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A Framework for

Project Management
The Project Management Institute
Education Department
Second Part.
A Balancing Project constraints

Time Cost

Scope

Quality

2
3
4
5
6
7
Project Integration
Management is one of the most
important aspects of project
management.

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Project integration management

Project integration management ensures to connect all the dots of


processes in a structured manner irrespective of the variation in
methodologies to successfully complete the project.

Project Integration Management involves a collaborative system


between all the elements of project management such as,

• Schedule
• Cost
• Scope
• Quality
• Resources
• Risks
• Changes
• Stakeholders

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Integrated project management
Integrated project management refers to the interconnected and collaborative
approach to executing the project with effective coordination.

Project integration management is one of the 10 knowledge areas of project


management. This knowledge area runs throughout the 5 phases of project
management.

▪ Initiating
▪ Planning
▪ Executing
▪ Monitoring and controlling
▪ Closing

The main objective of project management is the coordination within all the
stakeholders of the project to ensure the team is working in the right direction to
reach the same goal.

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Project Stakeholders and Governance

Project governance is an oversight function that is aligned with the


organization’s governance model and that encompasses the project
life cycle.
Project governance framework provides the project manager and
team with
1. structure,
2. processes,
3. decision-making models and
4. tools for managing the project,
while supporting and controlling the project for successful delivery

The project governance approach should be described in the project


management plan.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 11


Stakeholders

◼ A stakeholder is an individual, group, or


organization who may affect, be affected by, or
perceive itself to be affected by a decision, activity,
or outcome of a project.
◼ Stakeholders may be actively involved in the
project or have interests that may be positively or
negatively affected by the performance or
completion of the project.
◼ Different stakeholders may have competing
expectations that might create conflicts within the
project.
◼ Stakeholders may also exert influence over the
project, its deliverables, and the project team in
order to achieve a set of outcomes that satisfy
strategic business objectives or other needs.
Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 12
Project Stakeholders and Governance

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Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 16
Processes and Procedures

• Initiating and Planning:


○ Guidelines and criteria for tailoring the organization’s set of standard
processes and procedures to satisfy the specific needs of the project;

○ Specific organizational standards such as policies (e.g., human


resources policies, health and safety policies, ethics policies, and project
management policies), product and project life cycles, and quality policies
and procedures (e.g., process audits, improvement targets, checklists,
and standardized process definitions for use in the organization); and

○ Templates (e.g., risk register, work breakdown structure, project


schedule network diagram, and contract templates).

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 17


Process Groups

Initiating Planning
Processes Processes

Executing
Controlling
Processes
Processes

Closing
Processes

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 18


Unit 3: Initiating Projects
Upon completion, you will be able to …

◼ List the main functions of each PM process group


◼ Describe the purpose of the initiation process
◼ Identify its inputs and outputs, tools and techniques
◼ Develop a sample project charter
◼ Give an example of how process groups can apply to the project as a
whole or to a project phase

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 19


Purpose of Initiation Process

1. To commit the organization to a project or phase


2. To set the overall solution direction
3. To define top-level project objectives
4. To secure the necessary approvals and resources
5. Validate alignment with strategic objectives
6. To assign a project manager

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Process Definition

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Process Definition

◼ “A series of actions people take to bring about a desired result.”


◼ Types of processes
◼ Project management processes
◼ Product-oriented processes

◼ Business-oriented processes

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 24


Organizational Process Assets

◼ Organizational process assets are

• The plans, processes,


• Policies, procedures, and
• Knowledge bases

Specific to and used by the performing organization.


They include any artifact, practice, or knowledge from any or all of the
organizations involved in the project that can be used to perform or govern
the project

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 25


Process Group Overview

Initiating Processes
To the
Planning
5.1 Processes
Initiation (Figure 3–5)

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 26


Purpose of Initiation Process

1. To commit the organization to a project or phase


2. To set the overall solution direction
3. To define top-level project objectives
4. To secure the necessary approvals and resources
5. Validate alignment with strategic objectives
6. To assign a project manager

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 27


Initiating Core Process—Initiation

Input Process Output


1. Product description “Initiation is the process of 1. Project charter
2. Strategic plan formally recognizing that a new 2. Project manager identified/
3. Project selection criteria project exists or that an existing assigned
project should continue into its 3. Constraints
4. Historical information
next phase.”
4. Assumptions

Tools and Techniques


1. Project selection methods
2. Expert judgment

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 28


Project Charter

“A document issued by senior management that


provides the project manager with the authority to apply
organizational resources to project activities.”

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 29


Project Charter Content

◼ Business need
◼ Project objectives
◼ Project deliverables
◼ Assumptions
◼ Constraints
◼ Key staff
◼ Written authorization

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 30


Exercise 3-1
Project Charter

◼ Using the handout, complete the sample project charter


◼ Assume you are the project manager
◼ As an example, choose an anticipated major project assignment

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 31


Sample Initiating Activities

◼ Negotiate, write, and refine the project charter


◼ Confirm how the project links to the business need
◼ Identify management responsibilities
◼ Identify geographic locations involved
◼ Test top-level objectives versus strategic business plans
◼ Make strategic procurement decisions, e.g., make, buy, or identify
qualified vendors

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 32


Key Outputs of Initiation Process

◼ Project charter
◼ Project manager identified/assigned
◼ Other key positions identified/assigned
◼ Constraints identified
◼ Assumptions identified

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 33


Stakeholders

◼ A stakeholder is an individual, group, or


organization who may affect, be affected by, or
perceive itself to be affected by a decision, activity,
or outcome of a project.
◼ Stakeholders may be actively involved in the
project or have interests that may be positively or
negatively affected by the performance or
completion of the project.
◼ Different stakeholders may have competing
expectations that might create conflicts within the
project.
◼ Stakeholders may also exert influence over the
project, its deliverables, and the project team in
order to achieve a set of outcomes that satisfy
strategic business objectives or other needs.
Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 34
STAKEHOLDER ANALYSIS

The Stakeholder Concept

Stakeholders can be defined as all parties who affect or are affected by the
project. They can be individuals, groups, a community or an institution – all
those with an interest in an organisation and its activities.
Stakeholder Participation
Stakeholder participation is essential to development projects. Stakeholder
participation is intended to improve project:
􀂃 Effectiveness
􀂃 Efficiency
􀂃 Sustainability
􀂃 Transparency
􀂃 Accountability

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Stakeholder - definition

A stakeholder is, for our purposes at the


moment, “a person or organisation who is
affected by or impacted by what you are
‫ إنشاءهللا كلو خير وبركة‬,‫رمضان مبروك للجميع‬
trying to do”
• This may of course be negatively as
well as positively!
• It includes the members of the Project Team and the
Customer(s)
Stakeholders
4 things to do with them

◼ List them
◼ Try to understand their likely perspective - how might they react to the
project?
◼ Assess their relative importance
◼ Act appropriately with the stakeholder throughout the project – identify
and decide what action you may need to take
Stakeholders

◼ In the next session we will look at stakeholders in more detail – and


compare stakeholders with audiences

◼ Taking account of them and their views is important to the success of


your project.
One version of the stakeholder
analysis

Stakeholder analysis
Priority Stakeholder Stakeholder's Action
H/M/L
Perspective
The tools of & for project
management
• There are numerous tools which can be for
managing projects, some of them complex,
some of them simple.
• We will look at some tried and tested tools
and techniques which can be used for
effective project management.
Our tools for today
• QUAD Chart analysis
• The QUAD chart is a very simple yet
extremely effective tool. Project scoping –
enables you to define what you do before
you start.
• Stakeholder analysis – simple version helps
you understand and manage the different
relationships that matter to the project.
The QUAD chart
• A very simple yet powerful tool.

• Used to help us clarify exactly what our


project is all about.
Quad Chart
TITLE

PURPOSE CUSTOMERS
(AIMS/OBJECTIVES) (STAKEHOLDERS)

DESIRED END RESULT MEASURES OF SUCCESS


(CRITICAL SUCCESS FACTORS) (STANDARDS / CRITERIA)
Where Have We Been?
TITLE

PURPOSE CUSTOMERS
(AIMS/OBJECTIVES) (STAKEHOLDERS)

DESIRED END RESULT MEASURES OF SUCCESS


(CRITICAL SUCCESS FACTORS) (STANDARDS / CRITERIA)
Were might we go ?
TITLE

PURPOSE CUSTOMERS
(AIMS/OBJECTIVES) (STAKEHOLDERS)

VALUES

WHAT IS THE
MOTIVATION?
CRITICAL SUCCESS FACTORS MEASURES OF SUCCESS
(NOT JUST DESIRED END RESULT) (STANDARDS / CRITERIA)
PASSION ETHICS

SECONDARY BENEFITS
(UNMEASURABLE)
What Does This Give Us?
• The beginnings of a project definition

• A document to confirm that what we (as


Project Manager) see the project as, is what
the Line Manager/Customer was thinking
of.
• Remember we have NOT started ‘doing’
the project yet. We are still planning it.
Your homework self-study
• Produce your own QUAD chart, either for a
project which you are going to do, or for a project
which you have completed in the past, or for a
project which you are currently working on.
Produce a list of assumptions.
• Once you have done it leave it for 2 days and then
review it; and amend it. Save a copy. Keep on re-
refining it. Developing a good project definition
using the QUAD chart is an iterative process
which requires thinking time.
• Also have a go at doing a simple stakeholder
analysis grid
QUIZ

QUICK QUIZ
1. Approximately what percentage of the world’s gross domestic product is
spent on projects?
A. 10%
B. 25%
C. 50%
D. 75%
2. Which of the following is not a potential advantage of using good project
management?
A. Shorter development times
B. Higher worker morale
C. Lower cost of capital
D. Higher profit margins

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 50


3 A _______________ is a temporary endeavor undertaken to create a unique
product, service, or result.
A. program
B. process
C. project
D. portfolio

4. Which of the following is not an attribute of a project?


A. projects are unique
B. projects are developed using progressive elaboration
C. projects have a primary customer or sponsor
D. projects involve no uncertainty

5. Which of the following is not part of the triple constraint of project management?
A. meeting scope goals
B. meeting time goals
C. meeting communications goals
D. meeting cost goals
Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 51
6. _______________ is the application of knowledge, skills, tools and techniques
to project activities to meet project requirements.
A. Project management
B. Program management
C. Project portfolio management
D. Requirements management

7. Project portfolio management addresses _______________ goals of an


organization, while project management addresses _______________ goals.
A. strategic, tactical
B. tactical, strategic
C. internal, external
D. external, internal

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 52


8. Several individual housing projects done in the same area by the same firm might
best be managed as part of a _______________.
A. portfolio
B. program
C. investment
D. collaborative
9. What is the most significant characteristic or attribute of an effective project
manager?
A. is a strong communicator
B. is decisive
C. is visionary
D. leads by example
10. What is the certification program called that the Project Management Institute
provides?
A. Microsoft Certified Project Manager (MCPM)
B. Project Management Professional (PMP)
C. Project Management Expert (PME)
Copyright © 1999 Project Management Institute, Inc. All RightsD. Project Management Mentor (PMM)
Reserved. 53
Quick Quiz Anwers
1.B, 2. C 3. C, 4. D, 5. C, 6. A, 7. A, 8. B, 9. D, 10. B

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 54


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PMBOK5 vs PMBOK6

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Manage project Knowledge?

The Manage Project Knowledge process has primarily two purposes:

1. Reusing existing knowledge and


2. Creating new knowledge.

Knowledge captured in the past is used to improve performance on the


current project, and the knowledge created by the current project is made
available to future projects.

Efficiency and sustainability

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PMBOK5 vs PMBOK6

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PMBOK5 vs PMBOK6

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PMBOK5 vs PMBOK6

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PMBOK5 vs PMBOK6

This process ensures the availability of planned physical resources,


monitoring them against the plan, and taking corrective actions when
required. By doing this, the right resources are available to the project at
the right time and place and released when no longer required.

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PMBOK5 vs PMBOK6

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PMBOK5 vs PMBOK6

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PMBOK5 vs PMBOK6

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PMBOK5 vs PMBOK6

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Planning Process Group

Initiating Planning
Processes Processes

Executing
Controlling
Processes
Processes

Closing
Processes

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 67


Planning Processes

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Purpose of Planning Processes

To develop a project plan that:


◼ Facilitates later accomplishment*
◼ Ensures project wide integration
◼ Monitors change effectively
◼ Provides decision support information to stakeholders
◼ Can be updated by iterative planning activities

* Project Management—A Managerial Approach, 1995, by Jack R. Meredith and Samuel J. Mantel Jr.

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71
Core Processes

5.2 6.2
Scope Activity
Planning 6.1 Sequencing 6.4
Activity Schedule
Definition Development

6.3
5.3 Activity 7.3
Scope Duration Cost
Definition Estimating Budgeting
7.1
Resource
Planning 7.2
Cost
From the Estimating 4.1
Initiating Project Plan
Development To the
Processes Executing
(Figure 3–4) Processes
(Figure 3–6)

From the Facilitating Processes


Controlling
Processes
(Figure 3–7)
8.1 10.1 11.1 11.2 11.3
Quality Communications Risk Risk Risk Response
Planning Planning Identification Quantification Development

9.1 9.2 12.1 12.2


Organizational Staff Procurement Solicitation
Planning Acquisition Planning Planning

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 72


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Project Scope Statement Purpose

◼ To provide a general description of the sum of the products and services


to be provided by the project
◼ To develop a common understanding of project scope among
stakeholders
◼ May make explicit some exclusions that, based on the audience, would
be assumed to be part of the project

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 75


Project Scope Statement Purpose

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 76


Scope Statement

◼ The preparation of a detailed project scope statement is critical to project


success and builds upon the major deliverables, assumptions, and
constraints that are documented during project initiation. During project
planning, the project scope is defined and described with greater
specificity as more information about the project is known.
◼ Existing risks, assumptions, and constraints are analyzed for
completeness and added or updated as necessary.
◼ The Define Scope process can be highly iterative. In iterative life cycle
projects, a high-level vision will be developed for the overall project, but
the detailed scope is determined one iteration at a time and the detailed
planning for the next iteration is carried out as work progresses on the
current project scope and deliverables.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 77


Core Planning Processes
Scope Definition

Input Process Output


1. Scope statement “… subdividing the major project 1. Work breakdown structure
2. Constraints deliverables (as identified in the
3. Assumptions scope statement) into smaller
more manageable components
4. Other planning outputs
…”
5. Historical information

Tools and Techniques


1. Work breakdown structure
templates
2. Decomposition

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 78


Work Breakdown Structure (WBS)

◼ “A deliverable oriented grouping of project elements which organizes


and defines the total scope of the project.
◼ Each descending level represents an increasingly detailed definition of a
project component.
◼ Project components may be products or services.”

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 79


Work Breakdown Structure (WBS)

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 80


WBS Purpose

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 82


Aircraft
System

Project Air Support Test and


Training Data Facilities
Management Vehicle Equipment Evaluation

Systems Technical Organizational


Engineering Equipment Construction Mock-ups
Orders Level
Management

Supporting Engineering Intermediate Operational


PM Activities Facilities Data Level Maintenance Test

Management Depot Developmental


Services Data Level Test

Test

Airframe Engine Communication Navigation Fire Control

This WBS is illustrative only. It is not intended to represent the full project scope of any specific
project, nor to imply that this is the only way to organize a WBS on this type of project.

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Waste Water
Treatment Plant

Earlier Later
Phases Design Construction Phases

Project Management Project Management

Civil Drawings Headworks

Architectural Drawings Aeration Basin

Structural Drawings Effluent Pumping Station

Mechanical Drawings Air Handling Building

HVACDrawings Sludge Building

Plumbing Drawings

Instrumentation Drawings

Electrical Drawings

This WBSis illustrative only. It is not intended to represent the full project scope of any specific
project, nor to imply that this is the only way to organize a WBSon this type of project.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 84


Validate Your WBS

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 85


Validate Your WBS

◼ All major elements been identified at top level?


◼ Decomposed into measurable components?
◼ Lower level(s) items necessary? All inclusive?
◼ Would stakeholders agree WBS is satisfactory?
◼ Can elements be scheduled, budgeted, and assigned to a unit that will
accept responsibility?
◼ Too much or too little visibility and control ?
◼ Can status reports be generated at all levels?

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 86


Using the WBS to Estimate Cost

◼ Project manager establishes work requirements by defining the


◼ What—“shalls” and “wills”
◼ When—sequence
◼ Why—dependencies

◼ Functional managers estimate cost by determining


◼ How—equipment and methods
◼ Who—type and level of expertise
◼ Where—location, department

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 87


Core Planning Processes
Activity Definition

Input Process Output


1. WBS “Identifying the specific 1. Activity list
2. Scope statement activities that must be 2. Supporting detail
3. Historical information performed to produce the 3. WBS updates
various project deliverables.”
4. Constraints
5. Assumptions

Tools and Techniques


1. Decomposition
2. Templates

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 89


Core Planning Processes
Activity Sequencing

Input Process Output


1. Activity list “… identifying and 1. Project network
2. Product description documenting interactivity 2. Activity list updates
3. External dependencies dependencies.”
4. Mandatory dependencies
5. Discretionary dependencies
6. Constraints
7. Assumptions

Tools and Techniques


1. Precedence diagramming
method
2. Arrow diagramming method
3. Conditional diagramming
method
4. Network templates

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 90


Core Planning Processes
Activity Sequencing

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Precedence Diagramming Method
PDM or AON

A B C

Start Finish

D E F

The precedence diagram method (PDM) is a


tool for scheduling activities in a project plan

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 92


PDM representation

It is a method of constructing a project schedule


network diagram that uses boxes, referred to as
nodes, to represent activities and connects them
with arrows that show the dependencies. It is
also called the activity-on-node (AON) method

Critical tasks, noncritical tasks, and slack time


Shows the relationship of the tasks to each other
Allows for what-if, worst-case, best-case and most likely scenario

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 93


PDM Exercise

Draw a PDM diagram for this list of nodes:

NODE NAME PREDECESSOR NODE PREDECESSOR


NAME
START -- F E

A START G C,F

B A H D

C B I H

D START END G,I

E D

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 94


Correction

4 3 1 2
A B C G

Start End
4 6
5 F
E
D
2
4
H I

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 95


Scheduling Techniques
Activity on Node

◼ Activity on node network format


◼ Arrows show precedence relationships
◼ Nodes show activities

◼ 3 types of precedence relationships


◼ Activity on node 1—successor but no predecessor
◼ Activity on node 2—predecessor and successor
◼ Activity on node 3—predecessor but no successor

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 96


Arrow Diagramming Method ADM
Activity on Arrow Example

Arrow diagramming method (ADM) is a network diagramming


technique in which activities are represented by arrows

B
Start A C

D F Finish
E

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 97


ADM

Sometimes a "dummy task" is added, to represent a dependency between tasks,


which does not represent any actual activity. The dummy task is added to indicate
precedence that can't be expressed using only the actual activities. Such a dummy
task often has a completion time of 0.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 98


Network Techniques
AOA Example

◼ Activities specified on arrows


◼ Also called arrow diagramming method (ADM)
◼ Nodes show relationship

Result 1 Result 2 Result 3


Set up Work Finish

Activity 1 Activity 2 Activity 3

Precedence relationships between


activities are represented by circles
connected by one or more arrows

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Exercise

Draw an ADM diagram for this list of nodes:

NODE DUMMY? NODE DUMMY?


START-1 no 5-4 no
1-2 no 4-3 no
1-4 YES 3-END no
2-3 YES 5-6 no
START-5 no 6-END no

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 100
Correction of Exercise

B 2
3 wks C
A 1
3 5 wks
2 wks
F
End
Start 1 wk
4
D E F
1 wk 4 wks 1 wk
G
5 6
5 wks

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 101
Conclusion

Use of ADM or AOA as a common project management practice has


declined with the adoption of computer-based scheduling tools. In
addition, the precedence diagram method (PDM), or activity-on-node
(AON), is often favored over ADM

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 102
PMI Table

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 103
Core Planning Processes
Activity Duration Estimating

Input Process Output


1. Activity lists “… assessing the number of 1. Activity duration
2. Constraints work periods likely to be 2. Basis of estimates
3. Assumptions needed to complete each 3. Activity list updates
identified activity.”
4. Resource requirements
5. Resource capabilities
6. Resource information

Tools and Techniques


1. Expert judgment
2. Analogous estimating
3. Simulation

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 104
Core Planning Processes
Activity Duration Estimating

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 105
Precedence Relationships
Finish to Start

Understanding task dependencies

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 106
Precedence Relationships
Finish to Start

The “from” activity Task A must finish before


the “to” activity Task B can start

Task A Task B

Wedding cake
So, for example, if you were planning a project to make a wedding cake,
you might use a finish-to-start dependency between the "Bake cake" and
"Decorate cake" tasks.
When the "Bake cake" task is finished, the "Decorate cake" task begins.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 107
Precedence Relationships
Start to Start

Tasks A and B may start at the same


time, but the successor (B) cannot start
Task A until the predecessor (A) begins.

Task B
The direction of the arrow defines
which task is the predecessor and
which is the successor.

Conference Speech (A) Broadcsting or reporting (B)

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 108
Example

Start-to-start (SS) dependencies are used when the second task in the relationship can't begin
until after the first task in the relationship begins. Start-to-start dependencies
don't require that both tasks start at the same time. They simply require that the first task has
begun, in order for the second task to begin. Going back to the wedding cake example,
let's say you had planned to make the icing for the cake while the cake is baking in the oven. You
can't start making the icing until the cake has started baking, so you might use a
start-to-start dependency between the "Bake cake" and "Make icing" tasks.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 109
Precedence Relationships
Finish to Finish

Task A

Tasks A and B may end at the same


time, but the successor (B) cannot Task B
finish until the predecessor (A) finishes

Returning home Cooking food Earing food Car driver released

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 110
Example

If one of your tasks can't finish until another one finishes, you can use a finish-to-finish (FF)
dependency between them. Finish-to-finish dependencies don't require that both t
asks be completed simultaneously. They simply require that the first task be finished, in order for
the second task to finish. The second task can finish any time after the first task finishes. I
n our wedding cake example, let's say there are some finishing touches to the decorations that you
can't finish until the cake is delivered. You can use a finish-to-finish dependency between
the "Decorate cake" and "Deliver cake" tasks. When the "Decorate cake" task is finished, then the
"Deliver cake" task can be completed.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 111
Precedence Relationships
Start to Finish

Task A

Task A must start before Task B can


finish (seldom used).
Task B
One example I have encountered is
A: The start of the new shift of the security guard
signal
B: The finish shift of the current security guard.
ie. if the next shift security guard didn't turn up,
the first shift security guard has to continue his
duty.
Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 112
Example

Finally, the start-to-finish (SF) dependency is a little tricky. When you use this type of
dependency, you are saying that the second task in the relationship can't finish until the
first task starts.
However, the second task can finish any time after the first task starts. Going back to our
wedding cake example, let's say you have a task for billing the customer. It begins when
the customer
requests the cake, but it can't be completed until after the cake delivery has begun. You
can use a start-to-finish dependency between the "Deliver cake" and "Bill customer"
tasks, so that when the
"Deliver cake" task has begun, it is okay for the "Bill customer" task to finish.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 113
Precedence Relationships
RESUME

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 114
Exercice

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 115
Precedence Relationships
RESUME

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Leads vs Lags

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PDM Example
Diverging-Converging Activities

Diverging Activities Converging Activities

Single predecessor with Multiple predecessors with


multiple successors single successor

Paint Ceiling

Paint Walls
Prep Paint Walls Clean-up
(2nd coat)

Paint Trim

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Exemples

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Exemples

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Key Scheduling Definitions

◼ Network
◼ Network techniques
◼ Path
◼ Node
◼ Arc
◼ Event
◼ Activity

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Slack vs Float
Same
Practical Definition:

Slack or Float provide flexibility in the project schedule.

It represents a period of time a task might be delayed


without impacting the project schedule or its successor
task .

It is the amount of time an activity can be delayed


without impacting other activities or the project end date
and changes over the course of the project
implementation.

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Float

Float = LS - ES

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Critical Path Methodology

PMBOK® Definition
Generally, but not always, the sequence of schedule activities that
determine the duration of the project. It is the longest path through the
project.

Practical Definition
The longest paths of tasks through the project plan with zero float or zero
slack slack.

On the critical path, there is no slack or float. No task or activity can be


delayed without impacting its immediate successors or the project schedule.

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Think of critical path in project management as a project
modeling technique.

Longest sequence of activities in a project plan which must


be completed on time for the project to complete on due
date. An activity on the critical path cannot be started until
its predecessor activity is complete; if it is delayed for a day,
the entire project will be delayed for a day unless the activity
following the delayed activity is completed a day earlier.

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Critical Path (CPM)

The critical path method (CPM) is an algorithm for scheduling a set of project
activities. It is an important tool for effective project management.

The essential technique for using CPM is to


construct a model of the project that includes the
following:

❑ A list of all activities required to complete the


project (typically categorized within a work
breakdown structure), PERT chart for a project with
❑ The time (duration) that each activity will take five milestones (10 through 50)
to complete, and six activities (A through F).
The project has two critical
❑ The dependencies between the activities and,
paths: activities B and C, or A, D,
❑ Logical end points such as milestones or and F – giving a minimum
deliverable items. project time of 7 months with fast
tracking. Activity E is sub-
critical, and has a float of 1
month.
127
CPM

CPM calculates the longest path of planned activities to logical end points
or to the end of the project, and the earliest and latest that each activity
can start and finish without making the project longer. This process
determines which activities are "critical" (i.e., on the longest path) and
which have "total float" (i.e., can be delayed without making the project
longer).

In project management, a critical path is the sequence of project network activities which add
up to the longest overall duration. This determines the shortest time possible to complete the
project. Any delay of an activity on the critical path directly impacts the planned project
completion date (i.e. there is no float on the critical path). A project can have several, parallel,
near critical paths. An additional parallel path through the network with the total durations
shorter than the critical path is called a sub-critical or non-critical path.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 128
Exercise

Activity Duration
A 2
How many paths we have in the
B 5
PDM?
Which is the critical Path ? C 11
D 5
How many days are required for E 3
the project ?
F 5
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Forward Pass Definitions

◼ Early Start Date (ES)


◼ Earliest possible point in time an activity can start, based on the
network logic and any schedule constraints
◼ Duration (DU)
◼ Number of work periods, excluding holidays or other nonworking
periods, required to complete the activity; expressed as workdays
or workweeks
◼ Early Finish Date (EF)
◼ Earliest possible time the activity can finish

◼ Forward Pass
◼ Starting at the beginning (left) of the network develop early start
and early finish dates for each task, progressing to end (right-most
box) of the network

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Forward Pass Definitions

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Task Identification
Exercise : Forward Pass

Name Duration ES EF
Prep 2 1 2
Paint Trim 2 3 4
Paint Ceiling 3 3 5
Paint Walls 4 3 6
Paint Walls (2nd Coat) 2 7 8
Clean-up 2 9 10

EF = ES + DU - 1

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Forward Pass Calculation
Based on the earliest Finish date of the project

Early Finish = Early Start + Duration -1 ES DU EF

Task
EF = ES + DU – 1 LS Float LF

3 DU = 2 4

Paint Trim

1 DU = 2 2 3 DU = 3 5 9 DU = 2 10

Prep Paint Ceiling Clean-up

3 DU = 4 6 7 DU = 2 8

Paint Walls Paint Walls (2nd Coat)

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Backward Pass Definitions

◼ Late Start Date (LS)


◼ Latest point in time that an activity may begin without delaying that
activity’s successor
◼ If the activity is on the critical path, the project end date will be
affected
◼ Float or Slack
◼ Latest point in time a task may be delayed from its earliest start date
without delaying the project finish date
◼ Late Finish (LF)
◼ Latest point in time a task may be completed without delaying that
activity’s successor
◼ If the activity is on the critical path, the project end date will be
affected
◼ Backward Pass
◼ Calculate late start and late finish dates by starting at project
completion, using finish times and working backwards

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 134
Backward Pass Calculation

Latest Start = Latest Finish – Duration + 1

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 135
Task Identification
Forward and Backward Passes

Name Duration ES EF LS LF Float

Prep 2 1 2 1 2 0
Paint Trim 2 3 4 7 8 4
Paint Ceiling 3 3 5 6 8 3
Paint Walls 4 3 6 3 6 0
Paint Walls (2nd Coat) 2 7 8 7 8 0
Clean-up 2 9 10 9 10 0

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 136
Exercise

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Exercise

LF= 11 LF= 26
LF= 30
LS = 7 LS = 12
LS = LF-DU +1 =27

LF= 6
ES=5 ES=11 ES=26
LS = 3
EF= ES+DU-1 =9 EF= ES+DU-1 =25 EF= ES+DU-1 =29

4W 5W 15W 4W

A C D F
ES=31
EF= ES+DU-1 =37
ES=1
EF= ES+DU-1 =4 10W 7W
ES=11 ES=23
B EF= ES+DU-1 =22 EF= ES+DU-1 =30
H
ES=1
EF= ES+DU-1 =10
12W 8W
LF= 37, EF=37
LF= 10 LS = ES = 31
LS=LF-DU+1=1 E G

Float (Sluck) = LFD - EFD LF= 22 LF= 30


LS=LF-DU+1=11 LS=LF-DU+1=23

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RESUME
PRECEDENCE DIAGRAMMING METHOD

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RESUME
PRECEDENCE DIAGRAMMING METHOD

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RESUME
PRECEDENCE DIAGRAMMING METHOD

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RESUME
PRECEDENCE DIAGRAMMING METHOD

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RESUME
PRECEDENCE DIAGRAMMING METHOD

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RESUME
PRECEDENCE DIAGRAMMING METHOD

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RESUME
PRECEDENCE DIAGRAMMING METHOD

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RESUME
PRECEDENCE DIAGRAMMING METHOD

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Exercise Critical Path

a) Find the critical path


b) Find the duration of the critical path
c) Find the total number of paths
d) Find the duration of all non-critical paths
e) Find the float for each activity

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 147
Exercise

For this PDM,


a) Find all early start and early finish
b) Find all latest start and latest finish

(The activity duration is the number and the activity is the letter in each box.)

3 8
B D
4
3 E End
Start
A
6
C

148
Exercise

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Schedule Purpose

◼ Converts the project plan to an operating plan that is the basic tool for
controlling project activities
Benefits of a realistic schedule?

VIDEO – CPM Method

http://www.youtube.com/watch?v=SF53ZZsP4ik

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 152
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◼ Float is one of the very basic concepts essential for building network diagrams
and in turn a project schedule. Further, there are different types of floats such as
Free float, Total float, Project float, Interfering Float, Independent Float. As a
Project Manager, you should have a clear understanding of these concepts in
order to create efficient project schedules. So, lets see..

◼ The term “Float” implies “Fluid”, which in turn implies “Flexibility“. In Project
Scheduling, Float refers to the amount of scheduling flexibility. Float is also
popularly called “Slack“.

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◼ Types of Float
The different types of float are

1. Total Float or Float


2. Free Float
3. Project Float
4. Interfering Float (INTF)
5. Independent Float (INDF)

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 156
PMBOK defines Total Float as
“The amount of time that a schedule activity can be delayed or extended from its early
start date without delaying the project finish date or violating a schedule constraint.”
So, Total Float is about flexibility at the project level. It is about the flexibility that an
activity has in its execution without delaying the Project finish date.

Total Float Formula


Total float is calculated by subtracting the Early Start date of an activity from its Late Start
date (Late Start date – Early Start date), or Early Finish date from its Late Finish date (Late
Finish date – Early Finish date).

Total Float or Float = LS – ES or LF – EF

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Free Float
PMBOK Defines Free Float as “The amount of time that a schedule activity can be
delayed without delaying the early start date of any successor or violating a schedule
constraint”
So, Free Float is about flexibility at the activity level. It is about the flexibility that an
activity has in its execution without delaying its successor activity.

Free Float Formula


Free float is calculated by subtracting the Early Finish date of current activity from the
Early Start date of its successor activity (ES of successor Activity – EF of current Activity).

Free Float = ES (of successor) – EF (of current)

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Total Float vs Free float
While Total Float is how much an activity can be delayed without affecting
the project Finish date, Free Float is about how much an activity can be delayed
without affecting its successor activity.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 163
Interfering Float (INTF)
Interfering Float is the amount of time a schedule activity can be delayed or extended
from its early start date without delaying the project finish date. However, it should be
understood that delaying an activity into interfering float will delay the start of one or
more following non-critical activities. If an activity is delayed for the amount of the Free
and Interfering Float, then its successor activities are critical.

Interfering Float Formula

Interfering Float = Total Float – Free Float

INTF = LF Current – EF Current – ES Successor + EF Current

INTF = LF Current – ES Successor

164
INTF = LF Current – EF Current – ES Successor + EF Current

INTF = LF Current – ES Successor

165
166
Independent Float (INDF)
Independant Float is the maximum amount of time an activity can be delayed without
delaying the early start of the succeeding activities and without being affected by the
allowable delay of any predecessor activity.

Independent Float Formula


Independent Float (INDF) = Earliest Successors’ Early Start – Earliest Predecessors’ Late
Finish – Activity’s duration
when the INDF is a negative value, we set the value to zero.

INDF = Late finish predsessor - Early Start of the current

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170
Project Float
This type of Float is not mentioned in the PMBOK, but is present in some reference
books.
It is the amount of time a Project can be delayed without delaying the externally
imposed project finish date by the customer, or the project finish date previously
committed to by the Project Manager.
Free & Total Floats are about the time an activity can be delayed, while Project float is
the amount of time a Project can be delayed.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 171
Benefits of a Realistic Schedule

◼ Framework for managing critical project activities


◼ Determines planned start and completion dates
◼ Identifies activity and task precedence relationships
◼ Aids project team in defining critical communication content
◼ Specifies times when staff must be available
◼ No surprises
◼ Other?

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 172
Scheduling Techniques
Bar/Gantt Chart

Activity A

Activity B

Activity C

Activity D

Jun Jul Aug Sep Oct Nov

Time
There are many other acceptable ways to display project information on a bar chart.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 173
Scheduling Techniques
Bar/Gantt Chart

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Scheduling Techniques
Bar/Gantt Chart

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PERT Technique

Project Evaluation and Review


Technique

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 176
Core Planning Processes
Schedule Development

Input Process Output


1. Project network diagram “… determining start 1. Project schedule
2. Activity duration estimates and finish dates for 2. Supporting detail
3. Resource requirements project activities.” 3. Schedule management plan
4. Resource pool description 4. Resource requirements
5. Calendars updates
6. Constraints
7. Assumptions
8. Leads and lags

Tools and Techniques


1. Mathematical analysis
2. Duration compression
3. Simulation
4. Resource leveling heuristics
5. Project management
software

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 177
Key Scheduling Concepts

◼ Master schedule
◼ Crashing
◼ Hanger
◼ Workaround
◼ Schedule variance

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 178
Milestone Chart

Data
Date

Event Jan Feb Mar Apr May Jun Jul Aug


Subcontracts Signed
Specifications Finalized
Design Reviewed
Subsystem Tested
First Unit Delivered
Production Plan Completed

There are many other acceptable ways to display project information on a milestone chart.

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 179
Exercise 4-3
Project Milestones

◼ Identify the major milestones in your project

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Core Planning Processes
Resource Planning
Project Human Resource Management includes the processes that
organize, manage, and lead the project team. The project team is comprised
of the people with assigned roles and responsibilities for completing the
project. Project team members may have varied skill sets, may be assigned
full or part-time, and may be added or removed from the team as the project
progresses

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 183
Core Planning Processes
Resource Planning

Input Process Output


1. WBS “… determining what 1. Resource requirements
2. Historical information physical resources
3. Scope statement (people, equipment,
4. Resource pool description materials) and what
5. Organizational policies quantities of each should
be used to perform
project activities.”

Tools and Techniques


1. Expert judgment
2. Alternatives identification

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 184
Core Planning Processes
Cost Estimating

Input Process Output


1. WBS “… developing an 1. Cost estimates
2. Resource requirements approximation (estimate of the 2. Supporting detail
3. Resource rates costs of the resources needed 3. Cost management plan
to complete project activities.”
4. Activity duration estimates
5. Historical information
6. Chart of accounts

Tools and Techniques


1. Analogous estimating
2. Parametric modeling
3. Bottom-up estimating
4. Computerized tools

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 185
Core Planning Processes
Cost Budgeting

Input Process Output


1. Cost estimates “… allocating the overall cost 1. Cost baseline
2. WBS estimates to individual work
3. Project schedule items in order to establish a
cost baseline for measuring
project performance.”

Tools and Techniques


1. Analogous estimating
2. Parametric modeling
3. Bottom-up estimating
4. Computerized tools

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Quality competition

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Companies are speeding on Quality competition

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Quality Plan developement

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Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 202
Risk Management
Course Overview

Define risk and risk management


Establish a risk management context
Describe the 7 R’s and 4 T’s that form the framework of
risk management activities
Design and complete a basic risk assessment
Determine the appropriate response to risks and create
a plan for those responses
Describe the key components of reporting, monitoring,
and evaluation of a risk management program

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 203
Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 204
Understanding Risk

What is Risk?
The effect of uncertainty on objectives.
Typically related to one of four areas:
1. Strategy
2. Change management
3. Operations
4. Finance
Risks can be positive, negative, or neutral.
Understanding Risk

Some examples of risks:


Business interruptions
Changes in business relationships
Changing labor market conditions
System issues
Access to information
Security conditions
Understanding Risk

 Quantitative risks are those that can clearly


 be quantified.
 Qualitative risks are those that cannot easily
 be clearly quantified.

 You should always strive to make all qualitative risks quantitative,


if possible,
 By collecting and analyzing data.
Understanding Risk

What is Risk Management?


Principlesand processes that help minimize the negative
impacts of risks and maximize the positive impacts.
Process should be PACED:
Proportionate

Aligned

Complete

Embedded

Dynamic
Understanding Risk

Establishing Your Risk Management Context


Regulatory or legal environment
Communications methods
Size of the organization
Labor relations
Structure of the organization
Culture of the organization with respect to risk tolerance
 Risk Management Activities
Assessing Risk

 First step in risk management is to recognize and identify risks.

 Your risk assessment process should be proportionate to your


 organization
 You should have a template to track and record all information.

 How do you identify risks?

 Information gathering should always be a group activity. Gather hard


 data whenever possible.
 Assessing Risk
 Risk Case Study
Risk Impact assessement
Responding to Risks

The Four T’s


Tolerate
Treat
Transfer
Terminate
Responding to Risks – PMBOK (Negative)

Strategies for Negative Risks or Threats

➢Avoid
➢Transfer
➢Mitigate
➢Acceptance
Responding to Risks – PMBOK (Positive)

Strategies for Positive Risks or Opportunities

➢Exploit
➢Share
➢Enhance
➢Accept
Responding to Risks

Key Considerations
 Ensure normal business practices are not interrupted.
 Managing the media should be part of your plan.
 Direct communication with stakeholders is critical.
 If there is any chance that people may be injured or worse,
you should
 Include medical support in your planning.
 You may be required by law to obtain insurance.
Resourcing Controls

Possible controls can include:


 Re-allocating existing people or equipment
 Additional people
 New equipment
 Skills and training
 New information
Resourcing Controls

Your evaluation should look at:


Does the control meet laws and regulations?
How well does each control mitigate the risk?
What is the cost of the control vs. the implementation
benefit?
What is the sustainability of the control?
What changes might have to be made to this control?
What other effects will this control have?
Reaction Planning

 You should build a contingency plan for each major risk


 that has been identified.

 The plan should detail:


When
Who
What
Where
Reporting and Monitoring

 When your organization establishes its risk management


framework, a
 reporting hierarchy should also be established.

 Your reporting structure will differ depending on the


complexity of your
 risk management program.

 Your organization will need to develop a checklist of items


that will
 need to be reported on and monitored on a regular basis.
Reporting and Monitoring

Items that will need to be reported on include:


Changes to risks
Near misses and incidents
Changes that will affect the risk management program
Reporting and Monitoring

Items that should be monitored include:


Effectiveness of risk controls
Cost of controls vs. benefit s achieved
Laws and legislation
Industry climate
Alignment of risk management plan with corporate goals
Reviewing and Evaluating the Framework

✓ Analysis of risk response measures, whether they


achieved the desired result, and did so efficiently
✓ Review of reporting and monitoring procedures
✓ Knowledge gap analysis for risk assessments
✓ Compliance check with appropriate regulations
and organizations
✓ Opinions of key external and internal stakeholders
Reviewing and Evaluating the Framework

✓ Self-certification
✓ Risk disclosure exercise, to identify future
risks
✓ Repeat of risk assessment
✓ Lessons learned
✓ Recommendations and
implementation plan
 Q&A
End

Thank you for your participation!

Copyright © 1999 Project Management Institute, Inc. All Rights Reserved. 323

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