PMP Courseware

6
Ver 2017.1
PMP and The PMI Registered Education Provider logo are registered
mark of the Project Management Institute, Inc.
1. Introduction
PMP CTP
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"PMP" and the PMP logo are certification marks registered in the
1
United States and other nations;
Workshop Agenda
Introduction to PMI and PMP

PM Framework
Initiating Process Group
Professional and Social Responsibilities
Integration Management
Scope Management
Schedule Management
Cost Management
Quality Management
Resource Management
Communication Management
Risk Management
Procurement Management
Stakeholder Management
2
Introductions
Participant introduction
Name
Organization / Department
Total years of experience
Years of experience in project management
Your expectations from the workshop
3
Ground Rules
Mobile Phones: Silent mode please
Questions are welcome at any time
Respect view point of others
Keep discussions brief and to the point
Please be prompt in returning from breaks
Provide feedback as to where course can be improved – it will be useful for sub-
sequent sessions
4
Introduction to PMI
PMI® – the leading non-profit organization devoted to project management

Profession
Has a global coverage with members from various leading organizations
Propagates multiple Services – including Research & Education, Development of

Standards,
Certifications, Conferences, Products and recognition of PM related contributions.
Has City chapters and SIGs
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PMP® Certification
Project Management Professional (PMP ®) Certification is amongst the most coveted

Certifications globally.
Many organizations require PMP® as a prerequisite qualification for their Managers

executing large scale projects
Though it is industry generic, has seen lots of acceptability in IT and IT related

community
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Suggested Route map for PMP® Certification
I want to acquire Have Degree Yes

PMP® Certification qualification?
No
No
Have requisite
S
PM experience?
Have Diploma
qualification?
Yes
Become a PMI® Member

Prepare for PMP® Attend PM Training
examination
Apply for PMP® Take PMP® exam from

examination from Prometric Center Maintain
PMI® and get the ATT and clear the exam PMP® credential
7
On the PMP® examination pattern
It’s a 4 hour test – 200 questions – mixed randomly across Process groups- as per a set
pattern
Out of 200 questions, 175 are for final marking and remaining 25 are ‘pre-test’ questions
- which are included to assess if these questions can be included in the ‘Master set’
subsequently
Questions get mixed up in various process groups
8
PMP Exam Fee Structure
Membership Fees
o Annual membership Fee - $129
o One Time joining Fee - $ 10
• ----------
o Total cost of membership = $ 139
o Certification Fee
o For Members - $ 405
o For Non members - $ 555
o Total Cost of Certification (Members) - $544
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PMP® – Retake and Maintenance of credential
In case of failure, candidate can retake the exam at an additional fee ($ 275 for
members)
Certified PMP®s have to earn 60 PDU®s in a specified time duration through multiple
avenues as a CCR cycle- incl.:
Formal Academic education/ Giving lectures etc.

Publishing professional articles/ books on project management
Attending seminars / Undergoing additional trainings
Self directed learning
Continuance as a PM Practitioner
Volunteer activities
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PMI® Application forms and Audits
For each of the projects specified in the Application form as Experience verification,
candidates need to give a contact person’s name for reference
PMI® can schedule Audits to verify the experience Verification forms
Responding to PMI® Audit requires submission of supporting documentation - like

copies of educational certificates, endorsements for the projects handled and the
copy of the Training participation certificate.
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What we learnt here?
Overview of PMI®
PMP® examination – importance and structure
Keeping up the PMP® credential
12
2. Project Management
Framework
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PMBOK® and PMBOK® guide
Project Management Body of Knowledge (PMBOK®) describes knowledge unique to

the project management field
This PMBOK® Guide is different from a methodology. A methodology is a system of

practices, techniques, procedures, and rules used by those who work in a discipline.
This PMBOK® Guide is a foundation upon which organizations can build

methodologies, policies, procedures, rules, tools and techniques, and life cycle
phases needed to practice project management.
2
Project Management Processes
As per PMBOK ®( Sixth edition), 49 processes have been enumerated
These processes fall under five Process Groups of

Initiating
Planning
Executing
Monitoring & Controlling
Closing
Product oriented processes are different from project management processes
3
Project Management Process Groups
Initiation – Those processes performed to define a new project

by obtaining authorization to start the project. (Project Charter)
Planning – Those processes required to establish the scope,

refine objectives and defining the course of action required to
attain the objectives of the project (Project Management Plan) Initiation
Monitoring and Controlling

Executing – Those processes performed to complete the work
Planning
defined in the Project Plan (Deliverables)
Monitoring & Controlling – Those processes required to Execution

track, review and regulate the progress and performance of the
project (Change Requests)
Closing
Closing – Those processes required to finalize all activities
across all process groups to bring the project to an orderly end
(Lessons Learned)
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Project Management Process Groups in Adaptive environments
Initiation
Adaptive projects revisit and revalidate the project charter on a frequent basis. on
each iterative cycle of an adaptive life cycle project
Adaptive projects rely heavily on a knowledgeable customer. Identification of this

stakeholder or other stakeholders at the start of the project permits frequent
interactions when performing Execution and Monitoring and Controlling processes
Planning
Adaptive life cycles, develop a set of high-level plans for the initial requirements and
progressively elaborate requirements to an appropriate level of detail for the
planning cycle
Projects navigating high degrees of complexity and uncertainty should involve as

many team members and stakeholders as possible in the planning processes
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Execution
Work is directed through managed Iterations, which is short and fixed in duration
Work done in iteration is followed by a demonstration (retrospection). Benefits of
retrospection include:
o check progress against the plan and determines if any changes to the project
scope, schedule, or execution processes
o help manage stakeholder engagement by showing increments of work done
o allows issues with the execution approach to be identified and ideas for
improvements generated
o primary tool to manage project knowledge
While work is undertaken via short iterations, it is also tracked and managed
against longer-term project delivery. Trends such as velocity, team capacity, spends,
defect rates are extrapolated to track performance
Rather than PM selecting and sequencing work team members are empowered to
self-organize specific tasks as a group to best meet those objectives – better buy-in
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Monitoring & Controlling

Adaptive approaches track, review, and regulate progress and performance by
maintaining a Backlog. The backlog is prioritized by a business representative
Work is pulled from the top of the backlog for the next iteration based on business
priority and team capacity
Backlog acts as a single place for stakeholders to manage and control project work,
perform change control, and validate scope
Trends, and metrics on work performed, change effort and defect rates, Team
capacity, velocity are all used to measure progress and forecast.
These metrics and projections are shared with project stakeholders via trend graphs
(information radiators) to communicate progress, share issues, drive continuous
improvement activities, and manage stakeholder expectations
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Closing
Adaptive approaches in cases where a project is prematurely closed , there is a
thigh chance that some useful business value will already have been generated as
against predictive life cycles. This is because highest business value items are
prioritized.
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What is Project?
A project is a temporary endeavour undertaken to create a unique product, service or

result’ (Reproduced from PMBOK® Guide)
What are some of the characteristics of a project?

Has a start and end date (Temporary)
Unique endeavour
Objective oriented
Usually involve Progressive Elaboration and Rolling Wave Planning
Drive Change
Create Business Value
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Progressive Elaboration
Construct Home Progressing through steady

incremental steps
Location: City
Structure: Brick
3 Storeys
3 car garage
6 bedrooms
More Details
10
What is Project Management?
“Project Management is the application of Knowledge, Skills, Tools and Techniques to

project to meet project requirements”
(Reproduced from PMBOK® Guide)
Project Lifecycle is a part of Product Lifecycle
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Managing project Constraints
Budget
Schedule Resources
Quality Risk
Scope
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Related Endeavors
Portfolio - A portfolio is a collection of projects or programs and other work that are
grouped together to facilitate effective management of that work to meet strategic
business Objectives
Program – A Program is a group of related projects, managed in a coordinated way to

obtain benefits not available from managing them individually
Project
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Key differences between Project/Program and Portfolio Management
Theme Project Program Portfolio

Portfolios have a
Projects have a well defined
Program’s scope is Business scope which
scope which usually gets
Scope more attuned towards change with the
progressively elaborated
Benefits Management strategy of the
during the project life cycle
Organisation
Program Managers Portfolio Managers
create the overall Plan institute necessary
Project Managers use ‘Rolling
at the program level processes and
Planning Wave’ Planning during the
and guide the communication
project life cycle
Component Project structures relative to the
Managers aggregate portfolio
Program managers Portfolio Managers
oversee the Project mostly provide direction
Project Managers manage the
Management managers/ associated and alignment to
project team
operations to provide Organisational
leadership strategies
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Key differences between Project/Program and Portfolio Management
Theme Project Program Portfolio

Program managers are Portfolio Managers are
Project Manager tries to
open to changes open to changes driven
Change control keep the Changes to a
coming from Internal/ by Market and
minimum
External changes Regulatory changes
Delivery style/
Benefit realization
Success Task oriented Value oriented
oriented
measurement
Aggregate
Project objectives Benefit/ Governance
Monitoring style Performance/Value
related related
indicators driven
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Organizational Project Management
OPM is defined as a framework in which portfolio, program, and project management

are integrated with organizational enablers in order to achieve strategic objectives
Each contributing in different ways:
Portfolio management aligns portfolios with organizational strategies by selecting the

right programs or projects, prioritizing the work, and providing the needed resources.
Program management harmonizes its program components and controls
interdependencies in order to realize specified benefits.
Project management enables the achievement of organizational goals and objectives.
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Typical Project Lifecycle
Performing Organization/ Stakeholders
Exits
Exits
Exits
Initiation
Closure
Phase I Phase II Phase III Phase IV
a b c d
Deliverables
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Project Life Cycles
Predictive - Project scope, time and cost are determined as early as possible.
Changes to project scope are carefully managed and require re-planning and formal
acceptance of the new scope
Iterative - An approach that allows feedback for unfinished work to improve and
modify that work
Incremental - An approach that provides finished deliverables that the customer may
be able to use immediately. Optimize speed of delivery
Adaptive – These are designed to address high levels of change and stakeholder
involvement. In these the iterations are very rapid and are fixed in time and cost.
Hybrid - A hybrid life cycle is a combination of a predictive and an adaptive life cycle
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Comparison of Life Cycles
Predictive Iterative Incremental Agile
Requirements are defined Requirements can be Requirements are
up-front before elaborated at periodic elaborated frequently
development begins intervals during delivery during delivery
Deliver plans for the Delivery can be divided into Delivery occurs frequently
eventual deliverable. Then subsets of the overall with customer-valued
deliver only a single final product subsets of the overall
product at end of project product
Timeline
Change is constrained as Change is incorporated at Change is incorporated in
much as possible periodic Intervals real-time during delivery
Key stakeholders are Key stakeholders are Key stakeholders are
involved at specific regularly Involved continuously involved
milestones
Risk and cost are controlled Risk and cost are controlled Risk and cost are controlled
by detailed planning of by progressively elaborating as requirements and
mostly knowable the plans with new constraints Emerge
considerations information
United States and other nations; Project Management Institute, A
19 Guide to the Project Management Body of Knowledge, (PMBOK®
Guide) – Sixth Edition, Project Management Institute Inc., 2017,
Page 666
Tailoring PM Methodology
A PM needs to select appropriate project management processes, inputs, tools,

techniques, outputs, life cycle phases to manage a project effectively. This selection
activity is referred to as tailoring project management.
Certain considerations while tailoring would include:

o Project environment
o Organizational culture
o Stakeholder needs
o Governance level required
o Whether customer is internal or external
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Project Management Business Documents
Business Case - The project business case is a documented economic feasibility

study used to establish the validity of the benefits that is used as a basis for the
authorization of further project management activities. This is used for go/no-go
decision
Benefits Management Plan - The project benefits management plan is the

document that describes how and when the benefits of the project will be delivered,
and describes the mechanisms that should be in place to measure those benefits
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Business Case
Business Need:
o What triggers the action?
o Describes the business problem or opportunity
o Stakeholders affected
Analysis of the situation: Identification of organizational goals/objectives, root
cause analysis of the problem, risks, etc. Analysis could use classifying criteria as
required/ desired/optional
Options available:
o Do nothing
o Do the minimum work possible
o Do more than the minimum work possible
Recommendation: A statement of the recommended option to pursue in the project
and why
Evaluation: Statement describing the plan for measuring benefits the project will
deliver
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Benefits Management Plan
o Target benefits: List of all benefits tangible/non-tangible

o Strategic alignment: How well and which business strategy is the benefits aligned to
o Timeframe : When can the benefits be realized, arranged by phases or short
term/long-term/on-going etc.
o Benefits Owner: Person accountable for the benefit
o Metrics: How will each benefit be measured
o Assumptions: Factors to be in place for the benefit to be realized
o Risks: Any threats to benefit realization
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Organizational Influences - Governance
Governance is the framework within which authority is exercised in organizations.

Includes people, roles, structures and policies and requires providing direction and
oversight to projects.
A project governance framework may have guidance on:

Project success and deliverable acceptance criteria
Process to manage and escalate issues
Processes and procedures for communication
Project decision making process
Project life cycle approach
Process for stage gate reviews
Process of approval of changes to time, cost, scope and quality which are
beyond the authority of the PM
Project roles required in a project
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Organizational Influences – Organization Structures
Project Manager The Organization Structure

Projectized determines the authority that the
Project Manager and Functional
Manager will have
Strong Matrix
Balanced Matrix
Weak Matrix
Functional
Functional Manager
Projects usually are part of the Organizational work and fit in the Organizational culture,
style and structures
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Other Structures
Organic/Simple – Flexible with people working side by side. All authority vested
with owner/operator. Like start-ups
Multi-divisional – May replicate function for each division with little centralization.
Similar to functional organization but de-centralized
Hybrid – Mix of other types
Virtual - The virtual organization exists within a network of alliances, using the
Internet.
Network - Another modern structure, that contracts out any business function which
can be done better or more cheaply. Managers in network structures spend most
of their time coordinating and controlling external relations
Organizational Influences - Organization Structures
Balanced
Functional Weak Matrix Strong Matrix Projectized
Matrix
Project
Manager’s Low to
Little or none Limited High High to Total
Authority Moderate
Resource Low to
Little or none Limited High High to Total
Availability Moderate
Functional
Functional Project Project
Budget Control Manager Both
Manager Manager Manager
Project Part-time Part-time

Part-time Full-Time Full-time
Manager’s role
27 Project Management Institute, A Guide to the Project
Management Body of Knowledge, (PMBOK® Guide) – Sixth
Edition, Project Management Institute Inc., 2017, Page 13
Other Organization Structures
Organic/Simple Multi-divisional Virtual Hybrid
Project Manager’s
Little or none
Authority Little or none Low to Moderate Mixed
Resource
Little or none Little or none Low to Moderate Mixed
Availability
Functional
Budget Control Owner or Operator Manager Mixed Mixed
Part-time/Full
Project Manager’s Part-time
Part-time Time Mixed
role
Organizational Influences - Types of PMOs
A project management office (PMO) is an organizational structure that standardizes

the project-related governance processes and facilitates the sharing of resources,
methodologies, tools, and techniques
There could be several types of PMOs such as:
Supportive – provide consultative role to projects; degree of control is LOW
Controlling – provide support and ensure compliance through various means;

degree of control is MODERATE
Directive – Take control of projects by directly managing the projects; degree of

control is HIGH
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Organizational Influences - Enterprise Environmental Factors
Enterprise environmental factors (EEFs) refer to conditions, not under the control of
the project team, that influence, constrain, or direct the project
Internal:
Organizational/ Company structure and culture
Existing Company Infrastructure /Skill sets
Geographic distribution of facilities and resources
IT Software
Resource availability
External
Market place conditions
External factors like Political Systems
Statutory/ Industry Standards
Financial Considerations
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Organizational Influences - Organizational Process Assets
These include the Organizational policies, procedures, knowledge databases, practice

etc.
These Assets can include Organizational:

Policies and Procedures
Organizational Knowledge base
Change Control procedures
Metrics and Guidelines
Historical Information/Knowledge Databases
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Project Management Body of Knowledge (PMBOK®)

PMBOK® Process Groups & Knowledge areas
PMBOK® Process Groups in Adaptive environment
Projects, Programs and Portfolios
Project Life cycles
Tailoring PM Methodolgy
Business Documents
Organizational Influences – EEF, OPA, PMO, Organizational structures
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3. The Role of Project
Manager
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The Project Manager
The project manager is the person assigned by the

performing organization to lead the team that is
responsible for achieving the project objectives
Skills needed in a Project Manager – The PMI Talent Triangle®

Technical project management - The knowledge, skills,
and behaviors related to specific domains of project,
program, and portfolio management.
Leadership - The knowledge, skills, and behaviors needed

to guide, motivate, and direct a team, to help an
organization achieve its business goals.
Strategic and business management - The knowledge of

and expertise in the industry and organization.
Leader vs. Manager
Types of Power
Leadership and management are ultimately about being able to get things done. At
the root of many of these skills and qualities is the ability to deal with politics
Some forms of Power include:
o Positional
o Informational
o Referent
o Personal or Charismatic
o Expert
o Reward
o Coercive
4
Leadership Styles
Some of the most common leadership style includes:
o Laissez-faire - Allowing the team to make their own decisions and establish their own
goals, also referred to as taking a hands-off style)
o Transactional - Focus on goals, feedback, and accomplishment to determine
rewards
o Servant leader - Demonstrates commitment to serve and put other people first.
Focuses on other people’s growth, learning, development, autonomy, and well-being;
concentrates on relationships, community and collaboration; leadership is secondary
and emerges after service
o Transformational - Empowering followers through idealized attributes and behaviors,
inspirational motivation, encouragement for innovation and creativity, and individual
consideration
o Charismatic - Able to inspire; is high-energy, enthusiastic, self-confident; holds
strong convictions
o Interactional - A combination of transactional, transformational, and charismatic
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Integration
The two facets of integration that a Project Manager needs to deal with are
o Strategic Alignment - Working with sponsor and key stakeholders to understand the
strategic objectives and aligning project to these. Also means alignment of project to
program, portfolio and business area objectives
o Project Level - Project managers are responsible for guiding the team to work
together to focus on what is really essential at the project level. This is achieved
through the integration of processes, knowledge, and people
A Project Manager needs to perform integration at all levels including process,

cognitive and context.
6
Project Management Process Groups
Project Management Knowledge Areas
Project Management Processes
7
4A. Initiating
Process Group
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Initiating Process Group - Overview
Initiating Process Group is about defining a new project or a phase of a project.
Project Charter and Stakeholder Register

are the major deliverables of this Process Group
The Initiation activities in a project are often done outside the Project Mangers
domain of control – by the Senior Management/Portfolio Manager etc.
In subsequent Phases the Initiating processes are repeated to ensure that the project
remains focussed on the business needs it was undertaken to fulfil
2
Develop Project Charter
• To authorize the project

• Authorize the Project Manager to apply Organizational resources to
perform the activities in the project
The project can be chartered by someone external to the project such as a

Sponsor, Customer, PMO and the Portfolio Steering Committee as well
It is essential that the Charter is prepared ( and signed) by an Authority

consistent with funding powers . This could be done by the Sponsor or
customer.
3
Develop Project Charter
Business Documents, Agreements,

Enterprise environmental Factors,
Organizational Process Assets
Expert Judgment, Data Gathering techniques,

Interpersonal skills, Meetings
Project Charter
Assumptions Log
Project Management Institute, A Guide to the Project Management

4 Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project
Management Institute Inc., 2017, Page 71
Project Charter Contents
Project Charter may include the following information:
Project purpose or justification

Measurable project objectives and related success criteria
High level requirements/Key Deliverables
Summary milestones/ schedules/ budget issues
Summary Macro level risks/ Assumptions/ Constraints
Key Stakeholders
High Level risks
Project (Success) Approval requirements
Name of the Assigned Project Manager
Name of the Assigned Sponsor
Project Manager is required to share the approved

Charter with stakeholders to ensure a common
understanding of the project at the onset.
5
Cost-Benefit analysis techniques
Some commonly used Cost-Benefit analysis techniques are:
o Benefit to Cost ratio (BCR)

o Return on Investment (ROI)
o Payback period
o Net Present Value (NPV)
o Internal Rate of Return (IRR)
6
Benefit Cost Ratio
Cost – Benefit analysis involves estimating tangible and intangible costs (outlays) and
benefits (returns) of various projects and product alternatives
Helps arrive at the comparative analysis of the project’s benefits that offset the cost.
Benefit/Cost >1 – during the project lifecycle is the desired criterion
Sunk costs and benefits already realized are not taken into account in cost-benefit analysis
7
Choosing a Project to Charter - Return On Investment
ROI is also referred to as Accounting or Average Rate of Return (ARR) and provides
a way to compare the net profitability to the investment required
Most common formula to calculate ROI % is (Average Annual Profit/Total

Investment)*100
Cash Inflow Cash Return

outflow
Cash Invested 25,000

1st year result 9000 2000 7000
2nd year result 10000 2000 8000
3rd year result 16000 4000 12000
Average profit (7+8+12)/3=9 9,000

ROI= ((9000/25000)*100) 36%
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Choosing a Project to Charter - Payback Period
Payback Period is the time taken to “break even” or pay back the initial cash outlay
on the project – Shorter the payback period the more desirable the project
Year Cash Flow Project A Cash Flow Project B
0 -100,000 -100,000
1 50,000 20,000
2 30,000 20,000
3 *20,000 20,000
4 10,000 * 40,000
5 10,000 50,000
6 - 60,000
9
Choosing a Project to Charter - NPV
Net Present Value (NPV) is the difference of discounted Cash Flows and discounted
expenses occurring over the Product’s Lifecycle:
If NPV <=0 No real profit is accruing to the project
If NPV > 0 Profitable Venture
10
NPV – An Illustration
Consider an investment with the following income-expense profile: (assumed rate of interest – 10%)
Year Expected Income Expected

( ‘000 $) Expenditure (‘000 $)
0 - 100
1 50 20
2 70 10
3 50 10
Determine if the investment is likely to be profitable by the NPV criteria.
11
Choosing a Project to Charter - IRR
IRR represents the rate of interest that will make the NPV for an investment zero
It is calculated by finding IRR internally in the equation :

Initial Outlay = Sum(Discounted Cashflows with IRR)
IRR has to be greater than the ‘Cost of Capital’ or ‘Hurdle Rrate’ for it to be taken up
for further consideration
12
Identify Stakeholders
Identifying Individuals and Organizations involved in the project, their

interests and potential impact on project.
It is imperative for the Stakeholders to be identified early in the project and

in each phase
Stakeholders might have varying levels of interest, expectations,
importance and influence on the project
The stakeholders to also be classified as per their power and interest
equations
By engaging the right people in the right way in your project, you can make
a big difference to its success
13
Identify Stakeholders
Project Charter, Business Documents,

Project Management Plan, Project
Documents
Expert Judgment, Data Gathering,

Data Analysis (Stakeholder Analysis), Meetings,
Data Representation
Stakeholder Register
Project Management Institute, A Guide to the Project Management Body

14 of Knowledge, (PMBOK® Guide) – Sixth Edition, Project Management
Institute Inc., 2017, Page 504
Stakeholder Identification
The Project Charter can contain initial list of stakeholders – but Business documents
therein gives direction for understanding of further stakeholders and their expectations
An initial Stakeholder map – representing the list of Stakeholders and their interest
areas can be prepared
It is better to group the stakeholders into multiple categories – like users/ beneficiaries,
suppliers, those who govern and influencers
The messages to be given to the diverse set of stakeholders and their expectation
management styles could be different
15
Stakeholder Mapping/Representation
Once the Project Charter is approved, the Project Manager goes about detailed
Stakeholder analysis
Stakeholders can be grouped by multiple factors like interest- influence, interest-

Impact etc
The message content, media, frequency of engagement and the level of detail can
vary with the relative needs of the stakeholders
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Sample Stakeholder Register
Standardization of specification for Telecom Tower Roll out

Assessment of
Stakeholder Name Major Need Strategy
Influence
Share:
Top end specification
1. Reliability analysis report
Customer required High
2. Cost-benefit analysis (marginal analysis)
Cost is secondary
Involve in decision making
Low CAPEX and OPEX Clearly communicate Cost-benefit analysis

Top Management Very High
but still meeting SLAs and reliability analysis
Top end specs to

Plan User trials
O &M reduce down time. Medium
Cost secondary
Low - have less say

Circle Project Team Ease of rollout Convince by using Prototype deployment
in decision making
Off the shelf availability Low - company Float questionnaires on specs availability
Equipment vendors No need for being the biggest Involve in field trials
customization vendor Plan Lead times in procurement
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Multiple project selection methods
Importance of Project Charter in project lifecycle
Project Charter contents and the preparation process
Preparation of Stakeholder Register
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4B. Project Integration
Management
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Integration Management
Integration Management consists of the processes to integrate the actions across

Knowledge Areas and Process Groups
Also consists of actions concerning integration of
Project Scope with the Product Scope
Project work with the ongoing operations of the Performing Organization
While other Knowledge Areas may be managed by specialists like Business Analysts,
Project Accountant, Risk management expert etc. the accountability of Project
Integration Management cannot be delegated or transferred. This remains specifically
with PM.
2
What goes where?
Develop Project Charter: The process develops a Charter that authorizes the project in
the organization
Develop Project Management Plan: Defining how the project will be executed,
monitored and controlled and closed
Direct and Manage Project Work: Executing the work defined in the Project
Management Plan to produce deliverables defined in the Scope
Manage Project Knowledge: Using existing knowledge and creating new knowledge
for organizational learning.
Monitor and Control Project Work: Tracking the project progress and regulating the
progress to meet the project objectives
Perform Integrated Change Control: Reviewing all Change Requests, approving

Changes and coordinating Changes to the Baselines
Close Project or Phase: To bring the project to a formal ending
3
Develop Project Management Plan
It defines how the project is executed, monitored/controlled and closed
Project Charter, Outputs from other

Processes
Expert Judgment, Data Gathering (Brainstorming,

Focus Groups, Checklists) Interpersonal
and Team Skills (Conflict Management, Facilitation)
Meetings
Project Management Plan
United States and other nations
Edition, Project Management Institute Inc., 2017, Page 71;
Project Management Plan contents
Project Management Lifecycle and processes selected by the Project Management

Team and the degree of rigor of their implementation for various Phases
Descriptions of Inputs, Outputs, Tools and Techniques to be used for accomplishing
these processes
A Change Management Plan and Configuration Management Plan
Also includes processes for key Management Reviews
All subsidiary plans (Scope Management Plan, Schedule Management Plan, Cost
Management Plan etc.)
Performance Measurement Baselines (scope, schedule and cost )
Milestone list,
Resource calendar
5
Direct and Manage Project Work
It is about performing the work defined in the project management plan to

produce the project deliverables
PM Plan, Approved Change Requests

Plan
Deliverables
Changes Execution
Expert Judgment, PMIS, Meetings
Status
Defects
Deliverables, Work Performance data, Issue Log, Change Requests and Updates
to PM Plan and Project Documents
Manage Project Knowledge
This process involves applying existing knowledge and creating new

knowledge
PM Plan, Lessons Learned Register,
Expert Judgment, Knowledge Management, Information

Management, Interpersonal and Team skills (Active Listening,
Facilitation, Leadership, Networking)
Lessons Learned Register, PM Plan updates, Organizational Process updates
Monitor and Control Project Work
This process involves tracking, reviewing and regulating the Project progress
to meet the performance objectives
PM Plan, Project Documents, Work

Performance Information
Expert Judgment, Data Analysis, Decision making, Meetings
Change Requests, Work Performance Reports, updates to PM Plan

and Project Documents
Monitor and Control Project Work
This process Involves:
Comparing the actual performance against Project Management Plan

Analyzing, tracking and monitoring project risks/identifying new risks
Proper communications management/ forecasting
Maintaining an up-to-date status of project’s product
Monitoring implementation of approved changes
9
Change Requests Cycle
Rec. CA
Execution Deliverables M&C Rec. PA

Rec DR
App. CRs
ICC Updates
Rej. CRs
10
Perform Integrated Change Control
This process concerns mainly change management activities, including

reviewing all Change Requests, approving Changes and managing Changes to
the deliverables
Change Requests, Project Management Plan
Change control tools, Data Analysis (Alternative Analysis, Cost-

benefit Analysis), Decision making, Meetings
Approved Change Requests, Change Log, Updates to PM Plan

Change Control Tools
Tools used here should support configuration management and change management.
These could be manual or automated as per the needs of the project
Configuration management tool should support activities such as identification ,

record, reporting, control, verification and audit.
Change management activities would include identification, documentation of
change, decide and track changes through implementation
12
Project Manager’s role in Change Control
Recognize the change and assess their validity and impact
Create alternatives and rank them for presentation to Change Control Board (CCB)/
Top Management
The role of CCB is clearly spelt out in the Configuration Control and Change Control
procedures
Obtain relevant decisions , integrate them back into the Project Plan and
communicate to all concerned
Track and report results
13
Close Project or Phase
This process finalizes all activities across the project management process
Groups to formally complete the project or phase
PM Plan, Project Charter, Project Documents,

Business Documents, Agreements, Accepted
Deliverables
Expert Judgment, Data Analysis (Document Analysis, Trend

Analysis, Variance Analysis), Meetings
Final Product, Service or result transition, Final Report,

Organizational Process Asset Updates
Project Closure
Documents project results – to formalize acceptance of the product of the

project by the sponsor / customer
Confirms that the project has met all the relevant stakeholders’ requirements
and expectations
Transfers project’s product to operations or maintenance
Updates employee skills database to reflect new skills/ proficiency increases
Updates organizational asset database
Pass on Lessons learned to appropriate corporate function
Celebrate successful closure!
15
Final Report
Provides a summary of project performance

o To what extent were the Project objectives achieved
o Evidence that the completion criteria was met
o Quality objective achievement and reasons for any variance
o Including acceptable cost range, actual cost and reason of any variance
o Summary of validation result
o Benefits achieved to date and time frame for achieving residual benefits
o Summary of issues and risks dealt with in the project
16
Emerging Trends
Some emerging trends are:

Use of automated tools
Use of Visual management tools
Project knowledge management
Expanding the project manager’s responsibility
Hybrid methodologies
In an agile environment, detailed product planning and delivery is delegated to the

team. Nevertheless, Project Managers responsibility of integration doesn’t change
still. Project Managers focus is on building a collaborative decision making
environment.
17
Project Integration management

Project Management Plan components
Change control process
Project closure
Evolving trends in Integration management
18
5. Scope Management
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1
Project Scope Management
Define & control what is and is not included in the project

Constantly checking to make sure you are completing
all the work
Preventing extra work or gold plating
Product Scope and Project Scope are interlinked
Project Scope Product Scope

WORK FEATURES All the work and only the work
2
What goes where?
Plan Scope Management – The process of creating a scope management plan which
documents how project scope will be defined, validated and controlled
Collect Requirements – The process of defining and documenting stakeholder needs

and expectations from the project
Define Scope – Developing a detailed description of the project and the product
Create WBS – The process of subdividing project deliverables and project work into
smaller, more manageable components
Validate Scope – Formalizing acceptance of completed project deliverables
Control Scope – Monitoring the status of the project and product scope and managing
changes to the scope baseline

Plan Scope Management
Project Charter, Project Management Plan
Expert Judgment, Alternative Analysis, Meetings
Scope Management Plan, Requirement Management Plan

Collect Requirements
The process involves capturing project and product requirements of

stakeholders
Stakeholders’ needs to be understood for successful project planning and

execution
Requirements include the quantified and documented needs and
expectations of stakeholders
5
Collect requirements
Project Charter, Project Documents,

Business Documents, Agreements
Data Gathering, Data Analysis, Decision Making, Data

representation, Interpersonal skills, Prototyping
Requirement Documentation, Requirement Traceability Matrix,

Requirement gathering techniques
Data Gathering – Brainstorming, Interviews, Focus group, Questionnaire & Surveys,

Benchmarking
Data Analysis: Document Analysis can be used to analyze documents such as
Agreements, Business documents, business rules, process flows, regulatory
documents, RFP etc. to elicit requirements
Decision making: Voting/Autocratic/Multi criteria decision analysis
Data Representation: Use of mind maps
Interpersonal skills: Nominal group technique, Observation/Conversation, Facilitation
Prototyping: Could be used to obtain early feedback on requirements
7
Sample Requirement Traceability Matrix
Requirement ID
Source
Requirement
Requirement
Product
Status
Requirement
HLD Section #
LLD Section #
Code Unit
UTS #
STS #
User Manual
001 Business R012 Verified 4.1 Parse 4.1.1 Read Read_Card UT 4.1.032 ST 120.020 Section 12
Rule # 1 Credit Mag Strip Card Type _Type.c UT 4.1.033 ST 120.021
card types Read_Card UT 4.1.038 ST 120.022
_Type.h UT 4.1.043
4.1.2 Verify Ver_Card UT 4.2.012 ST 120.035 Section 12

Card Type _Type.c UT 4.2.013 ST 120.036
Ver_Card UT 4.2.016 ST 120.037
_Type.h UT 4.2.031 ST 120.037
Ver_Card UT 4.2.045
_Types.dat
8
Define Scope
Project Charter, Requirement

Documentation, Scope Management Plan
Product Analysis, Alternatives

analysis
Project Scope Statement, Project

Documents updates

Project Scope Statement - contents
Projects fail in the beginning, not the end - A rushed scope definition will likely cause
problems later on in the project
Project Scope statement includes the Deliverables and the ‘Work’ needed to
produce the Deliverables
Enables detailed planning, baselining and controlling the project
Major Deliverables/ Exclusions are stated
Anything not Explicitly Included is Implicitly Excluded
It includes product scope description, project deliverables, product acceptance
criteria etc
Also includes boundaries of the project, amplified set of constraints and
assumptions etc.
10
Create WBS
Project Scope Statement, Requirements

Documentation, Scope Management Plan
Expert Judgment, Decomposition
Scope Baseline, Project Documents

updates

WBS
WBS details out the project scope and subdivides the project work into smaller more
manageable pieces of work
The first level decomposition may relate to project phases, deliverables or sub-
projects
The lowest level of WBS is called the Work Package with Control
Accounts placed as required in between
The Project Manager keeps decomposing the WBS, until at the Work Package level,
desired clarity is obtained for Scope, Time and Cost as well as for Management of
Risk and Quality
What is not there in WBS is not in the scope of the project

Lower level elements in the WBS are necessary and sufficient to produce
the higher level deliverables (100% rule)
12
WBS
Activities
Resource estimation
Requirements
Cost estimation
Scope
Duration estimation
WBS
Identify Risk
Plan Quality
Work Allocation
13
WBS – Software Project
Project
Requirement Development Training & Implementation

Analysis Documentation & Support
SIT & Go Live/

Initiation Design Launch
UAT
Functional Technical
Coding Unit Testing
Specs Specs
14
WBS – Telecom Tower Set up Project
A. GBT Set up
A.1. Site Acquisition A.2 Infrastructure A.3 Quality
A.3.1 A.3.2
A 2.1 Civil
A 1.1 Electrical
Civil Work Acceptance
Site Survey Acceptance
A.2.2 A.2.3
A 1.2 Tower Erection
Electrical Work
Legal
Documentation
15
WBS Dictionary
The WBS dictionary provides detailed descriptions of the components in the WBS
including:
Description of Work
Responsible organization
List of schedule milestones
Associated activities
Resources required
Cost estimates
Quality requirements
Acceptance criteria
Technical references
Contract information
16
Validate Scope
Scope Validation connotes to formalizing Product

Acceptance
Control Quality usually precedes Validate Scope

process
17
Validate Scope
PM Plan, Requirements Documentation, Requirement Traceability matrix,

Verified Deliverables, Work Performance Data
Inspection, Decision making (Voting)
Accepted Deliverables, Change requests, Project Documents updates

Control Scope
Control Scope is about protecting the project scope from

change and, when change does happen, managing those
changes
Changes are inevitable in a project environment and require proper control, to

reduce the risk of scope creep and for better project success
Triggers for Scope change could come from Multiple sources
Change Requests can relate to Scope Baseline or other Components of

PM Plan and can include Preventive or Corrective Actions or Defect Repairs
Approved Change Requests can require Updates in the PM Plan and Project
Documents
19
Control Scope
Scope Baseline, Work Performance Data, Requirements Documentation,

Requirement Traceability Matrix
Data Analysis (Variance Analysis, Trend

Analysis)
Change Requests, Work performance Information, Updates to Project

documents, PM Plan and Lessons learned register

Emerging Trends

Use of Business Analysis in defining, managing and controlling requirements
management activities. Business analysis activities may start before a project is
initiated.
Projects may be assigned a Business Analyst role in which case all requirements
management responsibility will be owned by this person. However, PM needs to
ensure all requirements related work is accounted for in Project plan and conducted
on time and to budget.
21
Agile Considerations
The overall scope of an adaptive project will be decomposed into a set of

requirements and work to be performed, sometimes referred to as a product
backlog. The backlog continues to evolve all through the project life cycle
Agile methods deliberately spend less time trying to define and agree on scope in the
early stage of the project and spend more time establishing the process for its
ongoing discovery and refinement
During iteration planning, the three processes (Collect requirement, Define scope and
create WBS) are repeated for each iteration contrary to predictive life cycles
In Agile, the customer/sponsor is continuously (end of each iteration) engaged with

the project to review products and provide feedback. Thus ‘Validate Scope’ process is
a continuous activity in agile contrary to predictive life cycle where this happens at the
end of project (or phase)
Projects run in an agile methodology use backlogs as against scope baseline for
scope validation and control
22
Scope Management Life cycle
Importance of Requirements Management in Scoping
Processes for defining the Scope Statement
Importance of WBS/ WBS Dictionary
Scope Validation and Control processes
Emerging trends and agile considerations
23
6. Project Schedule
Management
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1
Schedule Management
The first 90 percent of a project schedule takes 90 percent of the time. The last 10 percent
takes the other 90 percent of the time.‘
Schedule Management relates to the Processes which need to be done to complete the
project within the defined schedule
Schedule and Cost Management go hand in hand
2
What goes where?
Plan Schedule Management: Establishes guidelines and method for managing the
project schedule throughout the project.
Define Activities: Definition of Activities to produce the project deliverables
Sequence Activities: Incorporating Logical dependencies amongst the defined Activities
Estimate Activity Durations: Estimating the likely durations (elapsed times) of various
activities
Develop Schedule: Combining the prior processes to produce the overall Schedule
Control Schedule: Monitoring the project and controlling changes to the Project
schedule

Plan Schedule Management
To define policies, procedures and guidelines for planning, developing,

managing and controlling the project schedule
PM Plan, Project Charter
Data Analysis (Alternate Analysis) Techniques, Meetings
Schedule Management Plan

Define Activities
Identifying all Activities needed to be performed to complete the project

successfully
Schedule Management Plan, Scope Baseline,

Rolling Wave Planning, Decomposition
Activity List, Activity Attributes, Milestone List

Rolling Wave Planning
Construction
Project
Infrastructure Phase 2 Phase 3 Phase 4
Civil
Electrical
Deliverables to be determined
Tower
6
Sequence Activities
Identifying the dependencies that exist between the various activities in

the project
Schedule Management Plan, Activity List, Activity Attributes, Milestone List,

Project Scope statement
Precedence Diagramming Method (PDM), Leads and Lags, Dependency

Determination and Integration, PMIS
Project Schedule Network Diagram

Dependency Determination– Logical Relationships
Mandatory Dependencies/Hard – Inherent in nature of work

Logic
Discretionary Dependencies/ – As per best Practices

Preferred Logic
External Dependencies – Between project and non-project activities
Internal Dependencies Precedence relationship between project

activities
8
Multiple Types of Precedence Relationships
Start to Start
Finish to Start
A A
B B
A finishes then B starts A starts then B starts
Most commonly used relationship Used sometimes

Finish to Finish
Start to Finish
A A
B
B
A starts then B finishes
A finishes then B finishes
Rarely used relationship Most rarely used relationship
9
Network Diagramming Method
Precedence Diagramming Methods (PDM)
Also called activity-on-node (AON) project network diagrams

Activities are represented by boxes
Arrows show relationships between activities
Can depict the four different types of dependencies
G H I
Start End
J K L
10
Estimate Activity Durations
Estimating the number of work periods required to perform the various activities
in the project
Activity List, Activity Attributes, Resource

Requirements, Organizational Process Assets,
Risk Register
Analogous Estimating, Parametric Estimating,

Three Point Estimates, Bottom-up, Data
Analysis (Reserve Analysis), Decision making,
Meeting
Duration Estimates, Project Documents Updates

Develop Schedule
To complete the project in the shortest amount of time

possible
Outputs of preceding processes, Project Scope

Statement, Risk Register
Schedule network analysis, Critical Path

Method, Schedule Compression, Resource
Optimization, Leads and Lags, Data Analysis
(What-if-scenario, Simulation), PMIS, Agile
release planning
Schedule Baseline, Schedule Data, Project Calendars

Critical Path Method
B6
C6
A2 FS+2
G5
D5
E6
F3
Activity Duration Preceder ES EF Successor LS LF Float
A 2 - 0 2 B,D,E 0 2 -
B 6 A 2 8 C+2 2 8 -
C 6 B+2 10 16 G 10 16 -
D 5 A 2 7 G 11 16 9
E 6 A 2 8 F 7 13 5
F 3 E 8 11 G 13 16 5
G 5 C,D,F 16 21 - 16 21 -
13
Critical Path Method
The critical Path is the longest path through the Network which represents the
minimum time in which the project can be completed
There can be more than one Critical Path – the more they are – more risky it is
for the Project Manager
The Critical Path can change as the project progresses.
To shorten the project, focus on Critical Path activities.
Is a powerful tool for top level reporting and resource requisition
Escalation of durations of non-critical activities beyond a point

may result in having additional Critical Paths.
14
Other Tools used in Scheduling
Schedule Compression
Crashing – How to obtain the greatest schedule compression with least
incremental cost, by analyzing the cost and schedule tradeoffs
– Feasible for ‘effort-driven’ activities
Fast Tracking – Doing activities in parallel by relaxing dependencies
Data Analysis Techniques

What-if Scenario Analysis: Calculating multiple project durations with
different sets of scenarios that may apply.
Simulation: Used to calculate a range of possible project duration
15
Schedule Development Tools
Leads and Lags
Task A Task B Task C
Lag adds time Lead reduce time
Leads and Lags must be considered in the Project Schedule since an abundance of Lag
time can increase the project duration. An abundance of Lead time may introduce more
risk to the project.
16
Develop Schedule - Resource Optimization Techniques
Often, Critical resources pose a problem in scheduling
Resource leveling is used:

To address the issue of shared resource ‘over-stretching’
To keep resource usage at a constant level during specific time durations
17
Resource Histogram - Leveling
Staff hours
120
110
100
Engineers
90
Resource Usage
80
70
60
50
40
30
20
10
0
8 15 22 29 6 13 20 27 6 13 20 27 3 10 17 24 1 8 15 22
Apr May Jun Jul Aug
Weekly Resource Usage in Man Days
18
Sample Gantt Chart (View from MS Project)
19
Sample Network Diagram (View from MS Project)
20
Agile Release Planning
21
Control Schedule
Monitoring the up to date status of the project and

managing and controlling schedule variations in
the project
PM Plan, Schedule Baseline, Work

Performance Data,
Data Analysis, Tools of previous process like

CPM, Compression, Leads/Lags, Resource
optimization, PMIS
Work Performance Information, Schedule Forecasts, Change Request,

Updates to PM Plan and Project Documents, Lessons learned register

Control Schedule Techniques
Data Analysis techniques used in schedule control include:

Earned Value analysis
Iteration burndown chart
Trend analysis
Variance analysis
What-if-scenario analysis
23
Burndown Chart
24
Emerging Trends

Iterative scheduling: This is a form of rolling wave planning based on adaptive life
cycles. The benefit of this approach is that it welcomes changes throughout the
development life cycle
On-demand scheduling - On-demand scheduling does not rely on a schedule that

was developed previously, but rather pulls work from a backlog or intermediate queue
of work to be done immediately as resources become available
While tailoring schedule management process PM needs to consider factors such as

Lifecycle approach
Resource availability
Project dimensions
Technology support
25
Schedule Development Process

Define Activities process
Estimation techniques
Modelling Techniques
Critical path computation
Schedule Compression/ Resource optimization
techniques
Schedule Monitoring on an ongoing process
26
7. Project Cost Management
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1
What goes where?
Plan Cost Management: Developing the Cost Management Plan which documents
how the project costs will be planned, structured and controlled
Estimate Costs: Developing the likely costs of performing project activities
Determine Budget: The process of aggregating the costs of individual activities to

establish a Cost Baseline
Control Costs: Controlling the Variances against the Cost Baseline

Plan Cost Management
Provides guidance and direction on how the project costs will be managed
throughout the project
Project Management Plan, Project Charter
Expert Judgment, Data Analysis, Meetings
Cost Management Plan

Estimate Costs
Estimating the cost of the resources needed to perform project activities
Cost Management Plan, Scope Baseline,

Project Schedule, Resource requirements and
Risk Register
Analogous Estimating, Bottom Up Estimating, Parametric Estimating and

Three Point Estimates, PMIS, Data Analysis (Reserve Analysis, Alternative
analysis, COQ),
Activity Cost Estimates, Basis of estimate

Determine Budget
A Budget is primarily a compilation of the individual

Costs Estimates.
Cost Management Plan, Project Schedule,

Scope Baseline, Activity Cost Estimates, Basis
of estimate, Risk Register, Business
Documents, Agreements
Cost Aggregation, Funding Limit Reconciliation,

Data Analysis (Reserve Analysis), Financing, Historical
information review
Cost Baseline, Project Funding Requirements

Cost Baseline
Cost
Time
6
Control costs
This process monitors the status of the project and managing changes as
needed
Cost Management Plan, Cost Baseline, Project Funding

Requirements, Work Performance Data
Data analysis (Earned Value, Reserve Analysis, Variance

analysis, Trend analysis), PMIS
Work Performance Information, Cost Forecasts, Change Requests,

Project Management Plan updates

Earned Value Management
Is a powerful tool for measurement and reporting :
It integrates scope, cost and schedule measures to help the Project Team
evaluate the project’s performance
It enables the Project Manager to know the % of completed work and the value
of the completed work
It is a quantitative technique for assessing and predicting project progress.
It is a quantitative technique for assessing and predicting project progress.
SCOPE COST
TIME
8
Earned Value Management
The Planned Value (PV)

the budgeted cost of work scheduled
The Actual Cost (AC)

the actual cost of work performed
Earned Value (EV)

the budgeted cost of work performed
– signifies the value of the work performed.
9
Earned Value: Variances
Schedule Variance (SV): SV = EV – PV

A negative variance indicates a schedule overrun condition, positive variance is
favourable to the project
Cost Variance (CV) : CV = EV – AC

A negative variance indicates a cost overrun condition, positive variance is favourable
to the project
Cost
(under) Variance
D A
(behind) (ahead)
Schedule
Variance
C B
(over)
10
Earned Value: Performance Indices
Schedule Performance Index (SPI) - SPI is an indication of the efficiency with which the
project is utilizing scheduled resources SPI = EV/PV
If SPI > 1.0 we have favourable performance. Project is ahead of schedule
If SPI < 1.0, less has been completed than what was scheduled, so project is
behind schedule.
General Interpretation – the project is progressing at -% of the schedule originally

planned
Cost Performance Index (CPI) – CPI is an indication of the efficiency with which the
project is utilizing the cost budget CPI = EV/AC
If CPI > 1.0 we have favourable performance. Productivity is more than what
was expected
If CPI < 1.0, performance is poor, productivity is less
General Interpretation - The project is realizing -% of value for every 100% of the $ spent
11
Some more EV Elements Explained…
The Budget at Completion (BAC)

Is the sum of all the budgets allocated to the Activity/ WBS component
The Estimate at Completion (EAC)

It is the new likely total cost of the project
The Estimate to Complete (ETC)

It is the likely cost of completing the remaining work in the project
Variance at Completion (VAC)

The difference between BAC and EAC
12
Estimate at Completion- Forecasting Techniques
EAC - Calculated by multiple ways – to get a range of estimates, like:
EAC = AC + ETC (judgmental)

– ‘Sunk costs’ + revised future costs
EAC = AC + (BAC- EV)- when current variances are seen to be atypical and
the Project Management expectations are that similar variances will not
occur in future.
EAC = BAC/CPI –future spending will continue in a predictable way as was

observed so far for Cost Variance
EAC = AC + (BAC-EV)/(CPI*SPI) – when future performance is expected to

be affected by both time and cost
13
To-Complete Performance Index (TCPI)Techniques
TCPI is the Target projection of the Cost Performance to be achieved on the remaining
work to meet a specific Cost objective – as a Target BAC or a Target EAC
If BAC is not a viable figure, these forecasts are better done with EAC
TCPI (based on BAC) is calculated as
TCPI = (BAC-EV)/(BAC-AC)
On the other hand, if a new EAC has been approved by Management, then
TCPI = (BAC-EV)/( EAC-AC)
14
Cost Management Concepts
Term Description Example

Capital Cost Projects requiring investment in project Buildings/ Equipment/ Servers
specific capital assets. The money spent on
assets can be treated as a depreciable
expense for the taxation purposes.
Cost of Cost of raising capital, or the cost of raising Capital raised from Banks, Funding
Capital funds via various means – through a Capital agencies etc.
budgeting process
Direct Cost Costs that are incurred specifically for a Cost for project related material,
project salary expenses associated with
subcontractors & billable staff
Indirect Cost Costs that are borne by the organization, and Salaries of Corp. Executives,
(Overhead) then shared across projects proportionately Administrative Expense, Rental,
building costs
15
Cost Management Concepts
Term Description Example

Opportunity The cost of choosing one alternative and Choosing a line of business over
Cost therefore, giving up the potential benefits of another based on business
another alternative reasons
Return On The value returned as profit from a project Profit from setting up an
Investment entertainment theme park
Sunk Cost Money irrevocably spent in a project or a cost Past costs incurred in an ongoing
that has been paid for prior to making the project/ Consultant fees reg.
decision for the projects under consideration project selection
Fixed costs Costs which are incurred irrespective Machine set up costs
of the volume of production.
Variable Costs Costs that rise directly with the size of the Hardware parts consumed in an
project/ volume of production and are related product assembly
to consumable materials used to accomplish
the project
16
Emerging Trends

Expansion of Earned Value Management – Earned schedule (ES) and Actual Time
(AT)
SV = ES – AT
SPI = ES/AT
While tailoring schedule management process PM needs to consider factors such as

Knowledge Management – Financial database repository
Estimating and Budgeting – Policies, procedures, guidelines
Earned Value Management - Is it used in the organization?
Use of Agile – If agile is adopted
Governance – Formal/informal audit
17
Projects with high degrees of uncertainty or those where the scope is not yet fully
defined may not benefit from detailed cost calculations due to frequent changes.
Lightweight estimation can be used to generate a fast, high-level forecast of project
labor costs, which can then be easily adjusted as changes arise. Detailed estimates
are reserved for short-term planning horizons in a just-in-time fashion
When using agile approach with high-variability projects where the budget is also
constrained, the scope and schedule are adjusted to stay within cost constraints.
Scope swapping can be opted for.
18
Cost Management process
Various methods of Cost estimating
Various methods of Cost estimating
Application of EVM to project Cost control
19
8. Quality Management
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1
Project Quality Management
*Quality is the totality of characteristics of an

entity that bear on its ability to satisfy stated or
implied needs.
Project Quality Management includes processes

to ensure that the project fulfills its obligations to
satisfy the project needs
Important terms:
1) Quality vs. Grade
2) Accuracy vs. Precision
3) Quality Policy
2
What goes where?
Plan Quality Management – Determining which quality standards are relevant to the
project and finding out the best methods of achieving the same
Manage Quality – : The process of translating the quality management plan into
executable quality activities
Control Quality – Monitoring results of quality management activities to assess

performance and ensure outputs meet customer requirements

Plan Quality Management
What quality standards apply to my project?

How to satisfy them?
PM Plan, Stakeholder Register, Requirement

Documentation, Risk Register
Benchmarking, Brainstorming,
Interviews, Cost-Benefit Analysis, Cost Quality is planned in, not inspected in
of Quality (COQ), Test and Inspection
Planning
Quality Management Plan, Quality Metrics,

PM Plan updates

Plan Quality Tools and Techniques
Brainstorming: Used to creatively gather data from team or subject matter experts to
develop the Quality Management Plan adequate for the project
Benchmarking : Comparing actual or planned project practices to ‘best in class’ or

competitors
Interviews: Key stakeholders can be interviewed to gather information on required
quality expectations both implicit and explicit
Cost-Benefit Analysis : The Project Team has to balance the costs of deployment of
incremental quality vis-a-vis corresponding incremental benefits
( Marginal Benefit Analysis principle)
Cost of Quality (COQ): includes cost of Conformance and cost of Non-conformance
Test and Inspection Planning: Performed by PM and team to determine how to

test/inspect the project deliverables
5
Plan Quality Tools and Techniques - COQ
Quality
Cost of Cost of
Quality Non Quality
Cost of Cost of
Conformance Non-Conformance
Prevention Appraisal Internal External Brand Image

Failure Failure Market Share
•Quality Systems •Inspection •Defect Repair •Warranty/ Maintenance

•Training •Testing •Rework •Recall/Replacement
•Self Certification •Calibration •Scrap •Litigation
6
Manage Quality
Manage Quality mostly relates to

conformance and capability assurance
activities relating to project and product
quality
Quality Management Plan, Quality Control

Measurements, Risk Report
Checklists, Alternative Analysis,

Document Analysis, Audits, Process
Analysis, Quality Improvement Methods
Quality Reports, Test and Evaluation

Documents, Change Requests, Updates
to PM Plan

Manage Quality
The objective of Manage Quality process include:
Design an optimal and mature product by adopting specific guidelines and processes
Build confidence that a future output will confirm to specified requirements
Confirm that the quality processes are being complied to
Improve the efficiency and effectiveness of processes and activities
8
Control Quality
Measure specific project results to

determine whether quality has been met
Quality Management Plan, Quality Metrics, Test

and Evaluation Documents, Approved Change
Requests and Deliverables
Checklist, Statistical Sampling,

Questionnaire & Surveys, Performance
reviews, Inspection and Testing/Product
Evaluations
Quality Control Measurements, Verified

Deliverables, Change Request and
updates to Test and Evaluation
Documents

Common Tools in Quality
Checklist
Check sheets
Root cause analysis
Control chart s
Histograms
Scatter diagrams
Flowcharts
Affinity diagrams
10
Cause and Effect Diagrams (Ishikawa/ Fishbone Diagrams)
Possible
Causes
Problem
Quality Training
Attitude
Operator
Mix Raw material
Defective
piece
Voltage Setup
Machine
Environment
Maintenance
Pressure
11
Control Charts
CONTROL CHART for Machine X

Mean diameter (mm)
USL
UCL
10.
8
10.
7
10.5 MEAN
10.3 LCL
10.2 LSL
0 5 10 15
Time pints 20 25 30
MEAN Normal expected result of diameter of washers produced

USL Upper Specification Limit (nothing above this limit will be of acceptable
quality)
LSL Lower Specification Limit (nothing below this limit will be of acceptable quality)
UCL Upper Control Limit (Ideal upper acceptance limit for internal quality)
LCL Lower Control Limit (Ideal lower acceptance limit for internal quality)
12
Histograms
Can be used to organize data collected for measurements done on a product or process
Shows frequency of occurrence of items within a range of activity

Involves “grouping” of data
Shows “count” per interval
No. of samples having

defective pieces
# of defective pieces 4 5 6 7
13
Other Quality Tools
Scatter Diagrams
o Used to determine the correlations Design Complexity vs. Defect Density
relationship between independent and
dependent variables 10
o To explore cause-effect relationships
8
Errors/KLOC
Checklist 6
Series1
o A checklist is a structured tool to ensure a series 4
of steps have been performed to help ensure 2
consistency
0
o Standard checklists may be available in the 20 25 30 35
organization
Complexity
Checksheet
o Inspection includes activities to determine
whether results conform to standards at any
stage of the project lifecycle
14
Other Quality Tools
Check sheets
o Check sheets are also known as tally sheets and are used to organize facts
in a manner that will facilitate the effective collection of useful data about a
potential quality problem
15
Other Quality Tools
Flowcharts
o Also referred to as Process Maps display the sequence of steps in a
process.
o Particularly useful to analyse any redundant/non-value added steps in the
process
Affinity Diagram
o Allows large numbers of ideas to be classified into groups for review and analysis
16
Emerging Trends
Some emerging trends in Quality Management include:

Customer Satisfaction - This requires a combination of conformance to
requirements and fitness for use. In Agile environments continuous/frequent
engagement with customer ensures customer satisfaction is maintained
throughout the project
Continual Improvement - Initiatives such as PDCA, TQM, SIx sigma
Management Responsibility - Management must equip the Project Team with
the resources needed to achieve quality, although success requires participation
of all
Mutually beneficial partnership with suppliers - A shift from traditional
supplier management to partnership and cooperation model which can create
value for each other and enhance joint responses to customer needs
17
Agile considerations
Agile methods call for frequent quality and review steps built in throughout the project
rather than toward the end of the project
Recurring retrospectives regularly check on the effectiveness of the quality processes
(New approaches are tried and in subsequent retrospectives these are reviewed for
effectiveness and adjusted if required)
Focus on small batches of work (iterations) uncovering inconsistencies and quality
issues much early
18
What did we learn here?
Key concepts in Quality Management

Plan Quality Management Process
Cost of Quality
Manage Quality process
Quality Audits
Control Quality process
Tools in Quality Management
19
9. Resource
Management
www.qaiglobal.com
1
Project Resource Management
Resource Management includes the processes that identify, acquire and

manage all resources needed to complete the project
Project Resources include team members, supplies, materials, equipment,

services and facilities
The Project Management Team assists the Project Manager in Planning

onwards
2
What goes where?
Plan Resource Management: The process of defining how to estimate, acquire,

manage, and utilize physical and team resources
Estimate Activity Resources: Estimating the types and quantities of Resource

requirements of various activities
Acquire Resources: Obtaining the human resources needed for the project
Develop Project Team: Enhancing the competencies of Project Team and creating a
favourable environment conducive for effective project performance
Manage Project Team: Resolving team issues, tracking team member performance
and providing feedback
Control Resources: Ensuring availability of physical resources and monitoring

planned vs. Actual resource usage

Plan Resource Management
Project Charter, PM Plan, Project Documents
Data Representation, Organizational

Theory , Meetings
Resource Management Plan, Team

Charter

Data Representation
Three formats to document Team member Roles and Responsibilities

Hierarchical Type
Matrix – Based
Text-Oriented
5
Project Org. Chart – Hierarchical Type
6
RACI Chart (Responsibility Assignment Matrix)
Project Team Members

Activity Steve Mark Peter David John
Requirement A R I C
Design A I R C
Construct C A R C C
Testing I A I C R
7
7
Text- Based Format
Role___________________________________
Responsibilities____________________________________
__________________________________________________
__________________________________________________
Authority__________________________________________
__________________________________________________
8
8
Resource Management Plan
The Resource Management Plan can include the following:
Where are we going to acquire the team and physical resources from
Roles and responsibilities
Organization charts depicting reporting relationship
Project team resource management guidelines
Any training need for project team
Team development guidelines
Resource control – How physical resource utilization will be monitored. May also
include guidance on inventory management etc.
Reward and recognition for project team
9
9
Estimate Activity Resources
Estimating the type and quantities of resources needed to perform the

individual activities in the project
Resource Management Plan, Activity List,

Resource Calendars, Activity Attributes, Risk
Register, Activity Cost Estimates,
Organizational Process Asset
Bottom up Estimating , Analogous estimating,

Parametric estimating, Alternative Analysis,
PMIS
Resource Requirements, RBS
Project Management Institute, A Guide to the Project

10 Management Body of Knowledge, (PMBOK® Guide) – Sixth
Acquire Resources
The PM’s role in this process relates to Confirming

and Obtaining the Extended Team
Resource Management Plan, Procurement

Management Plan
Decision making (Multi-Criteria decision

analysis), Interpersonal skills
(Negotiation), Pre assignment, Virtual
teams
Physical Resource assignment, Team

assignments, Resource Calendars

Body of Knowledge, (PMBOK® Guide) – Sixth Edition, Project
11
11
Develop Project Team
Project Teams need development to align best to

project objectives and contribute to project
performance
Project Team Assignments, Resource

Management Plan, Team Charter
Co-Location , Virtual Teams, Communication Technology,

Interpersonal skills , Rewards and Recognitions, Training,
Team Building Activities, Ground Rules, and
Individual and Team Assessments
Team Performance Assessment,

Enterprise Environmental Factors updates

Stages of Team Development
Adjourning
Performing
Norming
Storming
Tuckman Model
Forming
13
Manage Project Team
Project Teams require constant managing to bring

out the best in them
Resource Management Plan, Team Charter,

Team Performance Assessments ,
Issue Log, Work Performance Reports
Interpersonal and Team Skills (Conflict

Management, Emotional Intelligence,
Influencing, leadership)
Change Requests, updates to PM Plan/


Control Resources
Ensuring right resource is available at the right time

and monitoring effective resource utilization
Resource Management Plan, Physical

Resource Assignment, Project Schedule,
Work Performance Data, Agreements
Data Analysis (Alternative

Analysis/Cost-benefit Analysis/Trend
Analysis) , Problem Solving,
Interpersonal skills, PMIS
Work Performance Information, Change

Requests, updates to PM Plan

Conflict Management
Common sources of Conflict – Schedule, Budget, Priorities,

Personality issues, Tradeoffs, Administrative procedures etc.
Conflicts should be addressed early, using a direct participative

approach
Disruptive Conflicts can call for increasingly formal procedures,

including possible use of disciplinary actions.
Conflict resolution should be issue focused on current problems
16
Conflict Resolution styles
Withdrawal/Avoiding - Retreating from actual or potential disagreements and

conflict situations. Appropriate only in certain situations such as when a “cooling-off”
period is needed
Smoothing/Accommodating - De-emphasizes differences and emphasizes

commonalities. Keeps the atmosphere friendly
Compromising/Reconciling - Considers various issues and searches for solutions

which bring some degree of satisfaction to both parties. Definitive solution
Forcing/Directing - Exerts one’s view point at the potential expense of another party.
Could be of Use during emergencies or unpopular actions.
Collaborating/Problem solving - Directly addresses disagreements. Provides a

resolution but is time consuming. This is considered to be the best method for
resolving conflicts
These definitions are taken from the Glossary of Project Management

Institute, A Guide to the Project Management Body of Knowledge,
17
(PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc.,
2013
Emerging Trends
Some emerging trends in resource management include:

Resource management methods – JIT, Lean management, Kaizen etc.
Emotional intelligence – Research suggests that project teams that succeed in
developing team EI are more effective and there is reduction in staff turnover
Self-organizing teams – Popular in Agile methodology where the team functions
with an absence of centralized control
Virtual teams/distributed teams - The globalization of projects has promoted
the need for virtual teams that work on the same project, but are not colocated at
the same site
18
Resource Management processes
Organization charts
Conflict Management models
Emerging trends in resource mangement
19
19
10. Communication
Management
www.qaiglobal.com
1
Project Communication Management
Project Communications Management deals with the project information

Lifecycle
Project Teams typically spend considerable amount of time in

communications
2
What goes where?
Plan Communications Management: Developing an approach/strategy for

communication in the project and identifying the Communications needs of
Stakeholders and preparation of the Communications Management Plan
Manage Communications: Distributing the information as per the Communications

Management Plan to the relevant Stakeholders
Monitor Communications: The process monitoring communications throughout the

project to ensure stakeholder’s information needs are satisfied

Project Communications
Communication mechanisms – Written, Spoken, Formal / Informal, through gestures,

through words, choice of words
Internal (within the project) or external
Upward, Downward or Horizontal
Communication Methods
Push
Pull
Interactive
4
Plan Communications Management
This process is focused on determining the project stakeholder information

needs and defining a Communication approach
Stakeholder Register, PM Plan
Communications Requirements Analysis, Communications Technology,

Communication Models, Communication Methods, Stakeholder
engagement assessment matrix
Communication Management Plan

Factors affecting the Communications Technology
The frequency and the immediacy of information requirements of various

stakeholders
Access to Technology by the Stakeholders
Experience of the Project Team member to use the Technology
The # of communication Channels is determined by the # of persons in the Team
6
Sender-Receiver Communication Model
Noise
Feedback
Source Encoding Medium Decoding Receiver
Message Message
7
Communication channels
With N=2
1 channels With N=3
3 channels
Number of communication channels is

Calculated as n(n-1)/2
With N=4
6 channels
8
Communication Management Plan
What information needs to be collected from which Stakeholders and when and who
needs this information?
Reason for the distribution of that information
Methods used to gather and store information
Confidentiality to be applied
Description of the information to be distributed (including formats) and schedules/
Security related issues
Escalation processes including timeframes for decisions
Method for updating and refining the communications management plan as the
project progresses
Glossary of common terminology
9
Communication Matrix
Communication Frequency Information Person Distribution Escalation

Requirement Format Responsible List
What needs to be How often – Presentation, Where is the The person The person
communicate, monthly, Email , Word information of group for to be
like status report, daily, document, generated or whom the escalated to
meetings, project weekly….. excel sheet . who can information in the lack
review, Also Should also provide the is intended communicati
presentations mention contain the required on
when the structure of information
communicat information
ion has be
stopped
(when the
need is
over
10
Manage Communications
During project execution, the Information gets distributed to concerned

Stakeholders as per the Communications Management Plan
Communications Management Plan, Work

Performance Reports
Communication Technology, Communication Methods, PMIS,

Performance Reporting, Communication skills
Project Communications, Lessons Learned Register and

Organizational Process Assets get updated

Performance Reports
Performance Reports provide the Status , Progress and Forecasts
They can show the following :
Analysis of past performance and current status of risks and issues

Work completed during the current period and forecast to be done in the
next period
Results of variance Analysis
Summary of Changes approved in the reporting period
Forecasted project completion
12
Monitor Communications
Right information to the right person at the right time
PM Plan, Project Communications, Issue Log,
PMIS, Stakeholder Engagement Assessment Matrix, Meetings
Work Performance Information, Change

Requests, PM Plan updates

Obstacles to Intercultural Communication
Language
Non-verbal
Perceptions
Tendency to evaluate
High anxiety
14
Emerging Trends
Some emerging trends in project communications include:

Inclusion of stakeholders in project reviews - An effective communication strategy
requires regular and timely reviews of the stakeholder community, changes in in its
membership and attitudes
Inclusion of stakeholders in project meetings – Stakeholders from outside of
project (at times organization) are made to participate in project meetings.
Increased use of social computing
Multifaceted approaches to communication
In Agile methodologies
There is a need to communicate evolving and emerging details more frequently and
quickly
Posting project artifacts in a transparent fashion
Holding regular stakeholder reviews
15
Communications Management Plan
Sender Receiver Communications Models
Managing Communications and reporting performance
Monitor Communications
Cross cultural communication
16
11. Risk Management
www.qaiglobal.com
1
Risk Management
*A project Risk is an uncertain event or condition that can

have a positive or negative impact on the project
Risk Management is concerned with conducting Risk

Management Planning, Identification, Analysis and
response planning, response implementation and
monitoring risks on a project.
The objective of Risk Management is to increase the

likelihood/impact of positive risks and decrease the
likelihood/ impact of negative risks
Risk exists at two levels within every project

Individual project risk
Overall project risk

What goes where?
Plan Risk Management – Preparing the Roadmap for the Risk
Management Lifecycle
Identify Risks– Identification of risks which might affect the project
Perform Qualitative Risk Analysis – Prioritizing risks for further analysis
Perform Quantitative Risk Analysis – Numerically analyzing the effect of prioritized

risks on overall project objectives
Plan Risk Responses – Developing options and actions to enhance opportunities

and reduce threats to project objectives
Implement Risk Responses – Implementing planned responses
Monitor Risks– Tracking identified risks, monitoring residual risks, identifying new
risks, executing risk response plans throughout the project life cycle

Plan Risk Management
The Process of Planning enables giving sufficient

consideration/ budgets and timeframes required for
Risk Management
PM Plan, Project Charter, Stakeholder Register
Data Analysis (Stakeholder Analysis) ,

Meetings
Risk Management Plan

Risk Management Plan Contents
The key components of Risk Management (RM) Plan include:

Methodology – approaches, tools and data sources to be used for RM
Roles and Responsibilities for RM
Budgeting – establishing a budget for RM activities to be included in the cost
baseline
Timing – how often RM will be done in the project lifecycle
Risk Reporting Categories (RBS) and Reporting formats/ Definitions of risk
Probability and Impact
Revised Stakeholders’
Tolerances
“The cost of performing Risk Management must be balanced against

the expected benefits and the cost of solving the problem”
5
Sample Risk Breakdown Structure
Project
Project
Technical External
Management
Project
Performance Dependencies Resources
Technology
Regulatory Customer
Complexity and
Interfaces
6
Identify Risks
This process focuses on identification of specific risks

concerning the project
Risk Management Plan, Scope Baselines,

Activity Cost Estimates, Activity Duration
Estimates, Stakeholder Register and multiple
Management Plans/Baselines
Data Gathering (Brainstorming

Sessions, Checklists, Interviewing),
Data Analysis (SWOT Analysis, Root
Cause Analysis and Assumption and
Constraint Analysis, Document
Analysis), Prompt Lists
Risk Register, Risk reports

Risk Event / Impact matrix
Contingency
Management
Reserve
‘kept’ Reserve
Planning
N.A.
Known
Known Unknown
Event
8
Risk Register Contents
Includes:
List of Identified risks, their descriptions, WBS and other project elements
impacted
Potential Risk owners
Potential Risk Responses
Risk Report presents summary information on project risks

Sources of overall project risks, key drivers to overall project risk exposure
Number of threats and opportunities
Distribution of risks
9
Perform Qualitative Risk Analysis
Qualitatively identifying the impact of identified

risks on the project
Risk Management Plan, Risk Register
Expert Judgment, Interviews, PI Assessments, PI Matrix,

Risk Categorization, Meetings
Updates to Risk Register and Risk Report
This process can lead to Perform Quantitative Risk Analysis or directly into
Plan Risk Responses

Probability – Impact Matrix
Severe III II I
Likely Impact
IV
III II
Medium
Low V IV III
Low Medium High
Likely Probability of occurrence
11
Definition of Impact Scale
Impact Type Low Medium High
Budget <10% cost increase 10-20% cost >20% cost increase

increase
Schedule <5% time increase 5-20% time increase >20% time increase
Scope Minor areas of scope Major areas of scope Scope affected

affected affected renders end
deliverable
unacceptable
Quality Quality degradation barely Quality reduction Deliverable is

noticeable requires sponsors effectively useless
approval
12
Perform Quantitative Risk Analysis
Quantitative Risk Analysis enables the PM to

prioritize the risks in an objective manner
Risk Register, Risk Management Plan ,

Schedule/Cost Management Plans, PM Plan
EMV, Decision Tree Analysis,

Simulation
Project Documents updates

Perform Quantitative Risk Analysis
Quantification helps the Project Manager to :

Assess/ Quantify the risk exposure for the project
to determine Cost and Schedule Contingency Reserves
Prioritize and assign a numerical rating to risks
Assess the probability of achieving specific project objectives
Probability Distributions , Modelling , Simulations and Sensitivity Analysis are
used during Quantitative Risk Analysis
14
Decision Tree - application
A Fixed Price Contract worth $150,000 has a clause of $1000 penalty per day of
schedule delay. The following estimates for Cost and Schedule are provided:
Self-execute
Cost can vary : with a likelihood 80% 120,000 vs. with a likelihood
of 20% 140,000
Schedule: can vary : 95% on time, 5% possibility of 2 days delay
Subcontract
Cost can vary : with a likelihood of 60% 110,000 vs. with a likelihood
of 40% 120,000
Schedule can vary:: 80% on time, 20% possibility of 20 days delay
15
Decision Tree - Solution
Cost Schedule Probability Profit Potential

.76 150,000-120,000 = 30,000 22,800
Self -execute
.95
.04 150,000-(120,000+2000) = 28,000 1,120

.05
.8
.95 .19 150,000-140,000 = 10,000 1,900
.2
.05 .01 150,000-(140,000+2000) = 8,000 80
25,900
.8 .48 150,000-110,000 = 40,000 19,200
.6
.2 .12 150,000-(110,000+20,000) = 20,000 2,400

.4
.8
.32 150,000-120,000 = 30,000 9,600
.2 150,000-(120,000+20,000) = 10,000 800

.08
32,000
16
Probability of achieving cost objectives
1.00
.75
.68
Probability
.50
.25
20 40 50 55 60 80
50
Cost (‘000 $)
For a particular cost-value in x- axis, the corresponding y-axis value
indicates the probability of completing the Project within that cost-value
17
Plan Risk Responses
Planning Risk responses facilitates development

of Risk response stances for the identified and
prioritized risks in the Risk Register
Strategies for Threats, Strategies for

Opportunities, Contingent Response
Strategy, Data Analysis (Alternative
Analysis, Cost-Benefit Analysis),
Multicriteria decision analysis
Change Requests, Updates to PM Plan

Plan Risk Responses
Strategies to deal with Negative risks

Escalate – The threat happens to be outside the scope of the project or the
proposed response in beyond the Project Managers authority
These are taken care of at the Program/Portfolio level
Avoid - Eliminate the threat by eliminating the cause
Changing the Project Management Plan or alternatives to eliminate the risk
or condition.
Transfer - Make another party responsible for the risk

Transfer the Risk to a third Party
Mitigate - Reduce the probability or the impact of a threat, thereby making it a

smaller risk
Reduce the probability and/or consequences of an adverse risk event to an
acceptable threshold.
19
Plan Risk Responses
Strategies to deal with Positive risks

Escalate – The threat happens to be outside the scope of the project or the
proposed response in beyond the Project Managers authority
These are taken care of at the Program/Portfolio level
Exploit – Ensuring the opportunity occurs
Exploiting the Opportunity for best response forward
Share - Allocate ownership of the opportunity to a third party

Enhance - Maximising the ‘size’ of the opportunity
Increase the likelihood and/or Impact of the risk event
Acceptance – Do nothing about the risk (applicable for both Threats and
Opportunities)
Active acceptance would mean no response plan but keeping some buffer in
terms of time or money whereas Passive acceptance is deciding to deal with it
when it occurs (do nothing)
20
Plan Risk Response outputs
Updates to Risk Register and Risk Report

Identified risks, WBS elements impacted, risk owners and their
responsibilities
Risk Symptoms and Agreed upon Risk Response Strategies
Contingency Reserves of time and cost
Primary and Fallback plans
Description of Secondary and Residual Risks
Updates to PM Plan
The Schedule and Cost Baselines and Management Plans may get
impacted because of identified Risk responses
The Assumptions Log can get updated because of the Risk Management
Process
21
Implement Risk Responses
The process of implementing agreed upon risk

response plans
Expert Judgment, Interpersonal Skills

(Influencing)
Change Requests, Updates to Risk

Register

Monitor Risks
Monitor risks relates to monitoring the implementation of risk

response plans, tracking identified risks, identifying and analyzing
new risks, and evaluating risk process effectiveness throughout the
project
Risk Register, Risk Report, Work Performance
Reports
Risk Audits, Reserve Analysis,
Change Requests, Updates to Risk

Register and PM Plan

Monitor Risks – key Points
Involves:
Tracking identified risks/ Identifying new risks
Monitoring residual risks and trigger conditions
Validating project assumptions and ensuring
compliance to Risk Management processes
Assessing Whether the Reserves are adequate for future expected Risks
Ensuring the execution of appropriate risk response plans
Is an ongoing process during the life of the project
24
Emerging Trends

Non-event risks - There is an increasing recognition that non-event risks need to be
identified and managed. There are two types of non-event based risks:
o Variability Risk: Uncertainty exists about some key characteristics of a planned
event or activity (like rate of interest may increase or decrease)
o Ambiguity Risk: Uncertainty exists about what might happen in the future (like
regulatory changes)
Project Resilience – There is increased awareness regarding emergent risks
(unknown unknowns). Emergent risks can be tackled through developing project
resilience by
o Provisioning for adequate schedule and cost contingencies for emergent risks
o Flexible project processes that can cope with emergent risk
o Empowered project team with agreed upon limits
o Frequent review of early warning indicators
25
Emerging Trends
Integrated risk management – Projects form part of programs/portfolios. Project

risks identified at the program level may be assigned to the Project Manager to
manage at the project level. Likewise risks outside the scope of project identified by
the Project Manager may be escalated to the program to manage. This can avoid
duplication of efforts at various levels/multiple projects.
In high variability environment (Agile) there tends to be more uncertainty. Certain

practices adopted in Agile methodologies to deal with uncertainty include:
o Frequent reviews of incremental work to accelerate knowledge sharing
o Risk is considered while selecting the scope of each iteration and managed during
the iteration
o Reprioritization of backlog is performed based on better understanding of risk
exposure
26
Risk Management Process
Risk register and its updation
Various Risk Response strategies
27
12. Procurement
Management
www.qaiglobal.com
1
Procurement Management
Includes the processes to purchase or acquire products and services from

outside the project
This can also arise in the context of administering any Contracts issued by an
outside Organisation , in the context of project performance by the Seller
2
What goes Where?
Plan Procurement Management: Finalizing product Purchase decisions, specifying

the approach and identifying potential Sellers
Conduct Procurements : Obtaining Seller responses, selecting a Seller and entering

into a Contract
Control Procurements : Monitoring Contract performance, performing changes as

needed and closing out contracts

Plan Procurement Management
What to procure? When? And How to procure?
Project Charter, Business Documents,

Requirement Documentation, Risk Register,
Resource Requirements, Project Schedule, PM
Plan
Make or Buy Analysis, Market

Research, Meetings, Source selection
Analysis
Procurement Management Plan,

Procurement Strategy, Bid Documents,
Procurement SOW , Make or Buy
Decisions, Source Selection Criteria,
Independent Cost Estimates
Types of Contract
Firm Fixed Price or Lump sum

Fixed Price Incentive Fee
Buyer’s Risk
Fixed Price with Economic Price Adjustment
FFP
Cost-Plus Fixed Fee
Cost-Plus Incentive Fee
FPEPA
Cost Plus Award Fee
Time & Material FPIF
CPIF
CPFF
Seller’s Risk
5
Type of Contract
Contract Type Pros Cons
FFP Total likely cost known at the Scope needs to be defined unambiguously –
outset else the buyer may not receive the right
Transfers maximum risk to the product
Seller Seller can try to make profit on
‘non-Tender’ items
Seller’s motivation generally low for good
quality work
CPFF/ Easier Scope mgt Total price unknown at the outset

CPIF Seller gets an incentive for Need to audit seller’s invoices
meeting the project objectives
(in CPIF)
T&M Easy to administer Seller has no incentive to control project

Can ‘mix-match’ resources costs
Total cost is unknown if the scope is not
well-defined
Requirements of record keeping/ monitoring
of seller activities
6
Procurement Management Plan
How procurement will be coordinated with other project aspects

Timetable for Procurement activities
Procurement Metrics to manage contracts
Constraints and assumptions
Legal jurisdiction and currency for payments
States if Independent Estimates will be used during Proposal Evaluation
Pre-qualified sellers
7
Procurement Strategy
Could include:
Delivery Methods - Like sub-contracting allowed/not allowed, Turnkey, design build
(DB), design build operate (DBO), build own operate transfer (BOOT) etc
Contract Payment Terms - Need to be aligned with organization’s internal financial
systems. Like lump sum, cost plus, T&M etc
Procurement Phases - Defining phases and guidelines on how to move to the next
phase, objective of each phase etc.
8
Bid Documents
Bid Documents seek Proposals from prospective Sellers
The format of the document may also be linked with the Buyer’s Organization's
policies and should be flexible enough to accommodate any Sellers’ suggestions for a
better discharge of the Procurement
Are known by different names like IFB, RFI, EOI,RFP, RFQ, Tender Notice etc. in
different Organizations/contexts
9
Typical Source selection criteria
Source selection analysis is performed to prioritize competing demands to decide upon

the source selection criteria. The selection method may include:
Least Cost - Appropriate for procurements of a standard products/services where
well-established practices and standards exist
Qualifications only – Where the value of procurement is less, contract is awarded
basis quality, credibility, expertise, reference etc.
Quality based – Technical evaluation based, one scoring highest is invited first to
negotiate and agree cost
Quality and cost based – Both quality and cost are given weightage
Sole Source – Buyer is not in a negotiating position
Fixed cost – The budget is fixed and often specified in RFP. The buyer selects the
highest ranking technical proposal within the specified budget
10
Statement Of Work
A statement of work (SOW) is a formal document that captures and defines the work
activities, deliverables, and timeline a vendor will execute against in performance of
specified work for a client.
Detailed requirements and pricing may also be included in the Statement Of Work,
along with standard regulatory and governance terms and conditions
A well written SOW shall
Specify requirements clearly to permit the seller to estimate the probable
cost
Allows seller to determine the levels of expertise, manpower, and other
resources needed to accomplish the work
States specific duties of the seller in such a way that the seller knows what is
required and completes all tasks to the satisfaction of the contract
Sites applicable specifications and standards
11
Statement Of Work
Areas typically addressed by a SOW are

Purpose – Why are we doing the project?
Scope of Work – Roughly describes the work to be done in detail
Where the work will be performed
Period of performance – specifies the allowable time
Deliverables Schedule – specifies when specific deliverables are due
Applicable Standards – Any industry specific standard that needs to be
adhered to
Acceptance criteria – How the buyer would determine whether the
product/service is acceptable
Special requirements – any specialized workforce requirement such as
certified professionals, travel requirements etc.
SOWs are carried forward and may be further negotiated with the seller into the final
contract
12
Comparison of Procurement Documentation
13
Conduct Procurements
This Process focuses on evaluating Proposals Buyer

and selecting a Seller
Bid Documents
Procurement Documentation, Procurement

Management Plan, Seller Proposals (during
iteration of the Process) Seller
Proposals
Bidder Conferences, Proposal

Evaluation, Independent Estimates, Mutual
Advertising, Negotiation
Contract
Selected Sellers, Agreements, Resource

Calendars

Proposals
Proposals are Seller-prepared documents:

Portray the Seller’s ability to deliver the requested Services
It is a formal and legal offer in response to the Buyer’s request
Can be supplemented by additional material or oral presentations
15
Typical Source Selection Process
Screening off of ‘ unqualified’ Vendors

Consideration of Technical / Commercial Proposals of screened Vendors
Explicit consideration of any risks associated
Application of Weighted Ranking Systems to shortlist and prioritize Vendors
Comparison with ‘Independent Estimates’
Conduct Negotiations and Final Source Selection
Negotiations can cover multiple aspects and are subject to elaborate processes
Sellers can be ‘Multiple’ in some cases – or a ‘Sole Seller’ may exist in the market
16
Contracts
The Award Cycle results in a signed Agreement

Legal Requirements :
An offer
Acceptance
Consideration
Legal capacity
Legal purpose
17
Typical Contract contents
SOW
Schedule/ period of performance
Pricing and Payment criteria
Acceptance criteria
Warranty and product support clauses
Limitation of liability
Fees, retainage, penalty, incentive related clauses
Change request handling procedures
Payment procedures
Termination and dispute handling mechanism
18
Control Procurements
This process focuses on managing Procurement relationships, monitoring

Contract Performance and making changes as needed and closing cotracts
Project Management Plan, Agreements,

Procurement Documentation, Approved
Change Requests
Claims Administration , Performance

Reviews, Earned Value Analysis,
Inspection and Audits
Closed Procurements, Procurement

Documentation updates, Change
Requests, Updates to PM Plan, Project
Documents and Organizational Process
Asset

Control Procurements
Matching of Seller’s Performance with Contractual obligations-

considering the Performance Reports from Vendors
Management of multiple Vendors and Communications updation with Key
Stakeholders
Making of necessary payments and maintaining necessary documentation
against invoices
Management of Change Requests through Contract Change Control Systems
and conducting Procurement Performance Reviews
Claims Administration and updation of Organizational Process Assets
Control Procurement can be treated as a separate administrative function
separate from project organization for large scale projects
Managing the relationship between the Buyer and Seller
20
Contract Closure
Involves notification that all the work and deliverables were acceptable
Includes updating of records to reflect final results and archiving results for
future use
How effective the procurement procedures were?’
Can be useful information for the current or succeeding projects
In some cases, the early termination of the Contract is invoked, which can
call for Negotiated Settlements
Organizational Process Assets are updated – including updates to
Procurement File, Deliverables Acceptance and Lessons Learned Seller
Performance Reports etc.
21
Emerging Trends

Advance Tools – Use of Online tools provide buyer/seller a single point for all
information, submission of bids etc.
Changing contracting processes – In mega projects in the past several years the
use of internationally recognized standard contract forms is increasing in order to
reduce problems and claims during execution
Logistics and supply chain management – Especially in large engineering projects
items with long lead times (1-2 years) need to be procured in advance even before
detailed design has happened.
Trial engagements - Some projects will engage several candidate sellers for initial
deliverables and work products before making the full commitment to a larger portion
of the project scope
22
Larger projects may use an adaptive approach for some deliverables and a more
stable approach for other parts. In such cases a MSA may be used for the overall
engagement , with Adaptive work placed as an appendix
In agile environments, specific sellers may be used to extend the team.
23
Overview of Procurement Process

Multiple types of Contracts
Vendor selection process
Contract administration
Role of Procurement audits
24
13. Stakeholder
Management
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1
What goes where?
Identify Stakeholder: The process of identifying stakeholders and analysing such

information as their interest, influence and need in the project
Plan Stakeholder Engagement: Developing appropriate management strategies to

effectively engage stakeholders throughout the project
Manage Stakeholder Engagement: Proactively communicating with stakeholders to

meet their needs and foster appropriate stakeholder engagement
Monitor Stakeholder Engagement: The process of monitoring stakeholder

engagement and adjusting strategies to increase effectiveness of Stakeholder
Engagement

Plan Stakeholder Engagement
Developing approaches to effectively engage stakeholders

throughout the project.
PM Plan, Stakeholder Register,

Agreements
Prioritization/Ranking, Data Representation (Mind Mapping,

Stakeholder Engagement Assessment Matrix), Meetings
Stakeholder Engagement Plan

Defining Stakeholder Engagement
Current engagement levels of stakeholders are compared to the Desired engagement

levels. This can be represented in a ‘Stakeholder Engagement Assessment Matrix’
Any gaps between the current and desired engagement levels are identified and
required actions/communications to close these gaps are defined.
Develop strategies to for gaining support or reducing obstacles
4
Stakeholder Engagement Plan
The Stakeholder Engagement Plan may include the following:
o Existing and desired levels of engagement in the project

o Scope and impact of change to stakeholders
o Details of how stakeholders are to be involved in the project
o What key messages to be passed on to the stakeholders
o Who from within the project would interface with the stakeholder
o What information to be distributed to stakeholders and why
5
Sample Stakeholder Register
Standardization of specification for Telecom Tower Roll out

Assessment of
Stakeholder Name Major Need Strategy
Influence
Share:
Top end specification
1. Reliability analysis report
Customer required High
2. Cost-benefit analysis (marginal analysis)
Cost is secondary
Low CAPEX and OPEX Clearly communicate Cost-benefit analysis

Top Management Very High
but still meeting SLAs and reliability analysis
Top end specs to

Plan User trials
O &M reduce down time. Medium
Cost secondary
Low - have less say

Circle Project Team Ease of rollout Convince by using Prototype deployment
in decision making
Off the shelf availability Low - company Float questionnaires on specs availability
Equipment vendors No need for being the biggest Involve in field trials
customization vendor Plan Lead times in procurement
6
Manage Stakeholder Engagement
Stakeholder Engagement Plan, Communication

Management Plan ,Stakeholder Register,
Change Log, Issue Log
Communication skills, Interpersonal and

Team Skills (Conflict Management,
Cultural Awareness, Negotiation,
Observation/Conversation, Ground
Rules
Issue Log, Change Requests, updates to
PM Plan

Manage Stakeholder Engagement
This process focuses on the process of communicating with the Stakeholders

and addressing issues as they occur
Addressing concerns which have not become issues- so that early resolution
is achieved
It is imperative that all the Stakeholders understand the Risks and Benefits of
projects for their effective involvement
8
Monitor Stakeholder Engagement
Monitoring overall project stakeholder engagement and adjusting

strategies and plans as appropriate
Stakeholder Engagement Plan,

Stakeholder Register, Issue Log
Data Analysis (Alternative Analysis, Root Cause Analysis),

Stakeholder Engagement Assessment Matrix, Communication skills,
Interpersonal skills, Expert Judgment, Meetings
Change Requests, Updates to PM Plan, Project Documents

Monitor Stakeholder Engagement
Monitor Stakeholder engagement involves:
o Checking stakeholder engagement was done in accordance with the Stakeholder

Engagement plan
o Measure the effectiveness of Stakeholder Engagement in overall
o Reassess the stakeholder register for any new stakeholders, new needs from the
identified stakeholders
Based on above analysis, this process may lead to
o Updating the stakeholder register with better strategies to address stakeholder

needs
o Revising the Stakeholder Engagement plan with more effective ways to engage
with the stakeholders
10
Emerging Trends
Trends and emerging practices in Stakeholder engagement include:

Identifying all stakeholders, not just project team and customer
Participation of project team in stakeholder engagement activities
Reviewing stakeholder community regularly
Involving most affected stakeholders of the project through the concept of co-creation
Agile considerations…
Adaptive teams engage with stakeholders directly rather than going through layers of
management
Agile methods promote aggressive transparency. Inviting any stakeholders to project
meetings and reviews and posting project artifacts in public spaces is to surface as
quickly as possible any misalignment
11
Stakeholder Identification Process
Defining Stakeholder Engagement Strategy
Preparing Stakeholder Engagement Assessment Matrix
Manage and monitor stakeholder engagement
12
14. Professional
Responsibility
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1
PMI ® code of Ethics and Professional Conduct
Collective Conduct of Individual Practitioners adhering to this code is

expected to foster credibility and reputation of the PM Profession
A Project Manager has professional responsibilities towards the
Profession
Project
Stakeholders
And Society at large
2 PMI is a registered mark of the Project Management Institute, Inc.

Code of Ethics and Professional Conduct
A new ‘Code of Ethics and Professional Conduct’ has been brought out by the PMI® –
as applicable to:
All PMI® Members
Non- PMI® Members – but hold a PMI® Certification/ commencing to apply
for a PMI® Certification/ Serving PMI® in a volunteer capacity
Values that support this code include: Responsibility, Respect, Fairness and Honesty-
as foundation.
Under each of the values – Aspirational and Mandatory standards have been
prescribed.

Theme – Responsibility- Aspirational Standards
Responsibility consisting in owning the decisions taken ( or failed to be taken)

The Aspirational standards include:
PM takes responsibilities for the actions of the team
The PM undertakes to complete the commitments undertaken to
completion
Protecting Confidential information entrusted
A mutual upholding of the code is implied
4
Theme – Responsibility- Mandatory Standards
Inform ourselves and uphold the Code
The PM undertakes to bring to the notice of any violations in discharge of PM

responsibilities
Any violations are substantiated by facts and brought to the notice of the appropriate
authorities
Not to abuse the rights of others – including the IP rights

Theme – Respect
Respect includes the regard for self, public and the resources entrusted to us
It also includes respecting the cultural diversity – facilitating trust, cooperation and
Performance excellence
Aspirational Standards in this theme include:
Seeking to understand the viewpoints of others

Conducting self in a professional manner
Mandatory Standards include:

Carrying out Negotiations in good faith
during Procurement
Respecting the property rights of others
6
Theme – Fairness
Fairness relates to the duty to make decisions impartially and

objectively
Aspirational Standards in this theme include:
The PM must exercise fairness in dealing with Team

Members
and Stakeholders- as appropriate
Provision of equal access to information to all qualified
Stakeholders is implied

Conflict of Interest: All conflict of interest situations are
disclosed to appropriate authorities
In case of real or potential conflict of interest, The PM
notifies the appropriate authorities and proceed as per
best judgment

Theme – Honesty
Honesty – refers to understanding of the truth and act in a truthful manner in

communications and conduct
It relates to the duties of the PM in correct understanding of the factual situations and
taking decisions thereof

Develop credibility by not making misleading or false statements
Not engaging in a dishonest behaviour with an intention of personal gain or at the
expense of another
8
Other Themes in Professional Responsibilities
Ensure individual integrity
Contribute to the PM knowledge base
Enhance individual competence
Balance stakeholders’ interests
Interact with the team and stakeholders in a professional and cooperative manner
9
Ensure Individual Integrity….
Ensure Legal Compliance with all business matters related to the geography of the
project
Protect:
Company data and processes
Classified information
Refrain from offering and accepting bribes or inappropriate gifts / payments for
personal gains
10
Knowledge Management
Keep abreast of best practices and disseminate them
Seek new information that would enhance your Organization’s business practices and
professional efficiencies
Contribute back to the PM knowledge base
11
Balance Project and Stakeholders Interests
Provide truthful information on scope, costs, status and expected results of the
project
Resolve Conflicts within the project in favour of the Customer - if there is a choice
Ensure personal rapport with the stakeholders does not bias professional judgments
Escalate project problems to higher levels when necessary in a timely and effective
manner
12
Professional Responsibilities towards the Team
Keep the Team Members informed of the project progress and future course of
actions
Provide training where necessary
Give Team Members honest, timely and transparent feedbacks and be interested in
their welfare
Manage Conflicts with fairness
No bias on the basis of Nationality, Gender, Religion
13
Key themes of PMI® Code of Ethics and Professional Conduct
Description of Four fundamental values supporting the Code of Ethics and Professional
Standards
Aspirational and Mandatory Standards governing these values

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6

Introduction to PMI and PMP

Mobile Phones: Silent mode please

Questions are welcome at any time

Respect view point of others

Keep discussions brief and to the point

Please be prompt in returning from breaks

PMI® – the leading non-profit organization devoted to project management

Has a global coverage with members from various leading organizations

Propagates multiple Services – including Research & Education, Development of

Has City chapters and SIGs

Project Management Professional (PMP ®) Certification is amongst the most coveted

Many organizations require PMP® as a prerequisite qualification for their Managers

Though it is industry generic, has seen lots of acceptability in IT and IT related

I want to acquire Have Degree Yes

Become a PMI® Member

Apply for PMP® Take PMP® exam from

Questions get mixed up in various process groups

Formal Academic education/ Giving lectures etc.

PMI® can schedule Audits to verify the experience Verification forms

Responding to PMI® Audit requires submission of supporting documentation - like

Project Management Body of Knowledge (PMBOK®) describes knowledge unique to

This PMBOK® Guide is different from a methodology. A methodology is a system of

This PMBOK® Guide is a foundation upon which organizations can build

As per PMBOK ®( Sixth edition), 49 processes have been enumerated

These processes fall under five Process Groups of

Product oriented processes are different from project management processes

Initiation – Those processes performed to define a new project

Planning – Those processes required to establish the scope,

Monitoring and Controlling

Monitoring & Controlling – Those processes required to Execution

Adaptive projects rely heavily on a knowledgeable customer. Identification of this

Projects navigating high degrees of complexity and uncertainty should involve as

Monitoring & Controlling

A project is a temporary endeavour undertaken to create a unique product, service or

What are some of the characteristics of a project?

Construct Home Progressing through steady

“Project Management is the application of Knowledge, Skills, Tools and Techniques to

Project Lifecycle is a part of Product Lifecycle

Program – A Program is a group of related projects, managed in a coordinated way to

Theme Project Program Portfolio

Theme Project Program Portfolio

OPM is defined as a framework in which portfolio, program, and project management

Each contributing in different ways:

Portfolio management aligns portfolios with organizational strategies by selecting the

Performing Organization/ Stakeholders

A PM needs to select appropriate project management processes, inputs, tools,

Certain considerations while tailoring would include:

Business Case - The project business case is a documented economic feasibility

Benefits Management Plan - The project benefits management plan is the

o Target benefits: List of all benefits tangible/non-tangible

Governance is the framework within which authority is exercised in organizations.

A project governance framework may have guidance on:

Project Manager The Organization Structure

Hybrid – Mix of other types

Project Part-time Part-time

Organic/Simple Multi-divisional Virtual Hybrid

A project management office (PMO) is an organizational structure that standardizes

There could be several types of PMOs such as:

Supportive – provide consultative role to projects; degree of control is LOW

Controlling – provide support and ensure compliance through various means;

Directive – Take control of projects by directly managing the projects; degree of

These include the Organizational policies, procedures, knowledge databases, practice

These Assets can include Organizational: