PMP - Traning Materials - by Hosam A. Mohammed 2012

Advanced Project
j Management
g
Practicing
g
PMP Preparation Course

B Hosam
By:
H
A Eid Mohamed
A.
M h
d Kandeel,
K d l
PMP, EVP, CRA, PMI-RMP, PMI-SP, ASCE-CMP, M.Sc.
I
Introduction
d i to Project
P j Manager
M
Professional
P f i
l
Certification
To Be A PMP
What Is PMI?
Project Management Institute is an international governance, specialized in project management & taking over
the development of the practice standards of Project management,
PMI certificates are approved in more than 180 country around the world,
For each region PMI established a chapter to be the official representative of PMI in such region
Membership through www.pmi.org
Annual Membership fee (129$)
Discount for Examination Fee
B fit off Membership

Benefits
M b hi
Access to Download all the practice standard books for

free
Official Representative in Gulf Region
Membership through www.pmi-agc.org
Benefits of Membership
Monthly E-Post for Free
Discount for E-buying

Discount for Registration of
Global Events & seminars
Project
j Management
g
Institute
Arabian Gulf Chapter
Annual Membership fee (19$)
Free Registration for ACG Technical Events & seminars

Free Registration or Discounts for PM conferences
Low Fee Trainings
Knowledge exchanging
PMI Certificates
AMP
CAPM
Agile manager professional, for IT developer
For Middle level Education & students requires less experience than any
other certificates & less practical hours as well
PMP
Project Manager Professional, the most popular certificate in the PMI,

authorizes the credential holder to practicing the project management
f ll i the
fallowing
th Global
Gl b l practice
ti standards
t d d off the
th PMI
PMI-RMP
PMI
RMP
Project Risk Manager Professional, Authorizes the credential holder to

practicing
p
g Project
j risk management
g
fallowing
g the Global Risk Practice
standards of the PMI
PMI - SP
Project Scheduler Professional, Authorizes the credential holder to

practicing
ti i P
Project
j t scheduling
h d li fallowing
f ll i the
th Global
Gl b l scheduling
h d li
Practice
P ti
standards of the PMI
PgMP
Program
g
Manager
g Professional,, Authorizes the credential holder to
practicing Program Management (Multi related projects) fallowing the
Global practice standards of the PMI
PMP & what does it add to you?

PMP
Project Manager Professional, the most popular certificate in the PMI,

authorizes the credential holder to practicing the project management
fallowing the Global practice standards of the PMI
Nathanial Dermas
PMP
Means That you have been Formally Evaluated for demonstrated Experience,
Knowledge & Skills to Lead & Direct Project Teams & that you are Hereby bestowed the
Global Credential (Project Management Professional)
Simply telling your Current or Future employer that you are formally approved & Got the
basic Skills & Experience to be A project manager
What does PMP Standards Include?

PMI Standards for practicing project management & being A certified project management
professional included defining a project management into 42 processes fallowing
knowledge areas & processes groups,
groups & then defining the standard inputs & outputs of
every single process & the tools & techniques to generate the outputs from the Inputs,
noticing that you may not use all the 42 process according to each project case
Project Management Frame work &

Organization Structure
Project Management Frame work & Organization Structure
Program1
Portfolio
Project2
Project1
Project3
Program
Product Scope:
The Features an functions that characterize a product, service or results

Project Scope:
The work need to be accomplished to deliver a product, service or results with specified
features & functions
Is a Temporary, Unique , budgeted & time framed endeavor

(event) , that applies the concept of progressively elaboration
to develop an end product
Project
Unique:
will never be
repeated
Budgeted:
Have a fixed budget
Budgeted & time framed:
Have a fixed budget &
duration
progressively
elaboration concept
Established
By
Planning the next part of
the project according to
new available data
Organization
Planning
Pl
i the
th nextt partt off
the project according to
new available data
Planning Part of the project according to the

available data
Cost
progressively elaboration concept
Management
reserve
Management
reserve
Summary level
planning
packages &
undistributed
b d
budget
SLPP &
undistributed
budget
Detailed
Budget
Detailed
Budget
Management
g
reserve
Detailed
Budget
Time

(Cost Impact of Changes in project & Stakeholders influence)
STH. IImpact on the projeect

(Cost Impact of Changes in project & Stakeholders influence)
High Impact Low Interest
Keepp Satisfied
High Impact High Interest

Manage closely
Low Impact Low Interest
Low Impact High Interest

Keep Informed
Monitor
Stakeholder Impact Matrix for the project
STH. Interest in The Project

(Organization Structure)
F ti l O
Functional
Organization
i ti St
Structure
t (G
(Gov.))

Projectized Organization Structure

Week Matrix Organization Structure

Balanced Matrix Organization Structure

Strong Matrix Organization Structure
Program Controls manager

General core PMO
G Accounting manager
G.
Planning Team
Supervisor + 3planners
Cost Control Team

Supervisor s + 6 Data entry
G. Engineering
manager
G. Procurement
manager
Document Control Team

Supervisor s + 3 Data entry
Project Controls manager

Cost Control Team
Supervisor + 3Data entry
Site Procurement
Manager
Site Civil work

Procurement
Engineer
Site MEP work
Procurement
Engineer
Site Finishing
work
Procurement
Engineer
g
Planning Team
1+1 +Senior & J. planner
Site Engineering
Manager
Executive Secretary
General construction Manager
2+1 Site Civil work Shop

drawings Engineer s
3+1 Site Civil work
Shop drawings
Draftsmen
2+1 Site MEP work Shop
drawings Engineer s
4+1 Site MEP
work Shop
drawings
Draftsmen
2+1 Site Finishing work
Shop drawings Engineer
s
4+1 Site Finishing
work Shop
drawings
Draftsmen
(2+1) Coordinators
(2+1) Coordinators
Document Control Team

Supervisor + 2 Data entry
Civil work construction

manager
Site Engineers &
Forman
MEP construction
manager
Site Engineers &
Forman
Finishing construction
manager
(2+1) Accountants
QA/QC Manager
1+1 Site Civil work
QA/QC Engineer s
1+1 Site MEP work Shop

drawings Engineer s
1 Site MEP work
Materials inspector
1+1 Site Finishing work
p drawings
g Engineer
g
Shop
s
1 Site Finishing
work Materials
inspector
Infrastructure
construction manager
Site Engineers &
Forman
Time Sh
Ti
Sheets
t ddata
t
entry operator s
1 Site Civil work

Materials inspector
Site Engineers &

Forman
Coordinator
Site HR Manager
Payroll
responsible s
Employees affairs
responsible
General construction Manager

Store Manager
Concrete plant Manager

(if Any)
Transportation Manager
Engineering
Coordinators
Procurement
Coordinators
Civil work
construction
manager
MEP construction
manager
Finishing
construction
manager
Infrastructure
construction
manager
Site Engineers
Site Engineers
Site Engineers
Site Engineers
(one for 2 Buildings)
2+2Engineers
Site Forman
Site Forman
Site Forman
Site Forman
Skilled & unskilled labors

Notes:
The default number is written first & the + is additional Number due to the size of the site
The proposed organization is applicable for all the 23 sites
The separate construction organization is the detailed for the global one in slide 1 construction part

Application
l
of Organization Structures
Project Management Standard Process & Knowledge areas
((The Matrix, the process

p
& The Curves))
1. Identify Stakeholders
Initiation
1. Develop
D l Project
P j Charter
Ch
2 Develop Project Management plan

2.
1. Collect Requirement
2. Define Scope
1. Plan Quality
1. Develop HR Plan
1. Define Activities
3. Create WBS
2. Sequence Activities
2. Plan Communications
3. Estimate Activity Resources
1. Plan Risk Management
1. Estimate Cost
2. Identify Risks
5. Develop Schedule
1. Plan Procurement
4. Estimate
Activities
Durations
2. Determine Budget
3. Perform Qualitative Risk Analysis

4. Perform Quantitative Risk Analysis
5 Plan
5.
Pl Risk
Ri k Responses
R
Planning
3. Direct & manage Project Execution

2. Perform Quality Assurance
2. Acquire Project Team
3 Develop Project Team
3.
4. Manage Project Team
4 Manage
4.
M
SStakeholders
k h ld Expectations
E
i
3. Distribute Information
2. Conduct Procurement
Executing
4. Verify Scope
5. Control Scope
3. Perform Quality Control
6. Control Schedule
6. Monitor & Control Risks
3. Control Cost
3. Administer Procurement
5. Report Performance
5. Perform Integrated Change

C
Control
l
4. Monitor & Control Project Work
Monitoring & controlling
Procurement
Management
1. Develop
Project
Charter
1. Collect
Requirement
2. Define
Scope
3. Create WBS
1. Estimate Cost
2. Sequence
Activities
3. Estimate Activity
Resources
4. Estimate
Activities
Durations
5. Develop
S h d l
Schedule
2. Determine
Budget
4. Verify Scope
5. C
Controll
Scope
6. Control Schedule
3. Control Cost
1. Plan Quality
1. Develop
HR Plan
2. Perform
Quality
Assurance
2. Acquire
Project Team
3. Develop
p
Project Team
4. Manage
Project Team
3. Perform
Quality Control
2. Plan
Communications
1. Identify
Stakeholders
Executing
Monitoring
&
controlling
Risk
Management
Planning
Communication
C
Management
HR Managementt
Quality
Management
Cost
Management
Time
Management
scope
Management
Initiation
1. Plan Risk
Management
2. Identify
Risks
3. Perform
Qualitative
Risk
4.Analysis
Perform
Quantitative
Ri k
Risk
Analysis
5. Plan Risk
Responses
4. Manage
Stakeholders
Expectations
1. Plan
Procurement
6. Monitor &
Control Risks
3. Direct &
manage
Project
j
Execution
3.
Administer
Procurement
4. Monitor &
Control
Project Work
5. Perform
Integrated
Change
Control
4. Close
Procurement
Closing
2. Develop
Project
Management
plan
2. Conduct
Procurement
3. Distribute
Information
5. Report
Performance
Inteegration
Man
nagement

(The Matrix)
6. Close
Project or
phase
process
process
process
process
process

(The process)
I iti ti
Initiation
Select project manager

Determine company culture and existing system
Collect processes, procedures and historical information
Di id large
Divide
l
project
j t into
i t phases
h
Understand the business case
Uncover initial requirements and risks
Create measurable objectives
Develop project charter
Identify stake holder
Develop stake holder management strategy
Executing
Execute the work according to PM plan
Produce product scope

Request change
Implement only approved change
Ensure common understanding
U workk authorization
Use
th i ti system
t
Continuously improve
Fallow process
Perform QA
Perform Quality Audits
Acquire final team
Manage people
Evaluate team and project perform
Hold team building activities
Give recognition and rewards
Use issue log
Facilitate conflict resolution
Send and receive information
Hold meeting
Select sellers
Planning
Det. How you will do planning part of all management plan

Finalize Requirement
q
Create project scope statement
Determine what to purchase
Determine team
Create WBS and WBS dictionary
Create activity list
Create network diagram
Estimate resource requirement
Estimate time
Estimate cost
Determine
critical path
Develop schedule
Develop budget
Det. Quality standard, process and metrics
Create Process improvement
p
plan
p
Det. All roles and responsibility
Plan communications
Risk identification
Risk identification and analysis
Risk response planning
Go-back iteration
Prepare procurement
Finalize how to execute and control
Define find PM planned performance measurement baseline
F
Formal
l approvall for
f plan
l
Hold kick off meeting

(The process)
Take action to control the project

Measure performance Vs performance baseline
Measure performance Vs other metrics determine by PM
Determine variances
Influence factors cause changes
Request changes
Perform
x change control
Approve or reject change
Inform stakeholders to approved changes
Manage configuration
Create the forecast
Gain acceptance of interim deliverables from customer
Perform QC
Perform risk-Audit
Manage reserves
Administer procurement
Closing
Confirm work is done to requirement

Complete procurement
Gain formal acceptance for the product
Complete final performance reporting
Index and archive records
Update lessons learned
Hand off complete product
Release resource
(The Curves)
Process groups Interaction
The Processes Concept

Example
Process group Planning

Knowledge area Procurement
Planning
Inputs
1. Plan Procurement
Tools & Techniques
Risk Management
Risk Management
Risk Related contract Decision

Risk Register
Cost Management
Activity Cost Estimates
Time Management
Activity Resource Requirements
Scope Management
Scope Baseline
Scope
p Management
g
Requirement
q
Documentation
Cost Management
Cost Performance Baseline
Time Management
Project Schedule
EEF & OPA
Teaming Agreement
Outputs
Make or Buy Analysis

Procurement management Plan
Contract Types
Procurement Statement of work
Expert Judgment
Make or Buy Decision
Procurement Document
Source Selection Criteria
Ch
Change
requestt
Project
j scope
p Management
g
Analyze & report the scope

performance & scope deviation
Decompose the
D
th scope to
t manageable
bl
element hieratically arranged (WBS)
Define the scope in well described
paragraph (BOQ & specs)
What is the requirements of the
stakeholders / customer
Maiin outputs
Prroject Scope Managgement
Verify each part of the scope upon

finishing
Project Time
Management
Requirement Management Plan

Requirement Documentation
Project Scope Statement
WBS
WBS Dictionary
Scope Baseline
Accept Deliverables
Work Performance Measurements

Change Requests
Project scope Management

Planning
Inputs
1. Collect Requirement
Outputs
Tools & Techniques
Questioners
Project Charter
Requirement Management Plan
Initiation
Interviews
Observations
Stakeholder Register
Focus Groups
Prototypes
Requirement Traceability matrix
Groups Activity Technique

Project Charter
Groups Decision Making
The Birth Authorization of a project , Signed by the Sponsor & provides a High level project requirements & high level project description, the Project
charter
h
names the
h Project
j manager & can name the
h high
hi h level
l l Roles
l in
i the
h project
j & the
h high
hi h level
l l vendors
d
& suppliers
li
f special
for
i l items,
i
the
h document
d
includes as well a top level estimating budget for the project
An Important Document Listing all the stockholders names (definitions for organization)
Stakeholder
Person or Organization that could

impact or impacted by the project
Planning
Inputs
2. Define Scope
p
Outputs
Tools & Techniques
Expert Judgment
Project Charter

Product Analysis
Project Documents Update

Alternative Definition
OPA
Feasibility workshops
Wh d
Why
do the
h
organization need the
project to be
established ?
Summary Description
of the Project,
outlines module
What ever the organization

use out of its own library
to establish the project
(template, processes,
lessons learned
learned,Etc)
Etc)
What ever in the

surrounding environment
of the project & affect the
project (low, organizations,
resource
characteristic,etc)

Planning
Inputs
3. Create WBS
Outputs
Tools & Techniques
Decomposition
WBS
WBS Dictionary
OPA
Scope Baseline
Project Document Update
Product Scope definition
Project Deliverables
WBS
P j Constrains
Project
C
i
WBS Dictionary
Di i
Acceptance Criteria
Project Assumption
WBS is a hieratical Arrangement of the project components &

decomposition of the project scope into manageable parts that facilitate
id if i the
identifying
h activities
i i i & assign
i the
h cost, time,
i
Quantities
i i & man-hours
h
to such activities & aggregating the totals to the WBS elements Up to the
p level of the WBS so that we can determine the final cost & time for
top
the project & accordingly we track & report the performance of the
project
E
Example
l off a WBS
Level (0 or Control Account level Div 03 )
PROJECT
0
Level (1)
WBS 1
0.1
WBS 2
0.2
WBS 3
0.3
Level (2)
WBS 1
0.2.1
WBS 2
0.2.2
WBS 3
0.2.3
Level (3)
WBS 1
0.2.3.1
WBS 2
0.2.3.2
WBS 3
0.2.3.3
End Level (work Package level) after which the

Listing of the activities is being developed
WBS 1
02341
0.2.3.4.1
WBS 4
0.4
WBS 5
0.5
WBS 4
0.2.3.4
WBS 4
0.2.3.5
WBS 2
02342
0.2.3.4.2
WBS 3
02343
0.2.3.4.3
The Philosophy of defining & detailing the definition of scope is to try to tend
the project to a manageable form, as we cant use the requirement nor the scope
definition to Manage the project or to achieve the goals of the project
After keep saying & repeating

Managing, Managing &
Managing could anyone
here tell me what is the
meaning of managing?
Scope
Quality

Inputs
4. Verify Scope
Outputs
Tools & Techniques
Inspection
Integration Management
Project Management Plan
Change Requests
Accept Deliverables
Validate Deliverables

Inputs
5 Control
5.
C t l Scope
S
Outputs
Tools & Techniques
Measurements

Variance Analysis
OPA Update
Change Requests
Work Performance Information
PM Plan Update
OPA
4. Verify
4
V if
Scope
5. Control
Scope
Being Done upon

the finishing of a
part , phase,
stage or subproduct
Resulted in
release of
payment &
official
approval
Being Done
Periodically to
avoid scope creep
There is no
need of
releasing
payment it is
payment,
just
monitoring
g the
performance
Project
j Time Management
g
Analyze & report the Time

performance & scope deviation
Define (calculate) the duration

for each task & run to calculate
the total project duration
Define the (labor, material,
equipments) for each task
Create the network diagram to
determine the Critical path
Listing the activities of each work
package,
p
g , to generate
g
the project
p j tasks
Maiin outputs
Projecct Time Managgement
Combined
C
bi d all
ll the
h previous
i
into
i
the project schedule
Activity List
Project Schedule Network Diagram
Activity Resource requirements
Resource breakdown structure
Activities Durations Estimates
Project Schedule
Schedule Baseline

PM Plane Update
Project Cost
Management
Project Time Management

Planning
Inputs
Outputs
Tools & Techniques
Decomposition
Scope Baseline
Activity List
Rolling Wave Planning
EEF
Activity Attribute
Templates
Expert Judgment
OPA
Milestones list
Planning
Inputs
2. Sequence Activities
Outputs
Tools & Techniques
Precedence diagram
Activity List

Dependency Determining
Activity
y Attribute
Project
j Document Update
p
Apply Leads & Lags
Milestones list
Schedule Network template
Scope Management

OPA
Summary Level Rolling Up for Activities Duration & Logic
Activity (A) Duration = XX
F
Activity (B) - Duration = YY
Activity (C) - Duration = ZZ

Example of CPM- Precedence diagram





Planning
g
Inputs
3. Estimate Activity Resources

Outputs
Tools & Techniques
Activity List
Alternative Analysis
Activity Attribute
Resource Calendar

Published Estimating Data
PM software
Resource breakdown structure

Expert Judgment
EEF & OPA
Bottom Up Estimating
Planning
Inputs
4. Estimate Activities Durations

Outputs
Tools & Techniques
Expert Judgment
Activity List

Parametric Analysis
Activity Attribute

Analogous Estimate
Resource Calendar
Reserve Analysis
Scope Management

EEF & OPA

Planning
Inputs
5. Develop Schedule
Outputs
Tools & Techniques
Activity List
Activity Attribute
OPA & EEF

Scope Management
Schedule Network Analysis

Project Schedule
Critical Path Method
SC. software
Schedule Baseline
Resource leveling
Schedule Data
What If Scenarios
Applying Leads & Lags
Schedule Compression

Inputs
6. Control Schedule
Outputs
Tools & Techniques
Performance Variances

Variance Analysis
Project Schedule
SC. software
OPA Updates
Resource leveling
Change Request
What If Scenarios
OPA
PM Plan Update
Applying Leads & Lags
Schedule Compression
Time Management Processes

Reviewed
d&
Inspected
d&
Approved
d By
Construction
n team
Sequencing activities
Calculate Activities Durations
Calculated Using
Quantitiees (BOQ) &
Previous Experiences
Input acccording To A
Activities
Define activities Resources

Perfo
ormed According to Log
gic
Inputs from (BOQ & ID structuring System)
Develop Activity list & ID dictionary
Develop Time Schedule
Inspected
p
By Resource
Assignment
team
(Chart 2)
Project
j Cost Management
g
Approve
pp
the total budget
g by
y the project
p j manager
g &
develop the cash out flow & cost baseline, after
adjusting it according to the available funds
Rolling Up To the Work packages & rolling Up the work
packages
k
to the
h WBS elements
l
up to the
h totall project
j cost
Use the activity list & resource requirements to estimate
the total cost of each task
Maiin outputs
P
Project
t Cost M
Managgement
Monitor & control the cost performance against the

baseline & forecast the future at completion budget
according to the project performance
Activity Cost Estimate

Bases of Estimate
Project Funding Requirements
Budget Forecast
Change Request
Project Cost Management

Planning
g
Inputs
1. Estimate Cost
Outputs
Tools & Techniques
Scope Management
Scope Baseline
Time Management
Project Schedule
HR Management
HR Plan
Risk Management
Risk Register
EEF & OPA
PM software
Expert Judgment

Analogous Estimate
Bases of Estimate
U. Bid Analysis
3Point Estimate
Bottom Up Estimating
Cost Of Quality
Reserve Analysis
Planning
Inputs
2 D
2.
Determine
t
i Budget
B d t
Outputs
Tools & Techniques
Expert Judgment
Bases of Estimate

Cost Aggregation
Resource Calendar

Funding Limits
Scope Management
Scope Baseline
Time Management
Project Schedule

Reserve Analysis
Historical relationships
Procurement Management
Contracts
OPA
Direct & Indirect costs

Inputs
3. Control Cost
Outputs
Tools & Techniques

OPA
Earned Value Management

PM Software
Forecasting

Budget Forecast
To-complete Performance Index

Change Request
Performance review
Variance analysis
OPA Updates
Earned Value Management
PM Plan Update
Earned Value Management Provides organizations with the methodology needed to integrate the management of project Scope, Schedule & cost,
EVM can play a critical role in answering management questions that are critical to the success of every project
Are we Ahead or behind schedule..?
How efficiency are we using our time ..?
When is the project likely to be completed ..?
Are we currently under or over our budget..?
How efficient are we using our resources..?
What is the remaining work likely to cost..?
What is the entire project likely to cost..?
If the application of
EVM to a project reveals
that the project is behind
schedule or over budget,
the project manager can
use the EVM
methodology to help
identify
Where the problems are occurring..?

Whether the problems are critical or not..?
What it will take to get the project back on track..?
How much the project will be under or over

budget at the end ..?
TCPI
The Work Remaining
BAC
EV
The fund remaining
BAC
AC
To Complete Performance Indicator (Index)
Total Budget for the Project as Baseline
Schedule Variance
EV
Actual Time
Line
Cost Variance
EV
PV
AC
Schedule
Performance
Indicator
CPI
Cost
Performance
Indicator
PV
EV
AC
Case (1)
EAC
Case (2)
Financial Measurement
SPI
EAC
We Are on Time On
Budget
We Are Ahead of
Schedule Under Budget
>
0
We Are Behind of
Schedule Over Budget
<
0
> 1 ok
<1
Not ok
10
10
Point of Study
y & analysis
y
What will be the Value of the project at the End.
Measured from the real

work Done
EV
As Forecasting Tool
Value
CV
Planed Time Line (Assigned Baseline)
As Tracking Tool
SV
10
40
10
Actual Cost of Work Performed
10
ACWP
10
20
10
Budgeted Cost of Work Performed
Month 8
BCWP
Month 7
30
Month 6
Budgeted Cost of Work Scheduled
Month 5
BCWS
Month 4
PV
EV
AC
BAC
Month 3
Item To be Finished
Month 2
Terms
Month 1
Cost of Item (budgeted)
10
Earned Value Management: Formulas & calculations
What has happened has happened & we can bring the

project on track again
Estimate AT
Completion
AC
BAC
EV
The monitored performance is the best the contractor

(vendor/Supplier) can do
Estimate AT
Completion
AC
BAC
EV
CPI
Case (3)
EAC
The monitored performance is the best the contractor

(vendor/Supplier) can do & there will be a problem
ega
g d g thee timee Ass well
e
regarding
Estimate AT
Completion
AC
BAC
EV
CP
I
SPI
Project
j Quality
Q
y Management
g
A set of inherent characteristics implemented to fulfill requirements
Apply the experiments & the checks on the End

products of the project to identify the problems &
the change requests
Apply the experiments & the checks on the
processes of the project to identify the problems
Plan who will be the Quality team, the quality
requirements , Experiments, methodologies &
processes
Main outputs & theeories
Prroject Q
Qualityy Manaagemennt
Quality
1. W. E. Deming
Theory
Plan Do Check Act ( Continues

Improvement)
2. A. R. Crospy
Theory
Zero defects Cost of Quality is the

cost on nonconformance
3. Juran Theory
Fitness for Use
4. Ishakawa
Theory
Cause & effect Diagram
Quality Management plan

Quality Matrices
C Of C
Cost
Conformance
f
Money spent during the

Project to avoid failure
Change Request
Cost Of nonconformance
Validated Change
Validated Deliverable
Money spent during & After

the Project Because of
failure
Standard Deviation analysis:

-Raise the Quality standard to achieve the STD
- For Calculation Analysis for past measurements to identify a value to
use
Project Quality Management

Quality Is planned IN
Not Inspected IN
Planning
Inputs
1. Plan Quality
Outputs
Tools & Techniques
Scope Management
Scope Baseline
Cost Management
Cost Performance baseline
Time Management
Schedule Baseline
Communication Management
Risk Management
Risk Register
EEF & OPA
Quality Matrices
Flowcharting
Cost Benefit An.
Quality Management plan

Design of experiments
Quality Matrices
Control Charts
Bench marking
Processes Improvement plan
Statistical sampling
Cost Of Quality
Proprietary quality management
operational definition that describes, in very Specific terms, a project or product attribute and how the Quality control process will measure it
EX
EX.
on-time performance
budget control
Defect frequency
Test Coverage
failure rate
Executing
Inputs
2. Perform Quality Assurance

Outputs
Project Management plan
Tools & Techniques
Quality Matrices
Plan Quality & perform QC Tools

& techniques
OPA Updates
Quality Audit
Change Request
Quality Control Measurements
Processes Analysis
PM Plan Update

Quality Important Theories
1. W. E. Deming Theory
Plan Do Check Act ( Continues Improvement)
2. A. R. Crospy Theory
Zero defects Cost of Quality is the cost on nonconformance
3 Juran
3.
J
Th
Theory
Fi
Fitness
ffor Use
U
4. Ishakawa Theory
Quality
A set of inherent characteristics implemented to fulfill requirements
Grade
C
Category
assigned
i
d to products
d
or service
i h
having
i the
h same ffunctional
i
l use b
but different
diff
technical
h i l characteristics
h
i i
Cost Of Quality
Refer to total cost of all effort related to Quality through out the Product lifecycle
Cost Of Conformance
Cost Of nonconformance
Money spent during the Project to avoid failure
Money spent during & After the Project Because of

failure
Prevention (Build Quality error

out of the p
processes )
Internal Failure Cost
Appraisal (asses the Quality)
External Failure Cost
Design of Experiments (DOE)

Used To determine the type of tests & number as well & their impact on cost of Quality

Monitoring
g & controlling
g
Inputs

Outputs
Tools & Techniques
Quality Matrices
Quality Check lists
Work Performance Measurement
Approved Change request
Deliverables
OPA
Control Charts
Flowcharting
Validated Change
Histograms
Validated Deliverable
Parito Chart
OPA Updates
Scatter Diagram
Change Request
Statistical sampling
Inspection
PM Plan Update
Approved Chang e Request Review
Control Charts - QA tool

Graphic displays of the results, over time, of a process; used to assess whether the process is in control
Average of
the process
data
Rule of Seven - Control Charts

Run of seven points toward upper or lower control limit may indicate that process is out of control

Hi t
Histograms
QA/QC tool
t l
A tool helps identify the cause of problems in a process by the shape and width of the
distribution

St ti ti l sampling
Statistical
li - QA/QC tool
t l
Important Formulas
Mean () Average (X) = (Sum of Samples reading) / (Number of Samples)

Variance = Sum of squared differences between mean and each value, (x- )2,
divided by number of samples less one (n-1)
Standard deviation
= Square root of the variance
Statistical sampling - Example

Calculation for Productivities from Actual Readings
Reading
FoundationDailey %finishing
(x)2
0.601%
0.806%
0.644%
1.458%
0.972%
0.294%
0.587%
0.766%
AVA
0.000273%
0.000016%
Number Os samples
Sum (x- )^2

0.00136726%
0.00
367 6%
Variance
(N-1)
0.000149%
0.004792%
0.000425%
0.002227%
0.000322%
0.008204%
Sum
Standard deviation
0.3697656%
%

St ti ti l sampling
Statistical
li - QA/QC tool
t l
Standard Deviation analysis:

-Raise the Quality standard to achieve the STD
- For Calculation Analysis for past
measurements to identify a value to use

Inspection

Attribute Inspection
Variable Inspection
Yes Or No Inspection
Actual measurement for Samples

of the product
Keeping Errors out of the hands of the customer
Precision
Consistency that the Value of repeated measurements are clustered & have a little scatter
Accuracy
Correctness that the measured value is very close to the true value
P i Chart
Parito
Ch QA/QC tooll
Parito low - A relatively small number of causes will typically produce a large majority
of the problems or defects (80/20 rule)
Helps focus attention on the most critical issues

Prioritize the potential causes of the problem
Separate the critical few from the uncritical many
Project
j Communication Management
g
Give every single stakeholder his required

information (reports) based on his position
in the matrix
Distributing the information what ever the classification
off this
hi information
i f
i iis ((reports, Information,
I f
i
memos,etc) during the life cycle of the project
Plan who will be responsible of communicating
the information between the STH & the time & the
cost of comm
communication
nication each
Identify those whom will be communicated
through the project life cycle & the position of
each one of the m in the matrix
Communication
C
i ti
Channels in a project
Main outputs
N (N 1)
(N) : Number
N b off Persons
P
involved
i
l d in
i the
th
Communication paths of the Project
Stakeholder Management Strategy

Plan
OPA Update
Change Request
Performance Reports
Interactive
Communic
ation
Meetings, Calls
& Video
conferences
Push
Communic
ation
Mails, memos,
letters & faxes
Pull
Communic
ation
Downloads
Informal
Verbal
Calls & Video

conferences
Formal Verbal
Direct Site
Instruction
Informal
written
Memos, M. O.
Meetings
Formal Written
Contracts,
Purchase orders
Forecasting Methods
Time Series method : Use historical information for future
forecasting (EVM)
Causal / Econometric methods : Use Assumptions (What if
Scenarios)
Judgment Method : Use Expert Judgment as Delphi
Technique
q
Reporting system
Type of
Communication
Direction of
communication
Communication Types
Projecct Comm
municaation M
Manageement
Report the analysis of the performance

in the project to the key stakeholders to
facilitate corrective actions
Status Reports : Telling where we are (Current Status of

the project)
Completion
p
Vs. Actual : Verifying
y g the baseline of the
project Vs. The Actual Status
Variance : Analyze the Actual variables of the project to
the Targeted
Trends : Comparing the performance to a fixed periods of
the project (updating Cycle)
Project Communication Management

Initiation
Inputs
1. Identify Stakeholders
Outputs
Tools & Techniques
Project Charter
Procurement Management
Procurement Documents
Stakeholder Analysis
Expert Judgment
EEF & OPA

Planning
Inputs
2. Plan Communications
Outputs
Tools & Techniques
Communication requirement
Analysis
Communication Management Plan
EEF & OPA
C
Communication
i ti technology
t h l
P j t Document
Project
D
t Update
U d t
Communication models
Communication Methods
Stakeholder Analysis
Techniques of systematically gathering & analyzing qualitative & quantitative information to determine whose interests should be
taken into consideration through the project
Communication requirements Analysis

Analysis for the communication requirements to determine the type & nature of information needed with analysis to the value of such
information to the stakeholders
STH. Impact
on the
project
High Impact Low Interest
Keep Satisfied
High Impact High Interest

Manage closely
Low Impact Low Interest
Low Impact High Interest

Keep Informed
Monitor
Stakeholder Impact Matrix for the project
STH. Interest in The Project
N(N 1)
(N) : Number of Persons involved in the Communication paths

of the Project
Communication Channels in a project
Type o
of
Communiccation
Communication Types
Direction of
ccommunication
2
Interactive Communication
Meetings, Calls & Video conferences
Push Communication
Mails, memos, letters & faxes
Pull Communication
Downloads
Informal Verbal
Calls & Video conferences
Formal Verbal
Direct Site Instruction
Informal written
Memos, M. O. Meetings
Formal Written
Contracts, Purchase orders
Communication models
Communicate Information
Communication Media
Encode
Defining information into a
transitional form for seeding
Noise
Decode
Translating the received information
into a readable form

Executing
g
Inputs
3. Distribute Information
Outputs
Tools & Techniques

Performance Reports
OPA Update
Information Distribution tools
OPA
Effective information
Distribution techniques
Sender receiver Model
Stakeholders Notifications
Choice of Media
Project report
Writing Style
Project Presentation
Meeting Management Techniques
P j Records
Project
R
d
Presentation Techniques
Feed back from stake holders
Facilitation Techniques
Lessons learned documentation

Executing
g
Inputs
4. Manage Stakeholders Expectations

Outputs
Tools & Techniques
OPA Update
Interpersonal Skills

Management Skills
Issue Log
Change Request
Change Log
PM Plan Update
OPA

Monitoring
g & controlling
g
Inputs
5. Report Performance
Outputs
Tools & Techniques
OPA Update
Budget Forecasts
Reporting Systems
Variance analysis
Work Performance Measurement
Forecasting Methods
Performance Reports
Change Request
OPA
Forecasting Methods
Time Series method : Use historical information for future forecasting (EVM)
Causal / Econometric methods : Use Assumptions (What if Scenarios)
Judgment Method : Use Expert Judgment as Delphi Technique
Reporting system
Status Reports : Telling where we are (Current Status of the project)

Completion Vs. Actual : Verifying
the baseline of the project Vs. The Actual Status
Variance : Analyze
the Actual variables of the project to the Targeted
Trends : Comparing
the performance to a fixed periods of the project (updating Cycle)
Project
j Human Resources Management
g
Applying the managerial skill & conflict

resolution techniques to resolve the confects &
taking decisions based on team evaluations
Start hiring the project staff, forming the teams

& assigning the jobs
Developing the RAM for the project with the
resources & roles positions
positions, Responsibilities &
authority
Plan the role you will need in the project, the
timing of hiring , the roles description & HR team
who will be doing the hiring processes
Main ou
utputs
Projecct HR M
Manageement
Developing the project team(s) by enhancing the

skills, the capabilities of the staff, harmonies the
performance, enhancing the work environment &
Conduct team assessment
RAM : Responsibility
Assignment Matrix
Role
HR Plan
Organization Chart &
position description
Org.
O
g.
Hierarchal
type
yp
Matrix
a
Based Resp.
Chart
Roles &
Responsibility
TText O
Oriented
i
d
format
Responsibility
Competency
HR Plan
Project Staff Assignment
Authority
Techniques for Conflict Resolution
Project
Organization
Chart
Staff Acquisition
Safety
Resource Calendar
Team Performance Assessment
Withdrawing &
Avoiding
EEF Update
Smothering
(Accommodating)
Confronting
(Problem Solving )
Change Request
Collaborating
Recognition & rewards
Compromising
Forcing
Staffing
Management
plan
Team Building
Activities
Forming
Staff Release Plan

Training needs
Resource Calendar
Storming
Norming
Performing
Adjourning
Compliance
Project Human Resources Management

Planning
Inputs
1. Develop HR Plan
Outputs
Tools & Techniques
EEF & OPA

Organization Chart & position description
HR Plan
Networking
Organization theory
Org. Hierarchal type
RAM : Responsibility Assignment Matrix
Matrix Based Resp. Chart

Text Oriented format
Role
HR Plan
Authority
Roles & Responsibility
Responsibility
Competency
Project Organization Chart
Staff Acquisition
Safety
Staffing Management plan
Staff Release Plan

Training needs
Resource Calendar
Compliance

Executing
Inputs
2. Acquire Project Team

Outputs
Tools & Techniques
EEF & OPA

Resource Calendar
Management Skills
PM Plan Update
Executing
Inputs
3 Develop Project Team

3.
Outputs
Tools & Techniques
Training
Project
j Staff Assignment
g

Resource Calendar
EEF Update
Ground Rules
Co- Location
Team Building Activities
Forming
Storming
Norming
Performing
Adjourning

Human Resources Important Theories
1. Maslows Hierarchy of Needs
Self - Actualization
Perquisites
Self Fulfillment, growth, Learning
Some Employees receive special

rewards for their efforts
Esteem
Accomplishment, Respect, Attention, Appreciation
Fringe Benefits
Social
All Employees receive Normal

Benefits as Standard Company
formal benefits
Love, Affection, Approval, Friends, association
Safety
Security, Stability, Freedom from harm
Physiological Needs
Need for Air, Water, Food, Housing, clothing
2. Expectancy Theory
Employees who believe their effort will lead to effective performance & who expect to be rewarded for their
accomplishments remain productive as rewards meet their expectations

Human Resources Important Theories
3 Motivation
3.
M i i Theory
Th
what
h do
d people
l really
ll want..?
?
The best way to gain Motivation is to give rewards
Then we must know what p
people
p want
Depend on the interpersonal skills & people analysis
4. McGregors
g
Theory
y of
X&Y
Theory X
Theory Y
Managers who accept this theory
believe that people need to be
watched
h d every minute,
i
people
l are
incapable, avoid responsibility &
avoid work whenever possible
Managers who accept this theory

believe that people are willing to
workk without
ih
supervision,
i i
and
d want
to achieve. People can direct their
own effort
5. David McClellands theory

y of needs (Acquired
( q
Needs Theory
y ANT))
Need For Achievement
Challenging & reachable projects, Recognition
Need For Affiliation
Cooperating with others, seeking approval rather than recognition
Need For Power
Cooperating with others,

others seeking approval rather than recognition
6. Herzberg Theory (Hygiene factors & Motivation Agents)

Hygiene
yg
factors
Working
Conditions
Personal
Lif
Life
Security
Status
Relationships
at work
Salary
Motivation Agents
g
Recognition
Professional Growth
Responsibility
Self Actualization

Executing
Inputs
4. Manage Project Team

Outputs
Tools & Techniques
Observation & conversation

PM Plan Update
Project Performance appraisal
OPA Update
Issue Log
Performance Reports
Change Request
OPA
Conflict Management
Techniques for Conflict Resolution
Withdrawing &
Avoiding
Smothering
(Accommodating)
Compromising
Forcing
Collaborating
Confronting
(Problem Solving )
Project
j Risk Management
g
Risks
Possible Uncertain Event that may

positively or negatively impact the project
Performing the risk audit &

assessment to evaluate the responses
applicability & identify new risks
Link the risks before mitigation to the time schedule

& analyze the required reserve
Performing the 2 major types of analysis to calculate the
risks
i k score & rankk & re-rankk th
the risks
i k & deal
d l with
ith th
the
high ranked risk only for the further analysis & action
As risk are coming from every single knowledge area, we use
all the project components to identify a very big list of the
i iti l risks
initial
i k with
ith a primary
i
components
t & primary
i
ranking
ki
Main
n outputs
To have the ability & Culture Perform Risk Management

Qualitative amount
Impact
Risk
Score
Projecct Risk M
Management
Chose the highest risk tanked & apply

a response plan to such risks
Number
Related
to the
Risk
Probability
Expected Time of Risk to occurs

Frequency of Risk event
express the Risk

category
location of Risk
in the
Probability &
Impact Matrix
Risk Management Plan

Risk Register
Risk Register Update & Risk ranking
Risk Register Update & Risk ranking
Risk Related - Residual Risks
Change Request
Probability
Quantitative Amount
(Money or Time)
The Likelihood of having

g the event on reality,
y, based
on Experience or Lessons learned
Impact
The effect (time or money) as number for
Quantitative Analysis
Used in
Quantitative
Simulation
Used to calculate
reserves
Project Risk Management

Planning
Inputs
1. Plan Risk Management

Outputs
Scope Management
Cost Management
Cost management plan
Time Management
Schedule management plan
Communication management plan
Tools & Techniques
Planning Meeting
Meeting Analysis
EEF & OPA

Planning
Inputs
2 Identify
2.
Id tif Risks
Ri k
Outputs

Cost Management
g
Activity
y Cost Estimates
Time Management
Activity Duration Estimates
Scope Management
Scope Baseline
Cost Management
Cost management plan
Time Management
Quality Management
Quality management plan

Project Documents
EEF & OPA
Tools & Techniques
Documentation Review
Ri k Register
Risk
R i t
Information Gathering Tec.
Check lists analysis
List of Potential Risks
Assumptions Analysis
Diagramming Techniques
SWOT Analysis
Expert Judgment
List of Potential Responses
Risks
Possible Uncertain Event that may positively or negatively impact the project
Definitions
Agreed or ..?
1- The concept of risk can be applied to nearly every human decision-making action of which the consequences are
uncertain
Agreed or ..?
2- Business models based on realizing benefits after investing in executing projects are More risky
Agreed or ..??
3 Risk
3Ri k M
Managementt is
i a powerful
f l decision
d i i making
ki tool
t l Especially
E
i ll in
i construction
t ti industry
i d t
Agreed or ..?
4- For To many organizations, risk is a four letter word and they try to insulate themselves from risk, They position
themselves to unload unexpected
p
costs onto others. Increased costs are passed
p
on to consumers by
y raising
g prices
p
Agreed or ..?
5- This approach may well have worked in the past, but it can be a recipe for disaster. As international competition
become stronger, saddling consumers with increased costs becomes more difficult. Shifting financial risk onto subcontractors, the least able to resist does not encourage high levels of trust and commitment
Pure Risk
Insurable Risks Only Risk of loss Ex. Fires
Type of Risks
Business Risk
Risk of gain or loss Ex. Product that can be lose money or gain money
We have COP directors in many various fields

with high experience & well Educated
We are working in a booming era in the filed of
project management
SWOT Analysis
PMI-AGC does not have a fixed office in Riyadh

PMI-AGC does not have a fixed training Schedule
PMI-AGC does not have a fixed training place in
Riyadh
The market is hungry for project management

We have a well established relations with the
largest clients & Contractors in many fields
The service of the PMI-AGC especially in trainings

in Riyadh is week
We have well Experienced members of the COP

board in the training filed
Providing
idi Practical
i l application
li i iin specified
ifi d
industries is not strong enough
We know that the most wanted service now ins

trainings
Surveys for the market needs (PM) tools are not

strong enough
PMI-AGC is an official representative of PMI

The awareness of PMI-AGC now increasing
Strength
Weakness
Opportunities
Threats
the PMI certificate became a requirement in

practicing Project management
Make use COP experience for indoor awareness &

increasing of members
Make Use of the booming in the filed of PM to
provide standard practices awareness
Using the cross relationships to improve
cooperation with practitioners in the PM filed
Use the members of COP board & other volunteers
experiences in the filed of training services
Enhance & sustain awareness of PMI-AGC
Hard physical communication with PMI-AGC

Loosing the advantages of providing the training
based on the right processes as PMI-AGC does not
have a fixed training place
The service of the PMI-AGC especially in trainings
y
is week
in Riyadh
Other Practical application in specified industries
Will Replace PMI Standard
Loosing the peaks of the market needs In PM filed
Behavior toward Risk
Organization Behavior toward Risk
The umbrella approach where you must allow for every possible
eventuality by adding a large risk premium to the price
The ostrich approach where you burry your head in the sand and amuse
everything
y
g will be alright,
g , that somehow you
y will muddle through
g
the intuitive approach that say dont trust all the fancy analysis, trust
your intuition and gut feel
The brute force approach that focuses on the uncontrollable risk and says
we can force things to be controlled, which of course they cannot

Planning
Inputs
3. Perform Qualitative Risk Analysis

Outputs
Risk Register
Tools & Techniques
Risk Probability & Impact assessment

Risk Register Update

Probability & Impact Matrix
Scope Management

Risk & Quality Assessment
Updated List of Potential Risks
OPA
Risk Categorization
Updated List of Potential Responses
Risk Urgency Assessment
Expert Judgment
Planning
Inputs

Outputs

Risk Register
Time Management
OPA
Tools & Techniques
Data Gathering & Representing Tec.

Information Gathering Tec.
Quantitative Risk Analysis Modeling
Techniques
Expert Judgment
Probability
Definitions
The Likelihood of having the event on reality, based on Experience or Lessons learned
Agreed or ..?
Probabilities for any event to accrue cant be calculated or estimated, the most accurate way to have such variable is to
reference to company's record for previous similar projects, or out side experts who face or went through similar projects
Impact
p c
The effect
Th
ff t (ti
(time or money)) as number
b for
f Quantitative
Q tit ti AAnalysis
l i or as category
t
(l(large, M
Medium,
di LLow effect)
ff t) for
f Qualitative
Q lit ti Analysis
A l i that
th t the
th
project will suffer if the Event happened
Agreed or ..?
Impacts can be defined using Experts, But can be calculated as fixed values (Penalties, embracing or allowances) or can be
identified as categories (high impact, low Impact, etc)
Agreed or ..?
Categories can be defined for both Probability & Impact on a scale of (1 to 10) or (1 to 5)
Risk Score for Each Risk or Activity

y
Multiply
M
lti l th
the PProbability
b bilit titimes IImpactt tto gett a value
l (Qualitatively
(Q lit ti l or Quantitatively)
Q tit ti l ) ffor th
the Ri
Risks
k & the
th Activities
A ti iti (threats
(th t are positive
iti
Values & Opportunities are negative values)
Risk Score for Project
The Sum of all the Scores of all the Risks or the Activities in the Project
Agreed or ..?
The Definition can be done on the Activities or on the WBS (work packages) level
Risk Ranking
The Arrangement of Risks due to there Scores
Ri k Rating
Risk
R ti
Is A number Between 1 & 10 chosen to evaluate the Probability or Impact of a Risk
Source Experience
As Output of Qualitative Risk Analysis Lessons learned
Templates
R
Risk
Fa
actors
Important Single Formula Risk Factors
Probability
Impact
Expected Time of Risk to occurs

Frequency of Risk event
Number Related
to the Risk
Qualitative Score
Quantitative Amount
(
(Money
or Time)
i )
express the
th Ri
Riskk category
t
U d to
Used
t calculate
l l t reserves
location of Risk in the

Probability
y & Impact
p Matrix
Used in Quantitative
Simulation
Identify the total Project Risk

Score & Go/No Go Decision
Identify the total Project Risk

Score & Go/No Go Decision


Sensitivity Analysis
To have the ability & Culture to Do Risk

Analysis
If Not
Dont waste your time & money
If
Yes
When?
How..?
How much..?
All Risk
information are
available &
Evaluated with
acceptable quality
Engineering Dep.
O id Experts
Outside
E
Estimation Dep.
Cost Control Dep.
Identify
Procurement Dep.
Risks
Construction Dep.
Coordinators
Detailed
Risk Register
Top Management
As out put
As out put
Qualitative
Risk
Analysis
YES
Choose for
Further
Analysis
scales of
Probability &
impacts
Probability &
impact for Each risk
Score & ranking
As out put
Do what?
Risk Team , Risk manager & RAM
Customer
HR Dep.
Who
?
Watch List
Create Risk
Breakdown
structure
RBS
Quantitative
Risk
Analysis
Probabilistic Scenarios Management

Reserves & Management
Plan Risk
Responses
Simulations
Sub Decisions
Contingency &
Fallback Plans
Monitor & control Risks, Through Risk meetings Evaluate Responses Document the New Risks & create lessons
learned Starting From the risk Planning process
Ass
out pput
Plan Risk Management
After every single group of analysis The previewed curve took place
Variables (Duration, Cost , Man-hours, Finish date or Start Date )
Targe
t

Planning
Inputs
5. Plan Risk Responses

Outputs
Tools & Techniques
Risk Register
Strategies for Negative Risks Threats


Strategies for Positive Risks Opportunities
Contingent Responses Strategies
Expert Judgment
Risk Related - Residual Risks
PM Plan Update
Inputs
6. Monitor & Control Risks

Outputs

Risk Register
Work Performance Report
Tools & Techniques
Risk Assessment
Risk Audit
Variance & trend Analysis
Technical Performance Measurement
Reserve Analysis
Status meeting

OPA Update
Change Request
PM Plan Update
Agreed or ..?
The Most Important Process of Risk management if we will do RM Is to Identify the Risks
Agreed or ..?
Most of the Construction risks are linked to the construction schedule
Agreed
g
or ..?
Most of the Risks In Construction are with high

g Impact
p & Controlled Probability
y
Agreed or ..?
Risk as A decision making tool & the Scenario management can be mostly Used in Construction
Agreed or ..?
Risk as A decision making tool Can not be done in the Detailed Level of Schedule
Processes of RM
Construction Point
of View
Decide To Do RM &
RM Planning
Identify Risks
Use a prompt list List of Risk Categories
Review your Own Companys historical
records and other documentation
Analyze Risk
Score & Ranking for Risks
Team
Brainstorming
High Level Risk Analysis for Cost
Conduct
C
d t a Pre-mortem'
P
t ' Imagine
I
i the
th
project is completed or failed
Hi h LLevell Risk
High
Ri k Analysis
A l i for
f Ti
Time
Affinity diagrams Grouping of Identified

Expert
p interviews
Nominal group technique Group thinking
Executives
Matrices & Templates for Risk Categories

Detailed Level Scenarios Analysis for Time & Cost
All Time An cost Scenarios outputs Reviewed
Cause and effect diagram Fish bone
Strengths, weaknesses , opportunities , and

threats (SWOT)
Simply How we are going

to deal with risks
Complicatedly What is the
effect of our responses to
the Risks probabilities &
Impacts
Use the New Modified
Probabilities & Impact To
Re Simulate the Project
outputs
Delphi technique Individual Experts
Failure modes and effects analysis
Plan Risk Responses
Exploit
Share
Enhance
Transfer
Accept
Avoid
Mitigate
Plan Risk Responses

Categories
Monitor & control Risks, Through Risk meetings Evaluate Responses, Document the New Risks & create lessons learned
Starting From the risk Planning process
Group (C) - Based & depend on the Identified risks & there Probability , Impact & Activity Sensitivity Using Risk
Register & Qualitative & Quantitative Risk Analysis & Risk Responses
Qualitative Ranked
Identified RISK
New Risks
Residual Risks
Pre Mitigated Risks Data
Post Mitigated Risks Data
Mandatory Data To be Defined to

Software or manual analysis
Threat or Opportunity & Essay details
Mandatory Data To be
Defined to Software or
manual analysis
Threat or Opportunity & Essay details
Cause & Effect ,Title & Description for Risk
Cause & Effect ,Title & Description for Risk
Probability as Qualified (Low, Medium, High &

percentage)
Probability as Qualified (Low, Medium, High &

percentage)
S h d l IImpact (Low,
Schedule
(L
Medium,
M di
High
Hi h & Value)
V l )
S h d l IImpact (Low,
Schedule
(L
Medium,
M di
High
Hi h & Value)
V l )
Project
Cost Impact (Low, Medium, High (Rank & Value)
Performance Impact Description
Performance Impact Description
Score (calculated)
Score (calculated)
Assignment
g
on the Activities ((Impacted
p
Activities))
Assignment
g
on the Activities ((Impacted
p
Activities))
Special Quantitative Probabilities & Impacts on the

Assigned Activities (cost &/or Schedule
Special Quantitative Probabilities & Impacts on the

Assigned Activities (cost &/or Schedule
Risk Owner
Exploit
Risk Action Owner
Share
Risk Manager
Enhance
Transfer
Accept
Avoid
Fall Back Plans
Mitigate
Plan Risk Responses
Contingency Plans
After Mitigation
Project
j Procurement Management
g
Monitor & control the performance of the

seller according to the contact
Select the sellers for different procurement
& sign the contract with the selected seller
Plan the Seller selection criteria & prepare the
procurement documents & fix the type of contract
to be used
Main outputs
M
Projeect Proocurement Maanagem

ment
Final acceptance of the product &

release of payment for closing the
proc rement
procurement
Plan who will be the team of procurement &

when each procurement will take place
Understanding For Needs
Over all life cycle cost
Technical capability
Price
Management Approaches
Technical Approaches
Contract includes
Contract Types & contents
Fixed Price Contract
Cost Reimbursable contacts
Time & Materials Contracts
Firm Fixed Price Contract

(FFP)
Cost Plus Fixed Fee (CPFF)
Experts, Staff
S ff & acquisition
i ii
Fixed Price Incentive Fee

Contract (FPIF)
Cost Plus Incentive Fee

(CPIF)
Fixed Price With Economic

Adjustment Contract (FPIF)
Cost Plus Awarded Fee

(CPIF)

S l t d SSeller
Selected
ll
Procurement Contracts Award
Procurement documentation
Close Procurement
More Risk
on the
Vendor
More Risk on
the Buyer
Statement of work - deliverables

Schedule baseline
Performance reporting System
Pi i
Pricing
Fee & retentions
Penalties
Inspection criteria
Acceptance criteria
Project Procurement Management

Planning
Inputs
1. Plan Procurement
Outputs
Tools & Techniques
Risk Management
Risk Related contract Decision
Risk Management
Risk Register
Cost Management
Activity Cost Estimates
Time Management
Activity Resource Requirements
Scope Management
Scope Baseline
Scope Management
Cost Management
Time Management
Project Schedule
EEF & OPA
Teaming Agreement
Make or Buy Analysis

Contract Types
Expert Judgment
Change request
Procurement Processes
Planned
Number of
Submittals
Categorized
By Division
Actual
Number of
Submittals
Materials log
Procurement Processes_ Summary
Submittal
Approval
Awarding & ordering
Submittal & Approval
Manufacturing
Budgeted
cost for the
division
(all divisions)
Actual work
orders issued
for each
division
Shipping
Delivery on site
Categorized
By Division
Awarding & ordering
Categorized By Division & eliminated

to only The Items Supplied by Saudi
Oger or Oger Int. & corresponding the
M
Manufacturing
f t i
& Shipping
Shi i
Ti
Time
Schedule with Equivalent weighting
system
Planned EQ.
W
Weight
based on the
cost & the
fixed
duration
Actual % of
the EQ.
W
Weight
based on
contacting
the
Supplying
Dep.
Manufacturing
Categorized By Division & eliminated only to the Long lead items defined for each division by the
procurement dep.
p
p The ideal approach
pp
is to load the q
quantities on the delivery
y activities & track by
y
quantities delivered, the current tracking Approach is to depend on the construction % to roughly
identify the Delivery % complete
Actual % of
the EQ.
W
Weight
based on
contacting
the
Supplying
Dep.
Planned EQ.
W
Weight
based on the
cost & the
fixed
duration
Shipping
Planned EQ.
Weight
based on the
cost & the
fixed
duration
Actual % of
the EQ.
Weight
based on
contacting
the
Supplying
Dep.
Delivery on site

1 Plan Procurement
1.
Contract Types
Fixed Price Contract
Cost Reimbursable contacts
Time & Materials Contracts
Firm Fixed Price Contract (FFP)
Cost Plus Fixed Fee (CPFF)
Experts, Staff & acquisition
Fixed Price Incentive Fee Contract (FPIF)
Cost Plus Incentive Fee (CPIF)
Fixed Price With Economic Adjustment

Contract (FPIF)
Cost Plus Awarded Fee (CPIF)
More Risk on
the Vendor
More Risk on
the Buyer
y
Procurement management
g
Plan Includes Guidance for:
Procurement Statement of work ((SOW))
Types of Contract To be used
Describes the procurement items in sufficient details to allow

prospective seller to determine if they are capable of providing
the product or service
Risk Management Issues
Identify Requirements for Performance

Procurement Documents
Schedule Dates for each contract
Independent Estimates of Evaluation Criteria
Directions to provide sellers
Activities of Project Management team in Contracting
Directions to provide sellers
Activities of Project Management team in Contracting
Templates Used in Procurement
Managing Multiple Supplier Methodologies
Identify Prequalified Seller
Coordination with other projects aspects
Procurement Metrics used to

manage contracts & evaluate
sellers
Constrains & Assumption
Lead time to Purchase
RFI : Request For Information

RFQ: Request For Quotation
IFB: Invitation for Bid

1. Plan Procurement
EX. 01
Cost Plus Incentive fee Contract
Target Cost 210, 000 $
Target Fee 25,000
25 000 $
Sharing Ration 80/20
Ca
alculations
Contract Types
Examples
Fixed
Fi
d Price
P i IIncentive
i ffee Contract
C
Target Cost 150, 000 $
Target Fee 30,000 $
Calculationss
EX. 02
C ili P
Ceiling
Price
i = 200,000
200 000 $
Fixed Price Incentive fee Contract

Target Cost 9,000,000 $
Target Fee 850,000 $
Ceiling Price = 12,500,000

12 500 000 $
Calculation
ns
EX. 03
T
Target
t P
Price
i = 210000+25000 = 235
235,000
000
$
Actual @ completion cost = 200,000 $
Final Fee = 25,000 + 2,000 = 27,000 $

Fi l P
Final
Price
i = 200
200,000
000 + 27
27,000
000 =
227 000$
227,000$
Saving =210,000 - 200,000 $ = 10,000 $

Seller Share = 10,000 * 20% = 2,000 $
T
Target
t P
Price
i = 150
150,000+30,000
000+30 000 = 180
180,000
000
$
Actual @ completion cost = 210,000 $
O
Overage
=150
=150,000
000 - 210
210,000
000 $ = (60
(60,000)
000)
$
Seller Share = ((60,000)
,
) * 40%
% = (24,000)
( ,
)$
Finall Fee
Fi
F = 30,000
30 000 - 24,000
24 000 = 6,000
6 000 $
Fi l Price
Final
P i = 210
210,000
000 + 6
6,000
000 =
216,000$
The seller will only receive = 200,000$
Target Price = 9,000,000+ 850,000 = 9,850,000 $

Actual @ completion cost = 8,000,000 $
Saving = 9,000,000 - 8,000,000 $ = 1,000,000$
Seller Share = 1,000,000 * 30% = 300,000 $
Final Fee = 850,000 + 300,000= 1,150,000 $
Fi l P
Final
Price
i =8
8,000,000
000 000 + 1
1,150,000
150 000 =
9,150,000 $
1 Plan
1.
Pl Procurement
P
Under Standing For Needs

Over all life cycle cost
Technical capability
Risk
Management Approaches
Technical Approaches
Warranty Period
Fi
i l capacity
it
Financial
Production capacity
Business Size & type
Past Performance
References
Intellectual property rights
Price
Potential Weigh
P
W
On as scale ideentifies in O
OPA

Executing
Inputs
Outputs

Qualified Seller List
Seller Proposal
Project Documents
Teaming Agreement
Tools & Techniques
Bidder Conference
Selected Seller
Proposal evaluation Criteria
Procurement Contracts Award
Expert Judgment
PM Plan Update
Independent Estimate
Project Documents Update
Advertising
Change request
Internet Search
Procurement Negotiation
OPA
Inputs
3. Administer Procurement
Outputs
Tools & Techniques
Contract Change control System

Procurement performance review
Contracts
Inspection & Audit
Performance report
OPA Update
P f
Performance
Report
R
t
PM Plan Update
Approved Change request
Payment System
Change request
Work Performance information
Claim Administration
Record management system
C t t includes
Contract
i l d
Statement of work - deliverables
Fee & retentions
Schedule baseline
Penalties
Performance reporting System
Incentives
Period of Performance
Insurance & performance Bonds
Roles & Responsibilities
Subordinates approval
Sellers place of Performance
Subcontractors Approval
Pricing
Change requests handling
P
Payment
t tterms
T
Termination
i ti & alternatives
lt
ti
Place of Delivery
Alternative Disputes resolution (ADR)
Inspection criteria
Acceptance criteria
Warranty
Product Support
Limitation of Liabilities
3 Administer Procurement
3.
Application of the appropriate project Management processes to the contractual relations &
integration of the outputs to overall management processes of the project

Closing
Inputs
4. Close Procurement
Outputs

Tools & Techniques
Procurement Audit
Close Procurement
Negotiation settlement
OPA Update
Record management system
Project
j Integration
g
Management
g
Project Integration Management

Initiation
Inputs
1. Develop Project Charter

Outputs
Project Statement of work
Tools & Techniques
Expert Judgment
Business case
Project Charter
Contracts
EEF & OPA
Planning
Inputs
2. Develop Project Management plan

Outputs
Tools & Techniques
Project Charter
Outputs from planning Processes
Expert Judgment
EEF & OPA

Execution
Inputs
3 Direct & Manage Project Execution

3.
Outputs

Approved Change Requests
EEF & OPA
Tools & Techniques
Expert Judgment
Project Management Information
System
y
((PMIS))
Deliverables
Change Request
PM plan & project Documents Update

Includes the activities & process needed to identify, define, combine, unify & coordinate various process & Project
management activities with the project management process groups
Project Charter
Formally initiate the project

Provide project manager with the authority
to apply resources to project activities
Approved By the sponsor
Project Statement of work

(SOW)
Business needs
Product scope description
Strategic plan
P j t Management
Project
M
t plan
l
Life Cycle of the project
Project Management processes used
Level of implementation of each process
Tools & techniques for accomplishing the
processes
p
How work will be executed to accomplish
p j objectives
project
j
Change & configuration Management plan
Techniques for communicating Stakeholders
Key management review for contracts & timing
Business Case
Necessary information from a business stand point to
determine whither or not the project worth the required
investments

Monitoring & Controlling
Inputs
4. Monitor & Control Project Work

Outputs
Tools & Techniques
Expert Judgment
Performance reports
EEF & OPA
Project Management Information System

(PMIS)
(
)
Change Request
PM plan & project Documents Update
Monitoring & Controlling

Inputs
5. Perform Integrated Change Control

Outputs

Tools & Techniques
Expert Judgment
Change Requests Status Update
Change Requests
PM p
plan & project
p j Documents Update
p
EEF & OPA

Closing
Inputs
6 Close Project or phase

6.
Outputs

Accepted Deliverables
Tools & Techniques
Expert Judgment
Final Product
Results Transmission
OPA
OPA Update

Direct & Manage Project Execution
C
Corrective
ti Action
A ti
Documented Direction for executing the project work to bring the expected future performance of the project work in line with the project
management plan
Preventive Action
Documented Direction to perform an activity that can reduce the probability of negative consequences associated with project risks
Defect Repair
The formally documented identification of a defect in a project component with a recommendation to ether repair the defect or
completely replace the component
P f
Perform
IIntegrated
t
t d Ch
Change Control
C t l
Monitor & Control Project Work
Configuration Management Plan
A system provides a standardized & effective way to centrally manage a proposed change to the baseline (schedule, Budget or
Scope)
Establish an evolutionary method that constantly identify & request changes
Provide opportunities
pp
to continuously
y validate & improve
p
project
p j by
y considering
g the inputs
p of each change
g
Provide mechanisms for the project management team to consistently communicate all approved & reflected
Change to all stakeholders

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Is a Temporary, Unique , budgeted & time framed endeavor

Planning Part of the project according to the

progressively elaboration concept

Project Management Frame work & Organization Structure

STH. IImpact on the projeect

Project Management Frame work & Organization Structure

High Impact Low Interest

High Impact High Interest

Low Impact Low Interest

Low Impact High Interest

Stakeholder Impact Matrix for the project

STH. Interest in The Project

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Project Management Frame work & Organization Structure

Projectized Organization Structure

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Week Matrix Organization Structure

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Balanced Matrix Organization Structure

Project Management Frame work & Organization Structure

Strong Matrix Organization Structure

Program Controls manager

Cost Control Team

Document Control Team

Project Controls manager

Site Civil work

General construction Manager

2+1 Site Civil work Shop

Document Control Team

Civil work construction

1+1 Site MEP work Shop

1 Site Civil work

Site Engineers &

General construction Manager

Concrete plant Manager

(one for 2 Buildings)

(one for 1 Buildings)

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