1

PROJECT MANGEMNT FRAMWORK AND PROCESES GROUPS

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The Differences Between a Boss and a Leader

*Drives others *Coaches others

*Inspires fear *Inspires enthusiasm
*Blames others *Helps to fix it
*Knows how it’s done *Says “We”
*Depends on authority *Shows how it’s done
*Uses people *Develops people
*Takes credit *Gives credit
*Commands *Asks
*Says, “Go!” *Says, “Let’s go!”
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PMBOK Guide 5Edition

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Project Management International Certificates

Project Management Professional (PMP) ITIL V3 Foundation in IT Service Management

Certified Associate in Project Management (CAPM) ITIL V3 Intermediate Level
PMI Agile Certified Practitioner (PMI-ACP) ITIL V3 Export Certificate
PMI Professional in Business Analysis (PMI-PBA) ITIL V3 Master Qualification
PMI Risk Management Professional (PMI-RMP) ITIL V2 Foundation
PMI Scheduling Professional (PMI-SP) ITIL V2 Practitioner
Portfolio Management Professional (PFMP)
Program Management Professional (PGMP) Earned Value Professional (EVP)
Planning & Scheduling Professional (PSP)
PRINCE2 Foundation Certification (P2F)
PRINCE2 Practitioner Certificate (P2P)
Certified Cost Consultant (CCC)
Federal Acquisition Certification in Program and Project Certified Cost Engineer (CCE)
Management (FAC-P/PM) Certified Cost Technician (CCT)
Certified Estimating Professional (CEP)
IPMA Level A: Certified Projects Director Certified Forensic Claims Consultant (CFCC)
IPMA Level B: Certified Senior Project Manager Certified Portfolio Program & Project Management(C3PM)
IPMA Level C: Certified Project Manager Certified Practising Project Manager (CPPM)
IPMA Level D: Certified Projects Management Associate Certified Practising Project Practitioner (CPPP)
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Project Management Framework

-Project management is the skills, tools and management processes required to

project activities to meet project objective.
-PMI has provided a framework which includes 47 processes.
-Knowledge Area 10.
- Process Group
A process is simply a way of transforming an input into an output using proven
tools.
Initiation, Planning, Execution, Monitoring & Control and Closing.
-Knowledge Area
The knowledge area help you organize by the subject matter you’re dealing
with. Like Scope, Cost, Schedule etc.
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What is a Project?
**A temporary endeavor undertaken to create a unique product, service or result .
**Definite beginning and a definite end.
**Does not mean short duration.
**Produce a product or artifact, quantifiable, an end item or component
item.
**a capability to perform a service, such as call center.
**result, such as research results or documents.
**An improvement in an existing product or service.
“ Some people want it to happen, some wish it would happen, others make it happen
(Michael Jordan) ”
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The Triple Constraints

Time
• Time: Finish on time.
• Cost: Complete within budget.
• Quality: Meet performance requirements
and quality targets.
• Scope: All deliverables are completed.
Quality Cost
Scope

Risk
Customer Satisfaction
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Project VS Operation
Both are planned, executed and controlled

Ongoing
Temporary

Produces the same product, service or

Produces unique product, service or result
result

The purpose is to attain its objective and

then terminate
The objective is to sustain the business
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Subproject:
• A manageable component of a project.
• May be performed by a separate organization.
• Could be a project phase.
• Subprojects are typically referred to as projects.
• What Is Project Management?
• The application of knowledge, skills, tools, & techniques to project activities to meet
project requirements.
• Project management is accomplished through the appropriate application and
integration of the 47 logically grouped project management processes categorized
into 5 process groups.
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PMP-5 Process Groups PMBOK-5

10 Knowledge Areas with 47 Sub-processes

2 Initiating Process Group 2

24 Planning Process Group 24

8 Executing Process Group 8

Monitoring & Controlling
11 Process Group 11

2 Closing Process Group 2

475 Process Groups & 10 KA
I S T C Q H C R P S
(6+6+7+4+3+4+3+6+4+4)
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Who is the Project Manager?

Project manager is a person who is appointed by the implementing institution to achieve the
objectives of the project. A project manager has the overall responsibility for the success of the
project.
•Effective projects management requires that the project manager must acquire the following
three dimensions related to efficient projects management :
Knowledge : Refers to what the project manager knows about project management.
Performance : Refers to what the project manager is able to do or accomplish while applying his or her project management knowledge.
Personal : Refers to how the project manager behaves when performing the project or related activity.
Personal effectiveness encompasses attitudes, core personality characteristics, and leadership, which provides the ability to guide the project
team while achieving project objectives and balancing the project constraints.
The project manager is responsible to satisfy needs: task needs, team needs and individual
needs to achieve project goals.
Project managers need interpersonal skills such as:
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PROJECT MANGER TASKS INITIATING(8):

• Task 1:
Perform the project assessment based on the information available, lessons learned
from past projects, and holding stakeholder meetings in order to support evaluation
and feasibility of new products or services within the given assumptions and/or
constraints.
• Task 2:
Identify key deliverables that are based on business requirements that help in
managing customer expectations and direct achievement of project goals.
• Task 3:
By using appropriate techniques and tools, perform stakeholder analysis to meet
expectations and gain support for the project.
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• Task 4:
Based on the current environment, historical data, organizational factors, and expert
judgment, identify high level risks, assumptions, and constraints to propose an
implementation strategy.
• Task 5:
By compiling and analyzing gathered information, participate in the development of
the project charter to ensure project stakeholders are in agreement on its elements.
• Task 6:
Attain project charter approval from the sponsor, for the purpose of formalizing the
authority assigned to the project manager and gaining acceptance and commitment
for the project.
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• Task 7:
To validate the alignment of the project according to the organizational strategy and
expected value, conduct benefit analysis with relevant stakeholders.
• Task 8:
Ensure common understanding of the key deliverables, the milestones and roles and
responsibilities by informing stakeholders of the approved project charter.
• KNOWLEDGE AND SKILLS:
• Analytical skills.
• Benefit analysis techniques.
• Elements of a project charter.
• Estimation tools and techniques.
• Strategic management.
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Project manager tasks in planning(13):

• Task 1 :
Assess and review the detailed project requirements, assumptions and constraints
with stakeholders based on the project charter, learned lessons and by the use of
requirement gathering techniques to establish detailed project deliverables.
• Task 2 :
Based on the approved project scope and the use of scope management techniques,
develop a scope management plan, to define, maintain, and manage project scope.
• Task 3 :
Based on Project scope, resources, schedule, approved project charter and other
information, develop the cost management plan while using estimating techniques,
to manage project costs.
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• Task 4 :
Based on the approved project deliverables, scope, milestones and resources
management plans, develop the project schedule to manage timely completion of
the project.
• Task 5 :
To create a project organizational structure and provide the required guidance on
how resources will be assigned and managed, develop the human resource
management plan by defining the roles and responsibilities of the project team
members.
• Task 6 :
Based on the stakeholders’ requirements and project organizational structure,
develop the communications management plan to define and manage the flow of
project information.
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• Task 7 :
The procurement management plan should be developed based on the project
budget, scope, and schedule to ensure the project resources that are required are
available.
• Task 8 :
Define the quality standards and develop the Quality Management plan for the
project, based on the project scope, risks, and requirements, to control the cost of
quality and to prevent the occurrence of defects.
• Task 9 :
Define how changes will be addressed and controlled by developing the change
management plan to track and manage change.
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• Task 10:
Risk Management should be planned for by developing a risk management plan that will
identify, analyze, and prioritize project risk; create the risk register; and define risk response
strategies to manage uncertainty and opportunity throughout the project life cycle.
• Task 11 :
According to the applicable policies and procedures, present the project management plan to
the relevant stakeholders according to applicable policies and procedures to obtain approval
to proceed with project execution.
• Task 12 :
Hold the ‘kick of meeting, communicate the start of the project, the key milestones and other
relevant information to engage and inform the stakeholders and gain commitment.
Task 13 :

By analyzing the needs, interests and potential impact, develop the stakeholder management
plan to effectively manage stakeholders’ expectations and engage in project decisions.
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KNOWLEDGE AND SKILLS

• Change management planning.
• Cost management planning, including project budgeting tools and techniques.
• Communications planning .
• Contract types and selection criteria.
• Estimation tools and techniques.
• Human Resource planning
• Lean and decency principles.
• Procurement planning. -Quality management planning.
• Requirements gathering techniques ( e.g. Planning sessions, brainstorming, and focus groups).
• Regulatory and environmental impacts assessment planning.
• Risk management planning. - Scope management planning
• Stakeholder management planning.
• Time management planning, including scheduling tools and techniques.
• Workflow diagramming techniques.
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Project manager domains in execution(7)

• Task 1:
By following the Human Resource and Procurement Management Plans, manage and acquire
project resources to meet the requirements of the project.
• Task 2:
Based on the Project Management Plan, manage task execution by developing and leading the
project team to achieve project deliverables.
• Task 3:
Using the appropriate techniques and tools, implement the quality management plan order to
ensure that work is performed according to required standards.
• Task 4 :
By following the change management plan, implement approved changes and corrective
actions to meet project requirements.
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• Task 5:
Following the Risk Management plan, implement approved actions to minimize the
impact of the risks and take advantage of opportunities on the project.
• Task 6:
Following the Communication Plan, manage the flow of information by following the
communications plan to keep stakeholders informed and engaged
• Task 7:
Following the Stakeholder Management Plan, maintain stakeholder relationships by following
the stakeholder management plan to receive continued support and manage expectations.
KNOWLEDGE AND SKILLS:
* Continuous improvement processes.
* Contract management techniques.
* Elements of a statement of work.
* Interdependencies among project elements.
* Project budgeting tools and techniques.
* Quality standard tools.
* Vendor management techniques.
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Project manager tasks during M $C (7):

• Task 1:
Using appropriate techniques and tools, measure project performance to identify
and quantify any variances and corrective actions.
• Task 2:
Following the Change Management Plan, manage changes to the project to ensure
project goals remain aligned with business needs.
• Task 3:
By using appropriate techniques and tools, verify that project deliverables conform
to the quality standards established in the quality management plan to meet project
requirements and business needs.
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• Task 4:
Monitor and assess risk by determining whether exposure has changed and
evaluating the effectiveness of response strategies in order to manage the
impact of risks and opportunities on the project .
• Task 5:
Review the issue log, update if necessary, and finalize corrective actions by
using appropriate tools and techniques to minimize the impact on the project.
• Task 6:
Capture, analyze and manage the lessons learned, with the use of the lessons
learned management techniques to enable continuous improvement.
• Task 7:
According to the Procurement plan, monitor procurement activities to verify.
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KNOWLEDGE AND SKILLS:

• Performance measurements and tracking techniques (e.g. EV, CPM, PERT, Trend
Analysis).
• Process analysis techniques (e.g. LEAN, Kanban , Six Sigma)
• Project control limits (e.g. Thresholds, tolerance).
• Project finance principles.
• Project monitoring tools and techniques.
• Project quality best practices and standards (e.g. ISO, BS, CMMI, IEEE).
• Quality measurement tools (e.g. Statistical sampling, control charts, flow charting,
inspection, assessment).
• Risk identification and analysis techniques.
• Risk response techniques.
• Quality validation and verification techniques.
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PROJECT MANGER TASKS IN CLOSING(7):

• Task 1:
From relevant stakeholders, obtain final acceptance of the project deliverables to
confirm that the project scope and deliverables were achieved.
• Task 2:
In accordance with the project plan, transfer the ownership of deliverables to the
assigned stakeholders to facilitate project closure.
• Task 3:
Using generally accepted policies and practices, obtain financial, legal, and
administrative closure to communicate formal project closure and ensure transfer of
liability.
• Task 4:
According to the Communications Management plan, prepare and share the final
project report, to document and convey project performance and assist in project
evaluation.
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• Task 5 :
Conduct a comprehensive project review and collate and document lessons learned throughout the project to
update the organization’s knowledge base.
• Task 6 :
Using generally accepted policies and practices, archive project documents and materials to comply with
statutory requirements and for potential use in future projects and audits.
• Task 7 :
Using appropriate techniques and tools, and based on the stakeholder Management plan, obtain feedback from
relevant stakeholders to evaluate their satisfaction.

KNOWLEDGE AND SKILLS:

* Archiving practices and statutes.
* Compliance (statute/ organization).
* Contract closure requirements.
* Close out procedures.
* Feedback techniques.
* Performance measurement techniques (KPI and
key success factors).
* Project review techniques .
* Transition planning technique
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Program
• A program is a group of related project, sub-projects, and program activities
managed in a coordinated way.
• Projects are related through common outcome or collective capability.
• Focus on project interdependencies and help determine the optimal approach for
managing them. Interdependencies such as:
• 1-Resource Constraints. 2-Aligning organizational direction.
3-Resolve issues and change management.
• Portfolio refers to collection of projects or programs and other work that
are grouped together to facilitate effective management of that work to
meet strategic business objectives.
• •It refers to the centralized management of one or more portfolios .It
includesidentifying,prioritizing,authorizing,managing,andcontrollingprojects,
programs,and other related work, to achieve specific strategic business
objectives
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Project Management Office (PMO):

• Management structure that standardizes the project-related governance processes
and facilitates the sharing of resources, methodologies, tools and techniques.
• Provides dedicated training, enterprise-wide project management software,
Coordinates overall project quality standards.
• PMO may have the authority to act as an integral stakeholder and a key decision
maker through the life of the project.
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Types of Project Management Office (PMO) Structures

Supportive
Supportive PMOs provide a consultative role to projects by supplying templates, best
practices, trainings, access to information and lesson learned from other projects.
Such PMO server as a project repository.
Degree of control provided the PMO- Low.
Controlling
Controlling PMOs provide support and require compliance through various means.
Compliance may involve adopting project management frameworks or methodologies
templates, forms, tools and conformance to governance.
Degree of control provided by the PMO – Moderate.
Directive
Directive PMOs take control of the projects by directly managing the projects.
Degree of control provided by the PMO – High.
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Organizational Structure Influences:

• organizational structures:
• The way in which an organization is structured can influence its culture, strategy,
personnel recruitment, and the projects it chooses to do. The main types of
organizational structures are :
• functional organization, the matrix organization, and the project zed
organization.
• Organizational structure is an enterprise environmental factor. It affect the
availability of resources and influence how projects are conducted.
Organizational structures range from functional to projectized, with variety of
matrix structures between them
• Organizations are systematic arrangements of entities(persons and/or
departments)aimedat accomplishing purpose, which may involve undertaking
projects. An organization’s culture and style affect how it conducts projects.
• •Cultures and styles are group phenomena known as cultural norms, which
develop over time. Then or ms include established approaches to initiating and
planning projects, the means considered acceptable forgetting the work done,
and recognized authorities who make or influence decisions.
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•Organizational culture is shaped by the common experiences of members of the

organization and most organizations have developed unique cultures over time by
practice and common usage. Common experiences include, but are not limited to:
- share divisions, mission, values, beliefs ,and expectations;
- regulations ,policies, methods, and procedures;
- motivation and reward systems;
- - risk tolerance;
- view of leadership ,hierarchy ,and authority relationships;
- code of conduct, work ethic, and work hours; and
- operating environments.
•Inlightofglobalization,understandingtheimpactofculturalinfluencesiscriticalinprojectsi
nvolvingdiverseorganizationsandlocationsaroundtheworld.Culturebecomesacriticalfact
orindefiningprojectsuccess,andmulticulturalcompetencebecomescriticalfortheproject
manager
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In weak matrix organization

coordinator & expeditor

-have some authority. -have no authority

-Can make some decision. -act as team assistant .
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Organizational Process Assets :

• Organizational process assets include any or all process related assets, from any or
all of the organizations involved in the project that can be used to influence the
project’s success. These process assets include formal and informal plans, policies,
procedures, and guidelines .The process assets also include the organization’s
knowledge bases such as lessons learned and historical information. Organizational
process assets may include completed schedules .
1.ProcessesandProcedures:
•Organizational standard processes such as standards, policies.
•Standardized guidelines, work instructions, proposal evaluation criteria, and
performance measurement criteria.
•Templates(e.g. Risk, work breakdown structure, project schedule network
diagram, and contract templates).
•Guidelines and criteria for tailoring the organization’s set of standard
processes to satisfy the specific needs of the project.
•Organization communication requirements
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1. Processes and Procedures (Continued):

•Project closure guidelines or requirements.
•Financial controls procedures(e.g., time reporting, required expenditure and
disbursement reviews)
•Issue and defect management procedures.
•Change control procedures.
•Risk control procedures.
•Procedures for prioritizing, approving, and issuing work authorizations.
2.Corporate Knowledge Base:
•Process measurement databases.
•Project files (e.g., scope, cost, schedule).
•Historical information and lessons learned knowledge bases.
•Issue and defect management databases.
•Configuration management knowledge bases.
•Financial databases
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Enterprise Environmental Factors:

• Enterprise environmental factors refer to conditions, not under the control of the
project team, that influence ,constrain, or direct the project. Enterprise
environmental factors are considered inputs to most planning processes, may
enhance or constrain project management options, and may have appositive or
negative influence on the outcome.
1-Organizational culture.
2-Organizational structure.
3-Internal and external political climate.
4-Existing human resources.
5-Available capital resources.
6-Regulatory environment.
7-Financial and market conditions.
• Enterprise environmental factors are an input to 18 of the 47 processes.
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Project Stakeholders:
Individuals and organizations who are actively involved in the project and whose
interests may be positively or negatively affected by the project success or failure.

• Customers and users: Customers are the persons or organizations who will approve
and manage the project’s product ,service, or result. Users are the persons or
organizations who will use the project’s product , service, or result.
• •Sponsor: the individual or group within or external to the performing organization
that provides the financial resources, in cash or in kind, for the project.
• •Portfolio managers/Portfolio review board: Portfolio managers are responsible for
the high –level governance of collection of projects or programs, which may or may
not be interdependent.
• •Program managers: Program managers are responsible for managing related
projects in coordinated way to obtain benefits and control not available from
managing the individually.
• •Project management office(PMO) :is
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Project Management Team: The members of the team who perform project
management activities such as scheduling, budgeting, reporting and control,
communications, risk management and administrative support
Project team: Project team is comprised of the project manager, project management
team, and other team members who carryout the work but who are not necessarily
involved with management of the project.
•Functional managers: functional managers are key individuals who play management
role within an administrative or functional area of the business, such as human
resources or finance.
•Operational Stakeholders: who performant conduct business operations
•Operations management: operations managers are individuals who have
management role in core business area, such as research and development ,design,
manufacturing or testing.
•Sellers: Sellers, also called vendors ,suppliers, or contractors ,are external companies
that enter into contractual agreement to provide components or services necessary
for the project.
•Business Partners: Business partners are external organizations that have a special
relationship with the enterprise, sometimes attained through a certification process.
•
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Organizational Groups: Organizational groups are internal stakeholders who are affected by the
activities of the project team. Examples of various business elements of an organization that
may be affected by the project include marketing and sales, human resources, legal, finance,
operations, manufacturing, and customer service.
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• Partner-Based Projects
• •Project may be established as partnership ,joint venture ,consortium, or alliance
among several organizations through contracts or agreements. In this structure, one
organization takes the lead and assigns project manager coordinate the efforts
among the partners. Partnership-based projects can offer flexibility at lower cost.
These advantages may be offset by the project manager's lower degree of control
over team members and then end for strong mechanisms for communication and
monitoring progress. Partnership projects may be setup to exploit industrial
synergies, to under take ventures that one partner could not afford alone, or for
other political and strategic reasons.
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•Project based organizations(PBOs)

refer to various organizational forms that create temporary systems for carrying out
their work .PBOs can be created by different types of organizations (i.e. Functional
,matrix, orprojectized). The use of PBOs may diminish the hierarchy and bureaucracy
inside the organizations as the success of the work is measured by the final result
rather than by position or politics.
•PBOs conduct the majority of their work as projects and/or provide project rather
than functional approaches .PBOs can refer to either entire firms(as in
telecommunications ,oil and gas, construction, consultancy, and professional
services)multi-firm consortia, or networks; it is also possible that some large project-
based organizations have functional support area sour that the PBO is nested within
subsidiaries or divisions of larger corporations
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Organizational Project Management (OPM)

•OPM is strategy execution framework utilizing project, program, and portfolio
management as well as organizational enabling practices to consistently and
predictably deliver organizational strategy producing better performance, better
results, and sustainable competitive advantage
•Portfolio management aligns with organizational strategies by selecting the right
programs or projects, prioritizing the work, and providing the needed resources,
where as program management harmonizes its projects and program components and
controls interdependencies in order to realize specified benefits. Project management
develops and implements plans to achieve as specifics cope that is driven by the
objectives of the program or portfolio it is subjected to and, ultimately, to
organizational strategies
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Project Governance
• Project governance is an oversight function that is aligned with the organization’s governance
model and that encompasses the project life cycle. Project governance framework provides
the project manager and team with structure, processes, decision-making models and tools
for managing the project, while supporting and controlling the project for successful delivery.
Project governance is a critical element of any project, especially on complex and risky
projects.
Examples of the elements of a project governance framework includes:
1-Project success and deliverable acceptance criteria
2-Process to identify, escalate, and resolve issues that arise during the project
3-Project organization chart that identifies project roles
4-Processes and procedures for the communication of information.
5-Project decision-making processes.
6-Guidelines for aligning project governance and. organizational strategy.
7-Project life cycle approach; 8-Process for stage gate or phase reviews.
9- Process for review and approval for changes to budget, scope, quality, and schedule which
are beyond the authority of the project manager.
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What Is a Deliverable?
• A unique and verifiable product, result, or capability to perform a service that is
required to be produced to complete a process, phase or project.
• A deliverable often marks the end of a phase of the project or a major milestone.
• Phase end = Phase exit, stage gates, or kill points.
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project life cycle:

Any Project has two types of Processes :

Any Project has two types of Processes :

These processes are domain specific and responsible for creation of project products
/ results. Also called “Life Cycle”

Any Project has two types of Processes :

Apply globally and responsible to manager the project throughout the life of project.
Also called “Process Group”
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Life Cycle

Product Life Cycle

Project Life Cycle Operation Life Cycle

Maintenanc
Initiate / Plan / e
Execute / Close Upgrade Disposal
and
Supports

Maintenanc
Upgrade Disposal
e
Projects Project
Projects
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Cost & Staffing levels across the project life cycle

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Impact of Variable Based on Project Progress:

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Project Phases:
• Divides the project into phases that provide better management control and the
appropriate links to the operations of the organization.
• Project Governance Across the Life Cycle.
• Phase-to-Phase Relationship.
• There are two basic types of phase-to-phase relationships:
• Sequential relationship. In sequential relationship, a phase starts only when the
previous phase is complete.
• Overlapping relationship. In an overlapping relationship, phase starts prior to
completion of the previous one.
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Predictive Lifecycle
also known as fully plan-driven) are ones in which the project scope, and
the time and cost required to deliver that scope, are determined as early
in the project life cycle as practically possible.
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Iterative/Incremental Lifecycle :
Iterative and incremental life cycles are ones in which project phases
(also called iterations) intentionally repeat one or more project activities
as the project team’s understanding of the product increases. Iterations
develop the product through a series of repeated cycles, while
increments successively add to the functionality of the product. These
life cycles develop the product both iteratively and incrementally.
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Adaptive/Agile Lifecycle:

(also known as change-driven or agile methods) are intended to respond to high levels
of change and ongoing stakeholder involvement. Adaptive methods are also iterative
and incremental, but differ in that iterations are very rapid (usually with a duration of 2
to 4 weeks) and are fixed in time and cost. Adaptive projects generally perform several
processes in each iteration, although early iterations may concentrate more on planning
activities
. Adaptive methods are generally preferred when dealing with a rapidly changing
environment, when requirements and scope are difficult to define in advance, and
when it is possible to define small incremental improvements that will deliver value to
stakeholders
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Project Management Process Groups

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Project Management Process Groups

Initiating Process Group:
• Defines and authorizes the project or a project phase.
• Planning Process Group:
• Defines and refines objectives, and plans the course of action required to attain the
objectives and scope that the project was undertaken to address.
• Executing Process Group:
• Integrates people and other resources to carry out the project management plan for
the project.
• Monitoring and Controlling Process Group:
• Regularly measures and monitors progress to identify variances from the project
management plan so that corrective action can be taken when necessary to meet
project objectives.
• Closing Process Group:
• Formalizes acceptance of the product, services or result and brings the project or a
project phase to an orderly end.
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Process Groups Interaction:

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Question 1:
• Which of the following is NOT part of the enterprise environmental factors?
A. Lessons learned from previous projects
B. Knowledge of which departments in your company typically work on projects
C. The work authorization system
D. Government and industry standards that affect your project
Question2 :
The project life cycle is comprised of which of the following?
• A. Phases B. Milestones
• C. Estimates D. Deliverables
Question 3:
What type of organization is BEST for managing complex projects involving cross disciplinary
efforts?
A. Projectized B. Functional
C. Line D. Matrix
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Question 4:
Of the following, which is the logical order of the project management processes?
A. Initiating, planning, controlling, executing, closing
B. Planning, initiating, controlling, executing, closing
C. Initiating, planning, executing, controlling, closing
D. Planning, initiating, executing, closing
Question 5:
A program is defined in the PMBOK as?
A. A program consists of a related group of projects and Program management is the
process of managing multiple ongoing projects
B. A number of subprojects divided into manageable components enabling a project
team to ensure the completion of a desired outcome
C. A project plan developed by key management personnel to obtain a desired
outcome
D. The means to subdivide the project into manageable segments
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Question 6 :
You are managing the release of a new drug in the market. Your role is that of a?
A-Functional Manager, because you have good functional knowledge of the
pharmaceutical industry.
B-Project Manager, because you are creating a unique product within specific time
schedules.
C-Operations Manager, because you have to do several repetitive tasks
D-Program Manager, because you have to manage several projects to do your job
effectively.
Question 7 :
Matrix organizations exhibit features of both projectized and functional
organizations. In a weak matrix organization, the role of a project manager may be
that of a:
A-Coordinator
B-Manager with considerable authority
C-Support person
D-Functional manager
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Question 8 . You want to know specifically which business goal a group of projects and programs are going to
accomplish. Which is the best place to look for this information?
A. Project Plan
B. Project Charter
C. Portfolio Charter
D. Program Charter
Question 9 . A project coordinator is having trouble securing programmers for her project. Every time she asks her
boss to give a resource to the project he says that they are too busy to help out with her project. Which
type of organization is she working in?
A. Functional
B. Weak Matrix
C. Strong Matrix
D. Projectized
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Question Answers
1 1
2 A
3 B
4 C
5 A
6 A
7 A
8 C
9 A
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4: INTEGRATION MANGEMNT

AGENDA
1- project selection
2- integration processes
 69

Project selection:
1. Benefit measurement methods: (comparative approach)
• Murder board
• (a panel of people who try to shoot down a new project idea)
• Peer review
• Economic models (described next)
• Scoring models
2. Constrained optimization methods: (mathematical approach)
• Linear programming
• Multi-objective programming
• Integer programming
• Dynamic programming
 70

• Economic Models for Project Selection:

• The following are economic models for selecting a project. As noted previously, such
economic models
• take a comparative approach and fall into the category of benefit measurement
methods.
• Present value .
• Net present value.
• Internal rate of return.
• Payback period.
• Cost-benefit analysis.
 71

Present Value (PV):

Present value means the value today of future cash flows.
PV =FV/(1+r)*n
pv = the present value FV= the future value
r= interest return n= number of years

Question:
What is the present value of $300,000 received three years from now if we
expect the interest rate to be 10 percent? Should the answer be more or
less than $300, 000?
 72

Net Present Value (NPV):

it is the present value of the total benefits (income or revenue) minus the costs
over many time periods.
Profit = Revenue – Costs
Profit Margin = Profit / Revenue
Question :
An organization has two projects to choose from. Project A will take three years to
complete and has an NPV of $45,000. Project B will take six years to complete and
has an NPV of$85,000. Which one is a better investment
 73

Internal rate of return:

the company may look at the returns of the different projects and
then select the higher one .
Question :
An organization has two projects from which to choose: Project A with an IRR of
21percent or Project B with an IRR of 15 percent. Which one is a better option?
Payback Period:
This term refers to the length of time it takes for the organization to recover its
investment in the project before it starts accumulating profit.
Question:
There are two projects from which to choose: Project A with a payback period of six
months or Project B with a payback period of 18 months. Which one should the
organization select?
 74

Cost-Benefit Analysis:

• Cost-benefit analysis compares the expected costs of the project to the potential
benefits it could bring the organization. (For project selection purposes, benefits are
the same as revenue. Remember that revenue is not the same as profit.) This
analysis results in the calculation of a benefit cost ratio, which can be expressed as a
decimal or a ratio. A benefit cost ratio of greater than 1 means the benefits are
greater than the costs. A benefit cost ratio of less than 1 means the costs are greater
than the benefits. A benefit cost ratio of 1 means the costs and benefits are the
same.
 75

Opportunity Cost
Value of the
next best
choice that
one gives up
Project A Project B when making
a decision. A
$1000000 $2000000 cost of m issed
opportunity

Opportunity cost of choosing Project B is

?

Answer: $1000000
 76

Depreciation is the decrease in value of an asset

over a period of time for accounting and tax
purposes.

Initia
Straight line Depreciation: l
cost
Property depreciates the
same amount every year Salvage
value
time

Initia
l
Accelerated Depreciation: cost

Property depreciates more Salvage

value
rapidly in initial years than
time
straight line Depreciation some
examples are :
-Double declining balance
-Sum of the year digits
 77

ROL – Return On Investment - Choose bigger

IRR – Internal Rate of Return - Choose bigger
NPV – Net Present Value - Choose bigger
Payback period - Choose lesser
BCR – Benefit Cost Ratio - Choose bigger
CBR – Cost Benefit Ratio - Choose lesser
 78

Project Integration Management:

Includes the processes and activities needed to identify, define, combine, unify, &
coordinate the various processes & project management activities within the project
management process groups.
• Includes characteristics of unification, consolidation, articulation & integrative
actions that are crucial to project successful completion.
• Primarily concerned with effectively integrating the processes among the project
management process groups that are required to accomplish project objectives
within an organization's defined procedures.
79
 80

4.1 Develop Project Charter:

• The project charter is the document that formally authorizes a project, and
provide the project manager with the authority to apply organizational resources
to the project activities.
• The key benefit is a well-defined project start and project boundaries, creation of a
formal record of the project & a direct way for senior management to formally
accept and commit to the project.
 81

Figure 4-2 Develop Project Charter, Input, Tools and Techniques, and
Output

Inputs Tools & Techniques Outputs

1 –Project
statement of work 1 – Expert judgment 1 – Project charter
2 – Business case 2 – Facilitation
3 – Agreements techniques
4 – Enterprise
environmental
5 – Organizational
process assets
 82

Project charter inputs :

1-Project Statement of Work:

The project statement of work (SOW) is a narrative description of products or services

to be delivered by the project and is provided by the project initiator or customer for
external projects or the sponsor or requesting organization for internal projects. If the
project is being done for an external customer, the SOW may be received from the
customer as part of a bid document.
The SOW details the business need for the project, the product scope description, the
strategic plan, and the characteristics of the product the project will create.
83
 84

• 2.BusinessCase:
• Provide necessary information from business perspective to determine whether or
not the project is worth the investment.
• •Market demand. •Organizational need.
• •Customer request •Technological advance.
• •Legal requirement or ecological impacts or social need
• 3-agreements
• such as contracts
• 4-Enterprise environmental factors
• tell you about how your company does business.
• 5-Organizational process assets
• tell you about how your company normally runs its projects
 85

Develop Project Charter: T & T

1.Expert Judgment:

knowledgeable and experiences persons (groups) from many sources including:

1-Other units within the organization. 2-Consultants.
3-Different Stakeholders (including the customer).
4-Professional and technical associations. 5-Industry groups.
6-Subject Matter Experts 7-Project Management Office.
• 2.FacilitationTechniques:
• 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.
 86

D ev elo p Pro j ect C h a rter : O u tpu ts

1.Project Charter, usually includes
-Project Purpose/Justification . -Measurable Project Objectives.
-High-level requirements . -Assumptions and Constraints.
-High level project description and boundaries.
-High level Risks -Summary budget & milestones
-Initial Stakeholder List -Project Approval Requirements
-Assigned Project Manager
-Name and Authority of the PROJECT MANGER .
 87

Assumptions VS Constraints
Both are planned to resources, delivery, functionality etc.

Things that we believe to be true

without proof
These are project limitations
Temporary decision that is made to
compensate for the information
Examples are Budget, Scope,
unavailable yet
Schedule, Quality, Resources and
Risk
Assumptions which go wrong lead
to risks
 88

Develop Project Management Plan:

• The process of defining, preparing, coordinating and integrating all subsidiary plans.
The key benefit is a central document that defines the basis of all project work.
• Project Plan defines how the project will be executed, monitored and controlled, and
closed.

Inputs
1 .Project Charter
2 .Outputs from Tools & Techniques
other planning
Outputs
processes
3.Enterprise
Environmental
Factors
1 – Expert judgment
4.Organization 2 – Facilitation 1 – 1-Project
Process Assets techniques Management Plan
 89

Develop Project Management Plan: Inputs

1.Project Charter
2.Outputs from other planning processes
3.Enterprise Environmental Factors
4.Organization Process Assets
Develop Project Management Plan: T & T

1.Expert Judgment:
knowledgeable and experiences persons (groups).

Develop Project Management Plan: Output

1-Project Management Plan, includes:

90
 91

Project Baselines

Scope Baseline Consists of WBS , WBS

Dictionary and Scope Statement

Time phased budget.

Cost Baseline (Project budget – management
reserve)

Schedule Baseline Approved Project Schedule

 92

4.3 Direct and Manage Project Work:

• Once you have a Project Management plan, your project is ready to
• begin. And as the project unfolds, it’s your job to direct and manage each activity on
the project, every step of the way. That’s what happens in the Direct and Manage
Project Work process: you simply follow the plan you’ve put together and handle any
problems that come up.
• Direct and Manage Project Work also required review of the impact of all project
changes and the implementation of approved changes:
Correct action: to realign the performance of the project work to the project plan.
Preventive action: to ensure future performance to align with project plan.
Defect repair: to modify a non-conforming deliverable.
• Updates: Changes to formally controlled documents,
• Plans to reflect additional ideas or content.
 93

Figure 4-2 Direct and Manage Project Work: Input, Tools

and Techniques, and Output

Tools &
Inputs Outputs
Techniques
1 – Project
management plan 1 – Expert
1 – Project deliverables
2 – Approved change judgment
2 – Work performance data
requests 2 – Project 3 – Change requests
3 – Enterprise management 4 – Project management
environmental factors information plan updates
5 – Project documents
4 – Organizational system
updates
process assets 3 - Meetings
 94

Direct and Manage Project Work T$T:

2-Project Management Information System

PMIS – Project Management Information System

A collection of one or more software applications and a methodical process for

collecting and using project information. It is part of the enterprise Environmental
Factors (EEF)

Includes…
Scheduling tool
Work authorization system
Configuration Management System
Information Collection & Distribution System
Automated system for measurement data collection for metrics
 95

Direct and Manage Project Work: OUTPUTS

2-Work Performance Data, includes:

Schedule progress showing status information (SPI, CPI, ETC, etc.)

Which Deliverables are completed and which are not.
Extent to which quality standard are met.
Costs authorized and incurred.
Lessons learned.
Resource utilization detail.
• You create work performance data by measuring how the processes
• from each knowledge area are being performed
 96

MAJOR THREE TYPRS OF WORK PERFORMANCE :

Data
Raw observations and measurements data
collected as the project is being executed
e.g. # of defects, # of CRs, % or work
Completed, start & end dates of activities

Information
Work Performance data collected form
Performance monitoring & Controlling processes
e.g. Status of deliverables, status of CRs
implementation
Report
Work performance information in the
form of reports
e.g. Status reports, memos, electronic
dashboards
 97

4.4 Monitor and Control Project Work:

Tracking, reviewing, and reporting the progress to meet the performance objectives.
Corrective and preventive actions are taken to control the project performance to
resolve/prevent deviation between project results and project plan Compares actual
project performance against the project management plan.
Assesses performance to decide whether any corrective or preventive actions are
needed.
Analyzes, tracks, and monitors project risk.
Maintains an accurate and timely information on the project’s deliverables(s).
Provides cost and schedule forecasts.
Monitors the implementation of approved changes when and as they occur.
 98

Figure 4-8, Monitor and Control Project Work: Inputs, Tools &
Techniques, and Outputs

Inputs
Tools & Outputs
1 – Project management Techniques
plan
2 – Schedule forecasts 1 – Expert 1 – Change requests
3 – Cost forecasts judgment 2 – Work
4 – Validated change 2 – Analytical performance
5 – Work performance techniques reports
information 3 – Project 3 – Project
6 – Enterprise management management plan
environmental factors information updates
7 – Organizational process system 4 – Project
assets 4 - Meetings documents updates
 99

4.5 Perform Integrated Change Control:

The process of reviewing all change requests, approving changes & managing changes
to: the deliverables, organizational process assets, project documents & the project
management plan.
Change Control Board (CCB) is responsible for approving or rejecting change requests.
Roles and responsibilities of CCB are defined within configuration control and change
control procedure.
• The Perform Integrated Change Control process:
•Influencing the factors that circumvent integrated change control.
•Reviewing ,analyzing ,and approving change requests promptly.
•Managing the approved changes.
•Maintaining the integrity of baselines by releasing only approved changes.
•Reviewing,approving,ordenyingallrecommendedcorrectiveandpreventiveactio
ns.
•Coordinating changes across the entire project.
•Documenting the complete impact of change requests
 100

Change may be requested from any stakeholder involved in the project.

•Every documented change request needs to be either approved or rejected by a
responsible individual, usually the project sponsor or project manager
IntegrateChangeControlIncludesassignedChangeControlresponsibleforapprovingorreje
ctingchangerequests.
•Change Request normally change the performance against baseline not the baseline
itself.
•Roles& Responsibilities of Change Control Board(CCB) is clarified in the Change
Management Plan.
Objectives of Configuration Management System:
•Establishing methods to consistently identify and request changes to established
baselines, and to assess the value and effectiveness of those changes.
•Providing opportunities to continuously improve the project by considering the
influence of each change.
•Providing mechanism for the project management team to consistently communicate
with stakeholders about all approved and rejected changes.
 101

• Configuration Management Activities:

• Configuration identification: Identification and selection of 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
appropriated 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 verification and audit. Configuration verification and configuration
audit ensure the composition of 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
•
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103
 104

Figure 4-5 Perform Integrated Change Control: Inputs, Tools &

Techniques, and Outputs

Inputs Outputs
Tools & Techniques
1 – Approved
1 – Project change requests
management plan 2 – Change log
2 –Work performance 1 – Expert 3 – Project
reports judgment management plan
3 - change requests 2 – Meetings updates
4 – Enterprise 4 – Project
3 – Change control
environmental factors documents
tools
5 – Organizational updates
process assets
 105

Project Management LOGS

Change Log – Used to document changes that occur during a project.

Issue Log – Used to update the project issues and their status
Assumptions Log – Used to update the project assumptions which are factors in the
planning process that is considered to be true without proof
 106

4.6 Close Project:

The process of finalizing al activities across all of the project management process
groups to formally close the project or phase
Provide lessons learned, formal ending of project work and release of organization
resources to pursue new endeavors.
 107

Review lesion
learned
Obtain approval
Close contracts

How to close Make payment

Transition support
the project. Archive document
Finalize reports

Celebrate
 108

Figure 4-12. Close Project or Phase:

Inputs, Tools & Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – Expert judgment
1 –Project 2 – Analytical 1 – Final product,
management plan techniques service, or result
2 – Accepted 3 - Meetings transition
deliverables 2 – Organizational
3 – Organizational process update
process assets
 109

4.4.2.2 Analytical Techniques

Analytical techniques are applied in project management to forecast potential
outcomes based on possible variations of project or environmental variables and their
relationships with other variables. Examples of analytical techniques used in projects
are:

Regression Analysis
Causal Analysis
Root Cause Analysis

Analytical Variance Analysis

Techniques Trend Analysis
Reserve Analysis
Fault Tree Analysis (FTA)
Failure Mode & Effect Analysis
(FMEA)
 110

• Close Project or Phase: Outputs

• 1.Final product, service or result transition
• 2.Organizational process assets updates
• •Project files; project management plan and project documents
• •Project or phase closure documents.
• •Historical information.
• Work Authorization System :
• It is collection of formal documented procedures that defines how project work will
be authorized (committed) to ensure that the work is done by the identified
organization, at the right time, and in the proper sequence. It includes the steps,
documents, tracking system, and defined approval levels needed to issue work
authorizations.
 111

Question 1 :
You are the project manager of a project and one of the functional managers wants to make a major scope
change during the execution of the project. What should be your action?
a. Prepare an impact detail of the change for the functional manager
b. Refuse the change c. Discuss with the sponsor d. Ignore the request

Question 2 :
What is a recommended method for controlling change within a project?
A. Have only the project manager able to initiate change
B. Have each change approved or rejected through a formal change control process
C. Allow each project member ultimate control of changes within their realm of the project
without a review process D. Freeze scope and allow absolutely no changes
• Question 3 :
You are reaching project completion, and want to understand whether your project was
successful. In this context, for a project to be successful, what is the primary requirement?
• A. Customer satisfaction. B. Exceeding customer expectations.
• C. Meeting the cost and schedule estimates. D. Satisfying the requirements of the project
sponsor.
 112

Question 4 :
In the process of directing managing the project work, your project team may
request changes to expand or modify project scope, policies, procedures, project
cost, or budget. Which of the following is NOT a request for a change?
A. Direct or indirect. B. Externally or internally initiated.
C. Optional or legally mandated. D. Formal or informal.
Question 5 :
You’ve just received a change request. This means:
A. The project charter is complete, but the work cannot begin yet because you need to
make a change to the scope baseline.
B. You are in the Direct and Manage Project Work process, and you can implement the
change now.
C. The change needs to be approved before it can be implemented.
D. There is a defect in a deliverable that must be repaired.
 113

Question 6 :
In the closure stage of your project, you are interacting with your team create
lessons learned documentation, which will include recommendations to improve
performance of future projects. Which of the following will you NOT include in the
lessons learned documentation?
A. Cause of variances. B. Justification for corrective action chosen.
C. Only positive aspects of the project which can be used by others in the company.
D. Reasons for cost variances if the project is over-budget.
Question 7 :
There are three projects:
Project A has an investment of $ 3,000,000 and NPV of $ 300,000.
Project B has an investment of $ 2,000,000 payback period of 2 years and NPV of $ 200,000.
Project C has an investment of $ 1,000,000 payback period of 2 years and NPV of $ 100,000.
Which project should be selected if Net Present Value criteria is used for selection?

1- Project A 2 - Project B
3 - Project C
4 - Project A, B or C can be selected because all of them have equal value
 114

• Question 8
You’re managing a graphic design project. One of your team members reports
that there is a serious problem, and you realize that it will cause a delay that
could harm the business of the stakeholders. Even worse, it will take another
two days for you to fully assess the impact—until then, you won’t have the
whole story. What is the BEST way to handle this situation?
A. Create a change request document and submit it to the change control meeting.
B. Pull out the project charter and show them that you have authority to make
decisions.
C. Meet with the stakeholders and tell them that there’s a problem, and you need
two more days to get them the information they need.
D. Update the lessons learned and add it to your organizational process assets.
Question 9: You’re a project manager on a construction project. The electrician has started
laying out the wiring, when the client comes to you with a change request. He needs
additional outlets, and you think that will increase the cost of the electrical work. What is the
first thing you do?
A. Refuse to make the change because it will increase the cost of the project and blow your
budget.
B. Refer to the Project Management plan to see how the change should be handled.
C. Consult the contract to see if there is a clause.
D. Make the change, since the client requested it.
 115

Question Answers
1 A
2 B
3 A
4 D
5 C
6 C
7 1
8 C
9 B
 116

5:SCOPE MANEGEMENT

- Project scope management includes the processes required to ensure that the
project includes all the work required, and only the work required, to complete
the project successfully.
- Managing the project scope is primarily concerned with defining and controlling
what is and is not included in the project

What is Project Scope?
Product Scope
-Features and functions that characterize a
product, result or service.
-Processes, tools and techniques required
vary by application area – defined as part of
the product life cycle
-Defined in product life cycle.
-Completion of product scope measured
against the product requirements
-A product may have several subsidiary
components with their own separate .
117
Project Scope
-Work that must be done to deliver a
product with the specified features and
functions.
-Processes, tools and techniques
required vary by application areas –
defined in project life cycle
-Defined in project life cycle.
-Completion of project scope measured
against the project management plan
-A project generally results in a single
product or deliverable.
118
119
 120

5.1 Plan Scope Management:

• The process of creating a scope management plan that documents how the project
scope will be defined, validated, and controlled and managed .

Inputs Outputs
Tools & Techniques
1 –Project
management plan
1 – scope
2 – project charter
management plan
3 – enterprise 1 – Expert judgment 2 – requirements
environmental 2 – Meeting management plan
factors
4 – Organizational
process assets
 121

Plan Scope Management: T & T

1-Expert Judgment:
• knowledgeable and experiences parties. Expert judgment refers to input received
from knowledgeable and experienced parties. Expertise may be provided by any
group or person with specialized education, knowledge, skill, experience, or training
in developing scope management plans.
2-Meetings:
• Project teams may attend project meetings to develop the scope management plan.
Attendees at these meetings may include the project manager, the project sponsor,
selected project team members, selected stakeholders, anyone with responsibility
for any of the scope management processes, and others as needed.
 122

Plan Scope Management: Output

1.Scope Management Plan. It includes:
• Process for preparing a detailed project scope statement.
• Process to enable the creation of WBS.
• Process to establish how the WBS will be managed.
• Define formal acceptance criteria of deliverables.
• How change requests will be applied to scope.
2.Requirements Management Plan:
• describes how requirements will be analyzed, documented, and managed. It includes, but not
limited to:
• How requirements activities will be planned, tracked and reported.
• Configuration management activities.
• Requirements prioritization process.
• Product metrics
• Traceability structure
 123

5:4 Collect requirements:

• The process of determining, documenting and managing stakeholder needs to meet
project objectives.
• The key benefit is to provide the basis for defining and managing project scope.
• Requirements includes the quantified and documented needs and expectations of
the sponsor, customer, and other stakeholders.
• Requirement must be analyzed and recorded in a clear and detailed way to be
measured.
• The phase-to-phase relationship strongly influences how requirements are managed.
124
 125

Figure 5-4. Collect Requirements: Input, Tools &

Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – interviews
2 – focus groups
1 – scope management 3 – facilitated workshops
plan 4 – group creativity techniques
2 – requirements 5 – group decision-making
management plan techniques
3 – stakeholder 6 – questionnaires and surveys 1 –requirements
management plan 7 – observations documentation
4 – project charter 8 – prototypes 2 – requirements
5 – stakeholder register 9 – benchmarking traceability matrix
10 – context diagrams
11 – document analysis
 126

Collect Requirements: T & T

1.Interviews:
A formal or informal approach to obtain information
from stakeholders by talking to them directly.
2.Focus groups:
bring together prequalified stakeholders and subject matter experts to learn about
their expectations and attitudes about a proposed product, service or result.
3.Facilitated Workshops:
Focused session with key cross-functional stakeholders to define product requirements.
Fo r example, facilitated workshops
1- called joint application design/development (JAD):
sessions are used in the software development industry. These facilitated
sessions focus on bringing business subject matter experts and the
development team together to improve the software development process
 127

2- quality function deployment (QFD):

is another example of a facilitated workshop technique that helps determine critical
characteristics for new product development.
3-voice of the customer (VOC):
These needs are then objectively sorted and prioritized, and goals are set for achieving them.
4.Group Creativity Technique:
• Used to identify project and product requirements. Also, used to generate ideas within a
group of stakeholders.
1- Brainstorming. A technique used to generate and collect multiple ideas related to project
and product requirements. WITHOUT VOTING $ PRORITIZATION.
2-Nominal group technique. is a way of reaching people agreement on some
ideas. Like brainstorming + VOTING =PRORITIZATION
3- Idea/mind mapping: brainstorming sessions ideas sorted in single map.
4-Affinity diagram:A technique that allows large numbers of ideas to be classified into
groups for review and analysis.
 128

5- Multicriteria decision analysis:

A technique that utilizes a decision matrix to provide a systematic analytical approach for
establishing criteria, such as risk levels, uncertainty, and valuation, to evaluate and rank many
ideas.
5.Group Decision Making Techniques:
Used to asses multiple alternatives that will be used to generate, classify, and prioritize product
requirements.
1-Unanimity. A decision that is reached whereby everyone agrees on a single course of action.
2-Majority : decision that is reached with support obtained from more than 50 % of the
members of the group.
3-Plurality : A decision that is reached whereby the largest block in a group decides, even if a
majority is not achieved.
4-Dictatorship : In this method, one individual makes the decision for the group.
 129

6.Questionnaire and Survey :

are written sets of questions designed to quickly accumulate information from a large
number needed, when respondents are geographically dispersed, and where statistical
analysis is appropriate. of respondents, are most appropriate with varied audiences,
when a quick turnaround is
7. Observations:
provide a direct way of viewing individuals in their environment and how they perform
their jobs or tasks and carry out processes.
. Observation is also known as “job shadowing.”.
8.Prototypes:
is a method of obtaining early feedback on requirements by providing a working
model.
9-Benchmarking :
involves comparing actual or planned practices, such as processes and operations, to
those of comparable organizations to identify best practices
 130

10.Context Diagrams :
a scope model. It is visually depict the product scope by showing a business system
(process, equipment, computer system, etc.), and how people and other systems
(actors) interact with it.
Context diagrams show inputs and outputs to the system .

11.Document Analysis:
used to elicit requirements by analyzing existing documentation and identifying
information relevant to the requirements.
Examples :
business plans, marketing literature, agreements, requests for proposal, current
process flows, logical data models, business rules repositories, application software
documentation, business process or interface documentation.
 131

Collect Requirements: Outputs

1.Requirements Document:
Describes how individual requirements meet the business need for the project.

2.Requirements Traceability Matrix:

The requirements traceability matrix is a grid that links product requirements from
their origin to the deliverables that satisfy them.
 132

5.3 Define Scope:

The Define Scope process selects the final project requirements from the requirements
documentation delivered during the Collect Requirements process. It then develops
detailed description of the project and product, service, or result.
The preparation of detailed project scope statement is important to project success and
build Aupon outputs, assumptions, and restrictions that are documented during the
beginning of the project

Benefits:
◦Improves accuracy of cost, duration, and resource estimates .
◦Defines baseline for performance measurement and control.
◦Facilitates clear responsibility assignments.
•Poor scope definition results in:
◦Higher final project costs. ◦Changes that disrupt the project rhythm .
◦Rework. ◦Increase in project time.
◦Lower productivity. ◦Lower morale of workforce.
 133

Inputs Tools & Techniques Outputs

1 – Expert judgment
1 – scope management 2 – product analysis
plan 3 – Alternatives
2 - Project charter 1 – project scope
generation statement
3 – Requirements 4 – facilitated
documentation 2 – project documents
workshops updates
4 – Organizational
process assets
 134

Define scope T$T:

1.expert judgement :
2.Product Analysis:
Involves developing a better understanding of the product of the project by asking
questions about the product and forming answers to describe the use, characteristics,
and other relevant aspects of the product that is going to be manufactured .
•Techniques used:
◦Product breakdown . ◦Systems analysis. ◦Requirements analysis.
◦Systems engineering. ◦Value engineering . ◦Value analysis
3.Alternatives Identification:
Is a technique used to develop as many potential options as possible in order to identify
different approaches to execute and perform the work of the project. A variety of
general management techniques can be used, such as brainstorming, lateral thinking,
analysis of alternatives
4:faclitiation workshop:
 135

Define Scope: Outputs:

1.PROJECT Scope Statement:
describes project’s deliverables and the work required to create those deliverables.
 136

PROJECT CHARTER VS. PROJECT SCOPE STATEMENT

Project Charter Project Scope Statement

Project purpose or justification. Project scope description
Measurable project objectives and related (progressively elaborated)
success criteria.
High-Level requirements Acceptance criteria
High-Level project description. Project deliverables.
High-Level risk. Project exclusions.
Summary milestone schedule Project constraints.
Summary budget. Project assumptions.
Stakeholder list.
Project approval requirements (what constitutes
success, who decides it, who signs off)
Assigned project manager, responsibility, and
authority level.
Name and authority of the sponsor or other
person(s) authorizing the project charter.
 137

Statement of
Low level of detail work

Project charter

Requirements

Preliminary scope
statement

Scope statement

Work breakdown
High level of detail
structure
 138

5.4 Create WBS:

Definition: WBS is a hierarchical decomposition of the total scope of work to be carried

out by the project team to accomplish the project objectives and create the required
deliverables.
•The WBS is finalized by assigning each work package to a control account and
establishing a unique identifier for that work package from a code of accounts.
•These identifiers provide a structure for hierarchical summation of costs, schedule, and
resource information.
•Control accounts are placed at selected management points in the WBS.
- 1 0 0 % r u l e comes in WBS
● Supports documentation of the accountability and responsibility for the various deliverables
by having a direct relationship among the WBS elements related to the Organizational
Breakdown Structure (OBS) identified through the Responsibility Assignment Matrix (RAM).
● Provides a structure for organizing information regarding the project’s progress, periodic
status, and projected performance for which a project manager is responsible.
● Supports tracking of risks to assist the project manager in identifying and implementing
responses necessary to achieve desired outcomes
 139

BREAKDOWN STRUCTURES USED IN PROJECTS

Work Breakdown structure (WBS) The WBS is a hierarchical decomposition of the total scope of work
to be carried out by the project team to accomplish the project
objectives and create the required deliverables.

Resource Breakdown Structure (RBS) A hierarchical representation of the project organization that
illustrates the relationship between project activities and the
organizational units that will perform those activities.

Organizational Breakdown Structure The resource breakdown structure is a hierarchical representation

(OBS) of resources by category and type.

Risk Breakdown Structure (RBS) A hierarchical representation of risks according to their risk
categories.
 140

Figure 5-9. Create WBS: Input, Tools & Techniques, and Outputs

Inputs Outputs
Tools & Techniques

1 – scope
1 – scope
management plan.
2 Project scope baseline.
1 – Decomposition.
statement. 2 – project
2 – Expert judgment.
3 – Requirements documents
documentation. updates.
4 – Enterprise
environmental.
5 – Organizational
processes assets.
 141

Create WBS: T & T:

1-Decomposition:
The subdivision of project deliverables into smaller, more manageable components. The
work package level is the lowest level in the WBS, and is the point at which the cost an
activity durations can be reliably estimated and managed. The level of detail for work
packages will vary with the size and complexity of the project.
2.Expert Judgment:
Create WBS: Outputs
1.Scope Baseline:
is the approved version of a scope statement, work breakdown structure (WBS), and its
associated WBS dictionary, that can be changed only through formal change control
procedures and is used as a basis for comparison. It is a component of the project
management plan.
1-Project Scope Statement
2-WBS
3-WBS Dictionary
 142

WBS dictionary. The WBS dictionary is a document that provides detailed deliverable, activity, and scheduling
information about each component in the WBS. The WBS dictionary is a document that supports the WBS.
Information in the WBS dictionary may include, but is not limited to:
• Code of account identifier,
• Description of work,
• Assumptions and constraints,
• Responsible organization,
• Schedule milestones,
• Associated schedule activities,
• Resources required,
• Cost estimates,
• Quality requirements,
• Acceptance criteria,
• Technical references, and
• Agreement information.
 143

5.5 Validate Scope:

• Formalizing acceptance of the completed project deliverables.

• Includes reviewing deliverables with the client and obtaining formal acceptance of
deliverables.
• Scope Validate is concerned with acceptance of deliverables while
• quality control is concerned with correctness of the deliverables and meeting quality
requirements.
• If the project is cancelled/terminated before completion, Verify Scope is performed
to show where the Project was in relation to the Scope when it ended.
• If we don't receive a final sign off from our customer; we have to escalate the issue
to our Management.
 144

Figure 5-14. Validation Scope: Input, Tools & Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – inspection
1 – project 2 – Group
management plan decision-making 1 – accepted
2 – requirements techniques deliverables
documentation 2 – change requests
3 – requirements 3 – work
traceability matrix performance
4-verified information
deliverables. 4 – project
documents updates
 145

Verified Deliverables:
Verified deliverables are project deliverables that are completed and checked for
correctness through the Control Quality process.
Inspection:
includes activities such as measuring, examining, and validating to determine whether
work and deliverables meet requirements and product acceptance criteria. Inspections
are sometimes called reviews, product reviews, audits, and walkthroughs.
Good change
A good change makes the product better with very little downside. It doesn’t cost more
time in the schedule or more money from the budget, and it doesn’t destabilize
the product or otherwise threaten its quality.
Bad change
A bad change is one that might seem from the outside like a good idea but ends up
making an impact on the project constraints. Here are a couple of examples:
 146

Direct and manage project work Deliverables

Verified
Control Quality Deliverables

Validate scope Accepted

Deliverables

Close project or phase

 147

5.6 Control Scope

Monitoring the status of the project & products scope Managing changes to scope
baseline Ensure all requested changes and recommended corrective or preventive
actions are processed through the “Perform Integrated Change Control” process.
**Uncontrolled changes are often referred to as project
scope creep.
This happens when you think you know the impact of a change so you go ahead, but it
turns out that that change leads to another one, and since you are already making the
first change, you go with the next. Then another change comes up, and another, and
another, until it’s hard to tell what the scope of the project is.
Gold plating
Sometimes people think of a really great improvement to the product and go ahead
and make it without even checking the impact. In software, this can happen pretty
easily. A programmer thinks of a way to make a feature better, for example, and just
implements it, without
talking it over with anybody. This may sound good, but it’s not—because now you have
to pay for these features you never asked for.
 148

Figure 5-16. Control Scope: Input, Tools & Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – Project
management plan 1 – Variance 1 – Work performance
2 – requirements analysis information
documentation 2 – change requests
3 – requirements 3 – Project
traceability matrix management plan
4 – work performance updates
data 4 – project documents
5 – Organizational updates
process assets 5 – Organizational
process assets update
 149

• Variance analysis
• There’s only one tool in the Control Scope process:
• variance analysis. This is where you constantly compare the information that you’re
gathering about the way the project’s going to affect your baseline
• -The goal of Control Scope is updating the scope, plan, baseline, and WBS info
• -EVERY deliverable should be inspected, including all project management
documents and everything produced by the team
 150

Question 1:
Which of the following processes is not a part of the Project Scope Management?
A. Create WBS B. Control Quality
C. Control Scope D. Collect Requirements
Question 2:
Uncontrolled project scope changes are often referred to as ________ .
A. Scope creep B. Scope verification
C. Value Added Scope D. Scope control
Question3:-
Which is the BEST description of project scope?
A. All of the features and deliverables your project will deliver
B. All of the products your project will make
C. All of the people involved in your project
D. All of the work you will do to build the project deliverables
 151

Question 4:-
During the Validate Scope process, you formalize acceptance of the project deliverables and keep
the project focused on the business need for which it was undertaken. This should be done?
A-At the beginning of the project B-At the end of the project
C-When required by the project sponsor
D-After getting verified deliverables from the Control Quality process

QUESTION 5:
The best tool in collecting requirements for a cross-functional project is:
A. Facilitated Workshops B. Interviews
C. Surveys D. Brainstorming.
Question 6:
Linda is a project manager in charge of an online banking project. The project has completed phase
1 and is moving into the next phase of the project. Which of the following processes must be
carried out first for the phase 2?
A. Define Scope B. Identify Stakeholders
C. Develop Project Charter D. Develop Project Management Plan
 152

QUESTION 7:
As the project manager for a large, complex project, you have been getting
complaints from your team, including some of the management team, about all the
time being spent on planning. You know that by spending time following the
appropriate planning processes, you can prevent many problems during execution.
This will save time in the later stages of the project. One of the primary complaints
you are hearing is related to the time it takes to create the Work Breakdown
Structure (WBS). You are explaining the importance of the WBS to your project team
members. Which of the following statements about the WBS is incorrect?
A-It is a hierarchical decomposition of project work.
B-Planned work contained in the lowest level WBS components are called WBS
dictionaries.
C-The WBS subdivides the project work into smaller, more manageable pieces of
work.
D-The WBS organizes and defines the total scope of the project work.
 153

• Question 8 :You are managing a software project. Your team has been working for
eight weeks, and so far the project is on track. The lead programmer comes to you
with a problem: there is a work package that is causing trouble. Nobody seems to
know who is responsible for it, the accounting department does not know what
cost center to bill it against, and it’s not even clear exactly what work should be
performed. Which of the following would BEST help this situation?
• A. Alternatives analysis
• B. WBS dictionary
• C. Scope Management plan
• D. Scope validation
• Question 9 The goal of Validate Scope is:
• A. To inspect the scope statement for defects so that it is correct
• B. To gain formal acceptance of the project deliverables from the sponsor and
stakeholders
• C. To get everyone in the project working together toward a common goal
• D. To verify that all PMBOK Guide processes are complied with
 154

Question Answer

1 B

2 A

3 D

4 D

5 A

6 B

7 B

8 B

9 B
155
 156

6: PROJECT TIME MANGEMNT

AGENDA :
1- time
processes
2- Q
157
 158

Time management helps with aggressive timelines

Since there are so many different people involved in making the wedding go smoothly, it takes a lot of planning to make sure
that all of the work happens in the right order, gets done by the right people, and doesn’t take too long.
That’s what the Time Management knowledge area is all about

6.1 Plan Schedule Management :

Plan Schedule Management is the process of establishing the policies, procedures, and
documentation for planning, developing, managing, executing, and controlling the
project schedule. The key benefit of this process is that it provides guidance and
direction on how the project schedule will be managed throughout the project.
 159

Figure 6-3. Schedule Management: Input, Tools & Techniques, and

Outputs

Tools &
Inputs Outputs
Techniques
1 – Project
management plan
2 – Project charter
3 – Enterprise 1 – Export
environmental judgment
factors 2 – Analytical
4 – Organizational techniques 1 – Schedule
process assets 3 - Meetings management plan
 160

6.1 Plan Schedule Management T$T:

6.1.2.1 expert judgment :
• Ask somebody who has done this before to give an opinion
• on what activities will be needed to get the job done.
6.1.2.2 Analytical Techniques:
• The Plan Schedule Management process may involve choosing strategic options to
estimate and schedule the project such as: scheduling methodology, scheduling tools
and techniques, estimating approaches, formats, and project management software.
The schedule management plan may also detail ways to fast track or crash) the
project schedule such as undertaking work in parallel. These decisions, like other
schedule decisions affecting the project, may affect project risks.

6.1.2.3 meeting:
 161

Plan Schedule Management: Output

 162

6.2 Define Activities:

Identify the specific actions to be performed to produce the project deliverables-
Activities provide a basis for estimating, scheduling, executing and monitoring and
controlling the project work.

Figure 6-5. Define Activities : Input, Tools &

Techniques, and Outputs
Tools &
Inputs Outputs
Techniques
1 – Schedule management plan
2 – Scope baseline 1 – Decomposition 1 – Activity list
3 – Enterprise environmental 2 – Rolling wave 2 – Activity
factors planning attributes
4 – Organizational process 3 – Expert judgment 3 – Milestone list
assets
 163

Define Activities T $ T:

1:Decomposition:
• A technique used for dividing and subdividing the project scope and project
deliverables into smaller, more manageable parts.
•Subdivides the project work packages into activities .
•Provides better management control .
•Leads to activities, the lowest level of the work packages in the Define Activities
process
•Leads to the work package, the lowest level in the Work Breakdown Structure (WBS)
in the Create WBS process, where the deliverables are identified.
•Process can involve team members. This can lead to better and more accurate
results.
2: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.
3: expert judgment :
 164

6.2.3 Define Activities: Outputs

6.2.3.1 Activity List:
• This is a list of everything that needs to be done to complete your project.
• This list is lower-level than the WBS. It’s all the activities that must be accomplished to
deliver the work packages
6.2.3.2 Activity attributes
• Here’s where the description of each activity is kept. All of the information
• you need to figure out the order of the work should be here, too. So any predecessor
activities, successor activities, or constraints should be listed in the attributes, along with
descriptions and any other information about resources or time that you need for
planning.
6.2.3.3 Milestone list
• All of the important checkpoints of your project are tracked as milestones.
• Some of them could be listed in your contract as requirements of successful completion;
some could just be significant points in the project that you want to keep track
• of. The milestone list needs to let everybody know which are required and which are not.
 165

6.3 Sequence Activities:

• Identifies and documents relationships among project activities
• Uses logical relationships
• Can be performed by using manual or automated techniques or project management
software
 166

Figure 6-7. Sequence Activities : Input,

Tools & Techniques, and Outputs

Inputs Tools & Outputs

1 – Schedule Techniques
management plan
2 – Activity list 1 – Project
1 – Precedence schedule
3 – Activity attributes diagramming network
4 – Milestone list method (PDM)
5 – Enterprise diagrams
2 – Dependency 2 – Project
environmental factors determination
6 – Enterprise documents
3 – leads and logs updates
environmental factors
7 – Organizational
process assets
 167

Sequence Activities: T & T:

• 1.Precedence Diagramming: Activity-on-node (AON)
• Activity on Node (AON) or Precedence Diagramming Method (PDM) showcases the
inter-dependencies among various project activities.
 168

6.3.2.2 Dependency Determination :

 169

6.3.2.3 Leads and 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.
 170

6.3.3 Sequence Activities: Outputs

• 6.3.3.1.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.
A project schedule network diagram is produced manually or by using project
management software.

6.3.3.2 Project Documents Updates

Activity lists, Activity attributes, Milestone list, and Risk register

 171

6.4 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.

Figure 6-12. Estimate Activities Resources : Input, Tools & Techniques, and Outputs

Inputs
Tools & Techniques Outputs
1 – Schedule management plan
2 – Activity list
3 – Activity attributes
4 – Resource calendars 1 – Expert judgment 1 – Activity resource
5 – Risk register 2 – Alternative analysis requirements
6 – Activity cost estimates 3 – Published 2 – Resource
7 – Enterprise environmental estimating data breakdown
factors 3 – Project
4- Bottom up
8 – Organizational process
estimating documents updates
assets
 172

6.4.1 Estimate Activity Resources: Inputs

• 6.4.1.4 Resource Calendars :
• When you plan out a project, you need information about what
• resources you can use for various activities, and when they’re available to you .
6.4.2 Estimate Activity Resources: Tools and Techniques
• 6.4.2.1expert judgment :
• means bringing in experts who have done this sort of work before and getting their
• opinions on what resources are needed.
• 6.4.2.2 Alternative Analysis:
Many schedule activities have alternative methods of accomplishment. 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..
 173

6.4.2.3 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 for different countries and
geographical locations within countries.

6.4.2.4 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.

6.4.2.5 Project Management Software:

• Project management software, such as a scheduling software tool, has the capability to help
plan, organize, and manage resource pools and develop resource estimates.
 174

Estimate Activity Resources: Outputs

• 6.4.3.1 Activity Resource Requirements :

• Activity resource requirements identify the types and quantities
• of resources required for each activity in a work package.
• 6.4.3.2 Resource Breakdown Structure:
• Is a hierarchical representation of resources by category and type
• Helps organize and report project schedule data with resource
• utilization information.
• 6.4.3.3 project document update:
• The project documents that may be updated include:
• •Activity list.
• •Activity attributes.
• •Resource calendars .
 175

6.5 Estimate Activity Durations:

Estimate Activity Durations is the process of estimating the number of work periods
needed to complete individual activities with estimated resources.
 176

Figure 6-12. Estimate Activities Resources Durations

: Input, Tools & Techniques, and Outputs

Tools & Outputs

Inputs
Techniques

1 – Expert
1 – Schedule management plan judgment 1 – Activity
2 – Activity list 2 – Analogous duration
3 – Activity attributes estimating estimates
4 – Activity resource requirements 3 – Parametric 2 –Project
5 – Resource calendars estimating documents
6 – Project scope statement 4 – Three-point updates
7 – Risk register estimating
8 – Resource breakdown structure 5 – Group decision-
9 – Enterprise environmental making techniques
factors 6 – Reserve
10 – Organizational process assets analysis
 177

6.5.2 Estimate activity duration tools $technique:

6.5.1 expert judgement :will come from your project team members who are familiar
with the work that has to be done. If you don’t get their opinion, then there’s a huge
risk that your estimates will be wrong!
6.5.2.2 Analogous Estimating (top down estimation ):
•*A technique for estimating the duration or cost of an activity or a project using
historical data from a similar activity or project.
•It is a gross value estimating approach
•Used when there is a limited amount of any in-depth information about the project.
•Uses historical information and expert judgment
•Less costly and less time consuming than other techniques
•Generally less accurate
 178

6.5.2.3 Parametric Estimating:

• An estimating technique in which an algorithm is used to calculate cost or duration
based on historical data and project parameters.
• Uses a statistical relationship between historical information and other variables to
calculate an estimate for activity parameters
• Determines how many times the specific work category is going to be performed in
the given activity
• Can be applied to a total project or segments of a project
• Activity durations=Quantity of work to be performed x Labor hours per unit of work
 179

6.5.2.4 Three-Point Estimating:

• With limited information to find out activity durations, the three-point estimating
technique is used to find a distribution of the durations for different scenarios.
• •Three estimates are produced based on prior experience or best-guesses:
• ◦O = the optimistic estimate
• ◦M = the most likely estimate
• ◦P = the pessimistic estimate.
• •The two commonly used formulae for calculating the expected duration, E, are
triangular and beta distribution formula, which are given below:
• ◦Beta Distribution formula: E = (O + 4M + P) / 6
• ◦Triangular Distribution formula: E = (O + M + P) / 3
• Program Evaluation Review Technique
 180

Expected Expected
Activity Activity Standard deviation
Duration Duration P-O
(Triangular Distribution) (Beta Distribution) 6
P+M+O P+4M+O
3 6
Legend: P = Pessimistic, M = Most Likely, O
= Optimistic

P -O 2
Activity Variance 6
 181

6.5.2.5 Group Decision-Making Techniques:

such as .brainstorming, the Delphi or nominal group techniques.
6.5.2.6 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. The contingency reserve may be a percentage of the estimated activity
duration, a fixed number of work periods, or may be developed by using quantitative
analysis methods such as Monte Carlo simulation.
 182

6.6 Develop Schedule:

•The process of analyzing activity sequences, durations, resource
requirements, and schedule constraints to create the project schedule
model.
•Iterative process
•Determines the project activities’ scheduled start and finish dates
•Determines the milestones’ scheduled start and finish dates
 183

Figure 6-12. Develop Schedule : Input, Tools

& Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – Schedule management
plan 1 – Schedule network
2 – Activity list 1 – Schedule
analysis
3 – Activity attributes baseline
4 – Project schedule network 2 – critical path method
2 – Project
diagrams 3 - critical chain method
Schedule
5 - Activity resource 4 – Resource 3 – Schedule data
requirements optimization 4 – Project
6 – Resource calendars 5 – Modeling techniques calendars
7 – Activity duration 6 – leads and lags 5 – Project
estimates management plan
7 - Schedule
8 – Project scope statement updates
9 – Risk register compression
6 –Project
11 – Resource breakdown 8 – Scheduling tool
documents updates
structure
12 – EEF
13 – OBA
 184

6.6.2 Develop Schedule: Tools and Techniques

• 6.6.2.1 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.
Some network paths may have points of path convergence or path divergence that
can be identified and used in schedule compression analysis or other analyses .
 185

6.6.2.2 Critical Path Method:

• The critical path method, which is a method used to estimate the minimum project
duration and determine the amount of scheduling flexibility on the logical network
paths within the schedule model.
• Critical Path
- The longest duration path through a network diagram which represents the
shortest time to complete the project.
• -The critical path is the string of activities that will delay the whole
• project if any one of them is delayed
-Critical : The longest path through the network diagram.
• Near-critical : The path closest in length to the critical path.
 186

Early Start Early Finish

(ES) (EF)
Task Name, EF = ES + D
Duration (D) LS = LF - D
Late Start Late Finish
(LS) (LF)

Free Float:
•The amount of time that a schedule activity can be delayed without delaying the early
start date of any successor or violating a schedule constrain.

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 or violating a schedule constraint
•Float =LF – EF = LS – ES
 187

6.6.2.3 Critical Chain Method:

• a schedule method that allows the project team to place buffers
• on any project schedule path to account for limited resources and project
uncertainties is developed from the critical path method approach and considers the
effects of resource allocation, resource optimization, resource leveling, and activity
duration uncertainty on the critical path determined using the critical path method.
 188

6.6.2.4 Resource Optimization Techniques:

Resource Leveling VS Resource Smoothing

Both are resource optimization techniques

This techniques ensures balance between
resources demand and their supply.
May cause the critical path to be changed.
This is applied before resources
smoothing.
This techniques is used to maintain the
utilization of project resources at
particular limits.
Applied only activities that have float
and thus the critical is not influenced.
This is applied after resource leveling.
 189

6.6.2.5 Modeling Techniques:

What-If Scenario Analysis:
• is the process of evaluating scenarios in order to predict their effect, positively or
negatively, on project objectives.
• Simulation: This is a specific kind of what-if analysis where you model
• uncertainty using a computer. There are some packages that will help to
• calculate risk using random numbers and Monte Carlo analysis algorithms. While
this is not a commonly used technique, there might be a question or two about it on
• the PMP exam, and you should know what it is.
6.6.2.6 Leads and Lags:
• Leads are used in limited circumstances to advance a successor activity with respect
to the predecessor activity, and lags are used in limited circumstances where
processes require a set period of time to elapse between the predecessors and
successors without work or resource impact.
 190

6.6.2.7 Schedule Compression :

 191

6.6.2.8 Scheduling Tool :

Using a project management software package to create a model of the schedule and adjusting
various elements to see what might happen is another technique for analyzing network
diagrams.
 192

6.6.3 Develop Schedule: Outputs

6.6.3.1 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.

6.6.3.2 Project Schedule:

• The project schedule is an output of a schedule model that presents linked activities
with planned dates, durations, milestones, and resources. At a minimum, the project
schedule includes a planned start date and planned finish date for each activity.
• Bar charts :as Gantt charts
• Milestone charts
• Project schedule network diagrams
 193

6.6.3.3 Schedule Data :

The schedule data is a collection of information about your schedule.
It will include things that you’ll need to analyze your schedule later on in the project:
alternative schedules, specific requirements for resources, milestone charts, bar charts,
project schedule network diagrams, and other data and metrics about your schedule.

6.6.3.4 Project Calendars:

• A project calendar identifies working days and shifts that are available for scheduled
activities. It distinguishes time periods in days or parts of days that are available to
complete scheduled activities from time periods that are not available.
194
 195

6.7 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.

Figure 6-22. Control Schedule: Input, Tools & Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – Project management
1 – Work
plan
performance
2 – Project schedule 1 – Performance reviews
information
3 – Work performance 2 – PM software
2 - Schedule
data 3 – Resource
forecasts
3 – Activity resource Optimization techniques
3 – Change requests
requirements 4 – Modeling techniques
4 – P M UPDATE
4 – Project calendars 5 – Leads and lags
5 – Project
5 – Schedule data 6 - Schedule
documents updates
6 – Organizational process compression
6 – OBA
assets 7 – Scheduling tool
 196

Control schedule tools $ techniques:

6.7.2.1 Performance Reviews

• Trend analysis .Critical path method

• Critical chain method
Earned Value Management (EVM)
A method of measuring project performance by comparing the amount of work
panned with that actually accomplished, in order to determine of cost and schedule
performance are as planned
TERM FORMULA
Cost Variance CV = EV – AC
Schedule Variance SV = EV – PV
Cost Performance Index CPI = EV / AC
Schedule Performance Index SPI = EV / PV
 197

General notes :
1 -Duration
is the amount of time that an activity takes, while
2-effort
is the total number of person-hours that are expended.
2. Resource leveling
can cause the original critical path to change.
3. Path Convergence:
The merging or joining parallel schedule network paths into the same node in a
project schedule network diagram.
Path convergence is characterized by a schedule activity with more than one
predecessor activity.
Path Divergence: Extending or generating parallel schedule network paths from the
same node in a project schedule network diagram.
 198

Question 1:
Please refer to the diagram below:
• Task1 -> Task3 -> Task4 -> Task5 is the critical path. What is the late Finish Date
forTask2?

1 – 15
2 – 17
3 – 13
4-3
 199

Question 2:
The optimistic estimate is 1, the pessimistic estimate is 9 & the most likely estimate
is 8. What is the PERT estimate?
A.9
B.7
C.8
D.6
Question 3 :
In your project, you are in the process of creating an activity list. This should contain
which of the following:
A – Activities not to be performance as part of the project
B – Activities that are to be performed as part of the project
C – Activity identifier
D- scope of work description for each activity in sufficient detail
1 - B, C and D 2 – C, D and A 3 – D, A and B 4 – A, B and C
 200

Question 4:
Which of the activities have negative slack, given the table below?

A. Activity B
B. Activity C
C. None of the choices are correct
D. Activity D
E. Activity A
 201

Question 5:
You have been recently assigned to provide an accurate project
schedule for constructing a new 50-story casino in Las Vegas,
Nevada. You are evaluating the network diagram for the construction
project, and are in the process of identifying the critical path of the
project.
Based on the following diagram, which path is the critical path?

A. A-E-F-D-G
B. A-B-E-F-
D-G
C. A-B-G
D. A-E-F-G
E. A-C-D-G
 202

Question 6 :
Please refer to this diagram
Considering that the project has a negative float of 3 months,
which of the following
task(s) should be crashed to bring the project on schedule?

1- Task Q
2- Task N and Task O
3 -Either 1) Task Q, OR 2)
Task N and Task O
4 -Task N and Task P
 203

• Question 7 :You’re managing a project when your client tells you that an external
problem happened, and now you have to meet an earlier deadline. Your supervisor
heard that in a situation like this, you can use schedule compression by either
crashing or fast-tracking the schedule, but he’s not sure which is which. What do
you tell him?
• A. Crashing the project adds risk, while fast-tracking adds cost.
• B. When you crash a project, it always shortens the total duration of the project.
• C. Crashing the project adds cost, while fast-tracking adds risk.
• D. When you fast-track a project, it always shortens the total duration of the project
• question8 : You’re managing an industrial design project. You’ve come up with the
complete activity list, created network diagrams, assigned resources to each
activity, and estimated their durations. What’s the next thing that you do?
• A. Use rolling wave planning to compensate for the fact that you don’t have complete
information. B. Create the schedule.
• C. Consult the project scope statement and perform Sequence Activities.
• D. Use fast-tracking to reduce the total duration.
 204

Question Answer
1 2
2 B
3 1
4 C
5 A
6 3
7 C
8 B
205
 206

7:COST MANGEMENT

AGENDA :
1- cost
processes
2- questions
 207

• 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 managers must make sure their projects are well defined,
have accurate time and cost estimates and have a realistic budget that
they were involved in approving.
• Costs are usually measured in monetary units.
 208

TYPES OF COSTS
Type Description

They change with the number of units produced and amount of

Variable costs
work done.

Fixed costs These cost do not change as the level of production changes.

Direct costs The costs that can be directly assigned to the project.

Indirect costs The costs which benefit more than one project

The cost of any activity measured in terms of the value of the

Opportunity cost
next best alternative forgone (that is not chosen)

The costs that have already been incurred and cannot be

Sunk cost
recovered
 209

Opportunity Cost

Value of the
next best choice
Project A Project B that one gives
up when making
$1000000 $2000000 a decision. A
cost of missed
opportunity

Opportunity cost of
choosing Project B is ?

Answer:
$1000000
 210

Types of Cost Estimates

Types of Estimate When Done Why Done How Accurate

Very early in the Provides estimate of

project life cycle, cost for selection
Rough Order of often 3-5 years decision
-25% to +75%
Magnitude (ROM) before project
completion

Early, 1-2 years out Puts dollars in the

Budgetary budget plans -10% to +25%

Later in the project, Provides details for

less than 1 year out purchases, estimates
Definitive actual costs -5% to +10%
211
 212

7.1 Plan Cost Management

is the process that establishes the policies, procedures, and documentation for
planning, managing, expending, and controlling project costs. The key benefit of this
process is that it provides guidance and direction on how the project costs will be
managed throughout the project.
Figure 7-2. Plan Cost Management: Input, Tools & Techniques, and Outputs

Inputs Tools &

Techniques Outputs

1 – Project 1 – Export
Management plan judgment
2 – Project charter 2 – Analytical 1 – Cost
3 – Enterprise techniques management
environmental 3 - Meetings plan
factors
4 –Organizational
process assets
 213

Plan cost management TT :

• 7.1.2.1expert judgment .
• 7.1.2.2 Analytical Techniques
• Developing the cost management plan may involve choosing strategic options to
fund the project such as:
self-funding, funding with equity, or funding with debt. The cost management plan
may also detail ways to finance project resources such as making, purchasing, renting,
or leasing. These decisions, like other financial decisions affecting the project, may
affect project schedule and/or risks.
• 7.1.2.3 meeting.
 214

7.1.3 Plan Cost Management: Outputs

• 7.1.3.1 Cost Management Plan: include
• Units of measure:
• (such as staff hours, staff days, weeks for time measures; or meters, liters, tons,
kilometers, or cubic yards for quantity measures.
• Level of precision:
• The degree to which activity cost estimates will be rounded up or down (e.g.,
US$100.49 to US$100, or US$995.59 to US$1,000), based on the scope of the
activities and magnitude of the project.
• Level of accuracy:
• The acceptable range (e.g., ±10%) used in determining realistic activity cost
estimates is specified, and may include an amount for contingencies.
215
 216

Control thresholds:
indicate an agreed-upon amount of variation to be allowed before some action needs to
be taken. Thresholds are typically expressed as percentage deviations from the baseline
plan.

Earned value management:

(EVM) rules of performance measurement.
Reporting formats:
The formats and frequency for the various cost reports are defined.
Process descriptions:
Descriptions of each of the other cost management processes are documented.
Additional details :
-Description of strategic funding choices
-Procedure to account for fluctuations in currency exchange rates, and Procedure for
project cost recording.
 217

7.2 Estimate Costs:

is the process of developing an approximation of the monetary resources needed to
complete project activities.
Figure 7-4. Estimate Costs : Input, Tools & Techniques, and Outputs

Tools & Techniques

Inputs
1 – Cost management plan
2 – Human resource
management plan
3 – Scope baseline
4 – Project schedule
5 – Risk register
6 – Enterprise
environmental factors
7 –Organizational process
assets
1 – Expert judgment
2 – Analytical estimating Outputs
3 – Parametric estimating
4 – Bottom-up estimating
5 – Three-point estimating
6 – Reserve analysis 1 – Activity
7 – Cost of quality cost estimates
8 – Project management 2 – Basis of
software estimates
9 – Vendor bid analysis 3 – Project
10 – Group decision-making documents
techniques updates
 218

Estimate cost TT:

1 – Expert judgment
2 – Analytical estimating 3 – Parametric estimating
4 – Bottom-up estimating 5 – Three-point estimating
6 – Reserve analysis 7 – Cost of quality
7.2.2.8 Project Management Software:
Project management software applications, computerized spreadsheets, simulation,
and statistical tools are used to assist with cost estimating.

7.2.2.9 Vendor Bid Analysis:

Cost estimating methods may include analysis of what the project should cost, based
on the responsive bids from qualified vendors. When projects are awarded to a
vendor under competitive processes, additional cost estimating work may be required
of the project team to examine the price of individual deliverables and to derive a cost
that supports the final total project cost.
 219

7.2.3 Estimate Costs: Outputs

7.2.3.1 Activity Cost Estimates:
Activity cost estimates are quantitative assessments of the probable costs required to
complete project work.
• 7.2.3.2 Basis of Estimates:
Just like the WBS has a WBS dictionary, and the activity list has activity attributes, the
cost estimate has a supporting detail called the basis of estimates. Here is where you
list out all of the rates and reasoning you have used to come to the numbers you are
presenting in your estimates
• Updates to project documents
• Along the way, you might find that you need to change the way you measure and
manage cost. These updates allow you to make changes to the Project Management
plan to deal with those improvements.
 220

7.3 Determine Budget:

is the process of aggregating the estimated costs of individual activities or work
packages to establish an authorized
cost baseline.
Figure 7-4. Estimate Costs : Input, Tools & Techniques, and Outputs

Inputs
Tools & Techniques
1 – Cost management plan Outputs
2 – Scope baseline
3 – Activity cost estimates
1 – Cost aggregation 1 – Cost baseline
4 – Basis of estimates
2 – Reserve analysis 2 – Project
5 – Project schedule
3 - Export judgment funding
6 – Resource calendars
4 – Historical requirements
7 – Risk register
relationships 3 – Project
8 - Agreements
5 – Funding limit documents
9 –Organizational process
reconciliation updates
assets
 221

7.3.2 Determine Budget: TT

• 7.3.2.1 Cost Aggregation: This tool is called cost aggregation. You

• take your activity estimates and roll them up into control accounts on your work
breakdown structure. That makes it easy for you to know what each work package in
your project is going to cost.

• 7.3.2.4 Historical Relationships :

Any historical relationships that result in parametric estimates or analogous estimates
involve the use of project characteristics (parameters) to develop mathematical
models to predict total project costs.
• 7.3.2.5 Funding Limit Reconciliation:
The expenditure of funds should be reconciled with any funding limits on the
commitment of funds for the project.
 222

7.3.3 Determine Budget: Outputs

• 7.3.3.1 Cost Baseline:
• The cost baseline is the approved version of the time-phased project budget.
• Cost bassline = estimates +contingency reserve
• Project budget = cost bassline + management Reserve
 223

7.3.3.2 Project Funding Requirements:

The project funding requirements acknowledge when the funding for the project will
be available; for example, annually, quarterly, or monthly. This recognizes that funding
for a project often occurs in incremental amounts.
 224

7.4 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. The key benefit of this process is that it provides the

means to recognize variance from the plan in order to take corrective action and minimize risk.
 225

Figure 7-4. Estimate Costs : Input, Tools & Techniques, and Outputs

Outputs
1 – Work
Tools & Techniques
performance
Inputs
information
2 – Cost forecasts
1 – Project 3 – Change requests
1 –Earned value management
management plan 4 – Project
2 – Forecasting
2 – Project funding management plan
3 – To-complete performance
requirements updates
index (TCPI)
3 – Work 5 – Project documents
4 – Performance reviews
performance data updates
5 – Project management
4 – Organizational 6 –Organizational
software
process assets process assets update
6 – Reserve analysis
 226

7.4.2 Control Costs: Tools and Techniques

• 7.4.2.1 Earned Value Management:
• Earned value management (EVM) is a methodology that combines scope, schedule,
and resource measurements to assess project performance and progress.

• Earned Value Management (EVM):

• A method of measuring project performance by comparing the amount of work
planned with that actually accomplished, in order to determine if cost and schedule
performance are as planned
Acronym Term Description Formula
227
PV Planned Value Physical work to be scheduled, including
(BCWS) (Budgeted Costs for the estimated value of the work
Work Scheduled)

EV Earned Value Physical work actually accomplished,

(BCWP) (Budgeted Costs for including estimated value of this work
Work Performed)

AC Actual Cost Actual cost of the work completed

SV Schedule Variance Negative SV: Behind Schedule EV – PV
Positive SV: Ahead of Schedule

CV Cost Variance Negative CV: Over Budget EV – AC

Positive CV: Under Budget

CPI Cost Performance Value got for $1 of Actual Cost EV/AC = BAC/EAC
Index
SPI Schedule Progress as a % of Planned Progress EV/PV
Performance Index
 228

7.4.2.2 Forecasting :
Name Formula Interpretation
Cost Variance (CV) EV-AC NEGATIVE is over budget; POSITIVE is under
budget.
Schedule Variance (SV) EV-PV NEGATIVE is behind schedule; POSITIVE is
ahead of schedule.
Cost Performance Index EV AC We are getting$ worth of work out of every
(CPI)9 1$ spent. Funds are or are not being used
efficiently. Greater than one is good; less than
one is bad.
Schedule Performance EV/pv We are (only) progressing at percent of the

Index (SPI) rate originally planned. Greater than one is

good; less than one is bad.
 229

• Estimate at completion (1) EAC = AC + New ETC

• 1 – Use if a new estimate was required (the original was flawed)
• Estimate at completion (2) EAC = AC + BAC – EV
• 2 – Use if spending will continue at the budgeted rate: no BAC variance
• Estimate at completion (3) EAC = BAC / CPI
• 3 – Use if current variances are typical of the future (current CPI will continue)
• Estimate at completion (4) EAC =AC+ BAC – EV/CPI x SPI
• 4 – Use if sub-standard cost and schedule performance will continue, impacting
the ETC22
 230

• To Complete performance Index : This tells you how well your project will need
to perform to stay on budget.
• BAC based: How much budgeted work is left divided by how much
• budgeted money is left
• BAC – EV/BAC – AC
• EAC based: How much budgeted work is left divided by how much estimated
money is left
• (BAC-EV)/ (EAC-AC)
•
• Estimate to Completion
• ETC = EAC - AC
• Variance at completion
• VAC = BAC – EAC
 231

QUESTION 1:
In your project, there have been several changes in the cost and schedule estimates and the original estimating assumptions
are no longer valid. What is the Estimate at Complete for your project?

BAC = $ 300,000 AC = $ 100,000

EV = $ 150,000 CPI = $ 1.2 ETC = $ 120,000
Question No : 2
Which describes how cost variances will be managed?
A. Cost management plan
B. Cost baseline
C. Cost estimate
D. Chart of accounts
 232

QUESTION3:
You are responsible for a project with high risks particularly during the early phases,
your sponsor has asked for performance reports on a monthly basis. At the end of
the first month you report a CPI greater than 1 and the SPI less than 1. What would
this mean?
a. The project is behind schedule and over budget
b. The project is ahead of schedule and under budget
c. The project is ahead of schedule but over budget
d. The project is behind schedule but under budget
QUESTION4:
The most rapid Estimate Costs technique is:
A. Square foot estimating
B. Template estimating
C. Computerized estimating
D. Analogous estimating
 233

• Question 5 :Project A has a NPV of $75,000, with an internal rate of return of

1.5% and an initial investment of $15,000. Project B has a NPV of $60,000 with a
BCR of 2:1. Project C has a NPV of $80,000, which includes an opportunity cost of
$35,000. Based on these projects, which is the BEST one to select:
• A. Project A B. Project B C. Project C
• D. There is not enough information to select a project
• Question 6 :You are managing a software project when one of your
stakeholders needs to make a change that will affect the budget. What defines
the processes that you must follow in order to implement the change?
• A. Perform Integrated Change Control
• B. Monitoring and Controlling process group
• C. Change control board
• D. Cost baseline
 234

• Question 7 :You are managing a software project when one of your stakeholders
needs to make a change that will affect the budget. You follow the procedures to
implement the change. Which of the following must get updated to reflect the
change?
• A. Project Management plan B. Project cost baseline
• C. Cost change control system D. Project performance reviews
• Question 8 :You are managing a project for a defense contractor. You know that
you’re over budget, and you need to tell your project sponsor how much more
money it’s going to cost. You’ve already given him a forecast that represents your
estimate of total cost at the end of the project, so you need to take that into
account. You now need to figure out what your CPI needs to be for the rest of the
project. Which of the following BEST meets your needs?
• A. BAC B. ETC
• C. TCPI (BAC calculation) D. TCPI (EAC calculation
 235

Question Answers
1 250000
2 A
3 D
4 D
5 C
6 A
7 B
8 D
 236

8:QUALITY MANAGEMNT

AGENDA :
1- introduction
2- quality
processes
3- questions
 237

What is the quality?

* Quality is the degree to which the project fulfills requirements.

*Quality Management includes creating and following policies and procedures in order
to ensure that a project meets the defined needs it was intended to meet.
 238

• Quality Theorists:
1- Joseph Juran :
He developed the 80/20 principle, advocated top management involvement, and
defined quality as
• "fitness for use =is about making sure that the product you build has the best
design possible to fit the customer’s needs.
2- Philip Crosby:
He popularized the concept of the cost of poor quality and advocated "zero defects"
and prevention over inspection. He believed that quality is
• "conformance to requirements = is the core of both customer
• satisfaction and fitness for use.
 239

3- W. Edwards Deming:
He developed 14 points to total quality management and advocated the Plan-Do-
Check-Act (PDCA) cycle1 as the basis for quality improvement.
 240

• What is ISO ?

International Organization for Standardization (ISO)

1-Customer satisfaction:
Understanding, evaluating, defining, and managing requirements so that customer
expectations are met.
combination of conformance to requirements and fitness for use.
2-Prevention over inspection:
Quality should be planned, designed, and built into—not inspected into the project’s
management or the project’s deliverables. The cost of preventing mistakes is generally
much less than the cost of correcting mistakes when they are found by inspection or
during usage.
 241

3-Continuous improvement:
The PDCA (plan-do-check-act) cycle is the basis for quality improvement as defined by
Shewhart and modified by Deming. In addition, quality improvement initiatives such
as Total Quality Management (TQM), Six Sigma, and Lean Six Sigma could improve the
quality of the project’s management as well as the quality of the project’s product.
4-Management Responsibility:
Success requires the participation of all members of the project team. Nevertheless,
management retains, within its responsibility for quality, a related responsibility to
provide suitable resources at adequate capacities.
5-Cost of quality (COQ):
Cost of quality refers to the total cost of the conformance work and the
nonconformance.
 242

QUALITY @ GRAD:
Quality:
is the degree to which the product or result meets the customer or end-user
requirements. Their requirements may or may not be in alignment with the
documented project requirements, however. It is simply their assessment on how well
the output aligns with their needs and expectations. It can be said that quality is “in
the eye of the beholder”. Even if I feel that my product is high quality, I cannot assume
that my customer or end-user will agree with my assessment.
Grade:
is a category assigned to products that have the same functional use but different
technical characteristics.
Low grade is OK, but Low Quality is NOT OK

Gold Plating refers to giving the customer extras (e.g., extra functionality, higher
quality components, extra scope, or better performance).
243
 244

Marginal analysis:
• refers to looking for the point where the benefits or revenue to be received from
improving quality equals the incremental cost to achieve that quality. This is an
concept that you probably already understand. Sometimes added attention to
something such as quality does not produce added value. When that point is
reached, you should stop trying to improve quality.
Just in Time (JIT):
• suppliers deliver raw materials just when they are needed or just before they are
needed, thus decreasing inventory to close to zero. A company using JIT must
achieve a high level of quality in their practices; otherwise, there will not be enough
raw materials to meet production requirements because of waste and rework. A JIT
system forces attention on quality.
Impact of Poor Quality:
• Decreased profit • Low morale -Low customer satisfaction
• Increased risk. - schedule delay. -rework
245
 246

8.1 Plan Quality Management:

Identifying quality requirement and/or standards for the project and its deliverables,
and documenting how the project will demonstrate compliance with the relevant
quality requirements.
• Some available standards include
The United Nations Convention on Contracts for International Sale of Goods (CISG)
The CISG is the standard that governs international sales transactions.
ISO 90008 This family of standards was created by the International Organization for
Standardization (ISO) to help ensure that organizations have quality procedures and
that they follow them. Many people incorrectly believe that ISO 9000 tells you what
quality should be, or describes a recommended quality system.
Occupational Safety and Health Administration (OSHA)
sets standards for the safety of American workers The project must comply with any
required external standards and practices (enterprise environmental.
 247

Figure 8-3. Plan Quality Management: Input, Tools & Techniques, and Outputs

Inputs Tools & Techniques

Outputs
1 – Project Management 1 – Cost benefit analysis
1 – Quality
plan 2 – Cost of quality
management plan
2 – Stakeholder register 3 – Seven basic quality
2 – Process
3 – Risk register tools
improvement plan
4 – Requirements 4 – Benchmarking
3 – Quality metrics
documentation 5 – Design of
4 – Quality
5 – Enterprise environmental experiments
checklists
factors 6 – Additional quality
5 – Project
6 –Organizational process planning tools
documents updates
assets 8 - Meetings
 248

8.1.2 : Tools and Techniques :

8.1.2.1 Cost-Benefit Analysis

* The primary benefit of meeting quality requirements is less rework, i.e., higher
productivity, lower costs and increased stakeholder satisfaction.

• The primary cost of meeting quality requirements is the expenses associated with
quality management activities.

8.1.2.2 Cost of Quality (COQ ):

is what you get when you add up the cost of all of the prevention and inspection
activities you are going to do on your project. It doesn’t just include the testing. It
includes any time spent writing standards, reviewing documents, meeting to analyze
the root causes of defects, doing rework to fix the defects once the team finds them—
absolutely everything you do to ensure quality on the project.
249
 250

8.1.2.3 Seven Basic Quality Tools :

1-Cause-and-effect diagrams :
which are also known as fishbone diagrams or as Ishikawa diagrams. Trace the
problem’s source back to its “actionable root cause”.
 251

2-Flowcharts:
which are also referred to as process maps
because they display the sequence of steps
and the branching possibilities that exist for
a process that transforms one or more inputs
into one or more outputs.
Shows HOW PROCESSES INTERRELATE.
 252

3-Pareto diagrams(80-20 rule):

This is a Histogram showing defects RANKED from GREATEST to LEAST. This rule states
that 80% of the problems come from 20% of the causes. It is used to help determine
the FEW ROOT CAUSES behind the MAJORITY OF THE PROBLEMS on a project.
.
help you to figure out which problems need your attention right away
 253

4-Check sheets:
which are also known as tally sheets and may be used as a checklist when gathering
data. Check sheets are used to organize facts in a manner that will facilitate the effective
collection of useful data about a potential quality problem.
 254

5-Histograms(Column Chart ) :
are a special form of vertical bar chart and are used to describe the central tendency,
dispersion, and shape of a statistical distribution. Unlike the control chart, the histogram
does not consider the influence of time on the variation that exists within a distribution.
 255

6-Control charts:
• are used to determine whether or not a process is stable or has predictable
performance.
• Graphic displays of the results, over time, of a process, used to assess whether the
process is “in control”
• Rule of Seven :
• Run of seven points toward upper or lower control limit may indicate that process is
out of control.
• Assignable causes :
• Variations may be caused by differences in machines, workers overtime, etc. Identify
the root cause.
256
 257

7-Scatter diagrams:
It is powerful tool for SPOTTING TRENDS in Data. Scatter Diagrams are made using two
variables (a dependent variable and an independent variable).
Show correlation .
show how two different types of data relate to each other. If you worked with your test
team to create a bunch of new tests, you might use a scatter diagram to see if the new
test cases had any impact on the number of defects you found. The chart here shows
that as more test cases pass,10 fewer defects are found.
 258

4-Benchmarking:
Benchmarking involves comparing actual or planned project practices to those of other
projects in order to generate ideas for improvement and to provide a standard by which
to measure performance.( other projects can be inside or outside organization ).

5-Design of Experiments (DOE) :

This technique uses experimentation to determine statistically what variables will
improve quality. DOE is a fast and accurate technique that allows you to
systematically change all of the important factors in a process, and see which
combinations have an optimal impact on the project deliverables.
6-Statistical Sampling:
Statistical sampling involves choosing part of a population of interest for inspection
(e.g., selecting 10 samples of 75 electronic components
 259

7.Additional Quality Tools:

-Brainstorming
- Force field analysis: is how engineers analyze structures to see what forces
affect their use.
• - Nominal Group Technique: mean brainstorming with small groups, and
then working with larger groups to review and expand the results.
- Quality Management and control tools:
3 or 6 Sigma is another name for standard deviation, and indicates how much
variance from the mean has been established as permissible in a process.
+/- 1 sigma (one standard deviation) =68.27%
which is the percentage of occurrences to fall between the two control limits.
+/- 3 sigma (three standard deviation) = 99.73%
+/- 6 sigma (six standard deviation) =99.99999%
260
 261

Plan Quality Management: Outputs

• 8.1.3.1 Quality Management Plan :
• describes how the organization’s quality policies will be implemented.
• 8.1.3.2 Process Improvement Plan:
• The process improvement plan details the steps for analyzing project management
and enhance product development processes to identify activities that their value.
Areas to consider include:
Process boundaries:
• Provides a graphic depiction of processes, with interfaces identified, used to facilitate
analysis Process configuration.
• Process metrics :
• Along with control limits, allows analysis of process efficiency .
• Targets for improved performance:
• Guide the process improvement activities.
 262

8.1.3.3 Quality Metrics: are the kinds of measurements you’ll take throughout
your project to figure out its quality. It 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

8.1.3.4 Quality Checklists :

A checklist is a structured tool, usually component-specific, used to verify that a set
of required steps has been performed.
 263

8.2 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.
 264

Figure 8-8. Perform Quality Assurance : Input, Tools & Techniques,

and Outputs

Outputs
Inputs
1 – Change requests
1 – quality management Tools & Techniques 2 – Project
plan management plan
2 – Process improvement updates
plan 1 – Quality 3 – Project
3 – Quality metrics management and documents updates
4 – Quality control control tools 4 – Organizational
measurements 2 – Quality audits process assets
5 – Project documents 3 – Process analysis updates
 265

Perform Quality Assurance: T & T

8.2.2.1 Quality Management and Control Tools:

1-Affinity diagrams:
• is similar to mind-mapping techniques. is very simple and straightforward way of
organizing and grouping ideas.
 266

2-Process decision program charts (PDPC).

• Used to understand a goal in relation to the steps for getting to the goal. The PDPC is
useful as a method for contingency planning because it aids teams in anticipating
intermediate steps that could derail achievement of the goal.
 267

3-Interrelationship digraphs.:
An adaptation of relationship diagrams. The interrelationship digraphs provide a
process for creative problem solving in moderately complex scenarios that possess
intertwined logical relationships for up to 50 relevant items.

4-Tree diagrams:
Also known as systematic diagrams and may be used to represent decomposition
hierarchies such as the WBS, RBS (risk breakdown structure), and OBS (organizational
breakdown structure).
 268

5-Prioritization matrices:
Identify the key issues and the suitable alternatives to be prioritized as a set of
decisions for implementation.
6-Activity network diagrams :
Previously known as arrow diagrams. They include both the AOA (Activity on Arrow)
and, most commonly used, AON (Activity on Node) formats of a network diagram.
7-Matrix diagrams:
used to perform data analysis within the organizational structure created in the
matrix.
 269

8.2.2.2 Quality Audits:

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:

1-Identify all good and best practices being implemented.
2-Identify all nonconformity, gaps, and shortcomings.
3-Share good practices introduced or implemented in similar projects in the
organization and/or industry.
4-Proactively offer assistance in a positive manner to improve implementation of
processes to help the team raise productivity
5- Highlight contributions of each audit in the lessons learned repository of the
organization.
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8.2.2.3 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.
 271

8.3 Control Quality

Control Quality is the process of monitoring and recording results of executing
the quality activities to assess performance and recommend necessary
changes.

Figure 8-11. Control Quality : Input, Tools &
Techniques, and Outputs
Inputs
1 – Project Management plan
2 –Quality metrics
3 – Quality checklists
4 – Work performance data
5 – Approved change
requests
6 – Deliverables
7 – Project documents
8 –Organizational process
assets
272
Outputs
1 – Quality control
measurements
2 – Validated changes
3 – Verified deliverables
Tools & Techniques 4 – Work performance
information
5 – Change requests
1 – Seven basic quality 6 – Project management
tools
plan updates
2 – Statistical sampling
7 – Project documents
3 - Inspector updates
4 – Approved change 8 – Organizational
requests review process assets updates
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 274

8.3.3 Control Quality: Outputs

• 8.3.3.1 Quality Control Measurements:
Quality control measurements are the documented results of control quality
activities. They should be captured in the format that was specified through the Plan
Quality Management process.
• 8.3.3.2 Validated Changes:
Any changed or repaired items are inspected and will be either accepted or rejected
before notification of the decision is provided. Rejected items may require rework
• 8.3.3.3 Verified Deliverables:
A goal of the Control Quality process is to determine the correctness of deliverables.
The results of performing the Control Quality process are verified deliverables.
Verified deliverables are an input to Validate Scope (5.5.1.4) for formalized
acceptance.
 275

Figure 8-9. Relationship Between

Validate Scope and Control Quality
Complete
deliverables (part of
direct and manage
project work) Change requests are
evaluated through
integrated change
control, and
Perform control Change are approved change
quality inspection requested may lead to
(verify deliverables) preplanning

Customer
Meet with the customer accepts
(validate scope process) deliverables

8.6 Quality Planning vs. Quality Assurance vs. Quality Control
Basis of Scope
comparison
Quality Determines a plan for
Planning quality defining the
standards, templates,
policies and procedures.
Quality Determines if the project is
Assurance complying with the
organizational (as well as
project) policies and
procedures.
Quality Measures specific project
Control results (product) against
standards.
276
Activities Focus Area
Involves preparation of Focuses on
the quality management information on the
plan. level of quality and
the methods of
achieving it.
Involves conducting Focuses on process
regular process audits to and not products.
identify deviations from
the quality plan
preventive actions.
Involves inspecting and Focuses on product
verifying the project’s and data.
product, defect repair and
measuring whether the
quality indicators are
improving
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PMP Terms Other Name

• Observation – job shadowing

• Mandatory dependency – Hard Logic
• Discretionary dependency – Soft logic, preferred logic, preferential
logic
• Cost baseline – Cost performance baseline, S Curve
• Cause and effect diagram – Ishikawa diagram, fish bone diagram
• Fixed price – Firm fixed price, Lump Sum
• Phase end review – Kill point, stage, mile stone review
• Precedence Diagramming Method (PDM) – Activity on node (AON)
• Analogous estimating – Top down estimating
 278

Question 1
As a project manager, you are aware that quality has costs associated with it. Which
of the following statements is NOT related to cost of quality?
1 – Cost appraising the product or service for conformance to requirements.
2 – Cost of rework.
3 – Costs incurred by investment in preventing non-conformance requirements.
4 – Cost of evaluating alternative projects.

Question 2
You are a project manager who is in charge of an import project for your company.
The project includes producing widgets for your customer. Data has been collected to
help identify the greatest causes of defects in the overall process. Which technique
should you use to determine the greatest source of defects?
1 – Statistical sampling 2 – Defect repair review
3 – Pareto charting 4 - Kaizen
 279

• QUESTION 3:What’s the difference between Control Quality and Perform

• Quality Assurance?
• A. Control Quality involves charts like histograms and control charts, while Perform
Quality Assurance doesn’t use those charts.
• B. Control Quality and Perform Quality Assurance mean the same thing.
• C. Control Quality means inspecting for defects in deliverables, while Perform Quality
Assurance means auditing a project to check the overall process.
• D. Perform Quality Assurance means looking for defects in deliverables, while Control
Quality means auditing a project to check the overall process.
Question 4
The project manager and his team are using an Ishikawa or fishbone diagram during
the Plan Quality process for the coal extraction project According to you , which best
describes the reason they are utilizing this diagram ?
A- To assess the defects which are creating quality issues
B -To evaluate project activities which have the potential to create defects
C- To review symptoms to determine the source of the defects
D -B and C
 280

Question 5
In preparing his team for the quality improvement initiative , the project manager is
holding a quality meeting . He intends to open the meeting with a brief slide show .
Slide one contains the PMI definition of quality According to you , which of the
following is PMI’s definition of quality ?
A- Meeting the customers' needs
B -Conformance to use and fitness of requirements
C -The degree to which a set of inherent characteristics fulfill requirements
D -Conformance to the requirements in the project charter

• Question 6 :You’re managing a highway construction project. The foreman of your

building team alerts you to a problem that the inspection team found with one of
the pylons, so you use an Ishikawa diagram to try to figure out the root cause of
the defect. What process is being performed?
• A. Quality Management B. Plan Quality Management
• C. Control Quality D. Perform Quality Assurance
 281

• Question 7 :You’re a project manager at a wedding planning company. You’re

working on a large wedding for a wealthy client, and your company has done several
weddings in the past that were very similar to the one you’re working on. You want to
use the results of those weddings as a guideline to make sure that your current
project’s quality is up to your company’s standards. Which tool or technique are you
using?
• A. Checklists
• B. Benchmarking
• C. Design of experiments
• D. Cost-benefit analysis
• Question 8 :The project team working on a project printing 3,500 technical manuals for
a hardware manufacturer can’t inspect every single manual, so they take a random
sample and verify that the manuals have been printed correctly. This is an example of:
• A. Root cause analysis
• B. Cost-benefit analysis
• C. Benchmarking
• D. Statistical sampling
 282

QUESTION ANSWERS
1 4
2 3
3 C
4 C
5 C
6 C
7 C
8 B
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 284

9:HUMMAN RESOURSES

AGENDA :
1- introduction
2- HR processes
285
 286

9.1 Plan Human Resource Management:

Figure 9-2. Plan Human Resource Management: Input, Tools & Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – Project 1 – Organizational
Management plan charts and position
2 – Activity resource descriptions
requirements 2 – Networking
3 – Enterprise 3 – Organizational
environmental factors theory
4 – Export judgment 1 – Human resource
4 –Organizational
5 - Meetings management plan
process assets
 287

9.1.2 Plan Human Resource Management: TT

9.1.2.1 Organization Charts and Position Descriptions

• hierarchical, matrix, and text-oriented

 288

A-Matrix-based charts:
Responsibility Assignment Matrix (RAM)
This chart cross-references team members with the activities or work packages they are
to accomplish.
 289

Resource Breakdown structure

The resource breakdown structure breaks the work down by type of resource.

Project

1. People 2. Materials 3 . Equipment

 290

C-Text-oriented formats Position Descriptions

Position descriptions are usual documented in text format rather than charts. If you
haven't used these on your projects, imagine a common job description, but created
only for project work

• 9.1.2.2 Networking:

• Networking is the formal and informal interaction with others in an organization,

industry, or professional environment.
• proactive correspondence, luncheon meetings, informal conversations including
meetings and events, trade conferences
 291

9.1.2.3 Organizational Theory”

• Organizational theory provides information regarding the way in which people,
teams, and organizational units behave.

Fringe Benefits: These are the "standard" benefits formally given to all employees,
such as education benefits, insurance, and profit sharing.

Motivation Theory :(Or "What Do People Really Want)

• Here are four motivation theories:
 292

1-David McClelland's Theory of Needs :

(or Acquired Needs Theory)
This theory states that people are most motivated by one of the three needs listed in
the following table:

Primary Need Behavioral style.

Achievement These people should be given projects that are challenging but
are reachable. They like recognition.
٠
affiliation These people work best when cooperating with others.
•They seek approval rather than recognition.
•
Power People whose need for power is socially oriented, rather than personally oriented,
are effective leaders and should be allowed to manage others. ٠These people like
to organize and influence others.
 293

2-Herzberg's Theory:

deals with hygiene factors and motivating agents

***Hygiene Factors Poor hygiene factors may destroy motivation, but

improving them, under most circumstances, will not improve

motivation. Hygiene factors are not sufficient to motivate people

1-Working conditions. 2-Salary.

3-Personal life. 4-Relationships at work.

 294

3-McGregor's Theory of X and Y:

 295

4-Maslow's Hierarchy of Needs:

Doing what one can do best, full realization of

SELF-ACTUALIZATION
potential, self development, creativity

Self-esteem, reputation, respect form

SELF-ESTEEM
others, recognition and self confidence

Love, belonging, togetherness,

SOCIAL / BELONGING
approval, group membership

Economic security, protection from

SAFETY
harm, disease and violence

Food, water, clothing, shelter,

PHYSLOLOGICAL
sleep, sexual satisfaction
 296

Plan HR Management: Outputs

• 1.Human Resource Plan:
a part of the project management plan, provides guidance on how project human
resources should be defined, staffed, managed, and eventually released. The human
resource management plan and any subsequent revisions are also inputs into the
Develop Project Management Plan process.

• Roles and responsibilities:

Role: The function assumed by or assigned to a person in the project.
 297

Authority:
The right to apply project resources, make decisions, sign approvals, accept
deliverables, and influence others to carry out the work of the project.
Responsibility:
The assigned duties and work that a project team member is expected to perform in
order to complete the project’s activities.

• Competency:
The skill and capacity required to complete assigned activities within the project
constraints.
• Project organization charts :
graphic display of project team members and their reporting relationships
 298

Staffing management plan:

• An important component of the Human Resource Management plan is the Staffing
Management plan. It tells you everything that you need in order to build your team, keep
them motivated, and manage them to resolve conflicts and get the work done
Resource calendars
(When are people available? When will they be used?)
Staff release plan.
Staff training needs (What training do the resources need?)
Recognition and rewards
(What are they? What are the criteria for their use?)
Compliance
(How will the project comply with any rules related to human resources?)
Safety (What policies protect the resources?)
 299

9.2 Acquire Project Team:

Attain & assign human resources to the project.
-Staff may come from inside or outside the organization
-Project Manager does not always have control over team members selection.
-Beware of Halo Effect: “You are a great programmer, so when we hire you as a project
manager we expect you to be great.
 300

Figure 9-7. Acquire Project team : Input, Tools & Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – project staff
assignments
1 – Pre-assignment
1 – Hum resource 2 – Resource
2 – Negotiation
Management plan 3 – Acquisition calendars
2 – Enterprise 3 – Project
4 – Virtual teams
environmental factors management plan
5 – Multi-criteria
3 –Organizational updates
decision analysis
process assets
 301

Acquire Project Team T&T

9.2.2.1 Pre-assignment.
Sometimes you have resources who are guaranteed
to you when you start the project, so you don’t need to negotiate for them.
9.2.2.2 Negotiation.
is the most important tool in this process. There are resources that
you need for your project, but they don't report to you. So you need to negotiate
with the functional managers—and maybe even other project managers—for their
time.
9.2.2.3 Acquisition.
When the performing organization is unable to provide the staff needed to complete a
project, the required services may be acquired from outside sources. This can involve
hiring individual consultants or subcontracting work to another organization.
 302

• 9.2.2.4 Virtual Teams.

• are when your team consultants to staff your team. Members don’t all work in the
same location. This is really useful when you're relying on consultants and
contractors for outsourced work. Instead of meeting in person, they’ll use phone,
email, instant messaging, and online collaboration tools
to work together.
•
9.2.2.5 Multi-Criteria 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.
• Attitude. Determine whether the member has the ability to work with others as a
cohesive team.
 303

9.3 Develop Project Team:

Develop Project Team is the process of improving competencies, team member
interaction, and overall team environment to enhance project performance.
Figure 9-9. Develop Project team : Input, Tools &
Techniques, and Outputs

Tools & Techniques Outputs

Inputs
1 – Interpersonal skills
2 – Training
3 – Team-building
activities
1 – Hum resource 4 – Group rules 1 – Team
Management plan 5 – Colocation performance
2 - project staff 6 – Recognition and assessments
assignments rewards 2 – Enterprise
3 – Resource 7 – Personnel environmental
calendars assessment tools factors
 304

Develop Project Team :TT

1-interpersonal skills .
are all about using soft skills to help the people on your team solve problems.
2-Training. is a really important part of developing your team. If you’ve got a team member
who doesn’t have the skills to do the job, you need to get him trained…and it’s up to you to plan
enough of the project’s time and budget to make sure it happens!
4-Ground Rules: help you prevent problems between team members, and let you establish
working conditions that everyone on the team can live with.
5-Colocation (Tight Matrix) is the opposite of virtual teams. When you have all of your
team located in the same room, you can increase communication and help them build a sense
of community. Sometimes that room is called a war room.
6-Recognition and Rewards : are the best way to keep your team motivated!

7-team performance assessment tools : are used to figure out how your
team approaches the work and how they like to work together. These tools include things like
focus groups and surveys used to determine your team’s style of working and interacting
 305

3-Team-Building Activities:
• involves helping your team learn to depend on and trust one another. As a project
manager, you’re responsible for helping the team come to an understanding about
how they’ll communicate and stay motivated when things go wrong. If you’re open
about your decision-making processes and communicate often about what you’re
doing, you can help your team to bond. Some people think of team building as going
out for pizzas after work, but it’s more about how you lead, and how you help to
create an environment where your team members can trust one another.
The Tuckman ladder model formally identifies the following stages of team formation
and development:
1-Forming:People are brought together as a team.
2-Storming : There are disagreements as people learn to work together.
3-Norming : Team members begin to build good working relationships.
4- Performing:
the team becomes efficient and works effectively together. This is the point when the
project manager can give the most attention to team developing individual team
members.
5-Adjourning” The project ends, and the team is disbanded
 306

Team-building activities can include:

- Taking classes together - Milestone parties
- Holiday and birthday celebrations - Outside-of-work trips
- Creating the WBS
- Getting everyone involved in some way in planning the project
 307

Powers of the Project Manager:

1-Formal (Legitimate) from your position.

2-Reward : from giving rewards.
3-Penalty (Coercive): from the ability to penalize team members.
4-Expert: from being the technical or project management expert.
5-Referent :from another person liking you, respecting you, or wanting to be like you.
It is the power of charisma and fame.
• NOTE: The best forms of power are EXPERT and REWARD. Penalty is the worst form is
FORMAL,
• REWARD, and PENALTY are powers derived from your position in the company.
EXPERT power is earned on your own.
 308

Powers of project manager

LEGITIMATE / FOEMAL Power derived from the position

REWARD
Power of rewarding the team member

PENALTY / COERCITVE / Power of punishing the team member

PUNIDHMENT

EXPERT Power derived from expertise

PEFERENT / CHARISMA Power derived from the personality / charisma

 309

Management and Leadership Styles:

• Directing : This style involves telling others what you want.

• Facilitating: When facilitating, the project manager coordinates the input of others.
• Coaching : In coaching, the manager helps others achieved.
• Supporting:
• A supporting leadership style means the project manager provides assistance along
the way.٠
• Autocratic : This is a top-down approach where the manager has power to do
whatever he or she wants. The manager may coach or delegate, but everyone does
what the manager wants them to do.
 310

• Consultative:
• This bottom-up approach uses influence to achieve results. The manager obtains
others' opinions and acts as the servant-leader for the team.
• Consultative-Autocratic:
• In this style, the manager solicits input from team members, but retains decision-
making authority for him - or herself.
• Consensus:
• This style involves problem solving in a group, and making decisions based on group
agreement.
• Delegating :
• With a delegating style, the manager establishes goals and then gives the project
team sufficient authority to complete the work.
 311

Bureaucratic:
• This style focuses on following procedures exactly. The bureaucratic style may be
appropriate for work in which details are critical or in which specific safety or other
regulations must be strictly adhered to.
Charismatic:
managers energize and encourage their team in performing project work.
Democratic or Participative:
This style involves encouraging team participation in the decision-making process.
Laissez-faire :
"allow to act," "allow to do," or "leave alone." A laissez-faire manager is not directly
involved in the work of the team, but manages and consults as necessary. This Style
can be appropriate with a highly skilled team.
 312

Analytical:
This style depends on the managers own technical knowledge and ability. Analytical
managers often make the technical decisions for the project, which they communicate
to their teams. Interview-style communication, in which the project manager asks
questions to get the facts, is common with this management style.

Driver:
A manager with a driver style is constantly giving directions. His or her competitive
attitude drives the team to win.

Influencing:
This style emphasizes teamwork, team building, and team decision making. These
managers work with their teams to influence project implementation.
313
 314

9.4 Manage Project Team:

Figure 9-11. Manager Project team : Input, Tools & Techniques, and
Outputs

Tools & Outputs

Inputs
Techniques
1 – Change requests
1 – Hum resource 2 – Project
Management plan 1 – Observation management plan
2 - project staff assignments and conversation
updates
3 – Team performance 2 – Project
3 – Project
assessments performance documents updates
4 – Issue log appraisals 4 – Enterprise
5 – Work performance 3 – Conflict environmental factors
reports management
5 – Organizational
6 – Organizational process 4 – Interpersonal
process assents
assents skills updates
 315

• Manage project team : TT

• Project performance appraisals
• means looking at each person’s work and assessing his or her performance.
• Observation and conversation
• are how you communicate to manage your Team
• Interpersonal skills are all about helping the people on your
• team to solve problems
• Conflict management is one of the most important tools in Manage
• Project Team, because it’s where you resolve conflicts between people
 316

Conflict sources:
It’s probably no surprise that over half of conflicts come from priorities, schedules, and people.
That’s why so many of the processes you’re learning about are focused on preventing conflicts.
Ground rules, good planning practices, and pretty much anything that has to do with
communication are all there to prevent the most common reasons that conflicts happen.
 317

Problem – Solving Method

1 – Define the real or root problem, not what is presented to you or what appears to
be the problem.
1 – Analyze the problem.
3 – Identify solution
6- Review the solution, and confirm that solution solved the problem.
Conflict Description
318
Mode
Collaborate · Usually, the best way to resolve conflicts is to face the conflict directly with a
or Problem cooperative attitude and an open dialogue to work through disagreements
Solve resulting in consensus and commitment.
 Results in a Win-Win outcome

Compromise · At times, there is bargaining and searching for solutions that bring some partial
or Reconcile or temporary degree of satisfaction to parties in a dispute with a “give and take”
attitude.
 Results in a Lose-Lose outcome

Smooth or · Sometimes you may de-emphasize or avoid areas of difference and emphasize
Accommodat areas of agreement in order to maintain relationships.
e  Results in a Lose-Yield outcome
Force or · If you have the authority and have to settle conflicts quickly, you can also exert
Direct your viewpoint at the expense of the viewpoints of others.
 Results in a Win-Lose outcome
Withdraw or · At times, when you do not have all the information or when things are getting
Avoid out of hand, you may retreat or withdraw from a potential disagreement.
 Results in a Lose-Leave outcome
 319

Heuristics:
this is a physiological term referring to A way of taking decisions. When you can’t
research a problem for some reason, you use your experience to find a quick solution.
Example is
“rules of thumbs” and “educated guesses” which are fast but may not be the best
solutions
PM HRM Responsibilities

• Create a project team directory

• Negotiate with resource managers for the best available resources.
• Understand the team members’ needs for training related to the project and make sure they
get it.
• Create a formal staffing plan.
• Prepare reports for team members’ performance.
• Make sure team members are motivated.
• Create a reward system.
 320

Question 1:
You are annoyed with your team members because of their constant disagreements .You ask
them to stop arguing and do the work the way in which you want it to be done, The conflict
handling approach you are following is:
1 – Smoothing
2 – Forcing
3 – Confrontation
4 – Withdrawal

Question2 :Two of your team members are having a disagreement over which technical
solution to use. What’s the first thing that you should do in this situation?
A. Consult the technical documents.
B. Tell the team members to work out the problem themselves.
C. Ask the team members to write up a change request.
D. Meet with the team members and figure out what’s causing the disagreement
 321

Question 3:
Lesley is managing a software development project for the World Climate Control
Organization. Since her team members are dispersed across the globe, she would
like to set up online conferences in next two months to let everyone in her project
know what is going on and what their role is within the project. She wants to use
these conferences as team development activities to learn and exchange
information in the project. To schedule such activities, which of the following should
she use to know the availability of team members?
Choice 1: Project charter
Choice 2: Resource calendars
Choice 3: Responsibility assignment matrix
Choice 4: Project staff assignments
 322

Question 4:
The project manager is trying to manage conflicting stakeholder requirements. The
IT manager wants a new management information system. To lower costs, the
system architect emphasizes technical excellence, and the programming contractor
wants to maximize profits. To balance the needs of several stakeholders and achieve
lasting resolution of conflicts, the most desirable conflict resolution technique is:
Choice 1: Confrontation
Choice 2: Smoothing
Choice 3: Withdrawal
Choice 4: Forcing

• question5 :Which of the following describes Maslow’s Hierarchy of Needs?

• A. You can’t be good at your job if you don’t have a nice office.
• B. You need to feel safe and accepted to want to be good at your job.
• C. Your boss’s needs are more important than yours.
• D. The company’s needs are most important, then the boss’s, then the employee’s.
 323

Question 6:
According to you , what is the best order to deal with the problems that arise while
managing a project ?
A Go to team , go to managers , go to resource managers
B Go to resource managers , go to management , go to the customer
C Handle it yourself , go to the customer , go to the management
D Resolve problems with resources you control , go to resource managers , go to the
customer
Question 7:
Which of the following best describes the assumptions made by Herzberg's Hygiene
theory?
a. Employees are basically lazy and need to be monitored
b. Hygiene factors help avoid job dissatisfaction and lead to motivated employees
c. Hygiene factors help avoid job dissatisfaction and their absence could create
dissatisfaction but it will not lead to motivated employees
d. Job content factors have no influence in keeping people happy on the job and
motivated.
 324

• Question8 :You are working on a construction project that is running slightly

behind schedule. You ask the team to put in a few extra hours on their shifts over
the next few weeks to make up the time. To make sure everyone feels motivated to
do the extra work, you set up a $1,500 bonus for everyone on the team who works
the extra hours if the deadline is met. What kind of power are you using?

• A. Legitimate B. Reward C. Expert D. Referent

• Question9 :Two team members are having an argument over priorities in your
project. One thinks that you should write everything down before you start doing
any work, while the other thinks you can do the work while you finish the
documentation. You sit both of them down and listen to their argument. Then you
decide that you will write most of it down first but will start doing the work when
you are 80% done with the documentation. What conflict resolution technique are
you using?

• A. Forcing B. Confronting C. Smoothing D. Compromise

 325

Question answer
1 2
2 D
3 3
4 1
5 B
6 D
7 C
8 B
9 D
 326

10:COMMUNICATION MANGEMNT

AGENDA :
1- introduction
2- communication
processes
3- questions
 327

Communication is Important:It consumes 90% of a Project Manager’s time.

 328

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.
Effective communication creates a bridge between diverse stakeholders who may
have different cultural and organizational backgrounds, different levels of expertise,
and different perspectives and interests, which impact or have an influence upon the
project execution or outcome.
 329

• The communication activities involved in these processes may often have many
potential dimensions that need to be considered, including, but not limited to:

1-Internal (within the project) and external (customer, vendors, other projects,
organizations, the public);
2-Formal (reports, minutes, briefings) and informal (emails, memos, ad-hoc
discussions);

3-Vertical (up and down the organization) and horizontal (with peers);

4-Official (newsletters, annual report) and unofficial (off the record communications);

5-Written and oral, and verbal (voice inflections) and nonverbal (body language).
 Form of Characteristics Examples
Communication 330
Written Formal • Project charter, scope statement, project
plan, WBS, project status
• Complex issues
• Contract related communications
• Precise
• Memos

• Transmitted through the

Written Informal medium of correspondence • Email, notes, letters, etc.
• Regular communication with team members

Oral Formal • Presentations, speeches,

• High degree of flexibility • Negotiations

Oral Informal • Conversation with team members

• Use the medium of personal • Project meetings
contact, group meetings, or
telephone • Break-room or war-room conversations

Non-verbal • About 55% of total • Facial expressions, hand movements, tone of

Communication communication voice while speaking, etc.
 331

communication skills:
• Most communication skills are common for both general management and project
management, such as, but not limited to:
• 1-Listening actively and effectively;
• 2-Questioning and probing ideas and situations to ensure better understanding;
• 3-Educating to increase team’s knowledge so that they can be more effective;
• 4-Fact-finding to identify or confirm information;
• 5- Setting and managing expectations;
• 6-Persuading a person, a team, or an organization to perform an action;
• 7-Motivating to provide encouragement or reassurance;
• 8-Coaching to improve performance and achieve desired results;
• 9-Negotiating to achieve mutually acceptable agreements between parties;
• 10-Resolving conflict to prevent disruptive impacts; and
• 11-Summarizing, recapping, and identifying the next steps.
332
 333

10.1 Plan Communication Management:

Determining Stakeholder s’ information needs and defining

communication approach:
 Who needs What
 When he/she needs it
 Who will deliver -How will it be delivered (report, email, verbal,
… etc.)
 Should be planned early and revised through the whole project
life.
 Improper communication planning will lead to significant
problems
 334

Figure 10-2. Plan Communications Management : Input,

Tools & Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – Communication
1 – Project requirements analysis
management plan 2 – Communication
2 – Stakeholder technology
register 3 – Communication
models 1 – Communications
3 – Enterprise
4 – Communication management plan
environmental factors
methods 2 – Project
4 - Organizational
5 - Meetings documents updates
process assets
 335

10.1.2 Plan Communications Management: TT

10.1.2.1 Communication Requirements Analysis:

Determine information needs of the project stakeholder. (Number of communications
channels).
 336

2.Communication Technology:
affected by:
1-The urgency of the need for the information
2-Expected Project staffing (experience, training, … etc.)
3-Availability of Technology
4-Ease of Use
5-Project environment
6-Sensitivity and confidentiality of information

3 .Communication Models:
 337

4.Communication Methods:
Interactive:
The sender provides the information and recipients receive and respond to it.
Push :
The sender provides the information but does not expect feedback on that
information.
Pull:
The sender places the information in a central location and recipients are responsible
for retrieving it.
 338

10.1.3 Plan Communications Management:

Outputs
10.1.3.1 Communications Management Plan:
describes how project communications will be planned, structured, monitored, and controlled.
The plan contains the following information.
1-Information to be communicated, including language, format, content, and level of detail.
2-Reason for the distribution of that information.
3-Time frame and frequency for the distribution of required information and receipt of
acknowledgment or response, if applicable.
4-Person responsible for communicating the information.
5-Person responsible for authorizing release of confidential information.
6-Person or groups who will receive the information;
7-Methods or technologies used to convey the information, such as memos, e-mail, and/or
press releases.
8-Resources allocated for communication activities, including time and budget.
9-Escalation process identifying time frames and the management chain (names) for
escalation of issues.
 339

10.2 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.
Figure 10-2. Plan Communications Management : Input, Tools & Techniques, and Outputs

Tools & Techniques Outputs

Inputs
1 – Communication 1 – Project
1 – Communications technology communications
management plan 2 – Communication 2 – Project
2 – Work performance models management plan
reports 3 – Communication updates
3 – Enterprise methods 3 –Project
environmental factors 4 – IMS documents updates
4 - Organizational process 5 – Performance 4 – Organizational
assets reporting process assets
updates
 340

Manage Communications T $ T:
5.Performance Reporting:
• There are different types of performance reports, not just one that might come out
of some software application. :
1-Status report : This report describes where the project currently stands regarding
the performance measurement baseline.
2-Progress report : describes what has been accomplished.
3-Trend report: This report examines project results over time to see if performance is
improving or deteriorating.
4-Forecasting report : predicts future project status and performance.
5-Variance report : compares actual results to baselines
6-Earned value report : (PV,EV,AC, etc.).
7-Lessons learned documentation :Reports on performance are used as lessons
learned for future projects.
Status Reporting
- A status report communicates Statistics and
it shows what is true at a certain time.
- Describes the state the project overall.
- The status report stresses achievement.
- It can be shorter
- Useful for an executive audience.
-For example a status report might indicate
that you have accomplished :
- 50 percent of the project work
- Spent 55 percent of the project funds
- And are 70 months into a 35 month
project
Progress Reporting
341
-A progress report communicates time and it
shows what’s happened (and even might
preview what’s going to happen).
- Identifies the activities and progress that
have taken place since the last progress report.
- The progress report stresses events.
- It is longer.
-Useful to a project manager ( order to see
what’s gone on to lead us to this place )
- Useful as a sort of historical record
-This includes the :
- Scope that has been completed
- Schedule work that has been accomplished.
- Costs that have been incurred
- Any significant milestone achievements.
 342

10.3 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. Figure 10-7. Control Communications : Input, Tools & Techniques, and Outputs

Inputs Outputs
1 – Work performance
1 – Project information
management plan 2 – Change requests
2 – Project 3 – Project
management plan
communications Tools & Techniques updates
3 – Issue log 4 –Project documents
4 – Work 1 – Information
updates
performance data 5 – Organizational
management systems
process assets
5 - Organizational 2 – Expert judgment
updates
process assets 3 - Meetings
 343

GENERAL NOTES:
1- SENDER'S responsibility to make the message clear, complete, and understood .
2-Nonverbal communication means your gestures, facial expressions, and physical
appearance while you are communicating your message.
3-Paralingual communication is the tone and pitch of your voice when you’re talking
to people. If you sound anxious or upset, that will have an impact on the way people
take the news you are giving
4-Distribute Information is concerned with general project information, such as
meeting minutes, issues, and correspondence.
5-Report Performance focuses on performance reporting against baselines, such as
scope, schedule, cost, or quality. Report Performance uses time, cost, and related work
performance information.
 344

Question 1:
During critical negotiations on outstanding issues arising out or a contract, you should pay
close attention to which form of communication?
1 – Oral formal
2 – Oral informal
3 – Non-verbal
4 – Written formal

Question 2:
In your project, you recently observed conflict among team members. You would like to see
that all team members work towards one goal (i.e., successful completion of the project), A
conflict handling method that emphasizes similarities rather than differences as means to
solve a problem can be referred to as?
1 – Smoothing
2 – Forcing
3 – Confrontation
4 – Withdrawal
 345

Question 3:
In your project, you are using the control communications process to organize and summarize
the information gathered. Later, you present the results of analysis as a comparison to the
performance measurement baseline. Some common formats for performance reports that you
could use are?
1 – S-curves, histograms, pareto diagrams
2 – S-curves, responsibility assignment matrices, histograms
3 – Bar charts, S-curves, histograms
4 – Bar charts, control charts, histograms

Question 4:
You are the manager of an aircraft design project. A significant portion of this aircraft will be
designed by a subcontracting firm. How will this affect your communications management
plan?
1 – More formal verbal communication will be required.
2 – Performance reports will be more detailed.
3 – More formal written communication will be required.
4 – Official communication channels will significantly increase.
 346

Question 5:
Communication can be of the following forms except?
a. Formal and Informal
b. Written and Verbal
c. Precise and Vague
d. Vertical and Horizontal
Question 6 :
You have successfully completed a project. You have now been assigned a project which is
midway into its execution. You have had to take this project due to non-availability of the
current project manager due to bad health. This is a complex project involving multiple
contractors and teams at various geographical locations. You decide to look up the
requirements of the types of reports and frequency of sending them. Where would you find
this information?
a. Project Management Plan
b. Scope Management Plan
c. Communication Management Plan
d. Stakeholder Analysis
 347

• Question 7
• Keith, the project manager of a large publishing project, sends an invoice to his client. Which
communication
• type is he using?
• A. Formal verbal B. Formal written
• C. Informal written D. Informal verbal

• Question 8:You take over for a project manager who has left the company and realize that
the team is talking directly to the customer and having status meetings only when there are
problems. The programming team has one idea
• about the goals of the project, and the testing team has another. Which document is the
FIRST one that you should create to solve this problem?
• A. Communications Management plan
• B. Status report
• C. Meeting agenda
• D. Performance report
 348

• Question :9
• You ask one of your stakeholders how things are going on her part of the project and she
says, “things are
• fine” in a sarcastic tone. Which is the BEST way to describe the kind of communication that
she used?
• A. Feedback B. Active listening C. Nonverbal D. Paralingual

• Question 10
• You’re managing an industrial design project. You created a Communications Management
plan, and now the team is working on the project. You’ve been communicating with your
team, and now you’re looking at the work performance data to evaluate the performance of
the project. Which of the following BEST describes the next thing you should do?
• A. Use formal written communication to inform the client of the project status.
• B. Compare the work performance data against the time, cost, and scope baselines and look
for deviations.
• C. Update the organizational process assets with your lessons learned.
• D. Hold a status meeting
 349

Question answer
1 3
2 A
3 3
4 3
5 C
6 C
7 B
8 A
9 D
10 B
 350

11:RISK MANGEMNT

AGENDA :
1-introduction
2- risk processes
3- questions
 351

Project Risk Management

includes the processes of conducting risk management planning, identification,
analysis, response planning, and controlling risk on a project. The objectives of
project risk management are to increase the likelihood and impact of positive events,
and decrease the likelihood and impact of negative events in the project.
 352

GENERAL NOTES:
1-Risk
An uncertain event or condition that, if it occurs, has a Positive or Negative effect on a
project objective ,Can never be totally eliminated. Greatest in the beginning of a
project.
Should be addressed proactively and consistently throughout the project
2-Threats and Opportunities.
3-Uncertainty.
4-Risk Factors.
The probability that a risk event will occur (how likely) The range of possible outcomes
(impact or amount at stake)
٠ Expected timing for it to occur in the project life cycle (when)
•The anticipated frequency of risk events from that source (how often)
 353

4-Risk Appetites, Tolerances, and Thresholds

The risk attitudes

ofboththeorganizationandthestakeholdersmaybeinfluencedbyanumbero
ffactors,whicharebroadlyclassifiedintothreethemes:
oRiskappetite,whichisthedegreeofuncertaintyanentityiswillingtotakeoni
nanticipationofareward.
oRisktolerance,whichisthedegree,amount,orvolumeofriskthatanorganiz
ationorindividualwillwithstand.
oRiskthreshold,whichreferstomeasuresalongthelevelofuncertaintyorthe
levelofimpactatwhichastakeholdermayhaveaspecificinterest.Belowthatri
skthreshold,theorganizationwillaccepttherisk.Abovethatriskthreshold,th
eorganizationwillnottoleratetherisk
 354

Confusing Terms
Risk rating :
A risk rating is a number between 1 and 10 chosen to evaluate the probability or impact of a
risk.
Risk score for each risk :To calculate the risk score, you multiply probability time impact. This
gives you a numerical value for each risk. That value is then compared to other risks in the
project to determine the risk ranking for each risk within the project.
Risk score for the project : To obtain the project risk score, you add up the risk scores for each
risk in the project.
Risk ranking within the project :To rank risks, you compare the risk scores for all the risks.
The risk with the highest risk score becomes the highest ranking risk, the next highest becomes
second, etc.
Risk ranking compared to other projects :The total risk score for each project can be
compared to the risk score of other projects to rank projects by risk. Sometimes the total risk
score is used, and sometimes the total risk score is divided by the number of risks and that
number is compared to other projects. So, to put it all together, the risk rating are used to
calculate the risk score, which is then used to determine the risk ranking of the risks and the
project.
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 356

11-1. Plan Risk Management

Steps of the Plan Risk Management Process

The following are the recommended steps to follow in completing risk management
planning.
1 – Review available risk management procedures, historical, and lessons learned.
2 – Define what methodology you will use for the current project to identify risks.
3 – Determine who will be involved in risk management (roles and responsibilities).
4 – Determine how much the risk efforts will cost, and include those costs in the budget.
5- Determine the definitions of probability and impact you will use to quality and quantify risks.
7 – Determine the stakeholder tolerances and thresholds to consider in determining which risks
to act on.
8 – Define which risk categories will be used too identify risks.
9 - Define how risks will be documented, analyzed, and communicated to the project team,
other stakeholders, the sponsor, etc.
10 – Determine how you will track and keep records of risks for use on future projects.
 357

Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs

Inputs

Tools &
1 – Project management
plan Techniques
2 – Project charter
3 – Stakeholder register Outputs
4 – Enterprise 1 – Analytical
environmental factors techniques
5 - Organizational process 2 – Expert judgment 1 – Risk
assets 3 - Meetings management plan
 358

Plan Risk Management: Outputs

The risk management plan includes the following:

1-Methodology. Defines the approaches, tools, and data sources that will be used to
perform risk management on the project.
2-Roles and responsibilities. Defines the lead, support, and risk management team
members for each type of activity in the risk management plan, and clarifies their
responsibilities.
3-Budgeting. Estimates funds needed, based on assigned resources, for inclusion in
the cost baseline and establishes protocols for application of contingency and
management reserves.
4-Timing. Defines when and how often the risk management processes will be done.
• 5Reportingformats.Reportingformatsdefinehowtheoutcomesoftheriskmanagementprocess
willbedocumented,analyzed,andcommunicated.Itdescribesthecontentandformatoftheriskregis
teraswellasanyotherriskreportsrequired
 359

6-Risk categories. There are many ways to classify or categorize risk, such as
External Regulatory, environmental, government, market shifts
Internal Time, cost, or scope changes; inexperience; poor planning; people; staffing;
materials; equipment, Technical Changes in technology
Unforeseeable Only a small portion of risks (some say about 10 percent) are actually
unforeseeable Provide a means for grouping potential causes of risk.
7.Definitionsofriskprobabilityandimpact.Thequalityandcredibilityoftheriskanalysisreq
uiresthatdifferentlevelsofriskprobabilityandimpactbedefinedthatarespecifictotheproje
ctcontext.Generaldefinitionsofprobabilitylevelsandimpactlevelsaretailoredtotheindivid
ualprojectduringthePlanRiskManagementprocessforuseinsubsequentprocess
8- Stakeholder tolerances:
• Stakeholders’tolerances,astheyapplytothespecificproject,mayberevisedinthePlanRisk
Managementprocess.
 360

11.2 Identify Risks

Identify Risks is the process of determining which risks may affect the project and documenting
their characteristics.

Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs
Inputs Tool s & Techni ques Outputs

1 – Risk management plan 1 – Documentation 1 – Risk register

2 – Cost management plan reviews
3 – Schedule management plan 2 – Information
4 – Quality management plan gathering
5 – Human resource techniques
management plan 3 – Checklist
6 – Scope baseline analysis
7 – Activity cost estimates 4 – Assumptions
8 – Activity duration estimates analysis
9 – Stakeholder register 5 – Diagramming
10 – Project documents techniques
11 – Procurement documents 6 – SWOT analysis
12 – EEF 7 – Expert
13 - OBA judgment
 361

• Identify risks is an iterative process, because new risks may evolve or become known
as the project progresses through its life cycle. The frequency of iteration and
participation in each cycle will vary by situation.
• •The format of the risk statements should be consistent to ensure that each risk is
understood clearly and unambiguously in order to support effective analysis and
response development.
• •The process should involve the project team so they can develop and maintain a
sense of ownership and responsibility for the risks and associated risk response
actions
• 11.2.2 Identify Risks: Tools and Techniques
• 11.2.2.1 Documentation Reviews:
• including plans, assumptions, previous project files, agreements, and other
information
 362

• 11.2.2.2 Information Gathering Techniques

1- Brainstorming
•Objective is to obtain a LIST of project risks.
•Done by TEAM with outside experts. Use RBS as a guideline
•An expert facilitator leads the discussions
• .(Risk Breakdown Structure can be used as framework
2- Delphi technique
•Reach consensus from EXPERTS.
•ANONYMOUS: no bias
•Written questionnaire .Two or more rounds
• 3- Interviewing: Try to find
• everyone who might have an opinion and ask them about
• what could cause trouble on the project
4- Root cause analysis
 363

• 11.2.2.3 Checklist Analysis:

• are developed based on historical information and knowledge that has been accumulated
from previous similar projects and from other sources of information. The lowest level of the
RBS can also be used as a risk checklist.
• 11.2.2.4 Assumptions Analysis:
• Every project and its plan is conceived and developed based on a set of hypotheses,
scenarios, or assumptions. Assumptions analysis explores the validity of assumptions as
they apply to the project
• 11.2.2.5 Diagramming Techniques
• 1- Cause and effect diagrams.
• These are also known as Ishikawa or fishbone diagrams, Mind Mapping Technique
and are useful for identifying causes of risks.
 364

2-System or process flow charts.

• These show how various elements of a system interrelate and the mechanism of
causation.
3-Influence diagrams.
• These are graphical representations of situations showing causal influences, time
ordering of events, and other relationships among variables and outcomes.
 365

1 1 . 2 . 2 . 6 S W O T A N A LY S I S
This technique examines the project from each of the strengths, weaknesses,
opportunities, and threats (SWOT).
 366

1 1 . 2 . 3 Identify Risks: Outputs

• 11.2.3.1 Risk Register
• is a document in which the results of risk analysis and risk response planning are
recorded.
• Contain:
• 1- List of identified risks; The identified risks are described in as much detail as is
reasonable. A structure for describing risks using risk statements may be applied, for
example, EVENT may occur causing IMPACT, or If CAUSE exists, EVENT may occur
leading to EFFECT. In addition to the list of identified risks, the root causes of those
risks may become more evident.
• 2- List of potential responses; Potential responses to a risk may sometimes be
identified during the Identify Risks process. These responses, if identified in this
process, should be used as inputs to the Plan Risk Responses process.
3-risk owner
367
 368

11.3 Perform Qualitative Risk Analysis

is the process of prioritizing risks for further analysis or action by
assessing and combining their probability of occurrence and impact.
Thekeybenefitofthisprocessisthatitenablesprojectmanagerstoreducethelevelofuncertain
tyandtofocusonhigh-priorityrisks.
Where these risk approaches introduce bias into the assessment of identified risks,
attention should be paid to identifying bias and correcting for it. Establishing definitions
of the levels of probability and impact can reduce the influence of bias
 369

Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs

Inputs Tools & Techniques

1 – Risk management
1 – Risk probability and
plan impact assessment
2 – Scope baseline 2 – Probability and Outputs
3 – Risk register impact matrix
4 – Enterprise 3 – Risk data quality
assessment
environmental 4 – Risk categorization
factors 5 – Risk urgency 1 – Risk
5 - Organizational assessment documents
process assets 6 – Expert judgment updates
 370

11.3.2 Perform Qualitative Risk Analysis: Tools and Techniques

• 11.3.2.1 Risk Probability and Impact Assessment
• Risk probability assessment investigates the likelihood that each specific risk will
occur. Risk impact assessment investigates the potential effect on a project objective
such as schedule, cost, quality, or performance, including both negative effects for
threats and positive effects for opportunities.

11.3.2.2 Probability and Impact Matrix

Riskscanbeprioritizedforfurtherquantitativeanalysisandplanningriskresponsesbasedonth
eirriskrating.
 371

11.3.2.3 Risk Data Quality Assessment

• Risk data quality assessment is a technique to evaluate the degree to which the
data about risks is useful for risk management. It involves examining the degree
to which the risk is understood and the accuracy, quality, reliability, and integrity
of the data about the risk.

11.3.2.5 Risk Urgency Assessment

• Risks requiring near-term responses may be considered more urgent to
address. Indicators of priority may include probability of detecting the risk,
time to affect a risk response, symptoms and warning signs, and the risk
rating

11.3.2.6 Expert Judgment .

 372

11.3.2.4 Risk Categorization.

Risks to the project can be categorized by sources of risk (e.g., using the RBS), the area of the
project affected (e.g., using the WBS), or other useful categories (e.g., project phase) to
determine the areas of the project most exposed to the effects of uncertainty .

BREAKDOWN STRUCTURES USED IN PROJECTS

Work Breakdown The WBS is a hierarchical decomposition of the total

structure (WBS) scope of work to be carried out by the project team
to accomplish the project objectives and create the
Resource
required deliverables.
Breakdown
Structure (RBS) The res ource breakdown s tructure i s a hiera rchical
repres entation of resources by category a nd type .
Organizational
A hi erarchical representation of the project orga nization that
Breakdown
i l l ustrates the relationship betwe en project a ctivities a nd the
Structure (OBS) orga ni zational units tha t will perform thos e a ctivitie s.
Risk Breakdown A hi erarchical representation of ri s ks a ccording to the ir risk
Structure (RBS) categories.
 373

11.4 Perform Quantitative Risk Analysis

is the process of numerically analyzing the effect of identified risks on overall project
objectives. The key benefit of this process is that it produces quantitative risk
information to support decision making in order to reduce project uncertainty.
.

Risk Prioritization
Perform Quantitative Analysis (e.g.
(Qualitative Risk
monte carlo simulation, decision tree
Analysis)
analysis)
Examine
Interrelationships Result
Between Risks -How likely is success?
Collect High-Quality -How much contingency?
Risk Data -- Which risks are high priority?
Project Model
(e.g., schedule, cost
estimate)
 374

Figure 11-11. Perform Quantitative Risk Analysis : Input, Tools & Techniques, and Outputs

Inputs

1 – Risk management Tools & Techniques

plan
2 – Cost management
plan
1 – Data gathering and Outputs
3 – Schedule
management plan representation
4 – Risk register techniques
5 – Enterprise 2 – Quantitative risk 1 – Risk
environmental factors analysis and modeling documents
6 - Organizational techniques updates
process assets 3 – Expert judgment
 375

11.4.2 Perform Quantitative Risk Analysis:

Tools and Techniques
• 11.4.2.1 Data Gathering and Representation Techniques
• A-Interviewing:
• It can be used to acquire range of estimate such as PERT. Documenting the rationale
of the risk ranges and the assumptions behind them are important components of
the risk interview because they can provide insight on the reliability and credibility of
the analysis.
• B-Probability distributions:
• Continuous probability distributions, which
• are used extensively in modeling and
• simulation, represent the uncertainty
• in values such as durations of schedule activities and costs of project
 376

11.4.2.2 Quantitative Risk Analysis and Modeling Techniques

• Sensitivity Analysis; helps to determine which risks have the most

potential impact on the project. It helps to understand how the
variations in project’s objectives correlate with variations in different
uncertainties. Conversely, it examines the extent to which the
uncertainty of each project element affects the objective being
studied when all other uncertain elements are held at their baseline
values. One typical display of sensitivity analysis is the tornado
diagram
 377

Sensitivity Analysis VS Design of Experiments

Both are analytical techniques used in project

A too in perform
Quantitative Risk Analysis A tool in plan Quality Management

Helps in analyzing the effect of changing
single uncertain element when all the the
other uncertain elements are held at their
baseline values
If a small change in a parameter results in
large changes in the outcomes, that
parameter is sensitive
Identifies the elements or variables that will
have the greatest effect on overall project
outcomes.
Variables are changed at once to find the
overall project outcomes, instead of
changing one at a time
 378

2-Expected monetary value analysis

is a statistical concept that calculates the average outcome (EMV = P*I)when the future
includes scenarios that may or may not happen (i.e., analysis under uncertainty
 379

3-Modeling and Simulation

A project simulation uses a model that translates the specified detailed uncertainties of the
project into their potential impact on project objectives. Simulations are typically performed
using the Monte Carlo technique. In a simulation, the project model is computed many times
(iterated), with the input values (e.g., cost estimates or activity durations) chosen at random for
each iteration from the probability distributions of these variables. The result of the iterations is
reflected in an S-curve
 380

Qualitative Risk Analysis Quantitative Risk Analysis

-Predicts likely project outcomes based
on combined effects of risks
- Uses probability distributions to
-Addresses individual risks descriptively
characterize the risk’s probability and
-Assesses the discrete probability of
impact
occurrence and impact on objectives if it
- Uses project model (e.g. Schedule,
does occur
cost estimate )
- Prioritizes individual risks for subsequent
- Uses a quantitative method, requires
treatment
specialized tools
- Adds to risk register
- Estimates likelihood of meeting
- Leads to quantitative risk analysis
targets and contingency needed to
achieve desired level of comfort
- Identifies risks with greatest effect on
overall project risk
 381

11.5 Plan Risk Responses

istheprocessofdevelopingoptionsandactionstoenhanceopportunitiesandtoreducethreatst
oprojectobjectives.Thekeybenefitofthisprocessisthatitaddressestherisksbytheirpriority,in
sertingresourcesandactivitiesintothebudget,scheduleandprojectmanagementplanasnee
ded.
Select Risk Characteristics

Collect and Analyze Data

Prioritize Risks

Categorize Risk Causes

Document Results
 382

Figure 11-18. Plan Risk Responses : Input, Tools & Techniques, and Outputs

Tools & Techniques

1 – Strategies for
negative risks or
Outputs
Inputs threats
2 – Strategies for 1 – Project
positive risks or documents
opportunities plan updates
1 – Risk 3 – Contingent 2 – Project
management plan response strategies documents
2 – Risk register 4 – Expert judgment updates
 383

11.5.2 Plan Risk Responses: Tools and Techniques

11.5.2.1 Strategies for Negative Risks or Threats:

AVOID REDUCE

RISK

ACCEPT TRANSFER
 384

1-Avo i d a n ce (Prevention)
1-Risk prevention 2-Changing the plan to eliminate a risk
by avoiding the cause/source of risk
3-Protect project from impact of risk
Examples:
- Change the implementation strategy - Do it ourselves (do not subcontract)
- Reduce scope to avoid high risk deliverables
- Adopt a familiar technology or product
2-Tra n s fer: (Shift Responsibility)
Shift responsibility of risk consequence to another party
Does NOT eliminate risk
Most effective in dealing with financial exposure
Buy/subcontract: move liabilities
Selecting type of Procurement contracts: Fixed Price
Insurance: liabilities + bonds + Warranties
 385

3-Acceptance: Accept consequences

- Used when project plan cannot be changed &
other risk response strategy cannot be used
-Active Acceptance
- Develop a contingency plan to execute if the risk occur
- Contingency plan = be ready with Plan B
- Passive Acceptance
- Deal with the risks as they occur = No Plan B prepared
4-Mitigation (Corrective action)
- Seeks to reduce the impact or probability of the risk event to an acceptable threshold
- Be proactive: Take early actions to reduce impact/probability and don’t wait until the
risk hits your project
- Examples:
- Staging - More testing – Prototype - Redundancy planning
- Use more qualified resources
 386

Contingency allowance/ reserve

Established amount of reserve (e.g.: time and/or money) to account for the
identified known risks.
Amount is decided based on probability and impact

Contingency Reserve
Used to manage identified risks
Estimated based on expected monitory value (EMV), or decision tree method
the project manager has authority to use this reserve

Management Reserve
Used to manage identified risks
Calculated as a percentage of the cost, or time of project management approval
is required to use management reserve
 387

11.5.2.2 Strategies for Positive Risks or Opportunities

• 1-Exploit:
• Ensure opportunity is realized
• Ex: Assigning organization most talented resources to the project to reduce cost lower than
originally planned.
• 2-Share: Allocating some or all of the ownership to third part best able to capture the
opportunity
• Ex: Joint ventures, special-purpose companies
• 3-Enhance: Increase the probability and/or the positive impact of the opportunity
• Ex: Adding more resources to finish early
• 4-Accept:
• Welling to take advantage of opportunity if it comes, but not actively pursuing
• 11.5.2.3 Contingent Response Strategies
 388

Risk Response planning Output

• Residual Risk:
• risks that remain after avoidance, transfer or mitigation responses have been
taken. This also includes minor risks that have been accepted.
• Secondary Risk:
• risks that arise as a direct result of implementing a risk response
• Risk response plan ---fall back plan ---work around plan.
• Workaround Plans:
• Unplanned responses to emerging risks that were previously
unidentified or unexpected
 389

11.6 Control Risks

Is the process of responding to identified and unforeseen risk. It involves tracking

identified risk , identifying new risks , implementing risk response plans, and monitoring

their effectiveness.
 390

Figure 11-18. Plan Risk Responses : Input, Tools & Techniques, and Outputs

Tools &
Outputs
Techniques
Inputs
1 – Risk
1 – Work performance
reassessment
information
2 – Risk audits
1 – Risk management 2 – Change requests
3 – Variance and
3 – Project
plan trend analysis
management plan
2 – Risk register 4 – Technical
updates
3 – Work performance performance
4 – Project documents
data measurement
updates
5 – Reserve
4 – Work performance 5 – Organizational
analysis
reports process assets
6 - Meetings
updates
 391

11.6.2 Control Risks: Tools and Techniques

• 11.6.2.1 Risk Reassessment

• Control Risks often results in identification of new risks, reassessment
• of current risks, and the closing of risks that are outdated
• 11.6.2.2 Risk Audits
• Risk audits examine and document the effectiveness of risk responses in dealing with
identified risks and their root causes, as well as the effectiveness of the risk management
process.
• 11.6.2.3 Variance and Trend Analysis
• Many control processes employ variance analysis to compare the planned results to the actual
results
• 11.6.2.4 Technical Performance Measurement
• Technical performance measurement compares technical accomplishments during project
execution to the schedule of technical achievement.
 392

•11.6.2.5 Reserve Analysis

• Reserve analysis compares the amount of the contingency reserves remaining to
the amount of risk remaining at any time in the project in order to determine if
the remaining reserve is adequate.

•11.6.2.6 Meetings
Select Risk Characteristics

Collect and Analyze Data

Prioritize Risks

Categorize Risk Causes

Document Results
 393

• Question 1:
• Please refer to this Decision Tree which shows the analysis of profit/loss for the two
alternatives (i.e. to build or buy).
• What should the project Manager recommend?
1 –Build 2- Buy
3- Either Build or Buy
4- Project Manager should recommend a
Sensitivity Analysis before making a -build/buy
• Question2
In the recent status meeting, you discover that your project has a 65 percent chance of
making a USD 100,000 profit and a 35 percent chance of incurring a USD 100,000 loss. What is
the expected monetary value for the project?
Choice 1: USD 100,000 profit Choice 2: USD 100,000 loss
Choice 3: USD 30,000 profit Choice 4: USD 30,000 loss
 394

• Question3
In your project, you have completed Identify Risks process to determine which risks
may affect the project, and a risk register has been prepared. What should you do
NEXT?
Choice 1: Risk probability and impact assessment
Choice 2: Avoiding, transferring or mitigating negative risks
Choice 3: Exploiting, sharing or enhancing opportunities
Choice 4: Risk audits
• Question 4
In your project, you can use all the following tools and techniques for Plan Risk
Responses process EXCEPT:
Choice 1: Strategies for negative risks or threats
Choice 2: Contingent response strategies
Choice 3: Expert judgment Choice 4: Simulation
 395

QUESTION 5
In your project, you want to examine and document the effectiveness of risk
responses in dealing with identified risks and their root causes, as well as the
effectiveness of the risk management process. The tool you should use is:
Choice 1: Risk reassessment Choice 2: Variance Analysis
Choice 3: Technical performance measurement Choice 4: Risk Audit
Question 6 Workarounds differ from contingency plans in that:
Choice 1: Contingency plans are planned in advance and workarounds are not planned
in advance.
Choice 2: Workarounds are planned in advance and contingency plans are not
planned in advance.
Choice 3: Contingency plans include plans for force majeure events, e.g. natural
calamities, but workarounds are the residual risks in the project.
Choice 4: Workarounds only include plans for force majeure events, e.g. natural
calamities
 396

• Question 7:
• Joe is the project manager of a large software project. When it’s time to identify
risks on his project, he contacts a team of experts and has them all come up with a
list and send it in anonymously. What technique is Joe using?
• A. SWOT B. Ishikawa diagramming
• C. Delphi D. Brainstorming
• Question 8 :
• Susan is the project manager on a construction project. When she hears that her
project has run into a snag due to weeks of bad weather on the job site, she says
“No problem, we have insurance that covers cost overruns due to weather.” What
risk response strategy did she use?
• A. Exploit B. Transfer
• C. Mitigate D. Avoid
 397

Question answer
1 1
2 3
3 1
4 4
5 4
6 2
7 C
8 B
 398

12: PROCUREMNT MANGEMNT

AGENDA :
1- types of
contracts
2- procurement
processes
3- questions
 399

PROJECT PROCUREMENT MANAGEMENT

• Project Procurement Management includes the processes necessary to purchase or
acquire products, services, or results needed from outside the project team. The
organization can be either the buyer or seller of the products, services, or results of a
project.
• It also includes Contract Management and Change Control Processes.
• Includes controlling an contract issues by an outside organization.
• With this section, you will be able to:
• • List the required elements of a contract.
• • Describe the various types of contracts.
• • List the types of procurement documents.
• • Define various legal terms to know for the exam.
• • Calculate PTA – Point of Total Assumption.
• • List various negotiation tactics.
• • List contract closeout activities.
 400

What is a “CONTRACT”
• Contracts require formality.
• •All product and project management requirements should be specifically stated in
the contract:
• if it is not in the contract, it can only be done if a change is issued.
• if it is in the contract, it must be done or a change order, signed by both parties
issued.
• •Changes must be in writing. •Contracts are legally binding.
• •Contracts should help diminish project risk.
• •Most governments back all contracts by providing a court system for dispute
resolution.
• •Dependingontheapplicationsellercanbecalledacontractor,subcontractor,vendor,servi
ceprovider,orsupplier.
 401

• Dependingonbuyer’spositionintheprojectacquisition,buyercanbecalledaclient,custom
er,primecontractor,acquiringorganization,governmentalagency,servicerequestor,orpu
rchaser.
• •Duringthecontractlifecyclesellerisfirstcalledbidder,thentheselectedsource,andthent
hecontractedsupplierorvendor
• Know the procurement process.
• •Understand contract terms and conditions.
• •Makesurethecontractcontainsalltheprojectmanagementrequirements.
• •Help tailor the contract to the unique needs of the project.
• •Fitthescheduleforcompletionoftheprocurementprocessintotheschedulefor the
project.
• •Be involved during contract negotiation.
• •Protect the integrity of the project and the ability to get the work done.
• •Up hold the entire contract ,not just the contract statement of work.
• •Work with the contract manager to manage changes to the contract
 402

May be on the exam (not defined in PMBOK)

Centralized Decentralized

Advantages Disadvantages Advantages Disadvantages

PM easier access to No home department
Higher Expertise Multiple projects Contract expertise for the procurement
levels manager

Continuous Difficulties for PM Procurement Harder to maintain

improvement to obtain help manager more high level of
Standardized loyalty to project contracting expertise
practices
Duplication of effort
Defined career path
Little standardization

No career path
 403

Types of contracts:
MAIN TYPES:
• 1-Fixed-price contracts :
• This category of contracts involves setting a fixed total price for a defined product, service, or
result to be provided. Sellers under fixed-price contracts are legally obligated to complete such
contracts, with possible financial damages if they do not. Under the fixed-price arrangement,
buyers need to precisely specify the product or services being procured. Changes in scope may
be accommodated, but generally with an increase in contract price.

• Fixed Price (Lump Sum). Well defined scope/ product.

• Fixed total Price. Risk is on the seller.
• EXAMPLES:
A-Firm Fixed Price Contracts (FFP).
B-Fixed Price Incentive Fee Contracts (FPIF
C-Fixed Price with Economic Price Adjustment Contracts (FP-EPA). .
 404

2 -Cost-reimbursable contracts:(COST PLUS)

A type of contract involving payment to the seller for the seller`s actual costs, plus a fee
typically representing seller`s profit. It often include incentive clauses where, if the seller meets
or exceeds selected project objectives, such as schedule targets or total cost, then the seller
receives from the buyer an incentive or bonus payment .
• Scope is not exactly defined.
• Price is open based on the final costs the product will incur. Risk is on the buyer.
A .Cost Plus Fixed Fees Contracts (CPFF)
B. Cost Plus Incentive Fees Contracts (CPIF)
C .Cost Plus Award Fee Contracts (CPAF)
the vendor can receive an award fee based on subjective criteria that are broadly defined in the
contract. The actual fee is determined at the whim of the buyer.
D. CPPC (Cost Plus Percentage of Costs)
E. Cost Contract
The seller does not receive a profit – usually set up with not-for-profit organizations
 405

FIXED PRICE COST REIMBURSABLE

Contractor assumes risk Owner assumes risk

Contract includes anticipated Contractor is paid cost plus an

profits additional amount for overhead
and profit

Contractor is independent and Owner may direct work

performs the work as it sees fit

Scope of work is clearly defined The scope of work/cost may not

to enable an accurate estimate be clearly defined

Change order by owner No change orders, work is

increase or decrease the value performed and paid on a time
of the contract and materials basis
 406

3.Time and Material:

• A type of contract that is a hybrid contractual arrangement containing aspects of both cost-
reimbursable and fixed-price contracts. Time and material contracts resemble cost-
reimbursable type arrangements in that they have no definitive end, because the full value of
the arrangement is not defined at the time of the award. Thus, time and material contracts
can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely,
time and material arrangements can also resemble fixed-price arrangements. For example, the
unit rates are preset by the buyer and seller, when both parties agree on the rates for the
category of senior engineers.
• Cost is charged to identified tasks of an on going activity, ex. research.
• Scope per unit is defined.
• Risk is on the buyer.
• (seller has no incentive to control costs)
 407

FIXED PRICE VS. COST REIMBURSABLE

Standard contract terms and conditions:

Terms and conditions that are used for all contracts within the company.

Special provisions :
Terms and conditions created for the unique needs of the project.
 408

• Profit (fee)
• This is planned into the price the seller provides the buyer. Sellers usually have an acceptable
profit margin in mind. However, how much profit they actually receive is based on many
factors, including the contract terms and the seller s ability to manage the project.
• Cost
• This is how much an item costs the seller to create, develop, or purchase. A buyers costs can
include a sellers costs and profits.
• Target price
• This term is often used to compare the end result (final price) with what was expected (the
target price). Target price is a measure of success. Watch for similar terms. Target cost plus
target fee equals target price. (Remember, we are thinking about procurements from the
buyers point of view
• Price
• This is the amount the seller charges the buyer
 409

Sharing ratio:
Incentives are usually expressed as a ratio: e.g., This sharing ratio describes how the
cost savings or cost overrun will be shared; the first number represents the buyer
portion of the ratio and the second number represents the seller portion (buyer/seller).

Ceiling price
This is the highest price the buyer will pay; its a way for the buyer to encourage the
seller to control costs. The ceiling price is a condition of the contract that must be
agreed to by both parties before signing. Keep in mind that answers to calculations on
the exam can change when a ceiling price is mentioned.
 410

GENERAL NOTES
Point of total assumption (PTA)8 This only relates to fixed price incentive fee contracts and
refers to the amount above which the seller bears all the loss of a cost overrun.
PTA= [(CP –TP) / BSR] + TC
CP = Ceiling Price TP = Target Price
.
BSR = Buys Share Ratio TC = Target Cost
The ‘total cost’ , ‘estimated cost’, or ‘target cost’ (the three terms are synonymous), represents
the contracted cost without the profit.
The ‘total profit’ is the profit on the project.
The ‘total price’ equals the total cost plus the total profit.
The 'ceiling price' is the highest price the buyer will pay for the product or service.
The 'sharing ratio' represents the buyer share of the cost overrun.
 411

Question:
• what is the point of total assumption for a contract with a total cost of $1.2 million,
a profit of $160,000, a buyer's share ratio of 70% and a ceiling price of $1.5 million?
ANSWER :($1,500,000 - $1,360,000)/.70 + $1,200,000 = $1,400,000)

The Point of Total Assumption (PTA) - the point at which the

seller assumes all additional costs:
-Seller assumes 100% of costs
-PTA = ((Ceiling Price -Total Price) /Buyer's Share Ratio)) +
Target Cost
##For example, assume:
Total Cost (Target Cost): 2,000,000
Total Profit: 200,000
Total Price: 2,200,000 Ceiling Price: 2,450,000
Share Ratio: 80% buyer–20% seller
PTA = ((2,450,000 – 2,200,000)/
0.80) + 2,000,000 = 2,312,500
412
 413

12.1 Plan Procurement Management

Plan Procurement Management is the process of documenting project procurement decisions,
specifying the approach, and identifying potential sellers.

Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs

Inputs Tools & Outputs

1 – Project management
plan
2 – Requirements
documentation
3 – Risk register
5 – Project schedule
6 – Activity cost estimates
7 – Stakeholder register
8 – Enterprise
environmental factors
9 - Organizational process
assets
Techniques
1 – Procurement management
plan
2 – Procurement statement of
work
3 – Procurement documents
1 –Make-or-buy 4 – Source selection criteria
analysis 5 – Make-or-buy decisions
2 – Expert judgment 6 – Change requests
3 – Market research 7 – Project documents
4 - Meetings updates
 414

12.1.2 Plan Procurement Management: Tools and Techniques

• 12.1.2.1 Make-or-Buy Analysis:
• Process of gathering and organizing data about product requirements and analyzing them
against available alternatives including the purchase or internal manufacture of the product.
• Purchase or make - Purchase or renting/leasing
• Reasons to Buy:
1-Capacity and Capability
2-Exploit Opportunity
3-Shift risk (cost, time, or scope)
• Reasons to Make:
1-Idle resources
2-Want to control
3-Confidential information
 415

12.1.3 Plan Procurerent Management: Outputs

1.Procurement Management Plan:
• Contract type
• Risk management issues • Need for independent estimates
• Actions that are under the project management team's control
• Coordinating procurement activities with other project activities
• Constraints and assumptions Addressing long lead times
Addressing a make or buy decisions and linking them to estimate activity resources and develop
schedule process
• Setting schedule dates for contract deliverables
• Requirements for performance bonds or insurance contracts
• Establish direction provided to the sellers on developing a WBS
• Form and format for the procurement statement of work
• Identification of pre-qualified sellers
• Metrics used to manage contracts and evaluate sellers
 416

2.Procurement Statement of Work:

The procurement statement of work is where you write out all of the work
that needs to be done by a contractor. It tells you the scope of the work that
you’re going to contract to another company

Types of Procurement Statements of Work

Performance:
Conveys what the final product should accomplish.
Functional :
Conveys the end purpose or result (the minimum essential characteristics of
the product)
Design :
Conveys exactly what work is to be done and how it should be completed
 417

3.Procurement Documents
are used to solicit proposals, quotes, and bids from sellers
1-Request for Information.
2-Request for Proposal (Tender), RFP:
• request a price and detailed proposal on how the work will be accomplished.
3-invitation for Bid, RFB: is a document that tells sellers that you want them to
submit proposals. Request price of all the work
4-Request for Quotation: This is a way to tell sellers that you want them to give you a
quote on a fixed-price contract to do the work. price quote per item, hour, or foot
(T&M contracts).
5-Tender Notice. 6- Invitation for Negotiation. 7-Seller Initial Response.
Terminology may vary by industry.
• purchase order is something you’ll send out to a seller who you know that you want
to work with. It’s an agreement to pay for certain goods or services
 418

4.Source Selection Criteria:

• The project team must be prepared to compare the proposals received in an
unbiased manner based on identified & documented selection criteria to rate or
score proposals.
• Includes but not limited to:
• 1-Past performance
• 2-Understanding of need
• 3-Overall or life cycle cost
• 4-References
• 5-Technical capability and approach
• 6-Risk
• 7-Management approach
• 8-Financial stability and capacity
 419

12.2 Conduct Procurement

- Obtaining seller responses, selecting a seller, and awarding a contract.
- The key benefit is to provide alignment of internal and external stakeholder
expectations through established agreements.
Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs

Inputs Tools & Techniques

Outputs
1 – Procurement management 1 – Bidder conference
plan 2 – Proposal evaluation 1 – Selected sellers
2 – Procurement documents techniques 2 – Agreements
3 – Source selection criteria 3 – Independent 3 – Resource
4 – Seller proposals estimates calendars
5 – Project documents 4 – Expert judgment 4 – Change requests
6 – Make-or-buy decisions 5 – Advertising 5 – Project
7 – Procurement statement of 6 – Analytical management plan
work techniques update
8 - Organizational process 7 – Procurement 6 –Project
assets negotiations documents updates
 420

12.2.2 Conduct Procurements: Tools and Techniques

1: Bidder Conferences
• Also known as contractor, vendor, or pre-bid conferences.
• The purpose of these conferences is to clarify any of the information not clearly stated in the
RFP.
• Creates a clear and common understanding of the procurement.
• Proposals received will be more clearly aligned with project requirements, due to the fact that
bidder conferences make the requirements clear.
BENFITS OF BIDDER CONFORENCE
• A meeting with prospective sellers to make sure they all understand the procurement and
have a chance to ask questions.
• Watch for :
- Collusion
- Sellers not asking question in front of the competition
• Make sure all the questions and answers are documented and distributed to all the potential
sellers.
 421

2:Proposal Evaluation Techniques

(agreed by Evaluation Committee On complex procurements, where source selection will be
made based on seller responses to previously defined weighted criteria, a formal evaluation
review process will be defined by the buyer’s procurement policies. The evaluation committee
will make their selection for approval by management prior to the award.
• 3: Independent Estimates :
• the procuring organization may elect to either prepare its own independent estimate, or
have an estimate of costs prepared by an outside professional estimator, to serve as a
benchmark on proposed responses. Significant differences in cost estimates can be an
indication that the procurement statement of work was deficient, ambiguous, and/or that
the prospective sellers either misunderstood or failed to respond fully to the
procurement statement of work.
4: Expert Judgment
5: Advertising
• Increase the number of potential sellers
 422

6:Analytical Techniques:
can help organizations identify the readiness of a vendor to provide the desired end
state, determine the cost expected to support budgeting, and avoid cost overruns due
to changes. By examining past performance information, teams may identify areas that
may have more risk and that need to be monitored closely to ensure success of the
project.
7: Procurement Negotiations:

clarify the structure, requirements, and other terms of the purchases so that mutual
agreement can be reached prior to signing the contract. Final contract language reflects
all agreements reached. Such as responsibilities, authority to make changes, applicable
terms and governing law, technical and business management approaches, proprietary
rights, contract financing, technical solutions, overall schedule, payments, and price.
The project manager may not be the lead negotiator on procurements. The project
manager and other members of the project management team may be present during
negotiations to provide assistance, and, if needed, to add clarification of the project’s
technical, quality, and management requirements.
 423

Conduct Procurement – Outputs

• 1.Selected sellers; are those who have been judged to be in a competitive range
based upon the outcome of the proposal or bid evaluation, and who have negotiated
a draft contract that will become the actual contract when an award is made. Final
approval of all complex, high-value, high-risk procurements will generally require
organizational senior management approval prior to award.
• 2.Agreements; Depending upon the application area, an agreement can also be
called an understanding, a contract, a subcontract, or a purchase order. It is the
project management team’s responsibility to make certain that all agreements meet
the specific needs of the project while adhering to organizational procurement
policies
• 3.Resource calendars; The quantity and availability of contracted resources and
those dates on which each specific resource
• or resource group can be active or idle are documented.
 424

12.3 Control Procurements:

Control Procurements is the process of managing procurement relationships,
monitoring contract performance, and making changes and corrections to contracts as
appropriate
Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs

Tools & Techniques Outputs

1 – Contract change 1 – Work performance

control system
Inputs 2 – Procurement
information
2 – Change requests
performance reviews 3 – Project
3 – Inspections and audits management plan
1 –Project management plan 4 – Performance update
2 – Procurement documents reporting 4 – Project documents
3 – Agreements 5 – Payment systems updates
4 – Approved change requests 6 – Claims administration 5 - Organizational
5 – Work performance reports 7 – Records management process assets updates
6 – Work performance data system
 425

Control Procurements – T & T

• 1.Contract Change Control System
• Defines the process how the contract may be modified.
• Includes the paperwork, tracking systems, dispute resolution procedures, and approval levels
necessary for authorizing changes.
• Should be integrated with the integrated change control system.
• 2.Procurement Performance Review:
• A structured review on the sellers’ progress to deliver as per planned scope – quality –
schedule – quality, etc
• 3.Inspections and Audits:
• required by the buyer and supported by the seller to identify any weaknesses in the seller’s
work performance or deliverables.
• 4.Performance Reporting.
 426

• 5.Payment Systems: Handled by the accounts payable department of the

performing organization. Must include reviews and approvals of seller invoices by the
project team prior to issuing a payment to a seller
• 6.Claims Administration: (disputes or appeals)
• Where buyer and seller cannot agree on compensation for the change, or that a
change has even occurred.
• Should be documented and managed in accordance with the terms of the contract.
• Might involve arbitration or litigation.
• 7.Record Management System:
• A set of processes and automation tools consolidated into the project Management
Information System to manage contract documentation and records.
 427

12.4 Close Procurements

• The process of completing each project procurement.
• Involves verification that all of the procurement work was completed and accepted.
(Product Verification).

Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs

Inputs Tools & Techniques Outputs

1 – Procurement
audits
2 – Procurement 1 – Closed
1 – Project
negotiations procurements
management plan
3 – Records 2 - Organizational
2 –Procurement
management system process assets updates
documents
 428

• Close Procurements is the process of completing each procurement. The key

benefit of this processes that it documents agreements and related
documentation for future reference.
• •The Close Procurements process also involves administrative activities such as
finalizing open claims, updating records to reflect final results ,and archiving such
information for future use. Close Procurements addresses each contract
applicable to the project or project phase. In multi phase projects, the term of
contract may only be applicable to given phase of the project. In these cases, the
Close Procurements process closes the procurement(s) applicable to that phase
of the project.
• •Early termination of contract is a special case of procurement closure that can
result from a mutual agreement by both parties, from the default of one party,
or for convenience of the buyer if provided for in the contract
 429

• Tools & Techniques

• 1.Procurement audits; is a structured review of the procurement process
originating from the Plan Procurement Management process through Control
Procurements.
• 2.Procurement Negotiations; In all procurement relationships, the final
equitable settlement of all outstanding issues, claims, and disputes by
negotiation is a primary goal. Whenever settlement cannot be achieved through
direct negotiation, some form of alternative dispute resolution (ADR) including
mediation or arbitration may be explored. When all else fails, litigation in the
courts is the least desirable option.
• 3.Records management system; is used by the project manager to manage
contract and procurement documentation and records. Contract documents and
correspondence are archived through the records management system as part of
the Close Procurements process
 430

•Out puts
• 1.Closed Procurements; The buyer, usually through its authorized procurement
administrator, provides the seller with formal written notice that the contract has been
completed. Requirements for formal procurement closure are usually defined in the
terms and conditions of the contract and are included in the procurement management
plan.
• 2.Organizational Process Assets Updates:
• •Procurement file. A complete set of indexed contract documentation, including the
closed contract, is prepared for inclusion with the final project files.
• •Deliverable acceptance. Documentation of formal acceptance of seller-provided
deliverables may be required to be retained by the organization. The Close Procurement
process ensures this documentation requirement is satisfied. Requirements for formal
deliverable acceptance and how to address nonconforming deliverables are usually
defined in the agreement.
• •Lessons learned documentation. Lessons learned, what has been experienced, and
process improvement recommendations, should be developed for the project file to
improve future procurements
 431

• Terms and Conditions

• •Arbitration:Amethodtoresolvedisputesthatusesprivatethirdpartiestorenderadecisionont
hedispute.Itispaidforbythepartiesandisusedbecauseitisusuallyfasterandcheaperthantheco
urts.
• •Assignment:Describesthecircumstancesunderwhichonepartycanassignitsrightsorobligati
onsunderthecontracttoanother.
• •Authority: Who has the power to do what?
• •Bonds:Describesthepaymentorperformancebonds,ifany,thatmustbepurchased.
• •Breach/Default:Abreachoccurswhenanyobligationofthecontractisnotmet.Abreachonthe
seller'spartcannotbefixedbyabreachonthebuyer'spart.
• •Force majeure •Incentives.
• •Indemnification (liability). •Intellectual property.
• •Liquidated damages. •Material breach.
• •Waivers Statements •Warranties.
• •Letter of Intent. •Privity: contractual relationship
 432

• Attacks: "If you don't know the details of your own company, perhaps you should get out
of the business!“
• •Personal Insults: "If you do not understand what you are doing, perhaps you should find
another job!"
• •Good Guy/Bad Guy: One person is helpful to the other side while another is difficult to
deal with.
• •Deadline: "We have a flight leaving at 5 p.m. today and must finish negotiations before
that time."
• •Lying Not telling the truth: This may be obvious or hidden.
• •Limited Authority.
• •Missing Man.
• •Fair and Reasonable.
• •Delay.
• •Extreme Demands: "We planned to give you a computer manufactured in 1988 to meet
the requirement to deliver 'a computer' in the contract."
 433

Procurement Definitions
•Back Charge: Cost of corrective action by purchaser and chargeable to the supplier
under terms of the contract.
•Bid Protest: allows an unsuccessful supplier an opportunity to protest the award of
a government contract to another supplier.
•Lowball: In order to get an award, a contractor may submit at bid that's
unrealistically low.
•Non-Disclosure Agreement: is an agreement between the buyer and any
prospective sellers stating what information or documents they will hold confidential
and control, and who in their organization will gain access to the confidential
information.
•Standard Contract: Companies frequently have standard, preauthorized contracts
for the purchase of goods or services.
•Single Source Contract: directly with your preferred seller without going through the
procurement process.
•Sole Source: There is only one seller. This might be a company that owns a patent
 434

Question 1:
You are considering whether to buy or make a software product. If you want to buy,
the cost is $80,000, and the cost of procuring and integrating the product in your
company is $1,000. If you want to build it yourself, the product will require seven
engineers working for three months. The salary of each software engineer is $4,000
per month. The other related miscellaneous costs allocated to the project are
$2,000. Which option will you choose?
1- Buy. 2-Build.
3-Neither build nor buy. 4-Need more information on suppliers to make a decision.
Question 2 :
• The following is the data for a CPIF project you are managing:
• Target cost is $100,000; Actual cost is $80,000
• Target fee is $20,000; Maximum fee is $25,000;
• Sharing ratio is 60:40. What should be the final price of the contract?
1-$100,000 2-$108,000 3-$105,000 4-$92,000
 435

Question3
You are project manager and now you are middle of comparing proposals received
from sellers . Comparing proposals received from sellers done in _______ .
A. Plan Procurements
B. Conduct Procurements
C. Administer Procurements
D. Close Procurements
Question 4
Complete final contract performance reporting and verify product is done in
_______ .
A. Plan Procurements
B. Conduct Procurements
C. Administer Procurements
D. Close Procurements
 436

• Question 5. You’ve been contracted by an industrial design firm to manage its contracting.
Your client asks you to take over the negotiations for an important contract to design a new
remote-control lighting system You’ve narrowed it down to one seller, and now you’re
working with the legal department at the buyer to negotiate the terms of the contract.
Which of the following BEST describes your goal?
• A. You want to get the best deal for your client by making sure the seller’s price is as low as
possible, no matter what it costs them.
• B. You want to get a fair deal for both the buyer and the seller.
• C. You want to make sure that the seller gets as much money as possible.
• D. You want to prolong the negotiation so that you earn a higher fee.
• Question 6 :. You’ve been contracted by a construction company to manage its contracting.
It has a choice of either buying an excavator or renting it. To buy it, the company would have
to pay $105,000, but owning it will require approximately $10,000 in maintenance costs per
year. The price to rent the excavator is $5,000 per month, with a one-time service charge of
$2,000. What’s the minimum number of months the company needs to use the excavator in
order for it to make sense to buy it rather than rent?
• A. 8 months B. 16 months C. 21 months D. 25 months
 437

• Question 7 . You’re managing a project when you and the seller both agree that you need
to have the seller add more resources to the project in order to finish on time. The number
of resources is written into the contract. What’s the BEST way to proceed?
• A. Your project will be late because you can’t change the contract once it’s signed.
• B. You need to convince the buyer to sign a new contract.
• C. You need to use the contract change control system to make the change to the contract.
• D. You need to use claims administration to resolve the issue.
• Question 8 . Which of the following BEST explains the difference between a seller audit
during Control Procurements and a procurement audit during Close Procurements?
• A. The seller audit reviews the products being created, while the procurement audit reviews
how well the seller is doing the job.
• B. The procurement audit reviews the products being created, while the seller audit reviews
how well the seller is doing the job.
• C. The seller audit reviews the products being created, while the procurement audit is used to
• examine successes and failures and gather lessons learned.
• D. The procurement audit reviews the products being created, while the seller audit is used to
examine successes and failures and gather lessons learned
 438

Question9 . Which of the following BEST describes the “point of total assumption” for
a contract?
• A. The point in a cost-plus contract where the buyer assumes that the seller will need to
be paid
• B. The total cost of a T&M contract
• C. The point in a fixed-price contract where the seller has to assume all costs going
forward
• D. The total number of resources required for a contract
• Question 10 . You’re trying to decide whether or not to contract out a construction
job. To do it within your company, you will have to hire an engineer for $35,000 and pay
a construction team $15,000 per week. A contractor quotes you a price of $19,000 per
week, and your expert agrees that you won't find a lower price than that. The job will
take 16 weeks. What’s the BEST way to proceed?
• A. Pay the contractor to do the job.
• B. Select a T&M contract.
• C. Don’t contract out the work; hire the engineer and pay the construction team to do the
work.
• D. Make sure the contract has a force majeure clause.
 439

Question Answers
1 1

2 3
3 B

4 D
5 B

6 c
7 B

8 D
9 C

10 C
 440

13 :STAKHOLDER MANGEMNT

AGENDA :
1- stakeholder
processes
2- questions
 441

Project Stakeholder Management

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.

-Close relationships with stakeholders can provide an early warning system for
problems on the project
• -Stakeholder requirements and expectations sometimes change over the course of
the project.
442
 443

• 13.1 Identify Stakeholders:

• Identify Stakeholders is the process of identifying the people, groups, or
organizations that could impact or be impacted by decision ,activity, or outcome
of the project, analyzing and documenting relevant information regarding their
interests ,involvement ,interdependencies, influence, and potential impact on
project success. The key benefit of this process is that it allows the project
manager to identify the appropriate focus for each stakeholder or group of
stakeholders
 444

Figure 13-2. Identify Stakeholders : Input, Tools & Techniques, and

Outputs

Inputs

Tools & Techniques

1 – Project charter Outputs

2 – Procurement
documents
3 – Enterprise 1 – Stakeholder analysis
environmental factors 2 – Expert judgment 1 – Stakeholder
4 - Organizational 3 - Meetings register
process assets
 445

Identify Stakeholders: TT

• 13.1.2.1 Stakeholder Analysis

• Stakeholder Analysis; is a technique of systematically gathering and analyzing
quantitative and qualitative information to determine whose interests should be taken
into account throughout the project. It identifies the interests, expectations, and
influence of the stakeholders and relates them to the purpose of the project.
• Stakeholder analysis generally follows the steps described below:
• •Identify all potential project stakeholders and relevant information, such as their roles,
departments, interests, knowledge, expectations, and influence levels. Key stakeholders
are usually easy to identify. Identifying other stakeholders is usually done by interviewing
identified stakeholders and expanding the list until all potential stakeholders are included.
• •Analyze the potential impact or support each stakeholder could generate, and classify
them so as to define an approach strategy. In large stakeholder communities, it is
important to prioritize the stakeholders to ensure the efficient use of effort to
communicate and manage their expectations.
• •Assess how key stakeholders are likely to react or respond in various situations, in order
to plan how to influence them to enhance their support and mitigate potential negative
impacts.
 446

There are multiple classification models used for stakeholders analysis, such as:
•Power/interest grid, grouping the stakeholders based on their level of authority
(“power”) and their level or concern (“interest”) regarding the project outcomes;
•Power/influence grid, grouping the stakeholders based on their level of
authority (“power”) and their active involvement (“influence”) in the project;
•Influence/impact grid, grouping the stakeholders based on their active
involvement (“influence”) in the project and their ability to effect changes to the
project’s planning or execution (“impact”); and
•Salience model, describing classes of stakeholders based on their power (ability
to impose their will), urgency (need for immediate attention), and legitimacy (their
involvement is appropriate
447
 448

13.1.3 Identify Stakeholders: Outputs

13.1.3.1 Stakeholder Register:
• Stakeholder Register; 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. The
stakeholder register should be consulted and updated on a regular basis, as
stakeholders may change—or new ones identified—throughout the life cycle of the
project.
449
 450

13.2 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. The key benefit of this process is that it
provides a clear, actionable plan to interact with project stakeholders to support the project’s
interests. Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs

Inputs Tools & Outputs

Techniques
1 – Project
management plan
2 – Stakeholder
register 1 – Expert
1 – Stakeholder
3 – Enterprise judgment
management plan
environmental factors 2 – Meetings
2 – Project
4 - Organizational 3 – Analytical
documents updates
process assets techniques
 451

General notes :
PLAN COMMUNICATION VS.PLAN STAKHOLDER

The communications management plan emphasizes the details about the technology,
methods, and models of communication– the how of communication.

The stakeholder management plan explains the why of communications– why

stakeholders need to receive certain information will help in stakeholder management
 452

13.2.2 Plan Stakeholder Management: TT

13.2.2.3 Analytical Techniques:
The current engagement level of all stakeholders needs to be compared to the
planned engagement levels required for successful project completion. 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:
1-Unaware:. Unaware of project and potential impacts.
2-Resistant. Aware of project and potential impacts and resistant to change.
3-Neutral. Aware of project yet neither supportive nor resistant.
4- Supportive. Aware of project and potential impacts and supportive to change.
5-Leading.
Aware of project and potential impacts and actively engaged in ensuring the project
is successful.
 453

The current engagement can be documented using Stakeholders Engagement

Assessment Matrix, as shown in where C indicates the current engagement, and D
indicates the desired engagement. The project team needs to identify the desired
engagement level for the current phase of the project, based on available information.
•Through this analytical process, gaps between the current and desired engagement
levels can be identified. Actions and communications required to close these gaps can
be identified by the project team using expert judgment
 454

13.2.3 Plan Stakeholder Management: Outputs

13.2.3.1 Stakeholder Management Plan:
In addition to the data gathered in the stakeholder register, the stakeholder management plan
often provides:
1-Desired and current engagement levels of key stakeholders;
2-Scope and impact of change to stakeholders;
3-Identified interrelationships and potential overlap between stakeholders;
4-Stakeholder communication requirements for the current project phase;
5-Information to be distributed to stakeholders, including language, format, content, and level
of detail;
6-Reason for the distribution of that information and the expected impact to stakeholder
engagement;
7-Time frame and frequency for the distribution of required information to stakeholders; and
8-Method for updating and refining the stakeholder management plan as the project
progresses and
develops.
 455

13.3 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.

Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs

Tools &
Inputs Outputs
Techniques
1 – Issue log
2 – Change requests
1 – Stakeholder 3 – Project
management plan 1 – Communication management plan
2 – Communications methods updates
management plan 2 – Interpersonal 4 – Project documents
3 – Change log skills updates
4 - Organizational 3 – Management 5 – Organizational
process assets skills process asset updates
 456

13.3.2 Manage Stakeholder Engagement: Tools and Techniques

1. Communication Methods
2. .Interpersonal Skills:
 457

3.Management Skills ; applies management skills to coordinate and harmonize the

group toward accomplishing the project objectives. 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

Out puts

1.Issue Log; Managing stakeholder engagement may result in the development of an

issue log. This log is updated as new issues are identified and current issues are
resolved.
 458

13.4 Control Stakeholder Engagement

Control Stakeholder Engagement is the process of monitoring overall project
stakeholder relationships and adjusting strategies and plans for engaging stakeholders.
The key benefit of this process is that it will maintain or increase the efficiency and
effectiveness of stakeholder engagement activities as the project evolves and its
environment changes.
Figure 11-2. Plan Risk Management : Input, Tools & Techniques, and Outputs

Inputs Tools & Outputs

Techniques 1 – Work performance
information
1 – Project 2 – Change requests
management plan 1 – Information 3 – Project
2 – Issue log management management plan
3 – Work systems update
performance data 2 – Expert 4 – Project documents
4 – Project judgment updates
documents 3 - Meetings 5 – Organizational
process asset updates
 459

Question 1 Matt, the sponsor of a large publishing project, meets with all of the
stakeholders on the project to ask for their support in an upcoming testing event.
Which engagement level is he displaying?
A. Unaware
B. Resistant
C. Supportive
D. Leading
Question 2:
Which of the following is used to classify critical stakeholders on a project as a
“manage closely” approach?
1 – Identify stakeholders
2 – Plan stakeholder management
3 – Stakeholder analysis
4 – Plan communication management
 460

Question 3:
Which of the following would NOT be considered a useful organizational process
asset when identifying stakeholders?
1 – Lessons learned from previous phases
2 – Stakeholder register templates
3 – Stakeholder registers from previous projects
4 – Organizational culture for identifying stakeholders
Question 4:
It is important for the project manager to effectively engage stakeholders
throughout the project life cycle in order to ensure support of the project’s
objectives. Analytical techniques are used to ?
1 – Compare current to planned stakeholder engagement levels
2 – Keep stakeholders satisfied
3 – Engage stakeholders
4 – Analyze the effectiveness of the stakeholder management plan
 461

Question 5:
Can anyone let me know ,what is the collective name for individuals or groups who
may be affected by a project?
A - Customers
B - Project Support
C - Stakeholders
D - Team members
Question 6:
Can anyone let me know , which is the tool used by a project manager to develop a
strategy to manage stakeholder expectations?
A - Stakeholder Register
B - Stakeholder analysis influence Grid matrix
C - Issue Log
D - Stakeholder analysis matrix
 462

Question 7:
Anthony is currently managing a bridge construction project. The project is in the
execution phase. During the planning phase of the project, Anthony developed a
comprehensive stakeholder management plan for the project. However, the
frequency of the plan review has not been defined. How often should the
stakeholder management plan be reviewed by Anthony?
A. On a monthly basis.
B. The stakeholder management plan cannot be reviewed during the execution of the project.
C. On a weekly basis.
D. On a regular basis; frequency needs to be decided by Anthony.
Question8 :
Jim is managing a road network design project for a government agency. He is
currently carrying out the Plan Stakeholder Management process for the project.
Which of the following documents will provide the list of project stakeholders to Jim
for this process?
A. Organizational process assets B. Enterprise environmental factors
C. Stakeholder register D. Project management plan
 463

• Question 9 . In a monthly steering meeting, you ask one of the stakeholders on

your project if she has reviewed the latest document updates you’ve made since
the last meeting. She says, “I’m not working on that; I’m not even sure what
• it is.” How would you BEST describe her level of engagement?
• A. Unaware B. Resistant C. Supportive D. Leading
• Question 10 . You’re managing a construction project. You created a stakeholder
register and Stakeholder Management plan,and now the team is working on the
project. You’ve been managing the work, and now you’re looking at the work
performance data to keep your stakeholders informed of the status of the project.
You’ve discovered a change in the way your stakeholders look at the budget for
your project. Which of the following BEST describes the next thing you should do?
• A. Update the risk register to include any changes to risk strategy.
• B. Compare the work performance information against the time, cost, and scope baselines and
look for deviations.
• C. Create a change request and update the issue log and Cost Management plan to reflect the
approved change. D. Hold a status meeting
 464

Question c Answer
1 C
2 3
3 4
4 1
5 C
6 D
7 D
8 C
9 A
10 C
465
 466

PROSESSIONAL RESPONSIPLITY

CODE OF CONDUCT
 467

• Project Management Institute PMI

• The PMI Code of Ethics and Professional Conduct

• You will sign this testimony.

• As a PMI Project Management Professional (PMP)
• I agree to support and adhere to the responsibilities described in the PMI PMP
Code of Professional Conduct
 468

I. Responsibilities to the Profession:

A. Compliance with all organizational rules & policies

• 1.Responsibility to provide accurate & truthful representations concerning all

information directly or indirectly related to all aspects of the PMI Certification
Program
• 2.Upon a reasonable and clear factual basis, responsibility to report possible
violations of the PMP Code of Professional Conduct by individuals in the field of
project management.
• 3.Responsibility to cooperate with PMI concerning ethics violations and the
collection of related information.
 469

B. Candidate/Certified Professional Practice :

• 1.Responsibility to provide accurate, truthful advertising & representations

concerning qualifications, experience & performance of services.
• 2.Responsibility to comply with applicable laws, regulations and ethical standards
governing professional practice in the state/province and/or country when
interacting with PMI and when providing project management services.
• 3.Responsibility to act in an honest & ethical manner when interacting with PMI and
when providing project management services.
• 4.Responsibility to maintain and respect the confidentiality of the contents of the
PMP Examination.
 470

C. Advancement of the Profession :

• 1.Responsibility to recognize and respect intellectual property developed or owned

by others including all activities related to professional work and research.
• 2.Responsibility to support and disseminate the PMP Code of Professional Conduct
to other PMI certified.
 471

II. Responsibilities to Customers & the Public:

• A. Qualifications, experience & performance of professional services :

• Professional Responsibility
• 1.Responsibility to provide accurate and truthful representations to the public in
advertising & public statements concerning costs, services and expected results.
• 2.Responsibility to maintain and satisfy the scope and objectives of professional
services, unless otherwise directed by the customer.
• 3.Responsibility to maintain and respect the confidentiality of sensitive information
obtained in the course of professional activities or otherwise where a clear obligation
exists.
 472

B. Conflict of interest situations and other prohibited professional conduct

:

• 1.Responsibility to ensure that a conflict of interest does not compromise legitimate

interests of a customer, or influence/interfere with professional judgments.

• 2.Responsibility to refrain from offering or accepting inappropriate payments, gifts or

other forms of compensation for personal gain, unless in conformity with applicable
laws or customs of the country where project management services are being
provided.
 473

III. Administration of Code of Conduct:

• By becoming PMP certified, you agree to abide by this Code of Conduct. PMI
reserves the right to suspend or revoke the credential of any PMP certified who is
determined to have committed a violation of this Code or otherwise failed to adhere
to the tenets of this Code.
• Ethical Values that Support PMP Code of Conduct
• 1.Responsibility: Being accountable to our actions both as to developing our
competencies as project manager practitioners and in conducting ourselves in the
workplace as volunteers.
• 2.Respect: promoted an environment of cooperation and trust.
• 3.Fairness: shows we make decisions on impartial and objective criteria for the
common good and not the personal favoritism of personal self – interest.
• 4.Honesty: Speaking truth and acting in a truthful manner, not withholding
information that would mislead others regarding truth.
• Ethical Values that Support PMP Code of Conduct
 474

• You should
• Do the right thing
• Follow the right process
• Act ethically, fairly and professionally
• Watch for conflicts of interest or their appearances
• Report violation
• Increase knowledge and practices
• Deal with problems
• Balance stakeholders interests
• Tell the truth in reports
• Follow copyright laws
• Do not give or take bribes
 475

Remember
If senior management requires a PM to submit a study, where the PM has data insufficiency: the
PM should explain in writing and in the oral presentation that he can’t complete the project
because of incomplete data.
•PMs shouldn’t accept gifts from 3rd parties because it could be interpreted as personal gain.
•Quality Audits is one way to improve project management services because their results will
contribute to project management base and sharing of best practices.
•If stakeholders disagree about the expected improvement of a project the best action should
make is a feasibility study/alternatives analysis.
•If a sponsor specifies that a particular project should be denied any scope change, the PM must
reject any scope changes from the stakeholders.
•When a country requires my company to hire only native laborers & subcontractors this is a
Legal constraint.
•When a PM discovers a new theory that improves the SPI or CPI, he must document lessons
learned and share it with the company.
 476

• When the project manager is running over the projects’ budgeted cost the PM will
NOT ask management to reconsider the project.
• If line manager informs a line manager a PM that the schedule must be delayed
because his people can’t perform any faster then the PM must work with the line
manager to come up with a plan for the sponsor.
• If the vendor takes the PM and his wife to supper without expecting something in
return this doesn’t break the professional code of conduct
• If my research & development did very poorly, and verification is quick and
inexpensive, the PM should perform additional testing to verify the results before
informing senior management about the situation.
• A major cause of a lack of commitment to the project is differences between
personal and project objectives.
• Copying contents of a book owned by another without reference to the book or
author is lack of respect for intellectual property owned by others
 477

Question 1:
In a project , some stakeholders think 50% improvement as a result is possible,
others thought 30% is more applicable, you as a PM think 10% is more realistic,
what is the best action?
A. Move forward with the project and see what will happen
B. Average the numbers and use that as expectation
C .Perform feasibility analysis. D. Ask the sponsor to make the final decision
Question2 :
You are in the middle of a new product development for your publicly traded
company when you discover that the previous project manager made a US $
3,000,000 payment that was not approved in accordance with your company
policies. Luckily, the project CPI is 1.2 what should you do?
A. Bury the cost in the largest cost center available
B. Put the payment in the escrow amount
C. Contact your manager. D. Ignore the payment
 478

Question 3
In informal discussion you had with another PMP certificate. He
mentioned how he was able to sit for the PMP certificate exam three
age false contact hour certificate. You should ?
A - Report this to PMi
B - Report this to manager
Colleague C - Do nothing since to a
D – Do nothing, since he had taken the PMP exam three years ago, and contact hour
certificates
Question 4
You are replacing PM in a project, he told the upper management that the project is
on track, after evaluation you discovered that the project is late and will take double
the time, what should you do?
A. Try to restructure the schedule to meet the project deadline
B. Report your assessment to upper management.
C. Turn the project back to the previous PM
D. Move with the project and report at the first milestone
 479

Question5
Near the end of your last project, additional requirements were demanded by a group of
stakeholders when they learned they would be affected by your project. This became a
problem because you had not included the time or cost in the project plan to perform
these requirements. What is the BEST thing you can do to prevent such a problem on
future projects?
A. Review the WBS more thoroughly, looking for incomplete descriptions
B. Review the charter more thoroughly examining the business case for “holes”
C .Pay more attention to stakeholder management.
D. Do a more thorough job of solicitation planning
Question 6
Your company policy allows you to gift customers within certain limit. By mistake, you
have given a gift to the customer's representative already which is beyond the limit
mentioned in your company policy. What should you do?
A. Forget it and don't tell anyone.
B. Contact your company's senior management and ask for assistance.
C. Ask your customer to return the gift.
D. Ask your customer to give you a gift which has the same cost
 480

Question 8
When the contract is halfway through, the buyer requests you to incorporate some
additional requirements which were not defined in the original contract since
satisfying the buyer is important, you go ahead and incorporate those requirements
as part of the project. According to PMI, this action is a violation of which aspect of
code of ethics and professional conduct?
A – Responsibility to maintain and satisfy the scope and objectives
B – Responsibility to ensure that a conflict of interest does not compromise legitimate interests
C - Responsibility to provide accurate and truthful representations
D - Responsibility to cooperate with PMI concerning ethics violation and collection of related
information
 481

Question answer
1 C
2 C
3 A
4 B
5 C
6 B
7 B
8 A