4.

1 Develop Project Charter

4.2 Develop Project Management Plan
4.3 Direct and Manage Project Work
4.4 Manage Project Knowledge
4.5 Monitor and Control Project Work
4.6 Perform Integrated Change Control
 4.7 Close Project or Phase

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) –
Guide)  – Fifth Edition, Project Management Institute, Inc., 2013, Figure
4-12, Page 100.
 5.2 Collect Requirements

Project Management Institute, A Guide to the Project Management Bo dy of Knowledge, PMBOK(® Guide) –
Guide)  – Fifth Edition, Project Management Institute, Inc.,
2013, Figure 5-4, Page 111.
5.3 Define Scope
5.4 Create WBS
5.5 Validate Scope
5.6 Control Scope
6.1 Plan Schedule Management
7.1 Plan Cost Management
7.4 Control Costs
 Interpretation of EVM

Schedule
Performance
Measures
SV>0 & SVI>1.0 SV=0 & SVI=1.0 SV<0 & SVI<1.0

Ahead Of Schedule
CV >0 & On Schedule Under Behind Schedule
Under Budget
CPI > 1.0 Budget Under Budget

Ahead Of Schedule
CV = 0 & Behind Schedule On
Cost On Budget On Schedule On
CPI = 1.0 Budget
Budget

Ahead Of Schedule
CV < 0 & On Schedule Over Behind Schedule
Over Budget
CPI < 1.0 Budget Over Budget
Project Management Institute, Practice Standard for Earned Value Management , Second Edition , Project Management Institute, Inc. 2011,
Figure 9-2, Page 63.
 8.2 Manage Quality

Project Management Institute, A Guide to the Project Management Body of Knowledge, (PMBOK® Guide) –
Guide)  – Fifth Edition, Project Management Institute,
Inc., 2013, Figure 8-8, Page 243.
8.3 Control Quality
 Keywords
• Prevention & Inspection
• Accuracy : Within Quality Management systems , an assessment of correctness.
• Precision : Within Quality Management
Management systems , a measure of exactness.
exactness.

• Special and Common Cause :

• Common causes of variance are the usual quantifiable and historical variations in a system that are natural. Though a problem, they are
an inherent part of a process.

• Special Cause of Variance,

Variance, refers
refers to unexpected glitches
glitches that affect a process.
process. The term Special Cause of Variance
Variance was coined by W
Edwards Deming and is also known as an ‘Assignable Cause'. These are variations that were not observed previously and are unusual,
non-quantifiable variations.
• They usually relate to some
some defect in the system
system or method. However,
However, this failure can be corrected by making changes
changes in a certain
method, component or process.

• Standard deviation and Sigma Values :

• 1 Sigma : 68.25%
• 2 sigma : 95.46%
• 3 sigma : 99.73%
• 6 sigma : 99.99%
 Organizational Theories

• Maslow
Maslow's
's Hierar
Hierarch
chy
y of Needs
Needs

• Herzbe
Herzberg
rg's
's Hygie
Hygiene
ne Theory
Theory

• Theo
Theory
ry X and
and Theo
Theory
ry Y

• Expect
Expectanc
ancy theory:: You need to give people an expectation of a reward in order to
y theory
motivate them The rewards or awards should be achievable , if they are impossible to
achieve , they will de-motivate them People are motivated by achievements People
“expec
expectt “ to be rewa
reward
rded
ed for
for achi
achiev
evem
emen
ents
ts

• Mc   lelland’s Achieve
Achievement Theory: Peopl
ment Theory: Peoplee need
need achieve
achievement power and affiliation to be
ment,, power
moti
otivated.
ed. Ach
Achiev
ieveme
ement is when
when so
sommeon
eone perperform
orms well
ell and
and is reco
ecognignized for it Power
means
ans he or she has a lotlot of contr
ontrol
ol or inf
influen
uence in the
the comp
ompanyany Af
Afffilia
iliattion,
ion, a stron
trong
g from
bein
being g a part
part of a work
workin
ingg team
team and
and havi
having
ng good
good rela
relati
tion
onsh
ship
ipss with
with cowo
cowork rker
ers.
s.
 Herzberg's Hygiene Theory

Motivator
Freedom to take
decision
Interesting work

Hygiene
Salary
Working
Condition
Having their hygiene factors met does not motivate people , but the absence
of it demotivates and reduces performance.
Project Management Institute, A Guide to the Project Management Bo dy of Knowledge, (PMBOK® Guide) –
Guide)  – Fifth Edition, Project Management Institute, Inc., 2013, Figure 9-7,
Page 267.
 Team Building Stages
Team Leadership
Characteristic
Stages
•Members are
uncomfortable with each
Set Direction
Other Forming •

•Establish Ground
•Not Expressing their ideas
Rules
•Management brought them
•Build Trust
together

•Members stars expressing Storming

their ideas • Build Trust
•High Conflicts • Manage Conflicts
•Low Trust • Enforce Ground Rules

• Trust Starts Building in Norming

• Sense of Community •Remain Involved and
• Co-operation facilitate interactions

Most Productive •Delegate since

•

•Strong Sense of
Performing team is self
Belongingness managed
•Strong Trust
•Document Lesson
Learned
Disbanding the team
•

Adjourning
 9.4 Develop
Develo p Team
Team

Project Management Institute, A Guide to the Project Management Bo dy of Knowledge, (PMBOK® Guide) –
Guide)  – Fifth Edition, Project Management Institute, Inc., 2013, Figure 9-9,
Page 273.
 50%+ of project conflicts

Technical Human
Personality Cost Procedure Priorities Schedules
Opinions Resources

Less common More common

sources of sources of
conflict conflict
 Conflict Resolution Methods

Methods When to apply?

Withdraw / Avoid You wa
want to take some time to collect facts and
build your case/ Don’t care as long as it gets
done.

Smooth/Accommodate Focuses at similarities between the parties ,

rather than on their differences.

Compromise/Reconcile When relation is im

i mportant and matter is not of
high importance, just a little give and take here.

Force/Direct You know you are right, time is less, re

relation is
not important, stakes are high

Collab
laborate/Problem
lem Solve
lve/Confront Stakes are high
igh, and both party trust each other,
collaborate
collaborate to find best option for project
9.6 Control Resources
Few Terms w.r.t. Project Team
• Halo effect :
• Beware of the
halo effect!
effect! E.g. Production Assistant to Supervisor
Supervi sor
• That’s when you put someone in
a position they can’t handle, just because
they’re good at another job.
• Multicriteria decision analysis :
means looking at a bunch of factors when
deciding on who should be part of your
project team. Sometimes teams will use
tools that help them weigh factors like cost,
skills, knowledge, and availability when
deciding on project team needs.
Expected Output - Communications
Communications Management Plan

• Stakeholder communication requirements

• Information to be communicated, including format, content, and level
• The person responsible for communicating the information
• The person or group who will receive the information
• Methods or technologies used to convey the information, such emails, press releases
• Frequency of the communication, such as weekly
• Escalation process
• Resources allocated for communication activities
• Process of Updating Communication Management plan
• Glossary of Communication Terminology
• Flow Charts, Workflows of the information flow
• Constraints derived
Project Management Institute, A Guide to the Project Management Bo dy of Knowledge, (PMBOK® Guide) –
Guide)  – Fifth Edition, Project Management
Institute, Inc., 2013, Figure 10-2, Page 289.
10.2 Manage Communications
11.3 Perform Qualitative Risk Analysis
 Comparison Of Qualitative and Quantitative
Quantitative Approaches

Quantitative Risk Analysis

Qualitative Risk Analysis •Predicts likely project outcomes based on

combined effects of risks
•Addresses individual risks
Addresses •Uses probability distributions to
descriptively characterize
characteriz e the risk’s probability and
•Assesses the discreet probability of impact
occurrence and impact on objective •Uses project model (e.g. Schedule, cost
if it does occur estimate)
•Prioritizes individual risks for •Uses a quantitative method, require
subsequent treatment specialized tools
•Adds to risk register •Estimates the likelihood of meeting targets
•Leads to quantitative risk analysis and contingency needed to achieve
desired level of comfort
•Identifies risks with greatest effects on
overall project risk

Qualitative Risk analysis is always required, Quantitative May not be and is

performed only on higher risk categories.

Project Management Institute, Practice Standard for Project Risk Management , Project Management Institute, Inc., 200 9, Figure 7-1 Page 38.
• Sensitivity analysis
•Sensitiv
Sensitivity Analysis:: Sens
ity Analysis Sensititiv
ivit
ity
y anal
analys
ysis
is is used
used to anal
analyz
yze
e proj
projec
ectt and
and det
determi
ermine
ne how
how sens
sensit
itiv
ive
e it
is to ris
risk. In othe
otherr words,
ds, It is analy
nalyzzed whe
whethether the
the occur
ccurrrenc
ence of a part
partic
icul
ula
ar neg
negativ
tive ris
risk event
would
ould ruin
ruin the
the proj
projec
ect,
t, or mere
merely ly be an inco
inconv
nven
enie
ienc
nce
e

Tornado Diagrams:
Torna
ornado
do diag
diagrrams,
ams, name
named d for the
the funn
funnel
el shap
shapee of thei
theirr bar
bars, are
are one
one way
way to anal
analyz
yze
e proj
projec
ectt sens
sensit
itiv
ivit
ity
y
to cost or other factors. It show
hows how sensitive each anal nalyzed are of the pro
project is to risk. It ranks the
bar
bars from grea
greattest
est to lis
list on the
the proj
proje
ect so that
hat the cha
chart takes
akes on a torna
ornado
do lik
like shape
hape..

• Expect
Expected
ed monet
monetaryary va
value
lue analy
analysis
sis
Expe
Expect
cted
ed mone
monetatary
ry valu
valuee anal
analys
ysis
is ta
takkes unce
uncert
rtai
ainn even
events
ts and
and assi
assign
gnss a most
most lik
likely
ely mone
moneta
tary
ry valu
value
e (i.e
(i.e..
doll
dollar
ar amou
amount
nt).
). It is typi
typica
call
lly
y calc
calcul
ulat
ated
ed by usin
usingg deci
decisi
sion
on tree
treess

• Decisi
Decision
on tree
tree analys
analysis
is
Deci
Decisi
sion
on tree
treess are
are used
used to show
show prob
probab
abil
ilit
ity
y and
and arri
arrive
ve at a doll
dollar
ar amou
amount
nt asso
associ
cia
ated with
with each
each risk
risk..
11.5 Plan Risk Responses
11.6 Implement Risk Responses :
11.7 Monitor Risks
 Eliminate Risks
List Critical
Risks

Reduce
Add Additional Update
Plan for Identify Probability / Impact
Risks Project Plan
Risks Risks of the Risks
to the Wat
Watch-List
ch-List

Keep
Noncritical Identify Develop
Risks Accept Risks Residual Contingency
on the Watch-List
Watch-List Risks Plans
 Types of Fixed Price Contracts :
1. Firm
Firm Fix
Fixed
ed Pri
Price
ce (FF
(FFP)
P) :
• Commonly used
• The fee is fixed
fi xed for the Product or Service
• No Incentives
• Change increases the costs to the buyer

2. Firm Fixed Incentive Fee (FFIP) :

• Incentives and Bonus to the sellers based on performance targets

• Motivates sellers for better performance
• It is the Firm Fixed Price Contract with Incentive attached.

3. Fixed Price with Economic Price Adjustment (FP  – EPA

EPA) :

• Price can be adjusted based on some agreed parameters like

like
• Inflation rate
• Currency rate
• Oil
59
• Metal Index
• Best suited for projects
projects where period spans of number
number of years.
 Expected Output
Output - Procurement
Procurement Management
Management Plan

• Types of contracts to be used

• Risk management issues
• When to use independent estimates
• Procurement Related RACI matrix
• Standardized procurement documents
• Recommendations for Scheduling and performance reporting;
• Level of Details needed in Contracts
• When to use performance bonds or insurance
• List of prequalified sellers
• Procurement metrics to be used to manage contracts and evaluate sellers.60
12.1 Plan Procurement Management :

61
12.2 Conduct Procurements

62
 Supplier Project Team

Performance Change Re
Request Claim / Invoice
Deliverable Report

Buyer Project Team

Accepting / Approve /
Rejecting Performance Raise Change Payment
Reject Change
deliverable Report Request
Request

63
12.3 Control Procurements :
 A. Core
B. Dependent
C. Dominant
D. Dangerous
F E. Discretionary
F. Latent
G. Demanding
D C

G E
B

65
66
67
68
69