2012 01 01 PMP Study Notes

Noaman Sayed www.NoamanSayed.
com
TABLE OF CONTENTS
Chapter 1: Introduction....................................................................3
Chapter : !ro"ect Li#ecyc$e and Or%ani&ation................................3
Chapter 3: !ro"ect 'ana%ement !roce((e( #or a !ro"ect.................)
Chapter ): !ro"ect Inte%ration 'ana%ement....................................*
).1 +e,e$op !ro"ect Charter -Initiatin%...........................................................................*
). +e,e$op !ro"ect 'ana%ement !$an -!$annin%.........................................................../
).3 +irect and 'ana%e !ro"ect E0ecution -E0ecution..................................................../
).) 'onitor and Contro$ !ro"ect 1or2 -'onitorin% 3 Contro$......................................4
).* !er#orm Inte%rated Chan%e Contro$ -'onitorin% 3 Contro$....................................5
)./ C$o(e !ro"ect or !ha(e -C$o(ure................................................................................5
Chapter *: !ro"ect Scope 'ana%ement............................................6
*.1 Co$$ect 7e8uirement( -!$annin%................................................................................6
*. +e#ine Scope -!$annin%.............................................................................................6
*.3 Create 1BS -!$annin%............................................................................................19
*.) :eri#y Scope -'onitorin% 3 Contro$......................................................................19
*.* Contro$ Scope -'onitorin% 3 Contro$....................................................................11
Chapter /: !ro"ect Time 'ana%ement...........................................11
/.1 +e#ine Acti,itie( -!$annin%.....................................................................................11
/. Se8uence Acti,itie( -!$annin%.................................................................................11
/.3 E(timate Acti,ity 7e(ource( -!$annin%...................................................................1
/.) E(timate Acti,ity +uration( -!$annin%....................................................................1
/.* +e,e$op Schedu$e -!$annin%...................................................................................13
/./ Contro$ Schedu$e -'onitor 3 Contro$....................................................................1)
Chapter 4: !ro"ect Co(t 'ana%ement............................................1*
4.1 E(timate Co(t( -!$annin%.........................................................................................1*
4. +etermine Bud%et -!$annin%...................................................................................1*
4.3 Contro$ Co(t( -'onitor 3 Contro$..........................................................................1/
Chapter 5: !ro"ect ;ua$ity 'ana%ement.......................................1/
5.1 !$an ;ua$ity -!$annin%............................................................................................14
5. !er#ormance ;ua$ity A((urance -E0ecution............................................................15
5.3 !$an ;ua$ity Contro$ -'onitor 3 Contro$...............................................................16
Chapter 6: <7 'ana%ement..........................................................9
6.1 +e,e$op <7 !$an -!$annin%....................................................................................9
6. Ac8uire !ro"ect Team -E0ecution............................................................................1
6.3 +e,e$op !ro"ect Team -E0ecution...........................................................................
6.) 'ana%e !ro"ect Team -E0ecution...........................................................................
Chapter 19: Communication(........................................................)
19.1 Identi#y Sta2eho$der( -Initiatin%............................................................................)
19. !$an Communication( -!$annin%...........................................................................*
19.3 +i(tri=ute In#ormation -E0ecutin%........................................................................*
19.) 'ana%e Sta2eho$der( -E0ecutin%........................................................................../
19.* 7eport !er#ormance -'onitor 3 Contro$............................................................../
!'! Study Note( >an 1? 91 !a%e
Noaman Sayed www.NoamanSayed.com
Chapter 11: !ro"ect 7i(2 'ana%ement..........................................4
11.1 !$an 7i(2 'ana%ement -!$annin%.........................................................................4
11. Identi#y 7i(2( -!$annin%........................................................................................5
11.3 !er#orm ;ua$itati,e 7i(2 Ana$y(i( -!$annin%........................................................5
11.) !er#orm ;uantitati,e 7i(2 Ana$y(i( -!$annin%......................................................6
11.* !$an 7i(2 7e(pon(e( -!$annin%.............................................................................39
11./ 'onitor and Contro$ 7i(2( -'onitor 3 Contro$...................................................31
Chapter 1: !ro"ect !rocurement 'ana%ement.............................31
1.1 !$an !rocurement( -!$annin%................................................................................3
1. Conduct !rocurement( -E0ecution........................................................................3)
1.3 Admini(ter !rocurement( -'onitor 3 Contro$.....................................................3*
1.) C$o(e !rocurement( -C$o(ure................................................................................3*
Chapter 1: Introduction
A Standard i( a #orma$ document that de(cri=e( e(ta=$i(hed norm(? method(? proce((e(?
and practice(. A (tandard i( a %uide rather than a methodo$o%y. !'BO@ i( a (tandard.
Project i( a temporary endea,or underta2en to create a uni8ue product? (er,ice? or re(u$t.
A pro"ect can in,o$,e a (in%$e per(on? a (in%$e or%ani&ationa$ unit or mu$tip$e
or%ani&ationa$ unit(.
Project Management i( the app$ication o# 2now$ed%e? (2i$$(? too$(? and techni8ue( to
pro"ect acti,itie( to meet the pro"ect re8uirement(.
A Portfolio re#er( to a co$$ection o# pro"ect( or pro%ram( and other wor2 that are %rouped
to%ether to #aci$itate e##ecti,e mana%ement o# that wor2 to meet (trate%ic =u(ine((
o="ecti,e(. The projects or programs of that portfolio MAY or may NOT necessarily be
interdependent or directly related. !ort#o$io mana%ement re#er( to the centra$i&ed
mana%ement o# one or more port#o$io(? inc$udin% identi#yin% A authori&in% A mana%in% A
contro$$in% pro"ect(Bpro%ram(Bre$ated wor2 to achieve specific strategic business
objectives.
Program i( de#ined a( a %roup o# re$ated pro"ect( mana%ed in a coordinated way to
o=tain =ene#it( and contro$ not a,ai$a=$e #rom mana%in% them indi,idua$$y. !ro%ram(
mana%ement i( de#ined a( the centra$i&ed coordinated mana%ement o# a pro%ram to
achie,e the pro%ramC( (trate%ic o="ecti,e( and =ene#it(.
A PMO pro,ide( !' (upport and re(pon(i=$e to %i,e direction mana%ement acro((
pro"ect(. !'O durin% initiation i( an inte%ra$ (ta2eho$der to ma2e recommendation(? or to
terminate.
Depending on Org structure, M may!may not report to functional manager
Management by Objective (MBO) i( a mana%ement phi$o(ophy with three o="ecti,e(:
E(ta=$i(h unam=i%uou( and rea$i(tic o="ecti,e(
!eriodica$$y E,a$uate i# o="ecti,e( are =ein% met
Ta2e correcti,e action(.
'BO wor2( on$y i# mana%ement (upport( it.
Chapter 2: Project Lifecycle and Organization
A pro"ect $i#ecyc$e i( a co$$ection o# %enera$$y (e8uentia$ and (ometime( o,er$appin%
pro"ect pha(e(. Project lifecycle (tructure:
"tarting Organi#ing $ preparing %arrying out the &or' %losing
Draph trend #rom =e%in unti$ end: +ownward #or (ta2eho$der in#$uence? ri(2? uncertainty
and detai$(E Fpward #or co(t and in,erted GFH #or (ta##in% $e,e$( -(ometime( a$(o co(t.
!ro"ect pha(e( are di,i(ion( within a pro"ect where e0tra contro$ i( needed. End o# pha(e
ca$$ed a( pha(e e0it(? mi$e(tone(? pha(e %ate(? deci(ion %ate(? or 2i$$ point(. Some pro"ect(
can ha,e on$y one pha(e -$i2e te$ecom( in(ta$$ation.? whi$e #ew wou$d ha,e mu$tip$e
(e8uentia$ -$i2e #aci$ity decommi((ionin%? wa(te remo,a$? c$eanup? $and(capin%. and
other( wou$d ha,e mu$tip$e o,er$appin% pha(e( -$i2e de(i%n and o,er$ap with
con(truction.. O,er$appin% increa(e( ri(2 and can re(u$t in rewor2 i# (u=(e8uent pha(e
pro%re((e( =e#ore accurate in#ormation i( a,ai$a=$e. End o# pha(e i( u(ed to rea((e((
e##ort to chan%eBterminate the pro"ect i# nece((ary.
Project Governance pro,ide( a comprehen(i,e? con(i(tent method o# contro$$in% the
pro"ect and en(urin% it( (ucce((. Thi( (hou$d =e de(cri=ed in !ro"ect 'ana%ement !$an.
Operations are on%oin% and produce repetiti,e product (er,ice(? or re(u$t(.
Stakeholders are peop$e or entitie( who are acti,e$y in,o$,ed in pro"ect or who(e intere(t
may =e po(iti,e$y or ne%ati,e$y a##ected =y the per#ormance or comp$etion o# the pro"ect.
Sta2eho$der identi#ication i( a continuou( proce((.
Cstomers ! "sers: peop$e that wi$$ u(e the pro"ectI( product or (er,ice or re(u$t.
Interna$ or e0terna$.
Sponsor: pro,ide( #inancia$ re(ource(. Champion( the pro"ect. Lead( the pro"ect
inc$udin% (e$ection pro%re(( unti$ #orma$$y authori&ed.
#acilitator %i,e( %uidance a( re8uired without inter#erin% and ha( more power
than a coordinator and a coordinator ha( more power than an e0peditor. The
project coordinator report( to a hi%herJ$e,e$ mana%er and ha( authority to ma2e
(ome deci(ion(. The project e$pediter ha( no authority to ma2e deci(ion(.
Project Manager role
!$annin%: +irectin% K E0ecutin%: Coachin% B A((i(tin% B Inte%rator
Initiatin%: Li(tenin% K 'onitor 3 Contro$: :eri#ication B Chec2in%
Or%ani&ationa$ In#$uence( on !ro"ect(
Chapter 3: Project Management Processes for a Project
A process i( a (et o# interre$ated action( and acti,itie( per#ormed to achie,e a preJ
(peci#ied product? re(u$t? or (er,ice.
%ailoring: addre(( each proce(( and it( ITTO #or indi,idua$ pro"ect( #or #it.
The !roce(( Droup( are NOT pro"ect pha(e(.
&olling 'ave Planning: !$annin% and +ocumentation are iterati,e -pro%re((i,e. and
on%oin% proce((e(.
Two type( o# project selection:
Benefits Measrement(
Mrder Boards J Thi( in,o$,e( a committee a(2in% tou%h 8ue(tion( #rom each
pro"ect
Scoring Models J +i##erent pro"ect( are %i,en (core( =a(ed on certain de#ined
criteria. roject &ith higher score is selected.
Benefits Cost &atio J Thi( techni8ue in,o$,e( computin% =ene#it( to co(t ratio
-BC7. #or a pro"ect. Thi( #ormu$a compare( =ene#it( to co(t(? not "u(t pro#it.
!ay=ac2 i( e8uated to =ene#it( here. roject &ith higher (%) is selected.
Payback period J Thi( techni8ue in,o$,e( con(iderin% how $on% it ta2e( =ac2 to
Lpay =ac2L the co(t o# the pro"ect. +i(count rate or In#$ation or intere(t earned in
not con(idered in thi( techni8ue -least precise.. A project &ith lo&er pay bac'
period is better.
)isc
ont
ed
Cash
#lo* J Thi( techni8ue ta2e( into account the intere(t earned on the money. The
Future :a$ue -F:. o# pro"ect( i( compared.
#+,P+(-.i)n
P+ i( the pre(ent ,a$ue o# the pro"ect? ieJ todayC( ,a$ue o# #uture ca(h #$ow(. 1e
con,ert a #uture ca(h #$ow into a ,a$ue today. Thi( a$$ow( u( to +I7ECTLM
compare two #uture ca(h #$ow( -most conservative.. !re(ent ,a$ue -!:. N 1?999
B -1 A 19O.. A project &ith higher present value is better. The num=er o# year( i(
a$ready inc$uded in the ca$cu$ation o# N!:. You simply pic' the project &ith the
highest N*.
/nternal &ate of &etrn (/&&) J 7e#er( to the rate which occur( a( the pre(ent
,a$ue o# the ca(h in#$ow( e8ua$ to that o# the ca(h out#$ow( -ieJ N!:N9..
7emem=er? the interna$ rate o# return i( (imi$ar to the intere(t rate you %et #rom
the =an2. A project that has higher +)) is better, as it is giving higher return on
money.
Constrained Optimi0ation(
Linear !ro%rammin% -mathematica$ mode$.? NonJLinear !ro%rammin%? Inte%er
A$%orithm? +ynamic !ro%rammin%? 'u$tiJo="ecti,e !ro%rammin%
Chapter : Project Integration Management
Inc$ude( proce((e(? acti,itie( needed to identi#y? de#ine? com=ine? uni#y? and coordinate
proce((e( and pm acti,itie( within !' proce(( %roup(.
4.1 Develop Project Charter (Initiating)
It i( recommended that !' participate( in the de,e$opment o# the !ro"ect Charter.
Initiated =a(ed on need( ana$y(i(? =u(ine(( ca(e.
/npts %% Otpts
.1 !ro"ect (tatement o# wor2
The SO1 re#erence( Bu(ine((
Need? !roduct Scope de(cription
and Strate%ic !$an
. Bu(ine(( Ca(e
Contain( Bu(ine(( Need and co(tJ
=ene#it ana$y(i(
.3 Contract
Input on$y i# wor2 i( done #or an
e0terna$ cu(tomer.
.) EEF
.* O!A
.1 E>
The(e can =e interna$ B e0terna$
(ource(
.1 !ro"ect Charter
+ocument( =u(ine(( need(?
under(tandin% o# cu(tomer?
mea(ura=$e pro"ect o="ecti,e( A
(ucce(( criteria amon%(t other
hi%h $e,e$ #acet( $i2e ri(2 B (cope B
=ud%et B mi$e(tone B purpo(e B
a((umption( B etc...
1ssmptions are identi#ied in initiatin%. They are ana$y&ed in pro"ect p$annin% -ri(2
mana%ement.? and they are re,iewed #or ,a$idity throu%hout the pro"ect. A((umption( are
#actor( that are con(idered to =e true? rea$? or certain without proo# or demon(tration.
A((umption( are ana$y&ed a( part o# ri(2 mana%ement.
4.2 Develop Project Management Plan (Planning)
Thi( i( the proce(( o# documentin% the action( nece((ary to de#ine? prepare? inte%rate? and
coordinate a$$ (u=(idiary p$an(.
Performance Measrement Baseline i( compo(ed o# scope? schedle A cost =a(e$ine
which i( u(ed #or Earned :a$ue 'ea(urement( -2+M..
/npts %% Otpts
.1 !ro"ect Charter
. Output( #rom p$annin%
proce((e(
.3 EEF
.) O!A
.1 E>
Tai$orin% i( in,o$,ed A de#ine(
$e,e$ o# con#i%uration m%mt A
determine( which pro"ect
document( wi$$ =e (u="ect to
chan%e contro$ proce((.
.1 !' p$an
Compri(e( o# three =a(e$ine(
-Schedu$e? Co(t? and Scope.
a$on% with (u=(idiary p$an( on
(cope m%mt? re8uirement( m%mt?
(chedu$e m%mt? co(t m%mt?
8ua$ity m%mt? proce((
impro,ement p$an? <7 p$an?
Communication( m%mt?
procurement m%mt p$an
Configration management con(i(t( o# Technica$ and Admini(trati,e procedure(
4.3 Direct and Manage Project Exection (Exection)
It i( the proce(( o# per#ormin% the wor2 de#ined in the !' p$an to achie,e pro"ectI(
o="ecti,e(. A$(o in,o$,e( imp$ementation o# appro,ed chan%e( =y pro"ect team ,ia C7(:
Corrective action: documented direction to =rin% =ac2 e0pected #uture
per#ormance in $ine with !' p$an -%et outcome( to a$i%n with p$an.
Preventive action: documented direction to reduce pro=a=i$ity o# ne%ati,e
con(e8uence a((ociated with pro"ect ri(2( -reduce impact o# ri(2 e,ent(.
)efect repair: the #orma$$y documented identi#ication o# a de#ect in a pro"ect
component with a recommendation to repair -or. rep$ace the component.
%orrective and preventive actions do not normally affect project baselines, only the
performance against the baselines.
/npts %% Otpts
.1 !' !$an
. Appro,ed C7(
.3 EEF
.) O!A
.1 E>
. !'IS
Thi( i( a type o# EEF and not
O!A
.1 +e$i,era=$e(
'u(t =e ,eri#ia=$e
. 1or2 !er#ormance
In#ormation
E%: +e$i,era=$e (tatu(? Schedu$e
pro%re((? co(t( incurred? $e((on(
$earned? inc$ude( procurement(.
.3 C7(
.) !' p$an update(
.* !ro"ect document update(
Inc$ude( 7e8uirement document?
!ro"ect Lo%( $i2e i((ue( B
a((umption(? etcP then ri(2
re%i(ter? and (ta2eho$der re%i(ter.
4.4 Monitor and Control Project !or" (Monitoring # Control)
!roce(( o# trac2in%? re,iewin% the re%u$atin% the pro%re(( to meet the per#ormance
o="ecti,e( de#ined in the !' p$an. 'onitorin% i( per#ormed throu%hout the pro"ect? which
inc$ude( co$$ectin%? mea(urin%? di(tri=utin% per#ormance in#ormation? a((e((in%
mea(urement( and trend( to e##ect proce(( impro,ement(.
/npts %% Otpts
.1 !' p$an
. !er#ormance report(
!repared =y !ro"ect Team
detai$in% accomp$i(hment(?
mi$e(tone(? i((ue(? pro=$em(?
current (tatu(? #oreca(t(? and
i((ue(.
.3 EEF
1or2 Authori&ation Sy(tem
-1AS.
.) O!A
.1 E> .1 C7(
. !' p$an update(
.3 !ro"ect document update(
E%: Foreca(t(? !er#ormance
report(? and i((ue $o%
A *ork athori0ation system i( a co$$ection o# #orma$ documented procedure( that
(peci#ie( how pro"ect wor2 i( authori&ed to en(ure that wor2 i( done =y the identi#ied
or%ani&ation at the ri%ht time and in the proper (e8uence. It i( a (u=(y(tem o# the o,era$$
pro"ect mana%ement (y(tem. It inc$ude( the (tep(? document(? trac2in% (y(tem? and
de#ined appro,a$ $e,e$( needed to i((ue wor2 authori&ation(. The primary mechani(m i(
typica$$y a written authori&ation to =e%in wor2 on a (peci#ic acti,ity or wor2 pac2a%e.
+ependin% on the (i&e o# the pro"ect? the de(i%n o# a wor2 authori&ation (y(tem wou$d
,ary. !ro"ect 1or2 i( a((i%ned ,ia 1AS. ,or e-ample, on many smaller projects, verbal
authori#ations &ill be ade.uate.
4.$ Per%orm Integrated Change Control (Monitoring # Control)
Thi( i( the proce(( o# re,iewin% a$$ chan%e re8ue(t(? appro,in% chan%e(? and mana%in%
chan%e( to the de$i,era=$e(? O!A? pro"ect document( and !' p$an.
Configration Control: Focu(ed on the (peci#ication o# =oth the de$i,era=$e( and the
proce((e(? whi$e Change Control: Focu(ed on the app$ication o# the con#i%uration
mana%ement (y(tem? inc$udin% chan%e contro$ proce((e(? (uch a( Con#i%uration
identi#ication? con#i%uration (tatu( accountin%? con#i%uration ,eri#ication and audit.
M+" %onfiguration Management %hange %ontrol "ystem /%ontrol Management "ystem0
%onfiguration %ontrol1 specification of deliverables and process
%hange %ontrol1 %hanges to project $ product baselines
/npts %% Otpts
.1 !' p$an
. 1or2 per#ormance
in#ormation
.3 C7(
.) EEF
.* O!A
.1 E>
. Chan%e Contro$ meetin%(
.1 C7 (tatu( update(
Imp$ementation o# the appro,ed
C7( i( done =y the G+irect and
'ana%e !ro"ect E0ecution
proce((H
. !' p$an update(
%orrective $ reventive actions do NOT normally affect project baselines2 only affect
the performance against those baselines. %hanges to scope re.uire baselining.
4.& Clo'e Project or Pha'e (Clo're)
Thi( i( the proce(( o# #ina$i&in% a$$ acti,itie( acro(( a$$ !' !roce(( Droup( to #orma$$y
comp$ete the pro"ect or pha(e. :ia i# it (ati(#ied e0it criteria? audit pro"ect (ucce(( B
#ai$ure? %ather $e((on( $earned? archi,e pro"ect in#ormation #or #uture u(e? etcP
/npts %% Otpts
.1 !' p$an
. Accepted de$i,era=$e(
.3 O!A
.1 E> .1 Fina$ product? (er,ice? or
re(u$t tran(ition
. O!A update(
E%J !ro"ect #i$e( $i2e !' p$an?
pro"ect ca$endar(? ri(2 re%i(ter(?
chan%e m%mt documentation?
etcP
Addition /Operations02 "tarvation /%ut resources02 +ntegration /)eassign resources02 3-tinction /"uccessful end0
Chapter !: Project "cope Management
Prodct Scope /4hat0: The #eature( and #unction( that characteri&e a product? (er,ice? or
re(u$t.
Project Scope /5o&0: The wor2 that need( to =e accomp$i(hed to de$i,er a product?
(er,ice? or re(u$t with the (peci#ied #eature( and #unction(. Comp$etion o# the pro"ect
(cope i( mea(ured a%ain(t the !' p$an. Comp$etion o# the produce (cope i( mea(ured
a%ain(t the product re8uirement(.
$.1 Collect (e)irement' (Planning)
/npts %% Otpts
.1 !ro"ect Charter
. Sta2eho$der re%i(ter
.1 Inter,iew(
. Focu( Droup(
Duided =y a trained moderator
.3 Faci$itated wor2(hop(
3g6 7AD, 8,D, *O%
.) Droup creati,ity
techni8ue(
.* Droup deci(ion ma2in%
techni8ue(
./ ;ue(tionnaire( and
(ur,ey(
.4 O=(er,ation(
.5 !rototype(
.1 7e8uirement(
documentation
Fnam=i%uou(? mea(ura=$e?
te(ta=$e? tracea=$e? comp$ete?
con(i(tent? and accepta=$e to 2ey
(ta2eho$der(. Need to =e e$icited?
ana$y&ed? and recorded. Si%ned
=y (ta2eho$der( -#unctiona$ 3 non
#unctiona$ re8uirement(.
. 7e8uirement(
mana%ement p$an
Con#i%uration m%mt A
re8uirement( prioriti&ation A
product metric( A tracea=i$ity
.3 7e8uirement( tracea=i$ity
matri0
Grop Creativity %echni3es: Brain(tormin%? Nominal Droup Techni8ue
-=rain(tormin% A ,otin% proce((.? Delphi Techni8ue -(o$icit un=ia(ed opinion( to criti8ue
Q co$$ect mer%e remo,e name( di(tri=ute criti8ue.? Idea B mind mappin%? Affinity diagram
-(ort idea( into %roup( #or re,iew and ana$y(i( Q a$(o u(ed in !$an ;ua$ity.
Grop )ecision Making %echni3es: 9nanimity? Majority -R *9O.? lurality -$ar%e(t
=$oc2 in %roup e,en i# ma"ority i( not achie,ed.? Dictatorship
$.2 De%ine *cope (Planning)
/npts %% Otpts
.1 !ro"ect Charter
. 7e8uirement( document
.3 O!A
.1 E>
. !roduct ana$y(i(
.3 A$ternati,e(
identi#ication
.) Faci$itated wor2(hop(
.1 !ro"ect (cope (tatement
Inc$ude( (cope de(c A acceptance
criteria A de$i,era=$e( A
e0c$u(ion( A con(traint( A
a((umption(
. !ro"ect document update(
Prodct 1nalysis e0amp$e( inc$ude product =rea2down? (y(tem ana$y(i(? re8uirement(
ana$y(i(? (y(tem( en%ineerin%? ,a$ue en%ineerin%? and ,a$ue ana$y(i(. +ale analysis i( a
way o# #indin% the $ea(t e0pen(i,e way to do the wor2. And it doe( 4O% a((e(( the ,a$ue
a pro"ect =rin%( to an or%ani&ation.
1lternatives identification techni3es inc$ude =rain(tormin%? lateral thin'ing? pair wi(e
compari(on(
$.3 Create !+* (Planning)
The 1BS or%ani&e( and de#ine( the tota$ (cope o# the pro"ect. The p$anned wor2 i(
contained within the $owe(t 1BS component( ca$$ed *ork package that can =e
(chedu$ed? co(t e(timated? monitored and contro$$ed.
&olling *ave planning: decompo(ition may not =e po((i=$e #or into the #uture? (o team
wait( unti$ de$i,era=$e or c$ari#ication i( recei,ed (o that detai$( o# 1BS can =e
de,e$oped. I# a ta(2 i( not in the 1BS? then it i( not part o# the pro"ect.
5!56 rle for 'BS J No ta(2 (hou$d =e $e(( than 5 hour( or more than 59 hour(. A$(o
re#erred to a( 5euristic )ule of Thumb.
-667 rle: tota$ o# wor2 at a$$ wor2 pac2a%e( repre(ent( a$$ pro"ect A product wor2.
'BS )ictionary( +etai$ed de(cription o# ta(2(? code( o# account(? re(pon(i=$e
or%ani&ation? mi$e(tone(? 8ua$ity re8uirement(? acceptance criteria? re(ource(? co(t
e(timate(? etcP
/npts %% Otpts
. 7e8uirement(
documentation
.3 O!A
.1 +ecompo(ition .1 1BS
. 1BS dictionary
.3 Scope =a(e$ine
.) !ro"ect document update(
Scope =a(e$ine N Scope (tatement A 1BS A 1BS dictionary
$.4 ,eri%- *cope (Monitoring # Control)
Thi( inc$ude( re,iewin% de$i,era=$e( with the cu(tomer or (pon(or to en(ure that they are
comp$eted (ati(#actori$y. Scope verification : completeness ; acceptance and 3ality
control : correctness o# the de$i,era=$e(. 8% ta'es place prior to *erify "cope.
/npts %% Otpts
.1 !' p$an
. 7e8uirement(
documentation
.3 7e8uirement( tracea=i$ity
matri0
.) :a$idated de$i,era=$e(
.1 In(pection
7e,iew(? product re,iew(? audit(?
wa$2throu%h(
.1 Accepted de$i,era=$e(
. C7(
+f project gets cancelled ! terminated, it is mandatory to still perform this process of
*erify "cope. 4hy< To document the degree of completion
!'! Study Note( >an 1? 91 !a%e -6
$.$ Control *cope (Monitoring # Control)
Thi( i( the proce(( o# monitorin% the (tatu( o# the pro"ect and product (cope and
mana%in% chan%e( to the (cope =a(e$ine. Fncontro$$ed chan%e( are re#erred a( Scope
Creep.
/npts %% Otpts
.1 !' !$an
. 1or2 per#ormance
in#ormation
!ro%re((? when de$i,era=$e(
(tarted and when p$anned to
#ini(h. -Thi( i( an output o# +irect
3 'ana%e !ro"ect E0ecution and
input #or mo(t 'onitor 3 Contro$
proce((e(.
.3 7e8uirement(
documentation
.) 7e8uirement( tracea=i$ity
matri0
.* O!A
.1 :ariance Ana$y(i( .1 1or2 per#ormance
mea(urement(
Acti,ity metric( inc$udin%
p$anned ,( actua$. -Output #or
Contro$ ScopeBSchedu$eBCo(t 3
Input #or 7eport !er#ormance A
!er#orm ;ua$ity Contro$.
. O!A update(
.3 C7(
.) !' p$an update(
Chapter #: Project $ime Management
&.1 De%ine .ctivitie' (Planning)
1BS 1or2 !ac2a%e( are decompo(ed into (ma$$er item( ca$$ed Acti,itie(. 1BS are
typica$$y #o$$ow noun( whi$e acti,itie( a( ,er=(. In,o$,e team mem=er( in decompo(ition
to yie$d =etter and more accurate re(u$t(. &olling 'ave Planning i( a #orm o#
pro%re((i,e e$a=oration p$annin% where the wor2 to =e accomp$i(hed in the near term i(
p$anned in detai$ and #uture wor2 i( p$anned at a hi%her $e,e$ o# the 1BS.
/npts %% Otpts
.1 Scope =a(e$ine
. EEF
.3 O!A
.1 +ecompo(ition
. 7o$$in% 1a,e !$annin%
.3 Temp$ate(
.) E>
.1 Acti,ity Li(t
. Acti,ity attri=ute(
Inc$udin% Le,e$ o# E##ort? di(crete
e##ort A apportioned e##ort A I+( B
code( A predece((or( B
(ucce((or( B re$ation(hip( B $ead(
A $a%(
.3 'i$e(tone $i(t
&.2 *e)ence .ctivitie' (Planning)
!ro"ect Schedu$e Networ2 dia%ram u(in% !recedence +ia%rammin% 'ethod which i( a
method u(ed in Critica$
#inish to Start (#S): Initiation o# the (ucce((or depend( on the comp$etion o# the
predece((or -mo(t common.
!'! Study Note( >an 1? 91 !a%e --
#inish to #inish (##): Comp$etion o# the (ucce((or depend( on the comp$etion o# the
predece((or
Start to Start (SS): Initiation o# the (ucce((or depend( on the initiation o# the
predece((or
Start to #inish (S#): Comp$etion o# the (ucce((or depend( on the initiation o# the
predece((or -rare$y u(ed.
/npts %% Otpts
.1 Acti,ity Li(t
.3 'i$e(tone $i(t
.) !ro"ect Scope Statement
.* O!A
.1 !recedence dia%rammin%
method -!+'.
. +ependency
determination
.3 App$yin% $ead( and $a%(
.) Schedu$e networ2
temp$ate(
.1 !ro"ect (chedu$e networ2
dia%ram(
)ependency determination: mandatory dependencie( -hard $o%ic contract( B
phy(ica$ $imit(.? di(cretionary dependency -also best practices? pre#erred? pre#erentia$?
soft $o%ic Q e% #a(t trac2in% Q the(e (hou$d =e documented a( they can create ar=itrary
#$oat ,a$ue(.? E0terna$ dependency -$i2e %o,ernment B $e%a$.
8eads: a$$ow( acce$eration to (ucce((or acti,ity
8ags: direct( a de$ay in the (ucce((or acti,ity -in(erted waitin% time( in =etween ta(2(.
For e0amp$e Ta(2 B cannot (tart unti$ three day( a#ter ta(2 A comp$ete(..
A Networ2 Lo%ic dia%ram ha( mu$tip$e predece((or(. Thi( type re(u$t( in (in2 node.
&.3 E'timate .ctivit- (e'orce' (Planning)
/npts %% Otpts
.1 .1 Acti,ity Li(t
.3 7e(ource ca$endar(
.) EEF
.* O!A
.1 E>
. A$ternati,e( ana$y(i(
F(in% di##erent machine(? too$(?
ma2e ,( =uy
.3 !u=$i(hed e(timatin% data
!u=$i(hed rate( and co(t(
.) BottomJup e(timatin%
.* !' (o#tware
.1 Acti,ity re(ource
re8uirement(
Type 3 8uantitie( o# re(ource(
needed
. 7e(ource =rea2down
(tructure -&BS.
&esorce breakdo*n strctre (&BS) i( a hierarchica$ (tructure o# re(ource( =y
re(ource cate%ory and re(ource type u(ed in re(ource $e,e$in% (chedu$e( and to de,e$op
re(ourceJ$imited (chedu$e(? and which may =e u(ed to identi#y and ana$y&e pro"ect human
re(ource a((i%nment(. ie Q re(ource( =y cate%ory 3 type
&.4 E'timate .ctivit- Dration' (Planning)
!'! Study Note( >an 1? 91 !a%e -9
/npts %% Otpts
.1 Acti,ity Li(t
.3 Acti,ity re(ource r8mt(
.) 7e(ource ca$endar(
.* !ro"ect (cope (tatement
./ EEF
.4 O!A
.1 E>
. Ana$o%ou( e(timatin%
.3 !arametric e(timatin%
.) ThreeJpoint e(timatin%
.* 7e(er,e ana$y(i(
.1 Acti,ity duration
e(timate(
7an%e( may =e inc$uded $i2e
wee2( ABJ day(
1nalogos estimating: Top down -=i% =o(( #rom pre,iou( (imi$ar pro"ect $i2e
appearance in term( o# dictionary A acti,itie(A hi(torica$ in#o A E>.. F(ed when $imited
amount o# detai$ed in#o i( a,ai$a=$e. Le(( co(t$y A $e(( accurate A $e(( time
Parametric estimating: (tati(tica$ re$ation(hip =a(ed on hi(torica$ in#o and other
,aria=$e( $i2e unit co(t? duration? $a=or rate( -(amp$e: 0S per #eet.
%hree point estimates(
!E7T N -9A)'A!.B/
Standard +e,iation -Si%ma. N -! Q O.B/
:ariance N -Standard +e,iation.T
#or more than one task(
!E7T N Sum o# indi,idua$ !E7TS
Standard +e,iation N S8uare 7oot -Sum o# a$$ indi,idua$ ,ariance(.
:ariance N Sum o# a$$ indi,idua$ :ariance(
&eserve 1nalysis: a2a time re(er,e( a2a =u##er( a( O o# e(timated acti,ity duration?
#i0ed duration or de,e$oped u(in% 8uantitati,e ana$y(i( =u##er(? time re(er,e(
&.$ Develop *chedle (Planning)
!roce(( o# %eneratin% a (chedu$e with p$anned date( #or acti,itie( and mi$e(tone(.
'i$e(tone( ha,e UE7O duration.
/npts %% Otpts
.1 Acti,ity Li(t
.3 !ro"ect (chedu$e networ2
dia%ram(
.) Acti,ity re(ource
re8uirement(
.* 7e(ource ca$endar(
./ Acti,ity duration
e(timate(
.5 EEF
.6 O!A
.1 Schedu$e networ2
ana$y(i(
. Critica$ path method
.3 Critica$ chain method
.) 7e(ource $e,e$in%
.* 1hatJi# (cenario ana$y(i(
:ia Simu$ation u(in% Monte
Carlo 1nalysis
./ App$yin% $ead( and $a%(
.4 Schedu$e compre((ion
.5 Schedu$in% too$
.1 !ro"ect (chedu$e
. Schedu$e =a(e$ine
.3 Schedu$e data
Schedu$e N Schedu$e data A mode$
1ctivity on 1rray (1O1) networ2 dia%ram( ha,e the #o$$owin% characteri(tic(.
AOA on$y u(e( Fini(hJToJStart re$ation(hip =etween ta(2(.
!E7T and C!' can on$y =e u(ed with AOA.
!'! Study Note( >an 1? 91 !a%e -:
+ummy e,ent( are (hown with dotted $ine(. They do not ta2e any time. They
(how dependencie( =etween ta(2(
G2&% i( another type o# networ2 dia%ram. It can (upport looping.
%otal #loat N po(iti,e di##erence =etween ear$y and $ate date(. Critical paths ha,e &ero
or ne%ati,e tota$ #$oat. 'u$tip$e critica$ path( are po((i=$e. 4ear Critical Path a( the
(econd hi%he(t duration
Critical chain i( an ana$y(i( techni8ue to modi#y the pro"ect (chedu$e to account #or
$imited re(ource( A mana%ement o# =u##er(. The critica$ chain method #ocu(e( on
mana%in% remainin% =u##er duration( a%ain(t the remainin% duration( o# ta(2 chain(.
&esorce leveling i( an ana$y(i( techni8ue. Can =e u(ed when (hared or critica$ re8uired
re(ource( are a,ai$a=$e on$ine at certain time(. Thi( i( nece((ary when re(ource( ha,e
=een o,er a$$ocated. Thi( can cau(e ori%ina$ critica$ path to chan%e. Need to a$$ocate
(carce re(ource( to critica$ path #ir(t and 2eepin% the re(ource( (ame acro(( the duration
o# the pro"ect. 7e(ource $e,e$in% dea$( with (chedu$in% re(ource(.
Critical Path Method re#er( to determinin% ear$y and $ate (tart and #ini(h date( the.
Ca$cu$atin% mu$tip$e pro"ect duration( with di##erent (et( o# a((umption( de(cri=e( *hat;
if analysis.
Schedle compression ,ia Crashing -=rin% additiona$ re(ource( which can (horten the
duration and may increa(e ri(2 A co(t. and #ast tracking -acti,itie( per#ormed in para$$e$
and may increa(e in ri(2 A rewor2 a%ain to (horten duration.
EF N ES A + -#orward pa((.
LS N LF Q + -re,er(e pa((.
F$oat? Tota$ F$oat? S$ac2? !ath F$oat N LF Q EF -or. LS Q ES
Tota$ amount o# time that can =e de$ayed #rom it( ear$y (tart without de$ayin% the pro"ect
#ini(h date. LF Q EF N LS Q ES
#ree #loat: Tota$ amount o# time that an acti,ity can =e de$ayed without de$ayin% the
ear$y (tart o# any immediate$y #o$$owin% acti,ity -ESne0t acti,ity Q E#current acti,ity Q 1.
Project #loat: Tota$ amount o# time that the pro"ect can =e de$ayed without de$ayin% the
e0terna$$y impo(ed pro"ect comp$etion date re8uired =y the cu(tomer B (pon(or
&.& Control *chedle (Monitor # Control)
/npts %% Otpts
.1 !' p$an
Contain( (chedu$e m%mt p$an
. !ro"ect (chedu$e
.3 1or2 per#ormance
in#ormation
.) O!A
.1 !er#ormance re,iew(
E:' -S: 3 S!I.
. :ariance ana$y(i(
.3 !' (o#tware
.) 7e(ource $e,e$in%
.* 1hatJi# (cenario ana$y(i(
./ Ad"u(tin% $ead( and $a%(
.4 Schedu$e compre((ion
.5 Schedu$in% too$
.1 1or2 per#ormance
mea(urement(
. O!A update(
.3 C7(
.) !' p$an update(
Inc$udin% (chedu$e data A pro"ect
(chedu$e
'onitor pro"ect (tatu( ,B( (chedu$e =a(e$ine. Critica$ !ath: A$$ S: wi$$ impact (chedu$e.
Critica$ Chain: compare =u##er time( -needed ,B( remainin%.
!'! Study Note( >an 1? 91 !a%e -<
Chapter %: Project Cost Management
Co(t mana%ement p$an i( part o# !' p$an which inc$ude( $e,e$ o# accuracy? unit o#
mea(ure? contro$ thre(ho$d(? #ormat(? etcP
/.1 E'timate Co't' (Planning)
!ro"ect in initiation i( &ogh Order of Magnitde (&OM) ABJ *9O and $ater to a
=ud%etary A*O B J19O and #urther narrow( to a de#initi,e ran%e o# ABJ 19O. Co(t(
e(timated a$(o #or in#$ation andBor contin%ency co(t( a( a (pecia$ cate%ory.
/npts %% Otpts
.1 Scope =a(e$ine
. !ro"ect (chedu$e
.3 <7 p$an
Inc$ude( rewardBreco%
.) 7i(2 re%i(ter
.* EEF
'ar2et condition(
./ O!A
!o$icie(Btemp$ate(
.1 E>
. Ana$o%ou( e(timatin%
.3 !arametric e(timatin%
.) BottomJup e(timatin%
.* ThreeJpoint e(timate(
./ 7e(er,e ana$y(i(
.4 Co(t o# 8ua$ity
.5 !' e(timatin% (o#tware
.6 :endor =id ana$y(i(
.1 Acti,ity co(t e(timate(
. Ba(i( o# e(timate(
Inc$udin% ran%e( A con(traint( A
a((umption( A indication o#
con#idence $e,e$ on #ina$ e(timate
1nalogos: <i(torica$ A e0pert. It i( a %ro(( ,a$ue e(timatin% pro"ect -top down.. Ba(ed
on pa(t (imi$ar pro"ect(. Le(( co(t$y? $e(( accurate
Parametric: (tati(tica$ $i2e (8#t co(tin%? unit rate(? duration.
BottomJup: e(timatin% component( o# wor2 then ro$$ed up
ThreeJpoint e(timate( !E7T N -O A )' A !.B/
&eserve 1nalysis: inc$ude( contin%ency re(er,e( to account #or uncertainty a%ain J O or
#i0ed or ,ia 8uantitati,e ana$y(i( method(
)epreciation i( techni8ue u(ed to compute the e(timated ,a$ue o# any o="ect a#ter #ew
year(. There are three type( o# depreciation techni8ue(. The(e are
Straight line depreciation: The (ame amount i( deprecated -reduced. #rom the
co(t each year.
)oble;declining balance: In the #ir(t year there i( a hi%her deduction in the
,a$ue J twice the amount o# (trai%ht $ine. Each year a#ter that the deduction i( )9O
$e(( than the pre,iou( year.
Sm of year depreciation: LetI( (ay the $i#e o# an o="ect i( #i,e year(. The tota$
o# one to #i,e i( #i#teen. In #ir(t year we deduce *B1* #rom the co(t? in (econd year
we deduce )B1*? and (o on.
8a* of diminishing retrns: For each additiona$ re(ource? you wi$$ NOT rea$i&e the
(ame increa(e in =ene#it that you rea$i&ed #rom pre,iou( re(ource.
/.2 Determine +dget (Planning)
A%%re%atin% a$$ e(timated co(t( o# wor2 pac2a%e( to e(ta=$i(h co(t =a(e$ine inc$udin% a$$
authori&ed =ud%et(? e0c$udin% mana%ement re(er,e(.
!'! Study Note( >an 1? 91 !a%e -=
/npts %% Otpts
. Ba(i( o# e(timate(
.3 Scope =a(e$ine
.) !ro"ect (chedu$e
.* 7e(ource ca$endar(
./ Contract(
.4 O!A
.1 Co(t a%%re%ation
. 7e(er,e ana$y(i(
.3 E>
.) <i(torica$ re$ation(hip(
Ana$o%ou( A !arametric
.* Fundin% $imit
reconci$iation
Bud%et re$ated
.1 Co(t per#ormance
=a(e$ine
S;Crve charts (time vs cost)
. !ro"ect #undin%
re8uirement(
&eserve 1nalysis: Contingency reserve -a$$owance( #or unp$anned =ut re8uired chan%e(
re(u$tin% #rom ri(2.? Management reserve -re(er,ed #or unp$anned chan%e( to (cope and
co(t !' need( appro,a$ to (pend #rom m%mt re(er,e.. 'ana%ement re(er,e( are 4O%
part o# E:' ca$cu$ation(.
/.3 Control Co't' (Monitor # Control)
/npts %% Otpts
.1 !' p$an
. !ro"ect #undin%
re8uirement(
.3 1or2 per#ormance
in#ormation
.) O!A
.1 Earned :a$ue m%mt
-E:'.
. Foreca(tin%
.3 TC!I
.) !er#ormance re,iew(
.* :ariance ana$y(i(
./ !' (o#tware
.1 1or2 per#ormance
mea(urement(
. Bud%et #oreca(t(
.3 O!A update(
.) C7(
.* !' p$an update(
./ !ro"ect document update(
S: N E: Q !:
C: N E: Q AC
S!I N E: B !:
C!I N E: B AC
EAC N AC A ETC
EAC N BAC B C!I ETC per#ormed at pre(ent C!IBrate with mi(ta2e( =ein% repeated
EAC N AC A -BAC Q E:. ETC per#ormed at =ud%eted rate and mi(ta2e( wonIt repeat
EAC N AC A V -BAC Q E:. B -C!IWS!I. X ETC wor2 con(iderin% S!I 3 C!I
TC!I N -BAC Q E:. B -BAC Q AC. Ba(ed on BAC
TC!I N -BAC Q E:. B -EAC Q AC. Ba(ed on EAC
:AC N BAC Q EAC
Apart #rom thi(? 2now the di##erence =etween +irect Co(t? Indirect Co(t? :aria=$e Co(t?
'ar%ina$ Co(t? Sun2 Co(t? and Fi0ed Co(t.
Chapter &: Project 'uality Management
Thi( addre((e( mana%ement o# the pro"ect and product o# the pro"ect.
!'! Study Note( >an 1? 91 !a%e ->
Standard: Appro,ed =y a reco%ni&ed =ody. Shou$d =e #o$$owed =ut not $e%a$$y re8uired
&eglation: 'andatory and re8uire( (trict adherence
?ality: de%ree to which a (et o# inherent characteri(tic( #u$#i$$ re8uirement(
Grade: Cate%ory a((i%ned to product( B (er,ice( ha,in% the (ame #unctiona$ =ut di##erent
technica$ characteri(tic(.
Precision: ,a$ue( o# repeated mea(urement( are c$u(tered and ha,e $itt$e (catter
1ccracy: mea(ured ,a$ue i( ,ery c$o(e to that o# the true ,a$ue.
!re,ention i( =etter than in(pection.
Marginal 1nalysis: Mou compare the co(t o# incrementa$ impro,ement( a%ain(t the
increa(e in re,enue made #rom 8ua$ity impro,ement(. Optimal 3ality i( reached when
co(t o# impro,ement( e8ua$( the co(t( to achie,e 8ua$ity. The aim o# 8ua$ity i( to en(ure
LCon#ormance to re8uirement(L and L#itne(( #or u(eL.
1pproaches to ?ality
Crosby( Uero de#ect(. +o it ri%ht the #ir(t time
@ran( Drade( o# 8ua$ity and #it #or u(e. ;ua$ity =y de(i%n
)eming %?M( !+CA A 5*O o# co(t o# 8ua$ity i( mana%ement pro=$em
Si$ Sigma( mea(urement =a(ed on de#ect e$imination. Norma$ di(tri=ution Si%ma ,a$ue(
= sigma1 >?.@>A @ sigma1 BC.D>A E sigma1 BB.FEA > sigma1 BB.BBA
Aai0en( Theory o# app$yin% (ma$$ impro,ement( to impro,e co(t ( 3 en(urin%
con(i(tency. Continuou( impro,ement and e,eryone in,o$,ed.
0.1 Plan 1alit- (Planning)
Identi#yin% 8ua$ity re8uirement( andBor (tandard( #or the pro"ect and product.
Co(t o# ;ua$ity
/npts %% Otpts
.1 Scope =a(e$ine
. Sta2eho$der re%i(ter
.3 Co(t per#ormance
=a(e$ine
.1 Co(tJ=ene#it ana$y(i(
. Co(t o# 8ua$ity
.3 Contro$ chart(
.) Benchmar2in%
.1 ;ua$ity 'ana%ement
!$an
. ;ua$ity metric(
.3 ;ua$ity chec2$i(t(
!'! Study Note( >an 1? 91 !a%e -B
.) Schedu$e =a(e$ine
.* 7i(2 re%i(ter
./ EEF
.4 O!A
.* +e(i%n o# e0periment(
./ Stati(tica$ (amp$in%
.4 F$owchartin%
.5 !ropriety 8ua$ity m%mt
methodo$o%ie(
.6 Additiona$ 8ua$ity
p$annin% too$(
.) !roce(( impro,ement
p$an
!art o# !' p$an
Cost of 3ality: 7e#er( to the tota$ co(t o# a$$ e##ort( re$ated to 8ua$ity throu%hout the
product $i#e cyc$e.
Control charts: F(ed to determine i# proce(( i( (ta=$e or ha( predicta=$e per#ormance.
Fpper 3 $ower (peci#ication( ha,e ma0Bmin ,a$ue( a$$owed. A proce(( i( con(idered out
o# contro$ when a data point e0ceed( a contro$ $imit or i# (e,en con(ecuti,e point( are
a=o,e or =e$ow the mean. Typica$ contro$ $imit N 3 (i%ma
Benchmarking: Comparin% actua$( B p$anned with compara=$e pro"ect(.
)esign of e$periments: Stati(tica$ method -prototypin%. #or identi#yin% which #actor(
may in#$uence ,aria=$e( o# product or proce((. Important ro$e in optimi&ation o# product(
or proce((e(. It reduce( the (en(iti,ity o# product per#ormance. !ro,ide( a (tati(tica$
#ramewor2 #or (y(tematica$$y chan%in% a$$ o# important #actor(? rather than one at a time.
E%J prototypin% that which com=ination o# tire( 3 (u(pen(ion( wi$$ =e mo(t de(ira=$e at
rea(ona=$e co(t.
Statistical sampling: In,o$,e( choo(in% part o# popu$ation Q $i2e 19 out o# 49 drawin%(.
The (amp$e (i&e and #re8uency (hou$d =e determined durin% !$an ;ua$ity proce((. F(ed
when it wou$d ta2e too $on% or co(t too much to do entire %roup
1dditional 3ality planning tools: Brain(tormin%? 1ffinity diagrams -identi#y $o%ica$
%roupin%( =a(ed on natura$ re$ation(hip. A$(o u(ed in Co$$ect 7e8uirement(.? #orce #ield
analysis -#orce( #or and a%ain(t chan%e.? 4ominal grop techni3es -(ma$$ %roup
=rain(tormin% and re,iewed andBor ,oted =y =i%%er %roup.? Matri$ diagrams -row( B
co$umn(.? Prioriti0ation matrices
?ality metrics: A pro"ect or product attri=ute and how 8ua$ity contro$ proce((e( wi$$
mea(ure it. To$erance de#ine( a$$owa=$e ,ariation on the metric(. E% Q (tay within
appro,ed =ud%et ABJ 19O cou$d =e the mea(ure o# co(t o# e,ery de$i,era=$e? onJtime
per#ormance? =ud%et contro$? de#ect #re8uency? #ai$ure rate? etcP
?ality checklists: Structured too$? component (peci#ic u(ed to ,eri#y i# re8uired (et o#
(tep( ha,e =een per#ormed.
0.2 Per%ormance 1alit- .''rance (Exection)
Thi( i( the proce(( o# auditin% 8ua$ity re8uirement( and the re(u$t( #rom the 8ua$ity
contro$ mea(urement( to en(ure appropriate 8ua$ity (tandard(. aper &or'!administrative
/therefore audits ; process analysis ; planning tools0. ;A pro,ide( an um=re$$a #or
continuou( proce(( impro,ement? which reduce( wa(te and e$iminate( acti,itie( that do
not add ,a$ue. #ocs( correct 3 mo(t e##icient proce((e( A ena=$e( continuou( proce((
impro,ement
?ality 1ssrance i( done durin% e0ecution o# the pro"ect. It inc$ude( J
!'! Study Note( >an 1? 91 !a%e -5
!roce(( o# e,a$uatin% o,era$$ per#ormance on a re%u$ar =a(i(
7eJe,a$uatin% 8ua$ity (tandard(
;ua$ity audit( J (tructured re,iew o# 8ua$ity acti,itie( that identi#y $e((on(
$earned. The(e $e((on( $earned are u(ed #or proce(( impro,ement.
!er#orm ;ua$ity A((urance in,o$,e( re,iewin% the 8ua$ity re8uirement( and auditin% the
re(u$t( #rom 8ua$ity contro$ mea(urement(. !er#orm ;ua$ity A((urance u(e( data created
durin% !er#orm ;ua$ity Contro$
/npts %% Otpts
.1 !' p$an
Inc$ude( ;' and !I p$an
. ;ua$ity metric(
.3 1or2 per#ormance
in#ormation
.) ;ua$ity contro$
mea(urement(
.1 !$an ;ua$ity and !er#orm
;ua$ity Contro$ too$( and
techni8ue(
. ;ua$ity audit(
I# a( per or%ani&ationa$ and
pro"ect po$icie(? proce((e( and
procedure(.
.3 !roce(( ana$y(i(
Inc$ude( root cau(e ana$y(i(
.1 O!A update(
. C7(
.3 !' p$an update(
Inc$ude( comp$eted chec2$i(t(?
$e((on( $earned $i2e cau(e( o#
,ariance
0.3 Plan 1alit- Control (Monitor # Control)
No <7 (tu##? tota$$y technica$. #ocs i( on accuracy o# pro"ect re(u$t( /therefore various
types of diagrams ; charts ; inspection0.Thi( i( the proce(( o# monitorin% and recordin%
re(u$t( o# e0ecutin% the 8ua$ity acti,itie( to a((e(( per#ormance and recommend
nece((ary chan%e(.
Prevention: @eepin% error( out o# proce((e(
/nspection: @eepin% error( out o# the hand( o# the cu(tomer
1ttribte Sampling: re(u$t( either con#orm( or doe( not con#orm
+ariables Sampling: 7e(u$t( i( rated on a continuou( (ca$e that mea(ure( the de%ree o#
con#ormity
%olerance: (peci#ied ran%e o# accepta=$e re(u$t(
Control 8imits: thre(ho$d(? which can indicate whether the proce(( i( out o# contro$
/npts %% Otpts
.1 !' p$an
. ;ua$ity metric(
.3 ;ua$ity chec2$i(t(
.) 1or2 per#ormance
mea(urement(
!$anned ,( actua$ technica$ B
(chedu$e B co(t per#ormance
.* Appro,ed C7(
./ +e$i,era=$e(
.4 O!A
.1 Cau(e n e##ect dia%ram(
. Contro$ chart(
.3 F$owchartin%
.) <i(to%ram
.* !areto chart
./ 7un chart
.4 Scatter dia%ram(
.5 Stati(tica$ (amp$in%
.6 In(pection
.19 Appro,ed C7(
.1 ;ua$ity contro$
mea(urement(
. :a$idate chan%e(
.3 :a$idated de$i,era=$e(
.) O!A update(
.* C7(
./ !' p$an update(
!'! Study Note( >an 1? 91 !a%e -C
Control charts: I$$u(trate( how a proce(( behaves o,er time and when i( (u="ect to a
(pecia$ cau(e ,ariation. I( the proce(( ,ariance within accepta=$e $imit(. !roce(( (hou$d
=e ad"u(ted when a proce(( i( out(ide accepta=$e $imit(.
Specia$ cau(e(: unu(ua$ e,ent( 3 Common B 7andom: norma$ e,ent(
&n charts: Simi$ar to contro$ chart( *ithot displayed limits. Show( hi(tory and
pattern o# ,ariation. Show( trends in a proce(( o,er time? ,ariation o,er time? dec$ine( or
impro,ement( in a proce(( o,er time
Scatter diagrams: Show( re$ation(hip =etween t*o ,aria=$e(. C$o(er the point( are to a
dia%ona$ $ine? the more c$o(e$y there are re$ated.
/nspection: 'ay =e ca$$ed a( re,iew(? peer re,iew(? audit(? wa$2throu%h(? ,a$idation
de#ect repair(. In(pection 2eep( de#ect( #rom reachin% cu(tomer whi$e pre,ention 2eep(
de#ect( #rom occurrin%.
In @st;/n;%ime (@/%) ?ality? the amount o# in,entory i( &ero. The input( are made
a,ai$a=$e? "u(t when they are re8uired. Thi( reduce( the (tora%e co(t.
&le of seven: In contro$ chart(? i# there are (e,en point( on one (ide o# mean? then an
a((i%na=$e cau(e mu(t =e #ound.
Chapter (: )* Management
!ro"ect mana%ement team i( (u=(et o# pro"ect team and re(pon(i=$e #or pro"ect m%mt and
$eader(hip acti,itie( acro(( a$$ proce(( %roup( J %roup can =e re#erred to a( core?
e0ecuti,e or $eader(hip team. Spon(or wor2( with $eader(hip team
Staffing Management Plan: 1hen and how re(ource( wi$$ =e met -ac8ui(ition(?
ca$endar(? re$ea(e? trainin% need(? comp$iance? (a#ety.
&esorce Distogram: depict( re(ource $oadin% B u(a%e #or a pro"ect
2.1 Develop 3( Plan (Planning)
!roce(( o# identi#yin% and documentin% pro"ect ro$e(Bre(pon(i=i$itie(Bre8uired
(2i$$(Breportin% re$ation(hip(Bcreation o# (ta##in% m%mt p$an? inc$udin% timeta=$e #or (ta##
ac8ui(ition and re$ea(e. 'ay a$(o inc$ude identi#ication o# trainin% need(? team =ui$din%
(trate%ie(? reco%nition and reward pro%ram(? comp$iance con(ideration(? (a#ety i((ue(? ...
/npts %% Otpts
.1 Acti,ity 7e(ource
7e8uirement(
pro%re((i,e$y e$a=orated a( part
o# <7 p$annin% proce((
. EEF
Or% cu$ture? e0i(tin% hr? per(onne$
admin po$icie( and mar2etp$ace
condition(
.3 O!A
or% (tandard proce((e( B po$icie( B
(tandardi&ed ro$e de(c B temp$ate(
#or or% chart( B po(ition de(c B
.1 Or%ani&ation chart( 3
po(ition de(cription(
Format(: hierarchica$? matri0
-&1MB&1C/.? te0tJoriented.
Each wor2 pac2a%e ha( an
unam=i%uou( owner and that a$$
team mem=er( ha,e a c$ear
under(tandin% o# their ro$e(Bre(p.
. Networ2in%
Forma$Bin#orma$? proacti,e
corre(pondence? $uncheon
meetin%(? trade con#? (ympo(ia
.1 <7 !$an
!art o# !' p$an? pro,idin%
%uidance on how <7 (hou$d =e
de#ined? (ta##ed? mana%ed?
contro$$ed and e,entua$$y
re$ea(ed.
component(: ro$e B authority B
re(p B competency B pro"ect or%
chart( B (ta##in% m%mt p$an J (ta##
ac8ui(ition B re(ource
ca$endar( B (ta## re$ea(e p$an B
trainin% need( B reco% reward( B
comp$iance B (a#ety po$icie(
!'! Study Note( >an 1? 91 !a%e 96
hi(torica$ in#o on or% (tructure(
.3 Or%ani&ationa$ Theory
A !' may yie$d authority o,er the pro"ect team in one o# the #o$$owin% way( J
&eferent ! /nferred: !ro"ect team 2now( the !'
#ormal Po*er ! 8egitimate: !ower due to !'I( po(ition
%echnical Po*er ! 2$pert /best method0: !' ha( (tron% technica$ (2i$$( in the
pro"ect( domain.
Coercive Po*er ! Pnishment: The pro"ect team i( a#raid o# the power the !'
ho$d(.
&e*ard ! /ncentive
Organi0ational theory pro,ide( in#ormation re%ardin% the way in which peop$e? team(?
and or%ani&ationa$ unit( =eha,e. E##ecti,e u(e o# thi( in#ormation can (horten the amount
o# time? co(t? and e##ort needed to create the human re(ource p$annin% output( and
impro,e the $i2e$ihood that the p$annin% wi$$ =e e##ecti,e.
+roomEs 2$pectancy %heory: !eop$e accept to =e rewarded #or their e##ort(. Thi( i( a
moti,ation #actor. !eop$e put in more e##ort( =ecau(e they accept to =e rewarded #or their
e##ort(.
McGregory %heory of F and G: There are two type o# emp$oyee(. Emp$oyee( o# type Y
need to =e a$way( watched. They cannot =e tru(ted and need to =e micro mana%ed.
Emp$oyee( o# type M? on the other hand? are (e$#Jmoti,ated. They can wor2
independent$y.
Ochi %heory of H: #ocu(ed on increa(in% emp$oyee $oya$ty to the company =y
pro,idin% a "o= #or $i#e with a (tron% #ocu( on the we$$J=ein% o# the emp$oyee? =oth on
and o## the "o=. Accordin% to Ouchi? Theory U mana%ement tend( to promote (ta=$e
emp$oyment? hi%h producti,ity? and hi%h emp$oyee mora$e and (ati(#action.
Der0berg %heory: <y%iene #actor( -(a$ary? c$ean$ine(( etc.. i# not pre(ent can de(troy
moti,ation. <owe,er? %ood hy%iene a$one doe( not impro,e moti,ation. 1hat moti,ate(
peop$e i( the wor2 it(e$#. The moti,ation #actor( #or emp$oyee( inc$ude re(pon(i=i$ity?
(e$#Jactua$i&ation? %rowth? reco%nition etc.
Contingency %heory( Theory 3 3 <y%iene. !eop$e moti,ated to =e competent and
remain (o.
Maslo*Is Dierarchy of needs: there are ,ariou( $e,e$( o# need( #or an emp$oyee. 1hen
a $ower $e,e$ i( met? emp$oyee attempt( to reach the ne0t hi%her $e,e$. The ma0imum
(ati(#action i( achie,ed when the emp$oyee reache( the hi%he(t $e,e$ o# (ati(#action J (e$#J
#u$#i$$ment. The(e $e,e$( o# need( #rom the hi%he(t to $owe(t are Q
"elf6Actuali#ation!fulfillment!Gro&th 3steem "ocial "afety hysiology
2.2 .c)ire Project 4eam (Exection)
!roce(( o# con#irmin% <7 a,ai$a=i$ity and o=tainin% the team nece((ary to comp$ete
pro"ect a((i%nment(. !' team may or may not ha,e direct contro$ o,er team mem=er
(e$ection =ecau(e o# co$$ecti,e =ar%ainin% a%reement(Bu(e o# (u=contractor per(onne$?
matri0 en,ironment? etc... 'eetin%( are con(idered a( In#orma$ ,er=a$.
!'! Study Note( >an 1? 91 !a%e 9-
/npts %% Otpts
.1 !' !$an
<7 p$an in particu$ar #rom the
!' p$an.
. EEF
!er(onne$ admin po$icie( may
a##ect out(ourcin%? a,ai$a=i$ity?
e0perience $e,e$(? intere(t(? co(t(?
a=i$itie( o# re(ource(
.3 O!A
.1 !reJa((i%nment
de#ined within pro"ect charter? or
part o# competiti,e propo(a$? or
dependant on e0perti(e o#
particu$ar per(on(
. Ne%otiation
For =e(t re(ource( (uited a(
de#ined ear$ier.
.3 Ac8ui(ition
<irin% indi,idua$ con(u$tant( or
(u=contractin% wor2 to another
or%ani&ation =ecau(e inJhou(e
(ta## (2i$$( not a,ai$a=$e.
.) :irtua$ team(
emai$? audioB,ideo con#? weJ
=a(ed meetin%(. Dood
communication( re8uired #or thi(
.1 !ro"ect (ta## a((i%nment(
!ro"ect team directory? memo?
name( in pro"ect or%
chart(B(chedu$e(Bpm p$an.
. 7e(ource ca$endar(
.3 !' p$an update(
#ocu(ed on hr p$an
2.3 Develop Project 4eam (Exection)
In#$uence team? =e pro#e((iona$ and =eha,e ethica$$y. !roce(( o# impro,in% o,era$$
competencie(? team interactionBen,ironment to enhance pro"ect per#ormance. !' (hou$d
pro,ide an en,ironment that #aci$itate( team wor2. Team wor2 i( a critica$ #actor #or
pro"ect (ucce((. !' (hou$d continua$$y moti,ate team =y pro,idin% cha$$en%e( and
opportunitie(? time$y #eed=ac2B(upportBreco%ni&in%Brewardin% %ood per#ormance.
/npts %% Otpts
. !' p$an
.1 Interper(ona$ (2i$$(
. Trainin%
.3 TeamJ=ui$din% acti,itie(
Forma$ B in#orma$ B theorie( $i2e
#rom Tuc2man -Formin% B
Stormin% B Normin% B !er#ormin%
B Ad"ournin%.
.) Dround ru$e(
.* CoJ$ocation
./ 7eco%nition and reward(
.1 Team per#ormance
a((e((ment(
Forma$Bin#orma$ a((e((ment o#
pro"ect teamC( e##ecti,ene(( =y
u(in% team de,e$opment e##ort(
u(ed ,ia a=o,e TT(. Criteria
(hou$d =e determined 3
incorporated in the input(.
E,a$uation Indicator( may
inc$ude impro,ement( in (2i$$(?
competencie(? reduced (ta##
turno,er rate? increa(ed team
cohe(i,ene((
. EEF update(
!'! Study Note( >an 1? 91 !a%e 99
2.4 Manage Project 4eam (Exection)
!roce(( o# trac2in% team mem=er per#ormance? pro,idin% #eed=ac2? re(o$,in% i((ue( 3
mana%in% chan%e( to optimi&e pro"ect per#ormance.
/npts %% Otpts
. !' p$an
.3 Team per#ormance
a((e((ment(
By continua$$y a((e((in% teamC(
per#ormance? action( can =e ta2en
to re(o$,e i((ue(? modi#y
communication(? addre(( con#$ict
and impro,e team interaction
.) !er#ormance report(
in#ormation #rom per#ormance
report( and re$ated #oreca(t(
a((i(t( in determinin% #uture <7
re8uirement( B reco%nition B
reward( B (ta##in% m%mt p$an
.* O!A
Certi#icate o# appreciation?
new($etter(? we=(ite(? =onu(?
etc...
.1 O=(er,ation 3
con,er(ation
. !ro"ect per#ormance
apprai(a$(
.3 Con#$ict mana%ement
.) I((ue Lo%
.* Interper(ona$ (2i$$(
Leader(hip B In#$uencin% B
E##ecti,e +eci(ion 'a2in%
.1 EEF update(
. O!A update(
.3 C7(
.) !' p$an update(
Conflict management: Source( inc$ude (carce re(ource(? (chedu$in% prioritie(? per(ona$
wor2 (ty$e(. Team %round ru$e(? %roup norm(? communication(.
Conflict /ntensity -#rom hi%he(t to $owe(t.:
"chedules riorities Manpo&er Technical +ssues Administration
ersonality %onflict %ost
!$annin%? ro$e de#inition reduce amount o# con#$ict. Con#$ict i( a team i((ue and openne((
re(o$,e( it. 7e(o$ution (hou$d #ocu( on i((ue( not per(ona$itie( 3 on pre(ent not the pa(t.
Confronting ! Problem;solving: re8uire( %i,e n ta2e attitude 3 open dia$o%ue (*in;*in)
Compromising: Searchin% #or (o$ution( that =rin% (ome de%ree o# (ati(#action to a$$
partie( (middle rote)
'ithdra*ing ! 1voiding: 7etreatin%
Smoothing ! 1ccommodating: Empha(i&in% area( o# a%reement rather than di##erence
#orcing: !u(hin% oneC( ,iewpoint? o##er( *in;lose (o$ution
Collaborating: mu$tip$e ,iewpoint( A in(i%ht( #rom di##erin% per(pecti,e( to consenss
and commitment
!'! Study Note( >an 1? 91 !a%e 9:
Dalo 2ffect i( the a((umption that =ecau(e the per(on i( %ood at a techno$o%y? he wi$$ =e
%ood a( a pro"ect mana%er.
Chapter 1+: Communications
Sender( 7e(pon(i=$e #or c$arity? comp$etene(( and con#irmin%
&eceiver( 7e(pon(i=$e #or in#ormation recei,in% in entirety? under(tandin% correct$y and
ac2now$ed%in%.
15.1 Identi%- *ta"eholder' (Initiating)
Critica$ #or pro"ect (ucce(( to identi#y the (ta2eho$der( ear$y in the pro"ect? and to ana$y&e
their $e,e$( o# intere(t? e0pectation(? importance 3 in#$uence
/npts %% Otpts
.1 !ro"ect Charter
. !rocurement +oc(
.3 EEF
.) O!A
.1 Sta2eho$der Ana$y(i(
. E>
.1 Sta2eho$der re%i(ter
Identi#ication In#ormation?
A((e((ment In#ormation?
C$a((i#ication
. Sta2eho$der mana%ement
(trate%y
Sta2eho$der ana$y(i( matri0
-Sta2eho$der %roup B Intere(t B
Impact A((e((ment B Strate%ie(.
!'! Study Note( >an 1? 91 !a%e 9<
Stakeholder 1nalysis( Sy(tematica$$y %atherin% 3 ana$y&in% 8uantitati,e 3 8ua$itati,e
in#ormation -(ur,ey( B 8ue(tionnaire(. to determine who(e intere(t( (hou$d =e ta2en into
account throu%hout the pro"ect. Identi#ie( intere(t? e0pectation( 3 in#$uence and re$ate(
them to the pro"ect purpo(e.
Po*er!/nterest grid: $e,e$ o# authority B $e,e$ o# concern re%ardin% pro"ect outcome(
Po*er!/nflence grid: $e,e$ o# authority B acti,e in,o$,ement in the pro"ect
/nflence!/mpact grid: acti,e in,o$,ement B a=i$ity to e##ect chan%e( to pro"ect p$annin%
or e0ecution
Salience model: power -a=i$ity to impo(e their wi$$.? ur%ency -need #or immediate
attention.? and $e%itimacy -appropriate in,o$,ement.
15.2 Plan Commnication' (Planning)
+eterminin% (ta2eho$der in#ormation need( 3 de#inin% comm( approach. ieJ who need(
what in#oBwhen they need itBhow it wi$$ =e %i,en B =y whom. Thi( i( a 2ey component to
determine and $imit who wi$$ communicate with whom and who wi$$ recei,e what
in#ormation
/npts %% Otpts
(trate%y
.3 EEF
.) O!A
Or% chart u(ed
.1 Communication(
re8uirement( ana$y(i(
comm channe$( N nW-nJ1.B
. Comm Techno$o%y
=rie# con,er(ation(? e0tended
meetin%(? (imp$e doc( to materia$
$i2e (chedu$e( 3 data=a(e(
.3 Comm 'ode$(
Encode J 'e((a%e 3 Feed=ac2
me((a%e J 'edium J Noi(e J
+ecode
.) Comm 'ethod(
Interacti,e -meetin%( A phone ca$$
A ,ideo con#.? !u(h Comm
-$etter(? memo(? report(? emai$(?
#a0e(? ,oice mai$(? pre(( re$ea(e(.
!u$$ Comm -intranet? eJ$earnin%?
2now$ed%e repo(itory.
.1 Comm( m%mt p$an
. !ro"ect +ocument
Fpdate(
2ffective Commnications: 7i%ht #ormat A ri%ht time A ri%ht impact
2fficient Commnications: !ro,idin% in#ormation a( needed
15.3 Di'tri6te In%ormation (Execting)
!roce(( o# ma2in% relevant information a,ai$a=$e to (ta2eho$der( a( p$anned. !er#ormed
throu%hout entire pro"ect $i#ecyc$e =ut #ocu( on e0ecution. !' (pend( C67 o# hi(Bher
time communicatin% ,ia written 3 ,er=a$ mean(.
Droup( o# *J11: 'ana%ea=$e 3 accurate deci(ion(. !' i( re(pon(i=$e #or producin%
$e((on( $earned pro#e((iona$ o=$i%ation.
/npts %% Otpts
!'! Study Note( >an 1? 91 !a%e 9=
.1 !' !$an
. !er#ormance 7eport(
!reci(e? current and (ent prior to
meetin%(. #oreca(t( are updated
-u(in% E:' andBor ana$o%y with
pa(t pro"ect(? reJe(timatin%
remainin% wor2? inc$u(ion o#
impact o# e0terna$ e,ent( in
(chedu$e.
.3 O!A
.1 Comm 'ethod(
(enderJrecei,er mode$(? choice o#
media -,ideo J audit con#erence?
comp chat(.? #aci$itation
techni8ue( -=ui$din% con(en(u(
and o,ercomin% o=(tac$e(. A
meetin% m%mt techni8ue(
-preparin% a%enda 3 dea$in% with
con#$ict(.
. In#ormation +i(tri=ution
too$(
<ard copy doc di(tri=ution
manua$ #i$in%? pre(( re$ea(e(?
e$ectronic data=a(e(E emai$? #a0?
,oice mai$? te$ephone? ,ideoBwe=
con#? we=(ite( and we=
pu=$i(hin%E (chedu$in%? pm (Bw
.1 O!A update(
15.4 Manage *ta"eholder' (Execting)
In#$uence their de(ire( to increa(e $i2e$ihood o# pro"ect acceptance? addressing concerns
that havenIt become isses yet? clarifying ; resolving issues that ha,e =een identi#ied
/npts %% Otpts
(trate%y
.3 !' !$an
.) I((ue Lo%
.* Chan%e Lo%
./ O!A
.1 Communication 'ethod(
. Interper(ona$ (2i$$(
Bui$din% tru(t? re(o$,in% con#$ict?
acti,e $i(tenin% 3 #aci$itatin%
chan%e
.3 'ana%ement (2i$$(
!re(entation? ne%otiatin%? writin%
and (pea2in%
.1 O!A update(
. C7(
.3 !' !$an update(
15.$ (eport Per%ormance (Monitor # Control)
Co$$ectin% 3 di(tri=utin% per#ormance in#ormation? inc$udin% (tatu( report(? pro%re((
mea(urement( and #oreca(t(. In,o$,e( periodic co$$ection 3 ana$y(i( o# =a(e$ine ,B(
actua$( to communicate pro%re(( A per#ormance A #oreca(t
/npts %% Otpts
.1 !' !$an
pro,ide( in#ormation on pro"ect
=a(e$ine( inte%ratin% (cope?
(chedu$e? co(t and may a$(o
inc$ude technica$ A 8ua$ity
parameter(.
. 1or2 per#ormance
.1 :ariance ana$y(i(
A#ter the #act $oo2 at what cau(ed
di##erence =etween =a(e$ine 3
actua$ per#ormance. A$(o inc$ude(
impact o# ,ariance in co(t A
(chedu$e A 8ua$ity A (cope
. Foreca(tin% method(
.1 !er#ormance report(
Common #ormat( inc$ude =ar
chart(? SJcur,e(? hi(to%ram(?
ta=$e(? ,ariance ana$y(i(? E:
ana$y(i(? #oreca(t data
. O!A update(
.3 C7(
!'! Study Note( >an 1? 91 !a%e 9>
in#ormation
In#o #rom pro"ect acti,itie( i(
co$$ected on per#ormance re(u$t(
(uch a( de$i,era=$e( (tatu( A
(chedu$e pro%re(( A co(t(
incurred
.3 1or2 per#ormance
mea(urement(
To %enerate pro"ect acti,ity
metric( to e,a$uate actua$
pro%re(( ,B( p$anned pro%re((. in
re$ation to (chedu$e A co(t A
technica$
.) Bud%et #oreca(t(
.* O!A
can ha,e or% de#ined ,ariance
$imit(
%ime series methods -E:' A
mo,in% a,era%e? e0trapo$ation
$inear prediction? trend e(timation
3 %rowth cur,e.E
Casal!econometric methods
-regression: e% (a$e o# um=re$$a(
a((ociated with weather
condition(.: identi#yin%
under$yin% #actor( that mi%ht
in#$uence the #oreca(ted ,aria=$eE
@dgment methods -Intuiti,e A
pro=a=i$ity A compo(ite #oreca(t(
A (ur,ey( A +e$phi A (cenario
=ui$din% A techno$o%y #oreca(tin%
A #oreca(t =y ana$o%y.E Other
methods inc$ude (imu$ation?
pro=a=i$i(tic and en(em=$e
#oreca(tin%
.3 Comm method(
Statu( re,iew meetin%(. !u(h
comm techni8ue to di(tri=ute
per#ormance report(
.) 7eportin% (y(tem(
(o#tware pac2a%e( A di(t #ormant(
inc$ude ta=$e reportin%?
(pread(heet ana$y(i(?
pre(entation(
Ana$y(i( o# pro"ect per#ormance
o#ten %enerate( C7( which are
proce((ed throu%h !er#orm ICC
proce((.
Chapter 11: Project *is, Management
7i(2 i( p$anned #or an unp$anned e,ent. Speci#ic un2nown ri(2( cannot =e mana%ed
proacti,e$y? which (u%%e(t( that a contin%ency p$an (hou$d =e created.
&isk %olerance: Or%ani&ation( and (ta2eho$der( are wi$$in% to accept ,aryin% de%ree( o#
ri(2.
11.1 Plan (i'" Management (Planning)
7i(2 Brea2down Structure -7BS. i( created in thi( proce((.
/npts %% Otpts
.1 !ro"ect Scope (tatement
. Co(t m%mt p$an
.3 Schedu$e m%mt p$an
.) Communication( m%mt
p$an
.* EEF
./ O!A
.1 !$annin% meetin%( and
ana$y(i(
7i(2 contin%ency re(er,e
app$ication approache( may =e
e(ta=$i(hed or re,iewed.
+e#inition( o# $e,e$( o# ri(2?
pro=a=i$ity =y type or ri(2? impact
=y type? etcP
.1 7i(2 'ana%ement !$an
+e(cri=e( how 7' wi$$ =e
(tructured and per#ormed
inc$udin% methodo$o%y?
ro$e(Bre(pon(i=i$itie(? =ud%etin%?
timin% $i2e #re8uency? ri(2
cate%orie( Q &BS? de#inition(?
pro=a=i$ity and impact matri0?
(ta2eho$der(I to$erance $e,e$(?
how trac2ed? reported? etcP
!'! Study Note( >an 1? 91 !a%e 9B
11.2 Identi%- (i'"' (Planning)
It i( an iterati,e proce(( and u(ed to determine which ri(2( a##ect the pro"ect and
documentin% their characteri(tic(. !' (hou$d in,o$,e pro"ect team (o they can de,e$op
and maintain a (en(e o# owner(hip and re(pon(i=i$ity #or the ri(2( and a((ociated ri(2
re(pon(e action(.
/npts %% Otpts
.1 7i(2 mana%ement p$an
. Acti,ity co(t e(timate(
.3 Acti,ity duration
e(timate(
.) Scope =a(e$ine
.* Sta2eho$der re%i(ter
./ Co(t m%mt p$an
.4 Schedu$e m%mt p$an
.5 ;ua$ity m%mt p$an
.6 !ro"ect document(
Thi( inc$ude( A((umption(? 1or2
per#ormance report(? E:'
report(? Networ2 dia%ram(?
=a(e$ine(? P
.19 EEF
.11 O!A
.1 +ocumentation re,iew(
. In#ormation %atherin%
techni8ue(
Brain(tormin% with e0pert( who
are 4O% part o# team? either in a
#reeJ#orm or nominal %roup
techni8ue. )elphi techni8ue A
Inter,iewin% A &oot Case
1nalysis
.3 Chec2$i(t ana$y(i(
Can =e created =a(ed on
hi(torica$ in#ormation and
2now$ed%e.
.) A((umption( ana$y(i(
.* +ia%rammin% techni8ue(
Case n 2ffect A (y(tem B
proce(( #$ow chart( A /nflence
diagrams . Casal
./ S1OT ana$y(i(
.4 E>
.1 7i(2 re%i(ter update(
Li(t o# identi#ied ri(2( and it(
potentia$ re(pon(e(.
11.3 Per%orm 1alitative (i'" .nal-'i' (Planning)
Thi( i( the proce(( o# prioriti&in% ri(2( #or #urther ana$y(i( or action =y a((e((in% and
com=inin% their pro=a=i$ity o# occurrence and impact. Thi( proce(( a((e((e( priority o#
identi#ied ri(2( u(in% their re$ati,e pro=a=i$ity or $i2e$ihood o# occurrence? it( impact to
o="ecti,e( and other #actor( (uch a( time #rame and to$erance a((ociated with pro"ect
con(traint(. Thi( i( a rapid and co(t e##ecti,e mean( o# e(ta=$i(hin% prioritie( #or !$an
7i(2 7e(pon(e(.
'atchlist: 7i(2( with $ow ratin% #or #uture monitorin%.
/npts %% Otpts
.1 7i(2 7e%i(ter
. 7i(2 m%mt p$an
.) O!A
.1 7i(2 pro=a=i$ity and
impact a((e((ment
. !ro=a=i$ity and impact
matri0
.3 7i(2 data 8ua$ity
a((e((ment
Now inc$ude( %rouped =y
cate%orie(? ran2in%? priority $i(t?
watch$i(t? trend(? etcP
!'! Study Note( >an 1? 91 !a%e 95
7e8uire( credi=$e and un=ia(ed
data
.) 7i(2 cate%ori&ation
&BS
.* 7i(2 ur%ency a((e((ment
./ E>
&isk Probability assessment in,e(ti%ate( the $i2e$ihood that each ri(2 wi$$ occur 3 7i(2
Impact a((e((ment in,e(ti%ate( the potentia$ e##ect on a pro"ect o="ecti,e B con(traint.
Probability /mpact Matri$ he$p( c$a((i#y ri(2( a( <i%h B 'edium B Low
11.4 Per%orm 1antitative (i'" .nal-'i' (Planning)
Thi( i( the proce(( o# numerica$$y ana$y&in% the e##ect o# identi#ied ri(2( on pro"ect
o="ecti,e(. !er#ormed on$y on hi%h priority ri(2( identi#ied in the ear$ier proce((.
/npts %% Otpts
.1 7i(2 7e%i(ter
. 7i(2 m%mt p$an
.3 Co(t m%mt p$an
.) Schedu$e m%mt p$an
.* O!A
.1 +ata %atherin% and
repre(entation techni8ue(
Inter,iewin% A !ro=a=i$ity
di(tri=ution(
. ;uantitati,e ri(2 ana$y(i(
and mode$in% techni8ue(
Sensitivity analysis A 2$pected
Monetary +ale 1nalysis ,ia
)ecision %ree
.3 E>
Inc$ude( pro=a=i$i(tic ana$y(i( A
pro=a=i$ity o# achie,in% time and
co(t A prioriti&ed $i(t o# 8uanti#ied
ri(2( A trend(
+ata Datherin% can inc$ude three point e(timate(? which probability distribtions
inclde:
Continos probability distribtion: mode$in% and (imu$ation repre(ent the
uncertainty in ,a$ue( (uch a( duration( o# (chedu$e acti,itie( and co(t( o# pro"ect
component(. E% Q Beta 3 Trian%u$ar di(tri=ution
)iscrete distribtion: F(ed to repre(ent uncertain e,ent( (uch a( the outcome o#
a te(t or a po((i=$e (cenario in a deci(ion tree.
"niform distribtion: Can =e u(ed ONLM i# there i( NO o=,iou( ,a$ue
Sensitivity 1nalysis: he$p( determine which ri(2( ha,e the mo(t potentia$ impact on the
pro"ect. E%J %ornado diagram
2$pected Monetary +ale analysis: (tati(tica$ concept that ca$cu$ate( the a,era%e
outcome when the #uture inc$ude( (cenario( that may or may not happen. Opportunitie(
wou$d =e po(iti,e ,a$ue( whi$e threat( in ne%ati,e. E': i( ca$cu$ated =y mu$tip$yin% the
,a$ue o# each po((i=$e outcome =y it( pro=a=i$ity o# occurrence and addin% the product(
to%ether A mode$in% B (imu$ation ,ia 'onte Car$o
+eci(ion Tree +ia%ram
!'! Study Note( >an 1? 91 !a%e 9C
11.$ Plan (i'" (e'pon'e' (Planning)
!roce(( o# de,e$opin% option( and action( to enhance opportunitie( and to reduce threat(
to pro"ect o="ecti,e(. It inc$ude( identi#ication and a((i%nment o# one per(on Gri(2
re(pon(e ownerH
/npts %% Otpts
.1 7i(2 7e%i(ter
. 7i(2 m%mt p$an
.1 Strate%ie( #or ne%ati,e
ri(2( or threat(
. Strate%ie( #or po(iti,e
ri(2( or opportunitie(
.3 Contin%ent re(pon(e
(trate%ie(
.) E>
. 7i(2Jre$ated contract
deci(ion(
.3 !' p$an update(
4egative &isk Strategies(
1void ! 2vade: E$iminate the threat entire$y
%ransfer: Tran(#errin% the $ia=i$ity ,ia in(urance? =ond(? warrantie(? %uarantee(?
etc. Note Co(t p$u( contract may tran(#er the co(t ri(2 to =uyer whi$e #i0ed price
contract may tran(#er ri(2 to (e$$er
Mitigate: Lowerin% the impact to =e within accepta=$e thre(ho$d $e,e$(. E% Q $e((
comp$e0 proce((e(
1ccept: Team a%ree( not to do anythin% and perhap( e(ta=$i(h a contin%ency
re(er,e? time? money? re(ource( to hand$e (uch ri(2( Q e% Q natura$ di(a(ter(.
!'! Study Note( >an 1? 91 !a%e :6
Positive &isk Strategies(
2$ploit: E0p$oit re(pon(e( =y a((i%nin% mo(t ta$ented re(ource( to pro"ect
Share: 7i(2J(harin% partner(hip(? (pecia$ purpo(e companie(? "oint ,enture(
2nhance: Ta2e (tep( to increa(e the pro=a=i$ity. E% Q addin% more re(ource( to
end acti,ity ear$y
1ccept: +o nothin% =y not acti,e$y pur(uin% it. E(ta=$i(h contin%ency re(er,e.
Accept i# it come( a$on%.
&isk &egister pdates ! Contingency Planning
#all back plans Q proactively p$anned (hou$d primary re(pon(e pro,e inade8uate
&esidal risks Q $e#t o,er ri(2( a#ter p$anned re(pon(e( ha,e =een ta2en? or tho(e that
ha,e =een de$i=erate$y accepted
Secondary risks Q one( that ari(e a( a direct outcome o# imp$ementin% a ri(2 re(pon(e
Contingency reserve Q are needed to =rin% the ri(2 o# o,errunnin% (tated pro"ect
o="ecti,e( to a $e,e$ accepta=$e to the or%ani&ation. &eactive a( it come( up =ecau(e o# a
tri%%er. Ca$cu$ated =a(ed on the 8uantitati,e ri(2 ana$y(i(
Se$ected ri(2 re(pon(e (trate%ie( may cau(e additiona$ -(econdary. ri(2( to occur.
Ana$y&in% (econdary ri(2( i( part o# the !$an 7i(2 7e(pon(e( proce((.
11.& Monitor and Control (i'"' (Monitor # Control)
!roce(( o# imp$ementin% ri(2 re(pon(e p$an(? trac2in%? monitorin%? identi#yin% new ri(2(?
e,a$uatin% the proce((? etcP
/npts %% Otpts
.1 7i(2 7e%i(ter
. !' p$an
.3 1or2 per#ormance
in#ormation
.1 7i(2 rea((e((ment
. 7i(2 audit(
E0amine and document
e##ecti,ene(( o# a ri(2 re(pon(e
.3 :ariance and trend
ana$y(i(
.) Technica$ per#ormance
mea(urement
.* 7e(er,e ana$y(i(
./ Statu( meetin%(
. O!A update(
.3 C7(
Correcti,e action(J contin%ency
p$an( A wor2around(.
!re,enti,e action(J documented
direction( to per#orm
.) !' p$an update(
%echnical Performance 1nalysis: wei%ht? tran(action time(? Z o# de$i,ered de#ect(?
(tora%e capacity? etcP
&eserve 1nalysis: Compare( the amount o# contin%ency re(er,e( remainin% to the
amount o# ri(2 remainin% at any time in the pro"ect to determine ade8uacy
!'! Study Note( >an 1? 91 !a%e :-
Chapter 12: Project Procurement Management
Thi( inc$ude( the contract mana%ement and chan%e contro$ proce((e( re8uired to de,e$op
and admini(ter contract( or purcha(e order( i((ued =y authori&ed pro"ect team mem=er(.
+ependin% on app$ication area? a contract can a$(o =e ca$$ed a( an a%reement? an
under(tandin%? a (u=contract? or a purcha(e order. A( contract( are $e%a$ =indin%? they are
(u="ected to more e0ten(i,e appro,a$ proce((. Enterin% into a contract i( a method o#
a$$ocatin% the re(pon(i=i$ity #or mana%in% or (harin% potentia$ ri(2(.
12.1 Plan Procrement' (Planning)
Thi( i( the proce(( o# documentin% pro"ect purcha(in% deci(ion(? (peci#yin% approach?
and identi#yin% potentia$ (e$$er(. 1hether to ac8uire out(ide (upport? i# (o what and how?
and how much and when.
/npts %% Otpts
.1 Scope =a(e$ine
. 7e8uirement(
documentation
.3 %eaming agreements
The(e are $e%a$ contractua$
a%reement( #or partner(hip andBor
"oint ,enture.
.) 7i(2 re%i(ter
.* 7i(2Jre$ated contract
deci(ion(
A%reement( inc$udin% in(urance?
=ondin%? (er,ice(.
./ Acti,ity re(ource
re8uirement(
.4 !ro"ect (chedu$e
.6 Co(t per#ormance
=a(e$ine
.19 EEF
.11 O!A
.1 'a2e or =uy ana$y(i(
'a2e ,( Buy and i# Buy:
!urcha(e ,( Lea(e
Buy co(t( (hou$d con(ider actua$
outJo#Jpoc2et direct co(t( to
purcha(e and indirect co(t( o#
(upportin% the purcha(e proce((
and item
. E>
.3 Contract type(
Sharin% o# ri(2( =etween partie(
,ia Fi0ed !rice or Co(t
7eim=ur(a=$e. Third hy=rid i(
ca$$ed Time 3 materia$.
.1 !rocurement m%mt p$an
. !rocurement SO1
Thi( i( created #or each
procurement in (u##icient detai$.
.3 'a2e or =uy deci(ion(
.) !rocurement document(
E%J Tender? =id? 8uotation? 7FI?
7F!? IFB
.* Source (e$ection criteria
Denera$$y part o# procurement
document( to rate B (core
potentia$ (e$$er( acro(( ,ariou(
dimen(ion(. Source Se$ection N
-1ei%htW!rice. A
-1ei%htW;ua$ity.
./ C7(
!'! Study Note( >an 1? 91 !a%e :9
#i$ed Price Contracts(
#irm #i$ed Price Contracts (##P): !re#erred #or mo(t =uyin% or%ani&ation a(
price i( (et at the out(et with c$ear (peci#ication. Best of byerJ Cost overrns
borne by seller
#i$ed Price /ncentive #ee Contracts (#P/#): Di,e( =uyer 3 (e$$er (ine
#$e0i=i$ity #rom per#ormance? with #inancia$ incenti,e( tied to achie,in% a%reed
metric(. Fina$ contract price i( determined a#ter comp$etion o# wor2 =a(ed on
(e$$erI( per#ormance. A price cei$in% i( (et and anythin% a=o,e i( re(pon(i=i$ity o#
the (e$$er.
#i$ed Price *ith 2conomic Price 1djstment Contracts (#P;2P1): F(ed
when (e$$erI( per#ormance period (pan( acro(( many year(. Fi0ed price contract?
howe,er with a (pecia$ pro,i(ion a$$owin% #or preJde#ined #ina$ ad"u(tment( to
contract price( due to chan%e( (uch a( in#$ation? co(t increa(e(Bdecrea(e( #or
(peci#ic commoditie(. Thi( protects both byer K seller.
Cost reimbrsable Contracts (
Cost Pls Percentage of Costs (CPPC)( 'orst for byer
Cost Pls #i$ed #ee Contracts (CP##): Se$$er i( reim=ur(ed #or a$$ a$$owa=$e
co(t( A recei,e( #i0ed #ee payment ca$cu$ated a( a percenta%e o# e(timated pro"ect
co(t(. Fee amount chan%e( on$y due to (cope. Best for sellerJ ,ee is sellerHs profit
Cost Pls /ncentive #ee Contracts (CP/#)( Se$$er i( reim=ur(ed #or a$$
a$$owa=$e co(t( A recei,e( predetermined incenti,e #ee =a(ed on per#ormance
o="ecti,e(. I# the #ina$ co(t i( $e(( than ori%ina$ e(timated? then =oth =uyerB(e$$er
(hare co(t( =a(ed upon a preJne%otiated ratio $i2e 59B9. 'in!*in
Cost Pls 1*ard #ee Contracts (CP1#)( Se$$er i( reim=ur(ed #or a$$ a$$owa=$e
co(t( A ma"ority o# #ee i( earned =a(ed on (ati(#action o# certain per#ormance
criteria. Determination is based by buyer and is not subject to appeals generally.
Byer discretion
%ime and Material Contracts (%KM) L *in!*in
!'! Study Note( >an 1? 91 !a%e ::
Are a hy=rid type o# contractua$ arran%ement( that contain a(pect( o# =oth co(tJ
reim=ur(a=$e and #i0edJprice contract(. 1hen preci(e (tatement o# wor2 cannot =e
de(cri=ed? ac8ui(ition o# e0pert( B (upport i( ta2en on an open ended contract and
may=e (u="ected to a co(t increa(e #or the =uyer. 'any or%ani&ation( re8uire not
e0ceedin% time and co(tin% $imit( in the contract to pre,ent un$imited co(t %rowth.
Fnit $a=or andBor materia$ rate( can =e pre(et =y =uyer A (e$$er.
12.2 Condct Procrement' (Exection)
Thi( in,o$,e( o=tainin% (e$$er re(pon(e(? (e$ectin% a (e$$er? and awardin% a contract.
Contract( B !rocurement document( (hou$d =e #$e0i=$e enou%h to a$$ow (e$$er (u%%e(tion(
#or impro,ement
/npts %% Otpts
.1 !rocurement m%mt p$an
. !rocurement document(
.3 Source (e$ection criteria
.) ;ua$i#ied (e$$er $i(t
!reJ(creened =a(ed on
8ua$i#ication( and pa(t
e0perience.
.* Se$$er propo(a$(
./ !ro"ect document(
.4 'a2e or =uy deci(ion(
.5 Teamin% a%reement(
.6 O!A
.1 Bidder con#erence(
<e$d prior to (u=mitta$ o# a =id B
propo(a$. To e(ta=$i(h c$ear and
common under(tandin% without
any pre#erentia$ treatment.
. !ropo(a$ e,a$uation
techni8ue(
.3 Independent e(timate(
'ain$y e(ta=$i(hed =y
independent e(timator( to en(ure
that co(t( are not way o## that can
%i,e an indication that (e$$er i(
unc$ear A ha( am=i%uity.
.) E>
'u$tiJdi(cip$e re,iew team
inc$udin% (a$e( A $e%a$ A etc
.* Ad,erti(in%
./ Internet (earch
.4 !rocurement ne%otiation(
The !' may not =e the $ead
ne%otiator on procurement(.
!re(ent #or (upport and ad,i(e
any c$ari#ication on pro"ect
re8uirement(.
.1 Se$ected (e$$er(
<i%h comp$e0? ,a$ue? ri(2 are
(e$ected =y (enior m%mt
. !rocurement contract
award
Can =e !urcha(e Order or a
comp$e0 document
.) C7(
.* !' p$an update(
./ !ro"ect document update(
Sole Sorce re#er( to a mar2et condition in which on$y one 8ua$i#ied (e$$er e0i(t( in the
mar2et.
Single Sorce re#er( to a mar2et condition in which the company pre#er( to contract with
on$y one (e$$er.
Oligopoly re#er( to a mar2et condition where ,ery #ew (e$$er( e0i(t? and the action o# one
(e$$er wi$$ ha,e impact on other (e$$er pri&e(.
!'! Study Note( >an 1? 91 !a%e :<
Centrali0ed Contracting re#er( to a (eparate contractin% o##ice that hand$e( contract( #or
a$$ pro"ect(. In )e;centrali0ed Contracting a contract admini(trator i( a((i%ned #or each
pro"ect.
#orce majere i( a power#u$ and une0pected e,ent? (uch a( hurricane or other di(a(ter.
Privity i( contractua$ in#ormation =etween cu(tomer and ,endor.
#ait 1ccompli mean( thin%( a$ready done -ne%otiation di(traction techni8ue.
12.3 .dmini'ter Procrement' (Monitor # Control)
Thi( in,o$,e( mana%in% procurement re$ation(hip(? monitorin% contract per#ormance? and
ma2in% chan%e( and correction( a( needed. 'onitor payment(? re,iew (e$$er per#ormance
a( per term(? mana%in% termination(. Contract( can =e amended prior to contract c$o(ure
=y mutua$ con(ent.
/npts %% Otpts
.1 !rocurement document(
. !' p$an
.3 Contract
Se$$er de,e$oped documentation B
de$i,era=$e A (e$$er per#ormance
report(
.* Appro,ed C7(
./ 1or2 per#ormance
in#ormation
.1 Contract chan%e contro$
(y(tem
. !rocurement
per#ormance re,iew(
.3 In(pection( and audit(
Can =e conducted durin%
e0ecution to ,eri#y comp$iance in
(e$$er(I proce((e( B de$i,era=$e(.
.) !er#ormance reportin%
.* !ayment (y(tem(
Account( !aya=$e modu$e
./ C$aim( admini(tration
Claims? )isptes? appeals are
documented? proce((ed?
monitored and mana%ed. Ca$$ed
a( 1lternative )ispte
&esoltion (1)&). Sett$ement
,ia ne%otiation i( pre#erred. Other
techni8ue( inc$ude mediation?
ar=itration A $iti%ation which i(
$ea(t de(ira=$e.
.4 7ecord( mana%ement
(y(tem
To mana%e a$$ procurement
re$ated documentation A record(
.1 !rocurement
documentation
. O!A update(
.3 C7(
.) !' p$an update(
12.4 Clo'e Procrement' (Clo're)
It in,o$,e( ,eri#ication that a$$ wor2 and de$i,era=$e( were accepta=$e A #ina$i&in% open
c$aim(. Fnre(o$,ed c$aim( may =e (u="ected to $iti%ation a#ter c$o(ure.
!'! Study Note( >an 1? 91 !a%e :=
/npts %% Otpts
.1 !' p$an
. !rocurement
documentation
.1 !rocurement audit(
. Ne%otiated (ett$ement(
.3 7ecord( mana%ement
(y(tem
.1 C$o(ed procurement(
Buyer %i,e( a written notice that
contract i( comp$eted.
. O!A update(
C$o(ure (hou$d =e in #orm o# #orma$ written. %lose roject before %losing rocurements.
!'! Study Note( >an 1? 91 !a%e :>

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