Project Management Plan

Construction of Hospital

Asif Ali Lashari

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Table of Contents
Executive summary ......................................................................................................................... 4
Background ..................................................................................................................................... 4
Project Objective............................................................................................................................. 5
Project Management Plan Purpose ................................................................................................ 5
Project Deliverable .......................................................................................................................... 5
Project Milestones .......................................................................................................................... 5
Scope Form ................................................................................................................................. 6
Project Costing Management ......................................................................................................... 8
Project Time Management ............................................................................................................. 8
Description of the Project mapping tools ................................................................................... 8
Network Diagram ...................................................................................................................... 11
Probability Analysis ................................................................................................................... 12
Project Quality Management........................................................................................................ 19
Project Quality Tools ................................................................................................................. 20
Project Risk Management ............................................................................................................. 20
SWOT analysis ........................................................................................................................... 20
Major risks................................................................................................................................. 21
Project Communication Management ......................................................................................... 21
Project Procurement Management .............................................................................................. 22
Types of contract Use ............................................................................................................... 23
Standardized Procurement Documentation ............................................................................. 23
Procurement Constraints .......................................................................................................... 24
Contract Approval Process ........................................................................................................ 24
Decision Criteria ........................................................................................................................ 25
Vendor Management ................................................................................................................ 25
Performance Metrics for Procurement Activities..................................................................... 25
Monitoring and Control ................................................................................................................ 26
Project Closure Phase ................................................................................................................... 26

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 Confirm work is done as per the requirements ........................................................................ 26
Complete procurement closure ................................................................................................ 26
Gain formal acceptance ............................................................................................................ 26
Complete final performance reporting..................................................................................... 27
Index and archive records ......................................................................................................... 27
Update lessons learned ............................................................................................................ 27
Hand-off completed product .................................................................................................... 27
Release the resources ............................................................................................................... 27
Authorization ............................................................................................................................ 27

Table 1 Hospital Deliverables.......................................................................................................... 5

Table 2 Milestones .......................................................................................................................... 5
Table 3Key Cost ............................................................................................................................... 8
Table 4 Work Break Down Structure (WBS) ................................................................................. 10
Table 5 Network Diagram ............................................................................................................. 11
Table 6 Mean Time of Critical Path ............................................................................................... 12
Table 7 Quality Process ................................................................................................................. 19
Table 8 Swot Analysis .................................................................................................................... 20
Table 9 Major Risk......................................................................................................................... 21
Table 10 Project Communication Plan.......................................................................................... 21
Table 11 Performance Metrics for Procurement Activities .......................................................... 25

Figure 2 Gant chart (Early Start- Early Finish) ............................................................................... 15

Figure 3 Histogram (Early Start –Early Finish) .............................................................................. 15
Figure 4 Gant Chart (Late Start- Late Finish) ................................................................................ 16
Figure 5 Histogram (Late Start- Late Finish) ................................................................................. 17
Figure 6 Resource Smoothing Gant Chart .................................................................................... 17
Figure 7 Histogram (Resource Smoothing) ................................................................................... 18

Equation 1 Probability Analysis..................................................................................................... 12

Equation 2 Probability Analysis..................................................................................................... 13
Equation 3 Probability Analysis..................................................................................................... 13
Equation 4 Probability Analysis..................................................................................................... 14

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Executive summary

In a developing country the necessity of a proper health care is unparalleled. Adding to the

contribution of the general population’s health and wellbeing, hospitals are also important

contributors to the economy of the community where it serves. With a total of 50 + hospitals in

the D.G. Khan, of which most are private hospitals, it seems that the health situation in the city

is optimal. This however is not the case. As the state of hospitals and the services being

provided to the general public are not meeting the standards, so building a Multi-specialty

hospital in the vicinity of D.G. Khan and surrounding villages seems not only entirely relevant

but also necessary. The primary objective of the hospital will be to provide affordable and

quality health care to the masses and to uplift community’s health standards.

The report offers an inside view of the analysis of the project using project mapping tools such

as Network diagrams, Gantt charts, Histograms, and Probability analysis.

Background

Health problems in D.G. Khan roots back to the lack of balance in its development. It is
not a question of debate that the health situations in the rural parts of the D.G. Khan are worse
than that of its more developed counterparts. Although programs conducted in the rural areas
have been improving the conditions, it does not have any effect on the migrating population. At
present, D.G. Khan is facing a dire problem of population growth which is having a significant
impact on the health of the entirety of its inhabitants. Inhabitants of outer districts and zones
(mostly from the rural areas) who have relocated themselves in D.G. Khan find themselves
living in locations where facilities are inadequate- the reason being the inexpensive cost of
living in these locations. The idea is to build a multi-specialty hospital in the proposed location
to facilitate the residing population.

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Project Objective
To establish a multispecialty hospital that offers preventive and curative health care services.
The hospital will be 200-beded, modern and technologically advanced, offering a wide range of
medical, surgical and diagnostic services.
Project Management Plan Purpose
The goal of project planning is to better define the scope of work of a project in order to meet
both the owners' expectations and the project requirements in terms of budget, time, and
performance
Project Deliverable
Table 1 Hospital Deliverables
Sr
# General Organization Specialized Safety standards
Treatments, cares, Examination
1 Rooms Operation Theater Electrical installation
2 Administration Rooms Post Operation Unit Gas installation
3 Technical and storage zones Maternity unit Lightening
Treatment zone with
4 Waste water discharge Unit beds Sanitarian installation
5 Restaurant Radiology Sterilization zone
Storage locals for anesthesia
6 Park Surgical Unit rooms
7 Parking Medical Shop Ventilation

Project Milestones
Milestone Name
Planning and initiation
Approvals
Design and schedule
Contract document
Vendor solicitation
Signing of contract
agreement
Execution of construction
activities
Machinery and equipment
Installation
Closure of the project
Table 2 Milestones
Milestone Description
Planning and initiation
Obtain official approvals
Prepare construction designs, drawings, specifications and
schedules
Prepare contract document and bill of quantities
Solicitation of proposals from contractors and vendors
Evaluation of proposal and signing of contract agreement
Mobilization of civil contractors and execution of
construction activities
Supply, delivery and installation of machinery and
equipment
Supply, delivery and installation of furniture and fittings
Closure of the project

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 Scope Form
Project Title: Project Proposal Hospital Construction Project Number: 01

Project Leader/Manager: Asif Ali Anticipated Project Start Date: 1 July 2020

Sponsor: Government of Punjab Date Prepared: 01 January 2020

Team Members:
1. Asif Ali
2. Sania Nouman
3. Zubair Habib
Purpose of Project:
The goal of project planning is to better define the scope of work of a project in order to
meet both the owners' expectations and the project requirements in terms of budget, time,
and performance

Background:
Health problems in D.G. Khan roots back to the lack of balance in its development. It
is not a question of debate that the health situations in the rural parts of the D.G. Khan are
worse than that of its more developed counterparts. Although programs conducted in the
rural areas have been improving the conditions, it does not have any effect on the migrating
population. At present, D.G. Khan is facing a dire problem of population growth which is
having a significant impact on the health of the entirety of its inhabitants. Inhabitants of
outer districts and zones (mostly from the rural areas) who have relocated themselves in D.G.
Khan find themselves living in locations where facilities are inadequate- the reason being the
inexpensive cost of living in these locations. The idea is to build a multi-specialty hospital in
the proposed location to facilitate the residing population.
Responsibilities

Names / Roles Responsibilities

Overall responsibility for the successful initiation,
planning, design, execution, monitoring,
Project Manager controlling and closure of a project
Ensure the resources are in place, promote
Project Sponsor the project
Team leader is responsible for guiding a group of
Project Team Lead employees as they complete a project. They

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Project Team Members
are responsible for developing and implementing a
timeline their team will use to reach its end goal.
Team leaders ensure they reach their goals is by
delegating tasks to their members, including
themselves
Project team members' duties include
documenting current or potential processes by
identifying and mapping needs, providing advice in
an area of expertise, collaborating to achieve the
aims and goals of the project, or training others to
establish change

Deliverables:
Sr
# General Organization Specialized Safety standards
Treatments, cares,
1 Examination Rooms Operation Theater Electrical installation
2 Administration Rooms Post Operation Unit Gas installation
3 Technical and storage zones Maternity unit Lightening
Treatment zone
4 Waste water discharge Unit with beds Sanitarian installation
5 Hotel Radiology Sterilization zone
6 Park Surgical Unit Storage locals for anesthesia rooms
7 Parking Medical Shop Ventilation
Stakeholders:

Includes the owners and facility users, project management, team members, facilities
managers, designers, shareholders, public administration, workers, subcontractors, services
suppliers’ competitors, banks insurance companies, media, community.
Cost of the Project Total (in Rs.)
Land cost 25 Acre 110 Crore rupees
Construction Cost 217800 sq. feet (5 Acre) 185 Crore rupees
Machinery & Equipment 150 Crore rupees
Furnishing 35 Crore rupees
Vehicle (5 ambulance and others) 5 Crore rupees
Contingencies -5% construction cost 5 Crore rupees
Recruitment 8 Crore rupees
Advertising 2 Crore rupees
Total Cost 500 Crore rupees

Operations & Support: Government of the Punjab is the owner of the hospital and is
responsible to maintains

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 Risk type Risk response
Shortage of Contracts to be finalized well ahead of time
time
Quality Maintenance of strict selection criteria in choosing subcontractors,
assurance Setting of penalties for violation of agreements, Purchase of Branded
materials

Weather Keep check the weather forecasts and the tools for water proofing
Natural disaster Insurance
Labor dispute Plan out scenarios with concerned committee for timely action
Market Inflation Contract and agreements with suppliers and or backups in place
Approvals:
Requested by:
____________________________________________________________________________
Printed name, Signature, Date

Approved by:

Project Costing Management

Table 3Key Cost
Cost of the Project Total (in Rs.)
Land cost 25 Acre 110 Crore rupees
Construction Cost 217800 sq. feet (5 Acre) 185 Crore rupees
Machinery & Equipment 150 Crore rupees
Furnishing 35 Crore rupees
Vehicle (5 ambulance and others) 5 Crore rupees
Contingencies -5% construction cost 5 Crore rupees
Recruitments 8 Crore rupees
Advertising 2 Crore rupees
Total Cost 500 Crore rupees

Project Time Management

Description of the Project mapping tools
The network diagram is constructed by dividing the entire projects into 10 tasks- Namely-

Activity Code Predecessor Personnel

Planning and initiation A - 12
Obtain official approvals B - 10

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 Prepare construction designs, drawings, specifications and C A, B 13
schedules
Prepare contract document and bill of quantities D C 8
Solicitation of proposals from contractors and vendors E D 9
Evaluation of proposal and signing of contract agreement F E 8
Mobilization of civil contractors and execution of construction G F 35
activities
Supply, delivery and installation of machinery and equipment H G 8
Supply, delivery and installation of furniture and fittings I G 9
Closure of the project J H, I 12

A further understanding can be gained through the Work Breakdown Structure below

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 Hospital Construction
1. Planning & 2. Obtain 3. Prepare 4. Prepare 5. Solicitation 6. Evaluation 7. Mobilization 8. Supply, Delivery 9. Supply, 10. Closure of
Initiating Official construction contract of proposals of proposal of civil and installation of Delivery and the project
Approval design, drawings, document and from and signing contractors and machinery installation of
specifications and bill of contractors of contract execution of equipment furniture and
schedules Quantities and vendors agreement construction fittings
activities
1.1 Company 2.1 Receive 3.1 Design and 8.1 Installation 9.1 Installation 10.1 Project
Registration approvals for drawings Audit
construction
1.2 Feasibility 2.2 Receive 3.2 Specification/ 10.2
Study approvals Scheduling Preparation of
from Medical project report
Council
1.3 Preparation 10.3 Handing
of cost estimate over the
and budget project
1.4 Land
Procurement
Table 4 Work Break Down Structure (WBS)

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The network diagram on node is constructed using the value in the table. Along with the
duration of each task, the table also entails the early start and finish, late start and finish times,
standard deviation, variance, optimistic and pessimistic durations.

The relevant data are also used in the calculation of probability. It has been found that the
probability of completion in case of crashing the project in 25 months is only 12.51%, whereas
extending the project up to 29 months allows for an 87.49% chance of completion. It has also
been found that meeting the targeted project completion time of 25 months has a probability
of 50%. Further there exists a probability of 99% if the project is extended up to 31 months.

Gantt charts and histograms using both early start- early finish times and late start- late finish
times are constructed and furthermore Gantt chart and Histogram are also used for the
purpose of resource smoothing. The resource smoothing is the result of their existing only two
tasks- B and I outside the critical path. The duration of the two tasks are used to minimize the
use of resources during the task B and I. It can be seen that while there are 10 units of
resources used in the task B in the early start and late start Gantt charts, there are only 5 units
of resources used in the resource smoothing Gantt chart for task B. This has been accomplished
by using the entirety of the duration of the task and using 5 units of resources in each day.
Similar is the case for task- I.

Network Diagram
Table 5 Network Diagram
Project Duration= 27 Months

Critical Path = A, C, D, E, F, G, H, J

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Table 6 Mean Time of Critical Path
Code Predecessors TO TL TP TE S.D Variance ES EF LS LF Total
(σ) (σ2) Float
A - 0 2 4 2 0.67 0.4489 0 2 0 2 0
B - 1 1 1 1 0 0 0 1 1 2 1
C A, B 0 2 4 2 0.67 0.4489 2 4 2 4 0
D C 2 3 4 3 0.33 0.1089 4 7 4 7 0
E D 0 2 4 2 0.67 0.4489 7 9 7 9 0
F E 1 1 1 1 0 0 9 10 9 10 0
G F 6 9 12 9 1 1 10 19 10 19 0
H G 4 6 8 6 0.67 0.4489 19 25 19 25 0
I G 2 4 6 4 0.67 0.4489 19 23 21 25 2
J H, I 1 2 3 2 0.33 0.1089 25 27 25 27 0

Mean time of critical path: 27 months

Combined standard deviation of critical path(T) =(A2+C2+D2+E2+F2+G2+H2+J2)
=(0.4489+0.4489+0.1089+0.4489+0+1+0.4489+0.1089)
=3.0134
=1.73

Probability Analysis

Completed within 25 months

Equation 1 Probability Analysis
When X: 25 months
We have, Z: (X-)/T
= (25-27)/1.73
= -1.15
Now,
P<X25 = P(Z-1.15)
= P(z0)-P (0 Z  -1.15)
= 0.5-0.3749
= 0.1251
= 12.51%

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The probability of completing the project in 25 months is 12.51%.
Completed within 29 months
Equation 2 Probability Analysis
When X= 29 months
We have, Z: (X-)/T
= (29-27)/1.73
= 1.15
Now,
P<X29) = P(Z1.15)
= P(z0) +P (0 Z  1.15)
= 0.5+0.3749
= 0.8749
= 87.49%
Hence, the probability of completing the project in 29 months is 87.49%.

Meeting 27-month completion

Equation 3 Probability Analysis
When X= 27 months
We have, Z: (X-)/T
= (27-27)/1.73
=0
Now,
=P<X27) = P(Z0)
=P(z0) +P (0 Z  0)
=0.5+0
=50%
Hence, the probability of completion of the project in 27 months is 50%.

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Interval in which there is only 1% change of being exceeding
Equation 4 Probability Analysis
We have, Z: (X-)/T
99% = (X-27)/1.73
2.33 = (X-27)/1.73
X-27 = 2.331.73
X-27 = 4.0309
X = 27+4.0309
X = 31.0309

X = 31 months
Hence, the probability of completing 99% of project is 31 months.

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 Gant chart (Early Start- Early Finish)
Figure 1 Gant chart (Early Start- Early Finish)

Histogram (Early Start –Early Finish)

Figure 2 Histogram (Early Start –Early Finish)
Number of Personnel

Duration in Months

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Gant Chart (Late Start- Late Finish)
Figure 3 Gant Chart (Late Start- Late Finish)

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 Histogram (Late Start- Late Finish)
Number of Personnel

Figure 4 Histogram (Late Start- Late Finish)

Duration in Months

Resource Smoothing Gant Chart

Figure 5 Resource Smoothing Gant Chart

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 Histogram (Resource Smoothing)
Figure 6 Histogram (Resource Smoothing)
Number of Personnel

Duration in Months

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Project Quality Management
The Quality Management System defines and identifies the Policies, Plans, Procedures and
templates used to ensure a consistent product output to the same exceptionally high standard
every time undertakes an activity, which in this case a Major Government Project. This plan is a
steering statement of intent used to identify the tools and resources required to comply with
and exceed customer expectations.

Table 7 Quality Process

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Project Quality Tools

Some of the most important and most commonly used quality tools are:

1. Plan–Do–Check–Act Cycle
2. Fishbone Diagram
3. Pareto Chart
4. Scatter Diagram
5. Decision Matrix
6. Flowchart
7. Stratification
8. Control Chart
9. Histogram
10. Brainstorming
11. Tree Diagram

Project Risk Management

Benefits and Dis-benefits:

There are more than a few benefits and dis-benefits that have to be taken into consideration
during and after the construction of the hospital. Not all the dis-benefits can be averted but if
kept in check it can be dealt with and will not cause much difficulty. Considering the constraints
that the project is stacked against, it might face challenges related to costs, working conditions,
supervision etcetera. However, the project also has a variety of benefits that deserves a
mention. A breakdown of the benefits and dis-benefits along with the opportunities and threats
are given in the SWOT analysis below.

SWOT analysis
Table 8 Swot Analysis
Strengths
• Highly skilled professionals
• Use of advanced equipment’s and
technology
• Committed management team
• High employee benefits
Opportunities
• The only hospital in the location
• Good opportunity for growth
• Economic outlook
• Publicity and recognition of the entire
project and the Greenhill city area
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Weaknesses
• Outsourcing (dependency on
contractors and suppliers)
• Location (Distance from suppliers
relatively greater and route suffers
from poor traffic conditions)
Threats
• Time shortage
• Weather effects
• Material price uncertainty
• Labor uncertainty
Major risks

The following risk factors might act as constraints for the project if the mentioned responses
are not realized. (Probability and impact are rated on a scale of 1-5, 5 being the highest)

Risk type Probability Impact Risk response

Shortage of time 4 5 Contracts to be finalized well ahead of time
Quality 3 5 Maintenance of strict selection criteria in
assurance choosing subcontractors,
Setting of penalties for violation of agreements,
Purchase of Branded materials

Weather 3 3 Keep check the weather forecasts and the tools

for water proofing
Natural disaster 1 5 Insurance
Labor dispute 2 2 Plan out scenarios with concerned committee for
timely action
Market Inflation 2 4 Contract and agreements with suppliers and or
backups in place
Table 9 Major Risk

Project Communication Management

A project communication plan is a simple tool that enables you to communicate effectively on
a project with your client, team, and other stakeholders. It sets clear guidelines for how
information will be shared, as well as who's responsible for and needs to be looped in on
each project communication.
Here is project communication plan give below.

Table 10 Project Communication Plan

Project Communication
Communication Communication Frequency of Responsible
Stakeholder Notes
Methods Type Communication Person
Both team &
Project Kick off Start of the Client kick off
Meeting/Paper PMO
meeting project meeting
recommended
Key
Stakeholders
Included
Project
Electronic
Extranet Ongoing PMO schedule,
documents
deliverables,
Change

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 Request log,
issue log

Review Status,
Milestone
Executive Monthly (1st
Client Account met, earned
Steering Meeting/Paper Wednesday of
Executive
Committee
Manager value
Each Month)
indicators, Key
issues
Review
project status,
Electronic Weekly Friday schedule
Client Status Meeting Project
documents
Sponsor Report
(Email) 2pm Manager change
request,
issues
Provide input
for
Development Weekly Friday Project
Status Meeting Meeting/Paper subsequent
Team 11pm Manager
meeting with
client sponsor
Client Electronic After every 2
News Letter PMO
Manager documents weeks on Friday
Account Informal
Client Monthly/End of (Monthly)
Manager&
Sponsor/Key Client Survey Physical Survey
Stakeholders each Phase Project Formal (End
Manager of each phase)

Project Procurement Management

The purpose of the Procurement Management Plan is to define the procurement requirements
for the project and how it will be managed from developing procurement documentation
through contract closure. The Procurement Management Plan defines the following:
• Items to be procured with justification statements and timelines
• Type of contract to be used
• Risks associated with procurement management
• How procurement risks will be mitigated through contract performance metrics,
insurance, or other means
• Determining costs and if/how they’re used as evaluation criteria
• Any standardized procurement templates or documents to be used
• How multiple suppliers will be managed if applicable
• Contract approval process
• Decision criteria
• Establishing contract deliverables and deadlines

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 • How procurement and contracts are coordinated with project scope, budget, and
schedule
• Any constraints pertaining to procurement
• Direction to sellers on baseline requirements such as contract schedules and work
breakdown structures (WBSs)
• Vendor Management
• Identification of any prequalified sellers if applicable
• Performance metrics for procurement activities

Types of contract Use

All items and services to be procured for this project will be solicited under firm-fixed price
contracts. The project team will work with the contracts and purchasing department to define
the item types, quantities, services and required delivery dates. The contracts and purchasing
department will then solicit bids from various vendors in order to procure the items within the
required time frame and at a reasonable cost under the firm fixed price contract once the
vendor is selected. This contract will be awarded with one base year and three option years.

Standardized Procurement Documentation

We will use standard documentation for all steps of the procurement management process.
These standard documents have been developed and revised over a period of many years in an
effort to continually improve procurement efforts. They provide adequate levels of detail
which allows for easier comparison of proposals, more accurate pricing, more detailed
responses, and more effective management of contracts and vendors.
The PMO maintains a repository on the company’s shared drive which contains standard
project management and procurement documentation that will be used for this project. The
following standard documents will be used for project procurement activities:

• Standard Request for Proposal Template to include

- Background
- Proposal process and timelines
- Proposal guidelines
- Proposal formats and media
- Source selection criteria
- Pricing forms
- Statement of work
- Terms and Conditions
• Internal source selection evaluation forms
• Non-disclosure agreement
• Letter of intent
• Firm fixed price contract
• Procurement audit form
• Procurement performance evaluation form
• Lessons learned form

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Procurement Constraints
There are several constraints that must be considered as part of the project’s procurement
management plan.

These constraints will be included in the RFP and communicated to all vendors in order to
determine their ability to operate within these constraints. These constraints apply to several
areas which include schedule, cost, scope, resources, and technology:

Schedule:
• Project schedule is not flexible and the procurement activities, contract administration, and
contract fulfillment must be completed within the established project schedule. All
procurement activities and contract awards must support the approved project scope
statement. Any procurement activities or contract awards which specify work which is not
in direct support of the project’s scope statement will be considered out of scope and
disapproved.

Cost:
• Project budget has contingency and management reserves built in; however, these reserves
may not be applied to procurement activities. Reserves are only to be used in the event of
an approved change in project scope or at management’s discretion.

Resources:
• All procurement activities must be performed and managed with current personnel. No
additional personnel will be hired or re-allocated to support the procurement activities on
this project.

Technology:
• Parts specifications have already been determined and will be included in the statement of
work as part of the RFP. While proposals may include suggested alternative material or
manufacturing processes, parts specifications must match those provided in the statement
of work exactly.
Contract Approval Process
The first step in the contract approval process is to determine what items or services will
require procurement from outside vendors. This will be determined by conducting a cost
analysis on products or services which can be provided internally and compared with purchase
prices from vendors. Once cost analyses are complete and the list of items and services to be
procured externally is finalized, the purchasing and contracts department will send out
solicitations to outside vendors. Once solicitations are complete and proposals have been
received by all vendors the approval process begins. The first step of this process is to conduct
a review of all vendor proposals to determine which meet the criteria established by the project
team and the purchasing and contracts department. For these larger purchases the contract
review board will meet to determine which contract will be accepted. The Contract Review

24
 Board consists of representatives from the project team, purchasing and contracts department,
finance, and the PMO
Decision Criteria
The criteria for the selection and award of procurement contracts under this project will be
based on the following decision criteria:
- Ability of the vendor to provide all items by the required delivery date
- Quality
- Cost
- Expected delivery date
- Comparison of outsourced cost versus in-sourcing
- Past performance

These criteria will be measured by the contracts review board and/or the Project Manager. The
ultimate decision will be made based on these criteria as well as available resources.

Vendor Management

The Project Manager is ultimately responsible for managing vendors. In order to ensure the
timely delivery and high quality of products from vendors the Project Manager, or his/her
designee will meet weekly with the contract and purchasing department and each vendor to
discuss the progress for each procured item. The purpose of these meetings will be to review all
documented specifications for each product as well as to review the quality test findings. This
forum will provide an opportunity to review each item’s development or the service provided in
order to ensure it complies with the requirements established in the project specifications. It
also serves as an opportunity to ask questions or modify contracts or requirements ahead of
time in order to prevent delays in delivery and schedule. The Project Manager will be
responsible for scheduling this meeting on a weekly basis until all items are delivered and are
determined to be acceptable.

Performance Metrics for Procurement Activities

While the purchasing and contracts department has their own internal metrics for
procurement, the following metrics are established for vendor performance for this project’s
procurement activities. Each metric is rated on a 1-3 scale as indicated below:

Vendor Product On Documentation Development Development Cost Transactional

Quality Time Quality Costs Time per Efficiency
Delivery Unit
Vendor
#1
Vendor
#2
Table 11 Performance Metrics for Procurement Activities

1 – Unsatisfactory
25
2 – Acceptable
3 – Exceptional

In addition to rating each vendor, actual values will be noted in order to build a past-
performance data base for selecting vendors for future procurement activities.

Monitoring and Control

Monitoring and Controlling Project Work involves tracking the actual project performance with
the planned project management activities. It can mainly be looked as a Control function that
takes place at all stages of a project

Some of the outputs of the Monitor and Control Project Work include:
• Change Requests (including CAPA and defect repairs, CAPA – Correct and Preventive
Actions)
• Updates to the project management plan
• Updates to project documents

Project Closure Phase

A project is a temporary endeavor, so it has a beginning and also an end. We have seen the
phases of the project life cycle, called the ‘groups. During the last phase of the project life cycle,
meaning the project closure, everything should be detailed in order to measure if the project
went as planned and if the outcome is done as required by the customer.

We should consider some closing process group activities Now let’s review them one-by-one

Confirm work is done as per the requirements

Once the project is closing, all deliverables of the project must have been completed and
delivered to the customer. We should also take formal acceptance of the customer for the
completed work.

Complete procurement closure

We should complete any remaining payments that need to be made to the suppliers or
partners. The procurement steps are also completed.

Gain formal acceptance

Formal acceptance of the project and project deliverables are taken from the customer. The
customer presents a written document, it can be an email /a signed off document, which states
that the project has been completed and they accept the outputs of the project.

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Complete final performance reporting
The final performance of the project is calculated and recorded. These include cost
performance, schedule performance, quality performance.

Index and archive records

Collected documents are finalized. Final versions of the project management plan and all
necessary documents about the project are archived in the company records.

Update lessons learned

Lessons learned is collected and gathered from all stakeholders. Lessons learned
documentation is stored in the organizational process assets of the company.

Hand-off completed product

The product of the project is handed over for the use of the end customer. The handover may
need a predetermined period of assistance or some documents describing how to use or how
to operate with the product.

Release the resources

After the project is completed successfully, all assignments of the project resources are closed,
lessons learned inputs from the project resources are collected and then these resources are
released respectively.

Authorization
Approved by the Project Sponsor:

__________________________________________ Date: ___________________

[Project Sponsor]
[Project Sponsor Title], [Project Sponsor Organization or Division]

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