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ESI International

PMC:CPM:EN:000 ver. 2.0


Introduction
1
Welcome
Emergency phone number
Local emergency exit procedures
Floor and facility layout
Start and end expectations
Breaks
Attendance
Agenda
Passing this course
Ground rules
ESI International
PMC:CPM:EN:000 ver. 2.0
Introduction
2
Course Overview
Module 1: Introduction to Project Management
Module 2: Project Initiation
Module 3: Project Planning
Module 4: Project Implementation
Module 5: Project Closeout
ESI International
PMC:CPM:EN:000 ver. 2.0
Introduction
3
Course Scope
This course does
Teach the fundamentals, tools,
and concepts of project
management
Discuss the role of the project
manager and the team
members in managing a project
Practice the fundamentals of
project management
This course does not
Teach everything there is to
know about project
management
Cover all topics of project
management in great depth
Teach everything you need to
know for the credentialing
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 416.
ESI International
PMC:CPM:EN:000 ver. 2.0
Introduction
4
Standards and Best Practices
A standard is a basis for uniformly measuring or specifying
performance.
1
A best practice is a generally accepted process or technique that
consistently outperforms and delivers greater value and benefits
within a discipline.
ESI International
PMC:CPM:EN:000 ver. 2.0
Introduction
5
Global Best Practices in Project Management
Global best practices in project management are promoted through
the following:
Various project management standards organizations, including
Project Management Institute (PMI)
International Project Management Association (IPMA)
Association for Project Management (APM)
International Organization for Standardization (ISO)
Practicing experts within the field
Your organization
ESI International
PMC:CPM:EN:000 ver. 2.0
Introduction
6
Course Objectives
By the end of this course, you will be able to
Describe the roles and responsibilities of project managers across
the project life cycle
Define and develop the foundations of a project plan, including the
requirements document, work breakdown structure (WBS), budget,
schedule, and other resources
Manage and control the project against the baseline
Close out a project effectively
ESI International
PMC:CPM:EN:000 ver. 2.0
Introduction
7
Participant Introductions
Name
Location
Years in current organization
Project experience
Expectations of this course
Most challenging project you have
worked on
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 1
1-1
Introduction to Project Management
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 1
1-2
Objectives
By the end of this module, you will be able to
Identify the fundamental concepts of project management
Describe project processes that make up every project
Identify the roles and responsibilities of the project manager
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PMC:CPM:EN:000 ver. 2.0
Module 1
1-3
What Is a Project?
Projects are
Temporary
Unique
Time-based
Project Management
Is using the resources you have to get the job done successfully
Good project management discipline helps to ensure project
success.
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PMC:CPM:EN:000 ver. 2.0
Module 1
1-4
How Does a Project Fit into the Bigger Picture?
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Module 1
1-5
Discussion
Why Does a Project Fail or Succeed?
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PMC:CPM:EN:000 ver. 2.0
Module 1
1-6
Project Constraints
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Managing Projects Using Project Constraints
Balancing the constraints to complete
the project
Combining art and science
Defining and refining the project on an
ongoing basis
Managing project constraints involves a
constantly changing balance.
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 416.
2
PMBOK is a registered mark of the Project Management Institute, Inc.
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 1
1-8
Some Global Standards Governing Project
Management
A standard is a "basis for uniformly measuring or specifying
performance."
1
A Guide to the Project Management Body of Knowledge
(PMBOK

Guide
2
)
Project Management Institute (PMI)
Identifies the subset from overall project management
knowledge that is generally recognized as good practice
Provides and promotes common language and vocabulary
The APM Body of Knowledge
Association for Project Management (APM), a UK-based
member of the International Project Management Association
(IPMA)
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PMC:CPM:EN:000 ver. 2.0
Module 1
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Some Global Standards Governing Project
Management (continued)
PRojects IN Controlled Environments (PRINCE2)

Template-based approach to project management that


originated in the UK
ISO 21500:2012, Guidance on Project Management
Joint venture between
International Project Management Association (IPMA)
International Organization for Standardization (ISO)
Project Management Institute (PMI)
Guidance on project management for any organization and
any type of project regardless of complexity or size
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Project Management Best Practices
Project management has many areas to focus on and pay attention:
Integration Human resources
Scope Communications
Time Stakeholder expectations
Cost Risk
Quality Procurement/contracting
Value Governance
Benefits Competency
Health safety and environment
For more information, See the PMBOK Guide and the APMBoK.
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Module 1
1-11
Project Life Cycle
Projects are usually divided into phases to provide
Extra control to manage the completion of deliverables
A common understanding or frame of reference when
discussing project status
A quick guide to the work being done on a project; the start,
middle, and end
Collectively, these phases make up the project life cycle.
Project life cycles depend on the organization and the product or
service being built.
Appendix A: Typical Project Life Cycles
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Project Management is an Iterative Set of
Processes
The five basic project process groups in the image below are
Initiating Activities to start up/begin a project or phase
Planning Activities to organize and prepare for a project or phase
Executing Activities to coordinate and accomplish work of a
project or phase
Monitoring and Controlling Activities to manage and direct the
implementation of a project or phase
Closing Activities to close down and end a project or phase
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PMC:CPM:EN:000 ver. 2.0
Module 1
1-13
Project Life Cycle Key Documentation
Appendix B: Generic View of Project Documentation
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Module 1
1-14
Project Manager 's Roles and Responsibilities
A project manager is the one responsible and accountable for the
successful coordination and execution of a project to meet the needs and
requirements of project stakeholders on time and on budget.
Roles and Responsibilities
Define the project scope and clarify requirements.
Select, build, and lead a project team.
Identify/assess stakeholders.
Develop the project plan, including the budget and schedule.
Manage and control project risks.
Manage all project changes.
Manage the project constraints.
Manage stakeholder needs and expectations.
Monitor and report the project progress and status.
Monitor the quality metrics.
Manage expectations and watch for and react to future trends.
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PMC:CPM:EN:000 ver. 2.0
Module 1
1-15
Discussion
What makes a great project manager great?
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PMC:CPM:EN:000 ver. 2.0
Module 1
1-16
Skills Needed by Project Managers
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 342.
2
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 348.
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Module 1
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Key Messages
A project is a temporary undertaking to create a unique product or
service.
1
Project management is the application of knowledge, skills, tools,
and techniques to project activities to meet or exceed stakeholder
needs and expectations from a project.
2
Project managers must balance the project constraintscost,
scope, time, risk, quality, and resourceover the life of the project.
The phases of a project (which often vary by type of project) make
up the projects life cycle.
An example of a project life cycle is initiation, planning,
implementation, and closing.
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Key Messages (continued)
Five interacting process groups work together to make up a project:
initiating, planning, executing, monitoring and controlling, and
closing.
Activities and processes within the five process groups are
categorized within the nine knowledge areas.
To be effective, project managers need to have hard skills, such
as planning and budgeting, as well as soft, people-related skills
like communicating and conflict resolution.
The project managers primary role is to manage the project, but
also important are the related roles of planning, leading,
communicating, negotiating, and problem solving.
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PMC:CPM:EN:000 ver. 2.0
Module 1
1-19
Next Steps: Action Plan
How can you apply what you learned in this module to your work
environment?
Turn to the Action Plan tab and find the worksheet for this module.
Develop a list of actions to complete when you return to work.
For each action (what), identify
Who needs to be involved
When you anticipate completing the action
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PMC:CPM:EN:000 ver. 2.0
Module 1
1-20
Next Steps: Action Plan (continued)
Take a few minutes to think about what you have learned during
class and review the questions below.
What are the project life-cycle phases called in your organization? If
you don't use a life-cycle framework, how might you go about
introducing it?
Recall a recent project in which one of the project constraints
changed. What happened to the other constraints?
Given the same situation and what you have just learned, how
would you now handle the change?
How does your project fit within your organizations setup?
Why are people skills so important for a project manager?
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 2
2-1
Project Initiation
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-2
Objectives
By the end of this module, you will be able to
Identify stakeholders and organizational influences on a project over
its life cycle
Describe quantitative and qualitative methods for project selection
Create SMART (specific, measurable, agreed-upon, realistic, time-
constrained) objectives
Document project requirements from identified needs
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 2
2-3
The Project Life Cycle
Initiation Phase
Conduct a high-level stakeholder assessment.
Assess business needs and opportunities.
Evaluate financial benefits and costs.
Determine objectives and requirements.
Identify the purpose/components of a project charter.
Prepare requirements documentation.
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-4
Influences on a Project
Projects are influenced by
Key stakeholders
Project sponsor
Project manager
Customer
Vendors and
suppliers
Other stakeholders
Internal factors
System
Organizational
structure
Culture
Business/
organizational
need
External factors
Social
Economic
Environmental
Market demand
Regulations
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PMC:CPM:EN:000 ver. 2.0
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Identifying Key Stakeholders
Who are the stakeholders? Consider
Who gets the output from the project?
Who provides the input?
Who has oversight?
Who has other related responsibilities?
Who reaps the rewards?
Who suffers the penalties?
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-6
Stakeholder Identification and Assessment
To determine the best approach to managing stakeholder
expectations throughout the whole project
Identify the key stakeholders
Analyze them on
Interest in the project
Power to impact the project
Engagement to the project
Identify their needs and expectations
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-7
Types of Stakeholders
Tool: Stakeholder Register (Simple)
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-8
Understanding the Roles of Governance
Senior management includes your leaders/managers:
Program managers
Division heads
Vice presidents
Managing partners
Sponsor
Portfolio manager
Usually, they use governance policies to select and initiate projects.
As a project manager, think
What do they need from me?
What do I need from them?
How do they want my project governed?
How do I escalate and resolve issues?
How does my project align with and support my organization
strategy?
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-9
Case Study 2-1
Good Answers Is Growing: Introducing Your
Next Project
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2-10
Assess Business Needs and Opportunities
Project concepts originate in response to
Product obsolescence
Competitive forces
Customer/client requirements
Employee suggestions
Process improvement
Business transformation
Organizational change
Regulatory changes
Projects should support the organization's major business and
strategic goals.
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-11
Project Selection
Selection practices are unique to each organization.
Best practices encourage objectivity.
Project selection is rarely purely quantitative.
Selection should align with an organization's strategic intent.
Selection is an integral part of an organization's balanced portfolio.
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Selection Tools
Qualitative Factors Quantitative Factors
Stakeholder bias
Organizational fit
Risk analysis
Scoring models
Benefit-cost ratio (BCR)
Present value (PV)
Net present value (NPV)
Payback period
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-13
Benefit-Cost Ratio (BCR)
A comparative analysis of benefits to costs:
Example:
Project A will charge $100,000 (cost) and generate $150,000 in
value (benefit).
Project B will charge $100,000 (cost) and generate $160,000 in
value (benefit).

Which has a higher BCR?
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-14
Present Value (PV)
What is the value today of future cash flow?
Remember
PV = present value of money
FV = future value
i = interest rate (also known as internal discount rate or cost of
capital)
n = number of time periods from today
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-15
Present Value (PV) (continued)
Someone wants to repay your invoice of $1,000 by waiting until the
end of next year (today is Jan. 1) and will pay you $1,250 at the end
of next December.
Lets assume your organizations cost of capital is 15%.
Is this a good deal?
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-16
Net Present Value (NPV)
To determine the value of an investment over time
Add the PV from each year to determine the Total Benefit:
Use the following formula to determine NPV:
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PMC:CPM:EN:000 ver. 2.0
Module 2
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Net Present Value (NPV) (continued)
Which project is financially smarter?
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Payback Period
How long it will take to balance the cost of the project before turning
a profit
Which has the shorter payback period?
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PMC:CPM:EN:000 ver. 2.0
Module 2
2-19
Exercise 2-1
Net Present Value
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2-20
Project Charter
A document issued by the project approver that authorizes the
existence of a project
Acts as the written agreement between senior management, the
project manager, and functional managers
Delineates preliminary roles, responsibilities, authority, and
accountability
Describes project scope, including high-level requirements and risks
Documents business needs and a current understanding of the
product service or result
Documents a high-level milestone schedule and budget
Summarizes, as a minimum, the preliminary boundaries of a project
Tool: Project Charter
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The Right Start
Needs are formalized into
Objectives
Requirements
Business
User
Functional
Technical
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Needs Assessment
Collect requirements to define and document the needs of the
project.
Needs exist on various levels.
Needs should be separated from wants.
Projects are often built on conflicting needs.
Customers often do not know, or understand, their needs.
Review the organizations methodologies and internal
processes.
Needs are assessed passively through document review,
questionnaires, surveys, analyses, and audits.
A participative needs assessment can be done using interviews,
focus groups, facilitative workshops, and prototypes.
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Formulating Good Objectives
Objective
An understanding between someone who needs something and
someone who can provide it
Exists at all levels (corporate, project, work team, specific task)
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Requirements and Specifications
Functional/Nonfunctional
Requirements
Technical Specifications
Written in business language Written in technical language
Solution agnostic Particular technology solution
Performance characteristics Design specifications
Customer/client view Build team view
Product features & capabilities Sometimes called "specifications"
Key problems:
Customers dictating the technical solution
Team members rewriting customer requirements (outside of the
change process)
Tool: Requirements Checklist (Basic)
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Case Study 2-2
Working with Customers to Develop Good
Requirements
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Requirements Documentation
Project requirements document (PRD)
Lists what the project is to do
Links the project requirements to business objectives
Business requirements document (BRD)
Lists the TO-BE solution
Maps business goals and needs to solution scope and
requirements
Requirements work plan
Documents how requirements are to be collected
Incorporated into the project management plan
Traceability matrix
Maps each requirement through the life of the project
Tool: Traceability Matrix (Basic)
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Project Requirements Document
A formal document used to communicate requirements for project
stakeholders
Documents the project objectives and identifies and prioritizes
requirements
Supports the business case
Drafted by the project team and approved by senior management/
key stakeholders
Provides a basis for planning and designing the product/solution,
including cost and time estimates
Reduces the amount of rework on the project
Tool: Project Requirements
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Case Study 2-3
Off to a Strong Start: Creating a Project
Requirements Document
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From Initiation to Planning
Charter/PRD
Tools used (*key project management documents):
Tool: Project Charter*
Tool: Project Requirements*
Tool: Requirements Checklist (Basic)
Tool: Stakeholder Register (Simple)*
Tool: Traceability Matrix
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Key Messages
Internal and external factors influence every project.
Senior management usually selects and initiates a project.
Qualitative methods and quantitative considerations enter into
project selection.
Projects originate for many reasons, from product obsolescence to
client requirements to individual innovation.
Needs must be assessed, objectives set, and requirements defined
so that specifications can be set.
Customers define the requirements.
The project team develops the technical specifications.
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Key Messages (continued)
A project charter spells out the roles and responsibilities of the
project manager, key members of the project team, and input from
other organizational agencies.
The requirements documentation comes in many forms: project
requirements documents and business requirements documents.
The PRD is the official document that describes the identified
project requirements.
The requirements traceability maps the evolution of the
requirements from the beginning to the end of the project.
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PMC:CPM:EN:000 ver. 2.0
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Next Steps: Action Plan
How can you apply what you learned in this module to your work
environment?
Turn to the Action Plan tab and find the worksheet for this module.
Develop a list of actions to complete when you return to work.
For each action (what), identify
Who needs to be involved
When you anticipate completing the action
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 2
2-33
Next Steps: Action Plan (continued)
Take a few minutes to think about what you have learned during
class and review the questions below.
In the past, what steps have you taken to ensure you have identified
all of the stakeholders in your projects? What can you do to ensure
you do so in the future?
In the past, have you been successful in identifying who senior
management is and what they need? Remember to ask yourself,
What do they need from me and what do I need from them?
Historically, how has your organization identified needs, written
good objectives, and created both functional and technical
requirements? What can be done in the future to improve how this
is done on your project?
What uses can you see in your organization for a project charter
and a PRD?
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 3
3-1
Project Planning
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 3
3-2
Objectives
By the end of this module, you will be able to
Assemble the core project team to plan a project
Document the project scope in a scope statement
Document the project work in a WBS
Complete and interpret work estimates
Identify the appropriate resources necessary for a project
Build a project schedule
Estimate and interpret project costs
Identify strategies for dealing with positive and negative risks
Explain the basics for procuring external goods and services
Explain the relevance of communications and quality planning
Complete and interpret a project management plan
Define and interpret baselines
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 3
3-3
The Project Life Cycle
Planning Phase
Build the core project team.
Build a WBS.
Estimate durations, costs, and resources.
Develop the project schedule.
Conduct risk management and risk response planning.
Develop subsidiary management plans, including communication
and quality plans.
Develop the project management plan.
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PMC:CPM:EN:000 ver. 2.0
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3-4
Core Project Team
A core group of key people should
Include a representative from the major business functional
areas
Not be the whole team
Not be senior management
The core team should be self-directed and interactive.
Project management tip: Get the right people with the right skills
and knowledge on the core team!
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PMC:CPM:EN:000 ver. 2.0
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The Project Management Plan
Book of Plans: How best to manage this project; a place to document
key project decisions
What life cycle is best to be used? Why?
What level of detail is required on activities? Why?
What tools/techniques are being used? Why?
How will the selected processes
Be used?
Actually work?
Integrate with other processes?
How will the integrity on the baseline be maintained?
What are the key management reviews to be accomplished? When
and with what information?
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 397.
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PMC:CPM:EN:000 ver. 2.0
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3-6
Scope Management
Scope: "The sum of the products
and services to be provided by the
project."
1
Scope statement: Describes in
detail the projects deliverables and
the work necessary to complete the
deliverables
Scope was outlined in the projects
Initiation phase; now it is time to focus on
what is specifically in scope and what is
not in scope.
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 470.
2
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 470.
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PMC:CPM:EN:000 ver. 2.0
Module 3
3-7
Work Breakdown Structure (WBS)
The WBS is
A hierarchical structured grouping of project elements that
organizes and defines the total scope of the project
1
Each descending level is an increasingly detailed definition of a
project component for each descending level of the WBS.
2
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Key WBS Terms
Control Account Work Package Planning Package
Is typically above
the work package
level
Is the level for
management
reporting
Is the level where
costs are accrued
and monitored
Is the level where
work is assigned
and monitored
Is the basic level
for addressing
schedules, cost,
and resources
needed
Is the lowest level
of the WBS
Is primarily used
with rolling wave
planning
Is below the
control account
Is a work package
with known work
content that has
not been detailed
or scheduled
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WBS Models (Graphical)
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WBS Models (Outline/Indented)
1.0 Management Information Software System
1.1 Assess needs
1.1.1 Measure state of current system
1.1.1.1 Identify components of current system
1.1.1.2 Analyze components of current system
1.1.2 Determine future capability requirements
1.1.2.1 Perform gap assessment
1.1.2.2 Identify required changes
1.1.3 Develop alternative approaches
1.1.3.1 Identify alternative approaches
1.1.3.2 Analyze alternative approaches
1.2 Develop specification
1.2.1 Develop preliminary software and hardware
specifications
1.2.2 Develop detailed software specifications
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Discussion
What Are Some Important Benefits and Uses
of a WBS?
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Building a Work Breakdown Structure (WBS)
As a team
1. Understand the purpose of your project
2. Review existing templates, WBSs from past projects, and historical
records such as lessons learned
3. Establish the major breakout segments of the work
4. Break down these large pieces into the next level of components
5. Break down each component into subcomponents
6. Continue down to the level where you will assign and monitor
project work
7. Hold a review session with the core project team, client, and other
key stakeholders to gain buy-in and identify missing items
8. Prepare the WBS dictionary
Tool: WBS Checklist
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WBS Dictionary
Is not a book of terms and definitions
Provides detailed information on those work packages that need
further clarification
Captures critical information about the activity such as, but not
limited to
WBS task name and number
Task description including deliverables to be produced and
deliverables schedule
Resource requirements and assignments
Preceding/subsequent activities
Cost estimates
Quality requirements
Contains varying content, depending on the need for information
Tool: WBS Dictionary
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Case Study 3-1
Creating the Project's WBS
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Translating the WBS into the Schedule
The WBS identifies the work to be donein work packages.
Work packages are further broken into activities that specify the
work necessary to complete the work packages.
Activities are used as a basis to quantify estimates of
Duration
Cost
Resources
Schedule dependencies
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 151.
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Estimating
Forecasting the cost, schedule, and resource requirements needed
to produce a specific deliverable
1
Estimating is a deliberate process:
The quality of the estimate leads is directly proportional to the
quality of the project schedule and budget.
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Good Estimating Practices
Acknowledge the level of accuracy:
Estimates can and should be done at varied levels of
accuracy.
Communicate the level of accuracy with the estimate.
Get input from many sources:
In-house sources
Outside sources
Professional organizations
Document your assumptions.
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Estimating Techniques
STET
Parametric
Historical
Three-point
PERT (Program Evaluation and Review
Technique)
Wideband Delphi
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Three-Point Estimating Formulas
Where:
O = optimistic P = pessimistic ML = most likely E = expected
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Creating the Schedule
Estimates the time duration to complete the project
Establishes relationships between various work packages
Benefits from the use of tools only when accurate information is
used
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 142.
2
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 470.
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Considerations for Estimating Activity Duration
Effort: "Number of labor units required to complete an activity"
1
Work period: Unit of time when resources are generally available
to perform work (8 hours = 1 day)
Working time: "Period of time in which actual work on a project can
be, and should be, completed"
2
(24 hours effort = 3 workdays)
Elapsed time: Accounts for all calendar time (weekends, holidays,
and breaks) and not just time spent on a project (24 hours = 1
elapsed day)
Availability: The time that a resource is present, ready for, and
capable of performing the work
Productivity: Measure of efficiency of a resource in performing
work
Interruptible duration: Work time that is not contiguous
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Common Scheduling Tools
Network diagram
Schematic display of the logic relationships of project
activities
Best for analysis
Gantt chart
Easiest to make and understand
Appropriate for smaller projects
Project calendar
High-level details
Quick public way to show project responsibilities
Milestones
Summary-level scheduling showing significant events that
include completion of major deliverables
Consume no resources or time
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Network Diagrams
The chronological relationship between scheduled activities is
shown.
Activities are represented by boxes.
Dependencies are represented by arrows.
Multiple arrows (dependencies) are possible.
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Transforming a WBS into a Network Diagram
Work package: Install new building fire alarm system
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Uses of the Network Diagram
Step Action Result
Forward Pass By path, start at the beginning, add
all durations together
Duration of the
project
Backward Pass By path, start at the end, subtract
all durations
Float
Path Analysis By path, review each path for the
least amount of float
Critical path
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Forward Pass
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Backward Pass
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 175.
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Float
Amount of time that an activity may be delayed from its early start without
delaying the project end date. Derived by subtracting the early start from
the late start or early finish from the late finish; it may change as the
project progresses and as changes are made to the project plan.
1
Calculated from the
network diagram after
completing a backward
pass
Indicates the amount of
flexibility the project
manager has to adjust
the timing of a particular
activity
Also called slack and
total float
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Determining Float
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Completed Network Diagram Showing Critical
Path
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Network Analysis
Analysis of the network reveals the
Duration of the project
Float
Critical path
Longest of all paths through the project
Shortest time to complete the project
Path with the least float/slack time
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Gantt Charts
A Gantt chart
Is a graphical representation of the project schedule that shows how
the work flows over time
Shows activity start and end dates and durations
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Project Calendar (Month 4)
The project calendar
Is a visual representation of what work needs to happen on a
certain day
Shows days, work hours, and weekends/holidays
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Milestone Charts
Milestones
Activities of zero duration
Take no time
Consume no resources
Record significant events or deliverables
Major project happenings (component X complete)
Funding points (30% of budget expended)
Key dates (Start of Sochi Winter OlympicsFebruary 7,
2014)
Serve as reminders to check on overall project status at key points
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Case Study 3-2
Network Diagramming
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Estimating Costs to Determining Budget
How much will the project cost?
Inputs:
Scope baseline
WBS
WBS dictionary
Project schedule
Roles and Responsibilities
Risk register
Outputs:
Cost estimates
Duration (time) estimates
Basis of estimates
Documentation on how estimates were determined
Documented assumptions and constraints
The precision range of estimates and confidence level
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Three Levels of Estimates
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Cost Components
Direct Costs
Labor
Internal
Contract
Materials and equipment
Other direct costs
Fees
Travel
Incidentals
Indirect Costs (Overhead)
General administrative
Headquarter (HQ) expenses
Fringe benefits
Depreciation
Marketing and sales
Research and development
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Cumulative Cost Curve
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Resource Planning
Plan for the resources you need to do the project:
People
Skills
Equipment
Facilities
Materials
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Human Resource Planning
How will I get the best resources and use who I have as best I can?
Planning for the project resources
Acquiring project resources
Developing, maintaining, and managing project resources
Replenishing project resources as needed
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Resource Planning Tools and Techniques
Roles and responsibilities
Resource Gantt chart
Resource loading table
Resource loading histogram
Resource leveling
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Roles and Responsibilities Matrix
The roles and responsibilities matrix identifies the appropriate
skill/person for each task and his or her role on that specific task.
Tool: Roles and Responsibilities Matrix
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Resource Gantt Chart
Horizontal bar chart showing duration of assignments for each
resource and activity
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Resource Loading Table
Structure that shows the resource allocation by time period
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Resource Loading Histogram
How available resources can be allocated over the life of the project
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Resource Leveling
Used to smooth the peaks and valleys of planned resources over a
period of time
Limit of no more than seven people involved
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 386.
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Risk
Risk event
"Discrete occurrence that may affect a project, positively or
negatively."
1
Probability of the risk event occurring
Impact (consequence) of that risk events occurrence
Based on the assessment of probability and impact, you should
prioritize the risk by
Best utilizing the available resources
Addressing the highest-impacting events first, then address
the remaining lower-impacting events as time and resources
allow
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 387.
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Risk Management Planning
"The procedures to be used to manage risk during the life of a
project."
1
Risks are threats or opportunities.
Risk planning is an integral part of project planning.
Individuals are assigned responsibility for managing certain areas of
risk
Risk management consists of eight processes:
Plan risk management
planning
Identify risks
Analyze risks quantitatively
and qualitatively
Prioritize risks
Plan risk responses
Execute risk responses as
appropriate
Evaluate and reidentify
Document options and
outcomes
Tool: Risk Register
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ESIs Risk Management Model
The circle below illustrates the 8 steps of ESIs risk management
model.
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Response Strategies for Threats
Threats
Accept: Prepare for and deal with a risk's consequences, either
actively (create a contingency fund) or passively (do nothing).
Mitigate: Reduce the probability and/or impact of a threat to an
acceptable threshold.
Transfer: Shift a threat's consequences to a third party.
Avoid: Eliminate the threat, usually by eliminating its potential
cause.
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Response Strategies for Opportunities
Opportunities
Accept: Prepare for and deal with a risk's consequences, either
actively (create a contingency fund) or passively (do nothing).
Enhance: Modify the potential of an opportunity by increasing
probability and/or positive impact and by identifying and maximizing
key drivers.
Exploit: Ensure that the opportunity is realized; eliminate the
uncertainty associated with a particular risk by making the
opportunity definitely happen.
Share: Allocate ownership to a third party best able to capture the
opportunity.
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Procurement Planning
Going outside the team to purchase or acquire
Materials
Services
People
The project manager becomes the customer
Selecting the contract type
Preparing procurement documents
Selecting the contractor (vendor)
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Selecting a Contract Type
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Preparing Procurement Documents
Procurement documents are used to solicit proposals from sellers. Some
of the most common ones are
Request for information (RFI)
Request for proposal (RFP)
Request for quotation (RFQ)
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Selecting a Contractor*
Evaluate and choose the best proposal or bid:
Technical
Business fit
Cost
Negotiate and award the contract.
*Also may be referred to as seller or contractor.
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Communication Planning
How will information flow during your project?
Who needs to know what?
How will you tell them?
How urgently and how often?
What do you make part of a permanent
record and how?
What technology will be used?
Who authorizes the release of classified
information?
What are the escalation processes?
What are the constraints on
communications?
Tool: Communication PlanDetailed
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 363.
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Planning for Project Quality
The process of identifying quality requirements and/or standards for the
project and product, and documenting how the project will demonstrate
compliance.
1
The project manager and team must
Plan for quality, perform quality assurance, and perform quality
control
Clarify quality policy duration
Link to customer's policy
Link to organization's strategy
Determine project standards and metrics for tasks within standards
Document how and when metrics will be measured
Document how project quality will integrate with product/service
score
Tool: Quality Plan
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Project Management Plan
The project management plan provides the road map to the
Implementation phase of a project.
Tool: Project Plan OutlineTypical
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Case Study 3-3
Planning for Success: Building the Project
Management Plan
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 32.
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Project Baselines
What: "Project management frame of reference established based
on the detailed project plan and incorporating the project's cost,
schedule, and quality objectives to provide a basis for measuring
progress, comparing planned and actual events and expenditure,
and identifying and executing changes to the project's scope of
work."
1
Scope
Cost
Schedule
Quality
Why: To define a standard against which project success can be
judged
When: Upon approval and endorsement of all baseline components
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Who Uses Baselines?
Customer
Project manager
Management
Accounting
Project team
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From Planning to Implementation: The Project
Plan
Tools used (*key project management documents):
WBS Checklist
WBS Dictionary
Roles and Responsibilities Matrix
Risk Register*
Communication PlanDetailed
Quality Plan
Project Plan OutlineTypical*
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Key Messages
The core project team is involved in project planning.
Understanding the scope is key to project planning.
A WBS is a hierarchical breakdown of the scope in order to better
plan for its completion.
Although a WBS has different formats, levels of detail, and ways of
being created, the work package is always the bottommost level.
Work packages break down into activities. It is these activities that
are used to build the network diagram that leads to the project
schedule.
A WBS dictionary provides important working-level information
about each work package.
Schedule planning involves determining the timing of the project,
including critical path and float, and may be presented in many
formats.
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Key Messages (continued)
Cost planning involves determining the direct costs that the work
packages required as well as indirect costs (overhead) allocated to
the project.
Resource planning covers people, materials, facilities, and other
resources.
Risks (both opportunities and threats) must be identified, analyzed,
prioritized, and planned for through the appropriate response
strategy.
Procurement planning involves deciding whether to procure outside
services and how to choose which outside entity to use.
Communication and quality round out the project managers
planning processes.
Baselines are used by stakeholders to measure how the project is
doing in reference to cost, scope, and schedule baseline.
All these processes come together in the project management plan.
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Next Steps: Action Plan
How can you apply what you learned in this module to your work
environment?
Turn to the Action Plan tab and find the worksheet for this module.
Develop a list of actions to complete when you return to work.
For each action (what), identify
Who needs to be involved
When you anticipate completing the action
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Next Steps: Action Plan (continued)
Take a few minutes to think about what you have learned during
class and review the questions below.
What form of WBS does your organization use?
Why is having a WBS for a project important?
Why is determining the critical path and float so important to your
project?
How can your organization benefit by having each project produce a
resource/responsibility matrix?
What is your organizations risk planning process? Is it effective?
What can you do to strengthen or enhance it?
What is your organizations procurement planning process? Is it
effective?
What can you do to strengthen or enhance it?
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Project Implementation
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Objectives
By the end of this module, you will be able to
Assess and monitor project performance based on cost, schedule,
scope, and quality baselines as well as stakeholder expectations
and team performance
Describe methods for managing and controlling change for a project
Address risks as they occur
Describe characteristics of an effective team, their roles and
responsibilities, and possible organizational team structures
Align project team performance with stakeholder expectations
Complete a performance report
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The Project Life Cycle
Implementation Phase
Execute
Develop the product or service
Monitor
Assess, monitor, and report project performance
Develop, monitor, and support the project team
Control
Manage change
Manage risk
Manage stakeholder expectations
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Assessing Project Performance
Monitoring
Continuous, ongoing
Used by project team to adjust the project
Evaluating
Periodic
Used by senior management and customers to adjust the project
Through status reports
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 462.
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Monitoring Project Performance
Compare against baselines:
Scope
Cost performance
Schedule
Identify variance:
Is the difference between a
plan and actual time, cost, or
performance
1
Responds as appropriate
Available techniques
Trend analysis
Critical path method
Critical chain method
Earned value management (EVM)
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Earned Value Management (EVM)
An objective look at project status
Schedule and cost variances
Assessing schedule, cost, and work status
Single system to integrate multiple assessments into a single
reporting structure
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How Is the Project Doing?
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EVM Terminology
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Variances
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Variances (continued)
Key EVM Tools and Techniques
Cost Variance Cost Performance Index
CV = EV AC CPI = EV / AC
Schedule Variance Schedule Performance Index
SV = EV PV SPI = EV / PV
Budget at Completion Estimate at Completion
BAC = Sum of all PVs EAC = BAC / CPI or BAC-EV
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Interpreting Earned Value Management (EVM)
Calculations
Generally good variance:
Ahead of schedule
Costs under budget
Positive values for cost
variance (CV) and schedule
variance (SV)
Ratios greater than 1 for cost
performance index (CPI) and
schedule performance index
(SPI)
Generally bad variance:
Behind schedule
Costs over budget
Negative values for CV and SV
Ratios less than 1 for CPI and
SPI
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Exercise 4-1
Earned Value Management Calculations
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Assessing Project Status
Time
Cost
Scope
Resources
Quality
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Indicators That Corrective Action Is Needed
Schedule slippage for a specific task on the critical path or for the
project as a whole
Over budget on a specific task on the critical path or for the project
as a whole
Inability to resolve problems promptly
Insufficient or high turnover in resources
Unmanaged changes in scope
Quality problems resulting in excessive rework
Changes in customer or user requirements
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Corrective Actions
Change the task relationships (fast-tracking).
Increase the resources (crashing).
Redistribute the resources.
Change the project solution design.
Use improved technology.
Change the contract scope.
Change suppliers.
Renegotiate the terms.
Use subcontractors.
Update the estimates.
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Ways to Speed Up Schedules
Crashing Fast-Tracking
Accelerates project
completion (to fight
schedule slippage) by
adding resources to critical
path activities
Anticipates increased
project costs
Selects activities that will
cost the least to crash
Carries out activities in
parallel on the critical path
to accelerate the schedule
Increases project risk
Requires greater level of
control and coordination
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Discussion
Based on the Network Diagram You Created
in Case Study 3-2, How Would You Apply
Crashing and Fast-Tracking Techniques?
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Performance Reporting
No matter the form, no matter the frequency, include these three
components:
What/how you have done since the last report (status)
What you anticipate in the near future (forecast)
Other key information the reader needs to know
The performance report needs to be constructed, updated, and distributed
in accordance with the communication plan.
Tool: Project Status Summary Report
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Case Study 4-1
How Are We Doing? Reporting Project
Performance
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Project Evaluation
Periodic project evaluations
Encourage timely adjustment
Facilitate midcourse corrections instead of waiting until the
end
Help with stakeholder communication
Outcomes of evaluation include
Continue as planned
Perform minor redirection
Perform major redirection
Terminate early
Shelve or put project on temporary hold
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Sunk Costs
Have already gone into the project and
cannot be recovered
Should not affect decisions about the
continuation of the project
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Managing Change
Change happens for many reasons and in many forms:
Customer
Team
Organizational management
Environment
Product obsolescence
Funding changes
Technology
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Change Control Board (CCB)

An organized systematic approach is helpful in managing change:

Tool: Change Request
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 80.
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Configuration Management
A configuration management system is a process used to apply technical
and administrative direction to
Document the functional and physical characteristics of an item or
system
Control any changes to such characteristics
Record and report each change and its implementation status
Support the audit of the products, results, or components to verify
conformance to requirements
1
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Managing Risk
Be proactive.
Monitor earlier assumptions.
Monitor changes in organizational risk tolerance over the course of
the project.
Watch for risk triggers and risk symptoms.
Implement responses, as needed, from your risk management plan.
Evaluate the effectiveness of the response and modify as needed.
Document what you do.
Reidentify and reassess risks again.
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Quality
Quality assurance (QA) includes all the activities and procedures
undertaken to ensure that quality is achieved.
What are the steps to performing a QA?
What characteristics should each QA activity include?
What are the most common QA tools?
Quality control (QC) includes all the activities and procedures
needed to analyze performance and identify and recommend
changes.
What are the steps to QC?
What are the most common QC tools?
Quality is planned into a project, not inspected in.
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 355.
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Developing the Project Team
"A project team is a group with complementary skills, a common purpose,
shared goals, and mutual accountability who share responsibility for
accomplishing project goals and who report to the project manager."
1
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Characteristics of an Effective Team
Right size
Common purpose
Common approach
Complementary skills
Clear set of objectives
Mutually accountable
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Acquiring Project Team Members
Preassignment by senior management
Selected by project manager via negotiation
Experience and skills
Interest
Personal traits
Availability
Productivity
Work style
Ability to work with others in a team environment
Buy/outsource
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Project Team Structures
Mirror image
Specialty
Directive
Self-managed
With todays technology, virtual teams can easily incorporate these
team structures.
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Virtual Teams
In virtual teams, communication is critical. Set aside the time to
establish
Clear expectations
Protocols for resolving conflict
Decision-making procedures
Clear communication links and channels
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Types of Teams
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How to Form a Successful Team
Define roles and responsibilities for the project manager and the
team members.
Delegate and share project management responsibilities.
Anticipate and constructively channel conflict.
Communicate the project scope and its alignment with business
objectives.
Allow and encourage diversity.
Work toward satisfying closure on project tasks.
Motivate the team and support team identity.
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Managing the Project Team
During development of the product/system, the project manager
must monitor and support the team.
Hold regular meetings with the team to identify and resolve any
development problems.
Ensure that the team is developing the product/system according to
the client's business requirements and the design specifications.
Provide the team with supplemental resources, if necessary, to
keep the project on track.
Manage conflicts.
Reward team members.
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Module 4
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Managing Stakeholder Expectations and
Engagements
Building and maintaining a relationship with stakeholders to satisfy their
needs and to be prepared to address project issues as they occur.
Managing expectations
Is anticipating the stakeholders reaction to any component of the
project
Increases the probability of project success
Decreases the risk that the project will fail to meet goals and
objectives
Is the responsibility of the project manager
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PMC:CPM:EN:000 ver. 2.0
Module 4
4-36
Techniques for Managing Expectations
Interpersonal Skills Management Skills
Active listening
Communication skills
Empathy
Conflict resolution
Trust building
Coaching others through
change
Critical thinking
Negotiation skills
Presentation skills
Facilitation skills
Problem solving
Decision making
Writing skills
Public speaking
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 460.
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Module 4
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Transition to Customer Acceptance
"Determining the correctness of the final product, system, or system
component with respect to the users requirements."
1
This means asking
Did you do what you said you were going to do?
Did you gain agreement on the scope activities and
deliverables having been completed?
Two steps
Dialogue with your team and check the WBS.
Dialogue with the customer.
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PMC:CPM:EN:000 ver. 2.0
Module 4
4-38
From Implementation to Closeout
Tools used (*key project management documents):
Project Status Summary Report*
Change Request*
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PMC:CPM:EN:000 ver. 2.0
Module 4
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Key Messages
Monitoring and controlling is ongoing and used by the team;
evaluating is periodic and used by senior management.
EVM and trend variance analysis shows the project manager the
difference between what was planned and what has occurred at a
certain point in time.
Performance reports should be prepared differently for different
audiences.
Risk response plans can be used to manage risks once they occur.
Change can be managed with a well-designed change management
system.
The project manager must develop, manage, and support the
project team for it to perform well.
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PMC:CPM:EN:000 ver. 2.0
Module 4
4-40
Key Messages (continued)
Conflict is inevitable and must be managed.
Validate scope against agreed-upon requirements.
The probability of project success increases when actively
managing stakeholders expectations.
Open lines of communication and good interpersonal skills are
beneficial in managing stakeholders expectations.
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PMC:CPM:EN:000 ver. 2.0
Module 4
4-41
Next Steps: Action Plan
How can you apply what you learned in this module to your work
environment?
Turn to the Action Plan tab and find the worksheet for this module.
Develop a list of actions to complete when you return to work.
For each action (what), identify
Who needs to be involved
When you anticipate completing the action
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PMC:CPM:EN:000 ver. 2.0
Module 4
4-42
Next Steps: Action Plan (continued)
Take a few minutes to think about what you have learned during
class and review the questions below.
Recall a recent project in which conflict was not dealt with efficiently.
What were the ramifications to the project?
Given the same situation and what you have just learned, how
would you handle the conflict?
What type of team structure does your organization generally use?
Is it effective?
What can you do to strengthen or enhance it?
How would a customers experience be changed if stakeholder
expectations were managed from the beginning of a project?
What type of performance reporting do you currently do? What
might you do differently in the future?
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 5
5-1
Project Closeout
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-2
Objectives
By the end of this module, you will be able to
Identify key tasks required for proper project or phase closeout
Explain the importance of documenting and communicating lessons
learned for the project
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-3
The Project Life Cycle
Closeout Phase
Obtain final customer acceptance.
Provide the customer with relevant project information.
Recognize, reward, and reassign project team members.
Terminate outstanding purchase orders from subcontractors.
Prepare the final payment.
Dispose materials and supplies.
Prepare final cost and schedule reports.
Document lessons learned.
Celebrate project successes.
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-4
Closing Out a Project or Phase
The process of finalizing all activities across all phases of the project
management process groups to formally complete the project or phase
Tool: Project Closeout Checklist
Tool: Closeout Procedures
1
Ward, J. LeRoy. Dictionary of Project Management Terms. 3rd ed. Arlington, Va.: ESI International, 2008, p. 113.
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-5
Getting Customer Acceptance
Documented sign-off by the customer that all project deliverables satisfy
requirements.
1
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-6
Guidelines for Project Closeout
Ensure that the project Closeout phase is formally acknowledged on
the project schedule.
Review the closeout steps listed in the WBS for previous projects.
Prepare a detailed closeout plan (plan for closeout in the WBS).
Continue to preserve the team's identity by stressing the importance
of its efforts.
Continue to conduct periodic status meetings until all project
activities have been completed.
Visit remote sites if the project team is physically dispersed.
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 5
5-7
Guidelines for Project Closeout (continued)
Provide performance feedback to functional managers for all team
members.
Schedule a formal closeout review or project audit.
Review and document lessons learned to help improve performance
on future projects.
Prepare a final project report and communicate it to stakeholders.
Use a project closeout checklist.
Celebrate success.
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 5
5-8
Project Closeout IssuesProject Team
Loss of interest in remaining tasks
Fear of no future work
Dissatisfaction with next assignment
Loss of project-derived motivation
Loss of team identity
Diversion of effort
Reassignment of personnel
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Project Closeout IssuesClient/Customer
Change in attitude
Loss of interest in project
Changes in personnel assigned to project
Unavailability of key personnel
Up-to-date documentation
Resistance to solution ownership
Resistance to change
Scope creep
Knowledge transfer
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-10
Procurement and Project or Phase Closeout
Procurement Closeout
Make sure all contracts have been
satisfied and vendors have been
paid.
Collect, and have available for
review, product/system
documentation, contract
documentation, and other project
records.
Archive contract documentation.
Project or Phase Closeout
Prepare project and
contract closeout
documentation:
Lessons learned
Final project report
Procurement audit
Archive project
documentation.
Tool: Final Project Report Outline
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-11
Lessons Learned
What did we learn on this project so that the next project will run
more smoothly?
Timely
Relevant
In context
Detailed
Filed and accessible
Tool: Lessons Learned
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Module 5
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People-Oriented Closeout Activities
Site/equipment/materials closeout
Personal closeout
Public relations closeout
Project team closeout
Celebration
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-13
Closeout
Tools used (*key project management documents):
Project Closeout Checklist
Closeout Procedures*
Lessons Learned*
Final Project Report Outline
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-14
Key Messages
Plan for closeout of the WBS and schedule.
Procurement and project or phase closeout ensure that all project
requirements are met.
Lessons learned impart valuable knowledge to your organization for
use in future work.
Close out with the team, stakeholders, and yourself, including the
appropriate recognition and celebration of your efforts.
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PMC:CPM:EN:000 ver. 2.0
Module 5
5-15
Next Steps: Action Plan
How can you apply what you learned in this module to your work
environment?
Turn to the Action Plan tab and find the worksheet for this module.
Develop a list of actions to complete when you return to work.
For each action (what), identify
Who needs to be involved
When you anticipate completing the action
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 5
5-16
Next Steps: Action Plan (continued)
Take a few minutes to think about what you have learned during
class and review the questions below.
Does your organization typically plan closeout into projects?
Why is it important to plan for closeout?
How can you improve your scope verification and customer
acceptance?
How well does your organization document and share lessons
learned?
Is it effective?
What can you do to strengthen or enhance it?
ESI International
PMC:CPM:EN:000 ver. 2.0
Module 5
5-17
MyESI

and the learning Model
MyESI

is the ESI online training portal.


https://esi-intl.com/myesi
View your course history, print a transcript, and
register for new courses.
Through MyESI

you can access


Precourse activities (available upon registration), which include the
best practices survey, knowledge assessment, and focus questions
Postcourse resources and activities, which include
Course-specific action and development plans and course
tools and templates, which are available the day class
concludes
The best practices survey, knowledge assessment, and
targeted online review content, which are generally available
45 days after the class concludes