phase


Final Time Estimate:

Where: tE = Expected time tO = Optimistic time tM = Most likely time tP = Pessimistic Time SD = Standard Deviation

Determine Probability of Achievement Estimated time = tE + 1 x SD with 68% confidence Estimated time = tE + 2 x SD with 95% confidence Estimated time = tE + 3 x SD with 99% confidence

5. Reserve analysis It is also called time buffer, reserve, or contingency. It is Added by project team to an activity as a recognition of project risk. It can be either a percent of estimated duration, or fixed duration. It should be documented in order to facilitate future reference.

4.8.3 Outputs of Estimate Activity Durations

1- Activity duration estimates 2- Project document updates

4- Planning Phase


Exercise ‎4-8-Task Duration Estimate

Exercise 4.8 – Task Duration Estimate The following information and questions 1 through 4 refer to below network diagram and table

B

I

HEC

A

GFD

Activity Optimistic Pessimistic Most Likely

A 1 1 1

B 2 3 3

C 10 13 12

D 5 15 5

E 3 6 4

F 1 1 1

G 5 8 6

H 9 13 10

I 5 5 5

1. What is the expected value of the number of days to complete the project?

2. What is the expected value of the duration for activity B?

3. What is the standard deviation for the duration of activity B?

4. It is desirable to make an estimate that has a greater than 95%

chance of being correct. Which of the following ranges of time for the completion of the project best describes this probability of being correct?

4- Planning Phase


4.9 Develop Schedule

Figure ‎4-20- 6.5 Develop Schedule Process


1. Activity list

2. Activity attributes

3. Project schedule

network diagrams

4. Activity resource requirements

5. Resource calendars

6. Activity duration

estimates

7. Project scope statement

8. Enterprise envi.

factors

9. Organizational

process assets

Inputs

1.Schedule

network analysis

2.Critical path

method

3.Critical chain

method

4.Resource

leveling

5.What-if analysis

6.Applying leads

and lags

7.Schedule

compression

8.Scheduling tool

Tools &

Techniques

1.Project

schedule

2.Schedule

baseline

3.Schedule data

4.Project

Document

Updates

Outputs

Definition Develop Schedule is the process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.


4- Planning Phase


Process Interaction

4.2 Develop

Project

Management Plan

6.5 Develop

Schedule

Enterprise /

Organization

6.1 Define

Activities

`Project

Documents

7.1 Estimate

Costs

7.2 Determine

Budget

6.2 Sequence

Activities

8.1 Plan Quality

Ø Organizational

process assets

Ø Enterprise

environmental

factors

Ø Project Documents Updates

Ø Project schedule

network diagrams

Ø Activity list



ØActivity list


ØProject schedule network

diagrams


ØActivity duration estimates



ØEnterprise environmental factors



ØProject schedule

ØSchedule baseline

ØSchedule data

ØProject documents updates

12.1 Plan

Procurements

5.2 Define Scope 9.2 Acquire

Project Team

12.2 Conduct

Procurements

6.3 Estimate

Activity

Resources

6.4 Estimate

Activity Duration

6.6 Control

Schedule

Ø Project Scope Statement

Ø Project

ScheduleØ Activity duration

estimates

Ø Activity resource

requirements

Ø Schedule data

Ø Resource Calendars

Ø Schedule baseline



Ø

Figure ‎4-21- Develop Schedule – Process Interaction

Schedule Constraints Two categories of constraints are directly related to scheduled development: Imposed Dates, they are:

Key Events Major Milestones

Example of Constraints:

Constraint Type Description

Start No Later Than The task must start before or on that date.

Start No Earlier Than The task may not start before this date.

Finish No Later Than The task must be completed by that date.

Finish No Earlier Than The task may not be completed before this date.

4.9.1 Inputs to Develop Schedule

1. Activity list 2. Activity attributes 3. Project schedule network diagrams

4- Planning Phase


4. Activity resource requirements 5. Resource calendars 6. Activity duration estimates 7. Project scope statement 8. Enterprise environmental factors 9. Organizational process assets Project Calendars Project and resource calendars identify when work is allowed. They affect all resources. Resource calendars affect only that resource or group of resources.

4.9.2 Tools and Techniques for Develop Schedule

1. Schedule network analysis 2. Critical path method 3. Critical chain method 4. Resource leveling 5. What-if analysis 6. Applying leads and lags 7. Schedule compression 8. Scheduling tool

1. Schedule network analysis Schedule network analysis is a technique that generates the project schedule. It employs various analytical techniques, such as:

Critical path method

Critical chain method

What-if analysis

Resource leveling

2. Critical path method The critical path method calculates the theoretical early start and finish dates and late start and finish dates without regard for any resource limitations. This is done by performing a forward and backward pass analysis through the schedule network. The resulting early and late start and finish dates are not necessarily the project schedule; rather they indicate the time periods within which the activity could be scheduled. Float

Total Float: is the amount of time that an activity may be delayed from its early start without delaying the project finish date.

4- Planning Phase


Free Float: is the amount of time that an activity can be delayed without delaying the early start of any immediately following activities.

Calculating Path and Float Forward Pass:

Early Start (ES) = Total of task durations for all precedent (necessary) tasks

Early Finish (EF) = ES + Task Duration Backward Pass:

Late Finish (LF) = Last day of project – Duration of sequential (necessary) tasks to end of project

Late Start (LS) = LF – Task Duration Float = LF – ES – Task Duration

Task Coding Convention

Early Start = ES Early Finish = EF Late Start = LS Late Finish = LF Duration = DU

Process

a. Construct the Network Diagram b. Apply the Task Duration c. Calculate the Forward Pass d. Calculate the Backward Pass e. Calculate Floats

a. Construct the Network Diagram

EF

LS LF

ES

DU

4- Planning Phase


b. Apply the Task Duration

c. Calculate the Forward Pass

d. Calculate the Backward Pass

58

CB

A

FE

D

G

59

C1

B3

A1

F6

E6

D3

G2

60

C

54

1

B

41

3

A

10

1

F

137

6

E

71

6

D

107

3

G

1513

2

4- Planning Phase


61

C

5

9 10

4

1

B

4

6 9

1

3

A

1

0 1

0

1

F

13

7 13

7

6

E

7

1 7

1

6

D

10

10 13

7

3

G

15

13 15

13

2

4- Planning Phase


e. Calculate Floats

3. Critical chain method The critical path methods calculates the theoretical early start and finish dates, and late start and finish dates without regard for any resource limitations. This is done by performing a forward and backward pass analysis through the schedule network. The resulting early and late start and finish dates are not necessarily the project schedule; rather they indicate the time periods within which the activity could be scheduled.

4. Resource leveling Resource leveling is necessary when resources are over-allocated such as when the resource is:

Assigned to two or more activities during the same time period Shared or critical required resources are only available at certain

times Only available in limited quantities.

Resource leveling can often cause the original critical path to change. It mostly results in extended schedule

Figure ‎4-22- Resource Leveling

63

C

5

9 10

4

1

B

4

6 9

1

3

A

1

0 1

0

1

F

13

7 13

7

6

E

7

1 7

1

6

D

10

10 13

7

3

G

15

13 15

13

2

TF=5

FF=0

TF=0

FF=0

TF=0

FF=0

TF=0

FF=0

TF=5

FF=2TF=3

FF=3

TF=0

FF=0

65

2

2

3 Days

2

2

4 Days

Before After

4- Planning Phase


5. What-if analysis This is based on the calculation of multiple project durations with different sets of activity assumptions. “What-if analysis” using the logic in the network diagram. A well known technique of “What if analysis” is called Monte Carlo Analysis, it is: The most common technique. Distribution of probable results is defined for each activity, and then

used to determine the distribution of probable results for the total project.

Also used in Project Risk Management

6. Applying leads and lags A lead allows an acceleration of the successor activity, while a lag directs a delay in the successor activity

7. Schedule compression The two main techniques that are used to compress schedules are:

a- Fast tracking: A schedule compression technique in which phases or activities normally performed in sequence are performed in parallel. b- Crashing: It is a schedule compression technique in which cost and schedule tradeoffs are analyzed to determine how to obtain the greatest amount of compression for the least incremental cost.

8. Scheduling tool

MS Project

Primavera

4.9.3 Outputs of Develop Schedule

1. Project schedule: Milestones charts Bar charts Project schedule network diagrams

2. Schedule baseline 3. Schedule data 4. Project document updates:

Activity resource requirements Activity attributes Calendar Risk register

4- Planning Phase


Exercise ‎4-9- Develop Schedule

Exercise 4.9 – Develop Schedule The following information and questions 1 through 9 refer to below network diagram Assume that the work is on a single shift basis and will seven days per week until the job is done. The project is to begin on May 1.

B

HE

C

A

FD

G

3

FS-2

1

3 4

5

42

7

1. What day in May will activity D have for its early finish date? 2. What is the free float for activity F? 3. What is the free float for activity D? 4. What is the critical path of the project? 5. What is the late start for activity F? 6. How long is the project in days? 7. What is the early start for activity F? 8. If there is a delay in activity F of six days, what is the effect on the

project completion date? 9. What is the early finish date of activity A?

4- Planning Phase


4.10 Estimate Costs

Figure ‎4-23- Estimate Costs Process


1.Scope baseline

2.Project

schedule

3.Human

resource plan

4.Risk register

5.Enterprise

environmental

factors

6.Organizational

process assets

Inputs

1. Expert judgment

2. Analogous

estimating

3. Parametric

estimating 4. Bottom-up

estimating

5. Three-point

estimates

6. Reserve analysis 7. Cost of quality

8. PM Estimating

software

9. Vendor bid

analysis

Tools &

Techniques

1.Activity cost

estimates

2.Basis of

estimates

3.Project

document

updates

Outputs

Definition Cost Estimating is the determination of approximately how much will it cost the performing organization to provide the product or service involved.


4- Planning Phase


Process Interaction

Figure ‎4-24- Estimate Costs – Process Interaction

Life Cycle Costing vs. Value Engineering Project cost can be seen from different perspectives, and important perspective is the cost of the project during its whole life cycle. The process of evaluating the project cost over its life cycle is called Life Cycle Costing process. Life-Cycle Costing (LCC) is the total cost to the organization for the ownership and acquisition of the product over its full life cycle.

LCC = R&D costs + production cost + construction cost + operation and maintenance cost + product retirement and phase-out cost.

Value Engineering (VE) is a creative approach used to optimize life-cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more effectively.

Cost Estimate as an Iterative Process Cost estimate is refined during the course of the project. Cost Estimate increase as the project progresses over time. This is part of the progressive elaboration concept. Types of Estimates and Degree of Accuracy

4- Planning Phase


Depending on the project phase, different levels of estimates with different levels f accuracy are applied. Below are examples of these levels.

Table ‎4-1 - Estimate Accuracy

4.10.1 Inputs to Estimate Costs

1. Scope baseline 2. Project schedule 3. Human resource plan 4. Risk register 5. Enterprise environmental factors 6. Organizational process assets

4.10.2 Tools and Techniques for Define Activities

1. Expert judgment 2. Analogous estimating 3. Parametric estimating 4. Bottom-up estimating 5. Three-point estimates 6. Reserve analysis 7. Cost of quality 8. PM Estimating software 9. Vendor bid analysis

5. Analogous Estimating It is based on using the actual cost of previous and similar projects as the basis for estimating the cost of the current project. This technique is frequently used to estimate costs when there is a limited amount of detailed information about the project. It relies heavily on expert judgment and it is generally less costly and less accurate than other techniques. 6. Parametric Estimating

Type Accuracy Project Phase

Rough Order of Magnitude (ROM))

or

Ball Park

50% Initiation

Budget Estimate 10% Early Planning

Definitive Estimate 5% Late Planning &

Execution

4- Planning Phase


This technique uses a statistical relationship between historical data and other variables. It can produce higher levels of accuracy depending upon the sophistication. It also involves multiplying the planned quantity of work to be performed by the historical cost per unit to obtain the estimated cost. 7. Bottom-up Estimating It involves estimating the cost of individual work packages or individual schedule activities. This detailed cost is then rolled up to higher levels for reporting and tracking purposes. The cost and accuracy of bottom-up cost estimating is typically motivated by the size and complexity of the individual schedule activity or work package. Generally, activities with smaller effort increase the accuracy of the schedule activity cost estimates.

4- Planning Phase


8. Three-Point Estimates It is also called “Probabilistic Estimate” or “Weighted Average”. This concept originated with the Program Evaluation and Review Technique (PERT). PERT uses three estimates to define an approximate range for an activity’s duration:

o Most likely o Optimistic o Pessimistic

PERT analysis calculates an Expected activity duration using a weighted average of these three estimates. It uses the following formulas:

Estimated Cost:

Standard Deviation:

Final Cost Estimate:

Where: cE = Expected Cost cO = Optimistic Cost cM = Most likely Cost cP = Pessimistic Cost SD = Standard Deviation

Determine Probability of Achievement Estimated cost = cE + 1 x SD with 68% confidence Estimated cost = cE + 2 x SD with 95% confidence Estimated cost = cE + 3 x SD with 99% confidence

4- Planning Phase


4.10.3 Outputs of Estimate Costs

1. Activity cost estimates 2. Basis of estimates 3. Project document updates

1. Activity Cost Estimates A quantitative assessment of the likely costs of the resources required to complete schedule activities. This type of estimate can be presented in summary form or in detail. Costs are estimated for all resources that are applied to the activity cost estimate. This includes, but is not limited to:

Labor

Materials

Equipment

Services

Facilities

Information technology

Special categories such as an inflation allowance or cost contingency reserve.

2. Basis of estimates It is mandatory for the project manager to keep records for the supporting documents that proves the information on which he based his estimates on. These supporting documents include, but not limited to:

Documentation of the basis of the estimate (i.e. how it was developed)

Documentation of all assumptions made

Documentation of any known constraints

Indication of the range of possible estimates (e.g. $10,000(+10%) to indicate that the item is expected to cost between a range of values)

Indication of the confidence level of the final estimate. 3. Project Document Updates Depending on which phase the project is in, all project documents related to the cost estimates are subject to be updated based on the estimates and its type.

4- Planning Phase


4.11 Determine Budget

Figure ‎4-25 - Determine Budget Process


1.Activity cost

estimates

2.Basis of

estimates

3.Scope baseline

4.Project

schedule

5.Resource

calendars

6.Contracts

7.Organizational

process assets

Inputs

1.Cost

aggregation

2.Reserve

analysis

3.Expert judgment

4.Historical

relationships

5.Funding limit

reconciliation

Tools &

Techniques

1.Cost

performance

baseline

2.Project funding

requirements

3.Project

document

updates

Outputs

Definition Determine Budget is the process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.


4- Planning Phase


Process Interaction

Figure ‎4-26- Determine Budget – Process Interaction

4.11.1 Inputs of Determine Budget

1- Activity cost estimates 2- Basis of estimates 3- Scope baseline 4- Project schedule 5- Resource calendars 6- Contracts 7- Organizational process assets

4.11.2 Tools and Techniques for Determine Budget

1- Cost aggregation 2- Reserve analysis 3- Expert judgment 4- Historical relationships 5- Funding limit reconciliation

1. Cost aggregation

4- Planning Phase


Schedule activity cost estimates are aggregated by work packages in accordance with the WBS. The work package cost estimates are then aggregated for the higher component levels of the WBS, such as control accounts, and ultimately for the entire project. 2. Reserve analysis Budget reserve analysis can establish both the contingency reserves and the management reserves for the project. Contingency reserves are allowances for unplanned but potentially required changes that can result from realized risks identified in the risk register. Management reserves are budgets reserved for unplanned changes to project scope and cost. Management reserves are not a part of the project cost baseline, but may be included in the total budget for the project. They are not included as a part of the earned value measurement calculations. 3. Expert Judgment Expert judgment is based on any of the following:

Other units within the performing organization

Consultants

Stakeholders, including customers

Professional and technical associations, and

Industry groups 4. Historical Relationships Any historical relationship that results in parametric or analogous estimates that will help in develop a mathematical model to predict the total project cost The model will be accurate when:

The historical information used to develop the model is accurate

The parameters used in the model are readily quantifiable

The model is scalable, such that it works for a large project as well as a small one.

5. Funding Limit Reconciliation The expenditure of funds is reconciled with the funding limits set by the customer. Reconciliation will necessitate the scheduling of work to be adjusted to smooth or regulate those expenditures. Rescheduling can impact the allocation of resources. The final product of these planning iterations is a cost baseline

4.11.3 Outputs of Determine Budget

1- Cost performance baseline 2- Project funding requirements 3- Project document updates

4- Planning Phase


1. Cost Performance Baseline A time-phased budget that is used as a basis against which to measure, monitor, and control overall cost performance on the project. It is developed by summing estimated costs by period and is usually displayed in the form of an S-curve. The cost baseline is a component of the project management plan. Many projects, especially large ones, have multiple cost or resource baselines. For example, management may require that the project manager track internal costs (labor) separately from external costs (contractors and construction materials) or total labor hours.

2. Project Funding Requirements Funding requirements, total and periodic (e.g., annual or quarterly), are derived from the cost baseline. They can be established to exceed, usually by a margin, to allow for either early progress or cost overruns. Funding usually occurs in incremental amounts that are not continuous The total funds required are those included in the cost baseline plus the management contingency reserve amount.

Figure ‎4-27- Project Funding Requirements

3. Project Document Updates All related cost documents such as:

Risk register

Cost estimates

Project Schedule

Cum

ula

tive V

alu

es

Time

Funding Requirements

Expenditures

Cost Baseline

4- Planning Phase


4.12 Plan Quality

Figure ‎4-28- Plan Quality Process


1.Scope baseline

2.Stakeholder

register

3.Cost

performance

baseline

4.Schedule

baseline

5.Risk register

6.Enterprise

environmental

factors

7.Organizational

process assets

Inputs

1. Cost-benefit

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

Tools & Techniques

1.Quality

management

plan

2.Quality metrics

3.Quality

checklists

4.Process

improvement

plan

5.Project

document

updates

Outputs

Definition Plan Quality is the process of identifying quality requirements and/or standards for the project and product and documenting how the project will demonstrate compliance.


4- Planning Phase


Process Interaction

8.1 Plan Quality

5.3 Create WBS10.1 Identify

stakeholders

8.3 Perform Quality

Control

`Project

Documents

8.2 Perform Quality

Assurance

Ø Stakeholder registerØ Scope

baseline

Ø Project

Documents

Updates

Ø Quality

management plan


ØScope baseline

ØStakeholder register

ØCost performance baseline

ØSchedule baseline

ØRisk register


factors



ØQuality metrics

ØQuality checklists

ØQuality management plan

ØProcess improvement plan


7.2 Determine

budget

6.5 Develop

Schedule

Enterprise /

Organization

Ø Cost

performance

baseline

Ø Organizational

process assets

Ø Enterprise

environmental

factors

Ø Quality

checklists

Ø Quality

metrics

11.2 Identify Risks

Ø Schedule

baselineØ Risk register

11.2 Identify Risks

4.2 Develop

Project

Management Plan

Ø Process improvement plan



Ø

Figure ‎4-29- Plan Quality – Process Interaction

4- Planning Phase


Group Discussion ‎4-5-Quality vs. Grade

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Group Discussion – Quality vs. Grade Two persons went to purchase electrical bulbs on bulk basis, a box of 100 pieces. The first one went for a high price brand, he purchased a box of 100 bulbs with 5% out of the box faulty rate. This means that there is 5 faulty bulbs may be found in each 100 bulbs. The second person went for a cheaper brand; he purchased a box of 100 bulbs with 20% faulty specifications. When the second person returned back home, he found that 19 bulbs were out of order, while the first person found only 6 bulbs were out of order. Which lot is higher quality?

a- The higher price brand b- The low price brand

4- Planning Phase


Quality vs. Grade Quality and grade are closely related terms, but it is important to understand the distinction between the two in order to understand the requirements of each for a specific project. Quality requirements and grade requirements vary from one project to another. However, low quality should always be avoided.

Quality: is the degree to which a set of inherent characteristics fulfills requirements. Grade: is a category or rank given to entities having the same functional use but different technical characteristics.

Precision vs. Accuracy

Precision: The values of repeated measurements are cluster and have little scatter Accuracy: The measurement value is very close to the true value

Quality Improvement Initiatives Over years, many initiatives were developed to help defining and managing

the project quality, examples are:

International Standard:

o ISO 9000

Proprietary Approaches:

o Deming, Juran, Crsoby and others’ recommendations

Non Proprietary Approaches:

o Total Quality Management (TQM)

o Six Sigma

o Failure mode and Effect Analysis (FMEA)

o Design Reviews

o Voice of the Customer

o Cost of Quality (COQ)

o Continuous Improvement (KAIZEN)

o Just-in-time (JIT)

Quality Management Complements Project Management Both Quality Management and Project Management aim to eh same

objective, finishing the project as per the required quality. Both concepts

agree the same basics as follows:

Customer satisfaction:

o Meeting the customer requirements, conformance to

requirements and fitness for use.

Prevention over inspection:

o Quality is planned in , not inspected in

4- Planning Phase


Continuous improvement:

o Plan, Do, Check and Act is the basis of quality improvement.

o Process improvement models include Malcolm Baldridge, OPM3

® and CMMI®

Management Responsibility:

o Management is responsible for providing the required resources

for success.

Statistical Quality Control Terms

Term A Term B

Prevention Keeping errors out of the process

Inspection Keeping errors out of the deliverable to the customer

Attribute sampling Result does or does not conform (binary, pass/fail, conformance/nonconformance) An attribute is the measurement.

Variables sampling Result is rated on a continuous scale measuring the degree of conformity A variable is the characteristic.

Special causes Unusual events

Random causes Normal process variation

Tolerances Result is acceptable within a specified range

Control limits Process is in control if the result is within the control limits

Table ‎4-2- Statistical Quality Control Terms

4.12.1 Inputs to Plan Quality

1. Scope baseline 2. Stakeholder register 3. Cost performance baseline 4. Schedule baseline 5. Risk register 6. Enterprise environmental factors 7. Organizational process assets

4.12.2 Tools and Techniques for Plan Quality

1. Cost-benefit analysis 2. Cost of quality

4- Planning Phase


3. Control charts 4. Benchmarking 5. Design of experiments 6. Statistical sampling 7. Flowcharting 8. Proprietary quality 9. management methodologies 10. Additional quality planning tools

1. Cost-Benefit Analysis Quality planning must consider cost-benefits tradeoffs. The primary benefit of meeting quality requirements is less rework, which means:

Higher productivity

Lower costs

Increased stakeholder satisfaction. The primary cost of meeting quality requirements is the expense associated with Project Quality Management activities. 2. Cost of Quality Quality costs are the total costs incurred by:

Investment in preventing nonconformance to requirements

Appraising the product or service for conformance to requirements

Failing to meet requirements (rework).

Failure costs are often categorized into internal and external.

Failure costs are also called cost of poor quality.

Examples of Cost of Conformance

Examples of Cost of Non-Conformance

• Prevention (build a quality product):

– Training – Documenting

processes – New equipment – Allow time to do it

right – Briefing – Maintenance – Audit

• Appraisal (asses the quality):

– Testing – Inspection

• Internal Failure – Rework – Scrap

• External Failure – Recalls – Warranty costs – Handling customer

complaints – Lost Business

4- Planning Phase


– Destructive testing loss

Table ‎4-3- Cost Conformance

4- Planning Phase


Exercise ‎4-10 - Cost of Quality

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 4.10 – Cost of Quality Define examples of each of the following type of cost:

1. Prevention 2. Appraisal 3. Internal failure 4. External failure

4- Planning Phase


3. Control Charts It is used to determine whether or not a process is stable or has predictable performance. It serves as a data gathering tool to show when a process is subject to special cause variation, which creates an out-of-control condition. Illustrate how a process behaves over time. Below are the main attributes of the control charts:

They are a graphic display of the interaction of process variables on a process to answer the question: Are the process variables within acceptable limits?

Examination of the non-random pattern of data points on a control chart may reveal wildly fluctuating values, sudden process jumps or shifts, or a gradual trend in increased variation.

By monitoring the output of a process over time, a control chart can be employed to assess whether the application of process changes resulted in the desired improvements.

When a process is within acceptable limits, the process need not be adjusted.

When a process is outside acceptable limits, the process should be adjusted.

The upper control limit and lower control limit are usually set at +/- 3 sigma (i.e., standard deviation).

Figure ‎4-30- Control Chart

Upper Control Limit (UCL)

X

Lower Control Limit (LCL)

Upper Specification Limit (USL)

Lower Specification Limit (LSL)

4- Planning Phase


4. Benchmarking Benchmarking involves comparing actual or planned project practices to those of other projects. This is to generate ideas for improvement and to provide a basis by which to measure performance. These other projects can be within the performing organization or outside of it, and can be within the same or in another application area. 5. Design of Experiments It is a statistical method that helps identify which factors may influence specific variables of a product or process. It also plays a role in the optimization of products or processes. It provides a statistical framework for systematically changing all of the important factors. 6. Statistical Sampling Statistical sampling involves choosing part of a population of interest for inspection. Appropriate sampling can often reduce the cost of quality control. There is a substantial body of knowledge on statistical sampling; in some application areas, it may be necessary for the project management team to be familiar with a variety of sampling techniques.

7. Flowcharting Flowcharting helps to analyze how problems occur. A flowchart is a graphical representation of a process. There are many styles, but all process flowcharts show activities, decision points, and the order of processing. They show how various elements of a system interrelate.

Figure ‎4-31- Flow Chart

22

Pressurization test

X-ray the weld to

detect micro-fractures

Fractures

detected

?

Connect pressure unit

to open end of pipe

Pressurization test

Pressurization test

Yes

No

YesNo

C

A

B

Grind out the old weld

Prepare the weld

surface

Apply the new weld

Test completeTime

elapsed?

Leaks

detected?

4- Planning Phase


8. Proprietary Quality Management Methodologies Many organizations in different industries developed quality approaches to manage quality in specific industries of line of business. Some of them are:

Six Sigma

Lean Six Sigma

CMMi

Others 9. Additional Quality Planning Tools

Brainstorming

Affinity diagrams

Force field analysis

Nominal group techniques

Matrix diagrams

Flowcharts

Prioritization matrices

4.12.3 Outputs of Plan Quality

1. Quality Management Plan 2. Quality Metrics 3. Quality Checklists 4. Process Improvement Plan:

o Process boundaries o Process configuration o Process metrics o Targets for improved performance

5. Project Documents Updates: o Stakeholder register o Responsibility Assignment Matrix

1. Quality Management Plan It describes how the project management team will implement the performing organization’s quality policy. The quality management plan is a component or a subsidiary plan of the project management plan. The quality management plan provides input to the overall project management plan and must address:

Quality control (QC)

Quality assurance (QA)

Continuous process improvement for the project.

2. Quality Metrics A metric is an operational definition that describes, in very specific terms, what something is and how the quality control process measures it. A measurement is an actual value. Quality metrics are used in the QA and QC processes. Some examples of quality metrics

4- Planning Phase


include Defect density, Failure rate, Availability, Reliability and Test coverage.

3. Quality Checklists A checklist is a structured tool, used to verify that a set of required steps has been performed. They are usually phrased as imperatives (“Do this”) or interrogatories (“Have you done this?”). Many organizations have standardized checklists available to ensure consistency in frequently performed tasks. Checklists are also available from professional associations or commercial service providers. Quality checklists are used in the quality control process. 4. Process Improvement Plan It is a subsidiary of the project management plan. It details the steps for analyzing processes that will facilitate the identification of waste and non-value added Activity. It increases customer value, such as:

Process boundaries.

Process configuration.

Process metrics.

Targets for improved performance.

4- Planning Phase


Exercise ‎4-11 - Create Quality Management Plan

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 4.11 – Create Quality Management Plan For the case study provided by the instructor, create the project quality management plan. Note: Use form 9.6 in Appendix 2

4- Planning Phase


4.13 Develop Human Resource Plan

Figure ‎4-32- Develop Human Resource Plan Process


1.Activity

resource

requirements

2.Enterprise

environmental

factors

3.Organizational

process assets

Inputs

1.Organization

charts and

position

descriptions

2.Networking

3.Organizational

theory

Tools &

Techniques

1.Human

resource plan

Outputs

Definition Develop Human Resource Plan is the process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan.


4- Planning Phase


Process Interaction

Figure ‎4-33- Develop Human Resource Plan – Process Interaction

The Project Management Team The project management team is subset of the project team. This group is referred to as, the core, executive or leadership team. Their main role is the project management and leadership activities. The figure below shows the position of the project management team with respect to the other stakeholders.

4- Planning Phase



Figure ‎4-34 - Develop Human Resource Plan Process

4.13.1 Inputs to Develop Human Resource Plan

1. Activity resource requirements 2. Enterprise environmental factors 3. Organizational process assets

4.13.2 Tools and Techniques for Develop Human Resource Plan

1. Organization charts and position descriptions 2. Networking 3. Organizational theory

1. Organization Charts and Position Descriptions These are tools used to document roles and responsibilities of each team member with respect to the project tasks. Unclear roles and responsibilities are a major source of team conflicts. It is very important to document them clearly, and maintain the clarity by a continuous update and review. They may be documented in any of the following formats:

P

Project

Management

Team

Other Project

Team

Members

Project

Manager

Project

SponsorProject

Team

Project

StakeholdersOperations

Mngt.

Other

Stake-Holders

Portfolio

Manager

Program

Manager

Project

Mngt.

Office

Customers

/ Users

Sellers /

Business Partners

Function

al Managers

4- Planning Phase


Figure ‎4-35- Organization Charts and Position Descriptions

Hierarchical This is a top-down graphical format that is used to represent the team members’ positions and their relationships with each other. Like the work Breakdown Structure (WBS), this is an Organization Breakdown Structure (OBS)

Matrix A responsibility assignment matrix is used to show the relationship between the project work packages or activities and the project team members. Below is an example of the responsibility matrix in RACI (Responsibility, Accountability, Consult and Inform) format.

Table ‎4-4- Human Resource Management Process Mapping

Text oriented A routinely produced text documents; that describe the responsibility of each team member. They can be given many names, like position description, job description, job responsibilities etc.

Activity John Jimmy

John

Jimmy

Sara

Name: ________

Role: ___________Responsibility: _______Authority: ________

Hierarchical Matrix Text oriented

RACI Chart Person

Activity John Jimmy Sarah Andrew Ben

Produce functional requirements A R I I I

Produce system Pilot (first branch) I A R C C

Roll our remaining branchesI A R C C

Roll our remaining branchesA I I R I

R=Responsible A=Accountable C=Consult I=Inform

RACI= Responsible, Accountable, Consult and Inform

4- Planning Phase


2. Networking Interaction with others in the organization, either in formal or informal way can be done by the following: Information interaction with others. Proactive correspondences. Luncheon meetings. Informal conversations. Trade conferences.

3. Organizational Theory

Organizational theory provides information regarding the ways that people, teams, and organizational units behave. Applying proven principles shortens the amount of time needed to create the Human Resource Planning outputs and improves the likelihood that the planning will be effective.

4.13.3 Outputs of Develop Human Resource Plan

1. Human resource plan, that includes: Roles and responsibilities Project organization charts Staffing management plan

Roles and Responsibilities: Role: The label describing the portion of a project for which a person is accountable. Authority: The right to apply project resources makes decisions, and sign approvals. Responsibility: The work that a project team member is expected to perform in order to complete the project's activities. Competency: The skill and capacity required to complete project activities. Project Organization Charts Graphics display of the project team members that shows the communication and reporting lines, below are examples.

Figure ‎4-36- Develop Human Resource Plan – Process Interaction

P

Project

Management

Team

Other Project

Team

Members

Project

Manager

Project

SponsorProject

Team

4- Planning Phase


Staffing Management Plan Staffing management plan includes, but not limited to the following:

Staff acquisition Resource calendars Staff release plan Training needs Recognition and rewards Compliance Safety

4- Planning Phase


4.14 Plan Communications

Figure ‎4-37 - Plan Communications Process


1.Stakeholder

register

2.Stakeholder

management

strategy

3.Enterprise

environmental

factors

4.Organizational

process assets

Inputs

1.Communication

requirements

analysis

2.Communication

technology

3.Communication

models

4.Communication

methods

Tools &

Techniques

1.Communication

management

plan

2.Project

document

updates

Outputs

Definition Plan Communications is the process of determining the project stakeholder information needs and defining a communication approach.


4- Planning Phase


Process Interaction

Figure ‎4-38 Plan Communications – Process Interaction

4.14.1 Inputs to Plan Communications

1- Stakeholder register 2- Stakeholder management strategy 3- Enterprise environmental factors 4- Organizational process assets

4.14.2 Tools and Techniques for Plan Communications

1- Communication requirements analysis 2- Communication technology 3- Communication models 4- Communication methods

1. Communication requirements analysis The analysis of the communications requirements results in the sum of the information needs of the project stakeholders. These requirements are defined by combining the type and format of information needed with an analysis of the value of that information. Project resources are expended only on communicating information that contributes to success, or where a lack of communication can lead to failure. This

4- Planning Phase


does not mean that “Bad news” should not be shared; rather, the intent is to prevent overwhelming stakeholders with minutiae. Information typically required to determine project communications requirements includes:

Organization charts

Project organization and stakeholder responsibility relationships

Disciplines, departments, and specialties involved in the project

Logistics of how many persons will be involved with the project and cat which locations

Internal information needs (e.g., communicating across organizations)

External information needs (e.g., communicating with the media or contractors)

Stakeholder information.

Communication Channels Project team members communicate with each other through channels. The ore the members are, the more channels exist. Every party has its own communication needs. The number of Communication channel can be determined by the following equation:

2. Communication technology Communications technology factors that can affect the project include:

The urgency of the need for information

The availability of technology

The expected project staffing

The length of the project

The project environment

3. Communication models Both the sender and receiver of a message have responsibilities in communication. The sender of information is responsible for making information clear and complete. The receiver is responsible for making sure that all of the information has been received and understood.

Communication Model Components

Encode

Message and feedback-message

Medium

4- Planning Phase


Noise

Decode Sender / Receiver Model The communication model states the following:

An idea is translated in the brain into words (encode)

The lips spell out the message in words that are understood by the receiving party

The words travel in the medium to the receiver

The message is received by the receiving party and translated back into the idea (encoding)

Figure ‎4-39- Sender / Receiver Model

It is important to note here that the responsibility of ensuring the successful message delivery is on the sender. He has to ensure that a feedback happens from the receiver to confirm his understanding.

4. Communication Methods Many communication methods exist for the project team to communicate, depending on the need and situation, as follows:

Interactive Communication: a Multidirectional, most efficient to ensure a common understanding.

Push communication: Sent to specific recipient, ensure that information is distributed but does not ensure that it reached or understood.

Pull communication: for a large volume of information or audience, intranet, e-learning etc.

30

1- Idea

2- Encode

4- Decode

5- Encode

3- Message

6- Message Feedback

Sender

Receiver

4- Planning Phase


4.14.3 Outputs of Plan Communications

1- Communication management plan 2- Project document updates

1. Communication management plan The communication management plan includes, but not limited to:

Stakeholder communication requirements

Information to be communicated, including language, format, content, and level of detail;

Reason for the distribution of that information

Time frame and frequency for the distribution of required information

Person responsible for communicating the information

Person responsible for authorizing release of confidential information

Person or groups who will receive the information

Methods or technologies used to convey the information, such as memos, e-mail, and/or press releases

Resources allocated for communication activities, including time and budget

Escalation process identifying time frames and the management chain (names) for escalation of issues that cannot be resolved at a lower staff level.

Method for updating and refining the communications management plan as the project progresses and develops;

Glossary of common terminology

Flow charts of the information flow in the project, workflows with possible sequence of authorization, list of reports and meeting plans, etc.

Communication constraints usually derived from specific legislation or regulation, technology, and organizational policies, etc.

2. Project document updates This planning process may result into changing some of the already prepared documents, like:

Project schedule


Stakeholder management strategy

4- Planning Phase


Exercise ‎4-12 - Number of Communication Channels

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 4.12 – Number of Communication Channels How many communication channels exist in a project with a project manager, three team members and another three stakeholders?

4- Planning Phase


4.15 Plan Risk Management

Figure ‎4-40- Plan Risk Management Process


1.Project scope

statement

2.Cost management

plan

3.Schedule

management plan

4.Communication

management plan

5.Enterprise

environmental

factors

6.Organizational

process assets

Inputs

1.Planning

meetings and

analysis

Tools &

Techniques

1.Risk

management

plan

Outputs

Definition Risk Management Planning is the process of defining how to conduct risk management activities for a project.


4- Planning Phase


Process Interaction

Figure ‎4-41 - Plan Risk Management – Process Interaction

Uncertainty Risks are originated from uncertainties. Many decisions are taken while most of the information is not complete or “uncertain”, so the nature of decision is that they are taken with certain amount of uncertainty involved. Only when things are “certain”, the decision id found wrong or right. Risk Management as a Proactive Approach Risks are events that “May or May not” happen in the future. Project managers are working on influencing the risk before they happen, once a risk is realized “happened”, then it is not any more a risk, it is a “certain” event that requires corrective actions (contingencies). Risk Tolerance Risk tolerance is the degree to which organizations are willing to accept risks. Organizations may accept risks if they are within the tolerance they set. Risks should be balanced with the rewards that may be gained by taking them. Known / Unknown Risks Known risks:

Those that have been identified and analyzed.

It may be possible to plan for known risks. Unknown risks:

Cannot be managed

4- Planning Phase


Project managers may address them by applying a general contingency plan, based on past experience with similar projects.

Threats and Opportunities Organizations perceive risk as:

Threats to project success

Opportunities to enhance chances of project success Risks that are threats to the project may be accepted if the risk is in balance with the reward that may be gained by taking the risk.

4.15.1 Inputs to Plan Risk Management

1. Project scope statement 2. Cost management plan 3. Schedule management plan 4. Communication management plan 5. Enterprise environmental factors 6. Organizational process assets

4.15.2 Tools and Techniques for Plan Risk Management

1. Planning meetings and analysis

1. Planning meetings and analysis Project teams hold planning meetings to develop the risk management plan. Attendees at these meetings may include:

Project manager

Selected project team members

Stakeholders

Anyone in the organization with responsibility to manage the risk planning and execution activities

Others, as needed. General organizational templates for risk categories and definitions of terms will be tailored to the specific project such as:

Levels of risk

Probability by type of risk

Impact by type of objectives

Probability and impact matrix The outputs of these activities will be summarized in the risk management plan.

4.15.3 Outputs of Plan Risk Management

1. Risk management plan

1. Risk management plan

4- Planning Phase


The risk management plan describes how risk management will be structured and performed on the project. It becomes a subset of the project management plan and will include the following:

Methodology

Roles and responsibilities

Budgeting

Timing

Risk categories

Definitions of risk probability and impact

Probability and impact matrix

Revised stakeholders’ tolerances

Reporting formats

Tracking

4- Planning Phase


4.16 Identify Risks

Identify Risk Team Participants in risk identification activities can include the following:

Project manager

Project team members

Risk management team (if assigned)

Subject matter experts from outside the project team

Customers

End users

Other project managers

Stakeholders

Risk management experts Identify Risk is Iterative Identify Risk is an iterative process because new risks may become known as the project progresses through its life cycle. The frequency of iteration and who participates in each cycle will vary from case to case. The project team should be involved in the process so that they can develop and maintain a sense of ownership of, and responsibility for, the risks and associated risk response actions. Stakeholders outside the project team may provide additional objective information. Identify Risk Following Process The Identify Risk process usually leads to the Qualitative Risk Analysis process. Alternatively, it can lead directly to the Quantitative Risk Analysis process when conducted by an experienced risk manager.

Definition Identify risk determines which risks might affect the project and documents their characteristics.


4- Planning Phase


Figure ‎4-42 - Identify Risks Process


Process Interaction

Figure ‎4-43 Identify Risks – Process Interaction

1. Risk MP

2. Activity cost

estimates

3. Activity duration

estimates4. Scope baseline

5. Stakeholder register

6. Cost MP

7. Schedule MP

8. Quality MP9. Project documents

10. Enterprise env.

factors

11.Organizational

process assets

Inputs

1.Documentation

reviews

2. Information

gathering

techniques

3.Checklist

analysis

4.Assumptions

analysis

5.Diagramming

techniques

6.SWOT analysis

7.Expert judgment

Tools &

Techniques

1. Risk register

Outputs

4- Planning Phase


4.16.1 Inputs to Identify Risks

1- Risk management plan 2- Activity cost estimates 3- Activity duration estimates 4- Scope baseline 5- Stakeholder register 6- Cost management plan 7- Schedule management plan 8- Quality management plan 9- Project documents 10- Enterprise environmental factors 11- Organizational process assets

4.16.2 Tools and Techniques for Identify Risks

1- Documentation reviews 2- Information gathering techniques 3- Checklist analysis 4- Assumptions analysis 5- Diagramming techniques 6- SWOT analysis 7- Expert judgment

1. Documentation reviews A structured review may be performed of project documentation, including:

Plans

Assumptions

Prior project files

Other information The quality of the plans, as well as consistency between those plans and with the project requirements and assumptions, can be indicators of risk in the project. 2. Information gathering techniques Information gathering techniques that include but not limited to the following:

Brainstorming

Delphi technique

Interviewing

Root cause identification

Strengths, weaknesses

3. Checklist analysis Risk identification checklists can be developed based on historical information and knowledge that has been accumulated from previous

4- Planning Phase


similar projects and from other sources of information. The lowest level of the RBS can also be used as a risk checklist. While a checklist can be quick and simple, it is impossible to build an exhaustive one. Care should be taken to explore items that do not appear on the checklist. The checklist should be reviewed during project closure to improve it for use on future projects. 4. Assumptions analysis Every project is conceived and developed based on a set of hypotheses, scenarios, or assumptions. Assumptions analysis is a tool that explores the validity of assumptions as they apply to the project. It identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions

5. Diagramming techniques The following techniques will be used in this process:

Cause-and-effect diagrams (Ishikawa or fishbone diagrams)

System or process flow charts

Influence diagrams

6. SWOT analysis When used in Risk Identification, SWOT analysis involves examining the project from each of the SWOT perspectives in order to increase the breadth of risks considered. Depending upon the magnitude of impact to the organization, SWOT analysis for the project can parallel SWOT analysis as applied to strategic planning for the organization and will use many of the same elements. This approach uses the following components:

Strengths

Weaknesses

Opportunities

Threats The above can also be seen as internal and external components, as follows: Internal Components - Strengths and weaknesses Strengths and weaknesses are internal to your project and organization, and can be assessed through:

Internal surveys

Focus Groups

Open Forums

Internal reports: finance, performance, quality, production capabilities

External Components - Opportunities and Threats

4- Planning Phase


Opportunities and threats are external to your project and/or organization, and can be assessed through:

Internal and external surveys

Industry research on global trends and competition

Marketing research on customer needs and preferences Opportunities and Threats can be identified by examining the following factors:

The Competition

Markets

Technological Advances

Political and Economic Climate

7. Expert judgment Subject matter experts internal or external to the organization, such as engineering or statistical experts, validate data and techniques.

4.16.3 Outputs of Identify Risks

1- Risk register

1. Risk Register The primary outputs from Risk Identification are the initial entries into the risk register, which becomes a component of the project management plan. The risk register ultimately contains the outcomes of the other risk management processes as they are conducted. The preparation of the risk register begins in the Risk Identification process with the following information, and then becomes available to other project management and Project Risk Management processes.

4- Planning Phase


Exercise ‎4-13 - Risk List

Exercise 4.13 – Identify Risks In the provided case stud, identify 10 potential risks that may come up during the project execution. Note: Use form 9.7 in Appendix 2 Do not fill the Probability, Impact and Overall Impact columns.

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

4- Planning Phase


4.17 Perform Qualitative Risk Analysis

Figure ‎4-44- Perform Qualitative Risk Analysis Process


1.Risk register

2.Risk

management

plan

3.Project scope

statement

4.Organizational

process assets

Inputs

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

Tools &

Techniques

1.Risk register

updates

Outputs

Definition Perform Qualitative Risk Analysis includes methods for prioritizing the identified risks for further action, such as Quantitative Risk Analysis or Risk Response Planning.


4- Planning Phase


Process Interaction

Figure ‎4-45- Perform Qualitative Risk Analysis – Process Interaction

4.17.1 Inputs to Perform Qualitative Risk Analysis

1- Risk register 2- Risk management plan 3- Project scope statement 4- Organizational process assets

4.17.2 Tools and Techniques for Perform Qualitative Risk Analysis

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

1. Risk probability and impact assessment Risk probability assessment investigates the likelihood that each specific risk will occur. Risk impact assessment investigates the potential effect on a project objective such as time, cost, scope, or quality, including both negative effects for threats and positive effects for opportunities. 2. Probability and impact matrix Risks can be prioritized for further quantitative analysis and response, based on their risk rating. Ratings are assigned to risks based on their assessed probability and impact. Evaluation of each risk’s importance

4- Planning Phase


and, hence, priority for attention is typically conducted using a look-up table or a probability and impact matrix. Such a matrix specifies combinations of probability and impact that lead to rating the risks as low, moderate, or high priority. The organization should determine which combinations of probability and impact result in a classification of high risk “red condition”, moderate risk “yellow condition”, and low risk “green condition”. Impact can be ordinal (low, moderate, high, and very high) or cardinal (.1/ .3/ .5/ .7/ .9). Below is s sample probability and impact matrix

Figure ‎4-46- Probability and Impact Matrix

3. Risk data quality assessment A qualitative risk analysis requires accurate and unbiased data if it is to be credible. Analysis of the quality of risk data is a technique to evaluate the degree to which the data about risks is useful for risk management. It involves examining the degree to which the risk is understood and the accuracy, quality, reliability, and integrity of the data about the risk. The use of low-quality risk data may lead to a qualitative risk analysis of little use to the project. If data quality is unacceptable, it may be necessary to gather better data. Often, collection of information about risks is difficult, and consumes time and resources beyond that originally planned. 4. Risk categorization Risks to the project can be categorized by:

Sources of risk

The area of the project affected

Other useful category

51

1.5

1.0

0

5.0

3.0

.5

9.0

6.0

1.9

0.9

Ve

ry H

igh

0.5

Me

diu

m

0.1

Ve

ry L

ow

Very Low

1.5

Medium

5.5

Very High

8.5

Pro

ba

bilit

y

Impact

4- Planning Phase


To determine areas of the project most exposed to the effects of uncertainty. Grouping risks by common root causes can lead to developing effective risk responses. 5. Risk urgency assessment Risks requiring near-term responses may be considered more urgent to address. Indicators of priority can include time to affect a risk response, symptoms and warning signs, and the risk rating. 6. Expert judgment Subject matter experts internal or external to the organization, such as engineering or statistical experts, validate data and techniques.

4.17.3 Outputs of Perform Qualitative Risk Analysis

1- Risk register updates

1. Risk register updates The risk register is initiated during the Risk Identification process. The risk register is updated with information from Qualitative Risk Analysis and the updated risk register is included in the project management plan. The risk register updates from Qualitative Risk Analysis include:

Relative ranking or priority list of project risks

Risks grouped by categories

Causes of risks or project areas requiring particular attention

List of risks requiring response in the near-term

List of risks for additional analysis and response

Watch lists of low priority risks

Trends in qualitative risk analysis results The following table shows a sample of prioritized risks

Figure ‎4-47- Qualitatively Sorted Risks

* RISK Item Prb. Impact Overall

Risk

Poor understanding of customer’s requirements

Unavailable H/W before 3rd party arrival

Unavailable resources during Ramadan

Hardware component de-release

Management change

Requirements Change

1

2

3

4

5

6

L

M

M

H

M

L

H

L

M

M

H

H

H

L

M

H

H

H

4- Planning Phase


Exercise ‎4-14 - Qualitative Risk Prioritization

Exercise 4.14 – Qualitative Risk Prioritization Based on the previous exercise, study each risk and assign a value (L, M, H) to each of the following parameter for each risk:

1- Probability 2- Impact 3- Overall Impact

`

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

4- Planning Phase


4.18 Perform Quantitative Risk Analysis

Perform Quantitative Risk Analysis is performed on risks that have been prioritized by the Qualitative Risk Analysis process as potentially and substantially impacting the project’s competing demands. The Perform Quantitative Risk Analysis process analyzes the effect of those risk events and assigns a numerical rating to those risks. It also presents a quantitative approach to making decisions in the presence of uncertainty.

Figure ‎4-48- Perform Quantitative Risk Analysis Process


1.Risk register

2.Risk

management

plan

3.Cost

management

plan

4.Schedule

management

plan

5.Organizational

process assets

Inputs

1.Data gathering

and

representation

techniques

2.Quantitative risk

analysis and

modeling

techniques

3.Expert judgment

Tools &

Techniques

1.Risk register

update

Outputs

Definition Perform Quantitative Risk Analysis is the process of numerically analyzing the effect of the identified risks on overall project objectives.


4- Planning Phase


Process Interaction

Figure ‎4-49- Perform Quantitative Risk Analysis – Process Interaction

4.18.1 Inputs to Perform Quantitative Risk Analysis

1. Risk register 2. Risk management plan 3. Cost management plan 4. Schedule management plan 5. Organizational process assets

4.18.2 Tools and Techniques for Perform Quantitative Risk Analysis

1. Data gathering and representation techniques 2. Quantitative risk analysis and modeling techniques 3. Expert judgment

1. Data gathering and representation techniques Interviewing Interviewing techniques are used to quantify the probability and impact of risks on project objectives. The information needed depends upon the type of probability distributions that will be used Probability distributions Continuous probability distributions represent the uncertainty in values, such as durations of schedule activities and costs of project

4- Planning Phase


components. Discrete distributions can be used to represent uncertain events, such as the outcome of a test or a possible scenario in a decision tree. Continuous Distribution Examples:

Asymmetrical distributions

Uniform distributions Probability distribution types are:

Uniform

Normal

Triangular Below is example for each:

Uniform Normal Triangular

Figure ‎4-50- Probability distributions

2. Quantitative risk analysis and modeling techniques This includes the following techniques:

Sensitivity analysis Sensitivity analysis helps to determine which risks have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values. Expected monetary value analysis Expected monetary value (EMV) analysis is a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen. The EMV of opportunities will generally be expressed as positive values, while those of risks will be negative. EMV is calculated by multiplying the value of each possible outcome by its probability of occurrence, and adding them together. The EMV is calculated by multiplying the value of the event with its probability of happening. Decision tree analysis Decision tree analysis is usually structured using a decision tree diagram that describes a situation under consideration, and the implications of each of the available choices and possible

Pro

ba

bilit

y

Impact

Pro

ba

bilit

y

Impact

Pro

ba

bilit

y

Impact

4- Planning Phase


scenarios. It incorporates the cost of each available choice, the probabilities of each possible scenario, and the rewards of each alternative logical path. Solving the decision tree provides the EMV for each alternative, when all the rewards and subsequent decisions are quantified. Modeling and simulation A project simulation uses a model that translates the uncertainties specified at a detailed level of the project into their potential impact on project objectives. Simulations are typically performed using the Monte Carlo technique.

4.18.3 Outputs of Perform Quantitative Risk Analysis

1- Risk register update 1. Risk register update The risk register is initiated in the Risk Identification process and updated in Qualitative Risk Analysis. It is further updated in Quantitative Risk Analysis. The risk register is a component of the project management plan. Updates include the following main components:

Probabilistic analysis of the project

Probability of achieving cost and time objectives

Prioritized list of quantified risks

Trends in quantitative risk analysis results By the end of this process a risk list with the quantified values will be produced, as the following sample list.

Figure ‎4-51- Quantitatively Sorted Risks

* RISK Element Prb. Impact Overall

Risk

1

2

3

4

5

Wrong Track 2 Data on Credit Card

Installing Cables by Unqualified Team

Delay in Visa Certification

In-Operable Encryption S/W

In-Availability of Comms from SP

TOTAL

50%

40%

30%

40%

30%

1,000

2,000

1,500

2,000

1,000

500

800

500

800

300

2,900

4- Planning Phase


Exercise ‎4-15 - Expected Monetary Value

You’re Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 4.15 – Expected Monetary Value What is the Expected Monetary Value of an event that has 60% chance of making profit? In the case of achieving profit, the profit value will be US$ 10,000, while in the case of loss; the loss value will be US$ 3,000.

4- Planning Phase


4.19 Plan Risk Responses

Figure ‎4-52- Plan Risk Responses Process


1.Risk register

2.Risk

management

plan

Inputs

1.Strategies for

negative risks or

threats

2.Strategies for

positive risks or

opportunities

3.Contingent

response

strategies

4.Expert judgment

Tools &

Techniques

1.Risk register

updates

2.Risk-related

contract

decisions

3.Project

management

plan updates

4.Project

document

updates

Outputs

Definition Risk Response Planning is the process of developing options, and determining actions to enhance opportunities and reduce threats to the project’s objectives.


4- Planning Phase


Process Interaction

Figure ‎4-53- Plan Risk Responses – Process Interaction

4.19.1 Inputs to Plan Risk Responses

1. Risk register 2. Risk management plan

4.19.2 Tools and Techniques for Plan Risk Responses

1. Strategies for negative risks or threats 2. Strategies for positive risks or opportunities 3. Contingent response strategies 4. Expert judgment

1. Strategies for negative risks or threats Below are the strategies for the negative risks

Risk Avoidance Risk avoidance involves changing the project management plan to:

Eliminate the threat posed by an adverse risk

Isolate the project objectives from the risk’s impact

Relax the objective that is in jeopardy, such as extending the schedule or reducing scope.

Risk Transference Risk transference requires shifting the negative impact of a threat, along with ownership of the response, to a third party.

4- Planning Phase


Transferring the risk simply gives another party responsibility for its management; it does not eliminate it. Transferring liability for risk is most effective in dealing with financial risk exposure. Risk transference nearly always involves payment of a risk premium to the party taking on the risk. Risk Mitigation Risk mitigation implies a reduction in the probability and/or impact of an adverse risk event to an acceptable threshold. Taking early action to reduce the probability and/or impact of a risk occurring on the project is often more effective than trying to repair the damage after the risk has occurred. Risk Acceptance This is a strategy that is adopted because it is seldom possible to eliminate all risk from a project. This strategy indicates that the project team has decided not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy.

2. Strategies for positive risks or opportunities

Exploit This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. This strategy seeks to eliminate the uncertainty associated with a particular upside risk by making the opportunity definitely happen. Exploiting responses include assigning more talented resources to the project to reduce the time to completion, or to provide better quality than originally planned. Share Sharing a positive risk involves allocating ownership to a third party who is best able to capture the opportunity for the benefit of the project. Enhance This strategy modifies the “size” of an opportunity by increasing probability and/or positive impacts, and by identifying and maximizing key drivers of these positive-impact risks. Accept Being willing to take an advantage of the opportunity if it comes along, but will not actively pursuing it.

3. Contingent response strategies

4- Planning Phase


Some responses are designed for use only if certain events occur. For some risks, it is appropriate for the project team to make a response plan that will only be executed under certain predefined conditions. Events that trigger the contingency response (triggers), such as missing intermediate milestones or gaining higher priority with a supplier, should be defined and tracked. 4. Expert judgment Subject matter experts internal or external to the organization, such as engineering or statistical experts, validate data and techniques.

4.19.3 Outputs of Plan Risk Responses

1. Risk register updates 2. Risk-related contract decisions 3. Project management plan updates 4. Project document updates

1. Risk register updates These updates include:

Identified risks, their descriptions, area(s) of the project (e.g., WBS element) affected, their causes (e.g., RBS element), and how they may affect project objectives

Risk owners and assigned responsibilities

Outputs from the Qualitative and Quantitative Risk Analysis processes, including prioritized lists of project risks and probabilistic analysis of the project

Agreed-upon response strategies

Specific actions to implement the chosen response strategy

Symptoms and warning signs of risks’ occurrence

Budget and schedule activities required to implement the chosen responses

Contingency reserves of time and cost designed to provide for stakeholders’ risk tolerances

Contingency plans and triggers that call for their execution

Fallback plans for use as a reaction to a risk that has occurred, and the primary response proves to be inadequate

Residual risks that are expected to remain after planned responses have been taken, as well as those that have been deliberately accepted

Secondary risks that arise as a direct outcome of implementing a risk response

Contingency reserves that are calculated based on the quantitative analysis of the project and the organization’s risk thresholds.

2. Risk-related contract decisions

4- Planning Phase


Contractual agreements, such as agreements for insurance, services, and other items as appropriate, can be prepared to specify each party’s responsibility for specific risks, should they occur. 3. Project management plan updates





Human Resources management plan

Work breakdown structure

Schedule baseline

Cost performance baseline

4- Planning Phase


Exercise ‎4-16 - Risk Response

Exercise 4.16 – Risk Response Based on the previous exercises, document at least five risks and provide the following:

1- Quantitative Probability, Impact and Overall Impact 2- Risk response (strategy) use all of the following:

a. Avoidance b. Transference c. Acceptance d. Mitigation e. Exploit

3- For risks that will have mitigation strategy, identify the mitigation plans and the contingency plans.

` Note: Use form 9.8 in Appendix 2

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

4- Planning Phase


4.20 Plan Procurements

Figure ‎4-54- Plan Procurements Process


1. Scope baseline

2. Req. documentation

3. Teaming agreements

4. Risk register

5. Risk-related contract decisions

6. Activity resource req.

7. Project schedule

8. Activity cost

estimates 9. Cost performance

baseline

10.Enterprise env.

factors

11. Organizational PA

Inputs

1.Make-or-buy

analysis

2.Expert judgment

3.Contract types

Tools &

Techniques

1.Procurement

management

plan

2.Procurement

statements of

work

3.Make-or-buy

decisions

4.Procurement

documents

5.Source selection

criteria

6.Change requests

Outputs

Definition Plan Procurement is the process of documenting project purchases decision


4- Planning Phase


Process Interaction

Figure ‎4-55- Plan Procurements Data Flow

Contracts A contract is a mutually binding legal agreement that obligates the seller to provide the specified products, services, or results, and obligates the buyer to pay the seller. Buyer Seller Model The seller can be called a contractor, subcontractor, vendor, service provider, or supplier, depending on the buyer’s position in the project acquisition cycle. The buyer can be called a client, customer, prime contractor, contractor, acquiring organization, governmental agency, service requestor, or purchaser. The seller can be viewed during the contract life cycle first as a bidder, then as the selected source, and then as the contracted supplier.

4.20.1 Inputs to Plan Procurements

1. Scope baseline 2. Req. documentation 3. Teaming agreements 4. Risk register 5. Risk-related contract decisions 6. Activity resource req. 7. Project schedule 8. Activity cost estimates 9. Cost performance baseline

4- Planning Phase


10. Enterprise environmental factors 11. Organizational process assets

4.20.2 Tools and Techniques for Plan Procurements

1. Make-or-buy analysis 2. Expert judgment 3. Contract types

1. Make-or-Buy Analysis Some general rules to keep in mind during the decision-making process are:

Leverage internal resources first (staff, factories, etc.) and supplement with procured resources as needed.

Consider both the direct costs and indirect costs during make-or-buy analysis.

Primary contractors may subcontract parts of the work. Considering that overhead expenses will be charged by both parties, it may not be advantageous to the primary contractor to subcontract the majority (over half) of the work.

Reasons to Make over Buy Sometimes, the organization may decide to make the product internally, rather than outsourcing it from outside based on many factors, like:

Protect proprietary information that provides competitive advantage

Surplus staff

Surplus plant capacity

Ease of project control Make-or-buy decisions should always take into consideration both the direct costs to the buyer and the indirect costs to the buyer

Make Product Buy Product

• Direct Costs: Labor Material Other

• Indirect Costs: Overhead Salaries of Executives General Administrative Other

• Direct Costs: Purchase price Other

• Indirect Costs: Contract administration Other

Table ‎4-5 - Reasons to Make over Buy

4- Planning Phase


Exercise ‎4-17 - Make or Buy Decision

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 4.17 –Make or Buy Decision Based on the supplied case study, which part of the project will your organization prefer to make and which part your organization will prefer to buy? Provide your reasons.

4- Planning Phase


2. Expert Judgment Expert technical judgment will often be required to assess the inputs to and outputs from this process. Expert purchasing judgment can also be used to develop or modify the criteria that will be used to evaluate offers or proposals made by sellers. 3. Contract Types The three major types of contracts are:

Fixed-price or lump-sum contracts.

Cost-reimbursable contracts.

Cost-Plus-Fee (CPF) or Cost-Plus-Percentage of Cost (CPPC).

Cost-Plus-Fixed-Fee (CPFF).

Cost-Plus-Incentive-Fee (CPIF).

Time and Material (T&M) contracts. Although there are three choices of contract type from which to choose, the “default” choice commonly selected is fixed-price. This may cause problems for the project if the conditions under which to use this contract type are not true. For example, fixed-price contracts are most useful when no scope changes are expected Purchase Order (PO) Purchase Order (PO) is a legal document (contract) issued by the buyer authorizing a purchase. It is a unilateral document in that only one party; the buyer in this case, need sign the document. PO’s are used for simple procurements.

4- Planning Phase


Fixed Price Contract

Fixed Price

Other Names Lump-sum, Firm Fixed Price, FP

When to Use • Scope of work is well defined • Substantial changes are not expected

Advantages • Requires least amount of managerial oversight by buyer

• Least cost risk to buyer if scope is well defined • Seller has incentive to control costs • Project budget is known at the beginning

Disadvantages • Takes greatest effort to create scope of work • Scope changes are difficult to accommodate and

typically expensive

Forms of Contract Type

• Firm Fixed Price Contracts (FFP) • Fixed Price Incentive Fee Contracts (FPIF) • Fixed Price with Economic Price Adjustment

Contracts (FP-EPA)

Cost Risk Carried By…

Seller – assuming that the product is well defined, the seller carries the most risk for higher costs

Table ‎4-6 - Fixed Price Contract

4- Planning Phase


Cost-Reimbursable Contract

Fixed Price

Other Names CR

When to Use • Desired results are known but requirements to achieve results are not known

• Flexibility in change control is needed

Advantages • Takes less effort to create scope of work than FP • Provides more flexibility to the buyer in

accommodating scope changes than FP

Disadvantages • Requires greater amount of managerial oversight by buyer than FP

• Seller has less incentive to control costs than in FP

Forms of Contract Type

• Cost plus Fixed Fee Contracts (CPFF) • Cost Plus Incentive Fee Contracts (CPIF) • Cost Plus Award Fee Contracts (CPAF)


Buyer – total costs are not known until project completion

Table ‎4-7 - Cost Reimbursable Contract

4- Planning Phase


Time and Material Contract

Fixed Price

Other Names T&M, Unit Price, Hybrid of FP and CR

When to Use Short-term project

Scope of work is not well defined

Cost is small

Buyer wants more control

Advantages Takes least effort to create scope of work and contract

Ease of use when the item being purchased is skilled labor (engineering or technical) or when work must begin immediately (repairs, emergencies, etc.)

Disadvantages Seller has no incentive to control costs

Requires greatest amount of day-to-day oversight by buyer


Buyer – medium risk because T&M typically used for short-term delivery. The seller has no financial risk on T&M contracts.

Table ‎4-8 - Time and Material Contract

4.20.3 Outputs of Plan Procurements

1. Procurement management plan 2. Procurement statements of work 3. Make-or-buy decisions 4. Procurement documents 5. Source selection criteria 6. Change requests

1. Procurement Management Plan The Procurement Management plan document contains the guidelines of how the organization will go about the procurement in this project, it contains the following information:

Types of contracts to be used

Risk management issues

Whether independent estimates will be used and if they are needed as evaluation criteria;

4- Planning Phase


Those actions the project management team can take unilaterally, if the performing organization has a prescribed procurement, contracting, or purchasing department.

Standardized procurement documents

Managing multiple suppliers

Coordinating procurement with other project aspects, such as scheduling and performance reporting.

Any constraints and assumptions that could affect planned procurements.

Handling the make-or-buy decisions and linking them into the Administer Procurements and Close Procurements

Setting the scheduled dates in each contract for the contract deliverables and coordinating with the schedule development and control processes

Identifying requirements for performance bonds or insurance contracts to mitigate some forms of project risk;

Establishing the direction to be provided to the sellers on developing and maintaining a work breakdown structure (WBS)

Establishing the form and format to be used for the procurement/contract statements of work

Identifying pre-qualified sellers, if any to be used

Procurement metrics to be used to manage contracts and evaluate sellers

2. Procurement Statements of Work Each procurement statement of work defines, for those items being purchased or acquired, just the portion of the project scope that is included within the related contract. The statement of work (SOW) for each contract is developed from:

The project scope statement

The project work breakdown structure (WBS)

WBS dictionary. The procurement SOW describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the item. 3. Make-or-Buy Decisions The documented decisions of what project products, services, or results will be either acquired or will be developed by the project team. 4. Procurement Documents A term such as proposal is generally used when other considerations, such as technical skills or technical approach, are paramount. However, the terms are often used interchangeably and care is taken not to make unwarranted assumptions about the implications of the term used.

4- Planning Phase


A term such as proposal is generally used when other considerations, such as technical skills or technical approach, are paramount. However, the terms are often used interchangeably and care is taken not to make unwarranted assumptions about the implications of the term used. Common Names for Different Types of Procurement Documents

Invitation for bid (IFB)

Request for proposal (RFP)

Request for quotation (RFQ)

Tender notice

Invitation for negotiation

Contractor initial response. Comparison of Procurement Documents Types

Type When to use

IFB, ITB, RFB

For simple procurements

To obtain best price from prospective seller(s)

RFI • To obtain information on a specific company or product from prospective seller(s)

RFQ For less complex procurements

To obtain information and firm quotes from prospective seller(s).

Takes less time than RFP to: write, receive response from sellers, and evaluate

RFP, RFT Used for complex procurements – such as new development

To obtain firm quotes from prospective seller(s), but also a description in detail of the seller’s approach to fulfilling requirements: management approach, key human resource requirements, technical specifications, special provisions, terms and conditions, etc.

Takes more time than RFQ to: write, receive response from sellers, and evaluate

Table ‎4-9 - Comparison of Procurement Documents Types

4- Planning Phase


5. Source Selection Criteria During the planning phase, the project team will identify the selection criteria, on which the project source or vendor selection will be based on. Below are some factors of a typical selection criteria:

Understanding of need

Overall or life-cycle cost

Technical capability

Risk

Management approach

Technical approach

Warranty

Financial capacity

Production capacity and interest

Business size and type

Past performance of sellers

References

Intellectual property rights

Proprietary rights

4- Planning Phase


Exercise ‎4-18-Contract Types

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 4.18 –Contract Types 1- Based on the supplied case study, what contract should your

organization engage with the supplier? Provide your reasons. 2- What are the project circumstance that will make your

organization go in this project in the following contracts: a. Fixed Price b. Time and Material

5- Execution Phase


5. Project Execution Phase

This is the phase where all the project plans are executed and moved from being on paper to reality on the ground. During this phase, the following eight execution processes are executed:

4.3 Direct and Manage Project Execution 8.2 Perform Quality Assurance 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team 10.3 Distribute Information 10.4 Manage Stakeholder Expectations 12.2 Conduct Procurements

5- Execution Phase


5.1 Direct and Manage Project Execution

Figure ‎5-1- Direct and Manage Project Execution Process


1.Project

management

plan

2.Approved

change

requests

3.Enterprise

environmental

factors

4.Organizational

process assets

Inputs

1.Expert judgment

2.Project

management

information

system

Tools &

Techniques

1.Deliverables

2.Work

performance

information

3.Change

requests

4.Project

management

plan updates

5.Project

document

updates

Outputs

Definition Direct and Manage Project Execution is the process of performing the work defined in the project management plan to achieve the project objectives.


5- Execution Phase


Process Interaction

Figure ‎5-2- Direct and Manage Project Execution – Process Interaction

5.1.1 Inputs to Direct and Manage Project Execution

1- Project management plan 2- Approved change requests 3- Enterprise environmental factors 4- Organizational process assets

1- Enterprise Environmental Factors

Organizational, company or customer culture and structure

Infrastructure (e.g. existing facilities and capital equipment)

Personnel administration (e.g. hiring and firing guidelines, employee performance reviews and training records)

Stakeholder risk tolerances

Project management information systems

2- Organizational Process Assets

Standardized guidelines and work instructions

Communication requirements defining allowed communication media, record retention, and security requirements

Issue and defect management procedures defining issue and defect controls, issue and defect identification and resolution , and action item tracking

Process measurement database used to collect and make available measurement data on processes and products

Project files from prior projects

5- Execution Phase


Issue and defect management database containing historical issue and defect status, control information, issue and defect resolution, and action item results.

5.1.2 Tools and Techniques for Direct and Manage Project Execution

1- Expert judgment 2- Project management information system

1. Expert judgment

Other units from the organization

Consultants

Stakeholders, including customers or sponsors

Professional and technical associations 2. Project management information system

It is an automated system, is used by the project management team to:

Support generation of a preliminary project scope statement

Facilitate feedback as the document is refined

Control changes to the project scope statement

Release the approved document

5.1.3 Outputs of Direct and Manage Project Execution

1- Deliverables 2- Work performance information 3- Change requests 4- Project management plan updates 5- Project document updates

1. Deliverables

Unique and verifiable product

Must be produced to complete the process, phase or a cycle 2. Work performance information

Deliverable status

Schedule progress

Costs incurred 3. Change requests

Corrective action

Preventive action

Defect repair

Updates 4. Project management plan updates

5- Execution Phase






Human resource plan

Communications management plan

Risk management plan


Project baseline 5. Project document updates

Requirements documents

Project logs (issue, assumptions. etc.)

Risk register


5- Execution Phase


5.2 Perform Quality Assurance

Figure ‎5-3 - Perform Quality Assurance Process


1.Project

management

plan

2.Quality metrics

3.Work

performance

information

4.Quality control

measurements

Inputs

1.Plan Quality and

Perform Quality

Control tools

and techniques

2.Quality audits

3.Process analysis

Tools &

Techniques

1.Organizational

process asset

updates

2.Change requests

3.PM plan updates

4.Project

document

updates

Outputs

Definition Perform 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.


5- Execution Phase


Process Interaction

4.2 Develop

Project

Management Plan

8.2 Perform Quality

Assurance

Enterprise/

Organization

`Project

Documents

Ø Quality management plan

Ø Process improvement plan

Ø Project

Documents

Updates

8.1 Plan Quality

8.3 Perform

Quality Control

Ø Quality Metrics


ØQuality control measurements

ØQuality metrics


ØProcess improvement plan

ØWork performance information



updates

ØChange requests

ØProject management plan

updates


4.5 Perform

Integrated change

Control

Ø Change

requests

Ø Project management

plan updates

Ø Work Performance information

Ø Organizational

process assets

updates

4.3 Direct and

Manage Project

Execution

Ø Quality Control

measurements



Ø

Figure ‎5-4- Perform Quality Assurance– Process Interaction

5.2.1 Inputs of Perform Quality Assurance

1- Project management plan 2- Quality metrics 3- Work performance information 4- Quality control measurements

5.2.2 Tools and Techniques for Perform Quality Assurance

1- Plan Quality and Perform Quality Control tools and techniques 2- Quality audits 3- Process analysis

1. Plan Quality and Perform Quality Control

Cost-benefit analysis

Cost of quality

Control charts

Benchmarking

Design of experiments

Statistical sampling

Flowcharting

Proprietary quality

management methodologies

Additional quality planning tools

5- Execution Phase


2. Quality Metrics Structured, independent review to determine whether project activities comply with policies, processes, and procedures. The objective of a quality audit is to identify inefficient and ineffective policies, processes, and procedures in use on the Quality audits may be scheduled or at random, and may be carried out by properly trained in-house auditors or by third parties. Quality audits confirm the implementation of approved change requests, corrective actions, defect repairs, and preventive actions. 3. Process Analysis Process analysis follows the steps outlined in the process improvement plan to identify any needed improvements. This analysis also examines:

Problems experienced

Constraints experienced

Non-value-added activities Includes root cause analysis, a specific technique to analyze a problem / situation, determine the underlying causes that lead to it, and create preventive actions for similar problems.

5.2.3 Outputs of Perform Quality Assurance

2- Organizational process asset updates 3- Change requests 4- PM plan updates 5- Project document updates

5- Execution Phase


Exercise ‎5-1 - Quality Assurance Activities

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 5.1 – Quality Assurance Activities Based on the provided case study, identify some activates that you need to perform to ensure the adherence to the required quality

5- Execution Phase


5.3 Acquire Project Team

Figure ‎5-5 - Sequence Activities Process


1.Project

management

plan

2.Enterprise

environmental

factors

3.Organizational

process assets

Inputs

1.Pre-assignment

2.Negotiation

3.Acquisition

4.Virtual teams

Tools &

Techniques

1.Project staff

assignments

2.Resource

calendars

3.Project

management

plan updates

Outputs

Definition Acquire Project Team is the process of confirming human resource availability and obtaining the team necessary to complete project assignments.


5- Execution Phase


Process Interaction

Figure ‎5-6- Acquire Project Team – Process Interaction

5.3.1 Inputs of Acquire Project Team

1- Project management plan 2- Enterprise environmental factors 3- Organizational process assets

Enterprise Environmental Factors

Existing information for human resources including who is available

Personnel administration policies such as those that affect outsourcing

Organizational structure Location or multiple locations

5- Execution Phase


5.3.2 Tools and Techniques for Acquire Project Team

1- Pre-assignment 2- Negotiation 3- Acquisition 4- Virtual teams

1. Pre-assignment In some cases, project team members are known in advance. This situation can occur if:

The project is the result of specific people being promised as part of a competitive proposal.

The project is dependent on the expertise of particular persons. Some staff assignments are defined within the project charter.

2. Negotiation The project management team may need to negotiate with:

Functional managers to ensure that the project receives appropriately competent staff in the required time frame.

Other project management teams within the performing organization to appropriately assign scarce or specialized resources.

3. Acquisition When the performing organization lacks the in-house staff needed to complete the project, the required services can be acquired from outside sources. This can involve hiring individual consultants or subcontracting work to another organization.

4. Virtual Team Virtual team creates new possibilities when acquiring project team members. Virtual teams can be defined as groups of people with a shared goal, who fulfill their roles with little or no time spent meeting face to face. The availability of electronic communication, such as e-mail and video conferencing, has made such teams feasible. The virtual team format makes it possible to:

Form teams of people from the same company who live in widespread geographic areas.

Add special expertise to a project team, even though the expert is not in the same geographic area.

Incorporate employees who work from home offices.

Form teams of people who work different shifts or hours

Include people with mobility handicaps.

Move forward with projects that would have been ignored due to travel expenses.

5- Execution Phase


5.3.3 Outputs of Acquire Project Team

1- Project staff assignments. 2- Resource calendars. 3- Project management plan updates.

1. Project Staff Assignments The project is staffed when appropriate people have been assigned to work on it. Documentation can include:

Project team directory Memos to team members Names inserted into other parts of the project management plan,

such as project organization charts and schedules.

2. Resource calendars Each resource will have a calendar that documents the time period he or she will be available during the project life cycle.

3. Project management plan updates As part of the project management plan, updates to the human resource plan may reflect any changes or additions that respond to any planning output.

5- Execution Phase


5.4 Develop Project Team

Figure ‎5-7- Develop Project Team Process


Objectives of Developing Project Team

Improve knowledge and skills of team members Improve feelings of trust and agreement among team members Create a dynamic and cohesive team culture

1.Project staff

assignments

2.Project

management

plan

3.Resource

calendars

Inputs

1. Interpersonal

skills

2.Training

3.Team-building

activities

4.Ground rules

5.Co-location

6.Recognition and

rewards

Tools &

Techniques

1.Team

performance

assessments

2.Enterprise

environmental

factors updates

Outputs

Definition Develop Project Team is the process of improving the competencies, team interaction, and the overall team environment to enhance project performance.


5- Execution Phase


Process Interaction

Figure ‎5-8- Develop Project Team – Process Interaction

5.4.1 Inputs to Develop Project Team

1- Project staff assignments 2- Project management plan 3- Resource calendars

5.4.2 Tools and Techniques for Develop Project Team

1- Interpersonal skills 2- Training 3- Team-building activities 4- Ground rules 5- Co-location 6- Recognition and rewards

1. Interpersonal skills Interpersonal skills, sometimes known as Soft skills, are particularly important to team development. The following aspects are part of the soft skills the project manager should practice:

Understanding the sentiments of project team members Anticipating their actions

5- Execution Phase


Acknowledging their concerns Following up on their issues

Key interpersonal skills include, but not limited to the following:

Leadership Team Building Motivation Communication Influencing Decision Making Political and Cultural Awareness Negotiations Source: PMBOK® Guide – Fourth Edition, page 417

Leadership Leadership involves focusing the efforts of a group of people towards a common goal. The key elements are respect and trust rather than fear and submission. Team Building It is the process of helping a group of individuals to work interdependently with each other. Team building activities:

Establish goals Define and negotiate roles and procedures

Team building Processes: Communication Conflict management Motivation Leadership

Motivation Project success depends highly on the team commitment, which is related to their level of motivation. It involves creating the environment to meet the project objectives. Communication It is identified as one of the single biggest reason for project success (or failure). Project manager should be aware of:

Communication styles of other parties Cultural issues Relationships Personalities Situational context

Influencing It is the strategy of sharing power. It involves relying on the interpersonal skills to get others to cooperate towards a common goal like:

5- Execution Phase


Lead by example Clarify how eh decision will be made Use flexible interpersonal style Apply the power skillfully and cautiously

Decision Making Four basic decision making styles:

Command Consultation Consensus Coin Flip (random)

A decision making model (Six Phase): Problem definition Problem solution generation Ideas to action Solution action planning Evaluation of the outcome and process

Political and Cultural Awareness Politics are inevitable in project environments. Skillful use of politics and power will help the project managers to succeed. Ignoring project politics will lead to difficulty in managing people Negotiations It is the strategy of conferring with parties of shared or opposed interests. The focus is on compromising or reaching an agreement. It is an integral part of project management, if done well, increases the chances of success

2. Training Training includes all activities designed to enhance the competencies of the project team members. Training can be formal or informal. Examples of training methods include:

Classroom Online Computer-based On-the-job training from another project team member Mentoring Coaching

3. Team-Building Activities Team building activities include management and individual actions taken specifically and primarily to improve team performance. Enhancing team performance can result from various activities. A few examples are:

Involving team members in the planning process Establishing rules for dealing with conflict

5- Execution Phase


Improving the climate for team discussions Improving stakeholder interaction by holding an off-site,

professionally facilitated event.

Team Formation Stage Forming: Initial judgments about teammates are made Storming: Control issues emerge Norming: Productive works begins Performing: Optimum productivity reached Adjourning: Project is done, team moves out of the project

4. Ground Rules Ground rules establish clear expectations regarding acceptable behavior by project team members. Early commitment to clear guidelines decreases misunderstandings and increases productivity. The process of discussing ground rules allows team members to discover values that are important to one another. All project team members share responsibility for enforcing the rules once they are established.

5. Co-Location Co-location involves placing many or all of the most active project team members in the same physical location. This is to enhance their ability to perform as a team. Co-location can be temporary, such as at strategically important times during the project, or for the entire project. Co-location strategy can include a meeting room, sometimes called a war room, with electronic communication devices, places to post schedules, and other conveniences that enhance communication and a sense of community. 6. Recognition and Rewards Part of the team development process involves recognizing and rewarding desirable behavior. Only desirable behavior should be rewarded. Willingness to work overtime to meet an aggressive schedule objective should be rewarded. Needing to work overtime as the result of poor planning should not be rewarded. Win-lose (zero sum) rewards that only a limited number of project team members can achieve, such as team member of the month, can hurt team cohesiveness. Rewarding win-win behavior that everyone can achieve, such as turning in progress reports on time, tends to increase support among team members.

5.4.3 Outputs of Develop Project Team

1- Team performance assessments 2- Enterprise environmental factors updates

5- Execution Phase


Motivational Theories When planning reward and recognition activities, as well as when using a project manager’s reward power, motivational theory is an important consideration. What motivates people to perform? Consider the theories of:

Maslow McGregor Herzberg.

Maslow’s Hierarchy of Needs According to Maslow’s theory:

Once a level of need is satisfied, it is no longer a motivational factor.

One cannot ascend to the next level until the levels below are fulfilled.

People do not perform for security or money, but rather to get a chance to contribute (self-actualization).

Figure ‎5-9- Maslow’s‎Hierarchy‎of‎Needs

McGregor’s Theory of X & Y Theory X: Workers are lazy and require close and constant supervision. Theory Y: Workers want to work and do not require constant supervision.

Herzberg’s Theory

Self-

Actualizat

ion

Self-fulfillment, growth,

learning

Esteem Accomplishment, respect

Social Love, affection, approval

SafetySecurity, stability, free from

harm

PhysiologicalAir, water, food, housing,

clothing

5- Execution Phase


Motivating Agents: Motivators are mostly intrinsic to the job and serve as motivators. Hygiene Factors (Demotivators): Are mostly environmental, the absence of which demotivate, however when present do not necessarily serve to motivate.

5- Execution Phase


5.5 Manage Project Team

Figure ‎5-10- Manage Project Team Process


1.Project staff

assignments

2.Project

management

plan

3.Team

performance

assessments

4.Performance

reports

5.Organizational

process assets

Inputs

1.Observation and

conversation

2.Project

performance

appraisals

3.Conflict

management

4. Issue log

5. Interpersonal

skills

Tools &

Techniques

1.Enterprise

environmental

factors updates

2.Organizational

process assets

updates

3.Change

requests

4.Project

management

plan updates

Outputs

Definition Manage Project Team is the process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance.


5- Execution Phase


Process Interaction

Figure ‎5-11- Manage Project Team – Process Interaction

5.5.1 Inputs to Manage Project Team

1. Project staff assignments 2. Project management plan 3. Team performance assessments 4. Performance reports 5. Organizational process assets

5.5.2 Tools and Techniques for Manage Project Team

1. Observation and conversation 2. Project performance appraisals 3. Conflict management 4. Issue log 5. Interpersonal skills

1. Observation and conversation The project manager needs to stay in touch with the work and attitudes of project team members. Monitors indicators such as:

Progress toward project deliverables Accomplishments Interpersonal issues.

2. Project Performance Appraisals

5- Execution Phase


The need for formal or informal project performance appraisals depends on:

The length of the project Complexity of the project Organizational policy Labor contract requirements The amount and quality of regular communication.

Objectives for conducting performance appraisals during the course of a project can include:

Re-clarification of roles and responsibilities Structured time to ensure team members receive positive

feedback in what might otherwise be a hectic environment Discovery of unknown or unresolved issues Development of individual training plans Establishment of specific goals for future time periods.

3. Conflict Management Successful conflict management results in greater productivity and positive working relationships. Sources of conflict include scarce resources, scheduling priorities, and personal work styles. Team ground rules, group norms, and solid project management practices, like communication planning and role definition, reduce the amount of conflict. When managed properly, differences of opinion are healthy, and can lead to increased creativity and better decision-making. When the differences become a negative factor, project team members are initially responsible for resolving their own conflicts. If conflict escalates, the project manager should help facilitate a satisfactory resolution. Conflict should be addressed early and usually in private, using a direct, collaborative approach. If disruptive conflict continues, increasingly formal procedures will need to be used, including the possible use of disciplinary actions.

The term “conflict” often carries negative connotations. Conflict is inevitable on most projects due to many factors:

Competing needs of stakeholders Competition for limited resources Limited power of the project manager

Unnecessary conflict can be avoided to some extent through:

Communication to stakeholders of project objectives, status, and changes

Clearly and separately assigned tasks

Examples of Sources of Conflict Personalities Cost Objectives Schedule Objectives

5- Execution Phase


Administrative procedures Project Priorities Limited Human Resources (Personnel) Technical Opinions

Conflict Resolution Approaches

Withdrawing / Avoiding: Retreating from the area of disagreement or postponing a decision that will likely cause conflict

Smoothing / Accommodating: Emphasizes areas of agreement, not differences of opinion

Compromising: Give and take approach that brings some degree of satisfaction to all parties

Forcing: Imposing one viewpoint at the expense of another Collaborating: Including multiple viewpoints from different

perspectives. Confronting / Problem Solving: identify the real problem, then

solve it

4. Issue log A written log should document persons responsible for resolving specific issues by a target date. The log helps the project team monitor issues until closure. Issue resolution addresses obstacles that can block the team from achieving its goals. These obstacles can include factors such as differences of opinion, situations to be investigated, and emerging or unanticipated responsibilities that need to be assigned to someone on the project team.

5. Interpersonal Skills High command on interpersonal skills is required from the project team to properly handling conflicts. Detailed skills are included in section 9.3.2 above, however the following ones are important to be applied to resolve team conflicts within the project: Leadership Influencing Decision making

5.5.3 Outputs of Manage Project Team

1- Enterprise environmental factors updates 2- Organizational process assets updates 3- Change requests 4- Project management plan updates

5- Execution Phase


5.6 Distribute Information

Effective Information Distribution Effective information distribution includes a number of techniques including:

Sender-receiver models

Choice of media

Writing style

Meeting management techniques

Presentation techniques

Facilitation techniques

Figure ‎5-12- Distribute Information Process


1.Project

management

plan

2.Performance

reports

3.Organizational

process assets

Inputs

1.Communication

methods

2. Information

Distribution tools

Tools &

Techniques

1.Organizational

process assets

updates

Outputs

Definition Distribute information is the process of making relevant information available to project stakeholders as planned.


5- Execution Phase


Process Interaction

Figure ‎5-13- Distribute Information – Process Interaction

5.6.1 Inputs to Distribute Information

1- Project management plan 2- Performance reports 3- Organizational process assets

5.6.2 Tools and Techniques for Distribute Information

1- Communication methods 2- Information Distribution tools

1. Communication methods To achieve the effective communication, the project team has to use all possible and available communication methods. This includes, but limited to:

Individual meetings

Group meetings

Video and audio conferences

Computer chats

Remote communication methods

5- Execution Phase


2. Information Distribution tools Project information can be distributed by many tools, including:

Project meetings

Hard-copy document distribution

Manual filing systems

Shared-access electronic databases

E-mail

Fax Voice mail

Telephone

Video

Web conferencing

Web publishing

Electronic tools for project management, such as Web interfaces to scheduling and project management software, meeting and virtual office support software, portals, and collaborative work management tools.

5.6.3 Outputs of Distribute Information

1- Organizational process assets updates

1. Organizational process assets updates The following documents may be updated as a result of this process:

Stakeholder notifications

Project reports

Project presentations

Project records

Feedback from stakeholders

Lessons learned documentation

5- Execution Phase


5.7 Manage Stakeholder Expectations

Proactive Approach Managing stakeholders is a proactive approach in the following perspectives:

Managing stakeholders expectations increase the chance of project acceptance

Proactively managing concerns before turning into issues

Resolve identified issues before they become concerns, problems and then disasters

Figure ‎5-14- Manage Stakeholder Expectations Process


Definition Manage stakeholder expectations is the process of communicating and working with stakeholders to meet their needs and addressing issues as they occur.


5- Execution Phase


Process Interaction

Figure ‎5-15- Manage Stakeholder Expectations – Process Interaction

5.7.1 Inputs to Manage Stakeholder Expectations

1. Stakeholder register 2. Stakeholder management strategy 3. Project management plan 4. Issue log 5. Change log 6. Organizational process assets

5.7.2 Tools and Techniques for Manage Stakeholder Expectations

1. Communication methods 2. Interpersonal skills 3. Management skills

1. Interpersonal Skills Managing stakeholders need applying interpersonal skills, like:

Building trust

Resolve conflicts

Active listening

5- Execution Phase


Overcoming resistance to change

5.7.3 Outputs of Manage Stakeholder Expectations

1- Organizational process assets updates 2- Change requests 3- Project Management plan updates 4- Project document updates

5- Execution Phase


5.8 Conduct Procurement

Figure ‎5-16 - Conduct Procurement Process


1.PM plan

2.Procurement

documents

3.Source selection

criteria

4.Qualified seller list

5.Seller proposals

6.Project documents

7.Make-or-buy

decisions

8.Teaming

agreements

9.Organizational PA

Inputs

1.Bidder

conferences

2.Proposal

evaluation

techniques

3. Independent

estimates

4.Expert judgment

5.Advertising

6. Internet search

7.Procurement

negotiations

Tools &

Techniques

1.Selected sellers

2.Procurement

contract award

3.Resource

calendars

4.Change

requests

5.Project

management

plan updates

6.Project

document

updates

Outputs

Definition Conduct Procurement is the process of obtaining seller responses, selecting a seller, and awarding a contract.


5- Execution Phase


Process Interaction

Figure ‎5-17- Conduct Procurement Data Flow

5.8.1 Inputs of Conduct Procurement

1- Project Management plan 2- Procurement documents 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

5.8.2 Tools and Techniques for Conduct Procurement

1- Bidder conferences 2- Proposal evaluation techniques 3- Independent estimates 4- Expert judgment 5- Advertising 6- Internet search 7- Procurement negotiations

1. Bidder Conferences Bidder conferences are meetings with prospective sellers prior to preparation of a bid or proposal. They are used to ensure that all prospective sellers have a clear, common understanding of the procurement. Responses to questions can be incorporated into the

5- Execution Phase


procurement documents as amendments. All potential sellers are given equal standing during this initial buyer and seller interaction to produce the best bid. 2. Proposal Evaluation Techniques Proposals are seller-prepared documents that describe the seller’s ability and willingness to provide the requested products, services, or results described in the procurement documentation. Proposals are prepared in accordance with the requirements of the relevant procurement documents and reflect the application of applicable contract principles. The seller’s proposal constitutes a formal and legal offer in response to a buyer’s request. After a proposal is formally submitted, the buyer sometimes requests the seller to supplement its proposals with an oral presentation. The oral presentation is meant to provide additional information with respect to the seller’s proposed staff, management proposal, and technical proposal, which can be used by the buyer in evaluating the seller’s proposal. Evaluation Criteria Evaluation criteria are developed and used to rate or score proposals. They can be Objective or subjective Evaluation criteria are often included as part of the procurement documents. Selection criteria can be identified and documented to support an assessment for a more complex product or service. Evaluation criteria can be as straightforward as price only. It can also be complex, based on ratings in several categories:

Demonstrated understanding of requirements

Management Approach

Technical capacity

Life cycle cost

Financial capacity (stability )

Project management capacity (Organizational pm maturity)

Past performance on similar projects Weighting System It is a method for quantifying qualitative data to minimize the effect of personal prejudice on seller selection. Most such systems involve assigning a numerical weight to each of the evaluation criteria, rating the prospective sellers on each criterion, multiplying the weight by the rating, and totaling the resultant products to compute an overall score. Weighting systems typically involve four steps:

Assign a numerical weight (percentage) to each of the evaluation criteria

Rate prospective sellers, or their proposal, on each criterion

Multiply the weight from step 1 by the rate from step 2 to derive the score for that criterion

5- Execution Phase


Add all scores from step 3 to derive the total score for each seller

Below is an example of an evaluation sheet that compares between two proposals:

Proposal 1 Proposal 2

Evaluation Criteria Weight Rating Score Rating Score

Demonstrated understanding of requirements

20%

Management Approach

Project management capacity (Organizational pm maturity)

Key human resource requirements

20%

Technical capacity

Skills

Knowledge

15%

Life cycle cost

Purchase price

Operating cost

20%

Financial capacity (stability )

10%

Past performance on similar projects

15%

Total 100 %

Table ‎5-1 - Weighting System

3. Independent Estimates The procuring organization can either prepare its own independent estimates or have prepared an independent estimate of the costs as a check on proposed pricing. This independent estimate is sometimes

5- Execution Phase


referred to as a Should-cost estimate. Significant differences from these cost estimates can be an indication that the contract statement of work was not adequate 4. Expert Judgment May include:

Multi-discipline review teams

Cross-functional discipline 5. Advertising Existing lists of potential sellers can often be expanded by placing advertisements in general circulation publications. Some government jurisdictions require public advertising of certain types of procurement items; most government jurisdictions require public advertising of pending government contracts. 6. Internet Search Internet is considered to be a very good source for small commodities procurement. It may not be appropriate for large projects where close monitoring is required. 7. Procurement Negotiations It clarifies the structure and requirements of the contract so that mutual agreement can be reached prior to signing the contract. The final contract language reflects all agreements reached. The subjects covered include:

Responsibilities and authorities

Applicable terms and law

Technical and business management approaches

Proprietary rights

Contract financing

Technical solution

Overall schedule

Payments and price.

5.8.3 Outputs of Conduct Procurement

1- Selected sellers 2- Procurement contract award 3- Resource calendars 4- Change requests 5- Project management plan updates 6- Project document updates

5- Execution Phase


Exercise ‎5-2 - Evaluation Criteria

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 5.2 –Evaluation Criteria Based on the provided case study; set evaluation criteria to select between the proposals. Use the format shown in the “Weighting System” section. Assign weight to each criterion, make sure that a total is 100%.

6- Monitor and Control Phase


6. Project Monitor and Control Phase

Nothing is easier than putting mice plans on paer and hanging project

schedules on the ealls. But the realy challenge is ensuring that these plans

are really implemented as the way they are planned. Control is needed to

ensure that all planned activeitoes hat are being executed ae really achieving

their planned tarher. This is the main functin of the following ten Monitor and

Control process group:

4.4 Monitor and Control Project Work 4.5 Perform Integrated Change Control 5.4 Verify Scope 5.5 Control Scope 6.6 Control Schedule 7.3 Control Costs 8.3 Perform Quality Control 10.5 Report Performance 11.6 Monitor and Control Risks 12.3 Administer Procurements



6.1 Monitor and Control Project Work

Monitoring is an aspect of project management performed throughout the project. Monitoring includes collecting, measuring and distributing performance information, and assessing measurements and trends to effect process improvements. The Monitor and Control Project Work process is concerned with:

Comparing actual project performance against the project management plan

Assessing performance to determine whether any corrective or preventive actions are indicated and then recommending those actions as necessary

Identifying new risks and analyzing, tracking, and monitoring existing project risks

Maintaining an accurate, timely information base concerning the project's product (s) and their associated documentation through project completion.

Provide information to support status reporting, progress measurement, and forecasting

Providing forecasts to update current cost and schedule information

Monitoring implementation of approved changes as they occur

Definition Monitor and Control Project Work is the process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan.




Figure ‎6-1- Monitor and Control Project Work Process


Process Interaction

Figure ‎6-2- Monitor and Control Project Work – Process Interaction

1.Project

management

plan

2.Performance

reports

3.Enterprise

environmental

factors

4.Organizational

process assets

Inputs

1.Expert judgment

Tools &

Techniques

1.Change

requests

2.Project

management

plan updates

3.Project

document

updates

Outputs



6.1.1 Inputs to Monitor and Control Project Work

1. Project management plan 2. Performance reports 3. Enterprise environmental factors 4. Organizational process assets

6.1.2 Tools and Techniques for Monitor and Control Project Work

1. Expert judgment

6.1.3 Outputs of Monitor and Control Project Work

1- Change requests 2- Project management plan updates 3- Project document updates

1. Change requests

Corrective action

Preventive action

Defect repair 2. Project management plan updates Not limited to:




Scope baseline

Schedule baseline

Cost performance baseline 3. Project document updates Not limited to:

Forecasts

Performance reports

Issue log



6.2 Perform Integrated Change Control

Change Management Activities

Influencing the factors that circumvent integrated change control so that only approved changes are implemented'

Reviewing analyzing and approving change requests promptly, which is essential, as a slow decision may negatively affect time, cost, or the feasibility of a change

Managing the approved changes

Maintaining the integrity of baseline by releasing only approved changes for incorporations into the project management plan and project documents.

Reviewing, approving, or denying all recommended corrective and preventive actions.

Coordinating changes across the entire project (e.g. a proposed schedule change will often affect cost, risk, quality and staffing)

Documenting the complete impact of change requests

Configuration Management Activities

Configuration identification

Configuration status accounting

Configuration verification and audit

Definition Perform Integrated Change Control is the process of reviewing all change requests, approving changes and managing changes to the deliverables, organizational process assets, project documents and the project management plan.




Figure ‎6-3- Perform Integrated Change Control Process


Process Interaction

Figure ‎6-4- Perform Integrated Change Control – Process Interaction

1.Project

management

plan

2.Work

performance

information

3.Change

requests

4.Enterprise

environmental

factors

5.Organizational

process assets

Inputs

1.Expert judgment

2.Change control

meetings

Tools &

Techniques

1.Change

requests

2.Project

management

plan updates

3.Project

document

updates

Outputs



6.2.1 Inputs to Perform Integrated Change Control

1. Project management plan 2. Work performance information 3. Change requests 4. Enterprise environmental factors 5. Organizational process assets

6.2.2 Tools and Techniques for Perform Integrated Change Control

1. Expert judgment 2. Change control meetings

6.2.3 Outputs of Perform Integrated Change Control

1. Change requests 2. Project management plan updates 3. Project document updates



6.3 Verify Scope

Verifying scope includes reviewing deliverables with the customer or sponsor to ensure that they are completed satisfactorily and obtaining formal acceptance of deliverables by the customer or sponsor. Verify scope does not happen only at the end of the project, but it is at the end of each phase and at the key milestones.

Figure ‎6-5- Verify Scope Process


6.3.1 Inputs to Verify Scope

1. Project management plan 2. Requirements documentation 3. Requirements traceability matrix 4. Validated deliverables

1.Project

management

plan

2.Requirements

documentation

3.Requirements

traceability

matrix

4.Validated

deliverables

Inputs

1. Inspection

Tools &

Techniques

1.Accepted

deliverables

2.Change

requests

3.Project

document

updates

Outputs

Definition Verify Scope is the process of formalizing acceptance of the completed project deliverables.




6.3.2 Tools and Techniques for Verify Scope

1. Inspection

1. Inspection This is the tool that includes activities such as measuring, examining, and verifying to determine whether work and deliverables meet requirements and product acceptance criteria. Inspections are sometimes called reviews, product reviews, audits and walkthroughs.

6.3.3 Outputs of Verify Scope

1- Accepted deliverables 2- Change requests 3- Project document updates

1. Accepted deliverables Deliverables that are signed off after passing the acceptance testing are documented and made ready to be used during the “Close Project or Phase” process. 2. Change requests Unaccepted deliverables for not meeting the acceptance criteria will be handled by issuing change requests. These change requests will be processed by further processes until the deliverable is accepted and signed off.

3. Project document updates Based on the verification process, some documents may be updated. These include, but not limited to the following documents:

Project budget

Project schedule

Scope statement

Requirement document

Different project plans



6.4 Control Scope

Controlling the project scope ensures all requested changes and recommended corrective or preventive actions are processed through the Perform Integrated Change Control process.

Figure ‎6-6- Control Scope Process


Scope Change Considerations While doing the scope change process, the following issues should be considered:

Will the request to change project scope affect the project schedule?

Will the request to change project scope affect the project cost?

Will the request to change project scope affect the project quality?

Is the total impact a significant change to the project overall?

What is the impact of no change?

1.Project

management

plan

2.Work

performance

information

3.Requirements

documentation

4.Requirements

traceability

matrix

5.Organizational

process assets

Inputs

1.Variance

analysis

Tools &

Techniques

1.Work

performance

measurements

2.Organizational

process assets

updates

3.Change

requests

4.Project

management

plan updates 5. Project document

updates

Outputs

Definition Control Scope is the process of monitoring the status of the project and product scope and managing changes to the scope baseline.




What are all the alternative methods of accommodating the requested change?

Does the individual requesting the scope change have the authority to approve resulting changes to project cost, schedule, quality, or other considerations?

6.4.1 Inputs to Control Scope

1. Project management plan 2. Work performance information 3. Requirements documentation 4. Requirements traceability matrix 5. Organizational process assets

1. Project Management Plan The Control Scope process will use different control information set in the different project plans. Below is some of this information.

Scope baseline

Scope management plan

Change management plan

Configuration management plan


6.4.2 Tools and Techniques for Control Scope

1. Variance analysis

1. Variance analysis Project performance measurements are used to assess the magnitude of variation from the original scope baseline. Important aspects of project scope include determining the cause and degree of variance relative to the scope baseline and deciding whether corrective or preventive action is required.

6.4.3 Outputs of Control Scope

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

1. Work performance measurements These are the measures that will determine if the deliverable is conformant with the acceptance criteria or not. Measures are normally in the form of variance analysis between the plan and the actual; these measures will be used to decide on the deliverable acceptance.



2. Organizational process assets updates Below are some examples of the organizational process assets that will be updated:

Cause of variance

Corrective actions chosen

Lessons learned

3. Change requests Analysis of the scope performance may result in change requests that will remedy the problem and bring back the scope into the baseline by issuing the proper change request that handles the cause of the problem. 4. Project management plan updates If the approved change request have an effect on the project scope, then the following baselines may be affected also and need to be considered (updated):

Cost baseline

Schedule baseline

WBS

WBS Dictionary 5. Project document updates Some project documents may need to be updated, including, but not limited to:

Requirements documents

Requirement traceability matrix

Scope Change Control System A scope change control system is used to define the procedures by which the project scope can be changed. It may include the paper work, tracking systems, and approval levels necessary for authorizing changes.

Figure ‎6-7- A Typical Change Management Process

Start

Raise Change

Control Form

Identify Change

Assess Priority

Assess Impact of

no Change

Assess Impact on

Cost (Resources)

Assess Impact on

Schedule

Assess Impact on

Quality

Propose Change to

the Baseline

Accepted

?

Urgent?

Negotiate Proposal

File the Change

End

Change the

Baseline

Implement Change

Yes

No

Yes

No



Exercise ‎6-1-Simulate Requirement Change

Exercise 6.1 – Simulate Requirement Change Based on the provided case study, simulate a change and complete a change request form. Consider the following information:

1. Customer 2. Project Name 3. Project Manager 4. Change Request Date 5. WBS Task Number 6. Change Request ID 7. Priority (1-low to 5-high) 8. Requested by: 9. Identified by: 10. Assigned to: 11. Description 12. Impact of no change 13. Estimated impact on cost, schedule, quality and others 14. Supporting documentation


Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________



6.5 Control Schedule

Figure ‎6-8- Control Schedule Process


1.Project

management

plan

2.Project

schedule

3.Work

performance

information

4.Organizational

process assets

Inputs

1.Performance

reviews

2.Variance

analysis

3.PM software

4.Resource

leveling

5.What-if analysis

6.Adjusting leads

and lags

7.Schedule

compression

8.Scheduling tool

Tools &

Techniques

1.Work

performance

measurements

2.Organizational

process assets

updates

3.Change

requests

4.PM plan

updates

5.Project

documents

updates

Outputs

Definition Control Schedule is the process of monitoring the status of the project to update project progress and manage changes to the schedule baseline.




Process Interaction

a

4.5 Perform

Integrated Change

Control

8.3 Perform

Quality Control

6.6 Control

Schedule

4.3 Direct and

Manage Project

Execution

4.2 Develop

Project

Management Plan

6.5 Develop

Schedule

`Project

Documents

Ø Project

management

plan

Ø Work performance

information

Ø Project Documents Updates

Ø Project schedule

Ø Schedule baseline


ØProject schedule

ØSchedule baseline

ØWork performance information




ØWork performance

measurements

ØChange requests


updates


updates


Ø Change requests

Ø Work performance

Ø measurements

Enterprise/

Organization

Ø Project

management

plan updates

Ø Organizational

Process assets

Ø Organizational process

assets updates

10.5 Report

Performance



Ø

Figure ‎6-9- Control Schedule– Process Interaction

6.5.1 Inputs to Control Schedule

1- Project management plan 2- Project schedule 3- Work performance information 4- Organizational process assets

6.5.2 Tools and Techniques for Control Schedule

1- Performance reviews 2- Variance analysis 3- PM software 4- Resource leveling 5- What-if analysis 6- Adjusting leads and lags 7- Schedule compression 8- Scheduling tool

1. Performance reviews

Performance Reviews measure, compare, and analyze schedule performance such as actual start and finish dates, percent complete, and remaining duration for work in progress. If earned value management (EVM) is utilized the schedule variance (SV) and schedule performance index (SPI) are used to assess the



magnitude of schedule variations. An important part of schedule control is to decide if the schedule variation requires corrective action or not.

2. Variance analysis Schedule performance measurements (SV, SPI) are used to assess the magnitude of variation to the original schedule baseline. The total float variance is also an essential planning component to evaluate project time performance. Important aspects schedule control include determining the cause and degree of variance relative to the schedule baseline and deciding whether corrective or preventive action is required.

Sample Tracking Chart

Figure ‎6-10- Schedule Valiance on Microsoft Project

6.5.3 Outputs of Control Schedule

1- Work performance measurements SV SPI

2- Organizational process assets updates Causes of variances Corrective action chosen and the reasons Other types of lessons learned from project schedule control

3- Change requests 4- PM plan updates 5- Project documents updates



6.6 Control Costs

Figure ‎6-11- Control Costs Process


1.Project

management

plan

2.Project funding

requirements

3.Work

performance

information

4.Organizational

process assets

Inputs

1.Earned value

management

2.Forecasting

3.To-complete

performance

index (TCPI)

4.Performance

reviews

5.Variance

analysis

6.Project

management

software

Tools &

Techniques

1.Work

Performance

measurements

2.Budget forecasts

3.Organizational

process assets

updates

4.Change

requests

5.PM plan

updates

6.Project

document

updates

Outputs

Definition Control Costs is the process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.




Process Interaction

Figure ‎6-12- Estimate Activity Resources – Process Interaction

Control Costs Objectives Cost control does not necessary mean cost reduction, rather ensuring that expenditures are done as planned. It includes the following:

Influencing the factors that create changes to the authorized cost baseline.

Ensuring that all change requests are acted on in a timely manner

Managing the actual changes when and as they occur

Ensuring that cost expenditures do not exceed the authorized funding, by period and in total for the project

Monitoring cost performance to isolate and understand variances from the approved cost baseline

Monitoring work performance against funds expended.

Preventing unapproved changes from being included in the reported cost or resource usage

Informing appropriate stakeholders of all approved changes and associated cost.

Acting to bring expected cost overruns within acceptable limits.

6.6.1 Inputs to Control Costs

1- Project management plan



2- Project funding requirements 3- Work performance information 4- Organizational process assets

6.6.2 Tools and Techniques for Control Costs

1- Earned value management 2- Forecasting 3- To-complete performance index (TCPI) 4- Performance reviews 5- Variance analysis 6- Project management software

1. Earned Value Management Earned Value management (EVM) in its various forms is a commonly used method of performance measurement. It integrates project scope, cost and schedule measures to help the project management team assess and measure project performance and progress. EVM develops and monitors three key dimensions for each work package and control account:

Planned value

Earned value

Actual cost

Schedule variance

Cost variance

Schedule performance index

Cost performance index

Earned Value Components

Planned Value (PV) – Old name was (BCWS)

Earned Value (EV) – Old name was (BCWP)

Actual Costs (AC) – Old name was (ACWP)

Budget at Completion (BAC)

Estimate at Completion (EAC)

Management Reserve (MR)

Schedule Variance (SV)

Cost Variance (CV)

Schedule Performance Index (SPI)

Cost Performance Index (CPI)

S Curve



Figure ‎6-13 - S Curve

Earned Value Variances

Cost Variance: CV = EV – AC Schedule Variance: SV = EV – PV

Figure ‎6-14 - Earned Value Diagram

AC= Actual Cost PV= Planned Value EV= Earned value BAC= Budget at Completion EAC= Estimate at Completion MR= Management Reserve

48

NOW

EAC

MRBAC

$$

Time

Contract Budget Base

PVAC

EV

NOW

EAC

MRBAC

$$

Time

Contract Budget Base

Cost Variance

Schedule VariancePV

AC

EV



Schedule Variance

Figure ‎6-15 - Schedule Variance

Cost Variance

Figure ‎6-16 - Cost Variance

Planned Value (PV) = $ 100

Earned Value (EV) = $ 100

SV = EV - PV

SV = 100 – 100 = $ 0

Today

$100Scheduled

Actual $200

SV= EV – PV

Actual Cost (AC) = $ 200

Earned Value (EV) = $ 100

CV = EV – AC

= 100 – 200 = $ -100

Today

$100Scheduled

Actual $200

CV= EV – AC



The 50 - 50 Rule

The 50 - 50 rule was established to overcome the problem of making subjective estimates of how far along we are on, say, a task. Upon beginning a task, charge 50% of its BCWS to its account. When the task is finally completed, charge the remaining 50% to its account.

Schedule Variance –Incomplete Tasks

Figure ‎6-17 - Schedule Variance, Incomplete Tasks

Cost Variance–Incomplete Tasks

Today:Earned Value (EV) = $ 50

Planned Value (PV) = $ 100

SV= EV – PV

50-100 = $ -50

Today

$100Scheduled

Actual

SV= EV - PV



Figure ‎6-18 - Cost Variance, Incomplete Tasks

Today:Earned Value (EV) = $ 50

Actual Cost of (AC) = $ 80

CV = EV – AC

50-80 = $ -30

Today

$100Scheduled

ActualExpected Cost to Complete is

$200

$80

Till today

CV = EV - AC



Multiple Tasks - Schedule Variance

Figure ‎6-19 - Schedule Variance, Multiple Tasks

Multiple Tasks - Cost Variance

Figure ‎6-20 - Cost Variance, Multiple Tasks

EV = $ 1,200

PV = - $ 1,000

SV = $ 200

Today

$300

$700

$200

Scheduled

Actual

SV= EV - PV

EV = $ 1,200

AC = - $ 850

CV = $ 350

Today

$300

$700

$200

Scheduled

Actual

$350

$400

$100

CV = EV - AC



The Four Quadrants

Figure ‎6-21 - The Four Quadrants

Earned Value Equations

Table ‎6-1 - Earned Value Parameters

+CV

+SV

-CV

+SV

+CV

-SV

-CV

-SV

Under Over

Ahead

Behind

Schedule

Budget

Term Equation Indicates

Schedule Variance SV = EV - PV Good if >=0

Cost Variance CV = EV - AC Good if >=0

Schedule Performance Index SPI = EV/PV Good if >=1

Cost Performance Index CPI = EV/AC Good if >=1

Estimate at Completion EAC = BAC/CPI Actual cost

Estimate to Complete ETC = EAC – AC How much more will

be spent

Variance at Completion VAC = BAC - EAC Good if >=0



Exercise ‎6-2-Schedule & Cost Variance

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 6.2 – Schedule & Cost Variance

For the above example, calculate the Schedule & Cost Variances, Assume 50-50 approach



2. Forecasting Estimate at completion (EAC) that may differ from the budget at completion (BAC) based on the project performance as follows:

EAC forecast for ETC work performed at the budget rate o EAC=AC+(BAC-EV)

EAC forecast for ETC work performed at the present CPI o EAC=BAC/Cumulative CPI

EAC forecast for ETC work considering both SPI and CPI factors o EAC=AC+[(BAC-EV)/(cumulative CPI X cumulative SPI)]

3. To-Complete Performance Index (TCPI) The “To-Complete performance index” (TCPI) is the calculated projection of cost performance that must be achieved on the remaining work to meet a specified management goal, such as the BAC or the EAC as follows:

Equation for the TCPI based on the BAC: o TCPI= (BAC-EV) / (BAC-AC)

Equation for the TCPI based on the EAC: o TCPI= (BAC-EV) / (EAC-AC)

4. Performance Reviews Reviewing the project performance is done through the following:

Variance analysis

Trend analysis

Earned value performance

5. Variance Analysis Cost performance measurements (CV, CPI) are used to assess the magnitude of variation to the original cost baseline.



6. Project Management Software

Figure ‎6-22 - MS Project Showing Earned Value

6.6.3 Outputs of Estimate Control Costs

1. Work Performance measurements 2. Budget forecasts 3. Organizational process assets updates 4. Change requests 5. PM plan updates 6. Project document updates



6.7 Perform Quality Control

Figure ‎6-23- Estimate Activity Resources Process


1.Project

management

plan

2.Quality metrics

3.Quality

checklists

4.Work

performance

measurements

5.Approved

change requests

6.Deliverables

7.Organizational

process assets

Inputs

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

Tools &

Techniques

1.Quality control

measurements

2.Validated changes

3.Validated

deliverables

4.Organizational

process assets

updates

5.Change requests

6.PM plan updates

7.Project document

updates

Outputs

Definition Perform Quality Control is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.




Process Interaction

4.2 Develop

Project

Management Plan

8.3 Perform Quality

Control

Enterprise /

Organization

8.1 Plan Quality

`

Project

DocumentsUpdates

4.5 Perform

Integrated Change

Control

5.4 Verify Scope

Ø Organizational process assets

Ø Quality checklists

Ø Quality metrics


ØQuality checklists

ØQuality metrics


ØDeliverables

ØApproved change requests

ØWork performance measurements



ØQuality control measurements

ØValidated deliverables

ØChange requests


updates

ØValidated changes



updates

4.2 Develop

Project

Management Plan

4.3 Direct and

Manage Project

Execution

4.5 Perform

Integrated Change

Control

8.2 Perform Quality

Assurance

Ø Quality

management plan

Ø Deliverables

Ø Quality control

measurements

Ø Change requests

Ø Project

management plan

updates

5.5 Control Scope6.6 Control

Schedule 7.3 Control Cost

Ø Approved change requests

Ø Organizational process assets updates

Ø Work performance measurements

Ø Validated changes

Ø Project document

updates

Ø Validated

deliverables



Ø

Figure ‎6-24- Perform Quality Control – Process Interaction

6.7.1 Inputs to Perform Quality Control

1- Project management plan 2- Quality metrics 3- Quality checklists 4- Work performance measurements 5- Approved change requests 6- Deliverables 7- Organizational process assets

6.7.2 Tools and Techniques for Perform Quality Control

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



1. Cause and Effect Diagrams Also called:

Ishikawa

Fishbone

Root Cause.

Figure ‎6-25- Cause and Effect Diagram



Exercise ‎6-3 - Fishbone Diagram

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 6.3 – Fishbone Diagram A recent report shows that your organization’s customers are moving to another competitor in increasing rate. You have been assigned the task to study and address this problem to achieve two objectives: 1. Analyze the problem 2. Identify the root cause of the problem 3. Suggest the solution roadmap. Use the fishbone diagram to help you identify the root cause of the problem



2. Control Charts It is used to determine whether or not a process is stable or has predictable performance. It serves as a data gathering tool to show when a process is subject to special cause variation, which creates an out-of-control condition. Illustrate how a process behaves over time. Below are the main attributes of the control charts:

Figure ‎6-26- Control Chart - Stable Process

Process Stability A process is said to be in control of they:

The measures are within the acceptable limits, between the UCL and LCL

Less than 7 consecutive points exist on one side of the mean



Figure ‎6-27- Control Chart - Unstable Process

3. Flowcharting Flowcharting helps to analyze how problems occur. A flowchart is a graphical representation of a process. There are many styles, but all process flowcharts show activities, decision points, and the order of processing. Flowcharts show how various elements of a system interrelate.

Figure ‎6-28Flow Chart



4. Histogram A histogram is a bar chart showing a distribution of variables. Each column represents an attribute or characteristic of a problem/situation. The height of each column represents the relative frequency of the characteristic. This tool helps identify the cause of problems in a process by the shape and width of the distribution.

Figure ‎6-29- Histogram

5. Pareto Chart A Pareto chart is a specific type of histogram. It is ordered by frequency of occurrence, which shows how many defects were generated by type or category of identified cause. The Pareto technique is used primarily to identify and evaluate nonconformities.

0

10

20

30

40

50

60

70

80

90

Unit Integrate System Accept

Defects



Figure ‎6-30- Pareto Diagram

6. Run Chart A run chart shows the history and pattern of variation. A run chart is a line graph that shows data points plotted in the order in which they occur. Run charts show trends in a process over time, variation over time, or declines or improvements in a process over time. Trend analysis is performed using run charts. Trend analysis involves using mathematical techniques to forecast future outcomes based on historical results. 7. Scatter Diagram A scatter diagram shows the pattern of relationship between two variables. This tool allows the quality team to study and identify the possible relationship between changes observed in two variables. Dependent variables versus independent variables are plotted. The closer the points are to a diagonal line, the more closely they are related.

Cumulative

PercentagePercent

of

Defective

Cases

Number

of

Defective

Cases

Frequency by Cause

Improper

Rotation

Noise Wobble Pressure Axle

Caulking

Case

Wobbles

Other

00

25

50

75

100

10

20

30

40

Car Problems



Figure ‎6-31- Scattered Diagram

8. Statistical Sampling Statistical sampling involves choosing part of a population of interest for inspection. Appropriate sampling can often reduce the cost of quality control. There is a substantial body of knowledge on statistical sampling; in some application areas, it may be necessary for the project management team to be familiar with a variety of sampling techniques. 9. Inspection An inspection is the examination of a work product to determine whether it conforms to standards. Generally, the results of an inspection include measurements. Inspections can be conducted at any level. Inspections are also used to validate defect repairs.

6.7.3 Outputs of Perform Quality Control

1- Quality control measurements 2- Validated changes 3- Validated deliverables 4- Organizational process assets updates 5- Change requests 6- PM plan updates 7- Project document updates



Exercise 6-4 - Quality Control Activities

Your Notes

_________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Exercise 6.4 – Quality Control Activities For the case study provided by the instructor, identify some activates that you need to perform to control the project quality.



6.8 Report Performance

Audience Performance reports need to provide information at an appropriate level for each audience. The format may range from a simple status report might show performance information, such as percent compete, or status dashboards for each area. More elaborate reports may include:

Analysis of past performance

Current Status of risks and issues

Work completed during the period

Work to be completed next

Summary of changes approved in the period

Other relevant information which must be reviewed and discussed

Figure ‎6-32- Report Performance Process


1.PM plan

2.Work

performance

information

3.Work

performance

measurements

4.Budget

forecasts

5.Organizational

process assets

Inputs

1.Variance

analysis

2.Forecasting

methods

3.Communication

methods

4.Reporting

systems

Tools &

Techniques

1.Performance

reports

2.Organizational

process assets

updates

3.Change

requests

Outputs

Definition Report Performance is the process of collecting and distributing performance information, including status reports, progress information and forecasts.




Process Interaction

Figure ‎6-33- Report Performance – Process Interaction

6.8.1 Inputs to Report Performance

1. Project management plan 2. Work performance information 3. Work performance measurements 4. Budget forecasts 5. Organizational process assets

6.8.2 Tools and Techniques for Report Performance

1. Variance analysis 2. Forecasting methods 3. Communication methods 4. Reporting systems

1. Variance analysis The variance represents the “After-the-fact” look of what caused the difference between the planned and actual. Analyzing the variance involves the following:

Verify the quality of collected information

Determine the variance between the baseline and the actual



Determine the impact of the variance

2. Forecasting methods

Time series method

Casual / econometric method

Judgmental method

Simulation

Probabilistic forecasting

Ensemble forecasting

6.8.3 Outputs of Report Performance

1. Performance reports 2. Organizational process assets updates 3. Change requests



Group Discussion ‎6-1 - Paper Tower

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Group Activity – 6.1 Paper Tower In a group activity, use the material provided by the instructor to build a paper tower. The winning team will be the one with the tower with the following specifications: 1- Highest in length 2- Strongest Team members must build the tower without talking; only signs and body language should be used.



Group Discussion ‎6-2 - Telephone Casse

Your Notes _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________ _________________________________________________________________________

Group Activity – 6.2 – Telephone Casse A message, that will be provided by the instructors, cross the class, should be passed through the students from to the other in whisper. The objective is to see how much distortion will happen to the message between the starting point to the final point.



6.9 Monitor and Control Risks

Figure ‎6-34- Monitor and Control Risks Process


1.Risk register

2.Project

management

plan

3.Work

performance

information

4.Performance

reports

Inputs

1.Risk

reassessment

2.Risk audits

3.Variance and

trend analysis

4.Technical

performance

measurement

5.Reserve

analysis

6.Status meetings

Tools &

Techniques

1.Risk register

updates

2.Organizational

process assets

updates

3.Change

requests

4.Project

management

plan updates

5.Project

document

updates

Outputs

Definition Monitor and Control Risks is the process of:

Implementing risk response plans

Tracking identified risks

Monitoring residual risks

Evaluating risk process effectiveness through the project




Process Interaction

Figure ‎6-35- Monitor and Control Risks – Process Interaction

6.9.1 Inputs to Monitor and Control Risks

1. Risk register 2. Project management plan 3. Work performance information 4. Performance reports

6.9.2 Tools and Techniques for Monitor and Control Risks

1. Risk reassessment 2. Risk audits 3. Variance and trend analysis 4. Technical performance measurement 5. Reserve analysis 6. Status meetings

1. Risk Reassessment Risk Monitoring and Control often requires identification of new risks and reassessment of risks. Project risk reassessments should be regularly scheduled. Project Risk Management should be an agenda item at project team status meetings.



2. Risk Audits Risk audits examine and document the effectiveness of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process.

3. Variance And Trend Analysis Trends in the project’s execution should be reviewed using performance data. Earned value analysis and other methods of project variance and trend analysis may be used for monitoring overall project performance.

4. Technical Performance Measurement Technical performance measurement compares technical accomplishments during project execution to the project management plan’s schedule of technical achievement. Deviation, such as demonstrating more or less functionality than planned at a milestone, can help to forecast the degree of success in achieving the project’s scope.

5. Reserve Analysis Throughout execution of the project, some risks may occur, with positive or negative impacts on budget or schedule contingency reserves. Reserve analysis compares the amount of the contingency reserves remaining to the amount of risk remaining at any time in the project, in order to determine if the remaining reserve is adequate.

6. Status Meetings Project risk management can be an agenda item at periodic status meetings. That item may take no time or a long time, depending on the risks that have been identified, their priority, and difficulty of response. Risk management becomes easier the more often it is practiced, and frequent discussions about risk make talking about risks, particularly threats, easier and more accurate.

6.9.3 Outputs of Monitor and Control Risks

1. Risk register updates 2. Organizational process assets updates 3. Change requests 4. Project management plan updates 5. Project document updates

1. Risk register updates This includes the outcomes of the risk reassessments, risk audits, and periodic risk reviews. These outcomes may include updates to:

Probability

Impact

Priority



Response plans

Ownership

Other elements of the risk register. Outcomes can also include closing risks that are no longer applicable. 2. Organizational process assets updates Implementing contingency plans or workarounds frequently results in a requirement to change the project management plan to respond to risks. Requested changes are prepared and submitted to the Integrated Change Control process as an output of the Risk Monitoring and Control process. Approved change requests are issued and become inputs to the Direct and Manage Project Execution process and to the Risk Monitoring and Control process. 3. Change Requests This includes contingency plans and workaround plans. The latter are responses that were not initially planned, but are required to deal with emerging risks that were previously unidentified or accepted passively. Workarounds should be properly documented. Recommended corrective actions are inputs to the Integrated Change Control process 4. Project management plan updates Recommended preventive actions are used to bring the project into compliance with the project management plan. 5. Project document updates The six Project Risk Management processes produce information that can be used for future projects, and should be captured in the organizational process assets. The templates for the risk management plan, including the probability and impact matrix, and risk register, can be updated at project closure. Risks can be documented and the RBS updated. Lessons learned from the project risk management activities can contribute to the lessons learned knowledge database of the organization. Data on the actual costs and durations of project activities can be added to the organization’s databases. The final versions of the risk register and the risk management plan templates, checklists, and RBSs are included.



6.10 Administer Procurements

During this process, both the buyer and the seller will administer the procurement contract for similar purposes. Each must ensure that both parties meet their contractual obligations and that their own legal rights are protected.

Figure ‎6-36 -Procurements Process


1.Procurement

documents

2.Project

management

plan

3.Contract

4.Performance

reports

5.Approved

change requests

6.Work

performance

information

Inputs

1. Contract change

control system

2. Procurement

performance

reviews3. Inspections and

audits

4. Performance

reporting

5. Payment systems 6. Claims

administration

7. Records

management

system

Tools &

Techniques

1.Procurement

documentation

2.Organizational

process assets

updates

3.Change

requests

4.Project

management

plan updates

Outputs

Definition Administer Procurements is the process of:

Managing procurement relationships

Monitoring contract performance




Process Interaction

Figure ‎6-37- Administer Procurements – Process Interaction

6.10.1 Inputs to Administer Procurements

1- Procurement documents 2- Project management plan 3- Contract Performance reports 4- Approved change requests 5- Work performance information

6.10.2 Tools and Techniques for Administer Procurements

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

1. Contract Change Control System A contract change control system defines the process by which the contract can be modified. It includes the paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes. The contract change control system is integrated with the integrated change control system.



2. Procurement Performance Reviews A procurement performance review is a structured review of the seller’s progress to deliver project scope and quality, within cost and on schedule, as compared to the contract. It can include a review of seller-prepared documentation and buyer inspections, as well as quality audits conducted during seller’s execution of the work. The objective of a performance review is to identify performance successes or failures, progress with respect to the contract statement of work, and contract non-compliance that allows the buyer to quantify the seller’s demonstrated ability or inability to perform work. 3. Inspections And Audi Inspections and audits required by the buyer and supported by the seller as specified in the contract documentation, can be conducted during execution of the project to identify any weaknesses in the seller’s work processes or deliverables. If authorized by contract, some inspection and audit teams can include buyer procurement personnel. 4. Performance Reporting Performance reporting provides management with information about how effectively the seller is achieving the contractual objectives. Contract performance reporting is integrated into performance reporting. 5. Payment Systems Payments to the seller are usually handled by the accounts payable system of the buyer. On larger projects with many or complex procurement requirements, the project can develop its own payment system. In either case, the payment system includes appropriate reviews and approvals by the project management team, and payments are made in accordance with the terms of the contract. 6. Claims Administration Contested changes and constructive changes are those requested changes, where the buyer and seller cannot agree on compensation for the change, or cannot agree that a change has even occurred. These contested changes are variously called claims, disputes, or appeals. 7. Records Management System A records management system is a specific set of processes, related control functions, and automation tools that are consolidated and combined into a whole, as part of the project management information system.

6.10.3 Outputs of Administer Procurements

1. Procurement documentation



2. Organizational process assets updates 3. Change requests 4. Project management plan updates

1. Procurement Documentation Procurement documentation includes, but is not limited to, the contract, along with all supporting schedules, requested unapproved contract changes, and approved change requests. 2. Organizational Process Assets Updates Below are the main items of the Organizational Process Assets that may be updated during this process:

Correspondence

Payment Schedules and requests

Seller performance evaluation documentation 3. Change Requests Change requests need to be tracked and monitored. Before changes are made, they should be complaints with what has been defined in the procurement management plan. Once they are approved, changes to the baselines should be done. 4. Project Management Plan Updates Procurement management plan: The procurement management plan is updated to reflect any approved change requests that affect procurement management. Contract management plan: Each contract management plan is updated to reflect any approved change requests that affect contract administration.

7- Close Out Phase


7. Project Closing Phase

Although, at this point of time, the project technically is finished, but many

loop holes will always remain and need to be closed out. This is the objectives

of the following two Close Out process group:

4.6 Close Project or Phase 12.4 Close Procurements

7- Close Out Phase


7.1 Close Project or Phase

Figure ‎7-1- Close Project or Phase Process


1.Project

management

plan

2.Accepted

deliverables

3.Organizational

process assets

Inputs

1.Expert judgment

Tools &

Techniques

1.Final product,

service, or

result transition

2.Organizational

process assets

updates

Outputs

Definition Close Project or Phase is the process of finalizing all project activities across all the project management process groups to formally complete the project or phase.


7- Close Out Phase


Process Interaction

Figure ‎7-2- Close Project or Phase – Process Interaction

7.1.1 Inputs to Close Project or Phase

1. Project management plan 2. Accepted deliverables 3. Organizational process assets

7.1.2 Tools and Techniques for Close Project or Phase

1. Expert judgment

7.1.3 Outputs of Close Project or Phase

1. Final product, service, or result transition 2. Organizational process assets updates

7- Close Out Phase


Exercise ‎7-1 - Develop Project Management Process

Exercise 7.1 – Develop Project Management Process Based on the PMI project management process group, suggest the project management methodology for your organization.

7- Close Out Phase


7.2 Close Procurement

Figure ‎7-3- 6.5 Close Procurement Process


1.Project

management

plan

2.Procurement

documentation

Inputs

1.Procurement

audits

2.Negotiated

settlements

3.Records

management

system

Tools &

Techniques

1.Closed

Procurements

2.Organizational

process assets

updates

Outputs

Definition Close Procurements is the process of completing each project procurement.


7- Close Out Phase


Process Interaction

Figure ‎7-4- Close Procurement Data Flow

7.2.1 Inputs to Close Procurement

1. Project management plan 2. Procurement documentation

7.2.2 Tools and Techniques for Close Procurement

1. Procurement audits 2. Negotiated settlements 3. Records management system

1. Procurement Audits A procurement audit is a structured review of the procurement process from the Plan Purchases and Acquisitions process through Contract Administration. 2. Negotiated Settlements

7- Close Out Phase


Negotiate the final settlement of all outstanding issues. Whenever settlement by negotiations is not reached, other means (Alternative Dispute Resolutions ADR) may be chosen, like:

Mediation

Arbitration

7.2.3 Outputs of Close Procurement

1. Closed Procurements 2. Organizational process assets updates

Appendix 1 – Case Study


8. Appendix-1 Case Study

Your organization is considering the installation of a new generation of General Packet Radio Services (GPRS) system as an upgrade to the existing services. This upgrade is meant to provide better and faster services that will highly position the company against the competition. The engineering department has submitted a project proposal that estimates the investment requirements as follows: an initial investment of $80,000 to be paid up-front, an additional investment of $30,000 to install servers and applications, and another $20,000 to integrate with the existing system. These payments will be for these three milestones over three years from the project start. Delivery and installation is estimated to take one year, and integrating the entire system should require an additional year. Thereafter, the engineers predict that scheduled equipment maintenance and licenses fees will require further expenditures of about $10,000 every second year, beginning in the fourth year. They will not, however, pay these fees in the last year of its life. The proposed schedule is to begin production in the third year and to up-to-speed by the end of that year. Projected revenue is estimated to be $50,000 in the first year of operation and are expected to peak at $120,000 in the second year of operation, and then to 115,000 – 105,000 – 97,000 – 90,000 – 82,000 – 65,000 in the following years. Equipment life is expected to be 10 years from project inception, at which time the proposed system will be obsolete and will have to be replaced. It is estimated that the machinery will have a salvage value of $35,000. Below are some factors that need to be considered:

1. This is a new technology to your organization 2. Extensive training is needed by both the technical team who will

install and support the system as well as the customer service team 3. It is not known if the existing billing system supports this new

upgrade or not. 4. The competition is about to start the same project soon

Appendix 2 – Exercise Forms


9. Appendix-2 Exercise Forms

9.1 Project Charter

Customer

Project Name

Project Description

Project Manager:

Name and

Authority Level

Business Need

Issued By Manager



9.2 Scope Statement

Customer

Project Name

Project Manager

Business Need

(project

justification)

Summary of

Product Description

Deliverables

(list of summary-

level sub products)

Project Risks

Objectives

(cost, schedule,

quality measures,

other)



9.3 Assumption List

No. Area Assumption



9.4 Work Breakdown Structure

No Outline No. WBS Item



9.5 Activity List, Resource Assignment, Dependency & Time Estimate

No Outline No.

Activity Resources Dependency Duration



9.6 Quality Management Plan

Quality Approach & Standards

Quality Assurance Process

Quality Control Process

Test & Acceptance Approach



9.7 Risk Analysis

No Risk Probability Impact Overall Impact

1

2

3

4

5

6

7

8

9

10



9.8 Risk Analysis

No Risk Prob. Impact Overall Impact

Strategy Mitigation Plans

Contingency Plans

1

2

3

4

5



9.9 Change Control

Customer

Project Name

Project Manager

Change Request Date

WBS Task Number

Change Request ID

Priority (1-low to 5-high)

Requested by:

Identified by:

Assigned to:

Description

Impact of no change

Estimated impact on cost

Estimated impact on

Schedule

Estimated impact to

quality

Other impacts

Supporting documentation

Appendix 3 – List of Figures


10. Appendix-3 List of Figures

Figure 2-1- Functional Origination .......................................................................... 15

Figure 2-2- Weak Matrix Origination ...................................................................... 16 Figure 2-3- Strong Matrix Origination ..................................................................... 17

Figure 2-4- Balanced Matrix Origination ................................................................ 17 Figure 2-5- Projectized Origination ......................................................................... 18

Figure 2-6- Project Life Cycle .................................................................................. 19

Figure 2-7- Management Project Life Cycle ......................................................... 19

Figure 2-8- Project Process Groups ....................................................................... 20 Figure 2-9- Project Process Groups Interaction ................................................... 21

Figure 2-10- Process Group Overlapping ............................................................. 21 Figure 2-11- Initiating Process Group .................................................................... 24 Figure 2-12- Planning Process Group ................................................................... 25

Figure 2-13- Executing Process Group ................................................................. 26 Figure 2-14- Monitor and Control Process Group ................................................ 27

Figure 2-15- Closing Process Group ..................................................................... 28

Figure 2-16- Project Management Process Interaction ...................................... 28

Figure 3-1- Develop Project Charter Process ....................................................... 30

Figure 3-2 - Develop Project Charter – Process Interaction .............................. 31

Figure 3-3- Identify Stakeholders Process ............................................................ 35

Figure 3-4 Identify Stakeholders – Process Interaction ...................................... 36

Figure 3-5 Power / Interest Grid.............................................................................. 37

Figure 4-1 - Develop Project Management plan Process ................................... 41

Figure 4-2 Develop Project Management plan – Process Interaction .............. 42

Figure 4-3- Collect Requirements Process ........................................................... 45 Figure 4-4- Define Scope Process ......................................................................... 51 Figure 4-5- Create WBS Process ........................................................................... 58

Figure 4-6- Example of WBS ................................................................................... 59 Figure 4-7- Define Activities Process ..................................................................... 63

Figure 4-8- Define Activities – Process Interaction .............................................. 64

Figure 4-9 - Sequence Activities Process ............................................................. 69

Figure 4-10- Sequence Activities – Process Interaction ..................................... 70

Figure 4-11- Precedence Diagram (Activity on the node) .................................. 71 Figure 4-12- Activity on the arrow ........................................................................... 71

Figure 4-13- Task Dependencies ........................................................................... 72 Figure 4-14- Lag Time .............................................................................................. 74

Figure 4-15- Lead Time ............................................................................................ 74

Figure 4-16- Estimate Activity Resources Process ............................................. 75

Figure 4-17- Estimate Activity Resources – Process Interaction ...................... 76 Figure 4-18- Estimate Activity Durations Process ............................................... 80 Figure 4-19- Estimate Activity Duration – Process Interaction .......................... 81

Figure 4-20- 6.5 Develop Schedule Process ..................................................... 85 Figure 4-21- Develop Schedule – Process Interaction ....................................... 86

Figure 4-22- Resource Leveling ............................................................................. 91



Figure 4-23- Estimate Costs Process .................................................................... 94

Figure 4-24- Estimate Costs – Process Interaction ............................................. 95 Figure 4-25 - Determine Budget Process ............................................................ 100

Figure 4-26- Determine Budget – Process Interaction ...................................... 101 Figure 4-27- Project Funding Requirements ....................................................... 103 Figure 4-28- Plan Quality Process ....................................................................... 104

Figure 4-29- Plan Quality – Process Interaction ................................................ 105

Figure 4-30- Control Chart ..................................................................................... 112

Figure 4-31- Flow Chart ......................................................................................... 113 Figure 4-32- Develop Human Resource Plan Process ..................................... 117

Figure 4-33- Develop Human Resource Plan – Process Interaction ............. 118 Figure 4-34 - Develop Human Resource Plan Process .................................... 119 Figure 4-35- Organization Charts and Position Descriptions ........................... 120

Figure 4-36- Develop Human Resource Plan – Process Interaction ............. 121 Figure 4-37 - Plan Communications Process ..................................................... 123

Figure 4-38 Plan Communications – Process Interaction ................................ 124 Figure 4-39- Sender / Receiver Model ................................................................. 126

Figure 4-40- Plan Risk Management Process .................................................... 129 Figure 4-41 - Plan Risk Management – Process Interaction ........................... 130

Figure 4-42 - Identify Risks Process .................................................................... 134

Figure 4-43 Identify Risks – Process Interaction ............................................... 134

Figure 4-44- Perform Qualitative Risk Analysis Process .................................. 139

Figure 4-45- Perform Qualitative Risk Analysis – Process Interaction ........... 140 Figure 4-46- Probability and Impact Matrix ......................................................... 141

Figure 4-47- Qualitatively Sorted Risks ............................................................... 142 Figure 4-48- Perform Quantitative Risk Analysis Process ............................... 144 Figure 4-49- Perform Quantitative Risk Analysis – Process Interaction ........ 145

Figure 4-50- Probability distributions.................................................................... 146 Figure 4-51- Quantitatively Sorted Risks ............................................................. 147

Figure 4-52- Plan Risk Responses Process ....................................................... 149 Figure 4-53- Plan Risk Responses – Process Interaction ................................ 150

Figure 4-54- Plan Procurements Process ........................................................... 155

Figure 4-55- Plan Procurements Data Flow ....................................................... 156

Figure 5-1- Direct and Manage Project Execution Process ............................. 168

Figure 5-2- Direct and Manage Project Execution – Process Interaction ...... 169 Figure 5-3 - Perform Quality Assurance Process .............................................. 172

Figure 5-4- Perform Quality Assurance– Process Interaction ......................... 173 Figure 5-5 - Sequence Activities Process ........................................................... 176

Figure 5-6- Acquire Project Team – Process Interaction ................................. 177

Figure 5-7- Develop Project Team Process ........................................................ 180

Figure 5-8- Develop Project Team – Process Interaction ................................. 181 Figure 5-9- Maslow’s Hierarchy of Needs ........................................................... 185

Figure 5-10- Manage Project Team Process ...................................................... 187

Figure 5-11- Manage Project Team – Process Interaction ............................... 188 Figure 5-12- Distribute Information Process ....................................................... 191

Figure 5-13- Distribute Information – Process Interaction ................................ 192 Figure 5-14- Manage Stakeholder Expectations Process ................................ 194

Figure 5-15- Manage Stakeholder Expectations – Process Interaction ......... 195



Figure 5-16 - Conduct Procurement Process ..................................................... 197

Figure 5-17- Conduct Procurement Data Flow ................................................... 198 Figure 6-1- Monitor and Control Project Work Process .................................... 205

Figure 6-2- Monitor and Control Project Work – Process Interaction ............. 205 Figure 6-3- Perform Integrated Change Control Process ................................. 208 Figure 6-4- Perform Integrated Change Control – Process Interaction .......... 208

Figure 6-5- Verify Scope Process ......................................................................... 210

Figure 6-6- Control Scope Process ...................................................................... 212

Figure 6-7- A Typical Change Management Process ....................................... 214 Figure 6-8- Control Schedule Process ................................................................. 216

Figure 6-9- Control Schedule– Process Interaction ........................................... 217 Figure 6-10- Schedule Valiance on Microsoft Project ....................................... 218 Figure 6-11- Control Costs Process ..................................................................... 219

Figure 6-12- Estimate Activity Resources – Process Interaction .................... 220 Figure 6-13 - S Curve ............................................................................................. 222

Figure 6-14 - Earned Value Diagram ................................................................... 222 Figure 6-15 - Schedule Variance .......................................................................... 223

Figure 6-16 - Cost Variance .................................................................................. 223 Figure 6-17 - Schedule Variance, Incomplete Tasks ........................................ 224

Figure 6-18 - Cost Variance, Incomplete Tasks ................................................. 225

Figure 6-19 - Schedule Variance, Multiple Tasks .............................................. 226

Figure 6-20 - Cost Variance, Multiple Tasks ....................................................... 226

Figure 6-21 - The Four Quadrants ....................................................................... 227 Figure 6-22 - MS Project Showing Earned Value .............................................. 230

Figure 6-23- Estimate Activity Resources Process ........................................... 231 Figure 6-24- Perform Quality Control – Process Interaction ............................ 232 Figure 6-25- Cause and Effect Diagram .............................................................. 233

Figure 6-26- Control Chart - Stable Process ...................................................... 235 Figure 6-27- Control Chart - Unstable Process .................................................. 236

Figure 6-28Flow Chart ............................................................................................ 236 Figure 6-29- Histogram .......................................................................................... 237

Figure 6-30- Pareto Diagram ................................................................................. 238

Figure 6-31- Scattered Diagram ........................................................................... 239

Figure 6-32- Report Performance Process ......................................................... 241

Figure 6-33- Report Performance – Process Interaction .................................. 242 Figure 6-34- Monitor and Control Risks Process ............................................... 246

Figure 6-35- Monitor and Control Risks – Process Interaction ........................ 247 Figure 6-36 -Procurements Process .................................................................... 250

Figure 6-37- Administer Procurements – Process Interaction ......................... 251

Figure 7-1- Close Project or Phase Process ...................................................... 255

Figure 7-2- Close Project or Phase – Process Interaction ............................... 256 Figure 7-3- 6.5 Close Procurement Process ...................................................... 258

Figure 7-4- Close Procurement Data Flow ......................................................... 259

Appendix 4 – List of Tables


11. Appendix-4 List of Tables

Table 2-1- Comparative Overview ............................................................................ 9 Table 2-2- Organizational Influence on Projects .................................................. 18

Table 2-3- Project Management Process Groups and Knowledge Area Mapping ...................................................................................................................... 23

Table 4-1 - Estimate Accuracy ................................................................................ 96

Table 4-2- Statistical Quality Control Terms ....................................................... 108

Table 4-3- Cost Conformance ............................................................................... 110 Table 4-4- Human Resource Management Process Mapping ......................... 120

Table 4-5 - Reasons to Make over Buy ............................................................... 157 Table 4-6 - Fixed Price Contract ........................................................................... 160 Table 4-7 - Cost Reimbursable Contract ............................................................. 161

Table 4-8 - Time and Material Contract ............................................................... 162

Table 4-9 - Comparison of Procurement Documents Types ............................ 164

Table 5-1 - Weighting System ............................................................................... 200

Table 6-1 - Earned Value Parameters ................................................................. 227

Appendix 5 – List of Exercises


12. Appendix-5 List of Exercises

Exercise 3-1 - Develop Project Charter ................................................................. 34

Exercise 3-2 - Stakeholder Analysis ...................................................................... 39 Exercise 4-1 - Change Management Process ...................................................... 44

Exercise 4-2-Create Project Charter ...................................................................... 50 Exercise 4-3-Create Scope Statement .................................................................. 56

Exercise 4-4-Create Project Assumptions ............................................................ 57

Exercise 4-5- Create WBS ....................................................................................... 62

Exercise 4-6-Create Activity List ............................................................................. 68 Exercise 4-7-Resource Assignment ....................................................................... 79

Exercise 4-8-Task Duration Estimate .................................................................... 84 Exercise 4-9- Develop Schedule ............................................................................ 93 Exercise 4-10 - Cost of Quality ............................................................................. 111

Exercise 4-11 - Create Quality Management Plan ............................................ 116 Exercise 4-12 - Number of Communication Channels ...................................... 128

Exercise 4-13 - Risk List ........................................................................................ 138

Exercise 4-14 - Qualitative Risk Prioritization ..................................................... 143

Exercise 4-15 - Expected Monetary Value .......................................................... 148

Exercise 4-16 - Risk Response ............................................................................. 154

Exercise 4-17 - Make or Buy Decision ................................................................. 158

Exercise 4-18-Contract Types ............................................................................... 166

Exercise 5-1 - Quality Assurance Activities ........................................................ 175

Exercise 5-2 - Evaluation Criteria ......................................................................... 202

Exercise 6-1-Simulate Requirement Change ..................................................... 215

Exercise 6-2-Schedule & Cost Variance ............................................................. 228 Exercise 6-3 - Fishbone Diagram ......................................................................... 234 Exercise 6-4 - Quality Control Activities ......................................................... 240

Exercise 7-1 - Develop Project Management Process ..................................... 257

Appendix 6 – List of Group Discussions


13. Appendix-6 List of Group Discussions

Group Discussion 1-1-Student’s Expectations ....................................................... 6 Group Discussion 2-1- Which one is not a project ............................................... 10

Group Discussion 2-2-Project Constraints ............................................................ 13 Group Discussion 4-1-Requirements Gathering Challenges ............................. 49 Group Discussion 4-2- Scope Creep Indicators ................................................... 52

Group Discussion 4-3-Creating Activities .............................................................. 67

Group Discussion 4-4-Creating Activities .............................................................. 73

Group Discussion 4-5-Quality vs. Grade ............................................................. 106

Group Discussion 6-1 - Paper Tower ................................................................... 244

Group Discussion 6-2 - Telephone Casse .......................................................... 245

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