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A Guide To Project Management

By WorkMonk.com

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Guide to Project Management by WorkMonk.com

This PDF is Downloaded from WorkMonk.com WorkMonk is an Outsourcing Project Management and Quality Control platform for businesses all over the world so you can work with highly skilled freelancers world, and service providers with zero risk risk. As a Client you get dedicated Project Managers who manages all the work including reporting, communication and splitting the work to various ommunication vendors. You can use WorkMonk to – 1. Outsource your Work. Keep your core competency and let WorkMonk do all the backend work. 2. White Label WorkMonk work and services and resell it to your clients and in your local market. What Kind of work WorkMonk can do ? Monk Web Development, Software Development, Mobile Development, SEO/SEM/SMO, Copywriting, Analytics, Business Intelligence, Data Mining, Mining Legal Outsourcing and many more. You can see all the WorkMonk Services at http://workmonk.com/all_services So go ahead and post the work at WorkMonk.com for Free or drop us an email to ost sales@workmonk.com or contact/call us from http://workmonk.com/contact or use Chat with us option on the site to talk to us. Feel free to use the information and distribute this pdf and use the content for non noncommercial /commercial purpose.

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Contents
1. 2. 3. 4. 5. 6. 7. An Introduction to Project Management ............................................................................................. 5 ............................. Project Phases & Project Life Cycle Cycle................................................................................................ ....................................... 5 2.1. 3.1. Project Life Cycle Stages Stages................................................................................................ ............................................ 5 Roles & Responsibilities of a Project Manager ................................................................ ......................................... 6 Project Stakeholders................................ ............................................................................................................................. 6 ............................. Key General Management Skills ................................................................................................ ........................................... 7 Project Processes................................ ................................................................................................................................ 7 .................................. Process Groups ................................ ................................................................................................................................ 8 ..................................... Defining Project Scope Management ................................................................................................ 8 ................................... 7.1. 7.2. 8. 8.1. 8.2. 8.3. 8.4. 8.5. 8.6. 9. 9.1. 9.2. 9.3. Scope Statement................................ ................................................................................................ ....................................................... 8 Creating the Work Breakdown Structure ................................................................ g ................................................. 9 Cost Estimating Inputs ................................................................................................ ............................................10 Estimating Activity Durations Durations................................................................................................ 10 .................................. Analyzing Cost Estimating Results Results........................................................................................... ...........................10 Cost Budgeting ................................ ................................................................................................ ........................................................10 Developing the project Budget ............................................................................................... 10 ............................... Earned Value Management ................................................................................................ 11 .................................... Precedence Diagram Method ................................................................................................ 11 ................................. Arrow Diagramming Method Method................................................................................................ 11 .................................. Conditional Diagramming Method ................................................................ .........................................................11

Estimating Cost and Developing Budget Budget............................................................................................. 10 .............................

Creating the Network Diagram Diagram................................................................................................ ...........................................11

10. Creating the Project Schedule ................................................................................................ ............................................11 10.1. Applying Mathematical Analysis ............................................................................................. 12 ............................. 10.2. Examining the Project schedule schedule.............................................................................................. 12 .............................. 11. Project Integration Management ................................................................................................ .......................................12 12. Project Quality Management................................ ................................................................................................ ..............................................12 12.1. Implementing Quality Control ................................................................................................ 13 ................................ 12.2. Charting Quality Control ................................................................................................ .........................................13

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12.3. Evaluating Quality Costs Costs................................................................................................ ..........................................13 12.4. Implementing Quality Assurance Assurance............................................................................................ ............................13 13. Project Human Resource Management Management.............................................................................................. 13 .............................. 14. Project Communications Management Management.............................................................................................. 14 .............................. 15. Project Risk Management................................ ................................................................................................ ................................................... 14 15.1. Analyzing Identified Risks Risks................................................................................................ ........................................14 15.2. Risk Management Methods Methods................................................................................................ 15 .................................... 15.3. Responding to Identified Risks Risks................................................................................................ 15 ................................ 15.4. Iterative Risk Management Management................................................................................................ 15 ..................................... 16. Why Projects Fails?................................ ............................................................................................................................. 15 .............................

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Guide to Project Management by WorkMonk.com

The primary purpose of this document is to provide a basic reference to anyone who is interested in understanding project management.

1. An Introduction to Project Management

Project Management is the supervision and control of the work that is required to complete the project vision. Project management includes work processes that initiate, plan, execute, and close work. Work processes require tradeoffs among the scope, quality, cost, and schedule of the project. The project team carries out the work needed to complete the project, while the project manager schedules, monitors, and controls the various project le tasks. Project Management is comprised of the following nine knowledge areas:
Project Management Knowledge Areas Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Risk Management Project Quality Management Project Procurement Management Project Human Resource Management Project Communications Management Focuses on project plan development and execution. Deals with the planning, creation, protection and fulfillment of the project scope. Covers activities, their characteristics, and how they fit into the project schedule. Concerned with the planning, estimating, budgeting, and control of costs. Focuses on risk planning, analysis, monitoring, and control. Centers on quality planning, assurance and control. Involves planning, solicitation, contract administration, and contract closeout. Focuses on organizational planning, staff acquisition, and team development. Details on how communication can be improved.

2. Project Phases & Project Life Cycle
Projects are temporary endeavors to create a unique product or service. All projects must have an end date. Between the project launch and the coveted end date, project will pass through multiple phases and each phase coveted will have its deliverables. A project phase allows a project manager to see the project as a whole and still focus on completing the project one phase at a time. Consider a project to create a new electronic gadget. This gadget will create have several phases to complete from concept to completion: product description, prototype, revision, testing and so on. Each project will have its own logical phases to completion, goals and deliverables and the completion of a phase allows a project to move into the next phase. The collection of the project phases, as a whole, is known as the project life cycle. Project Life cycle define the , beginning, middle, and end of a project. Projects have a greater risk and uncertainty in the early phases of the life cycle than nearing its end.

2.1.

Project Life Cycle Stages

Initiating: When a project is proposed, planned at a high level, and key participants, commit to it in broad terms. Planning: Starts after the initial commitment, includes detailed planning, and ends when all stakeholders accept the entire detailed plan. Executing: Includes authorizing, executing, monitoring, and controlling work until the customer accepts the project deliverables. Closing: All activities after customer acceptance to ensure project is completed, lessons are learned, resources are recognized, and contributions are rewarded.

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Fig 1: Project Life Cycle Stages

Fig 2: Project Life Cycle for Quality Improvement Projects

3. Project Stakeholders
Stakeholders are those folks and organizations who are actively involved in the project, or will be affected by its outcome – in other words, people, groups, businesses, customers, and communities that have a vested interest in have the project. Key Project Stakeholders Project Manager Person who is accountable for managing the project. Project Customer Person or group that will use the project deliverable. Performing Organization Entity that employs the people responsible for completing the project work. Project Team Collection of individuals that will work together to ensure success of the project. Project Sponsor Has the power to authorize and sanction the project work and is ultimately responsible fo project success. for

3.1.

Roles & Responsibilities of a Project Manager

The project manager has primary responsibility for the quality of a project’s deliverables and its successful completion. To succeed, the project manager must work closely with the project owner to ensure that adequate resources are applied. The project manager also has responsibility for planning and ensuring that the project is successfully completed on time and within budget. Responsibilities:  Implement project policies and procedures  Acquire resources through negotiation with project owners and resource managers.

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Guide to Project Management by WorkMonk.com

     

Ensure adequate technical proficiency to meet project requirements and arrange for training. Establish and maintain quality in project. Identify and procure tools to be used o the project. on Monitor project progress against schedule and budget plans and raise concerns as appropriate. Ensure resources are focused on correct activities. Engage with management to ensure project awareness and prompt issue resolution.

4. Key General Management Skills agement
There is more to project management than just getting the work done. Inherent to the process of project management are general management skills that allow the project manager to complete the project with some level of efficiency and control.  Leading the project team  Excellent communication skills  Negotiating project terms and conditions  Active problem solving  Influencing the organization Matrix Organization & Composite Organization Organizational Type Strong Matrix Pros Project team may be assigned to a project from 50 to 990% of its duration. The project manager has a high level of authority. This model provides good communication The project manager has balanced project authority with management. This model allows efficient use of functional resources. The project manager has little project authority and acts as a project coordinator. Cons Competition among project teams still exists. Overall costs may also increase due to redundant administrative staff administr among projects. The functional manager and the project manager may battle for project team members’ time. Project team may feel they are reporting to multiple bosses. The project is more a part of the functional department operations than a separate activity. Project team resources may be divided amongst too many projects at once. The project manager has little project lit authority and may be known as a project expeditor.

Balanced Matrix

Weak Matrix

Composite

Ideal for organizations with recurring projects, such as manufacturing. Everyone on the project knows who is in charge: the functional manager.

5. Project Processes
Processes are a series of actions with a common, parent goal, to create a result. Processes are not the individual activities, but the control of individual activities to com complete a project phase. There are two types of processes: Product Oriented Processes: These processes are the activities that complete a project’s phase and life cycle. In other words, product oriented processes within a project complete phases, which in turn complete the project. turn The processes within a project are unique to each project. Project Management Processes: These processes are the activities that are universal to all projects. These activities comprise the bulk of the project management body of kn owledge and these processes are common to all knowledge projects from construction to technology.

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The two process types are interrelated and interdependent. Thus, a project manager must be familiar with the product oriented processes in order to apply the project management processes. To use a real world example, a management project manager should be familiar with both how a house is constructed and the various phases involved in that construction in order to effectively apply the project management processes.

6. Process Groups
The process groups are a collection of activities that contribute to the control and implementation of the project management life cycle. The output of one process group will act as input for another process group. The following are five project management process groups: Initiating: The project is authorized. Planning: Project objectives are determined, as well as how to reach those objectives with the given constraints. Executing: The project is executed utilizing acquired resources. Controlling: Project performance is monitored and measured to ensure the project plan is being implemented to design specifications and requirements. Closing: The project and its various phases are brought to a formal end.

7. Defining Project Scope Management
Project scope management constitutes the processes that the project includes all of the work required, and only ment the work required, to complete the project successfully. Project Scope Management has several purposes:  It defines what work is needed to complete the project objec objectives.  It determines what is included in the project.  It serves as a guide to determine what work is not needed to complete the project objectives.  It serves as point of reference for what is not included in the project.  It guides the project manager on decision to add, change, or remove the work of the project. The following table lists the inputs, tools and techniques, and outputs of scope planning. Inputs Tools and Techniques Outputs Product Description Product Analysis Scope Statement Project Charter Benefit/Cost Analysis Supporting Detail Constraints Alternatives Identification Scope Management Plan Assumptions Expert Judgment

7.1.

Scope Statement

The scope statement is a document that describes the work, and only the required work, necessary to meet the project objectives. The scope statement establishes a common vision among the project stakeholders to establish the point and purpose of the project work. It is used as a baseline against which all future project decisions are t made to determine if proposed changes or work results are aligned with expectations. The scope statement, may, with adequate reason, be updated to reflect changes in the project work. It includes or project references the following: Project Justification: Identifies the business needs of the project. It answers why the project has been authorized. Project’s Product: The scope statement reiterates the details of the project product. Project Deliverables: The high-level deliverables of the project should be identified. These deliverables, when level predefined metrics are met, signal that project scope has been completed. When appropriate, it should also list what deliverables are excluded from the project deliverables. For ex: a project to create a new food product may rom state that it is not including the packaging of the food product as part of the project. Items and features not listed as part of the project deliverables should be assumed to be excluded. Project Objectives: Project objectives are specific conditions that determine the success of a project. Conditions are typically cost, schedule, and quality metrics. Vague metrics, such as customer satisfaction, increase the risk for the project, as the metric “customer satisfaction” is subjective and not quantified. ect,

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The following table depicts the Inputs, Outputs and Tools and Techniques of Scope Definition Inputs Tools and Techniques Outputs Scope Statement Work Breakdown Structure template Work Breakdown Structure Constraints Decomposition Scope statement updates Assumptions Other planning outputs Historical information

7.2.

Creating the Work Breakdown Structure

The Work Breakdown Structure (WBS) is an organized collection of the project deliverable to be created by project work. A WBS breaks down into a deliverable deliverable-oriented collection of manageable pieces. The project manager cannot complete the activity alone. The input and guidance of the project team is required as they are the The individuals close to the work and will be completing the actual activities within the project phases. The smallest element in the WBS is called the Work Package. WBS also identifies the relationship between work packages. Fig 3: A sample WBS for a technology project
OS Rollout Training Development Courseware WBT Handouts Classes Testing Planning Scenario Simulations Rollout IT Dept Sales AA's Education HR Accounting Documentation Courseware Operations Versioning Issues Knowledge Management

PM Activities Planning Meetings Schedule Budgeting

Pilots Lab

Some essential elements about the WBS:  Serves as the project scope baseline.  One of the most important project management tools.  Serves as the foundation for planning, estimating, and project control.  Visualizes the entire project.  Work not included in the WBS is not part of the project.  Builds team consensus and buy to the project. buy-in  Serves as a control mechanism to keep the project on track. s  Allows for accurate cost and time estimates.  Serves as deterrent to scope change. WBS is an input to five core processes:
WBS Activity Definition Risk Management

Cost Estimating Cost Budgeting Resource Planning

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8. Estimating Cost and Developing Budget
Cost estimating is the process of calculating the costs of the identified resources required to complete the project work. It relies on several project components from the Initiation and planning process groups. The process also lanning relies on historical information and policies from the performing organization.

8.1.

Cost Estimating Inputs

Using the Work Breakdown Structure: It’s an input to five major planning processes: cost estimating, resource s planning, risk management planning, and activity definition. Relying on Resource Requirements: The output of resource planning serves as a key input for estimating cost. The cost project will have some requirement for resources – the skills of the labor, the ability of materials, or the function of l equipment must all be accounted for. Calculating Resource Rates: The estimator should know how much each resource costs. There are four categories of cost: Direct Costs: Attributed directly to the project work and cannot be shared among projects. Variable Costs: Costs that vary depending on the conditions applied in the project. Fixed Costs: Costs that remains constant throughout the project. Indirect Costs: Costs that are representative of more than one project.

8.2.

Estimates of the duration of the activities, which predict the length of the project, are needed for decisions on financing the project.

Estimating Activity Durations

8.3.

Analyzing Cost Estimating Results

The output of cost estimating is the actual cost estimates of the resources required to the complete the project work. The cost of the project is expressed in monetary terms so that the management can compare projects based on costs. The estimate can be presented n detail against the WBS components or summarized in terms of a grand total, by phases of the project, or by major deliverables. Each resource in the project must be accounted for and assigned to a cost category. Categories inclu the following: include Labor Costs, Material Costs, Travel Costs, Supplies, Hardware Costs, Software Costs etc.

8.4.

Cost Budgeting

Cost Budgeting is the process of assigning a cost to an individual work package. The aim is to assign costs to the work in the project so that the work may be measured for performance. Inputs to Cost Budgeting Cost Estimates Predicted costs for the project work Work Breakdown Structure Deliverable of the project as it’s what the project is buying Project Schedule It’s needed to determine when the amount in the budget will be spent. Risk Management Plan It provides the probability of identified risks and their associated costs.

8.5.

Developing the project Budget

The tools and techniques used to create the project cost estimates are also used to create the project budget. Analogous Budgeting: Form of expert judgment that uses a top down approach to predict costs. Generally, it’s less top-down accurate than other methods. Parametric Budgeting: Uses a parametric model to extrapolate what costs will be for a project (ex: cost/hr and cost/unit). Also includes variables and points based on conditions. Bottom-up Budgeting: Most reliable approach, though it takes the longest to create. Starts at zero and requires each work package to be accounted for for. Computerized Tools: Software programs that are used in estimating can be used to help predict the project budget with some accuracy.

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8.6.

Earned Value Management

It is the process of measuring performance of project work against a plan to identify variances. Planned Value (PV): It is the work scheduled and the authorized budget to accomplish that work. For ex: if a project has a budget of $10,000 and month six represents 50% of the project work, the PV for that month is $5,000. PV is also known as Budget Cost of Work Schedule (BCWS). Earned Vale (EV): It is the physical work completed till date and the authorized budget for that work. For Ex: If a project has a budget of $10,000 and the work completed till date represents 25% of the entire project work, its EV is $2,500. EV is also known as Budgeted Cost of Work Performed (BCWP). Actual Cost (AC): It is the actual amount of monies the project has incurred till date. For ex: if a project has a budget of $10,000 and $5,000 has been spent on the project till date, then the AC would be $5,000. AC is also al known as Actual Cost of Work Performed (ACWP).

9. Creating the Network Diagram
A network diagram shows the relationship of the work activities and how the work will progress from start to completion. A network diagram visualizes the project work. These diagrams can vary from being extremely complex to easy to create and configure.

9.1.

Precedence Diagram Method

The PDM is the most common method of arranging the project work visually. It puts the activities in boxes called nodes, and connects the boxes with arrows. The arrows represent the relationship and dependencies of work des, packages.
A Start C D B End

Relationships between activities in a PDM constitute one of four different types: Finish-to-Start (FS): It means task A must be completed before Task B. Start-to-Start (SS): It means Task A must start before Task B can start. Finish-to Finish (FF): It means Task A must complete before Task B does. Start-to-Finish (SF): It requires that Task A to start so that Task B may finish.

9.2.

Arrow Diagramming Method

ADM approach uses arrows to represent the activities. The arrows are connected on nodes. ADM only uses finish finishto-start relationships. ADM is an example of Activity start Activity-on-Arrow (AOA) networks.

9.3.

Conditional Diagramming Method

CDMs are more complex and structure than ADM or PDM. CDM includes system dynamics and graphical evaluation and review technique (GERT). These models allow for loops and conditional branching. GERT also allo allows for probabilistic clarification of work package estimates.

10.Creating the Project Schedule Creating
Creating the project schedule is part of the planning process group. It is calendar based and relies on the project network diagram and the accuracy of time estimates. The point of the project schedule is to complete the project estimates. scope in the shortest amount of time possible without incurring exceptional costs, risks, or a loss of quality.

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10.1. Applying Mathematical Analysis
Mathematical analysis is the process of factoring theoretical early and latest start and finish dates for each activity factoring with the project network diagrams. Three common methods for mathematical analysis are: Program Evaluation and Review Technique (PERT): PERT uses a weighted average method to predict when the wh activities will end. It uses “Pessimistic”, “Optimistic” and “ “Most likely” estimate to predict when the project will be ikely” completed. Formula: (O+4M+P)/6 Graphical Evaluation and Review Technique (GERT): GERT uses conditional advancement, branching, and looping of activities and is based on probable estimates. Activities within GERT are dependent on other upstream activities. For ex: the results of work package may determine if additional testing is needed, rework is required, or the project may continue as planned. Critical Path Method (CPM): It is the most commonly used method for calculating finish time of a project. It uses a “forward” pass and “backward” pass to reveal which activities are considered critical. Activities on the critical path should not be delayed; else the project end date will be delayed. The critical path is defined as the path with the d longest duration to complete. Activities not on the critical path have some float (slack) that allows some amount of delay without delaying the project end date. roject Three different kinds of float: Free Float: Total time a single activity can be delayed without delaying the early start of any successor activities. Total Slack: Total time for which an activity can be delayed without delaying project completion. completion. Project Slack: Total time the project can be delayed without passing the customer expected completion date.

10.2. Examining the Project schedule
Project schedule can be presented in many different formats: Project Network Diagrams: Illustrates the flow of work, relationship between activities, critical path, and expected project end date and dates associated with each project activity. Bar Charts: Shows the start and end dates for the project, and the activity duration against a calendar. Activities he are listed down the left hand side and a time scale is shown along the bottom. But these do not show interrelationships of activities and if one activity is delayed, it is not obvious that how will it affect other activities. , These are easy to read and these scheduling bar charts are also called Gantt Charts. Milestone Charts: These plot out the high level deliverables and external interfaces, such as customer walk through, against a calendar. These are similar to Gantt charts, but with less detail regarding individual activities. individual

11.Project Integration Management Project
It is the art and science of ensuring that your project moves forward, that your plan is fully developed and properly implemented. It is made up of the day day-to-day processes the project manager relies on to ensure that all of the parts of the project work together.  It requires expertise, as the project manager will have to negotiate with the stakeholders for a resolution to competing objectives.  It requires proper organization as project manager will have to develop, co ordinate, and record the co-ordinate, project plan.  It requires the ability to accomplish the project plan.  It required leadership, record record-keeping, and political savvy as there may be a need to deal with potential o changes throughout the project implementation.  It requires flexibility and adaptability throughout the project execution.

12.Project Quality Management Project
Quality management is the process to ensure the project is completed with no deviations from the requirements. deviations There are several quality management philosophies:

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Total Quality Management: The organization strives for constant improvement for products and business practices. Kaizen: The organization applies small changes to products and processes to improve consistency, reduce costs, processes and provide overall quality improvement. Marginal Analysis: The cost of quality is not greater than the increased sales because of the level of quality implemented. Ideally, the revenue generated because of the quality improvements far exceeds the cost of the quality.

12.1. Implementing Quality Control
    Quality control monitors specific results within a project. Concerned that the results must satisfy relevant quality standards. oncerned Can rely on root cause analysis used to eliminate unsatisfactory results. Completed through inspection. ompleted

12.2. Charting Quality Control
Fishbone Diagram: It’s a cause effect diagram that illustrates the factors which may be contributing to quality issues or problems. It’s also known as Ishikawa diagra diagram. Flow Charts: They demonstrate how a system works from start to finish, and how system components are integrated. Pareto Charts: These histograms are related to Pareto’s 80/20 rule which says “80% of the problems come from 20% of the issues.” This diagram charts the problems, categories, and frequency. Project team should first solve m the larger problems and then move to smaller issues. Control Charts: These charts plot out the results of the inspections against a mean to examine performance against expected results. Upper and lower control limits are typically set +or – 3/6 sigma. Results that are beyond the control limit value are considered out of control and they have an assignable cause that requires investigation control to determine why the result occurred.

12.3. Evaluating Quality Costs
   The cost of quality is the amount of money the organization must spend on the quality standards. The cost of nonconformance to quality is the money or event attributed to not satisfying the quality demands. Optimal quality is reached when the cost of quality meets or exceeds the incremental cost to achieve quality.

12.4. Implementing Quality Assurance
   Monitors overall results. May use a QA program to set quality standards. e Represents the implementation of the quality plan.

13.Project Human Resource Management Project
Project Human Resource Management is the ability to lead, direct, and orchestrate the project team, the customers, project partners, contributors, and any other stakeholders to achieve the desired results for the project s, purpose.  It focuses on utilizing the people involved in the project in the most effective way.  Because projects are often similar, the project managers can rely on templates to re-create the success of create historical projects.  Staffing Management plan describes the process that the project manager must follow to bring resources onto a project, or to dismiss them when the resources are no longer needed.  The policies and procedures of the performing organization should be documented within the staffing rocedures management plan to ensure the guidelines are followed as management intends.

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    

The project manager should not forget to involve other stakeholders: customers, management, indiv individual contributors, project sponsor, and any other stakeholder unique to the project. Organizational planning calls on the project manager to identify the roles and responsibilities of the project and the reporting relationship within the organization. Reporting relationships can be internal (management) or external (customer/community). The orting relationships and the procedure to communicate with these projects interfaces must be documented. Project performance improvements must be noted in an honest appraisal of the project team members’ effort and contributions to the project. Special care to involve the project team must be given when the team is scattered geographically.

14.Project Communications Management Project
The most important skill a project manager should poss possess is effective communication. Project Communications Management centers on determining who needs what information and when? And accordingly it produces a plan to provide the needed information. PCM includes generating, collecting, disseminating, and sto storing communication. Successful projects require successful communication. It is the key link between people, ideas and information. PCM includes four processes, which may overlap each other and other knowledge areas. The four processes are: Communication Planning: The planning manager will need to identify the stakeholders and their communications needs and determine how to fulfill their requirements. Information Distribution: The project manager will need to get the correct information on the correct schedule to the the appropriate stakeholders. Performance Reporting: The project manager will rely on EVM and other performance measurement to create status reports, measure performance, and forecast project conditions. Administrative Closure: The project manager will need a routine of documentation, communication, and oject information distribution to close out a phase or a project.

15.Project Risk Management Project
Risks are uncertain events that can affect a project’s objectives for good or bad. Risk management pl planning is determining how the risk management activities within the project will take place. It is basically the determination of how to manage project risks. Risk management planning is accomplished through planning meetings with the project team, management, customers, and other key stakeholders. The output of risk management planning is ent, the risk management plan. Risks can be placed into following major categories:  Technical Risks  Quality or Performance Risks  Project Management Risks  Organizational Risks  External Risks Project files from published information and previous projects can serve as input to risk identification. The Delphi technique allows participants to identify risk anonymously without fear of embarrassment. A survey allows results to be shared with all participants for comments on each other’s anonymous inputs. Rounds of ared surveying and analysis can create consensus on the major project risks. Triggers are warning signs that a risk is about to happen or risk has happened.

15.1. Analyzing Identified Risks
 Risks can be ranked by ordinal ranking by using such indicators as very low, low, moderate, high, and very high.

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   

Risks can also be analyzed using a cardinal ranking system of numerical values that are assigned to each risk based on its impact and pr probability. An overall project risk ranking can be used to compare the current projects with other projects in the organization. The risks can be moved into quantitative analysis for further study. Risks are assigned numeric values.

15.2. Risk Management Methods
The Monte Carlo Simulation can determine the likelihood of the project’s success, predict the costs of a specific risk exposure, and identify realistic time, scope, and cost objectives. Interviews with stakeholders and subject matter experts are an excellent start for quantitative risk analysis. ent Decision Trees help determine the cost, benefit, and value of multiple decisions. They are based on he cost of the decision and the probability of completing an objective.

15.3. Responding to Identified Risks
       Risk thresholds, defined in risk management planning, describe the acceptable level of risk within a olds, company. Risk owners are the individuals or groups that are responsible for a risk response, and should participate in the risk response planning. Risk avoidance changes the project plan to avoid the risk. Risk transference moves the risk consequence to a third party. Risk Mitigation involves actions designed to reduce likelihood of a risk occurring, reduce the impact of a risk on the project objectives, or both. Risk Acceptance acknowledges the risk exists but the risk is not worthy of a more in depth response. isk in-depth Residual Risks are risks that remain after avoidance, transference, mitigation, and acceptance.

15.4. Iterative Risk Management
    Identified risks must be tracked, monitored for warning signs, and documented. Issue logs, action-item lists, jeopardy warnings, and escalation notices are all types of communication item reports the project team and risk owners must use to document and track identified risks. Risk response audits measure the success of the responses and the effectiveness of the cost, scope, and dits quality values gained or lost by the risk responses. Earned Value analysis can measure project performance, but it can also predict and signal pending risks within the project.

16.Why Projects Fails?
        Not enough resources are available for project completion. Not enough time has been given to the project. Project expectations are unclear. Changes in the scope are not understood or agreed upon by all parties involved. Stakeholders disagree regarding expectations for the project. lders Adequate project planning is not used. Lack of effective leadership and management. Ambiguous communications and conflicts among team members.

Efficient Project management with effective management skills can make even the most difficult and complex comp projects also successful and result in utmost customer satisfaction.

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