PMP Prep Exam 6th Edition Full Slides PDF

By -
Dr.
Eng.
Ahme
d
Elshah
at ,
PhD,
PMP
PMP
#
1607
907
Project Management Professional
Sessions Interests
PMP Exam
Practice
PM
Practice
PMP Study Roadmap
1.Read 6.Solve 7.Make your

own notes
5.Conclude 8.Process
2.Solve
Key - words Assembly
9.Test
3.Read 4.Summarize environment
preparation.
Guidelines
 Focus on one source of knowledge.
 Continuous reading ( Every day reading is better than
one day a week)
 Logic thinking is the core competency.
 PM is a life style more than knowledge.
 Raise your benchmark when solving exams ( let your
passing score 90%)
 PM key – words is the most important key for the
exam.
What is a project?
Project
 Project is a temporary endeavor undertaken to create a
unique product, service or result.
 The temporary nature indicates definite beginning and end
and not mean short duration.
 The end is reached when the objectives had been
achieved, or the project is terminated because its
objectives will not or cannot be met, or the need for the
project no longer exist.
 Projects can have also social, economic and environmental
impacts.
Why Establishing a project?
 Market Demand
 An Organizational Need.
 Customer Request.
 Technological Advance.
 Legal Requirement.
Exercise 1
 Each group is to identify differences

between Operations & Projects.
Project vs. Operations
Similarity Differ
Projects vs  Performed by  Operations are ongoing and repetitive.
Operation people.  Operation purpose is to sustain business
 Limited by while project purpose is to attain
constraints. objectives.
 Planned,  Project team members is disbanded after
executed and the project end, the operation team not.
controlled.  Operations are stable process because it
 Performed to follows organization procedures, while
achieve there are uncertainties about the
organizational product that project creates.
objectives or  Projects tasks can be new to project
strategic plans. team.
Project Life Cycle
Cost & Staffing Level
Project Project Plan Accepted Achieved

Charter Deliverables Documents
Project Life Cycle
Starting the Organizing & Carrying out the work Closing the Project
Project Preparing

C/cs of the Project Life Cycle
 Cost & staffing levels are low in the beginning, peak as work is
carrying out , drop in the project close.
 The uncertainty & stakeholders influence and risk are greatest
at the start of the project, then decrease over the life cycle.
 The ability to influence the final characteristics of the projects’
product without impacting cost are greatest at the start and
decreases a s the project progress toward completion.
 The cost of change in the product scope are low on the
beginning and increases through the project life cycle.
 For large and complex projects may require additional level of
control, that’s why dividing the project into phases might
facilitate control.
Project Phases
 Definitions :
 Project phases are divisions within a project
where extra control is needed to effectively
manage the completion of a major deliverable.
 The number of phases, the need for phases, and
the degree of control applied depend on the

size, complexity, and potential impact of the
project.
Phase – to – Phase Relationships
1. Sequential 2. Overlapping 3. Iterative
?
Project Life Cycle

Project Process Group
Monitoring & Controlling
Initiation Planning Execution Closing

What is a process?
 A process is a set of interrelated actions and activities
performed to achieve a pre-specified product, result,
or service.
 Each process is characterized by its inputs, the tools
and techniques that can be applied, and the resulting
outputs.
Inputs Tools & Techniques Outputs

Processes Categories
 1 – Product – oriented processes:
 Specify and create the project’s product, they are
typically defined by project life cycle and vary by
application area.
 2 – Project management processes:
 Ensure the effective flow of the project throughout
its existence ( 5 Main process groups IPEMCC.)
PM Process Interactions
Initiating Planning Executing Monitoring Closing
Process Process Process And Process
Group Group Group Controlling Group
Group
Level of
Process
Interaction
Start Time Finish

Project Constraints
Time
Scope
Quality Cost
Project Knowledge Areas
vs. Process Groups
Initiation Planning Execution Monitoring & Closing
Control
Integration Scope Quality Scope Integration
Cost Stakeholder Schedule
Schedule Communication Cost
Stakeholders Quality Resources Quality
Resources Integration Communication
Communication Procurement Risk
Risk Risk Procurement
Procurement Stakeholder
Integration Integration
Stakeholder Resources
Project Office
 A formal structure that supports project management within an
organization and usually takes one of three forms (or
combinations):
 Providing the policies, methodologies and templates for managing
projects.
 Providing support, guidance, tools and training on how to manage
projects.
 Providing project managers for different projects and being
responsible for the results of the projects.
 Main Role : Supportive, Controlling, Directive.
Relationship Between the Product and
the Project Life Cycles
Product Life Cycle

Business Need
Upgrade
Business Plan Ongoing Operations ?
Idea Product
Project Life Cycle

Retirement
What is Agile?
 Agile is a project management methodology that
uses short development cycles called “sprints” to
focus on continuous improvement in the development
of a product or service.
12 key Principles of Agile
 Customer satisfaction is always the highest priority and is achieved
through rapid and continuous delivery.
 Changing environments are embraced at any stage of the process to
provide the customer with a competitive advantage.
 A product or service is delivered with higher frequency.
 Stakeholders and developers collaborate closely on a daily basis.
 All stakeholders and team members remain motivated for optimal
project outcomes, while teams are provided with all the necessary
tools and support, and are trusted to accomplish project goals.
 Face-to-face meetings are deemed the most efficient and effective
format for project success.
12 key Principles of Agile
 A final working product is the ultimate measure of success.
 Sustainable development is accomplished through agile
processes whereby development teams and stakeholders
are able to maintain a constant and ongoing pace.
 Agility is enhanced through a continuous focus on technical
excellence and proper design.
 Simplicity is an essential element.
 Self-organizing teams are most likely to develop the best
architectures and designs and to meet requirements.
 Regular intervals are used by teams to improve efficiency
through fine-tuning behaviors.
Project initiation concept
Develop Project Charter
Develop Project Charter
 Formally authorize a project or phase,
documenting initial requirement that satisfy
stakeholders’ needs.
 Projects are chartered and authorized external to
the project by the organization, program or
portfolio management body.
 In multi phase project, this process used to validate
or refine the decisions made during the previous
iteration of develop project charter.
Project Charter Inputs
 1. Benefits Management Plan:
 Target Benefits : Tangible and intangible
benefits includes financial value.
 Strategic alignment with other strategic
objectives.
 Time frame for achieving benefits.
 Benefits owner
 Metrics, Risks and assumption.
Project Charter inputs
 2. Business Case:
 Provides the necessary information from a business
standpoint to determine if to invest in the project or
not ( Cost – Benefit analysis).
 The business case is created as a result of: Market
demand, Organizational need, customer
request,…etc.
 Business case is updated in multi – phase projects.
Project Charter inputs
 3. Enterprise Environmental Factors:
 Governmental or industry standards
 Organizational infrastructure
 Marketplace conditions
 4. Organizational Process assets:
 Organizational standards processes, policies
 Templates
 Knowledge base.
Organizational Influences On
Projects
 Projects are typically part of an organization that is
larger than the project.
 Even when the project is external, the project will still
be influenced by the organization (s) that initiated it.
 The maturity of the organization with respect to its PM
system, culture, style, organizational structure and
project management office can also influence the
project.
Organizational Systems
 Project-based organizations are those whose operations
consist primarily of projects:
 Organizations that derive their revenue primarily from
performing projects for others under contract
 Engineering firms, consultants and contractors.
 Organizations that have adopted management by
projects.
 Non-project-based organizations often may lack
management systems designed to support project needs
efficiently and effectively.
Organizational Cultures and
Styles
 Most organizations have developed unique and
describable cultures.
 These cultures are reflected in numerous factors,
including, but not limited to:
 – Shared values, norms, beliefs, and expectations
 – Policies and procedures
 – View of authority relationships
 – Work ethic and work hours.
Brain Storming Exercise
 How can organizational culture and style influence - project?

Organization Structures
 Simple (Organic).
 Functional Organization.
 Multi - divisional
 Project Oriented (Composite, hybrid).
 Matrix Organization
 Weak Matrix Organization.
 Balanced Matrix Organization.
 Strong Matrix Organization.
 Virtual
 PMO
Functional Organization
 Specialists grouped by function
 • Difficult to cross functional lines
 • Barriers exist on horizontal information flow
 • Functional emphasis – loyalties may impede

completion
 Impede = ‫إعاقة‬
Functional Organization
CEO
Project Coordination
Functional Functional Functional
Manager Manager Manager
Staff Staff Staff Staff
Staff Staff
Project Oriented Organization
 All organization is by projects. The

project manager has total control
of projects. Personnel are assigned
and report to a project manager.
 Emerges from functional when latter impedes progress
 • Line of authority is the PM
 • Uncertainty where to go on completion of project
 • Tendency to retain assigned personnel too long
 • FMs feel threatened as people are removed from their
areas
Project CEO
Coordination
PM PM PM
Staff Staff
Matrix Organization
 This form is an attempt to maximize the strengths and
weaknesses of both the functional and project forms.
 In a strong matrix, power rests with the project
manager.
 In a weak matrix, power rests with the functional
manager.
 In a balanced matrix, the power is shared between the
functional manager and the project manager.
Matrix Organization
 Advantages  Disadvantages
 Visible objectives  More than one boss
 Efficient utilization of  Complex structure to control
resources  Differing priorities of PM
 Better co-ordination and FM
 Better information flow  Duplication of effort
 Retention of home after  Conflict
project
Weak Matrix
CEO

Staff Staff
Project Coordination
Balanced Matrix
CEO

PM Staff Project
Coordination
Strong Matrix
CEO
Functional Functional Manager of
Manager Manager PMs
Staff Staff Staff Staff PM PM
Staff Staff PM
Project
Coordination
Influences on Project Management
Functional Weak Balanced Strong Hybrid,
Matrix Matrix Matrix composite
PM Little or none Limited Low to Moderate to High

Authority moderate high
Resource Little Limited Low to Moderate to High

Availability moderate high
Who control Functional Functional Mixed PM PM

the project Manager Manager
budget
PM Role Part - Time Part - time Full - Time Full - Time Full - Time
Project Part - Time Part - Time Part - Time Full - Time Full - Time
Admin staff
Exercise
Question: You are managing the release of a new drug in the market. Your role
is that of a:

1. Functional Manager, because you have good functional knowledge of
the pharmaceutical industry

2. Project Manager, because you are creating a unique product within
specific time schedules

3. Operations Manager, because you have to do several repetitive tasks

4. Program Manager, because you have to manage several projects to
do your job effectively
Exercise
Question: Your company is responsible for developing an anti-virus software.
You are responsible for managing both the individual product releases and the
coordination of multiple releases. Your role is that of a:

1. Program manager

2. Project manager

3. Functional manager

4. Operations manager
Exercise
Question: You have reached the end of the design phase of your project. You
decide to call a "phase end review" for obtaining authorization to close the
design phase and initiate the next phase (i.e., execution phase) of your project.
Your manager disagrees with your suggestion. He wants a "kill point" to
formally end the design phase of the project. In this context, you should:

1. Disagree with your manager because you know that phase end reviews
should be used at the end of each phase of the project

2. Agree with your manager

3. Escalate this issue to the project sponsor

4. Take advice from a senior project manager about what should actually
be done at the end of each phase of the project
Exercise
Question: You are working in the Project Management Office
(PMO) of your organization. Your job responsibility is to:

1. Manage the operational activities in the company

2. Manage human resource and risk management issues for
individual projects

3. Provide support functions to project managers in the form of
training, providing software, standardizing policies, etc.
 4. Provide subject matter expertise in the functional areas of
the project
Exercise
Question: You are the project manager in a company where you
have maximum authority. To which organizational structure does
your company belong?

1. Functional

2. Weak Matrix

3. Strong Matrix

4. Projectized
Changes in sixth Edition
Changes in sixth Edition
Project Scope Management
Dr. Eng. Ahmed Elshahat, Ph.D, PMP
Project Scope Process group
 1. Plan Scope Management (New in fifth edition)
 2. Collect Requirement
 3. Define Scope
 4. Create WBS ( Work Breakdown Structure)
 5. Validate Scope ( New in fifth edition)
 6. Control Scope.
Product / Project Scope
 Product Scope: The features and functions that
characterize a product, service or result.
 Project Scope: The work performed to deliver a

product, service or result with the specified features
and functions.
 The term project scope is sometimes viewed as
including product scope.
Project Scope
 1. Plan Scope Management:
 The process of creating a scope management
plan that documents how the project scope will
be defined, validated and controlled.
 It provides guidance and direction on how scope will
be managed throughout the project.
Project Scope Management Process
Initiation Planning execution monitor Closing
Plan scope Verify Scope

management
Collect Control
requirement Scope
Define scope
Create WBS
Plan Scope management Process
Plan Scope Management inputs
 1. Project management plan:
 Approved subsidiary plans of the project management
plans are used to influence the approach taken for
planning scope.
 2. Project Charter :
 Provide project context, high level project description
and product characteristics.
Plan Scope Management inputs
 Development Approach:
 Agile, Iterative, incremental, predictive.
 Project life cycle discription :
 Provide project context, high level project description
and product characteristics vs. project phases.
Plan scope management Inputs
 Enterprise Environmental Factors:
 Organization’s culture
 Infrastructure
 Personnel administration
 Marketplace condition.
 Organization process assets:
 Policies and procedures
 Historical information and lessons learned.
Plan Scope management T&T
 1. Expert Judgment:
 Inputs received from knowledgeable and experienced
parties, may be group or person.
 2. Meeting:
 Team may attend meetings to develop the scope
management plan.
 Attendees : PM, Sponsor, selected project team,
selected stakeholders.
Plan scope management outputs
 1. Scope management plan:
 It is a component of the project management plan.
 Described how the scope will be defined, developed,
monitored, controlled, and verified.
 Major input into develop project management plan
process.
 1. Scope management plan components:
 Process for preparing project scope statement.
 Process of creation WBS.
 Process of maintaining WBS.
 Process of formal acceptance for the deliverables.
 Process of controlling change requests.
 2. Requirement Management Plan:
 Component of project management plan.
 Defines how the requirements will be analyzed,
documented, and managed.
 Main Components:
 How requirements will be planned, tracked, and
reported.
 Requirements prioritization process.
Project Scope
 3. Define Scope
2. Collect Requirement
 Process of detailing and

documenting the project and
product features and functions
needed to fulfill the stakeholders
needs and expectations.
Collect requirement process
Collect requirements inputs
 1. Scope Management plan.
 2. Requirement Management plan.
 3. Stakeholder Management plan:
 Used to understand stakeholder communication
requirements and the level of stakeholder engagement in
order to assess and adapt to the level of stakeholder
participation in requirements activities.
 4. Project Charter.
 5. Stakeholder Register: captures major requirements and
main expectations stakeholders may have for the project.
Collect requirements T&T
 1. Interviews:
 Formal or informal approach to elicit information from
stakeholders, often conducted on an individual basis
and may include subject matter experts.
 2. Focus Groups:
 Group of stakeholders and subject matter experts,
trainer moderator guide the group into interactive
discussion.
Collect requirement T&T
 3. Facilitated workshops:
 Focused sessions bring cross functional stakeholders together to
define requirement, considered primary technique for quickly
defining cross – functional requirements and reconciling stakeholders
differences,
 Build trust, foster relationships and consensus, issues can be
discovered and resolved quickly,
 Familiar applications: JAD ( Joint application development in
software design, QFD ( quality function deployment )in industry
which used for critical characteristics for new product,
 QFD starts by collecting customer needs ( voice of the customer) and
then sorts, prioritize and set goals for those needs.
Collect Requirements T&T
 4. Group Creativity :
 A. Brainstorming
 B. Nominal group technique ( enhance brainstorming with
voting to rank useful ideas for further brainstorming),
 C. Delphi technique
 D. Idea mind mapping ( ideas generated from individuals
and consolidated into a single map),
 E. Affinity diagram ( allows large number of ideas to be
sorted into groups for review and analysis)
Affinity Diagram
Idea Mind Mapping
 5. Group decision making techniques:
 An assessment process of multiple alternatives with an
expected outcome in the form of future actions resolution, can
be used to generate , classify and prioritize requirements,
include methods like
 1) unanimity ( everyone agree)
 2) majority ( more than 50% support)
 3) Consensus ( majority define course of actions but the
minority agree),
 4) plurality (largest block in a group decides even the majority
is not achieved),
 5) dictatorship ( individual make the decision).
 6. Questionnaire and survey :
 Most appropriate with broad audience, when quickly
turnaround is needed and where statistical analysis is
appropriate.
 7. Observation :
 Helpful when the people that use the product have
difficulty or reluctant to articulate their requirement,
also called job shadowing, participant observer for
uncover or hidden requirements.
Collect requirements T&T
 8. Prototypes :
 Obtaining early feedback by providing a working
model,
 Allows stakeholders to experiment the product more
quickly and less expensive,
 prototypes support the concept of progressive
elaboration because they are used in iterative cycles
of mock-up creation, user experimentation, feedback
generation, and prototype revision.
 9. Benchmarking: ( New in edition 5)
 Comparing actual or planned activities, such as
processes or operations, to those of comparable
organizations to identify best practices.
 10. Context Diagrams: (new in edition 5)
 An example of scope model, depicting the product
scope by showing a business system ( process,
equipment,..) and how people and other systems
interact with it.
Context Diagram
 11. Document Analysis:
 Used to elicit requirements by analyzing existing
documentation and identifying information relevant to
the requirements.
 Documents to be analyzed: business plans, marketing
literature, agreements, RFP, business rules, business
process or interface documentation.
Collect requirement outputs
 1. Requirement documentation:
 Components of requirements documentation can include, but not limited to:
 A. Business requirements, including:
 Business and project objectives for traceability.
 Business rules for the performing organization.
 Guiding principles of the organization.
 B. Stakeholder requirements, including:
 Impacts to other organizations.
 Stakeholder communication and reporting requirements.
 C. Solution requirement, including:
 functional / non functional
 Support training requirements.
 D. Project requirements
 E. Transition requirements.
 F. Requirements assumptions & constraints.
Collect requirements outputs
 2. Requirements Traceability Matrix:
Collect requirements outputs
 Requirement Traceability Matrix (contd):
 Includes but not limited to:
 Business needs, opportunities, goals, and objectives.
 Project Objectives.
 Project scope / WBS deliverables.
 Product design
 Product development.
 Test strategy and test scenarios
 High – level requirements.
Project Scope
 3. Define Scope
3. Define Scope
 Process of developing a
detailed description of the
project and the product.
Project Scope
 3. Define Scope:
 The process of developing a detailed description of the project and
product.
 During planning, the project scope is defined and described with
greater specificity as more information about the project is known.
 Existing risks, assumptions, and constraints are analyzed for
completeness, additional risks, assumptions and constraints are added
as necessary.
 Main output of define scope process is “ Project Scope statement”
 Project scope statement : describes, in detail, the project’s
deliverables and the work required to create those deliverables.
3. Define Scope Process
Define Scope T&T
 1. Expert Judgment
 2. Product Analysis :
 Product breakdown, System analysis, system
engineering, value engineering, value analysis and
functional analysis.
 Value analysis and value engineering help to know
how to complete the project at a lower budget
without any change in the scope.
Define Scope T&T
 3. Alternative identification :
 Technique used to generate different approaches to
execute and perform the work of the project.
 The most common approaches are : lateral thinking (
solving problem through an indirect & creative
approach using reasoning that is not immediately
obvious),
 Brainstorming.
Define Scope Outputs
 1. Project scope statement.
 2. Project documents update:
 Stakeholder register.
 Requirement documentation
 Requirement traceability matrix.
Project Scope
 3. Define Scope
4. Create WBS
 The process of subdividing project deliverables and project

work into smaller, more manageable components.
 WBS is deliverable oriented hierarchical decomposition of
the work to be executes by the project team, to
accomplish the project objectives and create the required
deliverables.
 WBS organize and defines the total scope of the project.
Create WBS process
Decomposition
 Technique used for dividing and subdividing the project
scope and project deliverables into smaller more
manageable parts.
 Decomposition of the total project work into work
package generally involves the following:
 Identifying and analyzing the deliverables.
 Structuring and organizing the WBS.
 Decomposing the upper WBS levels into lower detailed
WBS components.
 Developing and assigning identification codes to WBS
components.
Charter VS Scope statement
WBS Example
WBS Example
WBS Example
WBS Guidance
 The WBS can be created in a number of forms, such as:
1. Using phases of the project life cycle as the first level of
decomposition, with the product and project deliverables
inserted at the second level.
2. Using major deliverables as the first level of decomposition.
3. Using subprojects which may be developed by organizations
outside the project team, such as contracted work.
Exercise - 1
 Each attendee is to draw 3 levels WBS for

any project submitted.
Project Scope
 3. Define Scope
5. Validate Scope
 Process of formalizing acceptance of the completed
project deliverables.
 The key benefit is that it brings objectivity to the
acceptance process and increase the chance of final
product acceptance.
Validate Scope Process
Project Scope
 3. Define Scope
6. Control Scope
 The process of monitoring the status of the project and

product scope and managing changes to the scope
baseline.
 Controlling the scope ensures all requested changes
are processes.
 Change is inevitable.
 Uncontrolled changes might lead to project failure.
Control Scope Processes
Variance analysis
 Variance analysis: project performance measurement
are used to assess the magnitude of variation to the
original scope baseline,
 Important aspects to determine the cause of variation
relative to scope baseline and deciding whether
corrective action is required.
Project Time Management
6th Edition Changes in Schedule Management
 1. Plan Schedule Management
 2. Define Activities
 3. Sequence Activities
 4. Estimate Activity Durations
 5. Develop Schedule
 6. Control Schedule
1. Plan Schedule Management
 The process of establishing the policies, procedures,

and documentation for planning, developing,
managing, executing, and controlling the project
schedule
Plan Schedule Management ITTO
Plan Schedule Management Inputs
 1. Project management plan:
 The project management plan contains information used
to develop the schedule management plan which includes,
but is not limited to:
 Scope baseline. The scope baseline includes the project
scope statement and the work breakdown
structure (WBS) details used for defining activities,
duration estimation, and schedule management;
 Other information. Other scheduling related cost, risk,
and communications decisions from the project
management plan are used to develop the schedule.
Plan Schedule Management Inputs
 2. Project Charter:
 The project charter defines the
summary milestone schedule and
project approval requirements that will
influence the management of the
project schedule.
Project Schedule Management Inputs
 3. Enterprise Environmental Factors:
 Organizational culture and structure can all influence
schedule management;
 Resource availability and skills that may influence
schedule planning;
 Project management software provides the scheduling tool
and alternative possibilities for managing the schedule;
 Published commercial information, such as resource
productivity information, is often available from
commercial databases that track; and
 Organizational work authorization systems.
Inputs
 4. Organization Process Assets:
 Monitoring and reporting tools to be used;
 Historical information;
 Schedule control tools;
 Existing formal and informal schedule control related policies,
procedures, and guidelines;
 Templates;
 Project closure guidelines;
 Change control procedures;
 Risk control procedures including risk categories, probability
definition and impact, and probability and impact matrix.
Tools & Techniques.
 1. Expert judgment:
 Judgment based upon expertise in an application area,
Knowledge Area, discipline, industry, etc.
 2. Analytical Techniques:
 Scheduling methodology, scheduling tools and techniques,
estimating approaches, formats, and project management
software.
 3. Meeting
 Participants at these meetings may include the project
manager, the project sponsor, selected project team members,
selected stakeholders, anyone with responsibility for schedule
planning or execution, and others as needed.
Project Schedule Management Outputs
 1. Schedule Management Plan:

 A component of the project management plan that
establishes the criteria and the activities for
developing, monitoring, and controlling the schedule.
 The schedule management plan may be formal or
informal, highly detailed or broadly framed, based
upon the needs of the project, and includes
appropriate control thresholds.
Project schedule Mgmt.
Project schedule Mgmt
The schedule management plan can establish the following:
 1. Project schedule model development. The scheduling
methodology and the scheduling tool to be used in the
development of the project schedule model are specified.
 2. level of accuracy
 3. Units of measure : hours / days / weeks.
 4. Control Thresholds.
 5. Reporting Formats
2. Define Activities
 Define Activities is the process of

identifying and documenting the
specific actions to be performed to
produce the project deliverables
Define Activities ITTO
Tools & Techniques
 1. Decomposition:
 Decomposition is a technique used for dividing and
subdividing the project scope and project deliverables
into smaller, more manageable parts. Activities
represent the effort needed to complete a work
package.
 The Define activities process defines the final outputs
as activities rather than deliverables
Tools & Techniques
 2. Rolling wave planning:
 Rolling wave planning is an iterative planning
technique in which the work to be accomplished in the
near term is planned in detail, while the work in the
future is planned at a higher level.
 It is a form of progressive elaboration
Define Activities Outputs
 1. Activity List:
 The activity list is a comprehensive list that includes all
schedule activities required on the project.
 The activity list also includes the activity identifier and
a scope of work description for each activity in
sufficient detail to ensure that project team members
understand what work is required to be completed.
Outputs
 2. Activity Attributes:
 Activity attributes extend the description of the activity by
identifying the multiple components associated with each
activity.
 Activity attributes can be used to identify the person
responsible for executing the work, geographic area, or
place where the work has to be performed, the project
calendar the activity is assigned to, and activity type such
as level of effort (often abbreviated as LOE), discrete
effort, and apportioned effort.
Outputs
 3. Milestone List:
 A milestone is a significant point or event in a
project
 Milestone can be optional or mandatory by the
contract.
 Milestone has zero duration.
3. Sequence Activities
 Sequence Activities is the process

of identifying and documenting
relationships among the project
activities.
Sequence Activities ITTO
Tools & Techniques
 1. PDM ( Preceding diagramming method):
 Activity-on-node (AON) is one method of representing a
precedence diagram. This is the method used by most
project management software packages.
 PDM includes four types of dependencies or logical
relationships.
 A predecessor activity is an activity that logically comes
before a dependent activity in a schedule.
 A successor activity is a dependent activity that logically
comes after another activity in a schedule.
PDM Dependency Relationship Types
 1.Finish-to-start (FS). The awards
ceremony (successor) cannot start until
the race (predecessor) has finished.
 2. Finish-to-finish (FF). Writing a
document (predecessor) is required to
finish before editing the document
(successor) can finish.
 3. Start - to – finish. The first security
guard shift (successor) cannot finish
until the second security guard shift
(predecessor) starts.
 4. Start – to – start. Level concrete
(successor) cannot begin until pour
foundation (predecessor) begins.
Exercise 1
 Solve the attached exercise.
Tools & Techniques
 2. Dependency Determination:
 A. Mandatory dependencies. Mandatory dependencies are those that
are legally or contractually required or inherent in the nature of the
work.
 B. Discretionary dependencies. Discretionary dependencies are
sometimes referred to as preferred logic, preferential logic, or soft
logic.
 C. External dependencies. External dependencies involve a relationship
between project activities and non-project activities. These
dependencies are usually outside the project team’s control. For
example, the testing activity in a software project.
 D. Internal dependencies. Internal dependencies involve a precedence
relationship between project activities and are generally inside the
project team’s control. For example, if the team cannot test a machine
until they assemble it.
Tools & Techniques
 3. Applying Leads or
Lags:
 A lead is the amount of time
whereby a successor activity can
be advanced with respect to a
predecessor activity.
 A lag is the amount of time
whereby a successor activity will
be delayed with respect to a
predecessor activity.
Sequence Activities outputs
 1. Project Schedule
Network Diagrams:
 A project schedule
network diagram is a
graphical representation
of the logical
relationships, also
referred to as
dependencies, among the
project schedule
activities.
Outputs
 2. Project document updates:
 Documents to be updated like,
 Activity lists,
 Activity attributes,
 Milestone list, and
 Risk register.
5.Estimate Activity Durations
 Estimate Activity Durations is the

process of estimating the number of
work periods needed to complete
individual activities with estimated
resources.
Estimate Activity Durations ITTO
Tools & Techniques
 1. Expert Judgment.
 2. Analogous Estimating:
 Analogous estimating is a technique for estimating the
duration or cost of an activity or a project using historical
data from a similar activity or project.
 Analogous duration estimating is frequently used to estimate
project duration when there is a limited amount of detailed
information about the project.
 Analogous estimating is generally less costly and less time
consuming than other techniques, but it is also less accurate.
 Analogous estimating is most reliable when the previous
activities are similar in fact and not just in appearance.
Tools & Techniques
 3. Parametric Estimating:
 Parametric estimating uses a statistical relationship
between historical data and other variables (e.g.,
square footage in construction) to calculate an
estimate for activity parameters, such as cost, budget,
and duration.
 Activity durations can be quantitatively determined by
multiplying the quantity of work to be performed by
labor hours per unit of work.
Tools & Techniques
 4. Three-Point Estimating:
 The accuracy of single-point activity duration estimates may be improved by
considering estimation uncertainty and risk.
 This concept originated with the program evaluation and review technique (PERT).
PERT uses three estimates to define an approximate range for an activity’s duration:
 Most likely (tM).
 Optimistic (tO).
 Pessimistic (tP)
 Depending on the assumed distribution of values within the range of the three
estimates the expected duration, tE, can be calculated using a formula. Two commonly
used formulas are triangular and beta distributions. The formulas are:
 • Triangular Distribution. tE = (tO + tM + tP) / 3
 • Beta Distribution (from the traditional PERT technique). tE = (tO + 4tM + tP) / 6
Exercise 2
 Solve the attached problems.

Tools & Techniques
 5. Group Decision-Making Techniques:
 such as brainstorming, the Delphi or nominal group techniques, are
useful for engaging team members to improve estimate accuracy and
commitment to the emerging estimates.
 6. Reserve Analysis:
 Duration estimates may include contingency reserves, sometimes
referred to as time reserves or buffers, into the project schedule to
account for schedule uncertainty. Contingency reserves are the
estimated duration within the schedule baseline, which is allocated for
identified risks that are accepted and for which contingent or
mitigation responses are developed. Contingency reserves are
associated with the “known-unknowns,” which may be estimated to
account for this unknown amount of rework.
Estimate Activity Durations: Outputs
 1. Activity Duration Estimates:
 Activity duration estimates are quantitative assessments
of the likely number of time periods that are required to
complete an activity, For example:
 2 weeks +/― 2 days, which indicates that the activity
will take at least eight days and not more than twelve
(assuming a five-day workweek).
 15 % probability of exceeding three weeks, which
indicates a high probability—85 %—that the activity
will take three weeks or less.
 2. Project document update.
6. Develop Schedule
 Develop Schedule is the process of

analyzing activity sequences, durations,
resource requirements, and schedule
constraints to create the project
schedule model.
Develop Schedule ITTO
Tools & Techniques
 1. Schedule Network Analysis:
 Schedule network analysis is a technique that
generates the project schedule model.
 It employs various analytical techniques, such as
critical path method, critical chain method, what-if
analysis, and resource optimization techniques to
calculate the early and late start and finish dates for
the uncompleted portions of project activities.
Tools & Techniques
 2. Critical Path Method, CPM:
 Method used to estimate the minimum project
duration and determine the amount of scheduling
flexibility on the logical network paths within the
schedule model.
 This schedule network analysis technique calculates the
early start, early finish, late start, and late finish
dates for all activities without regard for any resource
limitations by performing a forward and backward
pass analysis through the schedule network.
CPM
 The resulting early and late start and finish dates are
not necessarily the project schedule.
 “Total Float.”: the amount of time that a schedule
activity can be delayed or extended from its early
start date without delaying the project finish date.
 A CPM critical path is normally characterized by zero
total float on the critical path.
CPM
 Critical paths may have positive, zero, or negative total
float depending on constraints applied.
 Free Float : the amount of time that a schedule activity
can be delayed without delaying the early start date of
any successor.
 Positive total float is caused when the backward pass is
calculated from a schedule constraint that is later than the
early finish date that has been calculated during forward
pass calculation.
 Negative total float is caused when a constraint on the
late dates is violated by duration and logic.
+/- Slack & Reserve
Reserve Negative
Time Slack
Forward
Pass
A B
Backward
Pass
Start Project Due

Date Date
CPM
St. Adolf’s Hospital
(A sample project)
Immediate
Activity Description Predecessor(s) Activity Time (Wks)
A Select administrative and medical staff. — 12

B Select site and do site survey. — 9
C Select equipment. A 10
D Prepare final construction plans & layout. B 10
E Bring utilities to the site. B 24
F Interview applicants and fill positions in A 10
nursing, support staff, maintenance,
and security.
G Purchase and take delivery of equipment. C 35
H Construct the hospital. D 40
I Develop an information system. A 15
J Install the equipment. E,G,H 4
K Train nurses and support staff. F,I,J 6
Calculate the TF and FF for each activity.
Diagramming the Network
Activity Times
(wks)
Immediate I
Predecessors
A – 12 A F K
B – 9
C A 10
D B 10 Start C G Finish
E B 24
F A 10
G C 35 B D H J
H D 40
I A 15
J E,G,H 4 E
K F,I,J 6
Activity Paths
I
Paths are sequences of activities
between a project’s start and finish.
A F K
Path Time (wks)

Start C G Finish
A-I-K 33
A-F-K 28
B D H J
A-C-G-J-K 67
B-D-H-J-K 69
B-E-J-K 43
E
St. Adolf’s Critical Path
The longest path is the critical path!
I
Path Time (wks) A F K
A-I-K 33
A-F-K 28 Start C G Finish
A-C-G-J-K 67
B-D-H-J-K 69
B-E-J-K 43 B D H J
Project Expected
Time is 69 wks. E
Earliest Start and Earliest Finish Times
12
I 27
Earliest start time

15 Earliest finish time
A 12 K
0 12 F 22 63 69
12 10 6
12
C 22 22
G 57
Start Finish
10 35
0
B 9 9
D 19 19
H 59 59
J 63
9 10 40 4
9 E 33
24
Earliest Start and Earliest Finish Times
Path Time (wks)
12
I 27 The Critical Path takes
A-I-K33 15 69 weeks
A-F-K28
A-C-G-J-K 67
A K
B-D-H-J-K 69 0 12 12 F 22 63 69
B-E-J-K 43 12 10 6
12
C 22 22
G 57
Start Finish
10 35
0
B 9 9
D 19 19
H 59 59
J 63
Critical Path
9 10 40 4
9 E 33
24
Latest Start and Latest Finish Times
(You start with the last activity and work toward the first activity)
12
I 27
48 15 63
A K
0 12 12 F 22 Latest 63 69 Latest
2 12 14 53 10 63 start 63 6 69
finish
time time
C
12 22 22 G 57
Start Finish
14 10 24 24 59
35
0
B 9 9
D 19 19
H 59 59
J 63
0 9 9 9 10 19 19 40 59 59 4 63
9 E 33
35 24 59
© 2012 Lew Hofmann

Node Duration ES LS Slack
Slack is the difference between LS
A 12 0 2 2 and ES or EF and LF
B 9 0 0 0
C 10 12 14 2
12
I 27
D 10 9 9 0
E 24 9 35 26 48 15 63
F 10 12 53 41
G 35 22 24 2
A K
H 40 19 19 0 0 12 12 F 22 63 69
I 15 12 48 36 2 12 14 53 10 63 63 6 69
J 4 59 59 0
K 6 63 63 0
C
12 22 22 G 57
Start Finish
14 10 24 24 59
35
0
B 9 9
D 19 19
H 59 59
J 63
Activity Slack 0 9 9 9 10 19 19 40 59 59 4 63
Analysis
9 E 33
35 24 59
Tools & Techniques
 3. Critical Chain Method : CCM
 The critical chain method (CCM) is a schedule method
that allows the project team to place buffers on any
project schedule path to account for limited resources
and project uncertainties.
 The critical chain method uses activities with durations
that do not include safety margins, logical
relationships.
 The resource-constrained critical path is known as the
critical chain.
CCM
 Project buffer: One buffer, placed at the end of the
critical chain protects the target finish date from
slippage along the critical chain.
 Feeding buffers: are placed at each point where a
chain of dependent activities that are not on the
critical chain feeds into the critical chain.
 The size of each buffer should account for the
uncertainty in the duration of the chain of dependent
activities leading up to that buffer
CCM
Tools & Techniques
 4. Resource Optimization Techniques:
 A) Resource Leveling:
 A technique in which start and finish dates are
adjusted based on resource constraints with the goal
of balancing demand for resources with the available
supply
 Resource leveling can be used when shared or
critically required resources are only available at
certain times, or in limited quantities.
Resource Leveling
Tools & Techniques
 4. Resource Optimization Techniques:
 B) Resource Smoothing:
 A technique that adjusts the activities of a schedule
model such that the requirements for resources on the
project do not exceed certain predefined resource
limits.
Differences between Leveling &
Smoothing
Leveling Smoothing
Mainly for availability of Mainly for resource usage
critical resources.
Allocation of critical skills Allocation of number of
among activities workers.
Qualitative Quantitative
Complicated technical Regular performed projects
projects
Tools & Techniques
 5. Modeling Techniques:
 A) What if scenario Analysis:
 This is an analysis of the question, “What if the
situation represented by scenario ‘X’ happens?”
 A schedule network analysis is performed using the
schedule to compute the different scenarios, such as
delaying a major component delivery, extending
specific engineering durations, or introducing external
factors, such as a strike or a change in the permitting
process.
Tools & Techniques
 5. Modeling Techniques:
 B) Simulation:
 Simulation involves calculating multiple project
durations with different sets of activity assumptions,
usually using probability distributions constructed
from the three-point estimates.
Tools & Techniques
 6. Leads & Lags:
 7. Schedule Compression:
 A) Crashing : A technique used to shorten the
schedule duration for the least incremental cost by
adding resources.
 Examples of crashing include approving overtime,
bringing in additional resources, or paying to
expedite delivery to activities on the critical path
 Crashing works only for activities on the critical path
Crashing Steps
 Step 1 – Calculate the critical path and list all critical
activities and the float of other paths. Calculate
direct and indirect costs.
 Step 2 – Exclude critical activities, which can not be
crashed due to technical reasons.
 Step 3 – Rank the list of critical activities according
to its cost slope ( cost of crashing unit time)
Crashing Steps
 Step 4 – Crash the activity with the least cost slope (
from the list in step 3) until the total float of any of
the parallel paths first consumed. Calculate direct and
indirect costs for this case.
 Step 5 – Recalculate the critical path and apply step
1 to step 4 until all possible crashing is done.
 Step 6 – Plot the different project durations and the
associated costs and determine the optimum crashed
project duration.
Crashing Quiz
Activity Dependency Normal Crash Normal Crash Cost
Duration Duration cost $ $
Days days
A ------ 6 4 6000 8000
B A 4 3 5000 5750
C ----- 8 7 8000 8500
D B&C 6 5 6000 8000
Which activity would you crash if your project budget was only $27000? What is
the new project duration?
Normal Time & Cost
Normal:
1 Duration = 16
1 6 7
0 days
A B Cost = 25,000$
du=6 du=4
1 1
6 7
0
Start
1 1
1 8
1 6
C D
Finish
du=8 6
1 1
3
0 6
First Run
Activity Dependency Normal Crash Normal Crash Cost Cost slope Rank
Duration Duration cost $ $
Days days
A ------ 6 4 6000 8000 1000/d 2
B A 4 3 5000 5750 750 /d 1
C --Non critical- 8 7 8000 8500 500/d

--
D B&C 6 5 6000 8000 2000/d 3
First Compression
• (B) reduced 1
1 5 6 8 day at 750 $
• (A) reduced 1
A B day at
du=5 Du=3 1000$
1 6 7 8 • Crashed (1):
• Duration =
Start
1 14 days
1 8 9 • Cost =
4
C D 26750
Finish
du=8 6
1 1
3 9
0 4
Tools & Techniques
 7. Schedule Compression:
 B) Fast Tracking:
 A schedule compression technique in which activities or
phases normally done in sequence are performed in
parallel for at least a portion of their duration.
 An example is constructing the foundation for a building
before completing all of the architectural drawings.
 Fast tracking may result in rework and increased risk.
 Fast tracking only works if activities can be overlapped to
shorten the project duration.
Outputs
 1. Schedule Baseline:
 A schedule baseline is the approved version of a
schedule model that can be changed only through
formal change control procedures and is used as a
basis for comparison to actual results.
 It is accepted and approved by the appropriate
stakeholders as the schedule baseline with baseline
start dates and baseline finish dates.
Outputs
 2. Project Schedule:
 The project schedule presentation may be presented in
summary form, sometimes referred to as the master
schedule or milestone schedule, or presented in detail.
 Examples:
 A) Bar Charts
 B) Milestone Charts
 C) Schedule network diagram.
Milestone chart
for high level presentation
Bar Chart
For Management Presentation
Detailed Schedule for Project Team
Outputs
 3. Schedule Data:
 Resource requirements by time period, often in the
form of a resource histogram;
 Alternative schedules, such as best-case or worst-case,
not resource-leveled, or resource-leveled, with or
without imposed dates; and
 Scheduling of contingency reserves.
outputs
 4. Project Calendars:
 A project calendar identifies working days and shifts
that are available for scheduled activities.
 5. Project Management Plan Updates
 6. Project Documents Updates
7. Control Schedule
 Control Schedule is the process of monitoring the
status of project activities to update project progress
and manage changes to the schedule baseline to
achieve the plan.
 Schedule control is concerned with:
 Determining the current status of the project
schedule.
 Influencing the factors that create schedule changes.
 Managing the actual changes as they occur.
Control Schedule ITTO
Control Schedule Inputs
Source Inputs
Develop PM Plan ( PM plan
Integration)
Develop Schedule Project Schedule
Direct and manage project Work performance data
execution ( Integration)
Develop schedule Project calendars
Develop schedule Schedule data
OPA OPA
Control Schedule outputs’ Targets
Output Target
1. Work performance information 1. Perform quality control (
Quality)
2. Report performance (
Communication)
2. Change requests 2. Perform integrated change
control ( Integration)
3. Schedule forecast 3. Monitor and control project
work ( Integration)
4. Project documents 4. Project documents update
5. OPA 5. OPA
Project cost Management
Project Cost Management
 Project Cost Management includes the processes
involved in planning, estimating, budgeting, financing,
funding, managing, and controlling costs so that the
project can be completed within the approved budget.
 Project Cost Management should consider the
stakeholder requirements for managing costs.
 Different stakeholders will measure project costs in
different ways and at different times
 Project Cost Management is primarily concerned
with the cost of the resources needed to
complete project activities.
 In many organizations, predicting and analyzing
the prospective financial performance of the
project’s product is performed outside of the
project.
Project Cost Management vs. process groups
Planning Monitoring & Control
Plan Cost management Control Costs.
Estimate costs
Determine Budget
 1. Plan Cost Management

 2. Estimate Costs
 3. Determine Budget
 4. Control Costs
Plan Cost Management
 Plan Cost Management is the process

that establishes the policies,
procedures, and documentation for
planning, managing, expending, and
controlling project costs.
Plan Cost Management ITTO
Plan Cost Management Inputs Sources
Sources Plan cost management inputs
1. Develop PM Plan ( 1. Project management plan

Integration)
2. Develop project charter ( 2. Project Charter
Integration)
3. Organization Enterprise 3. EEF
4. Organization Process. 4. OPA

Plan Cost Management Outputs as sources
1. Cost Management plan 1. Identify Risks ( Risk

Management)
2. Perform Quantitative Risk

Analysis ( Risk
Management).
Cost Management Plan
 The cost management plan is a component of the
project management plan and describes how the
project costs will be planned, structured, and
controlled. The cost management processes and their
associated tools and techniques are documented in the
cost management plan.
Cost Management Plan Major Contents
 Units of measure.(such as staff hours, staff days,

weeks for time measures; or meters, liters, tons,
kilometers)
 Control thresholds.
 Level of accuracy. ( ROM / Budgetary / Definitive)
 Reporting formats.
 Level of precision.
Precision and Accuracy ‫الدقة و المقاربة‬
 Precision is consistency that the value of repeated

measurements are clustered and have little scatter.
 Accuracy is correctness that the measured value is very close to
the true value.
 Precise measurements are not necessarily accurate.
 A very accurate measurement is not necessarily precise.
 The project management team must determine how much
accuracy or precision or both are required.
Estimate Costs
 Estimate Costs is the process of

developing an approximation of
the monetary resources needed to
complete project activities.
Estimate Costs ITTO
Estimate Costs Inputs Sources
Sources Estimate Costs Inputs
1. Plan Cost management ( 1. Cost management plan
Cost)
2. Plan HR ( Project HR 2. HR Plan
Management)
3. Create WBS ( Scope) 3. Scope baseline
4. Develop Schedule ( Time) 4. Project Schedule
5. Identify Risk ( Risk 5. Risk Register
Management)
Estimate Cost Outputs as Sources
Outputs Sources To
1. Activity Cost estimates 1. Estimate Activity
Resources ( Time)
2. Identify Risks ( Risk)
3. Determine Budget
4. Plan Procurement
management ( Procurement)
2. Basis of estimates 1. Determine Budget
Estimate Costs T & T
 2. Analogous Estimating : Used to estimate total
project costs if there is a limited amount of detailed
information ( Top – Down approach).
 3. Parametric Estimating : using project parameters in
a statistical model to predict costs ( e.g. price per
square meter)
Estimate Costs T&T
 4. Bottom – up estimating : Estimate the cost of
individual work items and then rolling up the costs to
arrive at a project total cost.
 5. Three Point Estimates: using PERT,
- Most likely (Cm)

- Optimistic ( C0)
- Pessimistic ( CP)
Expected Cost (Ce) = (Co + 4Cm +Cp) / 6
Analogous Estimating
Advantages Dis – adv.
1. Quick 1. Less accurate
2. Activities need not to be 2. Estimates has limited
identified amount of details.
3. Less costly 3. Requires experience to do
well.
4. Gives the PM an idea of 4. Extremely difficult with
the level of management ‘s projects of uncertainty.
expectations.
Bottom – Up Estimating
Adv. Dis – adv.
1. More accurate 1. Takes time and cost.
2. Gain buy – in from the 2. Require full understanding
team before the work begins.
3. Based on detailed 3. Requires time to break
analysis of the project. the project down into smaller
pieces.
4. Provide basis for
monitoring and controlling.
Estimate Costs T&T
 6. Reserve analysis
 7. Cost of Quality
 8. Vendor Bid Analysis:
Estimates based on the responsive bids

from qualified vendors.
Estimate Costs Outputs
 1. Activity Cost Estimates:
 Quantitative assessments of the cost of resources (
e.g., monetary units of staff hours.
 This includes direct labor, materials, equipment,
facilities, IT, and special categories such as inflation
allowances or a cost contingency reserves.
 Indirect costs: like Renting, Overheads.
Estimate Costs Outputs
 2. Basis of Estimates:
 Basis of estimates ( i.e., how it was developed)
 All assumptions made.
 Range of possible estimates ( e.g., $10,000 (+/-
10%))
 3. Project document updates.

Determine Budget
 Determine Budget is the process of

aggregating the estimated costs of
individual activities or work
packages to establish an
authorized cost baseline.
Determine Budget ITTO
Determine Budget Inputs Sources
Source Inputs
1. Plan cost mgmt. 1. Cost mgmt plan
2. Create WBS ( Scope) 2. Scope baseline
3. Estimate costs 3. Activity cost estimates
4. Basis of estimates
5. Develop Schedule ( Time) 5. Project Schedule
6. Identify Risk ( Risk) 6. Risk Register
7. Conduct Procurement ( 7. Agreements
Procurement)
Determine Budget outputs as sources
Outputs Sources to
1. Cost baseline 1. Develop PM plan.
2. Project funding 2. Control costs
requirements
1. Cost Aggregation
Determine Budget T & T
 2.Reserve Analysis.
 Contingency reserves : are allowances for unplanned
but potentially required changes that can result from
realized risks identified in the risk register as ( “
Known unknown”) part of cost baseline.
 Management reserves : are budget reserved for
unplanned changes to project scope and cost ( “
unknown - unknown”).
Determine Budget T & T
 4. Historical relationships.
 5. Funding limit reconciliation:
 The expenditure of funds should be reconciled with any
funding limits on the commitment of funds for the project.
 A variance between the funding limits and the planned
expenditures will sometimes necessitate the rescheduling
of work to level out the rate of expenditures.
 This is accomplished by placing imposed date constraints
for work into the project schedule.
Determine Budget Outputs
 Cost Performance Baseline:
 Is an authorized time – phased budget used to
measure, monitor, and control overall cost
performance on the project. ( called S curve)
Funding
Cumulative Costs
Requirement
Cost
Baseline
Expenditure
Time
Variance
Project Budget Components
Determine budget - outputs
 2. Project Funding Requirements:
 The cost baseline will include projected expenditures
plus anticipated liabilities.
 Funding often occurs in incremental amounts that are
not continuous, which appear as steps.
 The total funds required are those included in the cost
baseline, plus management reserves.
Control Costs
 Control Costs is the process of

monitoring the status of the project to
update the project costs and managing
changes to the cost baseline.
Control Costs Tasks
 Influencing the factors that create changes to the authorized cost baseline;
 Ensuring that all change requests are acted on in a timely manner;
 Managing the actual changes when and as they occur;
 Ensuring that cost expenditures do not exceed the authorized funding by
period, by WBS component, by activity, and in total for the project;
 Monitoring cost performance to isolate and understand variances from the
approved cost baseline;
 Monitoring work performance against funds expended;
 Preventing unapproved changes from being included in the reported cost or
resource usage;
 Informing appropriate stakeholders of all approved changes an associated
cost; and
 Bringing expected cost overruns within acceptable limits.
Control Costs ITTO
Control Costs Inputs’ Sources
Sources Inputs
1. Develop project mgmt 1. Project mgmt plan
plan ( Integration)
2. Determine budget ( Cost 2. Project funding
Mgmt) requirements
3. Direct and manage 3. Work performance
project execution ( information
integration)
Control Costs outputs’ Targets
Outputs Targets
1. Work performance 1. Monitor & control project
information work ( Integration)
2. Cost forecasts
3. Change requests 2. Perform Integrated
change control (
Integration)
4. PM plan updates. 4. PM plan.
5. Project document 5. Project documents
updates.
Control Costs T & T
 1. Earned Value management ( EVM):
 EVM in its various forms is a commonly
used method of performance measurement.
 It integrates project scope, cost, and
schedule measures to help the project

management team assess and measure
project performance and progress.
EVM Common Terms
 EVM common terms:
 EV : Earned value = Budget cost of work performed
 PV : Planned value = Budget cost of work scheduled.
 AC : Actual cost = Actual cost of work performed.
 SV : Schedule Variance = EV - PV
 CV : Cost Variance = EV – AC
 BAC : Budget at Completion
 EAC : Estimate at Completion : the management
assessment of the cost of the project at completion.
 ETC : Estimate to Complete
EVM
EV
Formulas & Descriptions
Estimate To Complete is a prediction of how much more money

the project will cost to complete.
Formulas & descriptions
Performance Indices
 Cost Performance Index: CPI = Cost performance efficiency.
 CPI = EV / AC
 Schedule Performance Index : SPI = Schedule performance
efficiency.
 SPI = EV / PV
 To complete performance Index : TCPI = work remaining /
cost remaining.
 TCPI = BAC – EV / BAC – AC
 TCPI based on EAC = BAC – EV / EAC - AC
Exercise
Calculate CV, SV, CPI, SPI, TCPI.
200
BAC
150
100 AC =
90
90 PV = 75
75
50 EV = 50
J A S O N D J F
Financial Indicators Guiding
Performanc SV & SPI
e Measures
> 0 & > 1.0 = 0 & = 1.0 < 0 & < 1.0
>0 Ahead of Schedule On Schedule Behind
& >1 Under Budget Under Budget Schedule,
Under Budget
CV =0 Ahead of Schedule On Schedule Behind
& =1 On Budget On Budget Schedule
CPI On Budget
<0 Ahead of Schedule On Schedule Behind
& < Over Budget Over Budget Schedule
1 Over Budget
New Approach. ( Earned Schedule)
Project Selection financial basis
 1. Life cycle costing.

 2. Present Value.
 3. Benefit / Cost Ratio ( BCR)
 4. IRR ( Internal Rate of Return)
 5. Payback Period.
Project Selection
 1. Life cycle costing:
 The direct & indirect costs + periodic or continuing
costs of operations and maintenance.
 Direct costs : Raw material, manpower.
 Indirect costs : Renting, management overhead.
 Committee will recommend the lower life cycle cost
project.
Project Selection
 2. Present Value:
 Present value : Today’s value of future money.
 Future Value : Future value of today’s money
 Net present value (NPV) = (Present value of all cash inflows) –
( Present value of cash outflaws).
 PV = Fv / (1+i)n
 Where n : the number of years.
 I : Interest rate.
 Committee will recommend projects with high NPV.
Project Selection
 3. Benefit / Cost Ratio (BCR):
 Expected revenue / estimated cost.
 Committee will recommend projects with high BCR.
 4. IRR ( Internal rate of return)
 The discount rate at which the project cost and
outcome are the same.
 The discount rate : the interest rate.
 Committee will recommend the project with high IRR.
Project Selection
 5. Payback Period:
 The number of time units it takes to
recover your investment in the project
before you start accumulating the profit.
 Committee will recommend the shorter
payback period.
Quiz
In your project, if the benefit cost ratio is greater than 1, it means that
1. The ratio of profits to cost is greater than 1.
2. The ratio of revenue to cost is greater than 1.
3. You should select this project from all other competing alternatives.
4. You should not select this project from all other competing alternatives.
Quiz
There are two projects:
Investment in project A is $ 1,000,000 and its NPV is $ 100,000
Investment in project B is $ 1,200,000, its net cash inflows are $ 2,000,000, and net cash
outflows are $ 1,900,000
Which project should be selected if net present value(NPV) criterion is used for selection?
1. Project A
2. Project B
3. The information in the question is inadequate
4. Either project A or project B

Quiz
Your company primarily uses benefit cost ratio as a project selection criterion. All the
following statements related to benefit cost ratio (BCR) are correct EXCEPT:
1. Projects with BCR > 1 should be considered for selection
2. BCR is the ratio of payback to costs
3. If two projects have positive BCR, select the project with higher BCR
4. For any project, benefits = profits

Project Quality Management
Project Management
& Quality Management
 The basic approach to project quality management described in
the PMBOK is intended to be compatible with that of The
International Organization for Standardization (ISO).
 This generalized approach should also be compatible with
proprietary approaches to quality management such as those
recommended by Deming, Juran, Crosby and others,
 It is also compatible with non-proprietary approaches such as
Total Quality Management (TQM), Six Sigma, Failure Mode
and Effect Analysis, Design Reviews, Voice of the Customer,
Cost of Quality (COQ), and Continuous Improvement.
PM and QM Similarities
 Customer satisfaction – Understanding, evaluating, defining,
and managing expectations so that customer requirements are
met.
 Prevention over inspection – The cost of avoiding mistakes is
much less than the cost of correcting them
 Management responsibility – Success requires participation of
all members of the team, but it is the responsibility of
management to provide resources needed
 Continuous Improvement – Plan/Do/Check/Act cycle
PM and QM Differences?
 Focus – QM systems focus on the entire organization ,
while Project Quality Management per the PMBOK
Guide focuses on projects.
 Management Responsibility - The project manager has
the ultimate responsibility for the quality of the
product of the project and the Project Management
deliverables, while Senior Management has the
ultimate responsibility for the quality in the
organization as a whole.
W. Edwards Deming
 “ Quality is continuous improvement
through reduced variation.”
 Deming’s Five Principles:
 1. The central problem is the failure of
management to understand variation.
 2. It is management’s responsibility to
know whether the problems are in the
system or in the behavior of the people.
 3. Teamwork should be based on
knowledge, design, re-design. Constant
improvement is management’s
responsibility.
 4. Train people until they are achieving
as much as they can.
 5. It is management’s responsibility to
give detailed specifications.
Philip B. Crosby
 “ Quality is conformance to
requirements”
 The Four Absolutes of Quality
Management:
 1. The definition of quality is
conformance to requirements.
 2. The system of quality is
prevention.
 3. The performance standard is
zero defects.
 4. The measurement of quality is
the price of nonconformance.
Armand V. Feigenbaum
 “ Quality is what the
buyer wants and
needs to satisfy his
or her requirements
for use, not what the
manufacturer wants
(to accommodate
some internal
operating purpose or
need).”
Joseph M. Juran
 “ Quality is fitness
for use”
 The Quality Trilogy:
 • 1. Quality
improvement.
 • 2. Quality planning.
 • 3. Quality control.
Quality and Grade
 Quality is “the degree to which a set of inherent
characteristics fulfill requirements”.
 Grade is a category assigned to products or services
having the same functional use but different technical
characteristics.
 Low quality is always a problem; low grade may not
be.
Precision and Accuracy ‫الدقة و المقاربة‬
 Precision is consistency that the value of repeated

measurements are clustered and have little scatter.
 Accuracy is correctness that the measured value is very close to
the true value.
 Precise measurements are not necessarily accurate.
 A very accurate measurement is not necessarily precise.
 The project management team must determine how much
accuracy or precision or both are required.
Prevention over Inspection
 Prevention: keeping errors out of the

process
 Inspection: keeping errors out of the
hands of the customer.
Prevention costs
 Prevention costs:
 - Quality planning.
 - Quality review and verification of design.
 - Process validation and process control.
 - Quality improvement program.
 - Supplier assurance.
 - Quality training.
 - Quality auditing.
 - Calibration & maintenance of testing equipment.
Prevention Costs
 Appraisal costs:
 Field performance testing.
 Testing of incoming parts and materials.
 Testing at supplier premises.
 Laboratory testing.
 Inspection and testing.
 Calibration & maintenance of testing equipment.
 Material consumed during inspection and testing.
 Analysis & reporting of test and inspection results
Internal Failure costs
 Internal Failure costs:
 Scrap.
 Replacement, rework, and repair.
 Troubleshooting or defect failure analysis.
 Re-inspection and re-testing.
 Fault of supplier.
 Modification permits and concessions.
 Downgrading.
 Downtime.
External Failure costs
 External Failure costs
 Complaints.
 Warrant claims.
 Product rejected and returned.
 Concessions.
 Loss of sales.
 Product recall costs.
 Product liability.
6 th Edition Changes
Project Quality Management
1. Plan Quality management

2. Manage Quality
3. Control Quality

Plan Quality Management
 Plan Quality Management is the process

of identifying quality requirements
and/or standards for the project and its
deliverables, and documenting how the
project will demonstrate compliance with
relevant quality requirements.
Plan Quality ITTO
Sources / Inputs
Source Inputs
Develop PM ( Integration) .1 Project management plan
Identify Stakeholder ( .2 Stakeholder register
Stakeholder mgmt.)
Identify Risks ( Risk) .3 Risk register
Collect requirements ( Scope) .4 Requirements
documentation
EEF & OPA. .5 Enterprise environmental
factors
.6 Organizational process
assets
Outputs / Targets
Outputs Targets
.1 Quality management plan  Perform quality assurance
 Control quality
 Identify risks
.2 Process improvement  Perform quality assurance
plan
.3 Quality metrics  Perform quality assurance
 Control quality
.4 Quality checklists  Control Quality
.5 Project documents Project documents
updates
T&T
 1 Cost-Benefit Analysis:
 The primary benefits of meeting quality requirements
include less rework, higher productivity, lower costs,
increased stakeholder satisfaction, and increased
profitability.
 2 Cost of Quality (COQ)
T&T
Variations in Quality
 Special causes (unusual events) and common
causes (normal process variation). Common
causes are also called random causes.
 Tolerances (the result is acceptable if it falls
within the range specified by the tolerance) and
control limits (the process is in control if the
result falls within the control limits).
Exercise
You are involved in manufacturing ball bearings using lathe machines. The
ball
bearings should have a diameter of 5.0 cms - allowable control limits are
4.95 cms to
5.05 cms. Measurements made after the end of the process for the bearings
produced
are: 4.96, 4.98, 5.01, 5.03, 5.02, 5.01,5.03,5.04, 5.02, 4.96, 4.98, 5.00.
What is your conclusion about the process?
Process is out of control and needs to be investigated
Process is in control and adjustments are not required
The tool needs to be changed or re-calibrated
Process should be further measured using a run chart
Control Charts
Group Exercise
 From the last slide, determine the following:
 1. Upper Control Limit
 2. Lower Control Limit
 3. Upper specification Limit
 4. Lower specification limit
 5. Assignable cause / special cause.
 6. The process is out of control
 7. Rule of seven
 8. Normal distribution curve.
Flowcharting
 Flowcharting helps to analyze how problems occur.
 A flowchart is a graphical representation of a process.
 Process flowcharts show activities, decision points, and the
order of processing. Flowcharts show how various elements of
a system interrelate.
 Flowcharting can help the project team anticipate what and
where quality problems might occur and, thus, can help develop
approaches for dealing with them.
Pareto Chart
 A Pareto chart is a specific type of histogram, ordered
by frequency of occurrence, which shows how many
defects were generated by type or category of
identified cause.
 • The Pareto technique is used primarily to identify
and evaluate nonconformities and guide corrective
action.
 Pareto’s Law – A relatively small number of causes
will typically produce a large majority of the
problems or defects (80/20 rule)
Plan Quality Management: Outputs
 1 Quality Management Plan:
 The quality management plan is a component of the
project management plan that describes how the
organization’s quality policies will be implemented.
 It describes how the project management team plans
to meet the quality requirements set for the project.
 2 Process Improvement Plan
 The process improvement plan details the steps for analyzing project
management and product development processes to identify activities
that enhance their value. Areas to consider include:
 Process boundaries. Describe the purpose of the process, the start and
end of the process, its inputs and outputs, the process owner, and the
stakeholders of the process.
 Process configuration. Provides a graphic depiction of processes, with
interfaces identified, used to facilitate analysis.
 Process metrics. Along with control limits, allows analysis of process
efficiency.
 Targets for improved performance. Guide the process improvement
activities.
 3 Quality Metrics:
 A quality metric specifically describes a project or product
attribute and how the control quality process will measure
it.
 A measurement is an actual value. The tolerance defines
the allowable variations to the metric.
 For example, if the quality objective is to stay within the
approved budget by ― 10%, the specific quality metric
is used to measure the cost of every deliverable and
determine the percent variance from the approved budget
for that deliverable.
 4 Quality Checklists:
 A checklist is a structured tool, usually component-
specific, used to verify that a set of required steps has
been performed. Based on the project’s requirements and
practices, checklists may be simple or complex.
 Many organizations have standardized checklists
available to ensure consistency in frequently performed
tasks.
 Quality checklists should incorporate the acceptance
criteria included in the scope baseline.
 5 Project Documents Updates
2 Perform Quality Assurance
 Perform Quality Assurance is the process of auditing
the quality requirements and the results from quality
control measurements to ensure that appropriate
quality standards and operational definitions are
used.
 In project management, the prevention and inspection
aspects of quality assurance should have a
demonstrable influence on the project. Quality
assurance work will fall under the conformance work
category in the cost of quality framework.
2 Manage Quality
Source / Inputs
Source Inputs
Plan quality .1 Quality management plan
Plan quality . 2 Process improvement

Plan
Plan quality .3 Quality metrics
Control quality .4 Quality control measurements
.5 Project documents
Outputs / Target
Outputs Targets
.1 Change requests Perform Integrated change
control ( Integration)
.2 Project management plan Develop PM plan ( Integration)
updates
.3 Project documents
updates
.4 Organizational process
assets updates
T&T
1 Quality management and

control tools
2 Quality audits
3 Process analysis
QM Tools
Quality Audits
 2 Quality Audits
 A quality audit is a structured, independent process to determine if project
activities comply with organizational and project policies, processes, and
procedures. The objectives of a quality audit may include:
 Identify all good and best practices being implemented;
 Identify all nonconformity, gaps, and shortcomings;
 Share good practices introduced or implemented in similar projects in the
organization and/or industry;
 Proactively offer assistance in a positive manner to improve implementation of
processes to help the team raise productivity; and
 Highlight contributions of each audit in the lessons learned repository of the
organization.
3 Process Analysis
 3 Process Analysis
 Process analysis follows the steps outlined in the process
improvement plan to identify needed improvements.
 This analysis also examines problems experienced,
constraints experienced, and non-value-added activities
identified during process operation. Process analysis
includes root cause analysis—a specific technique used to
identify a problem, discover the underlying causes that
lead to it, and develop preventive actions.
Control Quality
 Control Quality is the process of monitoring and
recording results of executing the quality activities to
assess performance and recommend necessary
changes. The key benefits of this process include:
 (1) Identifying the causes of poor process or product
quality and recommending and/or taking action to
eliminate them;
 (2) Validating that project deliverables and work
meet the requirements specified by key stakeholders
necessary for final acceptance.
Control Quality
Source / Inputs
Source Inputs
1. Plan Quality .1 Project management plan
2. Plan Quality .2 Quality metrics
3. Plan Quality .3 Quality checklists
4. Direct and manage project execution ( .4 Work performance data
Integration) .5 Approved change
5. Perform integrated change control ( requests
Integration) .6 Deliverables
6. Direct and manage project execution ( .7 Project documents
Integration) .8 Organizational process
assets
Outputs / Targets
Outputs Targets
.1 Quality control measurements 1. Perform quality assurance
.2 Validated changes 2. Develop PM plan ( Integration)
.3 Verified deliverables 3. Validate scope
.4 Work performance information 4. Monitor & control project work (

Integration)
.5 Change requests 5. Perform integrated change control
.6 Project management plan updates
.7 Project documents updates
.8 Organizational process assets updates

T&T
 1 Seven basic quality tools
 2 Statistical sampling
 3 Inspection:
 An inspection is the examination of a work product to determine if it
conforms to documented standards. The results of an inspection
generally include measurements and may be conducted at any level.
 For example, the results of a single activity can be inspected, or the
final product of the project can be inspected. Inspections may be called
reviews, peer reviews, audits, or walkthroughs. In some application
areas, these terms have narrow and specific meanings. Inspections also
are used to validate defect repairs.
 4 Approved change requests review
Quiz
Question 1Relevance: PMP Exam / CAPM Exam

You are working for a semi-conductor company. There have been several instances in the past week when
a few circuits have not been giving accurate results. You have been assigned the task of determining the
probable cause for the variations. Which tool would you use?
Control Chart
Ishikawa Diagrams
Pareto Diagrams
Inspection
Quiz
Question 2Relevance: PMP Exam only
You are managing the tools/spare parts section for an aircraft manufacturing company. Your
team members have discovered some defective tools/spare parts. The probable cause for
these could be materials used, defective measurement systems, inaccurate tolerances in the
machines, or other factors. To determine what caused the defect, you will:
Use a control chart
Draw an Ishikawa diagram
Create a flowchart
Draw a Pareto chart

Quiz
Quality management complements project management, as both recognize the
importance of:
Exceeding customer expectations using additional features
Providing customer satisfaction
Decreasing total scope of ownership of the project
Decreasing risks associated with outsourcing

Quiz
Question 4Relevance: PMP Exam only
Your company has developed a software product. While performing beta testing with a small sample of
users, you notice that the product has defects because of the following reasons:
- Non-compatibility with the operating system (20%)
- Bugs in the software (22%)
- Difficulty in understanding instruction manuals (20%)
- Non-availability of desired features (15%)
- Others (23%)
To illustrate the causes of these problems, you could use a:
Flowchart
Quality Checklist
Pareto Chart
Histogram
Quiz
The project team has added some functionalities to the product that are not required as part
of the project. However, the customer is satisfied with the product. From a quality perspective,
the action of the team is:
Justified because customer expectations are exceeded.
Not acceptable, because it constitutes gold plating, which is not a good practice.
Desirable as this means repeat business from the customer.
Not ethical as the customer indicated project deliverable is not produced.

Project Resource Management
6th Edition Changes
PROJECT RESOURCE MANAGEMENT
 The project team is comprised of the people with assigned

roles and responsibilities for completing the project.
 Project team members may have varied skill sets, may be
assigned full or part-time, and may be added or removed
from the team as the project progresses.
 Project team members may also be referred to as the
project’s staff.
Project HR management processes
Planning Execution M&C
1. Plan Resource 3. Acquire Resources 6. Control Resources

management
2. Estimate Activity 4. Develop Team
Resources
5. Manage Team
Plan Resource management
 The process of identifying how to

estimate, acquire, manage and
utilize physical and team
resources.
Plan Resource Mgmt ITTO
Project HR Planning T&T
 Organization Charts and Position Descriptions
 Hierarchical-type charts such as OBSs.
 Matrix-based charts such as RAMs.
 Text-oriented formats such as Job Descriptions.
 Other sections of the project management plan.
 Networking - a constructive way to understand political and interpersonal
factors that will impact project team options.
 Organizational Theory - provides information regarding the ways that
people, teams, and organizational units behave. Applying proven principles
shortens the amount of time needed for HR planning.
Project HR Planning Tools
OBS
 The organizational breakdown structure (OBS)
 looks similar to the WBS, but instead of being
arranged according to a breakdown of project
deliverables, it is arranged according to an
organization’s existing departments, units, or
teams.
 The project activities or work packages are
listed under each existing department.
 RAM ( Responsibility Assignment Matrix)

 Used to illustrate the connections between work that
needs to be done and project team members.
 • On larger projects, RAMs can be developed at
various levels.
 • Example Formats: RACI and PARIS
 • Also called: Linear Responsibility Chart.
Role & Responsibility formats
 Position Descriptions
 Provide information such as responsibilities, authority,

competencies, and qualifications.
 Also known as “Role- Responsibility- Authority” forms
Project HR Planning Outputs
 Roles and Responsibilities
 Role.
 Authority.
 Responsibility.
 Competency.
 Project Organization Charts
 Staffing Management Plan
 Staff acquisition, Timetable, Release criteria, Training needs, Recognition
and rewards, Compliance, Safety.
Staffing Management Plan
 Staff acquisition – How, from which department, where, cost.
 Timetable.
 Release criteria - costs reduced, morale improved, smooth
transitions.
 Training needs.
 Recognition and rewards.
 Compliance - strategies for complying with applicable
government regulations, union contracts, and HR policies.
 Safety - protect team members from hazards (also in Risk
Register).
4. Estimate Activity Resources
 Estimate Activity Resources is the process

of estimating the type and quantities of
material, human resources, equipment, or
supplies required to perform each activity.
Estimate Activity Resources ITTO
Estimate Activity Resources Inputs
 1. Resource Calendars:
 A resource calendar is a calendar that identifies the
working days and shifts on which each specific
resource is available.
 2. Risk Register:
 Risk events may impact resource selection and
availability. Updates to the risk register are included
with project documents updates.
Tools & Techniques
 1. Expert Judgment.
 2. Alternative Analysis:
 They include using various levels of resource capability
or skills, different size or type of machines, different
tools (hand versus automated), and make, rent-or-buy
decisions regarding the resource.
 3. Published Estimating Data:
 Several organizations routinely publish updated
production rates and unit costs of resources for an
extensive array of labor trades, material, and equipment
Tools & Techniques
 4. Bottom-Up Estimating:
 Bottom-up estimating is a method of estimating
project duration or cost by aggregating the estimates
of the lower-level components of the WBS.
 When an activity cannot be estimated with a
reasonable degree of confidence, the work within the
activity is decomposed into more detail. The resource
needs are estimated.
 These estimates are then aggregated into a total
quantity for each of the activity’s resources
Aggregation Example.
Estimate Activity Resources Outputs
 1. Activity Resource Requirements:
 Activity resource requirements identify the types and
quantities of resources required for each activity in a
work package.
 2. Resource Breakdown Structure:
 The resource breakdown structure is a hierarchical
representation of resources by category and type.
Examples of resource categories include labor, material,
equipment, and supplies. Resource types may include the
skill level, grade level, or other information as
appropriate to the project.
 3. Project Documents Update.
Acquire Resources
 Process of obtaining team members, facilities,
equipment, materials, supplies and other resources
required to complete project work
2. Acquire Resources
Tools & Techniques
 Pre-assignment – Staff have been assigned because they were
promised in the proposal or were defined in the project charter.
 Negotiations – With FMs or other project management teams;
to ensure receiving appropriate resources within required time
frames
 Acquisition – People outside the organization obtained to
perform project activities
 Virtual Teams - groups of people with a shared goal, who
fulfill their roles with little or no time spent meeting face to
face.
Tools & Techniques
 Multi-Criteria Decision Analysis
 Selection criteria are often used as a part of acquiring the project
team. By use of a multi-criteria decision analysis tool, criteria are
developed and used to rate or score potential team members. The
criteria are weighted according to the relative importance of the needs
within the team. Some examples of selection criteria that can be used
to score team members are shown as follows:
 Availability.
 Cost.
 Experience.
 Ability.
 Knowledge, Skills, Ability “ SKA’s”
Outputs from acquire Project Team
 Project Staff Assignments – Documentation can include
a project team directory, memos to team members,
and names inserted into other parts of the project
management plan, such as project organization charts
and schedules.
 Resource Availability – documents the time periods
each project team member can work on the project.
 Staffing Management Plan (Updates)
3. Develop Project Team
 Develop Project Team is the

process of improving
competencies, team member
interaction, and overall team
environment to enhance project
performance.
3. Develop Team
T&T
 1 Interpersonal skills
 2 Training
 3 Team-building activities
 Forming
 Storming
 Norming
 Performing
 Adjourning
T&T
 4 Ground rules
 Ground rules establish clear expectations regarding
acceptable behavior by project team members. Early
commitment to clear guidelines decreases
misunderstandings and increases productivity.
 5 Colocation
 6 Recognition and rewards
 7 Personnel assessment tools
4. Manage Team
 Manage Project Team is the process

of tracking team member
performance, providing feedback,
resolving issues, and managing
team changes to optimize project
performance.
4. Manage Team
Tools & Techniques
 Conflict Management
 Observation and Conversation - to stay in touch with the work
and attitudes of project team members.
 Project Performance Appraisals – receiving feedback from the
people who supervise the project work. (360-degree
feedback).
 Issue Log - a written log to document persons responsible for
resolving specific issues by a target date. The log helps the
project team monitor issues until closure.
General Management and
Interpersonal Skills
 Motivation Theory
 (Maslow, McGregor, Hertzberg)
 Power and Influence in Project
 Conflict Resolution
Maslow’s Hierarchy of Needs
 According to Maslow’s theory:
 Once a level of need is satisfied, it is no longer a
motivational factor
 One cannot ascend to the next level until the levels
below are fulfilled
 People do not perform for security or money, but
rather to get a chance to contribute (self-
actualization)
McGregor’s Theory
 Theory X
 Traditional view of management; top-down
 Managers: Control the people
 Workers: Viewed as inherently self-centered, lazy
 Theory Y
 Workers: Viewed as willing and eager to accept
responsibility
 Managers: Create environment that aids workers in
achieving goals
Herzberg’s Theory
 Motivating Agents: Motivators are mostly
intrinsic to the job and serve as motivators
 De-motivators (Hygiene Factors) Are mostly
environmental, the absence of which

demotivate, however when present do not
necessarily serve to motivate
Motivators vs. De - motivators
Motivating Agents Demotivating Agents
• Recognition • Working conditions

• Responsibility • Salary
• The work itself • Company policy
• Professional growth and • Job security
advancement
• Management Trust
• Delegation
Note : Availability of demotivating agents can not be

considered as motivators.
Hertzberg’s Motivation Theory
 Poor hygiene factors negatively impact
motivation
 Positive motivation leads to achievement and
self-actualization
 Workers have a sense of personal growth and
responsibility
Power versus Influence
 Power
 Is the ability to make what you want even
if your subordinate do not want to do it.
 Influence
 Is the ability to get what you want

because the subordinate want to do it.
Powers of a Project Manager
The most effective powers in terms of positive impact to project
results are:
 Expert
 Reward
 The least effective is:
 Penalty (Coercive)
 Formal Power is important in certain situations.

..Examples?
Conflict Management
 Sources of conflict include scarce resources, scheduling
priorities, and personal work styles.
 Team ground rules, group norms, and solid project
management practices, like communication planning and role
definition, reduce the amount of conflict.
 Conflict should be addressed early and usually in private, using
a direct, collaborative approach.
 If disruptive conflict continues, increasingly formal procedures
will need to be used, including the possible use of disciplinary
actions.
Conflict Resolution Modes
 Withdrawal is retreating from a potential conflict.
 Smoothing is emphasizing areas of agreement and de-
emphasizing areas of disagreement.
 Compromising is the willingness to give and take.
 Forcing is directing the resolution in one direction or another, a
win-or-lose position.
 Confrontation is a face-to-face meeting to resolve the conflict.
Trends in Resource Management
Control Resources
 The process of ensuring that the

physical resources assigned and
allocated to the project are available
as planned, as well as monitoring the
planned versus actual use of
resources, and performing corrective
action as necessary.
Control Resources ITTO
Project Communication Management
6th Edition changes in Communication
Management
Project Communication Management
 Project Communications Management includes the
processes that are required to ensure timely and
appropriate planning, collection, creation,
distribution, storage, retrieval, management, control,
monitoring, and the ultimate disposition of project
information.
 Project managers spend most of their time
communicating with team members and other project
stakeholders, whether they are internal (at all
organizational levels) or external to the organization.
Project Communication Management Process
Group
Planning Execution Monitoring

Plan Manage Monitor
Communication Communication Communication
Plan Communication
 The process of developing an

appropriate approach and plan for
project communications based on
stakeholder’s information needs and
requirements, and available
organizational assets.
Plan Communication ITTO
Communication Dimensions
 The communication activities involved in these processes may often
have many potential dimensions that need to be considered, including,
but not limited to:
 Internal (within the project) and external (customer, vendors, other
projects, organizations, the public)
 Formal (reports, minutes, briefings) and informal (emails, memos, ad-
hoc discussions);
 Vertical (up and down the organization) and horizontal (with peers);
 Official (newsletters, annual report) and unofficial (off the record
communications); and
 Written and oral, and verbal (voice inflections) and nonverbal (body
language).
Effective communication Process
Noise
Message
Sender Encoding Decoding Receiver
Medium
Feedback
What is Effective Communication
 The process of exchanging information in the right

time with the right format to achieve mutual
understanding between sender/s and receiver/s.
 Mutual Understanding requires feedback from the
receiver confirming understanding the message
and not necessarily accepting of the message’s
content.
Effective communication process
Receiver
Sender
Medium
Decoding
Encoding
Process Formatting the Communication

Owner message Channel Translating Understand
the and
message feedback
Sender / Receiver Responsibilities
Stage I – Understanding the message
Sender is responsible for the message’s content. Receiver responsible for noting what understood
(Clear, specific, …. etc.) and what didn’t.
Stage II – Message Attitude

Sender is responsible for the message’s attitude. Receiver is responsible for focusing on message
( aggressive, urgent,…..etc.) objectives and the reaction tools.
Stage III - Feedback

Sender is responsible for specifying the direction Receiver is responsible for reacting objectively.
of feedback. ( Reaction Specification)
Communication Barriers
1. Perception ( Personality &
Judgment Examples
 First Impression.  He looks very professional.

 Gender Differences.  Men think vertically, women
think horizontally.
 Education & culture  I cant understand his
differences. accent, he talks very fast.
 Needs, expectations.  He needs a promotion, He
 Different in attitude & performed bad.
Values.  He believes in deciding, He
believes in thinking.
Communication barriers
Assumptions
 Understanding
 Knowledge
 Examples :
 We assume that people are going to behave the same way in
every situation.
 We try too hard to put everyone into stereo types.
 We assume we understand what people say or vice versa but
actually we don’t check.
Language
 Management vs. Subordinate
 Business language vs. Simple everybody language.
 Mother tongue vs. Second language in use.
 Impaired speakers ( Lack of Knowledge)
Body Language (Intent vs. Impact)

 Incongruence ( ‫)التناقض‬
 Mismatching
Distractions
Are events that take your mind away from communication and
make you less understanding of other people’s problems.
 Internal Noise
 External Noise.
T&T
 1 Communication Requirements Analysis:
 The analysis of the communication requirements
determines the information needs of the project
stakeholders.
 The total number of potential communication channels
is n(n – 1)/2, where n represents the number of
stakeholders.
 For example, a project with 10 stakeholders has
10(10 – 1)/2 = 45 potentiel communication
channels.
T&T
 2 Communication Technology:
 Factors that can affect the choice of communication
technology include:
 Urgency of the need for information.
 Availability of technology.
 Ease of Use.
 Project environment.
 Sensitivity and confidentiality of the information.
T&T
Communication Model
T&T
 4 Communication Methods:
 Interactive communication. Between two or more parties performing a
multidirectional exchange of information. It is the most efficient way to ensure
a common understanding by all participants on specified topics, and includes
meetings, phone calls, instant messaging, video conferencing, etc.
 Push communication. Sent to specific recipients who need to receive the
information. This ensures that the information is distributed but does not ensure
that it actually reached or was understood by the intended audience. Push
communications include letters, memos, reports, emails, faxes, voice mails,
blogs, press releases, etc.
 Pull communication. Used for very large volumes of information, or for very
large audiences, and requires the recipients to access the communication
content at their own discretion. These methods include intranet sites, e-learning,
lessons learned databases, knowledge repositories, etc.
T&T
 5 Meetings:
 The Plan Communications Management process requires
discussion and dialogue with the project team to
determine the most appropriate way to update and
communicate project information, and to respond to
requests from various stakeholders for that information.
 These discussions and dialogue are commonly facilitated
through meetings, which may be conducted face to face
or online and in different locations, such as the project site
or the customer’s site.
2. Manage Communication
 Manage Communications is the

process of creating, collecting,
distributing, storing, retrieving, and
the ultimate disposition of project
information in accordance to the
communications management plan.
2. Manage Communication ITTO
Outputs
 Project Communications:
 Performance reports, deliverables status,
schedule progress, and cost incurred. Project
communications can vary significantly and are
influenced by factors such as, but not limited to,
the urgency and impact of the message, its
method of delivery, and level of confidentiality.
3. Monitor Communications
 Control Communications is the process

of monitoring and controlling
communications throughout the entire
project life cycle to ensure the
information needs of the project
stakeholders are met.
Monitor Communications ITTO
Project Risk Management
6th Edition Changes in Risk Management
 The processes concerned with conducting risk
management planning, identification, analysis,
responses, and monitoring and control on a project;
most of these processes are updated throughout the
project.
 The objectives of Project Risk Management are to
increase the probability and impact of positive events,
and decrease the probability and impact of events
adverse to the project.
Risk Components
 Risk – Events or consequences that have the probability of
occurring during a project and that are measured by their
impacts on the project
 Components
 Risk event
 Risk event probability
 Risk outcome or consequence (Amount at stake)
 Risk event status (Probability x amount at stake)
Risk & Project Life Cycle
 Risk varies throughout the life cycle
 Risk is high in the concept and development
phases, decreasing as work is accomplished
 Amount at stake is low in the early phases and
increases as work is accomplished

 The area of overlap is known as the high-risk
impact area
New trends in Risk Management
 1. Plan Risk Management
 2. Identify Risk
 3. Perform Qualitative Risk Analysis
 4. Perform Quantitative Risk Analysis
 5. Plan Risk Response
 6. Implement Risk Response
 7. Monitor Risks
Risk Process Vs. Process Group
Planning Execution Monitor & Control
Plan Risk Implement Risk Monitor & Control
Management Response Risk
Identify Risk
Perform Qualitative
Risk Analysis
Perform Quantitative
Risk Analysis
Plan Risk Response
Plan Risk Management
Deciding how to approach,

plan and execute the risk
management activities for a
project
Plan Risk Management
Tools & Techniques
 Planning meetings and analysis to develop

the risk management plan.
 Attendees include project manager,
project team leaders, key stakeholders –
anyone responsible for planning and
executing activities.
Outputs
 Risk Management Plan
 Methodology – defines approaches, tools, and data sources that might be
used to perform risk management on the project
 Roles & Responsibilities – defines the lead, support, and risk management
team membership for each type of action in the plan
 Budget - $
 Timing – Describes how often the risk management process will be
performed throughout the project life cycle.
 Scoring and interpretation – methods used for performing qualitative and
quantitative risk analysis
Outputs (cont.)
 Risk Management Plan (cont.)
 Thresholds – the target against which the project team
measures the effectiveness of the the risk response plan
execution
 Reporting formats - defines how the results of the risk
management processes will be documented, analyzed, and
communicated to the project team and stakeholders
 Tracking – Documents all facets of risk activities and how the
risk process will be audited
Probability and Impact
Identify Risks
Determining which risks are

likely to affect the project and
documenting the
characteristics of each.
Identify Risks ITTO
Risk and Uncertainty
 Types
 Known known = Total certainty
 Known unknown Degree of uncertainty
 Unknown unknown = Total uncertainty

Tools & Techniques
 1. Assumptions Analysis – technique that examines the validity
of assumptions to identify risks to project because of invalid
assumptions
 2. Diagramming techniques –
 Cause and effect diagrams used to identify causes of risks
 System or process flow charts that show how various elements
of a system interrelate and the causes of risks
 Influence diagrams the graphically represent a problem
showing causal influences, time ordering events and other
relationships among variables and outputs
T&T
 3. Information Gathering Techniques:

 • Brainstorming.
 • Delphi technique.
 • Interviewing.
Outputs
 Risk Register (Initial Entries)

 Risks are often input to other processes as
constraints or assumptions
Risk Register
 List of identified risks.

 List of potential responses.
 Root causes of risk.
 Updated risk categories.

Qualitative Risk Analysis
 Prioritizing risks for subsequent

further analysis or action by
assessing and combining their
probability of occurrence and
impact.
Perform qualitative risk analysis ITTO
Tools & Techniques
 Risk Probability and Impact
 – Risk probability - is the likelihood that a risk will occur
 – Risk consequences – is the effect on project objectives if the risk
event occurs
 Probability/Impact Risk Rating Matrix –
 – Risk Probability Scale falls between 0.0 (no probability) and 1.0
certainty)
 • Ordinal scale – ranked-order scale, such as very low, low,
moderate, high, and very high
 • Cardinal scale – assign values to these impacts. These values are
usually linear (.1/ .3/ .5/ .7/ .9) or nonlinear (.05/ .1/ .2/ .4/
.8/)
Qualitative Risk Analysis T&T
 Risk Data Quality Assessment

 Risk Categorization by sources of risk
(e.g., using the RBS), the area of the

project affected (e.g., using the WBS), or
other useful category (e.g., project phase)
 Risk Urgency Assessment
Outputs
 Risk Register (Updates)
 Relative ranking or priority list of project risks.
 Risks grouped by categories.
 List of risks requiring response in the near-term.
 List of risks for additional analysis and response.
 Watch lists of low priority risks.
 Trends in qualitative risk analysis results.
Perform Quantitative Risk Analysis ITTO
Quantitative Risk Analysis
 Definition : Numerically analyzing the effect on overall
project objectives of identified risks.
 Determine probability of achieving a specific project objective
 Quantify the risk exposure for the project, and determine the
size of cost and schedule contingency reserves that may be
needed
 Identify risks requiring the most attention by quantifying their
relative contribution to project risk
 Identify achievable and realistic cost, schedule, or scope
targets
Tools & Techniques
 Data Gathering and Representation
Techniques:
 Interviewing – project stakeholders and
subject matter experts to quantify the

probability and consequences of risks on
project objectives.
 Expert judgment.
Tools & Techniques (cont.)
 Quantitative Risk Analysis and Modeling Techniques:
 Sensitivity analysis.
 Expected monetary value analysis.
 Decision tree analysis.
 Modeling and simulation.
EMV : Expected Monetary Value = P *
I
Outputs
 Risk Register (Updates)
 Prioritized List of Quantified Risks
 Probabilistic Analysis of the Project
 Probability of Achieving Cost and Time
 Trends in Quantitative Risk Analysis

Results
Risk Response Planning
 Developing options and actions to

enhance opportunities, and to reduce
threats to project objectives
Plan Risk Response ITTO
Inputs
 Risk management plan

 Risk Register
Tools & Techniques
 Strategies for Negative Risks or Threats

 Strategies for Positive Risks or
Opportunities
 Strategy for Both Threats and
Opportunities
 Contingent Response Strategy
Strategies for Negative Risks or Threats
 Avoidance – Change project plan to eliminate the risk

or condition or to protect the project objectives from
its impact
 Transference – Shift the consequences of a risk to a
third party together with the ownership of the
response
 Mitigation – Reduce the probability and/or
consequences of an adverse risk event to an
acceptable threshold
Strategies for Positive Risks or
Opportunities
 Exploit. seeks to eliminate the uncertainty associated
with a particular upside risk by making the
opportunity definitely happen.
 Share. allocating ownership to a third party who is
best able to capture the opportunity for the benefit of
the project.
 Enhance. modifies the “size” of an opportunity by
increasing probability and/or positive impacts.
Contingent Response Strategy
 For some risks, it is appropriate for the

project team to make a response plan that
will only be executed under certain
predefined conditions, if it is believed that
there will be sufficient warning to
implement the plan.
Tolerance for Risk
 There is no single textbook answer on how to
manage risk. The project manager must rely
upon sound judgment and the use of the
appropriate tools in dealing with risk. The
ultimate decision on how to deal with risk is
based in part upon the project manager's
tolerance for risk.
Dr. Harold Kerzner
Outputs
 Risk Register Updated to include response plans:
 1. Identified risks, their descriptions, the area (s) of the project (e.g.,
WBS element) affected, their causes, and how they may affect
project objectives.
 2. Risk owners and assigned responsibilities.
 3. Results from the qualitative and quantitative risk analysis
processes.
 4. Agreed responses for each risk in the risk response plan.
 5. The level of residual risk.
 6. Specific actions to implement the chosen response strategy.
 7. Budget and times for responses.
 8. Contingency plans and fallback plans.
Implement Risk Responses
 Process of implementing agreed upon risk response
plans, it ensures that agreed – upon risk responses are
executed as planned in order to address overall
project risk exposures, minimize individual project
threats and maximize opportunities, the process
performed throughout the project.
Implement Risk Responses ITTO
Risk Monitoring & Control
 Risk monitoring and control is the

process of keeping track of the
identified risks, monitoring residual
risks and identifying new risks,
ensuring the execution of risk plans,
and evaluating their effectiveness in
reducing risk.
Monitor Risks ITTO
Project Procurement Management
6 th Edition Changes in Procurement
Project Procurement Management
Key Concepts (1)
 The buyer-seller relationship can exist at many
levels on one project.
 The seller may be called a subcontractor ,a
vendor ,or a supplier,

 Most of the discussion is equally applicable to
formal agreements with other units of the

performing organization.
PROJECT PROCUREMENT
MANAGEMENT
 1 Plan Procurement Management
 2 Conduct Procurements
 3 Control Procurements
Procurement vs. Process Group
Planning Execution M&C

Plan Procurement Conduct Control
Procurement Procurement
1. Plan Procurement Mgmt
 Plan Procurement Management is the

process of documenting project
procurement decisions, specifying the
approach, and identifying potential
sellers.
Plan Procurement ITTO
Sources / Inputs
Source Inputs
1. Develop PM ( Integration) 1 Project management plan
2. Collect requirements ( Scope) .2 Requirements documentation
3. Identify risks .3 Risk register
4. Estimate activity resources ( .4 Activity resource
Time) requirements
5. Develop schedule .5 Project schedule
6. Estimate costs ( Cost) .6 Activity cost estimates
7. Identify stakeholders. .7 Stakeholder register
Outputs / Targets
Outputs Targets
1 Procurement management plan 1. Develop PM Plan
2 Procurement statement 2. Conduct procurement
of work
3 Procurement documents 3. Identify stakeholders, Identify
risks
4 Source selection criteria 4. Conduct procurement
5 Make-or-buy decisions 5. Conduct procurement
6 Change requests 6. Perform integrated change
control
7 Project documents
updates
Contract Types
 Contract-type
 Fixed-price or lump-sum contracts.
 Cost-reimbursable contracts.
 Time and Material (T&M)

contracts.
Fixed-price or Lump-sum Contracts
 This category of contract involves a fixed total price
for a well-defined product.
 Fixed-price contracts can also include incentives for
meeting or exceeding selected project objectives, such
as schedule targets.
 The simplest form of a fixed-price contract is a
purchase order for a specified item to be delivered by
a specified date for a specified price.
Cost-reimbursable Contracts
 This category of contract involves payment
(reimbursement) to the seller for seller’s actual costs,
plus a fee typically representing seller profit.
 Costs are usually classified as direct costs or indirect
costs.
 Cost-reimbursable contracts often include incentive
clauses where if the seller meets or exceeds selected
project objectives.
 Three common types of cost-reimbursable contracts
are CPF, CPFF, and CPIF.
CPF, CPFF, and CPIF
 Cost-Plus-Fee (CPF) or Cost-Plus-Percentage of Cost
(CPPC). Seller is reimbursed for allowable costs for
performing the contract work and receives a variable fee
calculated as an agreed-upon percentage of the costs.
 Cost-Plus-Fixed-Fee (CPFF). Seller is reimbursed for allowable
costs for performing the contract work and receives a fixed
fee, which does not vary with actual costs unless the project
scope changes.
 Cost-Plus-Incentive-Fee (CPIF). Seller is reimbursed for
allowable costs for performing the contract work and receives
a predetermined fee, an incentive bonus, based upon achieving
certain performance objective levels set in the contract.
Time and Material (T&M) Contracts
 T&M contracts are a hybrid type that contains aspects
of both cost-reimbursable and fixed-price type
arrangements.
 The full value of the agreement and the exact
quantity of items to be delivered are not defined by
the buyer at the time of the contract award.
 The unit rates can be preset by the buyer and seller
when both parties agree on the rates for a specific
resource category (Item).
Tools & Techniques
 Expert Judgment - Expert purchasing

judgment can be used to develop or modify
the criteria that will be used to evaluate
offers or proposals made by sellers.
 Expert legal judgment may involve the
services of a lawyer to assist with

nonstandard procurement terms and
conditions.
Tools & Techniques
 Make-or-Buy Analysis is
a general management
technique that can be used to determine
whether a particular product or service can
be produced by the project team or can be
purchased.
 The analysis includes both indirect as well
as direct costs.
Make-or-Buy Analysis
Cost versus Benefit
PROJECT PROCUREMENT
MANAGEMENT
Conduct Procurement
Conduct Procurements is the

process of obtaining seller
responses, selecting a seller, and
awarding a contract.
Conduct Procurement ITTO
Outputs / Targets
 1. Resource calendars :
 Estimate activity resources, Estimate activity duration,
Develop schedule, Determine Budget, Develop project
team.
 2. Agreements :
 Control procurement, Determine Budget, Develop
project charter.
Proposal Evaluation Criteria
 Evaluation criteria – Used to rate or score proposals
(objective or subjective)
 Understanding of the need
 Overall or life-cycle cost
 Technical capability
 Management approach
 Technical approach
 Financial capacity
 Production capacity and interest
 Business type and size
 References
 Intellectual property rights / Proprietary rights.
Bid, Quotation or Proposal
 A term such as bid, tender, or quotation is generally
used when the seller selection decision will be based
on price (as when buying commercial or standard
items).
 A term such as proposal is generally used when other
considerations, such as technical skills or technical
approach, are paramount.
 However, the terms are often used interchangeably
and care is taken not to make unwarranted
assumptions about the implications of the term used.
Tools & Techniques
 Proposal Evaluation Techniques - can be used to rate and
score proposals, but all will use some expert judgment
and some form of evaluation criteria and Screening &
Weighting Systems
 Independent estimates (should cost estimates) Significant
differences from these cost estimates can be an indication
that the contract statement of work was not adequate,
that the prospective seller either misunderstood or failed
to respond fully to the contract statement of work, or that
the marketplace changed.
Tools & Techniques
 Screening System – involves establishing minimum
requirements of performance for one or more of the
evaluation criteria.
 Weighting System - is a method for quantifying qualitative
data to minimize the effect of personal prejudice on seller
selection.
 Most such systems involve assigning a numerical weight to
each of the evaluation criteria, rating the prospective
sellers on each criterion, multiplying the weight by the
rating, and totaling the resultant products to compute an
overall score.
PROJECT PROCUREMENT
MANAGEMENT
3. Control Procurement
 Control Procurements is the process of

managing procurement relationships,
monitoring contract performance, and
making changes and corrections to
contracts as appropriate.
Control Procurement ITTO
T&T
 1 Contract Change Control System:
 A contract change control system defines
the process by which the procurement can
be modified. It includes the paperwork,
tracking systems, dispute resolution
procedures, and approval levels necessary
for authorizing changes.
T&T
 2 Procurement Performance Reviews:
 A procurement performance review is a structured review
of the seller’s progress to deliver project scope and
quality, within cost and on schedule, as compared to the
contract.
 3 Inspections and Audits:
 Inspections and audits required by the buyer and
supported by the seller, as specified in the procurement
contract, can be conducted during execution of the
project to verify compliance in the seller’s work processes
or deliverables.
T&T
 4 Performance Reporting:
 Work performance data and reports
supplied by sellers are evaluated against
the agreement requirements.
 Work performance information from this
evaluation is then reported as appropriate.
T&T
 6 Claims Administration:
 Contested changes and potential constructive changes are those
requested changes where the buyer and seller cannot reach an
agreement on compensation for the change or cannot agree that a
change has occurred.
 These contested changes are variously called claims, disputes, or
appeals.
 Claims are documented, processed, monitored, and managed
throughout the contract life cycle, usually in accordance with the terms
of the contract. If the parties themselves do not resolve a claim.
 it may have to be handled in accordance with alternative dispute
resolution (ADR) typically following procedures established in the
contract. Settlement of all claims and disputes through negotiation is
the preferred method.
T&T
 7 Records Management System:
 A records management system is used by the project
manager to manage contract and procurement
documentation and records.
 It consists of a specific set of processes, related
control functions, and automation tools that are
consolidated and combined as part of the project
management information system
Project Manager Role In Procurement
 Know the procurement process
 Understand contract terms and conditions
 Make sure the contract contains all the project management requirements Such
as attendance at meetings. Reports, actions and communications deemed
necessary
 Identify risks and incorporate mitigation and allocation of risks into the contact
 Help tailor the contract to the unique of the project
 Fit the schedule for completion of the Procurement process into the schedule
for the project
 Be involved during contract negotiation to protect the relationship with the
seller
 Protect the integrity of the project and the ability to get the work done
 Work with the contract manager to manage changes to the contract
Quiz
With which type of contract is the seller

MOST concerned about project scope?
 A. Fixed price
 B. Cost plus fixed fee
 C. Time and material
 D. Purchase order
Quiz
A new project manager is about to begin creating the procurement
statement of work. One stakeholder wants to add many items to the
procurement statement of work. Another stakeholder only wants to
describe the functional requirements. The project is important for the
project manager's company, but a seller will do the work. How would you
advise the project manager?
 A. The procurement statement of work should be general to allow the
seller to make their own decisions.
 B. The procurement statement of work should be general to allow for
clarification later.
 C. The procurement statement of work should be detailed to allow for
clarification later.
 D., The procurement statement of work should be as detailed as
necessary for the type of project.
Quiz
What type of contract do you NOT want to use if you
do not have enough labor to audit invoices?
 A. Cost plus fixed fee (CPFF)
 B. Time & material (T &M)
 c. Fixed price (FP)
 D. Fixed price incentive fee (FPIF)

Project Stakeholder Management
6 th Edition Changes
Project Stakeholder Mgmt
 Project Stakeholder Management includes the
processes required to identify the people, groups, or
organizations that could impact or be impacted by
the project, to analyze stakeholder expectations and
their impact on the project, and to develop
appropriate management strategies for effectively
engaging stakeholders in project decisions and
execution.
Project Stakeholder mgmt processes
1. Identify Stakeholders
 Identify Stakeholders is the process of

identifying the people, groups, or
organizations that could impact or be impacted
by a decision, activity, or outcome of the
project, analyzing and documenting relevant
information regarding their interests,
involvement, interdependencies, influence, and
potential impact on project success.
Who are the Project Stakeholder?
 Project
Stakeholders : Any Team
individual or
organization may
positively or Users Project Environment
negatively impact
by the project.
Contractors
Identify Stakeholders ITTO
T & T stakeholder analysis
Outputs
 Stakeholder Register:
 This contains all details related to the identified
stakeholders including, but not limited to:
 Identification information. Name, organizational position,
location, role in the project, contact information;
 Assessment information. Major requirements, main
expectations, potential influence in the project, phase in
the life cycle with the most interest; and
 Stakeholder classification. Internal/external,
supporter/neutral/resistor, etc.
Project Stakeholder mgmt processes
2. Plan Stakeholder Management
 Plan Stakeholder Management is the

process of developing appropriate
management strategies to effectively
engage stakeholders throughout the project
life cycle, based on the analysis of their
needs, interests, and potential impact on
project success.
Plan Stakeholder ITTO
Stakeholder management plan is an input to ( Collect requirement) – Scope.

T&T
 Analytical Techniques:
 Stakeholder engagement throughout the life cycle of the project is
critical to project success.
 The engagement level of the stakeholders can be classified as follows:
 Unaware. Unaware of project and potential impacts.
 Resistant. Aware of project and potential impacts and resistant to
change.
 Neutral. Aware of project yet neither supportive nor resistant.
 Supportive. Aware of project and potential impacts and supportive to
change.
 Leading. Aware of project and potential impacts and actively engaged
in ensuring the project is a success.
Outputs
 Stakeholder management plan:
 The stakeholder management plan often provides:
 Desired and current engagement levels of key stakeholders;
 Scope and impact of change to stakeholders;
 Identified interrelationships and potential overlap between stakeholders;
 Stakeholder communication requirements for the current project phase;
 Information to be distributed to stakeholders, including language, format,
content, and level of detail;
 Reason for the distribution of that information and the expected impact to
stakeholder engagement;
 Time frame and frequency for the distribution of required information to
stakeholders; and
 Method for updating and refining the stakeholder management plan as the
project progresses and develops.
3. Manage Stakeholder Engagement
 Manage Stakeholder Engagement is the

process of communicating and working
with stakeholders to meet their
needs/expectations, address issues as they
occur, and foster appropriate stakeholder
engagement in project activities throughout
the project life cycle.
Manage Stakeholder Engagement
 Manage Stakeholder Engagement involves activities such as:
 Engaging stakeholders at appropriate project stages to obtain
or confirm their continued commitment to the success of the
project;
 Managing stakeholder expectations through negotiation and
communication, ensuring project goals are achieved;
 Addressing potential concerns that have not yet become issues
and anticipating future problems that may be raised by
stakeholders. Such concerns need to be identified and
discussed as soon as possible to assess associated project risks;
and
 Clarifying and resolving issues that have been identified.
ITTO
T&T
 Interpersonal skills:
For example:
 Building trust,
 Resolving conflict,
 Active listening, and
 Overcoming resistance to change.

T&T
 Management Skills:
For example:
 Facilitate consensus toward project objectives,
 Influence people to support the project,
 Negotiate agreements to satisfy the project needs,
and
 Modify organizational behavior to accept the project
outcomes.
4. Control Stakeholder Engagement
 Control Stakeholder Engagement is

the process of monitoring overall
project stakeholder relationships
and adjusting strategies and plans
for engaging stakeholders.
ITTO
Quiz
 As project manager, you are unable to allocate as much time to
interact with your stakeholders as you would like. Which of the
following stakeholders will you make it a priority to get to know?
 A. The stakeholder who is an expert on the product of the project, but

is not interested in implementing it in his department.
 B. The manager of the department that will use the product of the
project. She is known to be resistant to change.
 C. The project sponsor, with whom you have successfully worked on
many projects.
 D. The department employee who is unfamiliar with the product of the
project, but open to the positive impacts he believes the product will
have on his work environment.
Quiz
 A project manager on a multinational website implementation
project is at a party and talks to friends who will be heavy
users of this new website when the project is complete and the
site is rolled out. They describe some annoying aspects of the
current website. The project manager takes this feedback to
the sponsor, and encourages design and scope changes. Which
of the following BEST describes what the project manager has
done?
 A. Scope validation
 B. Integrated change control
 C. Stakeholder analysis
 D. Scope planning
Project Integration Management
Project Integration Management
 Project Integration Management includes the processes
and activities to identify, define, combine, unify, and
coordinate the various processes and project management
activities within the Project Management Process Groups.
 In the project management context, integration includes
characteristics of unification, consolidation,
communication, and integrative actions that are crucial to
controlled project execution through completion,
successfully managing stakeholder expectations, and
meeting requirements.
6th Edition Changes in Integration
Integration Management Processes
 1. Develop Project Charter
 2. Develop Project Management Plan
 3. Direct and Manage Project Work
 4. Manage Project Knowledge
 5. Monitor and Control Project Work
 6. Perform Integrated Change Control
 7. Close Project or Phase
Integration Vs. Process Group
Initiation Planning Execution M&C Closing

Develop Develop Direct and 1.Monitor Close
Project Project Manage and Control Project or
Charter Managemen Project Project Phase
t Plan Work Work
2. Perform
Manage Integrated
Project Change
Knowledge Control
1. Develop Project Charter
 Develop Project Charter is the process of

developing a document that formally
authorizes the existence of a project and
provides the project manager with the
authority to apply organizational resources
to project activities.
ITTO
T&T
 Facilitation Techniques:
 Facilitation techniques have broad application within
project management processes and guide the
development of the project charter. Brainstorming,
conflict resolution, problem solving, and meeting
management are examples of key techniques used by
facilitators to help teams and individuals accomplish
project activities.
Outputs
 Project Charter contents:
 Project purpose or justification,
 Measurable project objectives and related success criteria,
 High-level requirements,
 Assumptions and constraints,
 High-level project description and boundaries,
 High-level risks,
 Summary milestone schedule,
 Summary budget,
 Stakeholder list,
 Project approval requirements (i.e., what constitutes project success, who decides the
project is successful, and who signs off on the project),
 Assigned project manager, responsibility, and authority level, and
 Name and authority of the sponsor or other person(s) authorizing the project charter.
2. Develop PM Plan
 Develop Project Management Plan is

the process of defining, preparing,
and coordinating all subsidiary plans
and integrating them into a
comprehensive project management
plan.
ITTO
PM plan / Project Documents
PM plan / Project Documents
3. Direct & Manage Project Execution
 Direct and Manage Project Work is

the process of leading and performing
the work defined in the project
management plan and implementing
approved changes to achieve the
project’s objectives.
ITTO
Outputs / Targets
Outputs Targets
Work performance data Control quality
Control communication
Control risks
Control procurement
Control stakeholders
Control cost
Control schedule
Control scope
Validate scope
Deliverables Control quality
4. Manage Project Knowledge
 Process of using existing

knowledge and creating new
knowledge to achieve project
objectives and contribute to
organizational learning.
ITTO
4. Monitor and Control Project Work
 Monitor and Control Project Work

is the process of tracking,
reviewing, and reporting the
progress to meet the performance
objectives defined in the project
management plan.
ITTO
Sources / Inputs
Source Input
Schedule forecast Control schedule
Costs forecasts Control costs
Validated change Control quality
Work performance Control risk, communication,

information scope, stakeholder, validate
scope.
Outputs
 Change requests:
 Corrective action —An intentional activity that
realigns the performance of the project work with the
project management plan;
 Preventive action —An intentional activity that
ensures the future performance of the project work is
aligned with the project management plan; and
 Defect repair —An intentional activity to modify a
nonconforming product or product component.
5. Perform Integrated Change Control
 Perform Integrated Change Control is the process of

reviewing all change requests; approving changes
and managing changes to deliverables,
organizational process assets, project documents, and
the project management plan; and communicating
their disposition. It reviews all requests for changes or
modifications to project documents, deliverables,
baselines, or the project management plan and
approves or rejects the changes.
Perform integrated change control
 The Perform Integrated Change Control process is
conducted from project inception through completion
and is the ultimate responsibility of the project
manager.
 Changes may be requested by any stakeholder
involved with the project. Although changes may be
initiated verbally, they should be recorded in written
form and entered into the change management
and/or configuration management system.
 Every documented change request needs to be either
approved or rejected by a responsible individual,
usually the project sponsor or project manager.
 When required, the Perform Integrated Change
Control process includes a change control board
(CCB), which is a formally chartered group
responsible for reviewing, evaluating, approving,
delaying, or rejecting changes to the project, and for
recording and communicating such decisions.
 Approved change requests can require new or
revised cost estimates, activity sequences,
schedule dates, resource requirements, and
analysis of risk response alternatives.
 Customer or sponsor approval may be required
for certain change requests after CCB approval,

unless they are part of the CCB.
Configuration Control
 Configuration control is focused on the

specification of both the deliverables and
the processes; while change control is
focused on identifying, documenting, and
approving or rejecting changes to the
project documents, deliverables, or
baselines.
Configuration control activities
 Configuration identification. Identification and selection of
a configuration item to provide the basis for which the
product configuration is defined and verified, products
and documents are labeled, changes are managed, and
accountability is maintained.
 Configuration status accounting. Information is recorded
and reported as to when appropriate data about the
configuration item should be provided.
 This information includes a listing of approved
configuration identification, status of proposed changes
to the configuration, and the implementation status of
approved changes.
Configuration control activities
 Configuration verification and audit. Configuration
verification and configuration audits ensure the
composition of a project’s configuration items is
correct and that corresponding changes are
registered, assessed, approved, tracked, and
correctly implemented.
 This ensures the functional requirements defined in the
configuration documentation have been met.
ITTO
Outputs / Targets
Outputs Targets
1. Approved change 1.Control quality
requests 2.Control procurement
2. Change log 1. Manage stakeholder
engagement
T&T
 1 Expert Judgment:
 Consultants,
 Stakeholders, including customers or sponsors,
 Professional and technical associations, Industry
groups,
 Subject matter experts (SMEs), and
 Project management office (PMO).
T&T
 Meeting:
 In this case, these meetings are usually referred to as change
control meetings. When needed for the project, a change
control board (CCB) is responsible for meeting and reviewing
the change requests and approving, rejecting, or other
disposition of those changes. The CCB may also review
configuration management activities.
 The roles and responsibilities of these boards are clearly

defined and agreed upon by appropriate stakeholders and
documented in the change management plan. CCB decisions
are documented and communicated to the stakeholders for
information and follow-up actions.
T&T
 3 Change Control Tools:
 In order to facilitate configuration and change
management, manual or automated tools may be used.
 Tool selection should be based on the needs of the project
stakeholders including organizational and environmental
considerations and/or constraints.
 Tools are used to manage the change requests and the
resulting decisions.
 Additional considerations should be made for
communication to assist the CCB members in their duties
as well as distribute the decisions to the appropriate
stakeholders.
Outputs
 1. Approved Change Requests:
 Change requests are processed according to the
change control system by the project manager, CCB,
or by an assigned team member.
 Approved change requests will be implemented
through the Direct and Manage Project Work
process.
 The disposition of all change requests, approved or
not, will be updated in the change log as part of
updates to the project documents.
Outputs
 2. Change Log:
 A change log is used to document changes that occur
during a project.
 These changes and their impact to the project in terms
of time, cost, and risk, are communicated to the
appropriate stakeholders.
 Rejected change requests are also captured in the
change log.
6. Close project
 Close Project or Phase is the process of finalizing all
activities across all of the Project Management
Process Groups to formally complete the project or
phase.
ITTO
Close project steps
 When closing the project, the project manager
reviews all prior information from the previous phase
closures to ensure that all project work is completed
and that the project has met its objectives.
 Since project scope is measured against the project
management plan, the project manager reviews the
scope baseline to ensure completion before
considering the project closed.
Close project steps
 The Close Project or Phase process also
establishes the procedures to investigate and
document the reasons for actions taken if a
project is terminated before completion.
 In order to successfully achieve this, the project
manager needs to engage all the proper

stakeholders in the process.
Administrative closure
 Actions and activities necessary to satisfy completion
or exit criteria for the phase or project;
 Actions and activities necessary to transfer the
project’s products, services, or results to the next
phase or to production and/or operations; and
 Activities needed to collect project or phase records,
audit project success or failure, gather lessons learned
and archive project information for future use by the
organization.
Outputs
 Organizational Process Assets Updates:
 Project files
 Documentation resulting from the project’s activities,
for example, project management plan; scope, cost,
schedule, and project calendars; risk registers and
other registers; change management documentation;
planned risk response actions; and risk impact.
Outputs
 Project or phase closure documents—Project or phase
closure documents, consisting of formal documentation
that indicates completion of the project or phase and the
transfer of the completed project or phase deliverables to
others, such as an operations group or to the next phase.
 If the project was terminated prior to completion, the
formal documentation indicates why the project was
terminated and formalizes the procedures for the transfer
of the finished and unfinished deliverables of the
cancelled project to others.
Outputs
 Historical information — Historical

information and lessons learned
information are transferred to the lessons
learned knowledge base for use by future
projects or phases. This can include
information on issues and risks as well as
techniques that worked well that can be
applied to future projects.
Thank You & Best of luck
With my Greetings
Dr. Eng. Ahmed Elshahat, PhD, PMP
Cell : 01005552659
Mail : ash_4017957@yahoo.com

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By -

1.Read 6.Solve 7.Make your

 Each group is to identify differences

Project Project Plan Accepted Achieved

Project Project Plan Accepted Achieved

the degree of control applied depend on the

1. Sequential 2. Overlapping 3. Iterative

Project Project Plan Accepted Achieved

Monitoring & Controlling

Initiation Planning Execution Closing

Inputs Tools & Techniques Outputs

Start Time Finish

Product Life Cycle

Business Plan Ongoing Operations ?

Project Life Cycle

 How can organizational culture and style influence - project?

 • Barriers exist on horizontal information flow

 • Functional emphasis – loyalties may impede

Staff Staff Staff Staff

 All organization is by projects. The

Staff Staff Staff Staff

Functional Functional Functional

Staff Staff Staff Staff

Functional Functional Functional

Staff Staff Staff Staff

Staff Staff Staff Staff PM PM

PM Little or none Limited Low to Moderate to High

Resource Little Limited Low to Moderate to High

Who control Functional Functional Mixed PM PM

 Project Scope: The work performed to deliver a

Initiation Planning execution monitor Closing

Plan scope Verify Scope

 Process of detailing and

 The process of subdividing project deliverables and project

 Each attendee is to draw 3 levels WBS for

 The process of monitoring the status of the project and

 The process of establishing the policies, procedures,

 1. Schedule Management Plan:

 3. Units of measure : hours / days / weeks.

 Define Activities is the process of

 Sequence Activities is the process

 Estimate Activity Durations is the

 Solve the attached problems.

 Develop Schedule is the process of

Start Project Due

A Select administrative and medical staff. — 12

Path Time (wks)

Path Time (wks) A F K

Earliest start time

© 2012 Lew Hofmann

B A 4 3 5000 5750 750 /d 1

C --Non critical- 8 7 8000 8500 500/d

Planning Monitoring & Control

Plan Cost management Control Costs.

 1. Plan Cost Management

 Plan Cost Management is the process

Sources Plan cost management inputs

1. Develop PM Plan ( 1. Project management plan

4. Organization Process. 4. OPA

1. Cost Management plan 1. Identify Risks ( Risk

2. Perform Quantitative Risk

 Units of measure.(such as staff hours, staff days,

 Precision is consistency that the value of repeated