PMBOK 6 Ed- DEI-

Organizational
structure

Functional Matrix Projectized

 Project Expediter and Coordinator
Project Expediter
– acts primarily as a staff assistant
– as communications coordinator.
– cannot personally make or enforce decisions.

Project Coordinator
has some power to make decisions
Has some authority
reports to a higher-level manager
Types of Organizational Structures (1)

Functional
• Organization is grouped by areas of specialization
• Project generally occur within a single department
 Types of Organizational Structures (2)

Weak Matrix
• Power rest with the functional manager
• Power of project manager = coordinator or expediter
Types of Organizational Structures (2)

Balanced Matrix
• Power is shared between the project manager and the
functional manager (almost full time PM)
Types of Organizational Structures (3)

Strong Matrix
• Power rest with the project manager (full time PM
and Staff)
Types of Organizational Structures (1)

Projectized
• Entire company is organized by projects
• Personnel are assigned and report to a project manager
Types of Organizational Structures (3)

• Composite = Functional + Projectized

Organizational Structure
STAKEHOLDER
 Who are the Stakeholders?

• persons or organizations who are actively

involved in the project or whose interests may
positively or negatively affected by the
performance or completion of the project.

• levels of responsibility and authority and

can change over the project life cycle
Stakeholders
 Exercise!
• Describe the role of :
– Project manager
– Project sponsor
– Project team
– Project management team
– Portfolio manager
– Program manager
 Enterprise Environmental Factors
• Refer external environmental factors that surround
or influence a project’s success
• As an input in almost all project management process
• May enhance or constrain project management
options
• May have positive or negative influence on the
outcome
 EEF EXAMPLES
 Organizational culture, structure, and processes
Government or industry standards
 Infrastructure
 Existing human resources
 Personnel administration
 Company work authorization systems
Marketplace conditions
 EEF EXAMPLES
 Stakeholder risk tolerances
Political climate
 Organization’s established communications
channels
 Commercial databases
 Project management information
 Organizational Process Assets
Processes & Procedures
– Organizational standard processes such as standards,
policies
– Standardized guidelines, work instruction, proposal
evaluation criteria, and performance measurement criteria
– Templates
– Financial control procedures
– Procedures for prioritizing, approving, and issuing work
authorization
– Etc.
 Organizational Process Assets
Corporate Knowledge Base
– Process measurement databases

–Project files
–Historical information & lesson learned
knowledge bases

–Issue and defect management databases

– Configuration management knowledge
bases
 10 competence of Project
leader Core function (PROJECT SUCCESS)
Project stakeholder

scope schedule cost quality

managemet

Project Integration Management

resources communication risk procurement

Supporting function

10 knowledges area
 Defining and controlling
what work is or is not
included

SCOPE
 estimating how long it will
schedule take to complete the
work, developing an acceptable
project schedule, and
ensuring
 COST
preparing and
managing the budget
for the project

MINIMIZE
THE VARIANCE !
QUALITY
“Ensures that the
project will
satisfy the
stated or implied
needs “
RESOURCE

“Making effective use of the

resources involved with the project”
 COMMUNICATION
Generating,
collecting,
disseminating, and
storing project
information.
 RISK
Identifying, analyzing, and responding to risks
 Acquiring or procuring
goods and services for a
project from outside

PROCUREMENT
STAKEHOLDER
“the
communciation in
between projects’
stakeholder is
effectively
established”
 INTEGRATION
“Manage the main process
and connect nine aspects”
 Project constraints
The Triple
Constraint
or
The Trade-off
Triangle

SCOPE/QUALITY
Projects are means of
“Achieving organization’s strategic plan”
Project constraints
cost
return

scop
e
Customer
satisfaction
 Project

A result
An
product Service (outcome
improvement
document)

Tangible item e.g intangible item e.g intangible item e.g intangible item e.g
car, food, building consultant, training ISO, Six Sigma research, trend
SOURCE OF
PROJECT
SOURCE OF
PROJECT
SOURCE OF
PROJECT
SOURCE OF PROJECT
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed- DEI-
 Organizational
structure

Functional Matrix Projectized

 Project Expediter and Coordinator
Project Expediter
– acts primarily as a staff assistant
– as communications coordinator.
– cannot personally make or enforce decisions.

Project Coordinator
has some power to make decisions
Has some authority
reports to a higher-level manager
Types of Organizational Structures (1)

Functional
• Organization is grouped by areas of specialization
• Project generally occur within a single department
 Types of Organizational Structures (2)

Weak Matrix
• Power rest with the functional manager
• Power of project manager = coordinator or expediter
Types of Organizational Structures (2)

Balanced Matrix
• Power is shared between the project manager and the
functional manager (almost full time PM)
Types of Organizational Structures (3)

Strong Matrix
• Power rest with the project manager (full time PM
and Staff)
Types of Organizational Structures (1)

Projectized
• Entire company is organized by projects
• Personnel are assigned and report to a project manager
Types of Organizational Structures (3)

• Composite = Functional + Projectized

Organizational Structure
STAKEHOLDER
 Who are the Stakeholders?

• persons or organizations who are actively

involved in the project or whose interests may
positively or negatively affected by the
performance or completion of the project.

• levels of responsibility and authority and

can change over the project life cycle
Stakeholders
 Exercise!
• Describe the role of :
– Project manager
– Project sponsor
– Project team
– Project management team
– Portfolio manager
– Program manager
 Enterprise Environmental Factors
• Refer external environmental factors that surround
or influence a project’s success
• As an input in almost all project management process
• May enhance or constrain project management
options
• May have positive or negative influence on the
outcome
 EEF EXAMPLES
 Organizational culture, structure, and processes
Government or industry standards
 Infrastructure
 Existing human resources
 Personnel administration
 Company work authorization systems
Marketplace conditions
 EEF EXAMPLES
 Stakeholder risk tolerances
Political climate
 Organization’s established communications
channels
 Commercial databases
 Project management information
 Organizational Process Assets
Processes & Procedures
– Organizational standard processes such as standards,
policies
– Standardized guidelines, work instruction, proposal
evaluation criteria, and performance measurement criteria
– Templates
– Financial control procedures
– Procedures for prioritizing, approving, and issuing work
authorization
– Etc.
 Organizational Process Assets
Corporate Knowledge Base
– Process measurement databases

–Project files
–Historical information & lesson learned
knowledge bases

–Issue and defect management databases

– Configuration management knowledge
bases
 10 competence of Project
leader Core function (PROJECT SUCCESS)
Project stakeholder

scope schedule cost quality

managemet

Project Integration Management

resources communication risk procurement

Supporting function

10 knowledges area
 Defining and controlling
what work is or is not
included

SCOPE
 estimating how long it will
schedule take to complete the
work, developing an acceptable
project schedule, and
ensuring
 COST
preparing and
managing the budget
for the project

MINIMIZE
THE VARIANCE !
QUALITY
“Ensures that the
project will
satisfy the
stated or implied
needs “
RESOURCE

“Making effective use of the

resources involved with the project”
 COMMUNICATION
Generating,
collecting,
disseminating, and
storing project
information.
 RISK
Identifying, analyzing, and responding to risks
 Acquiring or procuring
goods and services for a
project from outside

PROCUREMENT
STAKEHOLDER
“the
communciation in
between projects’
stakeholder is
effectively
established”
 INTEGRATION
“Manage the main process
and connect nine aspects”
 Project constraints
The Triple
Constraint
or
The Trade-off
Triangle

SCOPE/QUALITY
Projects are means of
“Achieving organization’s strategic plan”
Project constraints
cost
return

scop
e
Customer
satisfaction
 Project

A result
An
product Service (outcome
improvement
document)

Tangible item e.g intangible item e.g intangible item e.g intangible item e.g
car, food, building consultant, training ISO, Six Sigma research, trend
SOURCE OF
PROJECT
SOURCE OF
PROJECT
SOURCE OF
PROJECT
SOURCE OF PROJECT
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
1-2-3 – Introduction
Characteristics of Project Life Cycle
Characteristics of Project Life Cycle
 Project life
cycle (PLC)

Plan- Change-
driven
hybrid
driven
Plan Driven PLC

• It has predictive developmental stages—

waterfall/traditional stage
• Require scope, schedule, cost to be determined in
early project
• E.g construction project
 Change Driven PLC

• Use iterative, incremental, adaptive (agile)

developmental life cycle
• Prioritizing requirement into iteration, focus to create a
prototype
• E.g software developement
Hybrid Development
Combination of predictive and iterative life cycle
Predictive stylemanage the project requirement that
well defined
Iterativemanage the project requirement that less
clear
What work
will be
performed in
each phase?

PROJECT LIFE CYCLE

 PROJECT LIFE CYCLE
• What deliverables will
be produced and
when?
Deliverable
A deliverable is a product
or service produced or
provided as part of a
project
• Who is involved in
each phase?
• IDENTIFY STAFF
• IDENTIFY STAKHOLDER
• ROLES AND
RESPONSIBILITY

PROJECT LIFE CYCLE

How management will
control and approve work
produced in each phase?
1-2-3 – Introduction
Project Management Process
 Project Management Process
Interaction
I P
• Project management
E
processes are represented as
discrete elements with well-
defined interface
M&C C

Project life cycle may be different but project

management process always the same!
Research design code test transition

I P
E

M&C C

Small project with predictive life cycle

feasibility planning design production Turn-over

I P I P I P I P I P
E E E E E

C C C C C
M M M M M
& & & & &
C C C C C

large project with predictive life cycle with

phase gates (indicated by the vertical bar)
feasibility initiation Release release Close -out
planning
I P I P I P I P
E E E
E iteration
C C C C
M M M I P M
& E &
& &
C C C C C
M
&
C

Large project with an adaptive life cycle

Process Interaction

•In practice, they overlap and interact

Reason for entering project
initiation

Business need

Begin a new
phase of the Project Initiating
project

Project has many

problems that you have
reevaluate the business
need
Reason for entering project
planning

Project initiation
is completed

Project executing
necessitates Project Planning
ongoing planning

Project monitoring and

controlling necessitates
additional planning
Reason for entering project
exection

Project Planning
is completed

Project Execution

Integrated change
control results in a
changed project
management plan
Reason for entering project
execution

Project Planning
is completed

Project Execution

Integrated change
control results in a
changed project
management plan
 Reason for entering project
monitoring and controlling
Project initiating to
Requested changes, including
review the project
recommended corrective and
charter
preventive action and defect
repair from all sources
Project Planning to
elaborates plan as
Work performance new information is
data Project M&C learned

Project executing to
repair defects and
deliverables implement approved
changes including
corrective and preventive
action

Project closing if the

project is completed
or terminated
Reason for entering project
closing
Project phase is
complete

Project is
complete
Project closing

Project is
terminated
 Next topic:
Project Integration Management
Thank You
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed. – DEI-
 Project Integration
Monitoring &
Controlling Processes
Planning
Processes

Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project

Executing
Processes
Process
Knowledge
Area Monitoring &
Initiating Planning Executing Closing
Control
• Develop • Develop • Direct and • Monitor and Control • Close
Project Project Manage Project Work Project
Charter Management Project • Perform Integrated
Integration Plan Execution Change Control
• Manage
Project
Knowledge
 INTEGRATION
“to identify, define, combine, unify, and
coordinate the various processes and
project management activities”
 4.1 Develop
Project Charter
“A document that
formally authorizes a
project or a phase”

“ Documenting initial
requirements that
satisfy the
stakeholder’s needs
and expectations”
 Inputs Tools &
1.Business
Techniques
Documents 1. Expert judgment Outputs
2. Data gathering
• Benefits 1.Project charter
• Brainstorming
management plan • FGD 2.Assumptions
• Business case • Interview log
2. Agreement 3. Interpersonal and team
3. EEF skill
4. OPA • Conflict management
• Facilitation
• Meeting management
4. meetings
“Project are authorized by someone external to the
project such as sponsor, PMO, portfolio steering
committee”

“Project charter can be created by them

or delegated to Project Manager”
• STATEMENT OF WORK
– A narrative description of products or
services to be delivered by the project.
– The SOW references:
• Business need
• Product scope description
• Strategic plan

SOW
 Business case
» Determine whether or not the project is worth
the required investment.
• Market demand
• Organzation need
• Customer request
• Legal
• Technological
• ecological
• Social need
Benefit management plan
» a document that captures the organization’s desired
benefits from project whether economic or intangible
»Explain how the benefits will be maximized and
sustained
 Project Selection
Benefit measurement
methods (Comparative
approach)

Constrained optimization
methods (Mathematical
approach)
 Benefit measurement methods
• Murder board (a panel of people who try to shoot down a
new project idea)
• Peer review
• Scoring models (Factor Rating)
• Economic models
Constrained optimization methods
(Mathematical approach)
•Linear programming
•Integer programming
•Dynamic programming
•Multi-objective programming
 Project Selection – Economic Models

•
•
Present value (PV
Net present value (NPV)
BIGGER THAN
• Internal rate of return (IRR) ZERO
• Benefit-cost ratio:

• Payback Period

The quicker the better

 Project Selection – Important Terms
• Economic Value Added (EVA):
– concerned with whether the project returns to the company more value than
it costs.

• Opportunity Cost:
– the opportunity given up by selecting one project over another

• Sunk Costs:
– Are expended costs
– Should not be considered when deciding whether to continue with a troubled
project.

• Law of Diminishing Returns:

– after a certain point, adding more input/resource will not produce a
proportional increase in productivity
 Project Selection – Important Terms
• Working Capital
– current assets minus current liabilities for an organization or
– amount of money the company has available to invest

• Depreciation
– Straight line depreciation
• The same amount of depreciation is taken each year.

– Accelerated depreciation
• Depreciates faster than straight line
• Two forms: (1) Double Declining Balance, (2) Sum of the
Years Digits
 EXPERT
JUDGEMENT
– Other unit within organization
– Consultants
– Stakeholders including
customer or sponsor
– Subject matter experts
– PMO
– Industry groups
– Professional & technical
association
 DO’S & DON’T
BUSINESS NEED APPROVAL
MAJOR
STAKEHOLDER

PROJECT
DURATION CHARTER

BUDGET
SUMMARY

PM ROLE

SPECIFICATION
MEASUREMENT
OBJECTIVE
• Project Charter, includes:
– Project purpose or justification,
– Measurable project objectives and
related success criteria,
– High-level requirements,
– High-level project description,
– High-level risks,
– Summary milestone schedule,
– Summary budget,
– Project approval requirements
– Assigned project manager,
responsibility, and authority level
– Name and authority of the sponsor or
other person(s) authorizing the project
charter.
4.1 Develop
Project “Documenting the
actions necessary
Management to define, prepare,
integrate and
Plan coordinate all
subsidiary plans”

Documenting 10
knowledges area
 Tools &
Techniques
1.Expert judgment
2.Data gathering
Inputs • Brainstorming Outputs
1.Project charter • FGD 1.Project
2.Outputs from • Interview management
planning 3. Interpersonal and plan
processes team skill
3.EEF • Conflict
4.OPA management
• Facilitation
• Meeting
management
4. meetings
 Facilitation Tehcnique
» Barinstorming, meeting, solving the problem,
conflict resolution
 Project Management Plan

Project Baseline Subsidiary Plan

 Project Baseline
Anaylze VS
the gap or
Deviation

Actual
scope

cost

time

Planning Actual
Baseline
 Approved
versions

Subsidiary
Baseline Subsidiary plan include:
• Scope management plan
Project baselines include:
• Requirement management
• Schedule baseline
plan
• Cost performance
• Schedule management plan
baseline
• Cost management plan
• Scope baseline
(Performance measurement
• Quality management plan
baseline) • Process improvement plan
• Resource plan
• Communications management
plan
• Risk management plan
• Procurement management
plan
 Project
Management Plan
• The strategy
for managing the
project
• Define, plan,
manage, and
control the
project.
 Change management plan
Configuration management plan
Performance Measurement baseline
Project Life cycle
Development approach
Management Reviews

Additional Plan
 “How changes
will be
managed and
controlled”

Change Management Plan

– Change control procedures
(how and who)
– The approval levels for
authorizing changes
– The creation of a change
control board (CCB) to
approve changes
– A plan outlining how changes
will be managed and
controlled
– Who should attend meetings
regarding changes
– Tools to use to track and
control changes
Configuration Management Plan
• A plan of making sure everyone
know what version of the scope, schedule
etc of the project management plan is the latest
version
Once the project management plan is
complete, the sponsor or key stakeholder
review and approve it
 Lets recap!
Sponsor/customer

Sponsor sign PM and team

PM help identify the develop the
Business and issue the
stakeholder and project
documents chapter
document chapter management plan

Company Project Project

Sponsor
culture and Manager Manager
existing
system

Processes, Detailed planning, the

procedures project management plan is
and historical bought into approved,
information realistic and formal
Before develop management plan can be completed and
executing can begin, a kick of meeting should be
held!
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed. – DEI-
 4.3 Direct &
Manage Project
Execution

Completing the
activities and
deliverable in the
project
management plan
 Inputs Tools & Outputs
Techniques
1.Project 1. Deliverables
management
1.Expert judgment 2. Work perfromance
plan 2.Project data
2.Approved management 3. Change requests
change request information 4. Project
system management plan
3.Project updates
Document 3.meeting 5. Issue log
4.EEF 6. Project document
5.OPA updates
7. OPA udpate
PROJECT PROJECT
MANAGEMENT DOCUMENTS
PLANS

VERSUS

Baseline + susbsidiary
plan Memo, project logs, risk
register, stakeholder
resgiter, quality metric
Manage project
Knowledge

Take advantage of the

knowledge the organization has
accumulated over time
 Tools &
Techniques
Inputs 1.Expert judgment
Outputs
1.Project 2.Project 1. Lesson learned
management register
management
plan information 2. Project
management plan
2.Deliverables system updates
3.Project 3.Knowledge 3. OPA udpate
Document management
4.EEF
4.Information
5.OPA
management
5.Interpersonal and
team skill
 Sharing new process, success, etc
internally within the project, as well as
making that knowledge accessible
 Knowledge comprises 2 aspect:

Explicit knowledge Tacit knowledge

Words, picture, symbol Experience, emotion,
ability
Knowledge Management
 Lesson Learned Register
• Technical aspect what was right or
wrong
• Project managementhow did we do in
wbs creation? Risk planning? Etc.. What
did we learn?
• Management how did I do with
communication and leadership as a PM?
Lesson Learned on a project

Other current
Lesson
project
learned
recorded in Your project Project lesson
company learned
OPA
Company
OPA

The important thing is developing organizational

culture to promote growth through the sharing of
knowledge and experience
4.4 Monitor &
Control Project
Work

What is happening
on the project and
comparing the
actual and
forecasted
performance to
what was planned
 Inputs Tools & Outputs
Techniques
1.Project 1.Change
management 1.Expert judgment requests
2.Project 2.Data Analysis 2.Work
Documents 3.Decision making Performance
3.Agreements 4.meeting report
4.Work 3.Project
Performance management
information plan updates
5.EEF
6.OPA
4.Project
document
updates
 Corrective Action
Any action taken to bring expected future
project performance in line with project
management plan
• Create metric
• Realistic management
plan
• Find root cause
• Measure project
performance see EVM
technique
Preventive action
• Dealing with anticipated or
possible deviations from
the performance baseline
and other metrics
• The action do not change
the baseline
• Example: training,
changing resource
Defect Repair
• Another saying of
“Rework”
• When a component
does not meet the
specification
• All
corrective/preventive/defect
repair action should be reviewed,
approved, rejected or deferred as
part of Perform Integrated Change Control
Process (PIIC)
 Exercise
• When meeting with the customer to Validate scope
obtain acceptance of interim
deliverables
• When measuring project Control scope,
performance against the
performance baseline
schedule, cost
• When making sure people are Manage quality
using the correct process
• When evaluating whether the
performance reports are meeting Monitor
stakeholder needs communication
 Exercise
• When working with project team Manage team
• When assessing stakeholder
relationship Manage stakeholder
engagement

• When you notice that there are many Manage risk

unidentified risks occurring
• When evaluating seller’s performance Control procurement
• When evaluating team member’s
Manage team
performance
• When making sure deliverables meet Control quality
quality standards
• When communicating w/ stakeholder to Manage stakeholder
resolve issues and manage perception engagement
about the project
 4.5 Perform
Integrated
change control
Reviewing,
approving and
managing changes to
deliverables, OPA,
project documents
and the project
management plan.
 Inputs Tools & Outputs
Techniques
1.Project 1.Approved
management 1.Expert judgment Change
plan 2.Meetings requests
2.Project 3.Decision making 2.Project
Documents 4.Change control management
3.Work tools plan updates
Performance 3.Project
reports document
4.Change request updates
5.EEF
6.OPA
A change is requested does not
mean it has to be or even should be
implemented

Always look at the impact of each

change on all the project constraints
Process for Making changes
1. Evaluate the impact
2. Identify the optionscutting scope,
crashing/fast-tracking
3. Get the CR approved internally
4. Get customer buy in (if required)
 Update
the status
of issue
Change log
Asses the change
control
adjust

PM Plan Update

Change request
Identify option
Project Document
Perform Change
Control Board
Plan Update

Integrated Communicate
stakeholder

change control
(PIIC)
 4.6 Closing
Project

“Finalizing all activities across all of the

Project Management Process Groups to
formally complete the project or phase”
 Inputs
1.Project charter
2.Project Tools & Outputs
management Techniques
plan 1.Project
1.Expert judgment
3.Project Documents
document 2.Data analysis update
4.Accepted 3.meetings 2.Final product,
deliverables service or result
5.Business transition
document 3.Final report
6.Agreements 4.OPA updates
7.Procurement
documentation
8.OPA
Closing Project Process
Confirm works is done to requirement

Obtain formal confirmation that contract is completed

Gain final acceptance of the product

Solicit customer ‘s feedback about the project

Complete final performance reporting

Index and archive records

Gather final lesson learned and update knowledge base

CASE STUDY
 What went wrong?
• 2 years behind
scheduleloss $6,1 billion
• Cause? Integration-
disentgration (no clear
project integration)
• Pre-assmebly (German) to
assembly Line (France)
dismatch-CATIA Problem
• Trouble in wiring (harsness)
 Try this game
• https://rmcls.com/process-chart-game-v9
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed. – DEI-
Scope = binocular

Focus and clear sight

 More manageable
And focus!

what work is or is not included

in a project
Unclear scope leads to conflict
Unsatisfaction and fail
 the same
understanding of
what products
what processes

How??
Plan Scope
Collect Requirement

Define Scope (sort and balance )

Create WBS

Validate Scope (signed acceptance)

Control Scope (Measure & adjust)

 Monitoring &
Controlling Processes
Planning
Processes

Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project

Executing
Processes

Knowledge
Process
Area Monitoring &
Initiating Planning Executing Closing
Control
Plan Scope
Collect Requirements Verify Scope
Scope
Define Scope Control Scope
Create WBS
feasibility initiation Release release Close -out
planning
I P I P I P I P
E E E
E iteration
C C C C
M M M I P M
& E &
& &
C C C C C
M
&
C

On change driven project, requirements are identified

and documented at a sufficient level of detail
the work is broken into releases and iteration
“Define the process create how the
project and product scope will be
defined, validated and controlled.”
 Inputs Tools & Outputs
1. Project Charter Techniques 1. Scope
2. Project Management Plan
1. Expert Judgement
Management Plan 2. Requirements
2. Data Analysis
4. EEF Management Plan
3. Meetings
5. OPA
Scope Management Plan

Product scope (Feature)

Process making product
Scope Management Plan
How to achieve scope
What tools to use to plan how
the project will acccomplish
the scope
How to create WBS
How scope will be managed
and controlled
How to obtain acceptance of
deliverables
 Requirement Management Plan

Process how the requirement wil be

elaborated, ranked and measured
 “Determining, documenting and
managing stakeholder needs and
requirements to meet objectives"
 Inputs Tools &
Techniques Outputs
1. Project Charter
1. Expert Judgment 1. Requirements
2. Project
Management Plan 2. Data Gathering Documentation
3. Project Documents 3. Data Analysis 2. Requirements
4. Decisions Making Traceability
4. Business Matrix
Documents 5. Data
5. Agreements Representations
6. EEF 6. Interpersonal and
Team Skills
7. OPA
7. Context Diagram
8. Prototypes
Brainstorming

Encourage participants to
build on each other ideas
INTERVIEW

Expert interview, elicit the

project requirement
FOCUS GROUP DISCUSSION

Interactive discussion with

qualified Stakeholders & Subject
matter experts
FACILITATED WORKSHOP

Bring together stakeholder with different

perspective such as product designer and end
user define the product. E.g: QFD, JAD
 Facilitated Workshop
• Stakeholder may develop user stories:

As a <role>, I want <functionality/goals> so that

<business benefit/motivation>

Ex:
As a “student”, I want co-working space around
campus so that we can finish group assignment
 brainstorming

Voting / ranking
Group
creativity Delphi technique
technique
Mind mapping

Afinity diagram
Multicriteria Decision
Delphi Technique

Some expert answer

questionnaire and
give anonimity
feedback
 Afinity diagram
Sort idea into group
 Multicriteria analysis
Criteria Weight scor
score score e
40%
20%
10%
10%
10%
10%
total 100%
GROUP DECISION TECHNIQUE

•Unanimity DELPHI TECHNIQUE

•Majority (>50%),
•Plurality, the largest block
•Dictatorship
“something that is
not related to the
reason of project
created or Project
charter should be
rejected!”
 Balancing the requirement

Project scope
Business Case statement
Project charter
Project constraints
REQUIREMENT DOCUMENTATION

The requirements clear

and unambiguous.
Specific (Unambiguous)
Measurable (How will we
know we have finished?)
Achievable (Can we do it?)
Relevant (Is it the right thing
to do?)
Timed (When will we do it?)
 •Stakeholder
requirement
•Solution
requirement
•Project
requirement

REQUIREMENT DOCUMENTATION
 REQUIREMENT TRACEABILITY MATRIX

Linking requirement to the project objectives

It is helpful to elicit requirement on large project

31
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed. – DEI-
“Concerned with what is and is
not included in the project and
its deliverable”
 Inputs Tools & Outputs
1.Project Charter Techniques
1.Scope
2.Project 1.Expert judgment Management
Management 2.Data Analysis Plan
Plan 3. Decision Making 2. Project
3.Project 4. Interpersonal and Documents
Documents Team Skills Updates
3. EEF 5. Product Analysis
4. OPA
 PRODUCT ANALYSIS

• Description of the
product stated by the
customer/sponsor and turn
them into tangible
deliverables.
HOW TO MAKE SCOPE STATEMENT??
DESCRIBE THE PRODUCT AND THE PROCESS

Feature

material
Pull system or
push system
...
...
etc
 Measure the acceptance criteria

Functionality test, safety test etc

 WHAT IS NOT PART OF THE PROJECT?

Customization, upgradable?
malfunction

Additional risk??
 CONSTRAINTS AND ASSUMPTIONS

Pertamax? Premium?
“Subdividing project deliverables
and project work into smaller, more
manageable components.”
 Inputs Tools & Outputs
1.Project Techniques 1. Scope
Management 1. Expert Baseline
Plan Judgment 2. Project
2.Project
2.Decomposition Documents
Documents
Updates
3. EEF
4.OPA
•WBS does not show dependencies
•Work package: lowest level WBS
•WBS is not a list! Its graphical view of the project
• wbs is created with input from the team and stakeholder
WBS Structure can be organized by
• Phases
• Major deliverables
• Subprojects e.g. contracted
work

Decomposition :
1. Top down approach
2. Bottom up approach
 initiating planning executing testing

feasibility design ...........

safety
...........
prototype
........... ...........
functionality

WBS grouped by phases ...........

 Electrical machine chasis mechanical

Engine
accu design transmision
type
...........
........... ...........
Gear ratio

WBS grouped by deliverable ...........

 Comp. A Comp B Comp. C Comp. D

design electrical chasis mechanical

...........
........... ........... ...........

WBS grouped by sub. contractor

 WBS dictionary
activity description responsible cost
1. ELectrical
1.1...
1.2 .....
2. Chasis
2.1. ....
2.2. ...
3. machine

more detailed components, e.g. description of work,

responsible organization, acceptance criteria
 Beware of
excessive
decomposition!
It can lead to
non-productive,
inefficient use of
resources
 WBS prevents work
from slipping to the
crack,
Help to identify risk,
basis estimate for cost,
resource and
schedule, prevent
form changes, get
team-buy in
 Project
control
procurement Activity list

Risk Network
management diagram

WBS
Quality
Resources
management

Budgeting estimating
scheduling
 Scope Baseline
Project Scope statement
Baseline are
WBS simply the
final and
Work Package approved
version of
Planning Package project mgt
plan
WBS dictionary
 “Formalizing acceptance of the
completed project deliverables
during monitong and controlling
phase. ”
 Outputs
Inputs
Tools & 1.Accepted
1. Project Techniques Deliverables
Management
Plan 2. Work
1. Inspection Performance
2. Project Information
Documents 2. Decision Making
3. Change
3. Verified Requests
Deliverables
4. Project
4.Work Document
Performance Updates
Data
 Inspection

Measuring, examining, and validating to

determine work and deliverables are
meet requirement & product
acceptance criteria with OWNER
 Work must be
completed before
each meeting with
customer. So you
must have what are
called verified
deliverables form the
control quality
Relationship between Validate Scope
and Control Quality
Complete deliverables
(part of direct and
Manage project Work)

Changes request are

Perform Control evaluated through
Changes are Integrated change control
Quality Inspection
requested and approved change may
(verify deliverables)
lead to replanning

Meet with the

customer Customer accepts
(validate scope deliverables
process)
“Measuring and assessing work performance
data against the scope baseline and manage
scope baseline changes”
 Outputs
Inputs
Tools & 1. Work performance
1. Project Techniques Information
Management Plan 2. Change Requests
2. Project 1. Data 3. Project
Analysis Management Plan
Documents
Updates
3. Work 4. Project Document
Performance Data Updates
4. OPA
 Beware of
SCOPE CREEP!
AND GRANDIOSE
SCOPE
It can lead to
PROJECT FAIL
In 2001, McDonald initiated
intranet project connect its
headquarters

$170 million on
consultants and initial
implementation planning,

McDonald’s realized that the

project was too much to
handle and terminated it
 BEST
PRACTICE
MAKING
GOOD
SCOPE
 KEEP
THE SCOPE
REALISTIC
DONT TOO
LARGE
 ASSIGNED
KEY USER IN
SCOPE
PLAN
PRIORITIZE
BUSINESS
NEED THAN
IT NEED
FOLLOW
GOOD
PROJECT
PRACTICE
 Summary
• You must plan how you will determine the scope as
well as you will manage and control scope
• Scope must be clearly defined and formally
approved before start
• Requirement elicitation may take longer time
especially on larger project
• Requirement must be evaluated against the
business case, ranked and prioritized to determine
what is and out of scope
• WBS is used on all projects
• WBS is not a list!
 Summary
• While the project is being completed, you must
check to make sure all the work is included in the
PMP– and only that work
• Gold plating is not allowed
• Any changes should be evaluated for its effect on
time, cost, risk, quality, resources and customer
satisfaction
• Change to scope require an approved change
request
• Scope changes should not approved if they are
not fit in project charter
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed. – DEI-
 Time has the least
amount of flexibility;
Schedule issues are the
main reason for
conflicts on projects,
especially during the
second half of projects
 The processes required to
manage timely completion of
the project

PROJECT SCHEDULE MANAGEMENT

Plan Schedule Management

Define Activities

Sequence Activities

Estimate Activity Durations

Develop Schedule

Control Schedule
 Monitoring &
Controlling Processes
Planning
Processes

Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project

Executing
Processes

Knowledge
Process
Area Monitoring &
Initiating Planning Executing Closing
Control
Plan Schedule
Activity Definition
Activity Sequencing
Scope Control time
Activity Duration
Estimating
Schedule Development
 Plan Schedule

“Establishing the policies, procedures and

documentation”
 Inputs Tools &
Techniques Outputs
1. Project
1.Expert 1.Schedule
Charter
judgment
2. Project Management
2.Data Analysis Plan
Management
Plan 3.Meetings
3. EEF
4. OPA
“Identifying the specific actions to produce
the project deliverables”
Work package decomposed into activities

DEFINE ACTIVITIES
 Outputs
Tools &
Inputs 1. Activity List
Techniques
1. Project 2. Activity
1. Expert Judgment Attributes
Management
2. Decompositions 3. Milestone List
Plan
3. Rolling Wave 4. Change
2. EEF Planning Requests
3. OPA 4. Meetings 5. Project
Management
Plan Updates
 Rolling Wave
Planning: plan to a
higher level and then
develop more detailed
plan when the work is to
be done
 Progressive
elaboration: process
clarifying and refining
plans as the project
progress
 cake

preparation execution Garnish delivery

purchase pre heat

put into
measure
mold

bake

put cake
Activity Atributes:
•Used to identify e.g. the unique activity indetifier (ID),
WBS ID, and activity label or name
 Milestone List
• a significant point or event in the project.
• required by contract
• historical information
• zero duration
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed. – DEI-
 SEQUENCE ACTIVITIES

identifying and documenting the relationships

among the project activities.
 Tools &
Inputs
Techniques Outputs
1.Project 1. Precedence
Management Plan Diagramming 1.Project Schedule
2.Project Documents Method (PDM) Network Diagrams
3.EEF 2. Dependency 2.Project Document
Determination and Updates
4.OPA
Integration
3. Leads and Lags
4. Project
Management
Information System
 Precedence
Diagramming
Method (PDM)
Method used in Critical Path Methodology (CPM)
Activity on Node
No dummy activities
Logical relationship
Logical Relationship in
PDM
Finish to start (FS)
Start to Finish (SS)
Finish to Finish (FF)
Rarely used Start to Start (SS)
Relationship
Finish to start

“You have to make a dough first for

baking process”
Finish to start
FS=5

A=15 B=5
Start to Finish

“start campaign while the former

leader waiting the end of his period”
Start to Finish
A=15 SF=25 B=15
 Finish to Finish

“Paint parking line while lay asphalt”

Finish to Finish
A=15 FF=5 B=10
 Start to start

“Furniture move in while employee

move in as soon”
Start to Start
A=10 SS=5 B=15
Applying Leads and Lag

• support realistic and achievable project

schedule.
• Each activity is connected at least to one
predecessor and one successor except the start
and the end.
 Applying Leads
Start an activity
before the
predecessor activity
is complete.

A B C

predecessor Successor
A
Leads
B
 Applying Lags

“Inserted waiting time between activities”

A Lags

B
To define sequence
among activity, we
need to understand
dependency
determination e.g
mandatory,
discretionary,
external, and
internal
Mandatory Discretionary
(hard logic) (knowledge base)

External Internal
(third party) organization

Dependency Determination
 Example: The activity List and the sequence
ID activity predecessor
A Purchase the material -
B Measure the ingredients A
C Mixing B
D Pre heat the oven C
E Put the batter into mold C
F Bake the cake C,D
G Put the cake in the plate F
Cut the unnecessary side
H of the cake G
I Mix the cream B
J Garnish the cake G
K Put the cake into fridge J
L Package the cake K
M Delivery the cake L
 D

start A B C J
F G
E H K

L
I
M

END

Example: The Network Diagram (PDM)

 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed. – DEI-
 Estimate ACTIVITY
Durations

Estimate how long each activity will take

 Tools &
Inputs
Techniques
1.Project 1. Expert judgment Outputs
Management 2. Analogous 1.Durations
Estimating (top-
Plan down)
Estimates
2.Project 3. Parametric 2.Basis of
Document Estimating Estimates
4. Three Point 3.Project
3.EEF Estimating
Document
4.OPA 5. Bottom-up Updates
Estimating
6. Data Analysis
7. Decision Making
8. Meeting
 Bottom up estimating
Similar to WBS
cake

preparation execution garnish delivery

purchase pre heat cut package

put into
measure garnish deliver
mold

bake put into fridge

put cake
 Activity Resource Requirement

Resource duration
ID Activity predecessor
(man) (minute)
A Purchase the material - 2 30
Measure the
B A 2 15
ingredients
C Mixing B 1 15
D Pre heat the oven C 1 10
Put the batter into
E C 1 5
mold
F Bake the cake C,D 1 120
 Resource Breakdown Structure
cake

People Equipment Material

kitchen Transportation Mixer Flour

Cheff Driver Mold Reosurce

Egg categorized by people,
equipment (machine), and
Assitant assistant oven Milk material

Baking
powder

fruits
Effort is the number of Duration includes the
workdays or work hours actual amount of time
worked on an activity plus
required to complete a
elapsed time
task
EFFORT VS DURATION
Analogous Estimate

Use actual duration

of previous activity
(historical) that
has similarity

Master, high skill

Great experience
 Parametric estimate

RP. 100.000

RP. 200.000
Use statistical relationship or math analysis
between historical data and other variables
Reserves Analysis
 Reserves Analysis

BAD DESIGN
 Reserves Analysis

Analyze which the highest risky activity

And give them reserve time, not too tight!
THREE POINT ESTIMATE
•Triangular distribution (simple average)
•Duration estimates based on using optimistic, most
likely, and pessimistic estimates of activity durations,
•tE = (tO + tM + tP) / 3

14
 PERT
•Beta Distribution (weighted average)
•uses probabilistic TIME & COST estimates
•tE = (tO + 4tM + tP) / 6
Expected Standard Variance
Deviation

P  4Μ  Ο PΟ P  Ο 
2 SD   variance
 
6 6  6 
 exercise
Beta
Expected activity
Activity range of the
activity P M O (Beta
standard estimation
distribution)
deviation
A 47 27 14

B 89 60 41

C 48 44 39

D 42 37 29
 Answer
Beta
Expected
Activity range of the
Activity P M O activity (Beta min max
standard estimation
distribution)
deviation
22.67 to
A 47 27 14 28.167 5.5 22.667 33.667 33.667
28.167 +/-5.5
53.667 to
B 89 60 41 61.667 8 53.667 69.667 69.667
61.667+/-8
42.333 to
42.333 45.333 45.333
C 48 44 39 43.833 1.5
43.833 +/-
1.5
34.333 to
34.333 38.667 38.667
D 42 37 29 36.500 2.167
36.6 +/-
2.167
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed. – DEI-
Develop Schedule

analyzing activity sequences, durations,

resource requirements and schedule contraints
 Tools &
Techniques Output
Inputs 1. Schedule Network 1. Schedule Baseline
Analysis 2. Project Schedule
1. Project
Management Plan 2. Critical Path 3. Schedule data
Method
2. Project 4. Project Calendars
Documents 3. Resource 5. Change Request
Optimization
3. Agreements 6. Project
4. Leads and Lags Management Plan
4. EEF
5. Schedule updates
5. OPA Compression
7. Project Document
6. Project Updates
Management
Information
System
7. Agile Release
Planning
 GANTT CHART
Symbols include:
Black diamonds: milestones
Thick black bars: summary tasks
Lighter horizontal bars: durations of tasks
Arrows: dependencies between tasks

4
 Resource Calendar
Information (skill, location, etc) in which resource are
potentially available.

Resource duration
ID Activity predecessor
(man) (minute)
A Purchase the material - 2 30
Measure the
B A 2 15
ingredients
C Mixing B 1 15
D Pre heat the oven C 1 10
Put the batter into
E C 1 5
mold
F Bake the cake C,D 1 120
 Resource Calendar
Plot into Gant Chart format

Summary task
ACT
A A,2 A,2 Summary task
B B,2

C C,1 Milestone : tasting

D D,

E 1 Milestone : check
F F,1

10 20 30 40 50 60 70 80 90 100 110 120

DURATION
 Resource Calendar
ACT
A A,2 A,2

B B,2

C C,1

D D,

E 1

F F,1

10 20 30 40 50 60 70 80 90 100 110 120

MAN DURATION
6 A,2
5
4
3 2 2 2
2 1 1
1
10 20 30 40 50 60 70 80 90 100 110 120
DURATION
 Resource Calendar

MAN
6 A,2 We need only 2 people work this
5 project
4
3 2 2 2
2 1 1
1
10 20 30 40 50 60 70 80 90 100 110 120
DURATION
Adding Milestones to Gantt Charts

• Many people like to focus

on meeting milestones,
especially for large
projects
• emphasize important
events or
accomplishments on
projects
• ZERO DURATION
9
Schedule Network Analysis

Activity on Arrow
(AOA)

Network
diagram

Activity on Node
(PDM)
AON OR PDM RULES

Activity on
Arrow
(AON)
ES DUR EF

ACTIVITY NAME
LS TF LF
 FLOAT (SCHEDULE FLEXIBILITY)
• Float/slack
• Total float amount of time an activity can be delayed
without delaying the project end date

• Free float amount of time an activity can be delayed

without delaying the early start date of its successor

• Project float positive total float amount of time a

project can be delayed without delaying the externally
imposed project completion date required by the customer
or management

• Float is an asset
AON OR PDM RULES
ES DUR EF EF = ES + D -1
LS = LF – D +1
ACTIVITY NAME Float (F) = LS – ES = LF – EF

LS TF LF

• ES= Earliest Time • LS= Latest Start

• EF= Earliest Finish • LF= Latest Finish
• Dur= Duration • TF= total Float or slack
• EF= Earliest Finish (delayed time)
AON OR PDM PRACTICE
duration
ID predecessor
(minute)
A - 30
B A 15 Draw network diagram
C B 15
D C 10
first!
E C 5
F C,D 120
AON OR PDM PRACTICE

Calculation • Backward Pass:

• Forward Pass: • LS – D +1 (predecessor) =
• ES + D-1 = ES(successor) LS (predecessor)
• use highest value on join • Use lowest value on join
 Critical Chain Scheduling

considers limited resources

when creating a project schedule
and includes buffers to protect
the project completion date

16
 Buffers and Critical Chain

–Project buffers or additional time

added before the project’s due date
–Feeding buffers or additional time
added before tasks on the critical path
17
Example of Critical Chain Scheduling

18
Schedule Compression: Fast Tracking

– Performing critical path activities in parallel.

– Usually increase risk and requires more attention
to communication.
– May need a rework.
– E.g. Design is half finished and start coding.
Schedule Compression: Crashing Method

– Add more reosurces to finish the task

– Always results in increased cost.
 Exercise
• Imagine if the project has float -3months,
which activities presented above would you
crash to save 3 months on the project,
assuming that the activities listed above
represent critical path activities
 exercise
original Crash
time extra cost per
Activity duration Duration original cost crash cost
(months) (months) savings cost month
J 14 12 2 10000 14000 4000 2000
K 9 8 1 17000 27000 10000 10000
N 3 2 1 25000 26000 1000 1000
L 7 5 2 14000 20000 6000 3000
M 11 8 3 27000 36000 9000 3000
 exercise
original Crash
time extra cost per
Activity duration Duration original cost crash cost
(months) (months) savings cost month
J 14 12 2 10000 14000 4000 2000
K 9 8 1 17000 27000 10000 10000
N 3 2 1 25000 26000 1000 1000
L 7 5 2 14000 20000 6000 3000
M 11 8 3 27000 36000 9000 3000

Some possible options might be J and K (2+ 1)

And another option include: J &N, K &L, L&N, M
 EXERCISE
• Find the least cost of those options

activities cost
J and K 14000
J and N 5000
K and L 16000
L and N 7000
M 9000
 Schedule shortening
• Fastrack always add risk and cost, may add
management time for PM
• Crash always add cost and risk, may add
management time for PM
• Reduce scope save cost, resource, time, may
negatively impact customer satisfaction, may
increase risk
• Cut quality requires good metrics on current
and desired levels of quality in order to be
effective, may negatively impact customer
satisfaction
 Output Develop Schedule
• Show interdependencies between variables
network diagram
• To report senior management milestone
chart
• To track progress and to report to the team
bar chart
Control Schedule

Monitoring the status of the project to update

project schedule and schedule baseline
Controlling the Schedule Goals

• know the status of the schedule

• Influence factors that create schedule changes
• influence factors that cause schedule changes,
• determine that the schedule has changed
• manage changes when they occur
28
 Inputs Tools & Outputs
1. Project Techniques 1. Work Performance
information
Management Plan 1.Data Analysis
2. Schedule Forecasts
2.Project Documents 2.Critical Path Method 3. Change Requests
3. Work 3.Project Management 4. Project Management Plan
Performance Data Information System 5. Project Management Plan
4. OPA 4.Resource Updates
Optimization 6. Project Document
Updates
5.Leads and Lags
6.Schedule
Compression
Schedule Control Suggestions

• First review the draft schedule or

estimated completion date in the
project charter
• Prepare a more detailed schedule
with the project team
• realistic and followed
• Alert top management for problem

Perform reality checks on schedules: 30

 Schedule Control Suggestions

Allow for contingencies

31
Schedule Control Suggestions

Don’t plan for everyone to work at 100% capacity all

the time
32
Schedule Control Suggestions

Hold progress meetings with

stakeholders and be clear and honest in
communicating schedule issues
33
Why Projects Are Often Late?
Many project managers estimate project
duration and cost by simply adding up most likely
estimates of activity durations and costs;
Multitask contractor or vendor
 Reference

• PMBOK® Guide – Sixth Edition (2017).

• PMP® Exam Prep, Ninth Edition (2017)
PMBOK 6 Ed. – DEI-
The process required to manage
the project on budget and get
the profit

PROJECT COST MANAGEMENT

“Cost estimating, budgeting, and
control should be the concern of
everyone”
 IT change initiatives in almost 1,500
projects and reported an average cost
overrun of 27 percent! (harvard,2011)
How to get the
profit and the
budgets stay
on the track?
The answer is...
Plan Cost Management
Estimate Costs

Determine Budget
Control Costs
 Monitoring &
Controlling Processes
Planning
Processes

Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project

Executing
Processes

Knowledge
Process
Area Monitoring &
Initiating Planning Executing Closing
Control
Plan Cost
Scope Cost Estimating Control Cost
Cost Budgeting
• Cost estimates, budgets, WBSs, and schedules are
interrelated.
• When the cost cannot be estimated because it is too
complex, the task is broken down further until it can.
 Plan Cost Management

“Determining the policies, procedures, and

documentation to manage budget”
 Inputs Tools &
Techniques
Outputs
1.Project Charter
1.Expert Judgment 1.Cost
2.Project
Management 2.Data Analysis Management
Plan 3. Meetings Plan
3.EEF
4.OPA
Units of Measure M
C A
Level of Precision
O N P
Level of Accuracy
A L
Organizational Procedures Links S G
Control Thresholds T E A
M N
Rules of Performance Measurament
E
Reporting Formats N
Additional Details T
 Estimate Cost

“The process of developing approximation of

the cost resources needed to complete project
work”.
 Tools &
Inputs Techniques Outputs
1.Cost 1. Expert Judgment 1. Cost Estimates
Management 2. Analogous Estimating
2. Basis of
Plan 3. Parametric Estimating
Estimates
4. Bottom-up Estimating
2.Project 3.Project
5. Three-point Estimates
Documents Document
6. Data Analysis
3.EEF 7. Project Management Updates
4.OPA Information System
8. Decision Making
Types of Cost
• Variable Costs • Fixed Costs
–Change with the –Do not change
amount of as production
production/work change
–e.g. material, –e.g. set-up, rental
supplies, wages
Types of Cost
• Direct Costs • Indirect Costs
–Directly –overhead or cost
attributable to the incurred for benefit
work of project of more than one
– e.g. team travel, project
recognition, team – e.g. taxes, fringe
wages benefit, janitorial
services
 Quality/Accuracy of Cost Estimation

Estimate Accuracy
• Most difficult to estimate as very little project info
is available, made during initiating process
Rough Order • Project selection decisions.
--25%
50%
of Magnitude +75% • Very early in the project life cycle, often 3–5 years
+100%
(ROM) before project completion

• allocate money into an organization’s budget.

-10% • Used to finalize the Request for Authorization

Budget
(RFA), and establish commitment, made during
Estimate +25% planning phase
• Early, 1–2 years out
• Used for making many purchasing decisions
Definitive -10% • Estimate actual cost, during the project and
Estimate 10% refined
• Later in the project, less than 1 year out
 conformance
Cost of <
Quality Non
conformance
 Analogous (Top Down Estimating)
Advantage Disadvantage
1. activities don not need 1. Less accurate
to be identified 2. Estimate are prepared
2. Less costly with limited
3. Cost constraints information of project
created by 3. Requires experiences
management 4. Extremely difficult for
high uncertainty
project
 Bottom up Estimating
Advantage Disadvantage
1. More accurate 1. Takes time and money
2. Gains team buy-in 2. Tendency for padding
3. Based on detail 3. Requires the project to
analysis be defined well
4. Provide basis of M&C 4. Requires time to break
down into small pieces
Conformance

Money spent during the project to

avoid failure. Prevention cost &
Appraisal cost
Non-Conformance

Money spent during and after the

project because of failure. internal
cost & external cost
Contractor’s / seller’s Estimate Cost example:
Problem in estimating cost
Estimates too quickly
Large projectbig effort
People lack estimating experience.
Capability, cumulative experience,
training
Human beings are
biased toward
underestimation.
Senior vs junior
Management desires accuracy.
Shorter timenegotiate
Determine Budget

“Aggregating the estimated costs of

individual activities or work
packages to establish an authorized
cost baseline”.
 Inputs Tools &
Techniques Outputs
1. Project
Management Plan 1.Expert Judgment 1.Cost Baseline
2. Project 2.Cost Aggregetion 2.Project Funding
Documents 3. Data Analysis Requirements
3. Business 4.Historical 3.Project
Documents Information Document
Review Updates
4. Agreements
5. Risk Register 5.Funding Limit
6. EEF Reconcilation
7. OPA 6.Financing
Cost Budget
Cost Aggregation
Project Management Cost baseline
Budget reserve

Contingency
Cost Control reserve
baseline accounts Activity
Work contingency
Package
Activity cost
cost
estimate
estimate
 Funding Limit Reconciliation

• The act of comparing and adjusting the

funding limits and the estimated costs by
refining the scope, rescheduling the activities
and so on.
Cost aggregation example:
Control Costs

Monitoring the status

of the project to
update the project
costs and managing
changes to the cost
baseline
 Inputs Tools & Outputs
Techniques 1. Work Performance
1. Project
Management Plan Information
1. Expert Judgment
2. Project 2. Cost Forecast
2. Data Analysis
Documents 3. Change Requests
3. To-complete
3. Project Funding Performance Index 4. Project
Requirements Management Plan
4. Project Updates
4. Work Performance Management
Data Information System 5. Project Document
5. OPA Updates
How to control cost?
•Follow the Cost
Management Plan
•Look at any OPA that are
available
•Manage change: record,
prevent, ensure, manage,
measure
 Earn Value Management
• Measure the health of a project
• to communicate the progress of
the works.
• Measure in monetary terms
 Earn Value Management

Plan cost (Plan Value) 100.000

Actual Cost 80.000

Cost efficiency???
 Earn Value Management

NOT ENOUGH
INFORMATION
 Earn Value Management
As of today
Original plan
BAC
Original PV
spending
actual AC
spending
ETC EAC
Forecast
Spending
plan
 Earn Value Management

Plan cost (Plan Value) = 100.000 (100%)

Actual Cost 80.000 (50%)

Cost efficiency???
The actual cost should be 50.000
 Earn Value Management
Plan cost (Plan Value/ PV) or BCWS
Budgeted Cost Work Scheduled

Actual Cost (AC) or ACWP

Actual Cost Work Performed

Earn Value (EV ) or BCWP PV x % work

Budgeted Cost Work Performed
Earn Value Management

SPI (Schedule Performance Index)

SPI= EV/PV

SPI < 1  Schedule overrun

SPI = 1  on time
SPI > 1  Schedule underrun
 Earn Value Management

CPI (cost Performance Index)

CPI= EV/AC

CPI < 1  OVER BUDGET

CPI = 1  on BUDGET

CPI > 1 UNDER BUDGET

 Earn Value Management

Variance
Analysis

Cost Variance (CV): EV-AC

Schedule Variance (SV): EV-PV
Exercise:

Ten houses will be built within 12 months.

The cost of each houses is Rp 100 milion. The
project condition after 5 months are :
– The cost already used Rp.310 milion whereas the
plan value until fifth month is estimated at Rp.
360 Milion.
– The overall performance of the project,
converted to money, equals to Rp. 250 Milion.
Answer:
• cost variance (CV)= EV-AC= Rp. 250 - Rp 310= -6,
overbudget 6 milion
• Schedule Variance (SV)= EV-PV = Rp250 - Rp360
= -11, schedule overun equals to 11 Milion.
• Cost Performance Index (CPI)= EV/AC = Rp
250/Rp 310= 0,806 (overbudget, actual>planned)
• Schedule Performance Index (SPI)= EV/PV=RP
250/ Rp.360= 0,694 (schedule overrun, actual >
planned)
Ada 4 pendekatan untuk
menghitung EAC lho!
 Simple calculation
Based on previous performance

No variances form the BAC have occurred

EAC Poor cost performance (CPI<1)

Original estimation fundamentally flawed

 Simple calculation
Based on previous performance

Varians dianggap
sama sampai
akhir
EAC=AC+(BAC-EV)

Besarnya gap dengan baseline biaya cenderung sama (stabil)

sampai nanti proyek selesai
No variances from BAC EAC = BAC/CPI
Or EAC= AC + (BAC-EV)/CPI

Kumulatif CPI mencerminkan kinerja masa lalu namun

mempenaruhi keadaan proyek pada akhirnya
 EAC= AC+
Poor cost performance
[(BAC-EV)/(Cumulative CPI + Cumulative
(CPI<1) SPI)]

Kinerja biaya proyek buruk dan membutuhkan perhatian

manajemen
Original estimation fundamentally EAC= AC+ Bottom Up ETC
flawed

Mengalami perubahan baseline berkali2 identic dengan

perubahan amandemen proyek
Answer:

Estimate at completion
EAC*= AC + ETC (estimate to complete)
ETC= BAC-EV= 1000-250= 750
EAC*= 310+ 750=1060
EAC*= BAC/CPI = 1000/0.806=1.240,69

Estimate Complete Duration (ECD)

Initial schedule/SPI= 12/0.694 =17,29
To-Complete Performance
Index (TCPI)

Work Remaining (BAC – EV)

• TCPI 
Funds Remaining (BAC – AC) or (EAC - AC)

TCPI>1 Bad
TCPI<1Good
To-Complete Performance
Index (TCPI)

• TCPI = (1000-250)/ (1000-310) = 1,08 or

• TCPI * = ((1000-250)/ {(1000-250)/0,806}-310} = 1,2

the efficiency that must be achieved on the remaining work

for a project to meet a specified endpoint, such as BAC or
*the team’s revised EAC
EVM Interpretation

• SPI= 0,806 (we’re only progressing at about 83 percent

of the rate planned)
• CPI= 0,694 (we are only getting 89 cents out of every
dollar we put into project
EVM Interpretation

• ETC= 750 (we need so spend an additional 750 to finish

the project)
• EAC= 1060 (we currently estimate that the total project
will cost 1060 at the end)
 E
SA
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CN
UV
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VL
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Image captured from Practice Standard for Earned Value Management, PMI © 2005 E
 E
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Image captured from Practice Standard for Earned Value Management, PMI © 2005 E
Earned Value: Graphical Representation
TODAY
(Reporting day)
Projection of
schedule delay
at completion
Estimate at
Completion
EAC (EAC)
Projection of
cost variance
at completion
BAC (VAC)

AC Budget at
Completion
(BAC)
COST

Cost
Variance
(CV)

PV

Schedule
Variance
(SV)
ACTUAL
EV
PLAN

EARN
VALUE

TIME
Project is over budget & behind schedule
example
activity predecessor resource duration
A - 6 4
B A 2 1
C A 2 3
D B 7 4
E D 3 2
F E,C 1 1
Resource limit is set at 8 man
Draw project network
5 1 5 6 4 9 10 2 11
B D E
12 1 12
5 0 5 6 0 9 10 0 11 FINISH
1 4 4 F
Start A 12 0 12
1 0 4
5 3 7
C
9 4 11
 Plot into Gantt chart
• Using dependency and interdependency
diagram
 Resource
imbalance
TF C= 4 DAYS
AKTIVITAS
A A,6
B B,2

C C,2
D D,7
E E,3
F F,1
0 1 2 3 4 5 6 7 8 9 10 11 12
DURASI
Task splitted
 Summary
Period Resource levelling
requirement
0-4 6 6
4-5 4 4
5-9 9 7
7-9 7 7
9-11 3 5
11-12 1 1
 Resource Loading Chart
Delayed task
8
Resources

6
Resource
4 imbalance
A D F
B
2
E
C

2 4 6 8 10 12 14
Project Days
 Recruitment at the early period
Period levelling
0-4 6 Recruitment cost =
4-5 4 $10/man
5-9 7 Idle cost= $5/man
7-9 7
9-11 5 Wages= $15/man
11-12 1
 Recruitment at the early period
Period levelling Cost
0-4 6 1) 7 x $10= $70 Recruitment cost =
2) 6 x $15= $90
3) 1 x $5= 5
$10/man
total= $165 Idle cost= $5/man
4-5 4 1) 4x $15= $60
2) 3 x $5= $5 Wages= $15/man
total= $ 65
5-9 7 7x $15= $90
7-9 7 7x $15= $90 Total cost= 510
9-11 5 5x $15= $85
11-12 1 1x $15= $15
• the United Kingdom’s National Health
Service (NHS) IT modernization program

will eventually cost more $26

billion overrun
• incompatible systems, resistance from
physicians, arguments among
contractors about who’s responsible
• The Obama campaign used 16 different
online social platforms,

• 80 percent of all contributions originated from

social networks,
 Reference
• Rita Mulcahy’s, PMP Exam
Prep Ninth Edition. 2018

• PMBOK Guide Sixth Edition. 2018.

PMBOK 6 Ed. – DEI-
 Monitoring &
Controlling Processes

Planning
Processes

Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project

Executing
Processes

Process
Knowledge
Area Monitoring &
Initiating Planning Executing Closing
Contol

Quality
Quality Planning
Manage Quality Control Quality
 Project Quality
Management

• Quality is degree to which the project fulfills

requirements
• Quality means meeting requirements,not
adding extras (gold plating)
Quality Related to PMI-ism

• PM should determine the metric to

measure quality before the project
begins

• PM should define quality

management process
 Quality Related to PMI-ism

• PM recommends OPA, policies, standard to

improve quality
• Quality should be checked before an activity
or work package is completed
 Quality Related to PMI-ism

• PM ensure the quality approaches are

followed
• Quality should be considered when CR occur
 Quality Related to PMI-ism

• PM ensure quality standard and process are

adequate to meet the requirements
• Some quality activities may be performed by
quality department
 Project Quality Management

Creating and following

policies and
procedures to ensure
that a project meet
the defined needs
(from the customer’s
perspective)
 Quality Concepts
Quality vs. Grade
– Quality: the degree to which a set of inherent
characteristics fulfill requirements
– Grade: a category assigned to product or service having the
same functional use but different technical
characteristics
Quality Concepts

Gold Plating
Giving the customer extras not recommended
Quality Concepts

Just In Time
just when they are needed or just before they are needed.
It forces attention on quality practices.
Quality Concepts

Customer Satisfaction
Match the desired expectation, give value added and
economical value as well
 Quality Concepts
TQM  Total Quality Management
Company & their employees focus on finding ways
to continuous improve the quality of their business
practices & products (Kaizen)
 Poor quality effect
Increases cost, decreased profit, low morale,
low customer satisfaction, increased risk,
rework
Project Quality Management

Set a
standard Plan Quality
process,
Manage Quality effectiveness,
audit
Correctness of the
deliverables
Control Quality
Plan Quality

• Identifying quality
requirement and/or
standards
• documenting how the project
will demonstrate compliance.
– What is quality? How will we
ensure it?
 Inputs Tools & Outputs
Techniques
1. Project Charter 1.Quality Management
1. Expert Judgment
2. Project Plan
2. Data Gathering
Management 3. Data Analysis 2. Quality Metrics
Plan 4. Decision Making 3. Project
3. Project 5. Data Management Plan
Documents Representation Updates
4. EEF 6. Test & Inspection 4. Project Document
Planing
5. OPA Updates
7. Meetings
Cost Benefit Analysis
“Weight the benefits versus the cost
of meeting quality requirements”
Design of Experiments (DOE)
•Use experimentation to statistically determine what
variable will improve quality
•Systematically changing all of the important factors,
rather than changing the factors one at a time”
Statistical Sampling
“We need it since studying entire
population would take too long, too
much cost, be too destructive”
 conformance
Cost of <
Quality Non
conformance
Conformance

Money spent during the project to

avoid failure. Prevention cost &
Appraisal cost
Non-Conformance

Money spent during and after the

project because of failure. internal
cost & external cost
Cost of Quality
Cost of
Cost of Conformance
Nonconformance
Quality training Rework/Repair
Quality audit Scrap
Studies, Surveys Inventory cost
Effort to ensure everyone knows Warranty cost
the process to use to complete
their work
Quality staff Lost business
Cost of Quality Before and After Quality Initiative :

% OF TURNOVER
.
Savings

rework
Rework

Inspection Inspection
Prevention
prevention
IAMPI 2014 pto
Before After
 Ishikawa
checksheet
Scatter
Quality Histogram
tools Pareto
Flow chart
Run chart
Ishikawa IAMPI 2014 pto

Cause and Effect (Ishikawa) Diagram:

USE :
(Cause and Effect analysis) Random Method
Systematic Method
TIME MACHINE METHOD MATERIAL Process Analysis Method

MAJOR DEFECT

ENERGY MEASUREMENT PERSONNEL ENVIRONMENT

POTENTIAL CAUSE EFFECT

Always ask : Who? What? Where? When? Why? How?

MACHINE METHOD MATERIAL TIME
CORRECTIVE
ACTION

USE : Solution MEASUREMENT PERSONNEL ENVIRONMENT ENERGY

Analysis Method
Ishikawa exmple
• Ihikawa/Fishbone chart/ cause effect diagram/ 5 whys,
Checksheet
• Checksheet  collect and analyze data.
Scatter Diagram
Scatter diagram/Regression Analyis
•if there is a relationship between two variables, diagonal
line
Scatter Diagram
• •
• •
• • •
• •
• •
• •
• •
•

SCATTER DIAGRAM (Low to Moderate Negative)

•
•
•
•
•
•

SCATTER DIAGRAM (Highly Negative) IAMPI 2014 pto

Scatter Diagram
Scatter Diagram :
•
•
•
•
•
•

SCATTER DIAGRAM (Highly positive)

• •
• •
• • •
• •
• •
•
• •

SCATTER DIAGRAM (Zero Correlation) IAMPI 2014 pto

Histogram
• Histogram a bar graph of a distribution of variables.
Pareto
Pareto a histogram that can help you identify and prioritize
problem areas. 80/20

referred to as the 80-20 rule

meaning that 80 percent
of problems are often due to 20
percent of the causes.
Pareto example
Pareto example
Flow chart
• Flowcharting analyze how problems occur and
how processes can be improved.
Run chart
Run Chart: To look at history and see a pattern of variation
Control chart
Rule of seven (non random data points)
Out of control
Assignable/special cause Normal and expected variation
Upper control limit Usually 3 or 6 sigma

Lower control limit

Normal distribution curve

Out of control Specification limit: is point

Assignable/special cause determines by customer,
not calculated based on
control chart
Additional Quality Planning tools

SIX SIGMA achievement of no more

than 3.4 defects, errors, or mistakes per
million opportunities.
Additional Quality Planning tools
Additional Quality Planning tools
TQM

Deming’s 14 Points on Quality Management

A core concept on implementing total quality
management (TQM)
PLANDOCHECKACTION
Additional Quality Planning tools

Joseph Juran
Juran’s trilogy on TQM
1. Planning
2. Improve
3. Control
Additional Quality Planning tools

Philip Corsby
“Zero defect philosophy
Quality is free”
14 principals on TQM
Additional Quality Planning tools

Genichi Taguchi
Quality must be desgined
And robust
A statistical method

Cost is more important than quality but quality is

the best way to reduce cost
Project management method
Role and responsibility in
managing quality

Standard monitoring & controlling

Deliverable measurement

Quality Management Plan

 Process Review

Major checkpoint

Inspection and acceptance criteria

Quality metrics and chekclist

Quality Management Plan

 Quality metrics
“Translating customer’s requirement to a
specific measurement”
 Quality metrics
Example:
•Number of customer satisfaction
•Number of defect
•Availability of good service

Quality metrics is input for

• Quality Assurance AND
• Quality Control

Quality checklist is input for

• Quality Control ONLY
Quality checklist

A list of items to inspect,

step to be performed and
note if any defects found
Example of quality checklist

functionality and features test

system outputs test
Performance test
Reliability test
Maintainability test
Manage Quality
process to ensure quality
standard will be met are
reviewed to make sure they
are effective or being
followed correctly
 Tools &
Inputs Techniques
1. Project 1. Data Gathering Outputs
Management 2. Data Analysis 1. Quality Reports
plan 3. Decisions Making 2. Test & Evaluation
4. Data Documents
2. Project Representation
3. Change Requests
Documents 5. Audits 4. Project Management
6. Design for
3. OPA experiment
Plan Updates
5. Project Documents
7. Problem Solving Updates
8. Quality
Improvement
Methods
What must we do
in quality audit?
“Check out the compliance of quality
action with company policies,
standards & procedures”
“Determine whether they are used efficiently &
effectively”
“Identify all the good practices
being implemented”
 “Identify all the
gaps/shortcomings”
“Look for new lesson learned
& good practices”
Control Quality
Measuring whether the product,
service or result are met the quality
of standard (correctness)
“Ensure customer acceptance”
 Inputs Tools & Outputs
1. Project
Techniques
1. Quality Control
Management Plan 1. Data Gathering Measurements
2. Project Documents 2. Data Analysis 2. Verified Deliverables
3. Approved Change 3. Inspection 3. Works Performance
Request 4. Testing/Product Informations
4. Deliverables Evaluation 4. Change Requests
5. Work Performance 5. Data 5. Project Management
Data Representation Plan Updates
6. Enterprise 6. Meetings 6. Project Document
Enviromental Updates
Factors
7. OPA
Chemical Bank mistakenly deducted about $15
million from more than 100,000 customer accounts.
“The problem resulted from
a single line of code in an
updated computer program
that caused the bank to
process every withdrawal
and transfer at its
automated teller machines
(ATMs) twice”.
 Reference
• Rita Mulcahy’s, PMP Exam
Prep Ninth Edition. 2018

• PMBOK Guide Sixth Edition. 2018.

BACKUP SLIDES
 Important Terms
• Mutual Exclusive: if two events cannot both occur in a single trial
• Probability: something will occur

• Normal Distribution: common probability density distribution chart

• Statistical independence: the probability of one event occurring does not affect the probability of
another event occurring

• Standard deviation (or Sigma): how far you are from the mean
• 3 or 6 sigma
– Represent the level of quality has decided to try to achieve
– 6σ is higher quality standard than 3σ
– Used to calculate the upper and lower control limits in a control chart

Number of σ
Percentage of occurrences
between two control limits
1 68.26%
2 95.64%
3 99.73%
6 99.99985%