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8 December 2004 .Construction Cost Standard for State Buildings Tokyo.

CONSTRUCTION COST STANDARD OF CONSTRUCTION COST & GUIDELINE is NECESSARY .BACKGROUND BACKGROUND DIVERSE CONDITIONS produce DIVERSITY of DESIGN. CONSTRUCTION TYPES and METHODS.

CONSTRUCTION. and DEMOLITION GUIDELINES FOR CONSTRUCTION FIRMS AND USER/OWNERS BETTER QUALITY OF BUILDING CONSTRUCTION PROVIDING INFORMATION ON BASIC AND UNIT PRICE . OPERATION AND MAINTENANCE. LEASING. DESIGN AND PROCUREMENT.GOALS: β€’ CONTROL IN THE STATE BUILDINGS DEVELOPMENT PROCESS o o o o o o β€’ β€’ β€’ PROGRAMING.

STATE BUILDINGS DEVELOPMENT PROCESS LOCAL BUILDING REGULATIONS PROGRAMING ASSES MENT PERMIT DESIGN METHOD S of F CONSTRUCTION O&M PRESERVATION CODES. AND GUIDELINES DEMOLITION . STANDARDS.

etc SPECIAL Βƒ Βƒ Βƒ Βƒ President Palace Nuclear Instalation Laboratorium Monumental Buildings.CLASSIFICATION OF STATE BUILDINGS CLASS USES OF THE BUILDING Βƒ Βƒ Βƒ Βƒ 1.2 Storey building. etc ADVANCE Βƒ Βƒ Βƒ Βƒ Βƒ 3 storey building and more Building with more than 500 m2 State housing (A and B class). less than 500 m2 State Housing (C class) Hospital (C class) Schools.etc ORDINARY . multy story housing Hospital (A and B class) University.

STATE BUILDINGS DEVELOPMENT COST: CONSTRUCTION COST NON STANDARD STANDARD DESIGN FEE SUPERVISION FEE PROJECT MANAGEMENT FEE .

Standard Cost Exit  ESTABLISHED BY LOCAL GOVERNMENT. per M2 β€’ FENCE CONSTRUCTION COST. per M2 β€’ HOUSING CONSTRUCTION COST. in 468 MUNICIPALITIES/ REGENCIS (in accordance with PRESIDENTIAL DECREE)  MOSTLY ARE ARCHITECTURE AND STRUCTURE WORKS  DECIDED YEARLY  COMPRISE OF: β€’ BUILDING CONSTRUCTION COST. per M’ .

AGAM 215 153 154 110 137 114 1 KAB. KEPULAUAN RIAU 327 234 239 171 190 158 1 KOTA JAMBI 280 200 167 119 126 105 2 KAB. TEGAL 205 146 174 125 119 117 2 KAB. KULON PROGO .SAMPLE OF CONSTRUCTION COST STANDARD (US $/M2) YEAR 2004 NUM 1 2 MULTY STOREY SINGLE STOREY BUILDING BUILDING STATE HOUSING PER-M2 PER-M2 PER-M2 MUNICIPALITY/ REGENCY NOTE ADVANCE ORDINARY ADVANCE ORDINARY Class A/ B Class C 1 KOTA BUKITTINGGI 238 170 189 135 147 123 2 KAB. INDRAGIRI HULU 298 213 182 130 145 120 2 KAB. BANJARNEGARA 203 145 171 122 129 114 284 203 209 149 172 144 SUMATERA BARAT RIAU 1 KOTA PAKANBARU 3 4 5 JAMBI BENGKULU JAWA BARAT 1 KOTA DEPOK 6 7 JAWA TENGAH DI YOGYAKARTA 1 KAB. SELUMA 330 236 237 169 192 158 354 253 240 171 211 176 1 KAB. MUARO JAMBI 281 201 245 175 195 163 1 KOTA BENGKULU 326 233 217 155 168 140 2 KAB.

JEMBRANA 34 45 37 50 35 37 38 40 1 KAB. MUARO BUNGO 57 76 63 84 55 60 60 66 1 KAB. BANJARNEGARA 32 27 39 27 30 29 35 29 52 51 57 56 35 42 39 46 1 KOTA KEDIRI 51 72 56 79 48 57 53 63 2 KAB. KOTA. DENPASAR 84 75 92 82 48 62 53 68 2 KAB. KUTAI TIMUR 135 98 149 108 66 81 73 89 74 66 81 72 68 54 75 59 SUMATERA BARAT JAMBI JAWA TENGAH DI YOGYAKARTA 1 KAB. AGAM 49 60 54 67 39 49 43 54 1 KAB. PASIR 108 119 81 89 67 74 80 88 2 KAB. KERINCI 46 63 50 69 45 50 49 55 2 KAB. KAB. KASONGAN NOTE . PASAMAN 53 65 58 71 46 53 50 58 2 KAB.SAMPLE OF CONSTRUCTION COST STANDARD (US$/M2) YEAR 2004 FENCE PER M2 (for HOUSING) FENCE PER M2 (for BUILDINGS) ORDINARY NUM MUNICIPALITY/ REGENCY 1 2 3 4 6 7 8 CLASS A & B CLASS C FRONT REAR FRONT REAR FRONT REAR FRONT REAR 1 KAB. KULON PROGO 5 ADVANCE JAWA TIMUR BALI KALIMANTAN TIMUR KALIMANTAN TENGAH 8. TEGAL 58 51 64 56 37 41 41 46 2 KAB. BOJONEGORO 51 72 60 79 58 57 64 62 1.

Non-Standard COST  NOT EXCED THAN 2.5 OF STANDARD COST (Y)  MOSTLY ARE ELECTRICAL AND MECHANICAL WORKS Works items Exit Cost (% ) AC System Elevator/Escalator Sound System Telephone and PABX Electrikal Fire System Termite control Sewerage Treatment Plant (STP) Interior Pondation Fasilities for defable people Special Lightning Protection Site infrastructure Basement (per M2) Quality improvement 25-60% 20-30% 7-15% 7-15% 17-30% 17-30% 2-6% 5-10% 30-40% 10-15% 5-12% 2-5% 4-10% 150% 15-30% of X of X of X of X of X of X of X of X of X of X of X of X of X of Y of Z .

23 PROSENTASE KOMPONEN BIAYA (dlm % ) 8.28 3.92 1.45 1.00 0 8 20.26 1.16 2.0 00 9 BIAYA KONSTRUKSI FISIK (dalam Juta Rp) 50.000 13 .000 5 2.50 0.83 7.62 Pengawasan 3.80 1.00 Pengelolaan Proyek 3.75 1.00 6.000 6 5 .18 0.72 1.65 Perancangan 4.75 1.14 0.000 12 500 .23 8.16 1.94 2.65 0.27 2.16 0.86 0.43 1.00 4.00 8.00 6.000 11 200.90 3.73 2.90 4.63 5.14 0.35 5.27 1.44 2.00 1.000 10 100.28 0.00 2.37 0.00 5.C URVA PR OSEN TASE KOM PON E N B IAYA PEMB AN GUN A N B AN GU N AN GED UN G N E GAR A KLA SIFIK ASI S ED E RH AN A 9.00 1.21 0.65 1.82 3.35 5.18 1.00 0 1 100 2 2 50 3 500 4 1.000 7 1 0.

42 3.000 6 0.45 0.60 1.00 9.55 7.19 1.25 1.68 2.78 0.000 9 BIAYA KONSTRUKSI FISIK (dalam Juta Rp) 50.80 3.00 9.00 2.80 3.000 12 500.25 Manajemen Konstruksi Pengawasan 4.25 7.CURVA PROSEN TASE KOM PONE N BIAYA P EMBAN GU NAN BAN GUNAN GE DUN G N EGARA KLASIF IKASI TIDAK SED ERHAN A 10.90 2.25 5.00 Pengelolaan Proyek 2.30 0.00 6.00 3.48 2.00 7.20 5.20 5.53 5.45 4.20 1.40 10.17 0.37 4.00 6.00 7.32 2.000 10 100.50 2.00 6.00 PRO SENTASE KOMPONEN BIAYA (dlm %) 8.30 2.92 3.000 7 0.000 5 0.84 1.00 0.000 13 .50 4.19 0.90 1.55 3.80 2.02 2.35 Perancangan 5.00 10 100 2 250 3 500 4 1.000 8 20.89 1.00 9.23 1.72 2.000 11 200.00 6.15 1.90 0.70 3.25 6.00 1.00 1.50 2.50 2.20 3.

90 2.000 8 0.70 5.10 3.00 1.75 2.00 3.75 9.30 1.60 3.35 4.20 7.23 50.000 12 13 .45 3.00 8.10 2.68 2.00 Pengelolaan Proyek 4.00 0.15 3.00 4.000 10 0.12 0.85 3.000 7 0.40 10.90 0 1 100 2 250 3 500 4 1.00 0.85 5.17 2.CURV A PROSEN TASE KOMPON EN BIAYA P EMBAN GUNAN BANGUN AN GEDUN G N EGARA KLASIF IKASI KH USUS 10.15 1.20 1.30 20.68 6.53 5.77 2.000 5 0.87 Manajemen Konstruksi 4.75 7.89 6.50 1.95 PROSENTASE KOMPONEN BIAYA (dlm %) 9.00 9.00 6.000 9 BIAYA KONSTRUKSI FISIK (dalam Juta Rp) 0.00 8.70 2.95 7.000 500.00 Perancangan 5.000 6 0.90 2.000 11 200.49 2.19 100.17 0.00 5.90 2.

STATE HOUSING in INDONESIA .

STATE BUILDINGS in INDONESIA .

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THANK YOU .

PENJADWALAN PROYEK Pengukuran Masa Pekerjaan Proyek BAR CHART METHOD NETWORK ANALYSIS M U H A M M A D TA U F I Q .

Kita menyebutnya sebagai masa sulit. Bahkan. agar bisa tetap berada dalam kelas pun ia harus menunaikan pekerjaan rumahnya setiap malam. Tapi. . hanya bila anda memalingkan pandangan dari tujuan. Rintangan tampak bagai wajah yang menakutkan. Kita mendapatkan intan yang terbaik dengan menggosoknya. Begitu pula.Bukankah seorang murid saja harus menempuh ujian agar bisa naik kelas. bagaimana anda bisa sampai di ujung cakrawala bila terhenti di situ. licin dan terjal. Kesulitanlah yang membawa anda naik ke tangga keberhasilan yang lebih tinggi. kemudahan melenakan anda untuk tetap berputar-putar di lantai bawah. kesejatian kita takkan terujud bila tak diuji dengan kesulitan. Bagaimana cara anda mengatasinya menentukan apakah anda bisa terus melangkah di jalan keberhasilan atau tidak.SULIT MEMBAWA NI’MAT Kita mahfum bahwa perjalanan ini tak mudah. Pedang yang tajam tercipta karena tempaan dan panas yang melelehkan. Cepat atau lambat kita akan melintasi daerah yang berbatu. Sedangkan.

Kapan proyek berakhir 2. Bagaimana urutan rangkaian pekerjaan untuk setiap bagian. Bagaimana menetapkan pekerjaan-pekerjaan yang harus mendapat perhatian khusus . Bagaimana menunjukkan pekerjaan-pekerjaan yang memiliki waktu terlama dalam suatu proyek (jalur kritis) 4. baik start (mulai) maupun ending (akhir) 3. Bagaimana menentukan pekerjaan-pekerjaan yang dapat ditunda dan berapa lamakah waktu maksimum penundaan yang diijinkan 5.SPESIKASI WAKTU PEKERJAAN PROYEK (PENJADWALAN PROYEK) 1.

khususnya jadwal kegiatan proyek secara sistematis dan analitis untuk mendapatkan efisiensi dan efektivitas pekerjaan . maka diperlukan metode dan teknik yang tepat. Analisis Jaringan Kerja (Network Analysis) Berupa penyajian perencanaan dan pengendalian.T U J UA N P E N JA D W A LA N Peningkatkan kualitas perencanaan dan pengendalian dalam menghadapi sejumlah kegiatan dan kompleksitas pekerjaan proyek. Metode Bagan Balok (Bar Chart) 2. yakni: 1.

BAR CHART
METHOD
GANTT CHART

TUJUAN
Identifikasi terhadap unsur waktu dan urutan rencana
kegiatan (pekerjaan) yang meliputi waktu mulai
(starting time), waktu penyelesaian (Solution Time)
dan saat pelaporan (Reporting)

DEFINISI
Bagan batang horisontal menggambarkan pekerjaan
proyek berdasarkan kalender, tiap batang mewakili
satu pekerjaan proyek, dimana pekerjaan didaftar
secara vertikal pada kolom kiri, dan pusat horisontal
adalah garis waktu kalender.

GANTT CHART MODEL

NO PEKERJAAN
1

A

2

B

3

C

4

D

5

E

6

F

n

……
Selesai
= SLACK

1 2 3 4 5 6 7 …..………………………………30

NETWORK
ANALYSIS
PROJECT EVALUATION and
REVIEW TECHNIQUE
(PERT)

Hal penting yang diperlukan untuk setiap pekerjaan proyek,yaitu:
1. Urutan rangkaian aktivitas untuk setiap pekerjaan
2. Waktu yang dibutuhkan dalam menyelesaikan setiap pekerjaan
Urutan pekerjaan menunjukkan pekerjaan mana yang harus
dikerjakan terlebih dahulu sebelum mengerjakan pekerjaan
berikutnya
Urutan pekerjaan digambarkan dalam diagram jaringan (network
diagram) atau arrow diagram, dimana diagram jaringan ini
menggunakan simbol:
1. Simpul (node) menggambarkan suatu kejadian (event)
2. Panah (arrow) menggambarkan suatu kegiatan (activity)

A

C
E

B
D

HAL PENTING (DARI CONTOH Diagram Jaringan)
1.
2.
3.
4.

1,2,3,4,5 disebut sebagai event (kejadian)
A,B,C,D,E disebut sebagai aktivitas (activity)
Head event, kejadian yang mengakhiri suatu aktivitas
Tail event, kejadian yang mengawali suatu aktivitas
A
1

A

2

Aktivitas A diawali dengan tail event 1
dan diakhiri dengan head event 2

C
E

B
D

1. Aktivitas A dan B mrp aktivitas pertama dan
dikerjakan secara serentak
2. Aktivitas A mengawali aktivitas C artinya
sebelum aktivitas A berkahir aktivitas C
belum dapat dikerjakan, demikian pula
lainnya
3. Aktivitas E baru bisa dikerjakan setelah
aktivitas C

Konsep 1. setiap aktivitas hanya diwakili oleh
satu panah di jaringan, tidak ada sebuah
aktivitas yang diwakili dua kali di jaringan
(tidak ada kegiatan yang kembar)

A

1

A

2
3

Konsep Salah

Konsep 2. Tidak ada 2 aktivitas yang
ditunjukkan oleh 1 tail event dan head event
yang sama. Situasi seperti ini dapat terjadi
pada 2 atau lebih aktivitas yang dapat
dilakukan secara bersama, untuk itu
digunakana aktivitas dummy (dummy activity)
A

A

1
B

2
3

A
1
B
Konsep Salah

d

2
d

1
B

2

2

2
B

1
A
d = dummy act.

Konsep Benar

2

5. Jalur aktivitas kritis dari awal sampai akhir aktivitas didalam diagram jaringan. Disebut aktivitas kritis bila penundaan waktu aktivitas akan mempengaruhi waktu penyelesaian keseluruhan proyek 3. artinya jalur kritis menunjukan aktivitasaktivitas kritis didalam proyek 2.J A LU R K R I T I S ( C R I T I C A L PAT H ) 1. maka waktu penyelesaian proyek secara keseluruhan akan tertunda . Jalur kritis ditunjukan oleh waktu paling lama dalam penyelesaian proyek. artinya jika ada satu saja aktivitas dijalur kritis yang tertunda. Sedang aktivitas tidak kritis adalah jika kegiatan memilik waktu yang dapat ditunda 4. Waktu yang dapat ditunda didalam aktivitas tidak kritis disebut dengan slack atau float.

Penentuan jalur kritis. Penundaan di jalur tidak kritis tidak akan menunda waktu penyelesaian proyek.Penundaan aktivitas dijalur kritis akan menyebabkan penundaan waktu penyelesaian dari proyek 7.J A LU R K R I T I S ( C R I T I C A L PAT H ) 6. waktu terpanjang (terlama) dari setiap jalur b. nilai 0 (null) pada perhitungan slack . ada dua cara: a. sejauh penundaan tidak melebihi waktu slack untuk setiap aktivitas tidak kritis 8. Jalur kritis mempunyai 2 alasan: a.Waktu penyelesaian proyek tidak dapat dikurangi kecuali satu atau lebih aktivitas dijalur kritis dapat dipercepat penyelesaiannya b.

artinya: 1.ALGORITHMA JALUR NI : Nomer identifikasi kejadian ES : Earliest Star time (Waktu mulai tercepat) : Kapan suatu aktivitas tercepat dapat mulai dikerjakan LS : Latest Finish time (Waktu Selesai terlama) : Kapan suatu aktivitas terlama dapat diselesaikan Simbul Node B A C Contoh Aplikasi DARI GAMBAR SEBELAH. LF untuk aktivitas A paling lama dilakukan sampai dengan waktu ke 17 . Kejadian nomer 3 2. ES untuk aktivitas B dan C paling cepat dilakukan setelah waktu ke 9 3.

yaitu: 1. Tahap Backward Pass. Ta h a p F o r w a r d P a s s (Tahap menghitung ES dari node awal maju sampai node akhir) ES2 ES4 ES1 C A 9 7 ES3 B 10 D 15 PERHITUNGAN: ES1 = 0. untuk menghitung LF 1 . Tahap Forward Pass. karena start event ES2 = ES1 + W(A) = 0 + 9 = 9 ES3 = ES1 + W(B) = 0 + 10 = 10 ES4 = ES2 + W(C) = 9 + 7 = 16 ES3 + W(D) = 10 + 15 = 25 ES4 yang diambil terbesar nilainya yaitu 25 Catatan: W(A): Waktu aktivitas A . untuk menghitung ES 2.TEKNIK PERHITUNGAN ES dan LF Teknik perhitungan dibagi atas 2 tahap pekerjaan.

W(B) = 10 – 10 = 0 LF4 LF2 .W(D) = 25 – 15 = 10 LF2 = LF4 .W(A) = 18 – 9 = 9 LF1 yang diambil terkecil nilainya yaitu 0 LF3 Catatan: W(A): Waktu aktivitas A . Ta h a p B a c k w a r d P a s s (Tahap menghitung LF dari node akhir mndur sampai node awal) ES4 A LF1 9 B 10 C 7 LF2 D 15 PERHITUNGAN: LF4 = ES4.TEKNIK PERHITUNGAN ES dan LF 2 . yaitu : 25 LF3 = LF4 .W(C) = 25 – 7 = 18 LF1 = LF3 .

.

jalur kritis yang terjadi dengan menggunakan Gantt Chart .Sebuah proyek pekerjaan pengembangan sistem informasi diperoleh data waktu pekerjaan proyek (lihat tabel). tentukan lama proyek.

d2 = aktivitas dummy 8 27 F 3 8 12 5 22 d1 4 I 6 7 H J 15 d2 G 15 8 20 7 .D 2 A 10 1 E B C d1.

Jalur C. Jalur B. E. H = 10 + 22 + 8 = 40 hari 2. I = 8 + 7 + 20 = 35 hari 5. d1. J = 8 + 27 + 0 + 15 = 50 hari *) οƒ  Jalur Kritis 4. E. H = 8 + 27 + 8 = 43 hari 3. E. ditentukan dari perhitungan penjumlahan WAKTU jalur terlama setiap jalur. J = 8 + 0 +15 + 15 = 38 hari 6. J = 12 + 15 + 15 = 42 hari Dari perhitungan diatas diperoleh JALUR KRITIS adalah B. G. Jalur B. G. J (ditunjukkan warna merah) . Jalur B. Jalur B. D. Jalur A. yaitu 1. d2.PENENTUAN JALUR KRITIS D 2 A 10 1 E B C 8 27 F 3 8 12 5 22 d1 4 I 6 7 H J 15 d2 G 15 8 20 7 Penentuan Jalur Kritis dari Kasus diatas. F.

P E R H I T U N G A N E S ( E A R L I E S T S TA R T ) JOB KEJADIAN RUMUS PADA NODE PERHITUNGAN ES A Awal Kejadian ES1(A)=0 0 B Awal Kejadian ES1(B)=0 0 C Awal Kejadian ES1(C)=0 0 D Setelah Pekerjaan A ES2(D)=ES1(A)+W(A) ES2=0+10=10 10 E Setelah Pekerjaan B ES3(E)=ES1(B)+W(B) ES3=0+8=8 8 F Setelah Pekerjaan B ES3(F)=ES1(B)+W(B) ES3=0+8=8 8 G Setelah Pekerjaan dummy1 dan C ES4(G)=W(B)+W(d1) ES4(G)=ES1(C)+W(C) ES4=8+0=8 ES4=0+12=12 12 H Setelah Pekerjaan D dan E ES5(H)=ES2(D)+W(D) ES5(H)=ES3(E)+W(E) ES5=10+22=32 ES5=8+27=35 35 I Setelah Pekerjaan F ES6(I)=ES3(F)+W(F) ES6=8+7=15 15 J Setelah Pekerjaan dummy2 dan G ES7(J)=ES5+W(d2) ES7(J)=ES4(G)+W(G) ES7=35+0=35 ES7=12+15=27 35 .

E F.P E R H I T U N G A N L S . Kapan paling cepat suatu aktivitas dapat diselesaikan = ES + W Slack = waktu aktivitas yang dapat ditunda tanpa mempengaruhi total waktu penyelesaiaan proyek = LS – ES atau LF – EF Dari slack bisa ditentukan jalur kritis yaitu yang memiliki nilai 0 -> Jalur B. d a n S L A C K JOB WAKTU 1 ES 2 LF 3 LS 4=3-1 EF 5=2+1 SLACK 6=4-2 A 10 0 13 3 10 3 B 8 0 8 0 8 0 C 12 0 20 8 12 8 D 22 10 35 13 32 3 E 27 8 35 8 35 0 F 7 8 30 23 15 15 G 15 12 35 20 27 8 H 8 35 50 42 43 7 I 20 15 50 30 35 15 J 15 35 50 35 50 0 Finish 0 50 50 50 50 LS = Latest Start time. Kapan paling lama suatu aktivitas dapat dimulai = LF . E dan J .W EF = Earliest Finish time.

.GANTT CHART NO JOB 1 A 2 B 3 C 4 D 5 E n J 1 2 3 4 5 6 7 ….………………………………………………………………50 Selesai SLACK .

SELESAI SELAMAT BELAJAR SELAMAT BERKARYA SUKSES SELALU MUHAMMAD TAUFIQ .

PERHITUNG AN KELAYAKAN PROYEK .

INVESTASI ... PERHITUNGAN KELAYAKAN PROYEK PENGGUNAAN ATAU SEJUMLAH DANA / MODAL KEDALAM BENTUK AKTIVA (PROYEK) YANG DIHARAPKAN AKAN MEMBERIKAN NILAI MANFAAT (BENEFITS) DI MASA YANG AKAN DATANG DITINJAUΒ DARIΒ JANGKAΒ WAKTUΒ PEROLEHANΒ MANFAATΒ atauΒ  WAKTUΒ PENGEMBALIANΒ INVESTASIΒ ..Β 2 ‐ 3Β tahun) β€’ INVESTASIΒ JANGKAΒ MENENGAHΒ (MiddleΒ Term.Β 4 – 5Β tahun) β€’ INVESTASIΒ JANGKAΒ PANJANGΒ (LongΒ Term..Β dibagiΒ atas: β€’ INVESTASIΒ JANGKAΒ PENDEKΒ (ShortΒ Term.Β >Β 5Β tahun .

KapabilitasΒ danΒ KapasitasΒ Usaha JANGKAΒ WAKTUΒ INVESTASIΒ AKANΒ MEMPENGARUHIΒ SUMBERΒ  PEMBELANJAANΒ YANGΒ AKANΒ DIGUNAKANΒ ..KondisiΒ InternalΒ danΒ EksternalΒ Usaha 3.Β !!! .Β Menengah..NilaiΒ ManfaatΒ YangΒ Diharapkan 4.JANGKA WAKTU INVESTASI PERHITUNGAN KELAYAKAN PROYEK PenentuanΒ JangkaΒ WaktuΒ InvestasiΒ  (Pendek.Β atauΒ Panjang).KondisiΒ UsahaΒ (Proyek) 2.Β  didasarkanΒ pada: 1.

TABEL KEBUTUHAN INVESTASI 2. TABEL CASH FLOW 3.ALAT UNTUK ANALISIS INVESTASI PERHITUNGAN KELAYAKAN PROYEK 1. TABEL PENILAIAN .

START UP COST (KEBUTUHAN SOFTWARE) 3.JENIS PENDANAAN DALAM INVESTASI PERHITUNGAN KELAYAKAN PROYEK 1. PROJECT COST (KEBUTUHAN PROYEK) SELURUH KEBUTUHAN INI SEBAIKNYA DISUSUN DALAM TABULASI INVESTASI . PROCUREMENT COST (KEBUTUHAN HARDWARE) 2.

Β START‐UP.PELAKSANAANΒ :Β DARIΒ PLANNINGΒ SAMPAIΒ  IMPLEMENTASI .WAKTU:Β JATUHΒ PADAΒ TAHUNΒ KEΒ NOLΒ  (INITIALΒ COST) C.PROCUREMENT. MASAΒ PELAKSANAANΒ PROYEK A.Β PROJECTΒ COSTs B.ALOKASI INVESTASI & BIAYA TERHADAP WAKTU PROYEK PERHITUNGAN KELAYAKAN PROYEK 1.

PERHITUNGANΒ ESTIMASIΒ BIAYAΒ OPERASIONALΒ (CASHΒ  OUT) C.Β  DANΒ EATΒ (EARNINGΒ AFTERΒ TAX) D. WAKTU:Β JATUHΒ PADAΒ TAHUNΒ KEΒ 1Β SAMPAIΒ Β UMURΒ  EKONOMIS F.Β PAJAK. MASAΒ PASCAΒ IMPLEMENTASIΒ PROYEK A.ALOKASI INVESTASI & BIAYA TERHADAP WAKTU PROYEK PERHITUNGAN KELAYAKAN PROYEK 2. PERHITUNGANΒ ESTIMASIΒ PENDAPATANΒ (CASHΒ IN) B. PERHITUNGANΒ EBTΒ (EARNINGΒ BEFOREΒ TAX). PERHITUNGANΒ ESTIMASIΒ CASHΒ FLOWΒ (TABULASI) E. PELAKSANAAN:Β DARIΒ PASCAΒ IMPLEMENTASIΒ SAMPAIΒ  UMURΒ EKONOMIS .

PERHITUNGAN KELAYAKAN PROYEK PAY BACK PERIOD (PBP) RETURN ON INVESTMET (ROI) AVERAGE RATE OF RETURN (ARR) NET PRESENT VALUE (NPV) INTERNAL RATE OF RETURN (IRR) SELURUH PERHITUNGAN INI DISUSUN DALAM TABULASI KELAYAKAN PROYEK .ALAT UNTUK ANALISIS INVESTASI 1. 5. 3. 2. 4.

βˆ‘ Biaya ROI = βˆ‘ Biaya .Untuk Cash Flow per tahun TIDAK TETAP PBP = Selisih antara Investasi terhadap Cash Flow per tahun RETURN ON INVESTMENT βˆ‘ Pendapatan .PAY BACK PERIOD 1.Untuk Cash Flow per tahun TETAP PBP = INV / Cash Flow 2.

+ RESIDU) / 2)) X 100% . / DEPRESIASI ALAT) X 100% atau ARR = ((βˆ‘ EAT / UE ) / ((INV.Accounting Rate of Return ARR = (INV.

INV.PV of Cash Flow = Cash Flow per year x DF NPV = . + βˆ‘ PV of Cash Flow DFΒ Β :Β Β Β DiscountΒ Factor .

Untuk Internal Rate of Return (IRR).R1) X NPV1 IRR = R1 + (NPV1 – (NPV2)) dimana: R1 (nilai rate pada saat NPV positif) R2 (nilai rate pada saat NPV negatif) NPV1 = NPV pada saat positif NPV2 = NPV pada saat negatif . dengan RUMUS: (R2 .

CONTOH PERHITUNGAN …… !!! SILAKANKLICKDISINI AKANΒ DIΒ LINKΒ DENGANΒ FILEΒ EXCEL:Β CONTOHΒ KASUSΒ INVESTASIΒ SIM .

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000. harapan dari pengembangan sistem ini dapat meningkatkan produktivitas berupa kenaikan jumlah penyewa menjadi 40 dari 30 penyewa rata-rata per hari. untuk kebutuhan pengadaan perangkat sistem.sedang hari kerja dalam satu bulan 25 hari. berdasarkan studi kelayakan yang telah dilakukan dibutuhkan investasi sebesar 25. dan diperkirakan memiliki umur ekonomis 3 tahun. Bagaimanakah keputusan investor terhadap pelaksanaan pengembangan sistem ini. dalam rangka memberikan pelayanan yang prima bagi konsumen. dan pajak pendapatan sebesar 10%.600.. maka berapa Pay Back Period (PBP).000. jika bunga deposito 10% per tahun.000. dan Return On Investment (ROI). dengan harga sewa per cd tetap Rp. Total Pendapatan dan Total Beaya operasional per tahun. 3. 12. sementara bea operasional dan perawatan 65% per tahun terhadap pendapatan sehingga laba operasional per tahun rata – rata Rp.Sebuah rental video yang sudah cukup berkembang pesat ingin mengembangkan sistem dengan cara membangun sistem informasi berbasis komputer yang cukup handal.-. .000.-.

000 = Rp.000.000.2046 atau 2 tahun 3 bulan EAT / thn 11.340.200. 65% x 36.Karena Laba Operasional dalam 1 tahun sudah diketahui. maka: Total Pendapatan dalam umur ekonomis.000 = = 2. 25.000.000 x 25 x 12 = Rp.000. sebesar Rp.Total Biaya dalam umur ekonomis. 70.340. 23.000. adalah : Pendapatan per tahun : 40 x 3.000. 108.000. 12.Maka Pajak (PPn) dalam 1 tahun.Dapat dihitung nilai dari : Pay Back Period (PBP) adalah : Investasi 25. 10% Rp. 11.Jawab Investasi Pengembangan Sistem Rp. 36.000.600.000 = Rp.000 Return On Investment (ROI).000.000.000.Sehingga Laba Bersih setelah Pajak (EAT) Rp.400. 3 x 36.000.000.000.260. 1.400.Bea Operasional.000 = Rp. 3 x 23.- .Karena usia ekonomis selama 3 tahun.

000.Untuk selama 3 tahun maka per tambahan nilai uang : 3 x 2.Pada pengembangan sistem ini akan memberikan pertambahan nilai uang: 3 tahun – 2 tahun 3 bulan adalah 9 bulan (untuk ukuran waktu) Sedangkan nilai uangnya: EAT per tahun : 11.000 = Rp.340. . 2.500.000 x 0.000 x 10% = 25.200.000 . 8.000 = Rp. 945.Sehingga ROI.000 / 12 = untuk 9 bulan 9 x 945.000 Bunga deposito 10%.85% βˆ‘ Biaya 70.000.505.000.000.000 = = 53. sehingga penambahan nilai uang investor per tahun adalah 25.1= Rp.000.- Rp.70. adalah: βˆ‘ Pendapatan .000.200.000.500.500. 7.βˆ‘ Biaya 108.

500.000. dengan mengkaji hasil perhitungan dinyatakan layak. yaitu 8.000 sementara deposito hanya memberikan 7. Karena pengembalian investasi dapat dilakukan sebelum berakhirnya umur ekonomis (3 tahun).85% dari total investasi yang telah diberikan Β‰ Pada pengembangan sistem ini memberikan pertambahan nilai uang lebih besar dibanding dengan deposito bank.- .505. yaitu 2 tahun 3 bulan Β‰ Pengembangan sistem ini dapat memberikan kemampuan pengembalian investasi sebesar 53.Β‰ Keputusan Investasi.

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lama kerja dalam 1 bulan adalah 25 hari sedangkan sewa per jamnya adalah 3. dengan harapan selama umur ekonomis 3 tahun dapat memberikan pendapatan per tahun 36.Warnet (warung internet) β€œIndonesia Raya” berkeinginan membangun sistem informasi berbasis komputer yang memadai untuk meningkatkan pelayanan pada pengunjung warnet dengan harapan dapat meningkatkan produktivitas perusahaan. Pay Back Period (PBP) dan Return On Investmen (ROI).000.-. dari hasil perhitungan kelayakan dibutuhkan investasi sebesar 25. maka berapa prosentase bea operasional yang dikeluarkan rata-rata per tahun terhadap pendapatan. jika bunga deposito 15% per tahun. Bagaimanakah keputusan investor terhadap pelaksanaan pengembangan sistem ini.000.000. .000 sedangkan bea operasional dan perawatan rata – rata per tahun sebesar 23.000. sementara pajak pendapatan (PPn) per tahun sebesar 11%.400.000.

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ABADI adalah perusahaan furniture yang akan melakukan investasi di pengembangan sistem informasi. dengan tingkat bunga pinjaman sebesar 18%. pinjaman perusajaan kepada bank sebesar Rp. ABADI memperkirakan bahwa dengan adanya perangkat baru tersebut. 600 jt.Internal Rate of Return (IRR) 6. 400 jt. yaitu: (1) pertama. Kebutuhan pembelian perangkat untuk procurement (HW) dan start up (SW) yang merupakan initial cost sebesar Rp. 60 jt.Pay Back Period (PBP) 2.Apakah perusahaan sebaiknya melakukan pengembangan sistem informasi baru tersebut . Perangkat SI ini diharapkan digunak selama 10 tahun. PT. 120 jt.Accounting rate of return (ARR) dengan investasi awal jika depresiasi perangkat Rp. maka tentukanlah: 1. dana investasi diperoleh dari 2 sumber .Net Present Value (NPV) dari rencana investasi tersebut 5. dana deposito milik perusahaan yang ada di bank sebesar Rp. dengan tingkat bunga deposito sebesar 12% dan (2) kedua. maka perusahaan akan memperoleh penerimaan kas (cash in flow) sebesar Rp.Cost of Capital 4. 200 jt. per tahun.PT. / tahun 3.

Project Management Professional (PMP) Certification Study Guide .

PMI Certification Materials β€’ To assist PMI candidates for completing the PMI certification exam administered by the Project Management Institute β€’ Content is from β€œA Guide To The Project Management Body Of Knowledge” (PMBOK) β€’ www.org .pmi.

Recurring Themes β€’ Historical Records – need to collect and use for planning. estimating and risk β€’ Kickoff meetings are important β€’ Work Breakdown Structures β€’ Do not introduce benefits that are not stated in requirements β€’ Needs of all stakeholders should be taken into account during all projects β€’ Team Members must be involved in project planning β€’ Project Mangers must be pro-active .

Chapter 1 – Introduction β€’ Project – temporary endeavor undertaken to create a unique product or service β€’ Has a definite beginning and end and interrelated activities β€’ Programs adopt new set of objectives and continue to work. projects cease when declared objectives have been attained .

Chapter 1 – Introduction β€’ Projects are unique – characteristics are progressively elaborated – Progressively: proceeding in steps – Elaborated: worked with care and detail β€’ Scope of project should remain constant even as characteristics are β€œprogressively elaborated” .

tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a defined project – balancing the following: – Scope.Introduction β€’ Project Management: the application of knowledge. cost.Chapter 1 . unidentified requirements (expectations) . and quality – Stakeholders’ expectations – Requirements (needs) vs. skills. time.

Chapter 1 .Introduction β€’ Programs are groups of projects managed in a coordinated way to obtain benefits not available from managing the projects individually β€’ Most programs have elements of ongoing operations – Series of repetitive or cyclical undertakings β€’ Projects are often divided into β€œsubprojects” for more manageability – Often contracted out to external organizations .

verifiable work product – Review of deliverables and approval/denial are β€œphase exits.Chapter 2 – Project Management Context β€’ Project Phases are marked by the completion of a deliverable – Tangible. or kill points” β€’ Phases are collected into the Project Life Cycle – Set of defined work procedures to establish management control . stage gates.

higher towards the end as project continues – Stakeholder influence is high at the beginning and progressively lowers as project continues .Chapter 2 – Project Management Context β€’ Project Life Cycle defines: – Technical work performed in each phase – Who is involved in each phase β€’ Project Phases can overlap – β€œFast Tracking” β€’ Common Characteristics of Project Life Cycles: – Cost and Staffing levels are low at start and move higher towards the end – Probability of successfully completing project is low at beginning.

differences should be resolved in favor of the customer – individual(s) or organization(s) that will use the outcome of the project – Stakeholder management is a proactive task β€’ Project Mangers must determine all stakeholders and incorporate their needs into the project .Chapter 2 – Project Management Context β€’ Stakeholders: individuals and organizations who are actively involved in the project – Often have conflicting expectations and objectives – In general.

funders. citizens Others: owner. owners Sponsor Team Internal/External End User Society. supplier. contractor .Chapter 2 – Project Management Context β€’ Stakeholders are: – – – – – – – – – Project Managers Customers Performing Organizations.

contractors). Non-Project Based – Project Based – derive revenues from performing projects for others (consultants.”management by projects” – Non-Project Based – seldom have management systems designed to support project needs (manufacturing.Chapter 2 – Project Management Context β€’ Organizational Systems: Project based vs. financial services) .

Chapter 2 – Project Management Context β€’ Organizational Cultures and Styles: – Entrepreneurial firms more likely to adopt highly participative Project Manager – accept higher risk/reward – Hierarchical firms less likely to adopt participative Project Manager – take fewer risks .

Chapter 2 – Project Management Context β€’ Organizational Structures – Functional (classical) marked by identifiable superiors. Perceived scope of project limited by function (Engineering. Staff grouped by specialty . Typically have part-time Project Manager – Projectized Organization –blend functional and projectized characteristics. Mix crossdepartment personnel with full-time Project Manger . HR).

aligning resources. and complete) – Negotiating (conferring with others to reach an agreement) – Problem Solving (definition and decision making) β€’ Distinguish causes and symptoms β€’ Identify viable solutions – Influencing Organization (understanding power and politics) . unambiguous. motivating) – Communicating (clear.Chapter 2 – Project Management Context β€’ Project Management Skills – General Business Management (consistently producing results expected by stakeholders) – Leading (establishing direction.

services or characteristics β€’ Compliance is mandatory – Standards often become β€œde facto” regulations – Internationalization – Cultural Influences . rules and guidelines β€’ Compliance is not mandatory – Regulations – document that identifies products.Chapter 2 – Project Management Context β€’ Socioeconomic Influences – Standards – document approved that provides common. repeated use.

less efficient resource usage – Matrix β€’ β€’ β€’ β€’ β€’ β€’ β€’ Visible Objectives – not cost effective PM Control – More than 1 boss More support – More complex to control Utilize scarce resources – Tough resource allocation Information distribution – Competition of priorities Coordination – Policies & Procedures Home based – Potential for conflict .Chapter 2 – Project Management Context β€’ Organization Structure Pro’s and Con’s – Projectized β€’ Efficient Organization – No β€œhome” β€’ Loyalty – Lack of Professionalism β€’ Effective Communication – Duplication of functions.

Chapter 2 – Project Management Context β€’ Functional Organization – Specialists – More emphasis on functions – 1 supervisor – No career path in PM .

Chapter 3 – Project Management Processes β€’ Project Management requires active management of Project Processes – Series of actions that achieve a result – Project Management Processes β€’ Describing and organizing the work – Product-Oriented Processes β€’ Specifying and creating the product .

monitoring.Chapter 3 – Project Management Processes β€’ Process Groups: – Initiating processes: recognizing a project or phase should begin – Planning processes: devising and maintaining a workable plan – Executing processes: coordinating resources to execute the plan – Controlling processes: ensuring project objectives are met. correcting and measuring progress – Closing processes: formalized acceptance .

Chapter 3 – Project Management Processes β€’ Process Groups are linked by the results each produces β€’ Process Groups are overlapping activities with various levels of intensity β€’ Process Group interactions cross phases – β€œrolling wave planning” – Provides details of work to complete current phase and provide preliminary description of work for subsequent phases β€’ Individual processes have inputs. tools and techniques. and outputs (deliverables) .

Chapter 3 – Project Management Processes β€’ Initiating and Planning Processes β€’ Committing the organization to begin – Initiation. Charter β€’ Amount of planning proportional to the scope of the project – Core Planning – Scope Planning – written statement – Scope Definition – subdividing major deliverables into more manageable units – Activity Definition – determine specific tasks needed to produce project deliverables – Activity Sequencing – plotting dependencies . High-level planning.

Chapter 3 – Project Management Processes β€’ Core Planning (continued) – Activity Duration Estimating – determine amount of work needed to complete the activities – Schedule Development – analyze activity sequences. and resource requirements – Resource Planning – identify what and how many resources are needed to perform the activities – Cost Estimating – develop resource and total project costs – Cost Budgeting – allocating project estimates to individual work items – Project Plan Development – taking results from other planning processes into a collective document . duration.

Chapter 3 – Project Management
Processes
β€’ Planning/Facilitating Processes – manage the
interaction among the planning processes
– Quality Planning – standards that are relevant to the
project and determining how to meet standards
– Organizational Planning – identify, document, and
assigning project roles and responsibilities
– Staff Acquisition – obtaining the human resources
– Communications Planning – determining rules and
reporting methods to stakeholders

Chapter 3 – Project Management
Processes
β€’ Planning/Facilitating Processes (continued)
– Risk Identification – determining what is likely to affect
the project and documenting these risks
– Risk Quantification – evaluating risks and interactions
to access the possible project outcomes
– Risk Response Development – defining enhancement
steps and change control measures
– Procurement Planning – determining what to buy and
when
– Solicitation Planning – documenting product
requirements and identifying possible sources

Chapter 3 – Project Management
Processes
β€’ Planning/Facilitating Processes (continued)
– Order of events:
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’
β€’

Scope Statement
Create Project Team
Work Breakdown Structure
WBS dictionary
Finalize the team
Network Diagram
Estimate Time and Cost
Critical Path
Schedule
Budget
Procurement Plan
Quality Plan
Risk Identification, quantification and response development
Change Control Plan
Communication Plan
Management Plan
Final Project Plan
Project Plan Approval
Kick off

Chapter 3 – Project Management
Processes
β€’ Executing Processes
–
–
–
–
–

Project Plan Execution – performing the activities
Complete Tasks/Work Packages
Information Distribution
Scope Verification – acceptance of project scope
Quality Assurance – evaluating overall project
performance on a regular basis; meeting standards
– Team Development – developing team and individual
skill sets to enhance the project
– Progress Meetings

Chapter 3 – Project Management
Processes
β€’ Executing Processes (continued)
– Information Distribution – making project
information available in a timely manner
– Solicitation – obtaining quotes, bids,
proposals as appropriate
– Source Selection – deciding on appropriate
suppliers
– Contract Administration – managing vendor
relationships

Chapter 3 – Project Management
Processes
β€’ Controlling Processes – needed to regularly
measure project performance and to adjust
project plan
β€’ Take preventive actions in anticipation of
possible problems
– Change Control – coordinating changes across the
entire project plan
– Scope Change Control – controlling β€œscope creep”
– Schedule Control – adjusting time and project
schedule of activities

Chapter 3 – Project Management
Processes
β€’ Controlling Processes (continued)
– Cost Control – managing project budget
– Quality Control – monitoring standards and
specific project results; eliminating causes of
unsatisfactory performance
– Performance Reporting – status, forecasting,
and progress reporting schedule
– Risk Response Control – responding to
changes in risk during the duration of the
project

Chapter 3 – Project Management Processes β€’ Closing Processes – Administrative Closure – generating necessary information to formally recognize phase or project completion – Contract Close-out – completion and delivery of project deliverables and resolving open issues β€’ β€’ β€’ β€’ β€’ β€’ β€’ Procurement Audits Product Verification Formal Acceptance Lessons Learned Update Records Archive Records Release Team .

Chapter 3 – Project Management Processes β€’ Overall Processes – Influencing the organization – Leading – Problem Solving – Negotiating – Communicating – Meetings .

Chapter 3 – Project Management Processes β€’ Project Selection Techniques – Comparative Approach (similar projects) β€’ Benefit measurement method – Constrained Optimization (mathematical approach) β€’ Key aspect of scope verification is customer acceptance β€’ Only 26 % of projects succeed .

Chapter 4 – Project Integration Management β€’ Project Integration Management – Ensures that the project processes are properly coordinated – Tradeoffs between competing objectives and alternatives in order to meet stakeholder approval β€’ Project Plan Development β€’ Project Plan Execution β€’ Overall Change Control – These processes may occur repeatedly over the project duration – Historical Records are needed to perform project management well. they are inputs to continuous improvement β€’ β€’ β€’ β€’ β€’ β€’ β€’ Files Lessons Learned Actual Costs Time Estimates WBS Benchmarks Risks .

Chapter 4 – Project Integration Management β€’ Project Plan Development – Uses outputs from other planning processes to create consistent document to guide project execution and control – Iterated several times – Documents planning assumptions – Documents planning decisions that are chosen – Facilitates communication – Defines key management reviews – Provides a baseline to track progress measurement and project control .

Chapter 4 – Project Integration Management β€’ Project Plan Development Inputs – Other planning outputs: primarily the planning process outputs (WBS. Financial controls – Constraints – factors that limit performance. records of past project performance – Organizational policies – quality management. application area inputs) – Historical information – verify assumptions. contractual provisions. base documents. personnel administration. budget – Assumptions – risk factors .

templates. use expertise for reasonableness – PMIS – Out of the box approach to support all project aspects through closure .Chapter 4 – Project Integration Management β€’ Tools & Techniques for Plan Development – Project Planning Methodology – any structured approach (software. start-up meetings – Stakeholder Skills & Knowledge – tap into plan development. forms.

Chapter 4 – Project Integration Management β€’ Project Plan Development Outputs – Project Plan is a collection that changes over time as more information about the project becomes available – Baseline will change only in response to approved scope change – Project Plan includes some or all of the following: β€’ β€’ β€’ β€’ β€’ β€’ β€’ Project Charter Project Management approach or strategy Scope statement Work Breakdown Structure (WBS) Budget. schedule. risks Key Staff. Management and Communications Plan . Major Milestones Change Control Plan.

constraints and assumptions β€’ Subsidiary management plans (scope.Chapter 4 – Project Integration Management β€’ Project Plan Components (continued) β€’ Cost Estimates. schedule) β€’ Open Issues β€’ Pending Decisions . scheduled start dates and responsibility assignments β€’ Performance measurement baselines β€’ Major milestones and target dates β€’ Required Staff β€’ Risks.

specifications.Chapter 4 – Project Integration Management β€’ Supporting Details to the Project Plan – Outputs from planning processes – Technical documentation – Business requirements. and designs – Relevant standards – Additional information not previously known .

Chapter 4 – Project Integration Management β€’ Project Plan Execution – Primary process for carrying out the project plan – Most costly aspect of project management – Direction of organizational resources and interfaces .

Chapter 4 – Project Integration Management β€’ Project Plan Execution Inputs: – Project Plan – Supporting Detail – Organizational Policies – Corrective Action – anything to bring expected performance in line with the project plan .

provided by staffing – Work Authorization System – formal procedure for sanctioning work to ensure completion – written or verbal authorization – Status review meetings – regular exchanges of information – Project Management Information System – Organizational Procedures .Chapter 4 – Project Integration Management β€’ Tools & Techniques for Plan Execution – General Management Skills – Product Skills and Knowledge – defined as part of planning.

Chapter 4 – Project Integration Management β€’ Project Plan Execution Outputs – Work results – the outcome of activities performed is fed into the performance reporting process – Change Requests – expand/shrink project scope. modify costs and schedule estimates .

ensure that change is beneficial – Determining that change has occurred – Managing actual changes as they occur β€’ Evaluate impact of change β€’ Meet with team to discuss alternatives β€’ Meet with management to present decision β€’ Change control requires – Maintaining integrity of performance measurement baselines (project plan) – Ensuring changes to scope are accurately recorded – Coordinating changes across knowledge areas (scheduling. evaluate the impact of change . quality. risk.) – Determine all factors that control change and pro-actively preventing the occurrence. etc. cost.Chapter 4 – Project Integration Management β€’ Overall Change Control – Influencing factors that create change to ensure beneficial results.

Chapter 4 – Project Integration Management β€’ Inputs to Change Control – Project Plan – baseline performance – Performance Reports – issue tracking. externally or internally initiates. risk management – Change Requests – orally or written. legally mandated or optional .

tracking systems.Chapter 4 – Project Integration Management β€’ Change Control Tools & Techniques – All Changes must be evaluated before a decision can be reached – Change Control System – collection of formal procedures. paperwork. approval levels – Change Control Board – decision making authority – Configuration Management – documented procedure to apply technical and administrative direction β€’ β€’ β€’ β€’ ID and document functional and physical characteristics Control changes to these characteristics Record and report change and implementation status Audit items and system to verify requirements .

modify activity sequences. Demonstrations. plan variance analysis – Additional Planning – revised cost estimates. Corrective Action plans Performance Statistics. Meetings – Configuration Management .Chapter 4 – Project Integration Management β€’ Change Control Tools & Techniques – Performance Measurement – earned value. Reports. Change forms Specification reviews. plan adjustments – Project Management Information System – Change Control System may have β€’ β€’ β€’ β€’ β€’ Change Control Plan Change Control Board Change Control Procedures. Testing.

Chapter 4 – Project Integration Management β€’ Change Control Outputs – Project Plan Updates – Corrective Actions – Lessons Learned – variance causes and reasoning documented for historical purposes .

keep minutes – Status can be determined without meeting .Chapter 4 – Project Integration Management β€’ Configuration Management – Rigorous Change Management as it relates to scope β€’ Subset of the change control system β€’ Work Authorization System – Controls β€œgold plating”. defines what task is/is not β€’ Meetings – Most are inefficient.

how can we do it better β€’ β€’ β€’ β€’ β€’ Technical Aspects of the project Project Management (WBS.) Overall Management (communications.Chapter 4 – Project Integration Management β€’ Lessons Learned – Project is not complete until a Lessons Learned is completed – What have we done. plans. leadership) Best to have whole team complete and made available Also called β€œPost – Mortem” . etc.

Chapter 4 – Project Integration Management β€’ Integration is a result of need for communication within a project β€’ Primary responsibility to decide what changes are necessary is Management β€’ Project Managers must pro-actively define and solve problems before reporting to superiors .

Chapter 5 – Project Scope Management β€’ Project Scope Management – Processes required to ensure that the project includes all. work required – Defining what β€œis/is not” included in the project – Project scope – work that must be done – measured against project plan – Product scope – features and functions included in the product or service – measured against requirements . and only.

Chapter 5 – Project Scope Management β€’ Initiation – process of formally recognizing that a new project exists. or an existing project continue to next phase β€’ Involves feasibility study. preliminary plan. or equivalent analysis β€’ Authorized as a result of: – – – – – Market Demand Business Need Customer Request Technological Advance Legal Requirement .

more comprehensive in latter Relationship between product/service and business need Should support later project planning Initial product description is usually provided by the buyer – Strategic Plan – supportive of the organization's goals .Chapter 5 – Project Scope Management β€’ Initiation Inputs: – Product Description – characteristics of the product/service that the project was to create β€’ β€’ β€’ β€’ Less detail in early phases.

market) – Historical Information – results of previous project decisions and performance should be considered .Chapter 5 – Project Scope Management β€’ Initiation Inputs (continued) – Project Selection Criteria – defined in terms of the product and covers range of management concerns (finance.

economic models – – – – – Murder Boards Peer Review Scoring Models Economic Models Benefits compared to costs β€’ Constrained operation models – programming mathematical – – – – Linear Programming Integer Programming Dynamic Programming Multi-objective programming .Chapter 5 – Project Scope Management β€’ Tools & Techniques for Initiation – Project Selection Methods: β€’ Benefit measurement models – comparative approaches. scoring models.

Chapter 5 – Project Scope Management β€’ Tools & Techniques for Initiation – Project Selection Methods: β€’ Decision models – generalized and sophisticated techniques – Expert judgment β€’ β€’ β€’ β€’ β€’ Business Units with specialized skills Consultant Professional and Technical Associations Industry Groups Delphi Technique – obtain expert opinions on technical issues. scope of work and risks – Keep expert’s identities anonymous – Build consensus .

created by senior manager. Involve a degree of risk .Chapter 5 – Project Scope Management β€’ Outputs from Initiation: – Project Charter – formally recognizes project. includes: β€’ β€’ β€’ β€’ β€’ β€’ β€’ Business need/Business Case Product description & title Signed contract Project Manager Identification & Authority level Senior Management approval Project’s Goals and Objectives Constraints – factors that limit project management team’s options β€’ Assumptions – factors that are considered true for planning purposes.

Chapter 5 – Project Scope Management β€’ Scope Planning – process of developing a written statement as basis for future decisions – Criteria to determine if the project or phase is successful β€’ Scope Planning Inputs: – – – – Product description Project Charter Constraints Assumptions .

β€œbrainstorming” – Expert Judgment .) to assess desirability – Alternatives Identification – generate different approaches to the project..developing a better understanding of the product of the project – Cost/Benefit Analysis – estimating tangible/intangible costs and returns of various project alternatives and using financial measures (R.I.Chapter 5 – Project Scope Management β€’ Scope Planning Tools & Techniques – Product Analysis .O.

Addresses cost. evaluating future tradeoffs β€’ Project Product – summary of project description β€’ Project Deliverables – list of summary of delivery items marking completion of the project β€’ Project Objectives – quantifiable criteria met for success. schedule and metrics – unqualified objectives indicate high risk (customer satisfaction) .Chapter 5 – Project Scope Management β€’ Scope Planning Outputs – Scope Statement – documented basis for making project decisions and confirming understanding among stakeholders. Includes: β€’ Project justification – business need.

expected stability. change identification and classification β€’ Control what is/is not in the project.Chapter 5 – Project Scope Management β€’ Scope Planning Outputs (continued) – Supporting detail – includes documentation of all assumptions and constraints – Scope Management Plan – how project scope is managed. change control procedure. prevents delivering β€œextra” benefits to the customer that were not specified/required .

WBS is the tool . time delays. manageable components – Improve accuracy of cost. and poor productivity – Defines β€œwhat” you are doing. time. redundancy. and resource estimates – Define a baseline for performance measurement – Clear responsibility assignments – Critical to project success – reduces risk of higher cost.Chapter 5 – Project Scope Management β€’ Scope Definition – subdividing major deliverables into smaller.

Chapter 5 – Project Scope Management β€’ Scope Definition Inputs: – Scope Statement – Constraints – consider contractual provisions – Assumptions – Other Planning Outputs – Historical Information .

budgeted. how the work will be accomplished β€’ Verify correctness of decomposition – All items necessary and sufficient? – Clearly and completely defined? – Appropriately scheduled. assigned? .Chapter 5 – Project Scope Management β€’ Scope Definition Tools & Techniques – Work Breakdown Structure – templates from previous projects – Decomposition – subdividing major deliverables into manageable components: β€’ Major elements – project deliverables and project management approach β€’ Decide cost and duration estimates are appropriate at level of detail β€’ Constituent elements – tangible verifiable results to enable performance management.

schedule and planning information) β€’ Other formats: – – – – – Contractual WBS – seller provides the buyer Organizational (OBS) – work elements to specific org.Chapter 5 – Project Scope Management β€’ Scope Definition Outputs – Work Breakdown Structure (WBS) – a deliverableoriented grouping of project assignments that organizes and defines the scope of the project β€’ Each descending level represents further detail. smaller and more manageable pieces β€’ Each item is assigned a unique identifier collectively known as β€œcode of accounts” β€’ Work element descriptions included in a WBS dictionary (work. units Resource (RBS) – work elements to individuals Bill of Materials (BOM) – hierarchical view of physical resources Project (PBS) – similar to WBS .

design. testing.Chapter 5 – Project Scope Management β€’ Scope Definition Outputs – Work Breakdown Structure (WBS) β€’ First Level is commonly the same at the Project Life Cycle (requirements. conversion and operation) β€’ First level is completed before the project is broken down further β€’ Each level of the WBS is a smaller segment of level above β€’ Work toward the project deliverables β€’ Break down project into tasks that – – – – – Are realistically and confidently estimable Cannot be logically divided further Can be completed quickly (under 80 hours rule of thumb) Have a meaningful conclusion and deliverable Can be completed without interruption β€’ Provides foundation for all project planning and control . coding.

project foundation . role identification β€’ Graphical picture of the project hierarchy β€’ Identifies all tasks.Chapter 5 – Project Scope Management β€’ Scope Definition Outputs – Work Breakdown Structure (WBS) .Benefits β€’ Prevent work slippage β€’ Project team understands how their tasks fit into the overall project and their impact upon the project β€’ Facilitates communication and cooperation between project team and stakeholders β€’ Helps prevent changes β€’ Focuses team experience into what needs to be done – results in higher quality β€’ Basis and proof for estimating staff. cost and time β€’ Gets team buy-in.

Chapter 5 – Project Scope Management β€’ WBS phrases – – – – – – Graphical hierarchy of the project Identifies all tasks Foundation of the project Very important Forces thought of all aspects of the project Can be re-used for other projects .

Chapter 5 – Project Scope Management β€’ Scope Definition Outputs – Work Breakdown Structure (WBS) – Dictionary β€’ Designed to control what work is done and when β€’ Also known as a task description β€’ Puts boundary on what is included in a task and what is not included .

customer acceptance of efforts . testing to determine if results conform to requirements β€’ Scope Verification Outputs – Formal acceptance – documentation identifying client and stakeholder approval. costs to date – Product documentation – description available for review (requirements) β€’ Scope Verification Tools & Techniques – Inspection – measuring. examining.Chapter 5 – Project Scope Management β€’ Scope Verification Inputs – Work results – partially/completed deliverables.

Chapter 5 – Project Scope Management β€’ Scope Change Control: – Influencing factors to ensure that changes are beneficial – Determining scope change has occurred – Managing changes when they occur – Thoroughly integrated with other control processes .

issues reported – Change Requests – expansion/shrink of scope derived from : β€’ External events (government regulations) β€’ Scope definition errors of product or project β€’ Value adding change – new technology – Scope Management Plan .Chapter 5 – Project Scope Management β€’ Scope Change Control Inputs: – Work Breakdown Structure – Performance Reports.

tracking systems. approval levels β€’ Integrated with overall change control procedures – Performance Measurement – determine what is causing variances and corrective actions – Additional Planning .Chapter 5 – Project Scope Management β€’ Scope Change Control Tools & Techniques – Scope Change Control System – defines procedures how scope change can occur β€’ All paperwork.

Chapter 5 – Project Scope Management β€’ Scope Change Control Outputs: – Scope Changes – fed back through planning processes. revised WBS – Corrective Actions – Lessons Learned – cause and reasoning for variances documented for historical purposes .

Chapter 5 – Project Scope Management β€’ Management By Objectives (MBO) – Philosophy that has 3 steps: β€’ Establish unambiguous and realistic objectives β€’ Periodically evaluate if objectives are being met β€’ Take corrective action – Project Manager must know that if project is not aligned or support corporate objectives. the project is likely to lose resources. assistance and attention. – MBO only works if management supports it .

Chapter 6 – Project Time Management β€’ Project Time Management – Processes required to ensure timely completion of the project – No consensus concerning differences between activities and tasks – Activities seen as composed of tasks –most common usage – Other disciplines have tasks composed of activities .

Chapter 6 – Project Time Management β€’ Activity Definition: identifying and documenting specific activities to produce project deliverables identified in the WBS – Must be defined to meet the project objectives .

Chapter 6 – Project Time Management β€’ Activity Definition Inputs – WBS – primary input – Scope Statement – project justification & project objectives – Historical Information – Constraints – Assumptions .

Chapter 6 – Project Time Management β€’ Activity Definition Tools & Techniques – Decomposition – outputs are expressed as activities rather than deliverables – Templates – reuse from previous projects .

WBS updates often called refinements. extension to the WBS and includes description to ensure team members understand work to be performed – Supporting Detail – organized as needed and include all assumptions and constraints – WBS Updates – identify missing deliverables and clarify deliverable descriptions. more likely using new technologies in project .Chapter 6 – Project Time Management β€’ Activity Definition Outputs – Activity List – all to be performed.

Chapter 6 – Project Time Management β€’ Activity Sequencing – identifying and documenting interactive dependencies among activities. Support later development of a realistic schedule – Project Management software often used .

procurement. prototypes needed. hard logic. preferential logic – External Dependencies – relationship between project activities and non-project activities (company policies. preferred logic. β€œbest practices” or unusual aspects of project – soft logic. etc.) – Constraints – Assumptions .Chapter 6 – Project Time Management β€’ Activity Sequencing Inputs: – Activity List – Product Description – product characteristics often affect activity sequencing – Mandatory Sequencing – physical limitations. inherent in nature of work being done – Discretionary Dependencies – defined by project management team.

Chapter 6 – Project Time Management β€’ Network Diagrams – Shows how the project tasks will flow from beginning to end – Proves how long the project will take to complete – Takes project tasks from low levels of WBS and placing them into their order of completion (beginning to end) .

most commonly used β€’ Finish to Finish – β€œfrom” activity must finish before the next may finish β€’ Start to Start – β€œfrom” activity must start before next β€œto” activity can start β€’ Start to Finish – task must start before next activity can finish – Use caution with last 3 techniques . also called Activity On Node (AON) – Most project management software uses – Includes 4 types of dependencies: β€’ Finish to Start – β€œfrom” activity must finish before β€œto” activity can begin.Chapter 6 – Project Time Management β€’ Activity Sequencing Tools & Techniques – Precedence Diagramming Method (PDM) – constructing network diagram using nodes to represent activities and arrows to indicate dependencies.logical relationships often not consistently implemented with project management software .

Chapter 6 – Project Time Management β€’ Activity Sequencing Tools & Techniques (continued) – Arrow Diagramming Method (ADM) – uses arrows to represent activities and connecting at nodes to illustrate dependencies β€’ Also called Activity On Arrow (AOA) β€’ Only uses finish to start dependencies β€’ PERT and CPM only can be drawn using AOA .

Chapter 6 – Project Time Management β€’ Activity Sequencing Tools & Techniques (continued) – Conditional diagramming methods β€’ GERT (Graphical Evaluation and Review Technique) β€’ System Dynamic Models β€’ Allow for non-sequential activities (loops) or conditional branches – not provided by PDM or ADM methods .

clinical trials. or fragnets β€’ Subnets are several nearly identical portions of a network (floors on a building. . program modules) β€’ Useful for several identical processes (clinical trials. Composed of subnets. programming modules).Chapter 6 – Project Time Management β€’ Activity Sequencing Tools & Techniques (continued) – Network Templates – standardized networks can be used.

Should be accompanied by a summary narrative that describes the diagram approach – Activity List Updates .Chapter 6 – Project Time Management β€’ Activity Sequencing Outputs: – Project Network Diagram – schematic display of project activities and relationships (dependencies).

Chapter 6 – Project Time Management β€’ Activity Duration Estimating – Involves assessing number of work periods needed to complete identified activities – Requires consideration of elapsed time. and day of week work starts . weekends. calendars.

Chapter 6 – Project Time Management β€’ Activity Duration Estimating Inputs: – – – – Activity Lists Constraints Assumptions Resource Requirements – amount of labor assigned to activity – Resource Capabilities – human and material resources. expertise – Historical Information β€’ Project Files. or records of previous project results β€’ Commercial Duration Estimates – useful when durations are not driven by actual work (approval periods. material resources) β€’ Project Team Knowledge .

previous known durations as basis for future activity duration. high risk without expertise avail. Form of expert judgment . Used when limited knowledge is available. similar.Chapter 6 – Project Time Management β€’ Activity Duration Estimating Tools & Techniques – Expert Judgment – guided by historical information should be used whenever possible. – Simulation – using different sets of assumptions (Monte Carlo Analysis) to drive multiple durations – Analogous Estimating – β€œtop down estimating” – use actual.

of possible results – Basis of Estimates – all assumptions should be documented – Activity List Updates . Should indicate a range +/.Chapter 6 – Project Time Management β€’ Activity Duration Outputs: – Activity Duration Estimates – quantitative assessments of work periods to complete an activity.

Chapter 6 – Project Time Management β€’ Schedule Development – Determining start and finish dates for project activities – Without realistic dates. project unlikely to be finished as scheduled – Schedule development process often iterates as more information becomes available (process inputs) .

Chapter 6 – Project Time Management β€’ Schedule Development Inputs: – – – – Project Network Diagram Activity Duration Estimates Resource Requirements Resource Pool Description – availability patterns. shared resources are highly variable – Calendars – define eligible work periods β€’ Project Calendars affect all resources β€’ Resource Calendars – affect specific resource pools or individuals .

Chapter 6 – Project Time Management β€’ Schedule Development Inputs (continued): – Constraints β€’ Imposed Dates – may be required β€’ Key events or milestones – are initially requested and become expected during project – Assumptions – Lead and Lag Time – dependencies may specify time in order to satisfy relationship (example – 2 weeks to receive order) .

sequential network and single duration estimate. Calculates float to determine flexibility β€’ Graphical Evaluation and Review Technique (GERT) – probabilistic treatment of network and activity duration estimates β€’ Program Evaluation and Review Technique (PERT). indicate time periods which activity should be scheduled given resource limits and other constraints: β€’ Critical Path Method (CPM) – single early/late start and finish date for all activities. Based on specified.Chapter 6 – Project Time Management β€’ Schedule Development Tools & Techniques – Mathematical Analysis – calculating theoretical early/late finish and start dates without regard for resource pool limitations.sequential network and weighted average duration to calculate project duration – differs from CPM by using mean (expected value) instead of most-likely estimate in CPM .

flexibility with costs β€’ Drawn on AOA diagrams β€’ Can have dummy tasks .Chapter 6 – Project Time Management β€’ Schedule Development Tools & Techniques – Critical Path Method: refers to estimating based on one time estimate per activity β€’ β€’ β€’ β€’ One time estimate per task (Most Likely) Emphasis on controlling cost and leaving schedule flexible Drawn using AOA diagrams Can have dummy task – PERT (Program Review and Estimating Technique) β€’ 3 Time estimates per activity – Optimistic – Pessimistic – Most Likely β€’ Emphasis on meeting schedule.

Chapter 6 – Project Time Management β€’ Schedule Development Tools & Techniques – Monte Carlo Analysis β€’ Uses a computer with PERT values and network diagram β€’ Tells – Probability of completing a project on any specific day – Probability of completing a project for any specific amount of cost – Probability of any task actually being on the critical path – Overall Project Risk β€’ Suggests that Monte Carlo simulation will create a project duration that is closer to reality than CPM or PERT .

Chapter 6 – Project Time Management β€’ Schedule Development Tools & Techniques (continued) – Duration Compression – look to shorten project schedule without affecting scope β€’ Crashing – cost and schedule trade-offs to determine greatest amount of compression for least incremental cost – often results in higher costs β€’ Fast Tracking – performing activities in parallel that normally would be sequenced – often results in re-work and usually increases risk – Simulation .

β€œresource constrained scheduling” – when limitation on quantity of available resources.Chapter 6 – Project Time Management β€’ Schedule Development Tools & Techniques (continued) – Resource Leveling Heuristics – leveling resources that apply to critical path activities a.k. sometimes called β€œResource Based Method” – often increases project duration – Project Management Software .a.

determine task estimates β€’ β€’ β€’ β€’ β€’ Historical Records Guesses Actual Costs Benchmarks CPM and PERT .Chapter 6 – Project Time Management β€’ Schedule Development Tools & Techniques (continued) – Project Manger’s role β€’ Provide the team with the necessary information to properly estimate the task β€’ Complete a sanity check of the estimate β€’ Formulate a reserve – Project Team should be involved.

Chapter 6 – Project Time Management β€’ Schedule Development Tools & Techniques – Critical Path Method: longest path through a network diagram and determines the earliest completion of the project – Proves how long the project will take – Indicates tasks that need most monitoring – Almost always have no slack .

remains preliminary until resources assignments are approved. expected durations β€’ Milestone Charts – identifies key deliverables and interfaces β€’ Time-scaled network diagrams – blend of project network and bar charts .Chapter 6 – Project Time Management β€’ Schedule Development Outputs: – Project Schedule – includes planned start and finish dates for each activity. Usually in following formats: β€’ Project Network Diagrams (with date information added) – show logical and critical path activities β€’ Bar or Gantt charts – activity start and end dates.

Chapter 6 – Project Time Management β€’ Schedule Development Outputs (continued): – Supporting Detail – all assumptions and constraints. May also include: β€’ Resource requirement by time period (resource histogram) β€’ Alternative schedules (best/worst case) β€’ Schedule reserve/risk assessments – Schedule Management Plan – how updates are managed – Resource requirement updates – leveling and activity impact .

measure against project performance – Performance Reports – planned dates met.Chapter 6 – Project Time Management β€’ Schedule Control: – Influencing factors which create schedule changes to ensure changes are beneficial – Determining that schedule has changed – Managing actual changes as they occur β€’ Inputs to Schedule Control – Project Schedule – baseline approved. issues – Change Requests – Schedule Management Plan .

Chapter 6 – Project Time Management β€’ Schedule Control Tools & Techniques – Schedule Change Control System – defines procedures for schedule changes. approval. tracking systems – Performance Measurement – assess magnitude of variations to baseline. paperwork. determine if corrective action is needed – Additional Planning – Project Management Software .

β€œRebaselining” may be needed in drastic situations – Corrective Action – re-align performance with project plan – Lessons Learned . stakeholder notification β€’ Revisions change scheduled start and finish dates – generally in response to scope changes.Chapter 6 – Project Time Management β€’ Schedule Control Outputs: – Schedule Updates – any modifications.

desire or results – External dependencies – based on needs and desires of organizations outside the project .Chapter 6 – Project Time Management β€’ Key knowledge points not in PMBOK – Need to know manual calculations of network diagrams β€’ Created after project charter and WBS (task estimates and dependencies are determined) – Mandatory dependencies (Hard Logic) – inherent in nature of work – Discretionary dependencies (Soft Logic) – based on experience.

Chapter 6 – Project Time Management β€’ Methods to draw network diagrams – Activity on Node (AON) or Precedence Diagramming Method (PDM) β€’ Boxes represent tasks β€’ Arrows show task dependencies β€’ 4 types of task relationships – – – – Finish to Start (task must finish before next can start) Finish to Finish (task must finish before next can finish) Start to Start (task must start before next can start) Start to Finish (task must start before the next can finish) β€’ No dummy tasks used .

Chapter 6 – Project Time Management β€’ Methods to draw network diagrams – Activity on Arrow (AOA or Arrow Diagramming Method (ADM) β€’ β€’ β€’ β€’ Arrows used to represent tasks Only Finish to Start relationships are used May use dummy tasks (show dependencies) PERT and CPM estimating techniques can only be drawn using AOA – CPM (Critical Path Method) – estimating based on one time estimate per activity (the most likely time estimate) Β» Emphasizes controlling cost and allowing schedule flexibility Β» Can have dummy tasks .

Chapter 6 – Project Time Management β€’ Methods to draw network diagrams – Activity on Arrow (AOA or Arrow Diagramming Method (ADM) continued: β€’ PERT (Program Evaluation and Review technique) – 3 time estimates per activity: Optimistic (O). Pessimistic (P) – Emphasizes meeting schedule. flexibility with cost – Can have dummy tasks . Most Likely (M).

The total project estimate will serve as the basis.figure to compute the Optimistic and Pessimistic values.Chapter 6 – Project Time Management β€’ Methods to draw network diagrams – PERT (Program Evaluation and Review technique) – Estimating based on 3 formulas: β€’ PERT Duration: (P + 4M + O)/6 β€’ Standard Task Deviation: (P – O)/6 β€’ Task Variance: [P – O]2 β€’ Total project estimate: 6 – Add up all Optimistic. Use the value as a +/. Most Likely and Pessimistic values of the critical path tasks and apply P + 4M + O/6 β€’ Total project variance (+/-): – Add up the individual task variances and take the square root of the value. .

Chapter 6 – Project Time Management β€’ Monte Carlo Simulation: – Uses a computer with PERT values (P. M. O) and a network diagram but does not use the PERT formula – Indicates β€’ Probability of completing project on a specific day β€’ Probability of completing project for any specific amount of cost β€’ Probability of any task actually being on critical path β€’ Overall project risk .

Historical Records. Actual Costs. CPM. formulate reserve – Estimates are: β€’ Guesses. PERT and Monte Carlo estimating techniques . Benchmarks. sanity check. PERT – Critical paths determines the earliest completion date and identifies tasks that need monitoring – Can be obtained by CPM.Chapter 6 – Project Time Management β€’ Estimating techniques in general: – Should be performed by entire project team β€’ Project manager needs to provide information to allow team to create estimates.

Tasks on critical path have no slack.Chapter 6 – Project Time Management β€’ Key Definitions: – Slack (Float): the amount of time a task can be delayed without delaying the entire project. β€’ Slack is calculated by the difference between Early Start and Late Start of a task – Free Slack (Float): the amount of time a task can be delayed without delaying the early start date of its successor – Total Slack (Float): the amount of time a task can be delayed without delaying the project completion date – Lag: inserted waiting time between tasks .

control tool) β€’ Network Diagram (to show task inter-dependencies.Chapter 6 – Project Time Management β€’ General Comments: – Projects can have more than 1 critical path (increases risk) and can involve dummy tasks – Negative float indicates that you are behind – Resource Leveling involves possibly letting schedule and cost slip – Heuristics – just means β€œrule of thumb” e.a. Gantt chart (track progress. show project organization. shows major events) .g.k. basis for project control) β€’ Milestone chart (report to Senior management. report to entire team including stakeholders. 80/20 rule – Schedules are calendar based – makes this different than a time estimate β€’ Bar Chart a.

risk or schedule?) .Chapter 6 – Project Time Management β€’ General Comments: – To shorten project schedule examine the critical path β€’ Crashing – add more resources to the critical path tasks – Usually results in increased cost β€’ Fast Tracking – performing tasks in parallel – Can result in re-work and increased risk – Best to select method that has least impact on the project (is the importance on cost.

Chapter 6 – Project Time Management β€’ General Comments: – Bar (Gantt) Charts β€’ Weak Planning Tool. CPM. effective progress and reporting tool β€’ Does not show interdependencies of tasks β€’ Does not help organize the project more effectively – Network Diagrams (PERT. PDM) β€’ Shows task interdependencies β€’ Aids in effectively planning and organizing work β€’ Provides a basis for project control – Milestone Charts β€’ Only shows major events β€’ Good for reporting to management and customer – Flow Charts β€’ Depicts workflow and not commonly used for project management .

stable number of resources – allows schedule and cost slip in favor of leveling resources Heuristic – rule of thumb (80/20 rule) .Chapter 6 – Project Time Management β€’ General Comments: – Free Slack (Float) – amount of time a task can be delayed without delaying the early start date of its successor – Total Slack (Float) – amount of time a task can be delayed without delaying the project completion date β€’ β€’ β€’ Lag – inserted waiting time between tasks Resource Leveling – level peaks of resource usage.

controllable and uncontrollable costs (budget separately for reward and recognition systems) . consider effect of project decisions on cost of using product β€œlife-cycle costing” – Most prospective financial impact of using the product is outside the project scope – Consider information needs of stakeholders.Chapter 7 – Project Cost Management β€’ Project Cost Management – Ensure that the project is completed within budget – Concerned with cost of resources needed to complete activities.

scope. scope and resources) occur. scope.Chapter 7 – Project Cost Management β€’ Project Cost Management – – – – Estimating should be based on WBS to improve accuracy Estimating should be done by the person performing the work Having historical records is key to improving estimates Costs (schedule. resources) should be managed to estimates – A cost (schedule. baseline) should be kept and not changed – Plans should be revised as necessary during completion of work – Corrective action should be taken when cost problems (schedule. .

Chapter 7 – Project Cost Management β€’ Resource Planning: – Determining what physical resources and quantities are needed to perform work β€’ Inputs to Resource Planning: – – – – Work Breakdown Structure Historical Information Scope Statement – justification & objectives Resource Pool Description – what resources are potentially available for resource planning – Organizational Policies – staffing. procurement .

Chapter 7 – Project Cost Management β€’ Inputs to Resource Planning: – – – – – – – Work Breakdown Structure Network Diagram Schedule Risks Historical Information Scope Statement – justification & objectives Resource Pool Description – what resources are potentially available for resource planning – Organizational Policies – staffing. procurement .

Chapter 7 – Project Cost Management β€’ Resource Planning Tools & Techniques – Expert Judgment – Alternatives Identification β€’ Resource Planning Outputs: – Resource Requirements – what type & how many resources are needed for each activity in the Work Breakdown Structure .

Chapter 7 – Project Cost Management β€’ Cost Estimating: – Develop approximate costs of resources – Distinguish estimating from pricing β€’ Estimating – likely amount β€’ Pricing – business decision – Identify alternatives and consider realigning costs in phases to their expected savings .

general ledger reporting .Chapter 7 – Project Cost Management β€’ Cost Estimating Inputs: – – – – – Work Breakdown Structure Resource Requirements Resource Rates (if known) Activity Duration Estimates Historical Information – (project files. commercial cost databases. team knowledge – Chart Of Accounts – coding structure for accounting.

parameters are quantifiable. using actual costs from previous project as basis for estimate β€’ Reliable when previous projects are similar and individuals have expertise – form of expert judgment – Parametric Modeling – uses project characteristics in mathematical models to predict costs (e. and model is scalable – 2 types: Regression analysis.Chapter 7 – Project Cost Management β€’ Cost Estimating Tools & Techniques – Analogous Estimating – β€œtop down”.g.building houses) β€’ Reliable when historical information is accurate. Learning Curve – Bottom Up Estimating – rolling up individual activities into project total – smaller work activities have more accuracy – Computerized tools – spreadsheets. software .

Chapter 7 – Project Cost Management β€’ Cost Estimating Tools & Techniques – Pro’s and Con’s – Analogous Estimating β€’ Quick .Less Accurate β€’ Tasks don’t need to be identified – Estimates prepared with little detail and understanding of project β€’ Less costly – Requires considerable experience to do well β€’ Gives PM idea of management expectations – Infighting at high levels of organization β€’ Overall project costs are capped – Difficult for projects with uncertainty .

Chapter 7 – Project Cost Management β€’ Cost Estimating Tools & Techniques – Pro’s and Con’s – Bottom Up Estimating β€’ More Accurate – Takes time and expense β€’ Gains buy-in from the team – Tendency for team to pad estimates β€’ Based on detailed analysis of project – Requires that project be defined and understood β€’ Provides a basis for monitoring and control – Team infighting to get biggest piece of pie .

supplies. materials. inflation allowance.Chapter 7 – Project Cost Management β€’ Outputs from Cost Estimating – Cost estimates – quantitative assessments of likely costs of resources required to complete tasks β€’ For all resources of the project (labor. reserve) β€’ Expressed in units of currency – Supporting Detail β€’ β€’ β€’ β€’ Description of scope (reference to the WBS) Documentation how estimate was developed Indication of range of possible results Assumptions – Cost Management Plan – how cost variances will be managed – Cost Risk: associated to seller for Fixed Price. associated to buyer for Time and Materials budget .

Chapter 7 – Project Cost Management β€’ Cost Budgeting – Involves allocation of total estimate to individual work to establish a cost baseline to measure performance β€’ Cost Budgeting Inputs – Cost Estimate – Work Breakdown Structure – Project Schedule – includes planned start and finish dates for items costs are allocated to β€’ Needed to assign costs during the time period when the actual cost will be incurred .

Chapter 7 – Project Cost Management β€’ Cost Budgeting Tools & Techniques – same as Cost Estimating Tools and Techniques β€’ Outputs from Cost Budgeting – Cost Baseline – time phased budget to measure and monitor cost performance β€’ Developed by summing estimated costs by period (S curve of values vs. time) β€’ Larger projects have multiple baselines to measure different aspects of cost performance .

quality) .Chapter 7 – Project Cost Management β€’ Cost Control – Concerned with influencing factors that create changes to the cost baseline that are beneficial – Determining that the cost baseline has changed – Managing actual changes as they occur β€’ Monitor cost performance to detect variances β€’ Record all appropriate changes accurately in the cost baseline β€’ Preventing incorrect. schedule. unauthorized changes being included in the cost baseline β€’ Informing stakeholders of authorized changes – Determine the β€œwhy’s” of positive and negative variances – Integrated will all other control processes (scope. change.

exceed budget β€’ 50/50 Rule – task is considered 50% complete when it begins and gets credit for remainder 50% only when completed β€’ 20/80 Rule .Chapter 7 – Project Cost Management β€’ Inputs to Cost Control – Cost Baseline – Performance Reports – meet. track actual costs.task is considered 20% complete when it begins and gets credit for remainder 80% only when completed β€’ 0/100 Rule – task only credited when fully completed – Change Requests – Cost Management Plan β€’ Tools & Techniques of Cost Control – Cost Change Control System – defines the procedures by which the cost baseline may be changed – Performance Measurement – assess magnitude of cost variations (Earned Value Analysis) and what is causing the variance – Additional Planning – examine alternatives – Computerized Tools – forecast planned costs. forecast effect of cost changes .

Chapter 7 – Project Cost Management β€’ Cost Control Outputs – Revised Cost Estimate β€’ Modifications to cost information. or no longer relevant β€’ Actual to date plus remaining budget – Current variances are typical and similar variances will not occur in the future – Lessons Learned . require stakeholder approval and adjustments to other project areas – Budget Updates – changes to approved cost baseline. revised in response to scope changes – Corrective Action – Estimate at completion – (EAC) – forecast of total expenditures β€’ Actual to date plus remaining budget modified by a factor (cost performance index) – Current variances are seen to apply to future variances β€’ Actual to date plus new estimate for remaining work – Original estimates are flawed.

k. Earned Value (how much work is budgeted.a.Chapter 7 – Project Cost Management β€’ Earned Value Analysis – Integrates cost. actual because time and cost are analyzed separately – Terms: β€’ BCWS – Budgeted Cost of Work Scheduled (how much work should be done) β€’ BCWP – Budgeted Cost of Work Performed a. how much did we budget) β€’ ACWP – Actual Cost of Work Performed (how much did the completed work cost) . schedule and scope – Better that comparing projected vs.

Chapter 7 – Project Cost Management β€’ Earned Value Analysis – Terms: β€’ BAC – Budget at Completion (how much did you budget for the total job) β€’ EAC – Estimate at Completion (what do we expect the total project to cost) β€’ ETC – Estimate to Completion (how much more do we expect to spend to finish the job) β€’ VAC – Variance at Completion (how much over/under budget do we expect to be) .

negative is behind schedule β€’ Cost Performance Index (CPI): BCWP BCWP ACWP ACWP β€’ I am only getting xΒ’ out of every $ . negative is over budget β€’ Schedule Variance (SV): BCWP – BCWS.Chapter 7 – Project Cost Management β€’ Earned Value Analysis – Formulas β€’ Variance (Plan – Actual) β€’ Cost Variance (CV): BCWP – ACWP.

when the project is over how much more or less did we spend (most common way of calculating EVA .Chapter 7 – Project Cost Management β€’ Earned Value Analysis – Formulas BCWP β€’ Schedule Performance Index (SPI): BCWP BCWS BCWS – I am only progressing x % of the planned rate BAC β€’ Estimate at Completion (EAC): BAC CPICPI – As of now we expect the total project to cost x$ β€’ Estimate to Complete (ETC): EAC – ACWP. how much will it cost from now to completion β€’ Variance at Completion: BAC – EAC.

use AWCP If the formula related to schedule. BCWP is divided by If the formula relates to cost. BCWP comes first If it is an index.Chapter 7 – Project Cost Management β€’ Earned Value Analysis – – – – – – – BCWP comes first in most formulas If it is a variance. use BWCP Negative is bad. positive results are good ETC refers to β€œthis point on”. EAC refers to when job is completed .

10%. usually made during the Planning phase . usually made during Initiation Phase – Budget Estimate: -10% .Chapter 7 – Project Cost Management β€’ Accuracy of Estimates – Order of Magnitude Estimate: -25% .25%. usually made during the Planning phase – Definitive Estimate: -5% .75%.

Chapter 7 – Project Cost Management β€’ Accounting Standards – Not usually part of the exam – Present Value (value today of future cash flows): β€’ PV = FV (1 + r) N FV = Future Value R = Interest Rate N = Number of time periods .

Chapter 7 – Project Cost Management β€’ Accounting Standards – Net Present Value: total benefits (income or revenue) less the costs. NPV is the sum of each present value of each income/revenue item – Internal Rate of Return (IRR): company may select project based on highest IRR – Payback Period: number of time periods it takes to recover the investment in the project before generating revenues – Benefit Cost Ratio (BCR): compares costs to the benefits of different projects β€’ Greater than 1 means benefits are greater than costs β€’ Less than 1 means costs are greater than benefits – Opportunity Cost: opportunity given up by selecting one project over another .

Sunk costs should not be considered when determining to continue with a troubled project – Law of Diminishing Returns: the more that is put in the less of an outcome is received – Working Capital: current assets – current liabilities – Variable Cost: costs that change with the amount of production or the amount of work (materials. wages. materials) – Indirect Cost: overhead items or costs for the benefit of more than one project (taxes. fringe benefits) . wages) – Fixed Cost: non-recurring costs that do not change – Direct Cost: directly attributable to project work (travel.Chapter 7 – Project Cost Management β€’ Accounting Standards – Sunk Costs: expended costs.

Chapter 7 – Project Cost Management β€’ Accounting Standards – Depreciation: assets lose value over time β€’ Straight Line depreciation: same amount is taken each year β€’ Accelerated Depreciation: 2 forms – Double Declining Balance – Sum of the Years Digits – Life Cycle Costing: includes operations and maintenance phases – Value Analysis: find a less costly way to do same work .

not conceptual phase – Project Objectives – are not necessarily needed to fund project – Project Definition – focus on end product initially. costs and benefits will be evaluated later – 25% of project lifecycle expended at end of planning – No guarantees. only most likely results .Chapter 7 – Project Cost Management β€’ Accounting Standards – Make or Buy decisions –at Development (Planning) phase.

Chapter 7 – Project Cost Management β€’ Accounting Standards – Line of Balance charts are used for manufacturing – Negative Float – the late start date is earlier than the early start date – Value Engineering/analysis – does not trade performance for cost – Prospectus – profitability and technical feasibility used to solicit funding .

# of periods required to recover the initial investment .Chapter 7 – Project Cost Management β€’ Accounting Standards – Definitive Estimate –most precise/accurate estimate for determining project costs – Management Reserve – over time PM wants no change to reserve. Nest Present Value and Discounted Cash Flow – all can be used to measure total income vs. total $ expended – Undistributed budget – budget that contains approved scope changes but are not planned yet – Depreciation is not a measurement of profitability – Pay Back Period . customers wants $ back – Cost and Schedule Data – predicts future performance – ROI.

Chapter 8 – Project Quality Management β€’ Project Quality Management – Processes required to ensure that the project will satisfy the needs for which it was designed – Includes all activities of the overall management function that determine the quality policy. quality assurance. These are implemented by quality planning. objectives. and responsibilities. and quality improvement . quality control.

Project Team – Quality Control – monitoring specific results to comply with quality standards and eliminating unsatisfactory performance causes (Check or Control). Project Owner – Quality Assurance – evaluating overall project performance to provide confidence that project will satisfy relevant quality standards (Implement or Execution). Project Team β€’ Compatible with ISO 9000 and 10000 series β€’ Proprietary and non-proprietary approaches (total quality management β€’ Must address the management of the project and the product of the project . Project Manager.Chapter 8 – Project Quality Management β€’ 3 major processes: – Quality Planning – identifying quality standards that are relevant to the project (Plan). Project Manager.

cost of correction – Management responsibility – requires participation of team.Chapter 8 – Project Quality Management β€’ Quality – the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs – Critical aspect is to turn implied needs into stated needs through project scope management – Do not confuse with grade – category or rank given to entities having the same functional use but different requirements for quality – Customer satisfaction – conformance to specifications (must produce what is stated) and fitness for use (must satisfy real needs) – Prevention – avoid mistakes vs. responsibility of management to provide resources – Processes within phases – plan-do-check-act cycle β€’ Recognize that the investment in product quality improvements may be borne by the performing organization since the project may not last long enough to reap reward .

Chapter 8 – Project Quality Management β€’ Quality Planning – Identify quality standards are relevant and how to satisfy β€’ Inputs to Quality Planning – Quality Policy – the overall intentions and direction of an organization with regard to quality as expressed by management – Scope Statement – Product Description – Standards and Regulations – Other Process Outputs – processes from other knowledge areas (procurement planning) .

cost is expense of project management activities – Benchmarking – comparing actual or planned practices to those of other projects – Flowcharting β€’ Cause and effect diagramming (Ishikawa or fishbone diagrams) illustrate how causes relate to potential problems or effects β€’ System or Process flowcharts – show how various elements of the system interrelate – Helps anticipation of what and where quality problems may occur – Design of Experiments – analytical technique which defines what variables have most influence of the overall outcome β€’ Cost and schedule tradeoffs .Chapter 8 – Project Quality Management β€’ Tools &Techniques for Quality Planning – Benefit/Cost Analysis – consider trade-offs. benefit is less rework.

procedures. Also known as Metrics. processes and resources needed to implement quality management – Operational Definitions – defines how an item is measured by the quality control process.Chapter 8 – Project Quality Management β€’ Outputs from Quality Planning – Quality Management Plan – describes how team will implement its quality policy. responsibilities. describes the project quality system – organizational structures. – Checklists – structured tool used to verify that a set of required steps has been performed – Inputs to other processes – may identify a need for further activity in another area .

Chapter 8 – Project Quality Management β€’ Quality Assurance – All planned and systematic activities implemented within the quality system to provide confidence that the project will satisfy quality standards β€’ Inputs to Quality Assurance – Quality Management Plan – Results of quality control measurements (testing) – Operational definitions .

Chapter 8 – Project Quality Management β€’ Tools & Techniques for Quality Assurance – Quality planning tools & techniques – Quality Audits – structured review of quality management activities to identify lessons learned β€’ Outputs from Quality Assurance – Quality improvements – taking action to increase the effectiveness and efficiency of the project to provide added benefits to the stakeholders β€’ Most likely will involve change control .

Chapter 8 – Project Quality Management β€’ Quality Control – monitoring specific results to determine if they comply with quality standards and identifying ways to eliminate causes of unsatisfactory results – Includes project (deliverables) and management (cost and schedule performance) results – Awareness of statistical quality control β€’ Prevention (keep errors out of process) and inspection (keep errors from customers) β€’ Attribute sampling (result conforms) and variable sampling β€’ Special Causes (unusual events) and random causes β€’ Tolerances (acceptable range) and control limits (result falls within range) .

Chapter 8 – Project Quality Management β€’ Inputs to Quality Control – Work results – include process and product results – Quality Management Plan – Operational Definitions – Checklists .

Chapter 8 – Project Quality Management β€’ Tools & Techniques for Quality Control – Inspection – activities such as testing to determine if results comply with requirements – Control Charts – plot results over time – Pareto diagrams – frequency of occurrence that identifies type or category of result (80/20 rule) – guides corrective action – Statistical sampling – select population of interest for inspection – Flowcharting – Trend Analysis – forecast future outcomes based on historical results β€’ Technical performance (# of errors identified. # of errors that remain) β€’ Cost and Schedule performance (activities per period with significant variances) .

Chapter 8 – Project Quality Management β€’ Outputs from Quality Control – Quality Improvement – Acceptance Decisions (accept/reject) – Rework – action to bring defective item into compliance β€’ Frequent cause of project overruns – Completed checklists – Process Adjustments – immediate corrective/preventive actions β€’ Most likely involves change control .

Chapter 8 – Project Quality Management β€’ Tips from the Review Guide – Philosophy: definition of quality.small improvements to reduce costs and ensure consistency – Marginal Analysis – optimal quality is reached at the point when revenue from improvement equals the costs to secure it – Just in Time . prevention over inspection – β€œConformance to requirements. avoidance of β€œgold plating” – giving customer extras. specifications and fitness of use” – Quality Management – processes required to ensure that the project will satisfy the needs for which it was undertaken – Continuous Improvement .decrease amount of inventory/decrease investment .

46% +/.Chapter 8 – Project Quality Management β€’ Tips from the Review Guide – ISO 9000 or 10000 – standards to ensure that corporations follow their own quality procedures – Total Quality Management – continuous improvement in business practices – Normal Distribution – most common probability – used to measure variations – Standard deviation (sigma) – measure how far away from the mean (dotted vertical line) – 3 or 6 sigma – represents level of quality β€’ β€’ β€’ β€’ +/.26% +/.6 sigma equal to 99.99% .2 sigma equal to 95.73% +/.1 sigma equal to 68.3 sigma equal to 99.

Chapter 8 – Project Quality Management β€’ Tips from the Review Guide – Responsibility to quality – entire organization β€’ Ultimate – employee β€’ Overall or Primary – Project Manager β€’ Design and Test Specifications – engineer – Prevention over inspection – quality must be planned in not inspected in .

rework β€’ Studies vs. Inventory Costs and warranty costs – Quality Planning (Plan) – determine what will be quality on project and how quality will be measured – done during Planning Phases β€’ Identifying which standards are relevant to project –how to satisfy them β€’ Benchmarking – look at past projects to determine ideas for improvement β€’ Cost Benefit Analysis β€’ Flowcharts (fishbone) β€’ Design of Experiments . Scrap β€’ Surveys vs.Chapter 8 – Project Quality Management β€’ Tips from the Review Guide – Cost of conformance vs. non-conformance β€’ Quality Training vs.

Chapter 8 – Project Quality Management β€’ Tips from the Review Guide – Quality Assurance (Implement) – determine if your measurement of quality is appropriate – done during Execution phases β€’ Process of evaluating overall performance on a regular basis β€’ Quality Audits – structured review of quality activities that identify lessons learned .

using quality control tools – checking work .Chapter 8 – Project Quality Management β€’ Tips from the Review Guide – Quality Control (Check) – perform the measurement and compare to the quality plan – done during Control phases β€’ Process of monitoring specific project results to determine if they comply with relevant quality standards and identify ways of eliminating unsatisfactory performance β€’ Performance of the measurement or process.

Chapter 8 – Project Quality Management β€’ Tips from the Review Guide β€’ Quality Control Tools – Pareto Diagrams – 80/20 rule – the chart presents the information being examined in its order of priority and helps focus attention on the most critical issues – Fishbone diagram (Cause and Effect) Β» A creative way to look at the causes or potential causes of a problem Β» Helps stimulate thinking. organizes thoughts and generates discussion Β» Can be used to explore a desired future outcome and the factors to which it relates .

Chapter 8 – Project Quality Management β€’ Tips from the Review Guide β€’ Quality Control Tools – Checklists – list of items to inspect – Control Charts – graphic displays of the results over time – used to determine if a process is in control Β» Upper and Lower Control Limits – two dashed lines – show the acceptable range of a variation – range determined by company’s quality standard (sigma) Β» Mean – line in the middle – shows middle of the range of acceptable results Β» Specification Limits – 2 solid lines outside the upper and lower control limits – represent the customer's expectations/requirements of quality .

Chapter 8 – Project Quality Management β€’ Tips from the Review Guide β€’ Quality Control Tools Β» Out of Control – process is out of control when: Β» A data point falls outside of the upper or lower control limit Β» Non-random data points are within the upper control and lower control limits Β» Rule of 7 – non-random points outside the mean process should be investigated Β» Assignable Cause – data point the requires investigation to determine the cause of the variation .

Chapter 8 – Project Quality Management β€’ PMI and Deming – Cost of conformance – 85% of costs of quality are responsibility of Management β€’ Quality Training – Rework β€’ Studies – Scrap β€’ Surveys – Inventory and Warranty costs β€’ Crosby – absolutes of quality – Performance standard is zero defects. measurement system is cost of nonconformance Continuous Improvement – Japanese (Kaizen) .

decreased cost risk . increased cost effectiveness.Chapter 8 – Project Quality Management β€’ Marginal Analysis – optimal quality is reached when incremental revenue from improvement equals incremental cost to secure β€’ Variable – characteristic to be measured β€’ Attribute – measurement (objective or subjective) β€’ Increase quality = increased productivity.

objective and are specific characteristics for which a project is designed and tested – Quality assurance – example is team training – Cost of Conformance = team training .Chapter 8 – Project Quality Management β€’ Review Guide Tips – Primary responsibility for quality management is the PM – Results of increase in quality β€’ Increased productivity β€’ Increased cost effectiveness β€’ Decreased cost risk – Quality attributes – can be subjective.

Engineer .Chapter 8 – Project Quality Management β€’ Review Guide Tips – Marginal Analysis: optimal quality is reached when incremental revenue from improvement equals the incremental cost to secure – Standard Deviation: how far away from mean – Variable: characteristic you want to measure – Attribute: measurement (subjective or objective) – Ultimate Responsibility – Employee – Overall Responsibility – PM – Design/Test Specifications .

Chapter 8 – Project Quality Management β€’ Review Guide Tips – If quality sample size increases. the quality control band decreases – Product Cost plus Operations and Maintenance costs increase perceived value when balanced – Cost of Conformance = training – Crosby Absolutes of Quality – performance of standard is zero defects and the measurement system is the cost of non-conformance – Deming & Japanese are associated with Quality Improvement programs – Quality Control – performed by operating personnel .

the producers risk decreases and consumer risk increases – 85% of costs of quality are direct responsibility of management .Chapter 8 – Project Quality Management β€’ Review Guide Tips – Quality objectives are approved in conceptual stage by project owner – QA – auditing function that provides feedback to team and client about quality of output being produced – If sample size is a constant and acceptance numbers increase.

Chapter 9 – Human Resource Management β€’ Project Human Resource Management – Processes required to make the most efficient use of people – 3 major processes: β€’ Organizational Planning β€’ Staff Acquisitions β€’ Team Development – Keep in mind of transient nature of projects – Apply techniques that apply to current project needs – Ensure HR compliance with project management activities .

9 manager = good relationship with team – Project Organization β€’ β€’ β€’ β€’ Conflict between PM and Functional Managers Dual allegiance of team members Complex prioritization of resources Loss of developed procedures on project dissolution – Compromise = both sides will lose – Delegation β€’ β€’ β€’ β€’ Defer the decision Interpreted as passive Emphasize task vs. personnel Can be frequently used .Chapter 9 – Human Resource Management β€’ Project Human Resource Management – 1.

Chapter 9 – Human Resource Management β€’ Project Human Resource Management – If there is a team of experts. PM decisions will promote high satisfaction – Functional/Project Managers likely to exercise: β€’ Power β€’ Authority β€’ Influence – Traditional organization forms have no single point of contact for client/sponsor .

and reporting relationships β€’ Individual and group assignments β€’ Internal and external employees β€’ Linked with communication planning . documenting and assigning project roles.Chapter 9 – Human Resource Management β€’ Organizational Planning – Identifying. responsibilities.

β€’ Interpersonal interfaces – formal and informal reporting relationships among individuals – Staffing Requirements – define skill sets from individual/group in particular time frames . electrical.formal and informal reporting relationships among technical disciplines – Engineers. manufacturers.Chapter 9 – Human Resource Management β€’ Inputs to Organizational Planning – Project Interfaces β€’ Organizational interfaces – formal and informal reporting relationships among organizational units β€’ Technical interfaces . etc.

weak matrix) β€’ Collective bargaining agreements – contractual arrangements β€’ Preferences of project management team β€’ Expected staff assignments .Chapter 9 – Human Resource Management β€’ Inputs to Organizational Planning – Constraints – factors that limit project team’s options β€’ Organizational structure (strong vs.

guidelines.Chapter 9 – Human Resource Management β€’ Tools & Techniques for Organizational Planning – Templates – reuse a similar project’s role and responsibility definitions – Human Resource Practices – corporate policies. and practices – Organizational Theory – how organizations are structured – Stakeholder Analysis – needs of stakeholders are ensured .

reduce transition periods. Utilizes a Responsibility Assignment Matrix (RAM) to define responsibility for each item in the Work Breakdown Structure/task list – Staffing Management Plan – when and how personnel are included and removed from the project team β€’ Resource leveling. sensitivity to morale – Organizational Chart – display reporting relationships – Supporting Detail β€’ Organizational impact β€’ Job descriptions β€’ Training needs .Chapter 9 – Human Resource Management β€’ Outputs from Organizational Planning – Role and Responsibility Assignments – can vary over time. closely linked to scope definition. eliminate β€œdead time” between assignments.

Chapter 9 – Human Resource Management β€’ Staff Acquisition – Ensure resources are available for project work β€’ Inputs to Staff Acquisition – Staffing Management Plan – Staffing Pool Description β€’ β€’ β€’ β€’ Previous experience Personal interests Personal characteristics Availability – Recruitment Practices .

or an internal initiative – Procurement – outside services are needed (lacking internal skills or availability can not be met) β€’ Outputs from Staff Acquisition – Project staff assigned – Project Team Directory – contact list .Chapter 9 – Human Resource Management β€’ Tools & Techniques for Staff Acquisition – Negotiations with functional managers and other teams β€’ Staff utilization and corporate politics – Pre-assignment – result of a competitive proposal.

Chapter 9 – Human Resource Management β€’ Team Development – enhancing stakeholders to contribute along with maintaining the project team’s functionality – Personal development is the foundation – Team members often balance responsibilities to a functional manager and project manager β€’ Critical to success of project .

Chapter 9 – Human Resource Management β€’ Inputs to Team Development – Project Staff – Project Plan – Staffing Management Plan – Performance Reports – External Feedback β€’ Periodic measurements of performance .

knowledge. and capabilities of project team β€’ Must be factored in cost analysis of project . apply to the project β€’ Cultural differences recognition – Co-location – place members in physical location – Training – enhance skills.Chapter 9 – Human Resource Management β€’ Tools & Techniques for Team Development – Team-building activities – General Management Skills – Reward and recognition systems β€’ Promote desired behavior β€’ Must be achievable.

Chapter 9 – Human Resource Management β€’ Outputs from Team Development – Performance Improvements β€’ Individual skills β€’ Team Behavior β€’ Identify more efficient methods of work – Input for performance appraisals .

Chapter 9 – Human Resource Management β€’ Review Guide Tips – Roles and responsibilities β€’ Project Manger – plan. estimate and schedule of project β€’ Team – help prepare the WBS. complete tasks β€’ Senior Management – approve Overall project plan. and estimate time for tasks. budget and schedule and to approve any changes that are made to those figures β€’ The person experiencing the problem must try to solve it themselves as long as means are in their control . Network Diagrams.

Chapter 9 – Human Resource Management β€’ Review Guide Tips – Powers: β€’ β€’ β€’ β€’ β€’ Formal (legitimate) Reward Penalty (coercive) Expert (earned) Referent – authority of a higher position – Best are Expert and Reward. Reward and Penalty derived from PM’s position within the company . Penalty is the worst β€’ Formal.

Chapter 9 – Human Resource Management β€’ Review Guide Tips – Conflict β€’ Inevitable consequence of organizational interactions β€’ Can be beneficial β€’ Resolved by identifying the causes and problem solving by people that are involved & their immediate manager β€’ Nature of project β€’ Limited power of the project manager β€’ Necessity for obtaining resources from functional managers .

Chapter 9 – Human Resource Management β€’ Review Guide Tips – Avoid conflict β€’ Informing the team β€’ Clearly assigning tasks without ambiguity β€’ Challenging and interesting work assignments – Conflict Sources (in order of frequency) β€’ β€’ β€’ β€’ β€’ β€’ β€’ Schedules Project Priorities Resources Technical opinions Administrative Procedures Cost Personality .

Chapter 9 – Human Resource Management β€’ Review Guide Tips – Motivational Theories β€’ Maslow’s Hierarchy of Needs – people work to get a chance to contribute and use their skills – β€˜self-actualization’ β€’ McGregor’s Theory of X and Y – X – people need to be watched every minute – Y – people willing to work without supervision β€’ Herzberg’s Theory – poor hygiene factors destroy motivation but improving them will not improve motivation – Motivating Agents Β» Responsibility Β» Self-actualization Β» Professional growth Β» Recognition .

Chapter 9 – Human Resource Management β€’ Review Guide Tips – Responsibility Charts β€’ Matrix – cross references team members with tasks (does not show time – when job is done) β€’ Histogram – months vs. number of resources β€’ Gantt Chart – shows when staff allocated to tasks – Leadership Skills β€’ β€’ β€’ β€’ Directive Facilitating Coaching Supportive – Team Building Skills .

personnel Can be frequently utilized .Chapter 9 – Human Resource Management β€’ Review Guide Tips – Projectized Organization β€’ β€’ β€’ β€’ Conflict between PM and Functional Managers Dual Allegiance of team members Complex prioritization of resources Loss of developed procedures on project dissolution – Compromise – both sides will lose – Delegation β€’ β€’ β€’ β€’ Defer the decision Interpreted as passive Emphasize task vs.

90% of PM’s time is spent communicating β€’ Information Distribution – making information available β€’ Performance Reporting – collecting and disseminating project information β€’ Administrative Closure – formalize project/phase completion . collection. who needs what and when. dissemination and disposition of project information – General communications management β€’ Communications Planning – determining informational needs.Chapter 10 – Project Communications Management β€’ Project Communications Management – Processes to ensure timely and proper generation.

Chapter 10 – Project Communications Management β€’ Communications Planning – Determining information requirements of stakeholders – Tightly linked with organizational planning β€’ Inputs to Communications Planning – Communication requirements – sum of the information requirements of the stakeholders β€’ Define type and format of information with analysis of value of information β€’ Project organization and stakeholder responsibility relationships β€’ Disciplines. departments and specialties involved in project β€’ Logistics of number of individuals at location β€’ External communication needs (media) .

Chapter 10 – Project Communications Management – Communication Technology – used to transfer information β€’ Immediacy of need for information β€’ Availability of technology β€’ Expected project staffing – compatible with personnel experience β€’ Length of project – will technology change during duration? – Constraints – factors that limit project team’s options – Assumptions .

compatible with project organization chart β€’ Description of information included – format. conventions β€’ Production schedules of each type of communication β€’ Methods for accessing information β€’ Method for updating and refining communications plan .Chapter 10 – Project Communications Management β€’ Tools & Techniques for Communication Planning – Stakeholder analysis – informational needs should be analyzed to develop methodology suited for the project. level of detail. eliminate unnecessary information or technologies β€’ Outputs from Communications Planning – Communication Management Plan β€’ Collection and filing structure to detail the gathering and storage of information. updating and dissemination β€’ Distribution structure – who gets info in certain format.

Chapter 10 – Project Communications Management β€’ Information Distribution – making information available in a timely manner by implementing the communications plan. responding to requests for information β€’ Inputs to Information Distribution – Work Results – Communication Management Plan – Project Plan .

Chapter 10 – Project Communications Management β€’ Tools & Techniques for Information Distribution – Communication Skills – used to exchange information. software – Information distribution systems – meetings. Sender is responsible for clarity. correspondence. networked databases. receiver is responsible for receipt and understanding – Information retrieval systems – filing systems. video/audio conferencing β€’ Outputs from Information Distribution – Project Records – maintained in an organized fashion .

schedule. risk and procurement .Chapter 10 – Project Communications Management β€’ Performance Reporting – Collecting and disseminating performance indicators to provide stakeholders information how resources are achieving project objectives β€’ β€’ β€’ β€’ Status reporting Progress reporting Forecasting Project scope. cost and quality.

Chapter 10 – Project Communications Management β€’ Inputs to Performance Reporting – Project Plan – Work Results – deliverables completed. % completed. costs incurred – Other Project records .

Chapter 10 – Project Communications Management β€’ Tools & Techniques for Performance Reporting – Performance reviews – meetings to assess status – Variance Analysis – comparing actual results to planned or expected results (baseline). cost and schedule measures – calculate 3 keys: β€’ Budgeted Cost of Work (BCWS) – portion of approved cost estimate planned to be spent on activity during a given period β€’ Actual Cost of Work Performed (ACWP) – total of direct and indirect cost incurred in accomplishing work on activity in a given period β€’ Earned Value (Budgeted Cost of Work Performed – BCWP) – percentage of total budget equal to percentage of work actually completed – Cost Variance (CV) = BCWP – ACWP – Schedule Variance (SV) = BCWP – BCWS – Cost Performance Index (CPI) = BCWP/ACWP – Information Distribution Tools & Techniques . cost and schedule most frequent – Trend Analysis – examining results over time to determine performance – Earned Value Analysis – integrates scope.

– Change Requests – handled as part of change control .Chapter 10 – Project Communications Management β€’ Outputs from Performance Reporting – Performance Reports – organize and summarize information gathered and present results β€’ Bar charts. etc. Gantt charts. S-curves.

reflect final specifications and archiving of material .Chapter 10 – Project Communications Management β€’ Administrative Closure – Projects/phases after achieving results or terminated require closure – Verifying and documenting project results to formalize acceptance – Collection of project records. analysis of effectiveness.

Chapter 10 – Project Communications Management β€’ Inputs to Administrative Closure – Performance Measurement Documentation – includes planning docs. all information that records and analyzes performance – Documentation of product and project – Other project records β€’ Tools & Techniques of Administrative Closure – Performance Reporting tools & techniques β€’ Outputs from Administrative Closure – Product Archives –complete index of all records. database updates – Formal Acceptance – signoffs from client or sponsor – Lessons Learned .

Chapter 10 – Project Communications Management β€’ Tips from Review Guide – Understand all concepts and major points – Memorize the communications model – Understand the inputs/outputs of Administrative Closure – Understand how administrative closure differs from contract closeout β€’ Contract closeout has product verification and administrative closeout but the contract terms may have special provisions/procedures for closeout .

confirms agreement and ask for clarification – Effective Listening – watching speaker. language and culture β€’ Sender should encode message carefully – Nonverbal – Paralingual (pitch and tone) – Active Listening – receiver confirms they are listening. repeating and providing feedback . ask questions. think before speaking.Chapter 10 – Project Communications Management β€’ Communication Model – Messages are encoded by sender and decoded by receiver based on receiver’s education. experience.

All Plans. notes β€’ Informal Verbal – Meetings. e-mail. speeches β€’ Informal Written – memos. conversations .Chapter 10 – Project Communications Management β€’ Communication Methods – Pick the form of communication that is best for the situation β€’ Formal Written – complex problems. communicating over long distances β€’ Formal Verbal – Presentations.

Distance. Hostility. Language. Culture β€’ Performance Reporting – – – – – – Status Reports (where project stands) Progress Reports (what has been accomplished) Trend Report (project results over time) Forecasting Report (projecting future status) Variance Report (actual results vs. planned) Earned Value β€’ Communication Channels – communications grow at a linear rate – N (N-1)/2 where N = the number of people – Example 4 people equals 6 communication channels . Improper en-coding.Chapter 10 – Project Communications Management β€’ Communication Blockers – Noise. β€œbad idea”.

written and non verbal methods There are 5 directions of communication FaΓ§ade – when an individual processed needed information but withholds the information .Chapter 10 – Project Communications Management β€’ To determine if someone understands message feedback must be obtained β€’ Unanimous Agreement – – – – β€’ All members committed Decisions reached slowly Integrity is developed Future decision making is enhanced Clearly defined group goals – Motivate team behavior – Cause tension until completed – Encourage member identification β€’ β€’ β€’ Complex messages need oral.

future decision making is enhanced β€’ Clearly defined group goals: motivate team behavior. cause tension until completed. must obtain feedback β€’ Unanimous Agreement – all members committed. encourage member interaction . decisions reached slowly. integrity is developed.Chapter 10 – Project Communications Management β€’ Least effective form of communication for complex situations is verbal and formal β€’ If there are a team of experts. PM decisions will likely promote high satisfaction β€’ Functional/Project Mangers likely to exercise – Power – Authority – Influence β€’ Traditional organization forms have no single point of contact for clients/sponsors β€’ To determine if someone understands message.

written and non verbal methods Least effective form of communication for complex issues: verbal and formal .Chapter 10 – Project Communications Management β€’ β€’ Complex messages need oral.

analyzing. maximizing results of positive events and minimizing consequences of adverse events β€’ Risk Identification – which are likely to affect the project β€’ Risk Quantification – evaluation of risk to assess the range of possible outcomes – Sometimes treated as single process. and responding to risk areas.Chapter 11 – Project Risk Management β€’ Project Risk Management – Includes identifying. risk analysis/assessment β€’ Risk Response Development – defining enhancement steps for opportunities and response – Sometimes called response planning/mitigation β€’ Risk Response Control – responding to changes in risk over course of project – May be combined as risk management .

address internal and external risks β€’ Internal –project team has control/influence over β€’ External – beyond project team’s control – Identify cause and effect and effects and causes. what outcomes should be avoided . what could happen vs.Chapter 11 – Project Risk Management β€’ Risk Identification – Determining which risks are likely to affect the project and documenting them – Performed on a regular basis.

limited amount of information β€’ Staffing Plan – hard to replace/source skill sets β€’ Procurement Management Plan – market conditions – Historical Information – previous projects β€’ Project Files β€’ Commercial Databases β€’ Project Team Knowledge – member experiences . Often described in terms of cost and schedule impact – Other Planning Reports β€’ WBS (any non-traditional approaches) β€’ Cost/Duration Estimates – aggressive schedules.Chapter 11 – Project Risk Management β€’ Inputs to Risk Identification – Product Description – more risk associated with unproven technologies (innovation/invention).

process outputs. internal sources – Flowcharting – understand cause and effect relationships – Interviewing – conversations with stakeholders .Chapter 11 – Project Risk Management β€’ Tools & Techniques for Risk Identification – Checklists – organized by source of risk. product and technology issues. included project context.

turnover) – New technologies obsolete need of product – Socio. misunderstanding Poorly defined roles and responsibilities Insufficiently skilled staff – Include estimate of probability. range of possible outcomes. Political and Economic events – Include estimate of probability. poor morale) – Inputs to other processes – identify need in another area. all-inclusive β€’ β€’ β€’ β€’ Changes in requirements Design errors. anticipated frequency – Risk Symptoms – triggers that are indirect manifestations of actual risk events (e. range of possible outcomes.Chapter 11 – Project Risk Management β€’ Outputs from Risk Identification – Sources of Risk – categories of possible risk events.g. constraints and assumptions . expected timing. anticipated frequency – Potential Risk Events – discrete occurrences that may affect project β€’ Identified when probability/magnitude of loss is high (e. expected timing.g. omissions.

schedule delay considers a new strategy) β€’ Multiple effects from a single event β€’ Singular Stakeholder opportunities may force suffering in other areas β€’ Reliance on statistics and forecasting (mathematical errors) .g.Chapter 11 – Project Risk Management β€’ Risk Quantification – Evaluation of possible project outcomes and determining which events warrant response β€’ Opportunities and threats can provide unanticipated results (e.

Chapter 11 – Project Risk Management β€’ Inputs to Risk Quantification – Stakeholder risk tolerance β€’ More capital to expend. perceptions of severity – Sources of Risk – Potential Risk Events – Cost Estimates – Activity Duration Estimates .

PERT techniques – Decision Trees – depicts key interactions among decisions and possible outcomes – Expert Judgment .Chapter 11 – Project Risk Management β€’ Tools & Techniques for Risk Quantification – Expected Monetary Value – product of 2 numbers β€’ Risk Event Probability – estimate that event will occur β€’ Risk Event Value – estimate of gain or loss – Statistical Sums – calculate range of total costs from cost estimates for individual work items – Simulation – representation or model. provide statistical distribution of calculated results. Critical Path. β€’ Monte Carlo.

Chapter 11 – Project Risk Management β€’ Outputs from Risk Quantification – Opportunities to pursue. threats to respond – Opportunities to ignore. threats to accept .

or passive response) .Chapter 11 – Project Risk Management β€’ Risk Response Development – Defining enhancement steps for opportunities and responses to threats β€’ Avoidance – eliminating threat by eliminating the cause β€’ Mitigation – reducing expected monetary value of event by reducing the probability of occurrence β€’ Acceptance – accept the consequences (active contingency plan .

Chapter 11 – Project Risk Management β€’ Inputs to Risk Response Development – Opportunities to pursue. threats to respond – Opportunities to ignore. threats to accept β€’ Tools & Techniques for Risk Response Development – Procurement – acquire resources (exchange 1 risk for another) – Contingency Planning – defining action steps should a risk event occur – Alternative Strategies – change planned approach – Insurance .

Chapter 11 – Project Risk Management β€’ Outputs from Risk Response Development – Risk Management Plan – document procedures to manage risk events. anticipated procurements – Contingency Plans – Reserves – provision in project plan to mitigate costs and schedule risks. maintenance of identification and quantification process. . Addresses risk identification and quantification processes. Used with a modifier (management. implementation of contingency plans and allocation of reserve – Inputs to other processes – alternative strategies. contingency plans. services and other functions to avoid and mitigate threats. personnel responsible for managing areas of risk. budget) to provide further detail when type of reserve can be used – Contractual Agreements – insurance. schedule.

Chapter 11 – Project Risk Management β€’ Risk Response Control – Involves executing the risk management plan in order to respond to risk events during the project β€’ Control and iteration are required. not all risks can be identified β€’ Inputs to Risk Response Control – Risk Management Plan – Actual Risk Events – recognize occurrence – Additional Risk Identification – surfacing of potential or actual risk sources .

Chapter 11 – Project Risk Management β€’ Tools & Techniques for Risk Response Control – Workarounds – unplanned responses to negative risk events (response was not defined in advance) – Additional Risk Response Development – planned response may not be adequate β€’ Outputs from Risk Response Control – Corrective Action – performing the planned risk response – Updates to Risk Management Plan .

and responding to risk. minimizing consequences of negative events . analyzing. Maximize results of positive events.Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Definition of risk: a discrete occurrence that may affect the project for good or bad – Definition of uncertainty: an uncommon state of nature. characterized by the absence of any information related to a desired outcome – Definition of risk management: The processed involved with identifying.

Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Inputs to Risk Management: β€’ β€’ β€’ β€’ β€’ β€’ β€’ β€’ β€’ β€’ All project background information Historical records Past Lessons Learned Project Charter Scope Statement Scope of work WBS Network Diagram Cost and Time estimates Staffing Plan .

government Β» Internal: Schedule.Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Management Process β€’ Risk Identification – majority during Planning. cost. materials. people. onset of project to close of project – 2 Types Β» Business: Risk of a gain or loss Β» Pure (insurable): only a risk of loss – Sources: Β» External: Regulatory. inexperience. planning. environmental. equipment Β» Technical: Changes in technology Β» Unforeseeable: small (only about 10%) . staffing. scope change.

Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Management Process β€’ Risk Factors – determine: – – – – Probability that it will occur (what) Range of possible outcomes (impact. amount at stake) Expected Timing (when) Anticipated frequency (how often) β€’ Symptoms – early warning signs determined by PM β€’ Risk Tolerances – amount of risk that is acceptable .

does not provided a per task analysis of risk β€’ Risk identification ends too soon β€’ Project Risk identification and Evaluation are combined – results in risks that are evaluated when they appear.Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Common Stumbling Blocks β€’ Risk identification is completed without knowing enough about the project β€’ Project Risk evaluated only by questionnaire. culture) β€’ Only 1 identification method is used β€’ First risk response strategy is used without other consideration β€’ Risks are not devoted enough attention during the Execution phase . decreased total number of risks and stops identification process β€’ Risks are identified too generally β€’ Categories of risks are forgotten (technology. interview or Monte Carlo.

which risk events warrant a response – Probability – Amount at stake (impact) – Develop a ranking (priority) of risks Β» Qualitative – take an educated guess Β» Quantitative – estimation by calculation β€’ Risk Assessment = Risk Identification + Risk Quantification .Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Management Process β€’ Risk Quantification – assess risks to determine range of possible outcomes.

which risk events warrant a response – Probability – Amount at stake (impact) – Develop a ranking (priority) of risks Β» Qualitative – take an educated guess Β» Quantitative – estimation by calculation β€’ Risk Assessment = Risk Identification + Risk Quantification .Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Management Process β€’ Risk Quantification – assess risks to determine range of possible outcomes.

Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Management Process β€’ Monte Carlo simulation – simulates cost and schedule results of project – Indicates risk of a project and each task by providing a percent probability that each task will be on the critical path – Accounts for path convergence (where tasks in a Network diagram converge into 1 task – more risk) β€’ Expected Monetary Value – multiply probability by impact – Helps define and prove what the project reserve should be β€’ Decision Trees – Takes into account future events when making a decision today – Makes use of expected value calculations and mutual exclusivity – Be able to draw one. circles are what can happen as a result of the decision . boxes are decisions.

Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Management Process β€’ Outputs from Risk Quantification – – – – – Determination of top risks Opportunities to pursue Opportunities to ignore Threats to respond to Threats to ignore .

Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Management Process β€’ Risk Response Development (what will be done. how to make risk smaller or eliminate) – Not all risks can be eliminated – Alternative Strategies (risk mitigation) Β» Avoidance – eliminate the cause Β» Mitigation – effect the probability or impact of risk Β» Acceptance – do nothing Β» Deflection (transfer. outsourcing . insurance. allocate) – make another party responsible.

non-critical risks should be recorded to revisit during the execution phase .Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Management Process β€’ Outputs from Risk Response Development – Insurance – exchange an unknown risk for a known risk (response to pure risks) – Contracting – hire experience to perform work – Contingency Planning – specific actions to take if risk event occurs – Reserves (contingency) – recommended total of 10% to account for known and unknown risks β€’ Risk Management Plan – documents risks identified and how they are addressed.

risk response development actions . addressing risks that were unanticipated – Contingency Plans – planned responses to risks.Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Management Process β€’ Risk Response Control – executing and updating the Risk Management Plan – Workarounds – Unplanned responses to risks.

Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Risk Mitigation – does not involve ID of risks (they are already known) – Self Insurance – can lead to failure to ensure funds for low probability events and confuse business risks with pure risks – Risk mitigation – can purchase insurance – Schedule Risk – critical path adjusted by High Risk activity float – Sensitivity Analysis – estimate the effect of change of one project variable on overall project .

Chapter 11 – Project Risk Management β€’ Tips from Review Guide – Standard Deviation of project completion – relationship of uncertainty of critical path activities. indicator of project end target confidence .

thus a key stakeholder β€’ Seller’s project management team must be concerned with all processes of project management.Chapter 12 – Project Procurement Management β€’ Project Procurement Management – Processes required to acquire goods and services from outside the organization – Discussed from the perspective of the buyer β€’ Terms and conditions of the contract is a key input to many processes β€’ Buyer is the customer. not just their knowledge area .

how to. how much.Chapter 12 – Project Procurement Management β€’ Procurement Planning – Identify project needs that can best be met by acquiring resources – Consideration whether to procure. when to purchase – Subcontractor decisions may provide flexibility β€’ Internal procurement does not involve formal solicitation and contract .

what services are available – Other Planning Outputs – preliminary cost and schedule. cash flow. WBS. risks. quality management plans. not to be confused with a statement of work – Procurement Resources – formal contracting group (RFP) – Market Conditions – supply and demand. staffing – Constraints – factors that limit buying options – Assumptions .Chapter 12 – Project Procurement Management β€’ Inputs to Procurement Planning – Scope Statement – boundary for needs and strategies – Product Description – broad technical issues.

Chapter 12 – Project Procurement Management β€’ Tools & Techniques for Procurement Planning – Make or Buy analysis – determine if the service can be provided from within β€’ Include direct and indirect costs β€’ Factor ongoing need for items vs. 1-time usage – Expert Judgment – assess input – Contract type selection β€’ Fixed Price (lump sum) – incentives for meeting targets β€’ Cost Reimbursable Contracts – Time and Materials basis β€’ Unit Price – preset amount per unit of service .

concise description of services β€’ Can also be a Statement of Requirements for problem-solving activities .Chapter 12 – Project Procurement Management β€’ Outputs from Procurement Planning – Procurement Management Plan – describes how procurement process will be managed β€’ β€’ β€’ β€’ β€’ β€’ Type of contract Independent estimates needed? Autonomy of project team Standardized documents Multiple provider management? Incorporate with other project aspects (scheduling and performance reporting) – Statement of Work (SOW) – describes the procurement in detail – clear.

Chapter 12 – Project Procurement Management β€’ Solicitation Planning – Preparing documents needed β€’ Inputs to Solicitation Planning – Procurement Management Plan – Statement of Work – Other Planning Outputs β€’ Tools & Techniques for Solicitation Planning – Standard Forms and Procedures – Expert Judgment .

nondisclosure statements) – May be defined by regulation – Flexible to allow seller suggestions – Evaluation Criteria – rate proposals. Request for Quotation. objective or subjective (previous experience) β€’ β€’ β€’ β€’ β€’ β€’ Price Understanding of need by seller Overall/Life Cycle cost (purchase plus operating cost) Technical Capability Management Approach Financial Capacity – Statement of Work Updates . β€’ Structure to receive complete and accurate responses – Description of desired form of response and any required contractual provisions (e.g.Chapter 12 – Project Procurement Management β€’ Outputs from Solicitation Planning – Procurement Documents – used to solicit proposals from prospective sellers β€’ Bids. Contractor Initial Response. etc. Request for Proposal.

Chapter 12 – Project Procurement Management β€’ Solicitation – Obtaining information from prospective sellers β€’ Inputs to Solicitation – Procurement Documents – Qualified Seller Lists – preferred vendors β€’ Tools & Techniques for Solicitation – Bidder Conferences – mutual understanding meetings – Advertising – primarily with Government projects β€’ Outputs from Solicitation – Proposals – seller prepared documents describing willingness and ability to provide the service .

Chapter 12 – Project Procurement Management β€’ Source Selection – Apply evaluation criteria (seldom straight-forward) β€’ Price (lowest price may not always result in lowest project cost) β€’ Technical (approach) vs. commercial (price) β€’ Multiple sourcing may be needed for same service β€’ Inputs to Source Selection – Proposals – Evaluation Criteria – Organizational Policies .

Chapter 12 – Project Procurement Management β€’ Tools & Techniques for Source Selection – Contract Negotiation – clarification and mutual agreement on structure and requirements of contract prior to signature β€’ β€’ β€’ β€’ β€’ Responsibilities and authorities Applicable terms and law Financing Price Technical and business management – Weighting – quantifying data to minimize personal prejudice of source selection β€’ Assign numerical weight to evaluation criteria β€’ Rating sellers β€’ Multiply weight by rating and totaling overall score – Screening System – establish minimum performance criteria – Independent Estimates – β€œshould cost” estimates .

β€’ Legal relationship β€’ Legal review is most often necessary .Chapter 12 – Project Procurement Management β€’ Outputs from Source Selection – Contract – mutually binding agreement obligates seller provide goods and services and buyer to make payment.

schedule) Quality Control (verify contractor’s output) Change Control Financial Management .Chapter 12 – Project Procurement Management β€’ Contract Administration – Ensuring that the seller’s performance meets contractual requirements β€’ Project Team must be aware of legal ramifications of all actions taken β€’ Apply project management processes to contractual relationships and integrate outputs within the project – – – – – Project Plan Execution (authorize work) Performance Reporting (monitor cost.

quality standards. appeals – Seller Invoices . or description of product/service β€’ May result in disputes. actual costs – Change Requests – modify contract. claims.Chapter 12 – Project Procurement Management β€’ Inputs to Contract Administration – Contract – Work Results – seller’s deliverables.

Chapter 12 – Project Procurement Management β€’ Tools & Techniques for Contract Administration – Contract Change Control System – defines how a contract may be modified β€’ Includes paperwork. tracking system. dispute resolution procedures and approval levels – Performance Reporting – Payment System – Accounts Payable .

documentation . involves product verification and administrative paperwork β€’ Early termination is a special case β€’ Contract terms and conditions may prescribe procedures β€’ Inputs to Contract Close Out – Contract Documentation – supporting schedules.Chapter 12 – Project Procurement Management β€’ Contract Close Out – Similar to administrative closure.

identify successes and failures that warrant transfer to other procurement items β€’ Outputs from Contract Close Out – Contract File – complete index of records – Formal Acceptance and Closure – contract administration responsibility to provide a formal notice that contract has been completed .Chapter 12 – Project Procurement Management β€’ Tools & Techniques for Contract Close Out – Procurement Audits – structured review of entire procurement process.

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – – – – Most questions are process oriented Most questions are from the buyer’s perspective Contracts are formal agreements All requirements should be specifically stated in the contract – All contract requirements must be met – Changes must be in writing and formally controlled – US Gov’t backs all contracts by providing a court system .

something of value Legal Capacity – separate legal parties.Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – What forms a contract β€’ β€’ β€’ β€’ An offer An acceptance Consideration . competent parties β€’ Legal Purpose – can not perform illegal goods or services .

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Project Manager’s role for procurement β€’ Risk identification and evaluation β€’ Work within the procurement process – Procurement Process β€’ β€’ β€’ β€’ β€’ β€’ Procurement Planning = Make or buy Solicitation Planning = Request for Proposal Solicitation = Questions and Answers Source Selection = Pick vendor Contract Administration = Admin Contract Closeout = Finish .

schedule. scope of work) – Make β€’ β€’ β€’ β€’ Idle plant or workforce Retain control Proprietary information/procedures Buy vs. performance.Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Make or Buy: consider out of pocket costs and indirect cost of managing procurement – Buy – to decrease risk (cost. lease questions (use X = number of days when purchase and lease costs are equal) .

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Contract Type Selection – reasonable risk between the buyer and seller and greatest initiative for seller’s efficient and economic performance β€’ Scope – well defined? β€’ Amount or frequency of changes expected after start date β€’ Amount of effort and expertise the buyer can devote to manage the seller β€’ Industry standards .

bad for buyers (seller not motivated to control costs) β€’ CPIF – cost plus Incentive Fee.Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Cost Reimbursable (CR). seller costs + fee + bonus for meeting/exceeding target (incentive clause) . buyer bears highest risk (cost increases) β€’ CPFF – cost plus fixed fee. buyer pays all costs – fee (profit) established β€’ CPPC – cost plus percentage of costs. seller’s cost are reimbursed.

most common (1 price for all work). priced on per hour basis. or firm fixed price) . elements of fixed price contract and cost reimbursable contracts – buyer has medium risk – Fixed Price (lump sum.Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Time and Materials. risk of costs is upon seller β€’ FPIF – Fixed Price Incentive Fee β€’ FPEPA – Fixed Price Economic Price Adjustment – long duration projects – Incentives – help bring seller’s objectives in line with buyer’s .

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Incentive Fee and Final Price Calculations β€’ Must Have: – – – – – Target Cost Target Fee Target Price Sharing Ratio (buyer/seller) Actual Cost β€’ Fee = (Target Cost – Actual Cost) x Seller Ratio (%) β€’ Total Fee = Fee + Target Fee β€’ Final Price = Actual Cost + Total Fee .

Contract Type and Scope of Work β€’ Request for Proposal – Cost Reimbursable – Performance or Functional Scope (can be somewhat loosely defined) β€’ Invitation for Bid – Time & Materials – Design Scope (moderately defined) β€’ Request for Quotation – Fixed Price – Any Scope (must be detailed) .Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Procurement Documents.

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Terminology (Terms and Conditions) β€’ Force majeure – act of God β€’ Indemnification – who is liable β€’ Liquidated damages – estimated damages as a result of contract breach β€’ Material breach – a breach so large the project may not continue β€’ Special Provisions – provided by the Project Manager to contracts so that particular needs are addressed β€’ Privity – contractual relationship β€’ Single Source – contract directly with preferred seller β€’ Sole Source – only one supplier available in market .

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Evaluation Criteria β€’ β€’ β€’ β€’ β€’ β€’ Understanding of need Overall or life-cycle cost Technical ability Management Approach Financial Capacity Project Management Ability – Invitation for Bids are usually not evaluated with entire criteria (lowest rate is chosen) .

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Solicitation β€’ Bidder’s Conference – Benefit both buyer and seller – Watch out for Β» Collusion Β» Sellers not asking questions in front of their competition Β» Make sure all questions and answers are in writing and issued to all sellers (respond to same scope in work) .

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Source Selection β€’ Negotiation Objectives – Obtain a fair and reasonable price – Development a good relationship with seller Β» Project manager must be involved – Main Terms to negotiate Β» Responsibilities Β» Authority Β» Applicable Law Β» Technical and Business Management approaches Β» Contract Financing Β» Price .

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Contract Administration – assure that seller’s performance meets contractual requirements β€’ Project Managers must understand the contract and manage its completion – Sometimes contract is in conflict with Scope of Work – Only the contracting officer (CO) can change contract language Β» Often a source of conflict Β» Need to deal with a different company’s set of procedures Β» It is not as easy to β€œsee” problems Β» Greater reliance on reports to determine if a problem exists Β» Greater reliance on relationships between buyer and seller’s project managers .

decentralized contracting – Contract Interpretation β€’ Based on analysis of intent .Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – Contract Closeout – more attention to documentation and completion of files β€’ All documentation must be preserved and filed β€’ Centralized vs.

Chapter 12 – Project Procurement Management β€’ Tips from Review Guide – – – – – – – – – Fee = Target Cost – Actual Cost X Seller Ratio ($) Total Fee = Fee plus Target Fee Final Price = Actual Cost plus Total Fee Contractor = seller Purchasing Cycle – define need. prepare and issue purchase order Functional Spec – delineates specific end-use capabilities that are tested in acceptance procedure Measurable Capabilities = Performance Specifications Requisition Cycle – review of specification completeness Requirements Cycle – develops the statement of work .

30 questions in this area Understand Project Management Professional Code of Conduct – – – – Ethics Legal Issues Cultural Sensitivity Managing conflicts of interest .Supplement – Professional Responsibility β€’ 6th Process area added – – – – – β€’ β€’ Insuring Integrity and professionalism Contributing to the project management knowledge base Enhancing individual competence Balancing Stakeholders’ interests Interacting with team and stakeholders in a professional and cooperative manner Could be approx.

Supplement – Professional Responsibility β€’ Integrity and Professionalism – Understand the legal requirements surrounding the practice of projects – Know ethical standards that should govern the behavior of project managers – Comprehend the values of the community and the various project stakeholders – Practice proper judgment in the pursuit of successful project work – Compliance with all organizational rules and policies β€’ Upon a reasonable and clear factual basis report violations β€’ Responsibility to disclose circumstances that could be construed as a conflict of interest or appearance of impropriety .

Supplement – Professional Responsibility β€’ Integrity and Professionalism – Provide accurate and truthful representation to the public – Maintain and satisfy the scope and objectives of professional services – Maintain the confidentiality of sensitive information – Ensure a conflict of interest does not compromise legitimate interests of client/customer or interfere with professional judgment – Refrain from accepting gifts. inappropriate payments. compensation for personal gain unless in conformity with applicable laws or customs .

Supplement – Professional Responsibility β€’ Contribute to advancing the project management profession – Overall understanding of project management principles – Understand the community and media surrounding projects – Knowledge of research strategies available and proper communication techniques – Learn to communicate and transfer knowledge effectively as a coach and mentor and to use available research strategies – Respect and recognize intellectual property .

Supplement – Professional Responsibility β€’ Enhance Individual Competence – Understand the project manager’s strengths and weaknesses and learning style – become aware of instructional processes and tools – Know the useful competencies for project managers and possible training – Be able to perform self-assessment and competencies development plan – Ability to apply lessons learned .

Supplement – Professional Responsibility β€’ Balance Stakeholder’s Objectives – Understand the various competing stakeholders’ interests and needs – Comprehend the conflict resolution techniques useful in handling differing objectives – Be able to resolve conflicts in a fair manner – Exercise negotiation skills based on proper information .

norms and stakeholders’ communication styles – Show flexibility towards diversity.Supplement – Professional Responsibility β€’ Interact with team and stakeholders in a professional and cooperative manner – Understand cultural diversity. tolerance and self control – Becoming empathetic to differences .