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Department of Information and Communications Technology Project Planning, Part 2
ICT Project Management 1
PM BOK ® Sixth Edition Com pliant

Project Planning Part 2 Prepared by BN ProjekTechnik for:
Module Objectives 2
• Describe the risk

management processes
• Define the concept of
Quality Planning
• Define Communications
planning
• Define Procurement
Planning

Copyright © 2018 BN ProjekTechnik Corporation 1

Topics for Discussion 3
• Risk Identification & Assessment

• Quality Planning
• Communications Planning
• Procurement Planning

Risk Definition 4
PMBOK® guide definition.

An uncertain event or condition that, if it occurs,
has a positive or negative effect on a project’s
objectives.


Basic Definitions 5
Uncertainty – an absence of
information, knowledge, or
understanding regarding the outcome of
an action, decision, or event.
Risk – a measure of the amount of

uncertainty that exists.
Threats – are specific events that drive

the project in the direction of outcomes
viewed as unfavorable.

Information vs. Uncertainty Relationship 6
No
Information Some
Information Complete
Information
Amount of Risk
Total
Certainty
Relative
Total Uncertainty
Uncertainty


Project Risk Management Processes 7

Identify Risks 8
The process of determining which risks

may affect the project and documenting
their characteristics.


Types of Risks 9
Business risks – those

normal risks of doing
business that carry
opportunities for both
gain and losses.

Types of Risks 10
Pure or insurable risks –

those risks that present
only an opportunity for
loss
• Direct property damage
• Indirect consequential
loss (business
interruptions)
• Legal liability
• Personnel

Risk Identification Tools 11
• Brainstorming
• Delphi technique
• Interviewing
• Checklists
• Assumption analysis
• Cause and effect diagram



Perform Risk Analysis 13
The process of prioritizing risks for further

analysis or action by assessing and
combining their probability of occurrence
and impact.

Probability / Impact Matrix 14
Very
High 19 14 9 4 1
PROBABILITY
High
21 16 11 6 2
Moderate
23 18 13 8 3
Low
24 20 15 10 5
Very Low
25 22 17 12 7
Very Low Low Moderate High Very
High
IMPACT

Risk Probability- 5 Level Scale 15
Level Probability of Occurrence Intervention Difficulty

1 You would be surprised if this Your normal management processes
Very Low happened. should easily ensure an acceptable
outcome
2 Less likely to happen than not. Careful oversight of your normal
Low management processes will probably bring
about an acceptable outcome.
3 Just as likely to happen as not. Additional time and effort will be required
Medium to move forward an acceptable outcome.
4 More likely to happen than not. Your resources and authority are sufficient
High to permit only a minor effect on the
outcome.
5 You would be surprised if this Your ability to affect the outcome is
Very High did not happen. effectively zero.

Risk Impact – 5 Level Scale 16

1 2 3 4 5
Very Low Low Medium High Very High
Cost Insignificant < 5% cost 5-10% cost 10-20% >20% cost
cost increase increase cost increase
increase increase
Schedule Insignificant Overall Overall Overall Overall
schedule project project project project
slippage slippage < slippage 5- slippage 10- slippage
5% 10% 20% >20%
Scope Scope Minor areas Major areas Scope Project end
decrease of scope of scope reduction item is
barely are are unacceptable effectively
noticeable affected affected to the useless
client
Quality Quality Only very Quality Quality Project end
degradation demanding reduction reduction item is
barely application requires unacceptable effectively
noticeable are client to the unusable
affected approval client



Plan Risk Responses 18
The process of developing options and

actions to enhance opportunities and to
reduce threats to project objectives.


Risks Response Tools and Techniques 19
• Avoidance
• Transference
• Mitigation
• Acceptance

Risk Response Strategies 20
Avoidance:
“ I do not accept this option because of the
potentially unfavorable results…”


Transference:
“ I am aware of the risk and will transfer
all or a portion of it to another party…”

Mitigation:
“ I am aware of the risk, and I will do my best
to minimize its occurrence and effect…”


Acceptance:
“ I am aware of the risk, and I am willing to
accept the consequences should they
occur…”





Purpose of Quality 27


Quality Planning 28
Quality planning is identifying which

Quality Standards are relevant to the
project and determining how to satisfy
them

Dimensions of Quality 29
Quality Grade
•The category or ranking of the
project’s deliverables.
•This is the most common meaning of
the word “quality.”
Quality Conformance
•The ability of the deliverables to
meet the standards set by the quality
grade.


Quality Grade 30
By varying the Quality Grade of a

deliverable, you can affect the time and cost of
the project provided the change is acceptable
to the customer.
Cost
B
A
Impact Time

Tools and Techniques for Quality Planning 31
• Benchmarking
• Cause and effect
diagrams
• Benefit / Cost analysis


Traceability Matrix
Requirement Requirement Requirement Product or Acceptance Requirement

Numeric Name Objectives Function to Criteria Dependencies
Identifier Create
Numeric Code Standard What end- What are the Quality, The other
name to result the product quantity, requirements
identify the requirement artifacts to security and that affects
requirement delivers represent privacy the creation
achieved indicators, or and release of
delivery of rules and the planned,
the standards designed, and
requirement defined for build
the delivery requirement
of the
requirements
to be
acceptable.




Communications Planning 34
Involves determining the

information and
communications needs of
the project stakeholders:
who needs what
information, when they
will need it, how it will be
given to them, and by
whom.

Goals of Communication 35
Understanding the exact meaning and

intent of others
Being understood by others
Gaining acceptance for yourself and/or
your ideas
Producing action or change


Breakdown of Communication 36
As proposed by the
Project Sponsor
As produced by As installed at the

Manufacturing User’s Site

Communications Management Plan 37

Stakeholder What information do they need? Frequency Medium Response
Sponsor •High-level cost, schedule, quality Monthly Written report and Required in 3
performance meeting days
•Problems and proposed actions
PM’s •Detailed cost, schedule, quality performance Weekly Written report and
supervising •Problems, proposed actions, assistance meeting
Management required
•High-level cost, schedule, quality Monthly Meeting with Required in 5

Customer performance project sponsor; days
Executive •Problems and proposed actions Published meeting
•Required action by customer minutes
•Detailed cost, schedule, quality performance Weekly Written report and Required in 3
Customer •Problems and proposed actions meeting; days
Contact •Required actions by customers Include in project
•Coordination information for customer action team meeting
•Detailed cost, schedule, quality performance Weekly Project team

Project Team •Problems and proposed actions meeting;
•Coordination information for next two weeks Published meeting
•News from customer and sponsors minutes




Procurement Planning 39
Identifies which project

needs can best be met by
purchasing or acquiring
products, services, or
results outside the project
organization, and which
project needs can be
accomplished by the
project team during
project execution.


Why we procure for our projects 40
Less Risky Better Product Quality
Readily Available Faster Delivery
Cheaper Covered by Warranty
Not their core competence Market Positioning

Procurement Considerations 41
§ Availability in the market

§ Procurement lead time
§ Local suppliers
§ Quality, Conformance to Specifications
§ Warranty
§ Cost


Validation 46

Module Summary 47
§ Risk is an uncertain event or condition, that if

it occurs, has a positive or negative effect on
a project’s objectives.
§ Quality planning is identifying which quality
standards are relevant to the project and
determining how to satisfy them
§ Communications planning involves
determining the information and
communications needs of the project
stakeholders: who needs what information,
when they will need it, how it will be given to
them, and by whom.


Module Summary 48
§ Procurement planning identifies which project

needs can best be met by purchasing or
acquiring products, services, or results outside
the project organization


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Department of Information and Communications Technology Project Planning, Part 2

ICT Project Management 1

PM BOK ® Sixth Edition Com pliant

• Describe the risk

PM BOK ® Sixth Edition Com pliant

Copyright © 2018 BN ProjekTechnik Corporation 1

Topics for Discussion 3

• Risk Identification & Assessment

PM BOK ® Sixth Edition Com pliant

PMBOK® guide definition.

PM BOK ® Sixth Edition Com pliant

Copyright © 2018 BN ProjekTechnik Corporation 2

Risk – a measure of the amount of

Threats – are specific events that drive

PM BOK ® Sixth Edition Com pliant

Information vs. Uncertainty Relationship 6

PM BOK ® Sixth Edition Com pliant

Copyright © 2018 BN ProjekTechnik Corporation 3

Project Risk Management Processes 7

PM BOK ® Sixth Edition Com pliant

The process of determining which risks

PM BOK ® Sixth Edition Com pliant

Copyright © 2018 BN ProjekTechnik Corporation 4

Business risks – those

PM BOK ® Sixth Edition Com pliant

Pure or insurable risks –

Copyright © 2018 BN ProjekTechnik Corporation 5

Risk Identification Tools 11

PM BOK ® Sixth Edition Com pliant

Project Risk Management Processes 12

PM BOK ® Sixth Edition Com pliant

Copyright © 2018 BN ProjekTechnik Corporation 6

Perform Risk Analysis 13

The process of prioritizing risks for further

PM BOK ® Sixth Edition Com pliant

Probability / Impact Matrix 14

Copyright © 2018 BN ProjekTechnik Corporation 7

Risk Probability- 5 Level Scale 15

Level Probability of Occurrence Intervention Difficulty

PM BOK ® Sixth Edition Com pliant

Risk Impact – 5 Level Scale 16

PM BOK ® Sixth Edition Com pliant

Copyright © 2018 BN ProjekTechnik Corporation 8

Project Risk Management Processes 17

PM BOK ® Sixth Edition Com pliant

Plan Risk Responses 18

The process of developing options and

PM BOK ® Sixth Edition Com pliant

Copyright © 2018 BN ProjekTechnik Corporation 9

Risks Response Tools and Techniques 19

PM BOK ® Sixth Edition Com pliant

Risk Response Strategies 20

PM BOK ® Sixth Edition Com pliant

Copyright © 2018 BN ProjekTechnik Corporation 10

Risk Response Strategies 21

PM BOK ® Sixth Edition Com pliant

Risk Response Strategies 22

PM BOK ® Sixth Edition Com pliant

Copyright © 2018 BN ProjekTechnik Corporation 11

Risk Response Strategies 23

PM BOK ® Sixth Edition Com pliant

Project Risk Management Processes 24

PM BOK ® Sixth Edition Com pliant