PMP Worksheets

reparation Worksheet #1
Project Integration Management Processes & activities required to ensure that the various elements of the project are properly coordinated to meet stakeholder expectations. Area Process 4.1 Develop Project Charter which formally authorizes a project Inputs Contract SOW (includes business need, scope description, strategic plan) EEF OPA (templates, procedures) 4.2 Develop Preliminary Project Scope Statementwhich provides a high level scope description Project charter SOW EEF OPA Project mgmt methodology PMIS Expert judgment Preliminary project scope statement Initiating Tools and Techniques Project selection methods Project mgmt methodology PMIS Expert judgment Outputs / Deliverables Project Charter Process Group Initiating Sponsor initiates the charter; charter includes 1) requirements to satisfy needs (what) 2) business needs that the project addresses (why) 3) justification 4) named project manager 5) milestones 6) assumptions 7) constraints (fixed dates) 8) business case 9) summary budget Scope includes 1) objectives 2) product requirements 3) acceptance criteria 4) project deliverables 5) constraints & assumptions 6) project organization 7) initial risks 8) milestones 9) initial WBS 10) high level cost estimate 11) project configuration mgmt requirements 12) approval requirements 4.3 Develop Project Management Plan that documents what is needed to define, prepare, integrate & coordinate all subsidiary plans Preliminary project scope statement Project management processes EEF OPA Project mgmt methodology PMIS includes config mgmt system to identify changes to product and control changes Expert judgment Project management plan Planning Plan includes 1) processes selected 2) level of implementation 3) tools to be used 4) interactions 5) how to execute work 6) how to control changes 7) how to do configuration mgmt 8) baselines use 9) communication needs 10) project phases 11) key mgmt issues Other Notes

4.4 Direct & Manage Project Execution by executing the work defined in the project management plan to meet requirements defined in the scope statement

Project management plan Approved corrective actions Approved preventive actions Approved change requests Approved defect repair Validated defect report Administrative closure procedure

Project mgmt methodology PMIS

Deliverables Requested changes Implemented change requests Implemented corrective actions Implemented preventative actions Implemented defect repair Work performance information (status, budget, % complete)

Executing

Actions include 1) perform activities 2) spend money 3) train staff 4) manage vendors 5) implement standards 6) create, control & validate deliverables 7) manage risk & risk response activities 8) adapt scope changes as needed 9) manage communications 10) collect project data including cost & milestones 11) collect & document lessons learned and process improvement actions

4.5 Monitor & Control Project Workthrough the processes required to initiate, plan, execute & close a project to meet performance objectives defined in the project management plan 4.6 Integrated Change Control by reviewing all change requests, approving changes & controlling changes to the deliverables & organizational process documents

Project management plan Work performance information Rejected change requests

Project mgmt methodology PMIS Earned Value technique Expert judgment

Recommended corrective actions Recommended preventative actions Forecasts Recommended defect repair Requested changes

Monitor & Control

Actions include 1) compare actual vs. plan 2) determine corrective actions needed 3) analyze risks & ensure corrective actions taken 4) maintain information base 5) status reporting 6) forecasting

Project management plan Requested changes Work performance information Recommended preventative actions Recommended corrective actions Recommended

Project mgmt methodology PMIS Expert judgment

Approved change requests Rejected change requests Project management plan (updates) Project scope management (updates)

Monitor & Control

Change control is needed because projects seldom run according to plan. Changes must be managed; also includes documenting changes and only releasing approved changes. Defect repair must be validated and quality controlled. Configuration management also occurs identify changes, determine if

defect repair Deliverables

Approved corrective actions Approved preventative actions Approved defect repair Validated defect repair Deliverables

changes have been implemented, and verify changes after complete. Every documented change must either be accepted or rejected by some authority.

4.7 Close Project by finalizing all activities across all of the project process groups to formally close the project

Project management plan Contract documentation EEF OPA Work performance information Deliverables

Project mgmt methodology PMIS Expert judgment

Administrative closure procedure Contract closure procedure Final product, service or result OPA (updates)

Closing

Updates after project completion include 1) formal acceptance documentation (written) 2) project files updated 3) project closure documents prepared (even for projects halted before completion) 4) historical information is used to update the lessons learned database

Preparation Worksheet #2
Project Scope Management Processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully; focus on what is and what is not included in the project Area Process 5.1 Scope Planning by creating a project scope management plan which includes how the WBS will be created & defined EEF OPA Project charter Preliminary project scope statement Project Inputs Tools and Techniques Expert judgment Templates, forms, standards Outputs / Deliverables Project scope management plan Process Group Planning Project scope management plan includes 1) process to prepare detailed scope based on preliminary scope 2) process to create WBS from scope 3) process to specify verification of deliverables 4) process to control Other Notes

management plan 5.2 Scope Definitionby developing a detailed project scope statement OPA Project charter Preliminary project scope statement Project scope management plan Approved change requests Product analysis Alternatives identification Expert judgment Stakeholder analysis Project scope statement Requested changes Project scope management plan (updates) Planning

scope changes Preparation of a detailed scope statement is critical to the project success. Includes 1) objectives 2) scope description 3) requirements 4) boundaries (excluded items) 5) deliverables 6) acceptance criteria 7) constraints 8) assumptions 9) organization 10) risks 11) milestones 12) funding 13) cost estimate 14) configuration management requirements 15) project specifications 16) approval requirements

5.3 Create Work Breakdown Structure (WBS) by subdividing the deliverables & work into smaller, more manageable components

OPA Project scope statement Project scope management plan Approved change requests

WBS templates Decomposition

Project scope statement (updates) WBS WBS dictionary Scope baseline Project scope management plan (updates) Requested changes

Planning

Decomposition divides work into smaller elements by 1) identify deliverables 2) structure and organize WBS 3) decomposing upper WBS into lower level detailed components 4) assign ID codes to WBS components 5) verifying that degree of decomposition is sufficient. Each component must be assigned, and defined in terms of how the project will actually be executed and controlled.

5.4 Scope Verificationthrough formal acceptance of the completed project deliverables 5.5 Scope Control by

Project scope statement WBS dictionary Project scope management plan Deliverables Project scope

Inspection

Accepted deliverables Requested changes Recommended corrective actions

Monitor & Control

Scope verification is primarily concerned with acceptance of the scope by stakeholders

Change control

Project scope

Monitor

Uncontrolled changes called scope

controlling changes to the project scope

statement WBS WBS dictionary Project scope management plan Performance reports Approved change requests Work performance information

system Variance analysis Replanning Configuration management system

statement (updates) WBS (updates) WBS dictionary (updates) Scope baseline (updates) Requested changes Recommended corrective action OPA (updates) Project Management Plan (updates)

& Control

creep. Change is inevitable, thus this process is needed

Preparation Worksheet #3
Project Time Management - Processes required to ensure timely completion of the project Area Process 6.1 Activity Definition by identifying the specific activities that must be performed to produce the various project deliverables EEF OPA Project scope statement WBS WBS dictionary Project management plan 6.2 Activity Sequencingby identifying and documenting dependencies among Project scope statement Activity list Activity attributes Inputs Tools and Techniques Decomposition Templates Rolling Wave planning Expert judgment Planning component (control account, planning package) Precedence diagramming method (PDM) Arrow diagramming Project schedule network diagrams Activity list (updates) Planning PDM (a.k.a Activity on Node) uses 4 types of dependencies (F-S, F-F, S-S, S-F). Outputs / Deliverables Activity list Activity attributes Milestone list Requested changes Process Group Planning The activity list does not include any schedule activities that are not required as part of the project scope. Other Notes

Project Time Management - Processes required to ensure timely completion of the project Area Process schedule activities Inputs Milestone list Approved change requests Tools and Techniques method (ADM) Schedule network templates Dependency determination Applying leads and lags 3 types of dependencies - mandatory, discretionary (best practices) and external. 6.3 Activity Resource Estimatingthrough estimating the type & quantity of resources needed to complete each activity EEF OPA Activity list Activity attributes Resource availability Project management plan Expert judgment Alternatives analysis Published estimating data Project management software Bottom-up estimating Activity resource requirements Activity attributes (updates) Resource breakdown structure Resource calendars (updates) Requested changes 6.4 Activity Duration Estimating by estimating the number of work periods which will be needed to complete individual activities EEF OPA Project scope statement Activity list Activity attributes Activity resource requirements Resource calendars Project management plan Expert judgment Analogous estimating (use actual duration of similar activity from past) Parametric estimating (hours per meter) Three-point estimates (average of most likely, optimistic Activity duration estimates Activity attributes (updates) Planning Planning Outputs / Deliverables Activity attributes (updates) Requested changes Process Group ADM (a.k.a. Activity on Arrow) uses only F-S dependencies. Allows dummy activities to show logical relationships. (Usually shown as a dashed line.) Other Notes

Project Time Management - Processes required to ensure timely completion of the project Area Process Inputs (risk register, activity cost estimates) Tools and Techniques & pessimistic) Reserve analysis Outputs / Deliverables Process Group Other Notes

6.5 Schedule Developmentby analyzing activity sequences, activity durations, and resource requirements to create the project schedule

OPA Project scope statement Activity list Activity attributes Project schedule network diagrams Activity resource requirements Resource calendars Activity duration estimates Project management plan (risk register)

Schedule network analysis Critical path method Schedule compression What-if scenario analysis Resource leveling Critical chain method Project management software Applying calendars Adjusting leads and lags Schedule model

Project schedule Schedule model data Schedule baseline Resource requirements (updates) Activity attributes (updates) Project calendar (updates) Requested changes Project management plan (updates, including schedule management plan)

Planning

Critical Path is the longest path through a network diagram and shows earliest completion of a project. CPM uses the most likely estimate to calculate the float to determine project duration and scheduling flexibility. Critical chain modifies schedule to account for limited resources. Define critical path, then apply resources often path changes. Schedule can be showed as a network diagram, bar chart (gantt), or milestone chart.

6.6 Schedule Control controlling changes to the project schedule including 1) determining current status of project schedule 2) influencing factors that cause changes 3) determining that the schedule has changed 4)

Schedule management plan Schedule baseline Performance reports Approved change requests

Progress reporting Schedule change control system Performance measurement Project management software Variance analysis Schedule

Schedule model data (updates) Schedule baseline (updates) Performance measurements Requested changes Recommended

Monitor & Control

Key measures include Schedule Variance (SV) and Schedule Performance Index (SPI). Progress reporting includes actual start and finished dates, and remaining durations for unfinished activities.. Schedule revisions are a special

Project Time Management - Processes required to ensure timely completion of the project Area Process managing changes as they occur Inputs Tools and Techniques comparison bar charts Outputs / Deliverables corrective actions OPA Activity list (updates) Activity attributes (updates) Project management plan (updates) Process Group category of schedule updates generally incorporated in response to approved change requests. The original schedule baseline and model are saved to prevent loss of data. Other Notes

Preparation Worksheet #4
Project Cost Management processes in planning and controlling costs so that the project can be completed within budget Area Process 7.1 Cost Estimatingthrough approximating the costs of the resources needed to complete project activities EEF OPA Project scope statement WBS WBS dictionary Project management plan (schedule & staffing mgmt plan, risk register) Inputs Tools and Techniques Analogous estimating Determine resource cost rates Bottom-up estimating Parametric estimating Project management software Vendor bid analysis Reserve analysis Cost of quality 7.2 Cost Budgeting by Project scope Cost aggregation Cost baseline Planning Cost baseline is a time-phased budget Outputs / Deliverables Activity cost estimates Activity cost estimate supporting detail (description, basis of estimate, assumptions, constraints, ROM) Requested changes Cost management plan (updates) Process Group Planning Top down / analogous estimating is generally less costly and less accurate than other techniques. Bottom-up estimating accuracy is driven by size of work items being estimated. Reserve analysis includes known unknowns. Project in initiation phase as rough order of Magnitude (ROM) of 50/+100%, later could go to 10%/+15% Other Notes

Project Cost Management processes in planning and controlling costs so that the project can be completed within budget Area Process aggregating estimated costs of individual activities or work packages to establish a cost baseline Inputs statement WBS WBS dictionary Activity cost estimates Activity cost estimate supporting detail Project schedule Resource calendars Contract Cost management plan 7.3 Cost Control by influencing factors that create cost variances & controlling changes to the project budget Cost baseline Project funding requirements Performance reports Approved change requests Project management plan Cost change control system Performance measurement analysis Forecasting Project management reviews Project management software Variance management Cost estimate (updates) Cost baseline (updates) Performance measurements Forecasted completion Requested changes Recommended corrective actions Organizational process assets (updates) Project management plan (updates) Monitor & Control PV - Planned Value (also Budget at Completion BAC) EV - Earned Value AC - Actual Cost ETC Estimate to Complete EAC Estimate at Completion Formulas to remember: Schedule Variance = EV-PV Cost Variance = EV-AC Schedule Performance Index = EV/PV Cost Performance Index = EV/AC (<1.0 overrun, 1.0 on budget, > 1.0 underrun) SPI, CPI used to forecast completion date and project cost projection Project funding requirements are derived from the cost baseline. Tools and Techniques Reserve analysis Parametric estimating Funding limit reconciliation Outputs / Deliverables Project funding requirements Cost management plan (updates) Requested changes Reserve are budgeted for unplanned, but potentially required, changes to project scope and cost not part of the project cost baseline or earned value. Process Group to measure and monitor cost performance. Other Notes

Preparation Worksheet #5
Project Quality Management processes to ensure that the project will satisfy the needs for which it was undertaken & implements the quality management system Area Process 8.1 Quality Planning by identifying which quality standards are relevant to the project and determining how to satisfy them EEF OPA Project scope statement Project management plan Inputs Tools and Techniques Cost-benefit analysis Benchmarking Design of experiments Cost of quality (COQ) Additional quality planning tools Outputs / Deliverables Quality management plan Quality metrics Quality checklists Process improvement plan (steps to analyze processes to identify waste & non-value added items Quality baseline Project management plan (updates) 8.2 Perform Quality Assurance by employing activities to ensure the project employs all processes needed to meet requirements Quality management plan Quality metrics Process improvement plan Work performance information Approved change requests Quality control measurements Implemented Quality planning tools and techniques Quality audits Process analysis Quality control tools and techniques Requested changes Recommended corrective actions Process analysis Quality control tools and techniques ISO 9000: An international standard thatdescribes a recommended quality system. Does not include quality procedures or forms. Heuristic is a rule of thumb (e.g. Rule of Seven) Executing Deming: Plan, Do, Check, Act Kaizen (Continuous Improvement): Small improvements in products or processes to reduce costs and ensure consistency of products or services. Quality is planned in, not inspected in. Cost of quality is total cost of all efforts related to quality. Project may not reap benefits since they are later in product lifecycle (i.e. lower returns) Process Group Planning Quality is the degree to which a set of inherent characteristics fulfill requirements Customer Satisfaction: Conformance to requirements, specifications, and fitness for use. Other Notes

Project Quality Management processes to ensure that the project will satisfy the needs for which it was undertaken & implements the quality management system Area Process Inputs change requests Implemented corrective actions Implemented defect repair Implemented preventative actions 8.3 Perform Quality Control by monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance Quality management plan Quality metrics Quality checklists OPA Work performance information Approved change requests Deliverables Cause and effect diagram Control charts Flowcharting Histogram Pareto chart Run chart Scatter diagram Statistical sampling Inspection Defect repair review Quality control measurements Validated defect repair Quality baseline (updates) Recommended corrective actions Recommended preventative actions Requested changes Recommended defect repair OPA Validated deliverables Project management plan (updates) Monitor & Control +/- 1 sigma = 68.26% +/- 2 sigma = 95.46% +/- 3 sigma = 99.73% +/- 6 sigma = 99.99 % Variable: Characteristicto be measured (e.g. size, shape) Attribute: The measurement (e.g. inches, pounds) StatisticalIndependence: The probability of 1 event occurring does not affect the probability of another event occurring. Tools and Techniques Outputs / Deliverables Process Group Other Notes

Preparation Worksheet #6
Project Human Resource Management process the organize & manage the project team Area Process 9.1 Human Resources Planning by identifying, documenting project roles, responsibilities & reporting relationships as well as creating the staffing management plan Inputs EEF (organizational, technical, interpersonal, logistical & political) OPA (templates, checklists) Project management plan (activity resource requirements) Tools and Techniques Organization charts and position descriptions (hierarchical charts, matrix charts, text formats) responsibility assignment matrix (RAM) Networking Organizational theory 9.2 Acquire Project Teamby getting the human resources needed to complete the project EEF OPA Roles and responsibilities Project organization charts Staffing management plan Pre-assignment Negotiation Acquisition Virtual teams Project staff assignments Resource availability Staffing management plan (updates) Executing Conflict Resolution Techniques: Problem Solving (Address interests) Compromising (Middle ground) Forcing (Impose judgement) Withdrawal (Avoidance) Smoothing (Peace keeping) PMI recommends Problem Solving as best choice followed by compromising. Forcing is last. 9.3 Develop Project Teamby improving competencies & interactions to enhance Project staff assignments Staffing management plan General management skills Training Team-building Team performance assessment includes 1) improvements in skills for individuals Executing Maslows Hierarchy of Needs (in order): Physiological (Lowest) Safety Outputs / Deliverables Roles and responsibilities (role, authority, responsibility, competencies required) Project organization charts Staffing management plan Process Group Planning Staff management plan includes 1) staff acquisition 2) timetable 3) release criteria 4) training needs 5) recognition & rewards 6) compliance 7) safety Other Notes

project performance

Resource availability

activities Ground rules Co-location Recognition and rewards

2) improvements in competencies for the group as a whole 3) reduce staff turnover rate

Social Esteem Self-Actualization (Highest) MacGregors Theory X People must be constantly watched. They are incapable, avoid responsibility, and avoid work. MacGregors Theory Y People are willing to work without supervision and want to achieve. Ouchi's Theory Z - People work effectively when secure, consulted and held collectively responsible.

9.4 Manage Project Teamby tracking member performance, providing feedback, resolving issues and coordinating changes to enhance project performance

OPA Project staff assignments Roles and responsibilities Project organizational charts Staffing management plan Team performance assessment Work performance information Performance reports

Observation and conversation Project performance appraisals Conflict management Issue log

Requested changes Recommended corrective actions Recommended preventative actions OPA (updates) Project management plan (updates)

Monitor & Control

Lessons learned documentation can include 1) org charts as templates 2) rules or techniques that were particularly successful 3) virtual teams, location items that were successful 4) special skills discovered during the project

Preparation Worksheet #7

Project Communications Management Processes required to ensure timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project information; provide the critical links among people & information that are needed for successful communications Area Process 10.1 Communication Planning by determining the information and communications needs of the stakeholders EEF OPA Project scope statement Project management plan (constraints, assumptions) Inputs Tools and Techniques Communications requirements analysis Communications technology Outputs / Deliverables Communications management plan (provides 1) stakeholder requirements 2) info to be communicated 3) responsibility 4) methods & frequency 5) escalation 6) updating ) Process Group Planning Communication Methods: Formal Written Project Plans/Charters Formal Verbal Presentations, Speeches Informal Written Memos, e-mail Informal Verbal Meetings, Conversations Comm. Channels: N(N-1)/2 where N is equal to the number of people. 10.2 Information Distributionthrough making needed information available to project stakeholders in a timely manner Communications management plan Communications skills Information gathering and retrieval systems Information distribution methods Lessons learned process 10.3 Performance Reporting by collecting and disseminating performance information including status reporting, progress measurement & forecasting Work performance information Performance measurements Forecasted completion Quality control Information presentation tools Performance information gathering and compilation Status review meetings Performance reports Forecasts Requested changes Recommended corrective actions Monitor & Control Performance Reporting Tools: Status Report Progress Report Trend Report Forecasting Report Variance Report Earned Value** OPA Requested changes Basic elements of communication: Sender (or encoder) Message. Receiver (or decoder) Executing PM should spend 70 - 90% of their time communicating. Other Notes

measurements Project management plan (performance measurement baseline) Approved change requests Deliverables 10.4 Manage Stakeholders by managing communications to satisfy he requirements of, and resolve issues with, project stakeholders Communications management plan OPA

Time reporting systems Cost reporting systems

OPA

Communications methods Issue logs

Resolved issues Approved change requests Approved corrective actions OPA Project management plans (updates)

Monitor & Control

Preparation Worksheet #8
Project Risk Management processes concerned with planning, identifying, analyzing and responding to project risk; objective is to increase the probability & impact of positive events and to decrease the probability and impact of adverse events Area Process 11.1 Risk Management Planning by deciding how to approach, plan & execute the risk management activities for EEF OPA Project scope statement Project Inputs Tools and Techniques Planning Meetings and analysis Outputs / Deliverables Risk Management Plan Process Group Planning Risk management plan includes methodology, roles, responsibilities, budget, timing, scoring / interpretation, thresholds, reporting, tracking, etc. Risk Categories: Other Notes

a project

management plan

Technical Project management Organizational External

11.2 Risk Identificationby determining which risks might affect the project and documenting their characteristics

EEF OPA Project scope statement Risk management plan Project management plan

Documentation reviews Information gathering techniques Checklist analysis Assumptions analysis Diagramming techniques Risk probability and impact assessment Probability and impact matrix Risk data quality assessment Risk categorization Risk urgency assessment

Risk register (includes list of risks, potential responses, root causes, and updated risk categories)

Planning

Risk Components: Risk event Risk event probability Risk event consequence Risk event status

11.3 Qualitative Risk Analysisby prioritizing risks for further analysis or action by assessing & combining their probability of occurrence & impact

OPA Project scope statement Risk management plan Risk register

Risk register (updates)

Planning

Use of low precision data may lead to faulty analysis. Risks calculated as high or moderate would be prime candidates for further analysis.

11.4 Quantitative Risk Analysisthrough numerically analyzing the effect on overall project objectives of identified risks

OPA Project scope statement Risk management plan Risk register Project management plan (schedule management plan, cost management

Data gathering and representation techniques Quantitative risk analysis and modeling techniques (sensitivity analysis, expected monetary value analysis, and decision tree analysis, modeling &simulation)

Risk register (updates) including 1) probabilistic analysis of the project for schedule & cost outcomes 2) prioritized list of quantified risks 3) trends in quantitative risk results)

Planning

Quantitative analysis follows qualitative analysis. Objectives include: Determine probability of reaching project objectives Determine size of contingency needed Identify risks requiring most attention based on their priority Identify realistic cost and scope

plan)

targets

11.5 Risk Response Planning by developing options & actions to enhance opportunities & reduce threats to project objectives

Risk management plan Risk register

Strategies for negative risk or threats (avoid, transfer or mitigate) Strategies for positive risks or opportunities (exploit, share or enhance) Strategy for both risks and opportunities (acceptance) Contingency response strategy

Risk register (updates) Project management plan (updates) Risk-related contractual agreements

Planning

Contingency Plan is a management plan that identifies alternative strategies to be used to ensure project success if specified risk events occur. Fallback plan is a management plan that identifies alternative project approaches if the risk has high impact, or if the strategy might not be fully effective. Contingency Reserve accounts for known risks that have been accepted. Secondary risks arise from implementing the contingency plan.

11.6 Risk Monitoring and Controlby keeping track of identified risks, monitoring residual risks and identifying new risks, executing risk response plans and evaluating their effectiveness throughout the project life cycle

Risk management plan Risk register Approved change requests Work performance information Performance reports

Risk reassessment Risk audits Variance and trend analysis Technical performance measurement Reserve analysis Status meetings

Risk register (updates) Requested changes Recommended corrective actions Recommended preventative actions OPA Project management plan (updates)

Monitor & Control

Purpose of Risk Monitoring is to determine if: Risk responses implemented as planned Risk response actions were as effective as planned Project assumptions are still valid Risk trigger has occurred Risk exposure has changed

Preparation Worksheet #9

Project Procurement Management processes required to acquire goods and services from outside the performing team; administering contractual obligations placed on the project team by the contract Area Process 12.1 Plan Purchases and Acquisitionsby determining what to purchase or acquire and when to do it EEF OPA Project scope statement WBS WBS dictionary Project management plan (risk register, riskrelated contractual agreements, resource requirements, project schedule, activity cost estimates, cost baseline) 12.2 Plan Contracting by documenting products, services & results requirements and identifying potential sellers Procurement management plan Contract statement of work Make or buy decisions Project management plan (risk register, riskrelated contractual Standard forms Expert judgment Procurement documents Evaluation criteria (can include cost, technical capability, financial capacity, business type, references, etc) Contract statement of work (updates) Planning Procurement management plan can include 1) type of contract 2) independent estimates 3) standardized procurement documents 4) constraints & assumptions 5) lead times for contracting coordination 6) make-orbuy documentation 7) scheduled dates in contracts 8) performance metrics for managing contracts Inputs Tools and Techniques Make or buy analysis Expert judgment Contract types Outputs / Deliverables Procurement management plan Contract statement of work needs to be clear, complete and concise Make or buy decisions Requested changes Process Group Planning Contract Type: FP Fixed Price or Lump sum. (Simplest form is PO) risk on seller CR Cost Reimbursable (cost plus fee, cost plus fixed fee or cost plus incentive fee) place risk on buyer T&M Time and Materials (aspects of FP and CR contracts) Moderate cost risk to buyer.) Other Notes

agreements, resource requirements, project schedule, activity cost estimates, cost baseline) 12.3 Request Seller Responses by obtaining information, quotations, bids offers or proposals 12.4 Select Sellers by reviewing offers, choosing among potential sellers, and negotiating a written contract OPA Procurement management plan Procurement documents OPA Procurement management plan Evaluation criteria Procurement document package Proposals Qualified sellers list Project management plan (risk register, riskrelated contractual agreements, resource requirements, project schedule, activity cost estimates, cost baseline) 12.5 Contract Administrationby managing contract & relationship between the buyer & seller; documenting Contract Contract management plan Selected sellers Performance reports Approved change Contract change control system Buyer-conducted performance review Inspections and audits Contract documentation Requested changes Recommended corrective actions Monitor & Control Contracts are often managed by a contract department who have authority and responsibility for contracts. The PM must work closely with this group to ensure that project objectives are met. Weighting system Independent estimates Screening system Contract negotiation Seller rating systems Expert judgment Proposal evaluation techniques Selected sellers Contract Contract management plan Resource availability Procurement management plan (updates) Requested changes Executing Objectives of Negotiation: Obtain a fair and reasonable price Develop a good relationship with the seller (should be a win-win situation) Items to negotiate include: Responsibilities, authority, applicable law, technical and business mgmt approaches, contract financing, and price. Bidder conferences Advertising Develop qualified sellers list Qualified sellers list Procurement document package Proposals Executing All bidders conference Q&A should be put in writing and issued to all potential sellers as an addendum to the procurement docs.

performance to establish corrective actions, and manage contract change

requests Work performance information

Performance reporting Payment system Claims administration Records management system Information technology

OPA Project management plan (updates)

12.6 Contract Closurethrough completing and settling each contract, including resolution of any open items

Procurement management plan Contract management plan Contract documentation Contract closure procedure

Procurement audits Records management system

Closed contracts OPA (update contract file, deliverable acceptance, and lessons learned documentation)

Closing

Centralized Contracting A separate contracting office handles contracts for all projects. Decentralized Contracting A contract administrator is assigned to each project.