WBS - Coding of Account Identifier – Numbering of WBS

Planning Package – Details not there / We cannot Decompose (breaking into smaller components) – We
will be holding it and when we get details and then decompose. Such package is called the planning
package (not to be confused with real time. This is as per PMBOK)

WBS Dictionary – this is required for schedule for completion

1. Details of each and every works package
2.

Create WBS
1. Scope Management Plan
2. Refer to the Scope Statement
3. Consult Stakeholders

Techniques to be used
1. Documentation
2. Rolling Wave Planning – Create WBS & WBS Dictionary, Project Scope Statement
3. Progressive Elaboration – As we progress we are going to elaborate / expand the plan

Output of Create WBS

1. Scope Baseline – already developed Scope Statement, WBS & WBS Dictionary. Whenever we refer to
the scope, we refer to the scope baseline

Plan Schedule Management – How to manage the schedule, how to schedule activities, how to control
the schedule. What is the estimating technique we are going to use. How to measure performance, how
to strategize our process.

Plan schedule management

1. Develop schedule management plan – All the strategies to develop the schedule

Define Activities
Inputs
1. Work Package – decompose – into activities – come out with the activity list
2. Scope Baseline
3. Schedule Management Plan
4. Environmental Factors

Techniques
1. Meetings
2. Expert Judgement
3. Decomposition
4. Rolling Wave Planning

Output
1. Activity List
2. Activity Attributes – Activity ID, WBS ID,
3. Milestone list
Sequencing the Activities
Techniques
1. Precedence Diagramming Method – Relationship between the Predecessor & Successor
1.1. FS – Finish to Start – Start the successor after completing the predecessor
1.2. SS – Start to Start – Starting the Successor in parallel to the start of predecessor
1.3. FF – Finish to Finish – After the predecessor finishes, the successor can be claimed as finish
1.4. SF – Start to Finish – Successor has to be finished, and then only we can go back to start the
predecessor

Dependency
1. Mandatory
2. Discretionary
3. Internal – Within Organization
4. External – Outsourcing
5. Internal Mandatory
6. External Mandatory
7. Internal Discretionary
8. External Discretionary

Lead & Lag

Preponing of the successor is called as Lead
Delaying of the Successor is called as Lag

Sequence Activities
Inputs:
Schedule Management Plan
Activity List
Activity Attributes

Tools :
Dependency
Leads & Lags
Precedence Diagramming Method

Outcome:
Network Diagram
Estimate the Duration for Each Activity
Technique:
1. Analogous Estimating – Refer to the historical data & Consider the data as such (it would not be
accurate). In the very beginning, we may use analogous estimation
2. Parametric Estimation – Do a mathematic calculation based on variables (Extrapolation)
3. Bottom Up Estimation – Estimate at the lowest level and then sum-up (from duration of tasks to
activity to work packages to WBS) – it is more time consuming and better than Analogous
4. Three Point Estimation – 3 Reference Points
4.1. Triangular Distribution – Average of (P + M + O)
4.1.1. P – Pessimistic -
4.1.2. M – Most Likely -
4.1.3. O – Optimistic –
4.2. BETA / PERT – (P + 4M + O)/6 – this is more accurate

Inputs;
1. Schedule Management plan
2. Activity List
3. Activity Attributes
4. Risk Register
5. Resource Requirements
6. Environmental Factors

Techniques;
1. Analogous Estimating – historical data
2. Parametric Estimating – mathematical calculation based on variable
3. Bottom Up Estimating – estimate at the lowest level and sum up
4. Reserve Analysis – To manage the risk
5. Consult Experts
6. Conduct Meeting
7. Alternative Analysis – better reference

Output;
1. Duration Estimates
2. Basis of Estimates – Reference Document for estimates

The Estimates is only rough / approximate. We have to refine it and develop a Schedule

Note: in PMP 1 person or department has to execute the work from 8 hrs to 80 hrs

Develop Schedule – Come out with a definite schedule

Techniques
1. Resource Optimization Technique
1.1. Resource Leveling – Schedule is going to be impacted to fix the gap
1.2. Resource Smoothing Schedule do not get impacted

2. Schedule Compression
2.1. Fast Tracking – Doing Activities in parallel (Start to Start) in order to compress the schedule – when
there is no dependency – risk is higher
2.2. Crashing – Bring additional resources (only we have additional fund and additional resources)

Montecarlo Analysis – Simulation Technique

Final the Schedule Baseline is created

Project Schedule – Refined Gantt Chart

Project Data – Tabulated in Excel with start date, end date
Project Calendar – monthly calendar format

Critical Path Method

First Activity – Diamond
Node – Rectangle
First come out with the Network Diagram
Forward Pass – add the duration - When 2 activities converge, we consider the HIGHEST
value/duration/complete date (Important)
Backward Path – deduct the duration - When 2 activities converge, we consider the LOWEST
value/duration/complete date (Important)
Float – LS – ES & LF - EF
Early Start – ES
Early Finish – EF
Late Start – LS
Late Finish – LF
Free Float – Individual Float
Total Float – Does not affect the schedule
Critical Path – The Path where float is 0. We cannot delay any activities in the critical path. If we delay it
is going to impact the schedule. The longest path with the shortest duration is called critical path.

Cost Management
Direct Cost – Cost incurred directly for the project
Indirect Cost – Cost incurred
Variable Cost
Fixed Cost

Processes
1. Plan Cost Management
Outcome is Cost Management Plan – How to define cost, budget & control cost
Estimate Cost – for the project
Techniques for Estimating Cost -
Came out with the budget

Identified Risk – Known Unknown – Identified the risk – come out with the action plan – allocate the cost
– its called as contingency reserve – PM has authority

Unidentified Risk – Unknown Unknown – Never know such risk but have to handle the risk – some
money can be allocated – this is called management reserve – PM does not have authority – PM can
request the management to allocate the funds and then use it

Control Account – Project Code (Cost Center)

Risk Management
Assessment of Risks;
Probability – possibility of the risk happening (High, Low & Medium)
Impact – effect of the risk brought into the project

Time Related Risk Assessment – Urgency, Proximity & Dormancy

Within the Process - Manageability, Controllability, Detectability, Connectivity, Strategic Impact
Propinquity – Based on Stakeholders and how it impacts the Stakeholder
Perform Qualitative Risks – Probability & Impact Matrix (2 Parameters) & Hierarchal Matrix (3 or more
parameters)
Perform Quantitative Risk Analysis – Financial Impact
Risk Value = Probability x Impact
Data Analysis – Monte Carlo Software
Plan Risk Response – Action Plan to attend to the Risk
• Strategies for Threats / Negative Risk
E – Escalate (When risk is beyond authority level)
A – Avoid (avoiding a risk in totality or partially)
T – Transfer (Outsourcing)
M – Mitigate (Action by which impact is reduced or reduce the probability)
A – Accept (working around to manage the risk by accepting the impact)

• Strategies for Opportunities / Positive Risk

E – Escalate (Escalating the Opportunity for a better outcome)
E – Exploit (Utilizing the Opportunity)
A – Accept (Taking the Opportunity)
S – Share (Sharing the Opportunity)
E – Enhance (Building on the Opportunity)

Accept – is contingency response strategy

For example:
BCP – Business Continuity Plan
DRP – Disaster Recovery Plan

Project Team Assignment – Team Directory / Team members list

Multicritera Decision Analysis

Note: Once the management approves the project management plan it is called “BASELINE”. Till then
changes can be made. Once the baseline is set, all changes have to go to through the Change request.
From now we move to the project execution.

Direct & Manage Project Work – Build the project as per the plan & the approved change request –
outcomes are the “Deliverables, Costing, Identifying Issues, Issue Log Update, Identify Change

Manage Project Knowledge – We are going to collect the knowledge (such as site beside and note down,
meeting)
Make the knowledge available to the team – going to use by share point / share drive (change request
may be initiated / once approved)
Interaction – Leadership / active listening skills / trustworthy person / being more mindful / taking care
of the people / trust will develop / networking / political awareness – aware of authoritative people /
change request can happen / based on the changes, respective plans can be updated

Manage Quality -
Check process & product design
Check the approved changes & Check the Operational Definition (Perform Quality Assurance)
Mcallends Theory of Needs
1. Needs for affiliation – people who like to be in an comfortable environment which is not or less
challenging
2. Needs for achievement – look for challenge
3. Needs for Power – people who need to be empowered

Mcgregors Theory
1. Theory X – people who micromanage. They do not trust the team
2. Theory Y – people who do not micromanage. They trust the team

Herzberg Theory
1. Motivating Factor – appreciations, recognitions, rewards, promotions for the team
2. Hygene Factor – do not motivate the individual but absence will demotivate the individual such as
Salary, Job Security

Expectancy Theory –
You are going to put in effort in expectation of a result
Result should fetch a value

Theory Z –
It’s a rare scenario
The employer are looking for a long term association and win-win situation whether they are not going
to override the other person.

This helps to understand human behavior and helps to manage people

Conflict Management Strategy

Problem Solving / Collaboration – Win Win Situation
Forcing – One Man’s decision being forced on to the other person – one person wins & other loses
Compromise – Coming out with a midpoint solution (decision taken on not any basis. It’s a lose lose
situation)
Smoothing – Intention to maintain the relationship. Avoid Conflict.
Withdrawal – withdrawing from giving the solution. Don’t have data to justify

Selecting a wrong conflict management strategy is a problem.

Implement Risk Response

Performance Measurement Baseline – Scope, Measurement & Cost is to be considered

Monitor Risks
1. Check for any more risks
2. Check for the priority for the already identifies risks
3. Check for the effectiveness of the risk response plan

Control Procurement
1. Inspect the physical product
2. Audit the processes are followed correctly
3. If there are changes, check for change requests
4. Make payment as per agreement

Perform integrated Change Control

1. Change Source can be from internal or external. Either way we request to submit a formal change
request
2. Once the change request is submitted, the project manager is going to prepare a impact analysis. He
is going to inturn submit the change request to the CCP, Change Control Board.
3. CCP is going to evaluate the change request. They shall approve, reject or defer decision
4. Defer mean delay or hold or come out with some changes
5. In case of (4), they ask for more information – goes back to the impact analysis or it may be held
6. In case the change request is approved – it is called approved change request – the plans &
documents would be updated and that is the latest version of the plan & the documents

Earned Value Analysis

BAC – Budget at Completion or Cost Baseline
PV – Planned Value = % Work Planned x BAC
EV – Earned Value = % Work Completed x BAC
AC – Actual Cost = Money Spent upto a point
CV – Cost Variance = EV-AC (if it is –ve it means we are over-planned cost, we have spent more; if it is
+ve then it is under-planned cost, we have spent less; if it is neutral then it is On Planned Cost)
CPI – Cost Performance Index = EV / AC (less than 1 it means spending more than planned cost; if it
greater than 1, it means under-planned cost; if it is equal to 1, then it is working fine
SV – Scheduled Variance – EV – PV (if it is –ve then it means behind schedule; if it is +ve then it means
ahead of schedule; if it is neutral it means on schedule)
SPI – Scheduled Performance Index = EV / PV (less than 1 it is behind schedule; more than 1 it means it is
ahead of schedule; if it equal to 1 it means on Schedule)
EAC – Estimate at Completion AKA revised budget
ETC – Estimate to Complete = EAC – AC
TCPI – To Complete Performance Index (if more than 1 it is harder to complete; if it is less than 1 it is
easier to complete; if it is equal to 1 it is same to complete (or easy to manage))