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Project Management.

Professional
(PMP)
Redf2661@Yahoo.com
What's Up: +966558411183
Linked In: https://sa.linkedin.com/in/nasseribrahim

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Welcome
 Introducing
 Trainers Nasser Almohimeed
Start Date: 30-06-2017 End: 05-07-2017
Course Name: Project Management Professional - PMP

Session1 Break Session2 Eisha pray Session3

3:30–5:00 15 minutes 5:15–6:45 PM 30 minutes 7:15–10:00


PM PM

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‫علَىْ َوج ِْه ِْه أَهدَىْ أ َ َّمنْ يَم ِ‬
‫شي‬ ‫شي ُم ِكبًّا َ‬‫((أَفَ َمنْ يَم ِ‬
‫علَىْ ِص َراطْ ُمست َ ِقيمْ))‬
‫س ِويًّا َ‬
‫َ‬

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Project Management Certifications
• Professional in Project Management PMP

Content is based on “A Guide To


The Project Management Body
Of Knowledge” Fifth Edition
(PMBOK), and others sources.

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Who is the owner ?

Project Management Institute (PMI)


• Not-for-profit professional association. primary goal is
to advance the practice, science and profession of
project management.

• Recognized since 1969 by working PMs.


• Headquartered in Pennsylvania USA.

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PMI Certification Programs
• PMI® Certification Programs include PMP, PgMP, PMI-SP
(Scheduling Professional) PMI-RMP (Risk Mgmt
Professional).
• Individual Benefits:

 Professional/ personal recognition.


 Expedites professional advancement.
 Create job growth/ opportunities within
organizations.
 Provides framework for standardized project
management requirements.
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The Exam
• Exam Does test of:
• Your knowledge of PMI’s processes.
• Your understanding of the terms that are used.
• Your ability to apply the processes in a variety of
situations.
• Your ability to apply key formulas to scheduling,
costing, estimating, and other problems.
• Your understanding of professional responsibility as
it applies to project management.

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Continue The Exam
• It is 200 pass/fail questions.
• To pass, you have to answer 106 graded questions
correctly out off 175. That translates to 61% *.
• The other 25 questions are considered experimental
questions that PMI is evaluating for use on future
exams. However, they do not count toward your grade
and you will not know which questions count and
which don’t.

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Requirements to Apply
• To be eligible for PMP Certification, you will need to demonstrate
that you meet certain minimum criteria as below:

 With a College Diploma


 A university Degree,
 4,500 hours of project management experience,
 35 hours of project management education.

 Without a College Diploma


 A high school diploma or equivalent,
 7,500 hours of project management experience,
 35 hours of project management education.

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Validity

• The credential is valid for 3 Years.


• Candidates must recertify every 3 years by earning


60 Professional Development Units (PDUs).

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PMP Pay Scale

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Ethics in Project Management
• For this reason, PMI offers guides for practitioners like
the PMI Code of Ethics and Professional Conduct, and
an avenue to report and resolve matters involving
unethical behavior through the PMI Ethics Review
Committee.

• In-order to earn the PMP certification, applicants must


agree to the PMP code of professional conduct.

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End

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Project Management Framework

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What Is A Project?
• Project

 A Project is a temporary endeavour undertaken to


create a unique product, service or result.

 End is reached when the objectives have been


achieved, or when the project is terminated
because it’s objectives will not or cannot be met,
or when the need for the project no longer exists.

 Projects require project management.

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Project Management
• What is a Project Management?
 Project management is the application of
knowledge, skills, tools, and techniques to project
activities to meet the project requirements.

 47 project management processes which logically


categorized into five Process Groups.

 It is both a science and an art.

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Portfolio, Program, and Projects
• Portfolio refers to a collection of projects, programs,
sub portfolios, and operations managed as a group to
achieve strategic objectives.

• program is a group of related subprogram, projects,


and operations where doing them together to provides
benefit.

Again
What is Project, Project Management?

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Project Management Office

 A project management office (PMO) is a management


structure that standardizes the project-related
governance processes and facilitates the sharing of
resources, methodologies, tools, and techniques.
 A PMO may be delegated the authority to act as an
integral stakeholder and a key decision maker.

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Types of PMO:
Supportive. Supportive PMOs provide a consultative role to projects
by supplying templates, best practices, training, access to
information and lessons learned from other projects.

controlling. Controlling PMOs provide support and require compliance


through various means. Compliance may involve adopting project
management frameworks or methodologies, using specific templates,
forms and tools, or conformance to governance.

Directive. Directive PMOs take control of the projects by directly


managing the projects. The degree of control provided by the PMO is
high.

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Operations
 Are organizational function performing the ongoing
execution of activities that produce the same product or
provide a repetitive service.
 Are permanent endeavors to produce repetitive outputs,
with resources assigned to do basically the same set of
tasks according to the standards institutionalized in a
product life cycle.
 Operations require business process management or
operations management.

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Projects Vs. Operational Work

• Operations differ of:


Are ongoing.
Produce repetitive products, services, or
results.
Operations work sustain the organization
overtime.

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Role of the Project Manager

• Leadership • Team building


• Motivation • Communication
• Influencing • Decision making
• Political and cultural awareness • Negotiation
• Conflict management • Coaching
End

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Foundational Terms & Concepts

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Organizational influences on a Project

Organizational cultures and Styles


An organization’s culture and style affect how it conducts
projects. Cultures and styles are known as cultural norms,
which develop over time. Example: Shared visions, mission,
beliefs, and Regulations, Policies, and reward systems;

Organizational communications
Organizational communications capabilities have great
influence on how projects are conducted.

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Organizational Process Assets

 Organizational process assets are the plans,


processes, policies, procedures.

 It include the organization’s knowledge bases


such as lessons learned & historical info.

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Enterprise Environmental Factors

 It may have a positive or negative influence on the


outcome.
 They are considered as inputs to most planning
processes.

• Enterprise Environmental Factors include:


 Organizational culture, structure, and processes.
 Government regulations or industry standards.

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Organizational Structure

• Organizational structure is EEF which affect


the availability of resources and Influence how
projects are conducted .
• Organizational structures range from
functional to projectized, with a variety of
matrix structures in between.

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Organizational Structure
• Culture & Structure is EEF. so, a PM should understand
the differences that may affect a project as it will
have impact on the way the project is managed and
even its ultimate success.
• Three major types of organizations Structure
1. Functional Structure
2. Projectized Structure
3. Matrix Structure:
Weak Matrix - Strong Matrix - Balanced Matrix

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Functional Organization

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Projectized Organization

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Weak Matrix Organization

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Balanced Matrix Organization

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Strong Matrix

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Organizational Structure
• Project Manager’s Power

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Project Life Cycle

a collection of generally sequential or


overlapping project phases.

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Project Life Cycle

Initiating Planning

Monitoring &
Controlling

Executing

Closing

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Continue Project Life Cycle

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What is A Project Management
Process?
A package of inputs, tools and techniques,
and outputs used together to do something
on the project.

There are 47 unique processes.

The output from process are often used as


inputs into other processes.

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Essential Terms
• Progressive Elaboration

You don’t know all of the characteristics


about a product or project when you begin.
Instead, they may be revisited often and
refined,

The characteristics of the product emerge


over time, or “progressively”.

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Essential Terms
• Baseline
Baseline refers to the accepted and
approved plans & their related documents.

Baselines are prepared on triple constraints:


Scope (Quality), Time, Cost.

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Essential Terms
• Regulation
Official document that provides guidelines
that must be followed.
Issued by government or another official
organization.
• Standard
A document approved by a recognised body
that provide a guidelines. It is not
mandatory.

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Essential Terms
• Policy
Organization policy is an asset.
 Gives guidance to your action as per local
organization rule.
 Save time later in the future by preventing
you from doing something your company
would frown upon.
PMs should follow company policy.

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Essential Terms
 Sellers.
Sellers, also called vendors, suppliers, or
contractors, are external companies that
inter into a contractual agreement to
provide components or services necessary
for the project.
Business partners.
Also external companies, but they have a
special relationship with the organization.

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Essential Terms
• Project Coordinator.
Weaker than a PM.
Can't make overall project decisions.
have some authority to reassign assign resources.
Found in weak matrix or functional organization.

• Project Expeditor .
The weakest among all.
Staff assistant with little or no formal authority.
Do not have any authority of resources.
Found in a functional organization.

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Essential Terms
• The Triple Constraint Scope

Quality

 Concept that scope, time, &


cost are closely interrelated,

 Expanded view of “triple”


constrained could be
represented as a hexagon.

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Stakeholders

 Are persons or organizations who are actively


involved in the project or whose interests may be
positively or negatively affected by the performance
or completion of the project.
 The project management team must:
- Identify both internal and external stakeholders.
- Determine stakeholders requirements and
expectations.

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Continue Stakeholders

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So, we have

 5 process groups,

 10 knowledge areas,

47 project management processes,

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End

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Project Management Processes

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PMI Framework
• Framework Organized into:

 10 knowledge areas: Integration, Scope, Time, Cost,


Quality, HR, Communication, Risk, Procurement and
Stakeholder Management.
 5 process groups: Initiating, Planning, Executing ,
Monitoring and Controlling, and Closing. And
 47 Project Management Processes

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Process
A process is a set of interrelated actions and
activities performed to achieve a pre-specified
product, result, or service.
 47 unique processes composed of three
elements:
1.Inputs
2.Tools and Techniques
3.Outputs

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To Project Success

 Select appropriate processes required to meet the


project objectives.

 Comply with requirements to meet stakeholder


needs and expectations.

 Balance the competing demands.

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Organization
Important Issues:

Process groups are not completely linear.

The scope is “progressively elaborated,” which


means that some processes are performed
iteratively.

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End

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Integration Management

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Integration Management
• Integration process cover all project Phases.
• Takes a high-level view of the project from start to finish.

• Why using the word “Integration”? Changes made in any


one area of the project must be integrated into the rest
of the project.

• The PM must prioritize different objectives that are


competing for time & resources & also keep the team
focused on completing the work.

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Integration Management

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Developed Project Charter
• The document that officially starts the project.
• Work starts even before the project comes official,
but it will not be real until the charter is issued.

Inputs T&T Outputs


1. Project Statement of Work (SOW) 1-Expert Judgment Project Charter
2. Business Case 2-Facilitation
3. Agreements Techniques
3. Enterprise Environmental Factors
4. Organizational Process Assets

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Inputs
• Statement Of Work (SOW)
 a narrative description of products or services to be
delivered by the project and is provided by the
project initiator or customer.
• Business Case
A business case justification for doing the project in
first place. (Include: ROI)
• Agreements
• Enterprise Environmental Factors
• Organizational Process Assets

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Tools and Techniques
• Expert Judgement
 Used to assess the inputs to develop a project charter.
Such judgement and expertise is applied to any
technical and management details during this process.
Ex: Other units within the organization, Consultant,
subject matter experts, and
• Facilitation techniques
 Facilitation techniques have broad application within
project management processes and guide the
development of the project charter.
Ex: Agenda, Ground Rule, Brainstorming, Nominal Group

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Outputs
 Project Charter
Documents the business needs, current
understanding of the customer's needs, and the
new product, service, or result that it is intended
to satisfy, such as:
Product purpose or justification.
Measurable project objectives and related
success criteria.
High-level requirements.
High-level risks.

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Project Charter
Summery milestone schedule.
Summery budget.
Assigned PM, responsibility, and authority level,
and Name and authority of the sponsor or other
person(s) authorizing the project charter.
 Project Goal & Scope Statement.
Deliverables & Key Stakeholders.
Assumptions & Constraints.
Initial Risks & Schedule Estimates.
Cost Estimates & Success Criteria
“Signatures”

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Develop Project Mgmt Plan
• The process of documenting the actions necessary to
define, prepare, integrate, and coordinate all subsidiary
plans.
• Specifies the who, what, when, where and how.
• Progressively elaborated, meaning that it is developed,
refined, revisited, and updated.

Inputs T&T Outputs


1. Project Charter 1-Expert Judgment Project Mgmt Plan
2. Outputs from other Processes 2-Facilitation
3. Enterprise Environmental Factors Techniques
4. Organizational Process Assets

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Inputs
 Project Charter.
 Outputs from other Planning Processes.
(from other knowledge area)
 Enterprise Environmental Factors.

 Organizational Process Assets.

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T&T
• Expert Judgement.
• Facilitation Techniques.

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Outputs
• Project Management Plan

 It is “A formal, approved document that defines


how the project is managed, executed, and
controlled”.
 It may be Summary or detailed.
 It composed of one or more subsidiary management
plans and other planning documents.

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Project Management Plan and Project
documents

Differentiation Between the Project Management Plan and Project documents


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Direct & Manage Project Execution
• This is where things get done!,
• Most of the project’s time, cost, and resources are
consumed her.

Inputs T&T Outputs


1. Project Management Plan 1. Expert Judgment 1. Deliverables
2. Approved Change Requests 2. Meetings 2. Work Performance data
3. Enterprise Environmental Factors 3. PMIS 3. Change Requests
4. Organizational Process Assets 4. Project Mgmt Plan Updates
5. Project Document Updates

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Inputs
• Approved Change Requests
 It can modify policies, the project management
plan, procedures, costs, or budgets, or revise
schedules.
 It may require implementation of preventive or
corrective actions.
• Enterprise Environmental Factors
• Organizational Process Assets

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T&T
• Project Management Information System (PMIS)
 Provides access to an automated tool, such as
scheduling SW tool, a configuration management
system, and information collection system.

• Meetings
 Meetings tend to be one of three types:
− Information exchange;
− Options evaluation
− Decision making.

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Outputs
• Deliverables
 Any product, service, or result.
• Work Performance data
 Information from project activates collected as the
project progresses.
• Change Requests (not approved)
 When issues are found, it may modify project
policies, or procedures, project scope, project cost
or budget,
 It could be: Corrective Actions, Preventive Actions,
Defect Repairs.

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Continue Outputs
• Project management plan updates
 Elements of project management plan.
• Project Documents updates
 Requirements documents.
 project logs (issues, assumptions, etc.).
 Risk register, and stakeholder register.

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Monitor & Control Project Work
• Looks at all of the work that is being performed &
makes sure that the deliverables themselves & the
way in which they are being produced are inline with
the plan.
• All M&C processes compare the work results to the
plan & make whatever adjustments are necessary to
ensure that they match and that any necessary
changes in the work or the plan are identified and
made.

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Monitor & Control Project Work

Inputs T&T Outputs

1. Project Management Plan 1. Expert Judgment 1. Change Requests


2. Schedule forecasts 2. Analytical 2. Work performance reports
3. Cost forecasts Techniques 3. Project Management plan
4. Validated changes 3. PMIS updates
5. Work performance Info 4. Meetings 4. Project Documents updates
6. Enterprise Environmental Factors
7. Organizational Process Assets

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Inputs
• Project Management Plan.
• Schedule Forecasts
 This is expressed in a form of SV and SPI, variance
between planned date and forecasted finish date.
• Cost Forecasts
 Expressed in a form of CV, CPI, BAC and variance against
planned and actual expenditure .

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Continue Inputs
• Validated changes
 Approved changes that result from the Perform Integrated
Change Control process require validation to ensure that
the change was appropriately implemented.

• Work Performance Information


 Work performance information is circulated through
communication processes.
• Enterprise Environmental Factors
• Organizational Process Assets

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Tools and Techniques
• Expert Judgment
• Analytical techniques
 Analytical techniques are applied in project
management to forecast potential outcomes based on
possible variations of project or environmental
variables and their relationships with other variables.
• Project Management Information System
• Meetings

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Outputs
• Change Requests (not approved)
• Work performance reports
 Should be prepared by the project team detailing
activates, accomplishments, milestones, identified issues,
and problems,
 It can be used to report the key information including:
Current status,
Forecasts, and
Issues.
• Project Management Plan Update
• Project Document Updates
 Forecasts, Performance reports, Issue log.
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Perform Integrated Change Control
• When change occurs in one area, it is SHOULD
evaluated for its impact across the entire
project.

Inputs T&T Outputs


1. Project Management Plan 1.Expert Judgment 1. Approved Change requests
2. Work Performance Reports 2.Meetings 2. Change log
3. Change Requests 3.Change Control 3. Project Mgmt Plan Updates
4. EEF Tools
4. Project Document Updates
5. OPA

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Inputs
• Project Management Plan.
• Work Performance Reports.
• Change Requests.
• Enterprise Environmental Factors
• Organizational Process Assets

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T&T
• Expert Judgment.
• Meetings.
• Change Control Tools
 Manual or automated tools may be used.
 Tools are used to manage the change requests and the
resulting decisions.

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Outputs
• Approved Change Requests
 Approved change requests will be implemented through the
Direct and Manage Project Work process.
• Change Log
• Project management Plan Updates
 Any subsidiary management plans.
• Project Document Updates

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Close Project or Phase
• Is the process of finalizing all activates across all of
the project management process group to formally
complete the project or phase.

• Creating the necessary documentation and archives,


capturing the lessons learned, ensuring that the
contract is properly closed, and updating all org
process assets,

• It can’t be completed until the project is finished.

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Close Project or Phase

Inputs T&T Outputs


1. Project Management Plan 1.Expert Judgment 1. Final Product, Service,
2. Accepted Deliverables 2.Analytical techniques or Result Transition
3. OPA 3.Meetings 2. Organizational Process
Assets Update

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Inputs
• Project Management Plan.
• Accepted Deliverables
 Those deliverables that have been accepted
through the (Verify Scope process).
• Organizational Process Assets
 Project/phase closure guidelines or requirements
(project audits, project evaluations, and transition
criteria), and

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T&T
• Expert Judgment
Expert judgment is applied when performing administrative
closure activities. These experts ensure the project or
phase closure is performed to the appropriate standards.
• Analytical Techniques
• Meetings

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Outputs
• Final Product, Service, or Result Transition
 The transition of the final product, service, or result that
the project was authorised to produce (or in the case of
phase closure, the intermediate product, service, or
result),

• Organizational Process Assets Updates


 Project Files.
 Historical Information. Historical information and lessons
learned information are transferred to the lessons
learned knowledge base for use by future projects or
phases.

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END

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Scope Management

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Scope Management
• The overall goals of scope management are to:
 Define the need, expectations, Manage changes,
and Gain acceptance.
• Scope changes should be handled in a structured,
procedural, and controlled manner.

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Continue Scope Mgmt
• Requirements should be documented with the
acceptance criteria.
• In the project context, the term scope can refer to:
 Product Scope. The features and functions that
characterize a product, service, or result.
 Project Scope. The work that needs to be
accomplished to deliver a product, service, or result
with the specific features and functions.
• Product scope is the “what” part (functional
requirements).
• Project scope is the “how” part (work related).
• 101
Scope Management
Scope Creep (requirement creep, function creep)
Refers to changes, continuous or uncontrolled growth in
a project’s scope.

• It occurs when the scope of a project is not properly


defined, documented, or controlled.

Gold Plating concept


• Giving the customer more than what he originally asked
for.
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Plan Scope Management
Plan Scope Management is the process of creating a
scope management plan that documents how the project
scope will be defined, validated, and controlled.

Inputs T&T Outputs

1. Project Management Plan 1. Expert Judgement. 1. Scope Management Plan


2. Project Charter 2. Meetings 2. Requirements Management Plan.
3. OPA
4. EEF

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Plan Processes Themes

Plan KA Management
…….

Inputs T&T Outputs

1. Project Management Plan 1. Expert Judgement. 1. KA Plan


2. Project Charter 2. Meetings
3. OPA 3. Facilitation Techniques
4. EEF 4. Group Decision Techniques.

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Outputs
Scope Management Plan
 The components of a scope management plan include:
 Process for preparing a detailed project scope statement;
 Process that enables the creation of the WBS from the
detailed project scope statement;
 Process that establishes how the WBS will be maintained
and approved;

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Continue Outputs
Requirements Management Plan
• The requirements management plan is a component of the
project management plan that describes how requirements
will be analyzed, documented, and managed. It include, but
are not limited to:
 How requirements activities will be planned, tracked, and
reported.
 Requirements prioritization process;
 Product metrics that will be used and the rationale for
using them.

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Collect Requirements
• Defining and documenting stakeholder’s needs,
• The project success is directly influenced by the care
taken in capturing and managing project and product
requirements,
• It could categorize into:
 Project requirements.
 Product requirements.

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Collect Requirements

Inputs T&T Outputs

1. Scope Management 1. Interviews 1. Requirements


Plan 2. Focus group documentation
2. Requirement 3. Facilitated workshops 2. Requirements traceability
Management Plan 4. Group creativity techniques Matrix
3. Stakeholder 5. Group decision making techniques
management plan 6. Questionnaires and surveys
4. Project Charter 7. Observations
5. Stakeholder 8. Prototypes
Register 9. Benchmarking
10. Context diagrams
11. Document analysis

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Inputs
• Stakeholders Management Plan
• The stakeholder management plan is used to understand
stakeholder communication requirements and the level of
stakeholder engagement.
• Project Charter

• Stakeholder Register

 Used to identify stakeholders that can provide


information on detailed project and product
requirements.

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T&T
• Interviews
 Formal or informal approach to discover info from
stakeholders by talking to them directly.
• Focus Groups
 Bring together prequalified stakeholders and
subject matter experts to learn about their
expectations about a proposed project.
• Facilitated Workshop
 Primary technique for defining cross-functional
requirements and reconciling stakeholder
differences, focused sessions that bring key cross-
functional stakeholders together to define product
requirements.

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Continue T&T

• Group Creativity Techniques


 Brainstorming
 Nominal Group Technique
 Idea/Mind Mapping
 Affinity Diagram
 Multi criteria decision analysis

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Continue T&T
• Group Decision Making Techniques
 Assess multiple alternatives with an expected
outcome in the form of future actions resolution.
 There are multiple methods for reaching a group
decision, Ex:
 Unanimity . Everyone agrees.

 Majority . More than 50% agrees.

 Plurality. Less than 50% agrees.

 Dictatorship . One individual makes the decision


for the group.
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Continue T&T
• Questioners and Surveys
• Observations
• Prototypes
 Obtaining early feedback on requirements by
providing a working model of the expected product
before actually building it.
 It supports the concept of progressive elaboration.

113
Continue T&T
Benchmarking
 Benchmarking involves comparing planned practices to those
of comparable organizations to identify best practices.

Context diagrams
 Context diagrams show inputs to the business system, the
actor(s) providing the input, the outputs from the business
system, and the actor(s) receiving the output.

Document Analysis
Document analysis is used to elicit requirements by analyzing
existing documentation and identifying information relevant to
the requirements.
114
Outputs
• Requirements Documentation
Requirements may start out at a high level and become
progressively more detailed as more is known.

 Acceptance criteria.
 Impact to other entities inside & outside the org.
 Support & training requirements.
 Requirements assumptions & constraints.

115
Continue Outputs
• Requirements Traceability Matrix

 Tables that links requirements to their origin and traces


them throughout the project life cycle.

 It helps ensures that each requirement adds business


value by linking it to the business and project objectives.

 High-level requirements to more detailed requirements.

 It helps identifying key info about the requirements.

116
Define Scope
A detailed understanding of the requirements to be executed,
verified, and delivered. It is this process where the
requirements are gathered and documented.

Inputs T&T Outputs

1. Scope Management Plan 1. Expert Judgment 1. Project Scope Statement


2. Project Charter 2. Product Analysis 2. Project Document Update
3. Req. Documentation 3. Alternatives Identification
4. OPA 4. Facilitated Workshops

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Statement Of Work
VS
Scope Statement

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Inputs
• Scope Management plan

• Project Charter

• Requirements Documentation.

• Organizational Process Asset

119
Tools and Techniques
• Expert Judgment
• Product Analysis
 Detailed Analysis of the project’s product, service,
or result, with the intent of improving the project
team’s understanding of the product and the
requirements.
• Alternatives Identification
 To make sure that the team is properly considering
all options as they relate to the project’s scope.
 Techniques to generate creative thought are used.
• Facilitated Workshops

120
Outputs
• Project Document Updates
• Project Scope Statement
 More detailed than the SOW.
 It includes:
Goal of the project.
Product descriptions.
Identified risk up to now.
Acceptance criteria.
Cost estimate.
Project exclusions, assumptions, constraints.

121
Create WBS ((Team Work))
The process of sub dividing project deliverables and
project work into smaller more manageable components.

Inputs T&T Outputs

1. Scope Management Plan 1. Decomposition 1. Scope Baseline


2. Project Scope Statement 2. Expert Judgment 2. Project doc updates
3. Requirements Documentation
4. Org Process Assets
5.Enterprise Env Factors

122
T&T
• Decomposition
 Breaking down the project deliverables into
components (the work package level).
 In the WBS, top layer is very general (just name),
and each subsequent layer is more and more
specific. Every level is the detailed explanation of
the level above it.
 To what level we decompose?
 Are tour work packages small enough to be
manage and estimated for time and cost.
• Expert Judgment

123
Outputs
• Scope Baseline
Which include :
Project Scope Statement.
Work Breakdown Structure. (WBS)
WBS Dictionary .

124
Continue WBS

 Elements of a Good WBS


It must be detailed down to a low level. The
lowest level called work packages.
Graphically, arranged, where each sub-level rills
up to the level above it.
The project team with the PM creates it. It can
be means of team building.
It helps define responsibilities for the team.
It is a communicational tool.

125
Continue WBS

The 100% Rule: the sum of the work at the "child"


level must equal 100% of the work represented by the
"parent“.

126
• 80 hour rule: No ”lowest level of detail of the WBS” to
produce a single deliverable should be more than 80 hours
of effort.
• Rule of thumb: No “lowest level of detail of the WBS”
longer than a single reporting period.

127
Continue Outputs
• WBS Dictionary
 A document that detail information to the contents
(nodes) of the WBS.
 WBS dictionary may include, but is not limited to:
○ Code of account identifier. ○ Description of work.
○ Assumptions and constraints. ○ Responsible organization.
○ Schedule milestones. ○ Associated schedule activities.○
Resources required.
○ Cost estimates.○ Quality requirements. ○ Acceptance
criteria,○ Technical references. and ○ Agreement
information.
• Project Document Updates

128
Example
• SAAD want to re-qualify his bed room; he
decide to change his bed, paint walls, buy
new sofa and Get rid of old furniture's.
• Since he do not have enough budget; he
also decide to keep some money from his
monthly salary for three months.

129
Example

“SAAD Room Re-qualify Project”


Could you create WBS for this project?

130
Option 1
Requalified Room Project

1.3 1.4
1.0 1.2
Get rid old Change sofa
Collect Money Paints walls Furniture's

131
Option 2
Requalified Room Project

1.0 1.2 1.3


Planning Implementing Get rid old Furniture's

132
Validate Scope
Validate Scope is the process of formalizing acceptance of
the completed project deliverables.
• Scope Validation & Quality Control
 Both inspect the product against the scope.
 SV performed after QC & can be performed at the
same time.
• Difference:
 SV focuses on the completeness of the work, while
QC focuses on the correctness of the work.

133
Validate Scope

Inputs T&T Outputs


1. Project Management Plan 1. Inspection 1. Accepted Deliverables
2. Requirements Documentation 2. Group decision 2. Change Requests
3. Requirements Traceability Matrix making techniques 3. Work performance Info
4. Verified Deliverables 4. Project Document Updates
5. Work Performance data

134
Inputs

• Project Management Plan

• Requirements Documentation

• Requirements Traceability Matrix

• Verified Deliverables
• Work Performance data

135
T&T
• Inspection
 Includes activities such as measuring, examining and
verifying to determine whether work and
deliverables meet requirements and product
acceptance criteria.
 They are sometimes called reviews, product
reviews, audits, and walkthroughs.

• Group decision-Making techniques

136
Outputs
• Accepted Deliverables
Performed by the PM, the sponsor, the customer, and
the functional managers.
• Change Requests
• Work Performance information
 Work performance information includes information
about project progress, such as which deliverables have
started, their progress, which deliverables have finished,
or which have been accepted.
• Project Document Updates

137
Control Scope
An on-going process that begins as soon as the scope
baseline is created where each scope change request
should be controlled and managed.

Inputs T&T Outputs


1. Project Mgmt Plan Variance Analysis 1. Work Performance
3. Requirements Doc information
4. Requirements Traceability 2. Change Requests
Matrix 3. Project Mgmt Plan Updates
5.Work Performance data 4. Project document Updates
6. Org Process Assets 5. Org Process Assets Updates

138
Inputs

• Project Management Plan


• Requirements Documentation.
• Requirements Tractability Matrix.
• Work Performance data
 Work performance data can include the number of
change requests received, the number of requests
accepted or the number of deliverables completed, etc.

139
T&T
• Variance Analysis
 Used to measure differences between what was
defined in the scope baseline and what was
actually created.

 A way to investigate and understand the root


causes behind the differences.

140
Outputs

• Work Performance Information


• Change requests
• Project Management Plan Updates
• Project Document Updates
 Requirements documentation.
 Requirements traceability matrix.

141
End

14
Time Management

14
144
Time Management
• The PM should be in control of the schedule.

• Schedule is built from the ground up, derived from


the scope baseline and other info, and rigorously
managed throughout the life of the project.

145
Plan Schedule Management
Plan Schedule Management is the process of establishing the
policies, procedures, and documentation for planning,
developing, managing, executing, and controlling the project
schedule.

Inputs T&T Outputs


1- project management plan. 1-Expert Judgement. 1-Schedule Management Plan
2- project charter. 2-Analytical Technique.
3- EEF. 3-Meeting.
4- OPA.

146
Outputs
• Schedule Management Plan
 A component of the project management plan that
establishes the criteria and the activities for developing,
monitoring, and controlling the schedule. The schedule
management plan may be formal or informal, highly
detailed.
 For example, the schedule management plan can
establish the following:
 Project schedule model development, Level of accuracy.
 Control thresholds, and Process descriptions.
 Rules of performance measurement, reporting formats.
147
Define Activities
Identifying the specific actions to be performed to
produce the deliverables, WBS identifies the deliverables
at the lowest level in the WBS, the work package.
 Project work packages are decomposed into smaller
components called activities that represents the work
necessary to complete.

Inputs T&T Outputs


1. Schedule Mgmt plan 1. Decomposition 1. Activity List
2. Scope Baseline 2. Rolling Wave Planning 2. Activity Attributes
3. EEF. 3. Expert Judgment 3. Milestone List
4. OPA.

148
Inputs
• Schedule management plan
• Scope Baseline
 The project deliverables, WBS, constraints, &
assumptions documented in the project scope
baseline are considered explicitly when defining
activities.

• Enterprise Environmental Factors


• Organizational Process Assets

149
T&T
• Decomposition
 Subdividing the work packages into smaller, more
manageable components called activities.
 Involving team members in the decomposition can
lead to better and more accurate results.

• Rolling Wave Planning


 A form of progressive elaboration that models
project planning the way we see things in the real
world.

150
Outputs
• Activity List
 All of scheduled activities that need to be performed,
 Finally, activities are used to create the project
schedule.
• Activity Attributes
 For planning, we need to have additional info about
activities.
 It is an expansion of the activity list and it will be seen
with it.
• Milestone List
 A significant point or event in the project.
 Imposed, dates based on contractual obligation.
 Optional, dates based on historical information.

151
Ex: Activity list

152
Ex: activity attribute

153
Sequence Activity
Identifying and documenting relationships among the
project activities.
We can use project management software or using
manual or automated techniques.
Ex: MS Projects, primavera.

Inputs T&T Outputs

1. Schedule Mgmt plan 1. Precedence Diagramming 1. Project Schedule


2. Activity List Method (PDM) Network Diagrams
3. Activity Attributes 2. Dependency Determination 2. Project Document
4. Milestone List 3. Leads and Lags Updates
5. Project Scope Statement
6. EEF
6. OPA
154
Inputs

• Schedule Management plan.


• Activity List.
• Activity Attributes.
• Milestone List
• Project Scope Statement
• Organizational Process Assets

155
T&T
• Precedence Diagramming Method (PDM) or (AON)
or AOA
 Used in Critical Path Method (CPM) for
constructing a project schedule network diagram.
 Activities are represented by the node
(Rectangles), with arrows representing the
dependencies between them.

156
PDM

157
Note:
PDM is Activity on NODE (AON); it mean activity present
by node.
While Activity On Arrow(AOA); activity present by Arrow.

158
Continue T&T
• PDM includes four types of dependencies or logical relations:

 Finish-to-start (FS): The initiation of the successor


activity depends upon the completion of the predecessor
activity.

 Finish-to-finish (FF): The completion of the successor


activity depend upon the completion of the predecessor
activity.

 Start-to-star (SS): The initiation of the successor activity


depends upon the initiation of the predecessor activity.

 Start-to-finish: The completion of the successor activity


depend upon the initiation of the predecessor activity.

159
Continue T&T

• Dependency Determination

 Mandatory Dependencies: can’t be broken. Also know


as hard logic.

 Discretionary Dependencies: soft logic or preferred


logic. Can be a result of best practices that means it is
based on historical information,
 External Dependencies.
 Internal Dependencies.

160
Continue T&T
• Leads and Lags

 A lead: One activity getting a jump start on


another.
 It allows the acceleration of the successor activity.
Ex. Finish-to-Start Activity (mandatory)

161
Continue T&T
 A lag : a waiting period that exists
(must occur) between two activity.

 It directs a delay in the successor activity.

 During this lag there is no work to performed.


 Ex. Start-to-Start Activity (discretionary)

162
Outputs
• Project Schedule Network Diagram

 No dates are assigned to the activities yet.


 Include full representation of every activity with
enough documentation so the flow of activity can be
understood.
• Project Document Updates

 Activity list.
 Activity attributes.
 Risk register.

163
Exercise1

Part of Activity List for retail Department development Project


Activity Description Predecessors Duration-Month
A Review customer complaints - 2
B Review old process flow - 3
documents
C Specify repeated procedures B 1
D Make short list of complaints A 1
E Make required change to satisfy D 4
customer
F Approve for changes and delete C,E 1
repeated procedures
G Update process flow F 1
H Inform interested party G 1

Draw PDM for above activity list


164
165
Estimate Activity Resource
Analysing project activity to determine the type and quantities of
material, people, logistics, or supplies required to perform each
activity.

Inputs T&T Outputs


1. Schedule Management Plan 1. Expert Judgment 1. Activity Resource
2. Activity List 2. Alternatives Analysis Requirements
3. Activity Attributes 3. Published Estimating 2. Resource Breakdown
4. Resource Calendars Data Structure
5. Risk Register 4. Bottom-Up Estimating 3. Project Document
6. Activity cost Estimates 5. Project Mgmt Software Updates
7. EEF.
8. OPA.

166
Input
• Schedule Management Plan
• Activity List
• Resource Calendars
 Information on which resources are potentially available
(when and how) during the activity period,
• Risk Register
 Risk events may impact resource selection and availability.
Updates to the risk register are included with project
documents updates.
 Risk Register Example

167
Continue Inputs

• Activity cost Estimates


 The cost of resources may impact resource selection.
• Enterprise Environmental Factors
• Organizational Process Assets

168
T&T
• Expert Judgement.
• Bottom-Up Estimating
• Alternative Analysis
 Outsourcing an activity, purchasing a S.W. component
rather than building it, or using a totally different
approach to complete the activity.
• Published Estimating Data
 Data available through published, recognized sources
that can help in estimating,
• Project Management Software

169
Outputs
• Activity Resource Requirements
 The type & quantity of resources required for each
schedule activity is the primary output.
Ex. Two senior programmers are required for 4
months.
• Resource Breakdown Structure (RBS)
 Similar to WBS, is a hierarchical structure of the
identified resources by resource category &
resource type.
 It is useful for organizing and reporting project
schedule data with resource utilization
information.

170
Continue Outputs
• Project Document Updates
 Activity list.
 Activity attributes.
 Resource calendar.

171
Estimate Activity Durations
• Analyze each activity in the activity list to estimate
how long it will take. It focuses on determining the
duration.

• It requires the amount of work effort required to


complete is estimated and the amount of resources
to be applied to complete the activity is estimated,
these are used to approximate the number of work
periods needed to complete the activity.

• project management software can be used.

172
Estimate Activity Durations

Inputs T&T Outputs


1. Schedule Management Plan 1. Expert Judgment 1. Activity Duration
2. Activity List 2. Analogous Estimating Estimates
3. Activity Attributes 3. Parametric Estimating 2. Project Document
4. Activity Resource 4. Three-Points Estimates Updates
Requirements 5. Group Decision Making
5. Resource Calendar Techniques
6. Project Scope Statement 6. Reserve Analysis
7.Risk Register
8.Resource Breakdown structure
9.EEF
10. OPA

173
Inputs
• Schedule Management Plan
• Activity List.
• Activity Attributes.
• Activity Resource Requirements
 The resources assigned to the activity, and the
availability of the resources will influence the
duration of most activities.
• Resource Calendars
 The type, availability, & capabilities of human
resources.
 The type, quantity, availability, & capability when
applicable, of both equipment & material resources.

174
Continue Inputs
• Project Scope Statement
• Risk Register
 The risk register provides the list of risks, along with the
results of risk analysis and risk response planning.
• Resource Breakdown Structure
 provides a hierarchical structure of the identified
resources by resource category and resource type.
• Enterprise Environmental Factors
• Organizational Process Assets
Duration estimating databases and other reference data,
175
T&T
• Expert Judgement.
• Analogous Estimating
Top-Down Estimating use info from a previously
performed project to estimate the current project.

Uses parameters such as duration, budget, size, weight,


and complexity as the basis for estimating.

• Parametric Estimating
It can produce a higher levels of accuracy.
Uses statistical relationship between historical data and
other variables.

176
Continue T&T
• Three-Point Estimating (PERT) : PERT, use three data points for
the duration instead of simply one.
 Pessimistic, Most Likely or realistic, and Optimistic
estimates,
 Formula: Pessimistic + 4XMost Likely + Optimistic
6
 Standard Deviation for an Estimate:
Sigma= Pessimistic – Optimistic
6
• Two commonly used formulas are triangular and beta
distributions. The formulas are:
• Beta distribution tE = (tO + 4tM + tP) / 6

177
Continue T&T
• Group Decision-Making techniques
• Reserve Analysis
 Reserve time or Contingency and some time
referred to as buffer into the overall project
schedule to account for schedule uncertainty,
 Revisited throughout the life of the project, being
revised up or down as more info on schedule risk
becomes available.

178
Outputs
• Activity Duration Estimates
 Quantitative assessments of the likely number of
work periods that will be required to complete an
activity.
 Contains an estimated duration for each activity in
the activity list.
• Project Document Updates
 Activity attributes, and
 Assumptions made in developing the activity duration
estimate such as skill level and availability.

179
Develop Schedule
• Analyzing activity sequences, durations. resource
requirements, and schedule constraints to create the
project schedule.

• Developing an acceptable project schedule, it


determines the planned start and finished dates for the
project activities and milestones.

• Revising and maintaining a realistic schedule continues


throughout the project as work progresses.

180
Continue Develop Schedule
Inputs T&T Outputs

1. Schedule Management Plan 1. Schedule Network Analysis 1. Schedule Baseline


2. Activity List 2. Critical Path Method (CPM) 2. Project Schedule
3. Activity Attributes 3. Critical Chain Method 3. Schedule Data
4. Project Schedule Network 4. Resource Optimization 4.Project Calendars
Diagrams techniques 5.Project
5. Activity Resource Requirements 5. Modeling Techniques Management plan
6. Resource Calendars 6. Leads and Lags updates
7. Activity Duration Estimates 7. Schedule Compression 6. Project Document
8. Project Scope Statement 8. Scheduling Tool Updates
9.Risk Register
10.Project staff assignment
11.Resource Breakdown Structure
12. Enterprise Environmental
Factors
13. Org Process Assets
181
Inputs
• Schedule Management Plan
• Activity List.
• Activity Attributes.
• Project Schedule Network Diagram.
• Activity Resource Requirements.
• Resource Calendars.
• Activity Duration Estimates.
• Project Scope Statement.
• Risk Register
• Project Staff Assignment
• Resource Breakdown structure
• Enterprise Environmental Factors.
• Organizational Process Assets.
182
T&T

• Schedule Network Analysis

 The technique of identifying early and late start


dates, as well as early and late finish dates, for the
uncompleted portions of project schedule activities.

Slack Time : amount of time the Task can be


delayed without delay project

SL = LS – ES OR SL= LF-EF

183
Schedule Network Analysis

184
Continue T&T
• Critical Path Method

 The critical path method, used to estimate the


minimum project duration and determine the
amount of scheduling flexibility on the logical
network paths within the schedule model.

 Any delay of any activity locate on Critical Path,


will effect direct of project finish dates.

185
Exercise

What Critical Path ?

186
Continue T&T

• Critical chain method


 It is an upgraded version of the critical path
method, which is a more practical approach to
developing the project schedule.
 In critical chain method, the availability of
resources is taken into consideration while drawing
the network diagram.

187
Continue Critical Chain Method
 PM should Add “buffers” between activities and make
sure not to exceed your buffer.

 PM should Add “buffers” between activities and make


sure not to exceed your buffer.
188
Continue Critical Chain Method

 To achieve this, you first must perform the critical


path analysis and then analyze resource constraints
and probabilities in order to build the schedule and
the buffers.

 The size for each buffer should account for the


uncertainty in the duration of the chain, of
dependant tasks leading up to that buffer.

189
Continue Critical Chain Method

• Project Buffer
This buffer is placed between the last task and the project completion date
as a non-activity buffer.
• Feeding Buffers
They are inserted between the last task on a non-critical chain and the
critical chain.
• Resource Buffer
These buffers are kept alongside the critical chain to make sure that they
are available when they are required.
190
Continue T&T

• CRITICAL PATH VS CRITICAL CHAIN


 The critical path method (CPM) is a popular approach to
project scheduling that considers the amount of float on
project activities.
 Critical chain takes CPM a step further by adding time
buffers to account for limited resources.

191
Continue T&T
• Resource Optimization Techniques
1.Resource Leveling

 A technique in which start and finish dates are


adjusted based on resource constraints with the
goal of balancing demand for resource with the
available supply.

 It often cause the original critical path to change.

((extend time to reduce resource load))


In case no more resource's

192
Continue T&T

2. Resource Smoothing
 A technique that adjusts the activities of a schedule
model such that the requirements for resources on the
project do not exceed certain predefined resource
limits.

((Move work to other resources if the load is over))

193
Continue T&T
• Modeling Techniques
Examples of modeling techniques include, but are not
limited to:
1. What-If Scenario Analysis.
2. Simulation
Simulation involves calculating multiple project durations
with different sets of activity assumptions, usually using
probability distributions constructed from the three-point
estimate.
• Leads and Lags

194
Continue T&T
• Schedule Compression
 Fined ways to complete the project earlier without
cutting the project’s scope:
1. Crashing: adding resources to the project
activity. It almost always increase cost.
2. Fast Tracking: re-ordering the sequence of
activities so that the some of the activities are
performed in parallel, or at the same time. It
does not necessary increase cost, but it
increases risk.

195
Continue T&T

• Scheduling Tool
 Automated scheduling tools expedite the
scheduling process by generated start and finish
dates based on the inputs of activities, network
diagrams, resources, resources and activity
durations.

196
Outputs
• Schedule Baseline
 A schedule baseline is the approved version of a schedule
model that can be changed only through formal change
control.
• Project Schedule

 Shows when each activity is scheduled to begin and end,


as well as schedule start and finish for overall project.

 It may be presented in summery form, sometimes


referred to as the master schedule or milestone schedule,
or presented in detail,

197
Continue Outputs
 Milestone Charts Similar to bar charts, but only
identify the scheduled start or completion of major
deliverables or milestones and key external
interfaces.
 Provides general level of information.
 Used for brief, high level presentations where a lot
of schedule detail would be undesirable.

198
Milestone Charts

199
Continue Outputs
 Bar Charts (Gantt Chart) representing activities, show
activity starts and end dates, durations.
- Easy, and frequently used. Show percentage complete
- Represents the activity on horizontal bars with calendars.
- The length of the bar corresponds to the length of the time
the activity should require.

 Project Schedule Net. Diagram. show interdependencies,


the sequences, and the critical path.
- Can be presented in the activity-on-node diagram format, or
presented in a time-scale schedule network diagram format,
sometimes called a logic bar chart.

200
Bar Charts (Gant Chart)

201
Continue Outputs

• Schedule Data
• Schedule Baseline

 It is accepted and approved by the project management team


as the schedule baseline with baseline start dates and
baseline finish dates.

202
Continue Outputs

• Project calendars
Identifies working days and shifts that are available for
scheduled activities
• Project Management Plan Updates
• Project Document Updates

203
Control Schedule
• Concept of any controlling process, is to compare the work
results to the plan and ensure that they line up.

• Schedule is controlled to make sure that time-related


performance on the project is inline with the plan.

• Determining the current status of the schedule.

• Influencing the factors that create schedule changes.

• Determining that the project schedule has changed.

204
Control Schedule

Inputs T&T Outputs

1. Project Mgmt Plan 1. Performance Reviews 1. Work Performance


2. Project Schedule 2. Project Mgmt software Information
3. Work Performance 3. Resource optimization 2.Schedule Forecasts
data techniques 3. Change Requests
4.Project Calendars 4. Modeling Techniques 4. Project Mgmt Plan updates
5.Schedule Data 5. Leads and Lags 5. Project Document Updates
6. Organizational 6. Schedule Compression 6.Organizational process assets
Process Assets 7. Scheduling Tool update

205
Inputs

• Project Management Plan


• Project Schedule
• Project Calendars
• Schedule Data
• Organizational Process Assets
• Work performance data

206
T&T
• Performance Reviews

1.Trend Analysis
2.Critical path method.
3.Earned value management (cost management chapter).
4.Critical Chain Method

• Project Management Software

207
Continue T&T

• Resource Optimization Techniques


• Modeling Techniques
• Leads and Lags
• Schedule Compression

• Scheduling Tools

208
Outputs
• Work Performance Information
• Change Requests.
• Project Management Plan Updates
• Project Document Updates
• Organizational Process Assets Updates

209
End

21
Cost Management

21
212
Cost Management
• Third main project constraint, based of The Triple
Constraint model.
• PM should have a well-defined WBS, an activity list with
resource and duration estimates for all activities.

• PM should M&C cost against time, scope, quality, and


risk to ensure that all projection remain realistic and
clearly defined.

213
Plan Cost Management
Plan Cost Management is the process that establishes the
policies, procedures, and documentation for planning,
managing, expending, and controlling project costs.

Inputs T&T Outputs


1- project management plan. 1-Expert Judgement. 1-Cost Management Plan
2- project charter. 2-Analytical Technique.
3.EEF. 3-Meeting.
4.OPA.

214
Outputs
• Cost Management Plan
 The cost management plan is a component of the project
management plan and describes how the project costs will be
planned, structured, and controlled.

For example, the cost management plan can establish the


following:
- Units of measure. - Level of accuracy
- thresholds(upper & lower limit) - Process descriptions
- Rules of performance measurement
- Organizational procedures - reporting formats
215
Estimate costs
Estimate Costs is the process of developing an approximation
of the monetary resources needed to complete project
activities.

 Estimation become more mature and accurate while project


progressing.

Estimate Type Range


Rough Order of Magnitude Estimate
From -50% to +100%
at project initiation

Preliminary Estimate (Used for approvals) From -20% to +30%

Definitive Estimate (Used for project control) From -15% to +20%

Detailed Cost (Used for bid preparation) From -10% to +15%

216
Estimate Costs

Inputs T&T Outputs

1.Cost management Plan 1. Expert Judgment 1. Activity Cost Estimates


2.HR Management plan. 2. Analogues Estimating 2. Basis of Estimates
3. Parametric Estimating 3. Project Documents Updates
3. Scope Baseline
4. Bottom-up Estimating
4. Project Schedule
5. Three-point estimates
5. Risk register
6. Reserve analysis
6. EEF
7. Cost of quality
7. OPA
8. Project Management SW
9. Vendor Bid Analysis
10.Group decision making tech.

217
Inputs
• Cost Management Plan
• Human Resources Management Plan
 Provides project staffing attributes, personnel rates, and
related rewards/recognition, which are necessary
components for developing the project cost estimates.
Human Resource Management Plan input on Estimate Costs?

• Scope baseline :
Scope statement – WBS – and WBS dictionary
• Project Schedule.
• Risk Register.
• EEF & OPA.
218
T&T
• Expert Judgment:
• Analogous Estimating (Top Down)
• Parametric Estimating
• Bottom-Up (Detailed) Estimating
• Three point estimate:

219
T&T
• Reserve Analysis
 Reserve amount also called Contingency.
 The reserved amount should be analyzed to ensure that
the amount of reserve being planned reflects the risk
associated with the project.
• Cost of Quality (COQ) (During Product life cycle)
 Refers to all of the costs that are incurred to (prevent
defects) in products or costs that (result from defects)
in the products.
 Also used in the quality planning process.

220
T&T
• Project Management Estimating Software:
 Computerized applications like spreadsheets,
simulations and statistical tools.
• Vendor Bid Analysis
 Bids should be analyzed, to improve the project
team’s understanding of cost.

• Group decision-Making techniques

221
Outputs
• Activity Cost Estimating
 How much it would cost to complete each schedule
activity.
• Basis of estimates
 Document of the basis of estimates.
 Document of all assumptions.
 Document of any known constrains.
 Confidence level of final estimates.
• Project Documents Updates

222
Determine Budget
aggregating the estimated costs of work packages to
establish an authorized cost baseline.

 It distribute cost on time phases so that the


performing org. will know how to plan for cash flow
and likely expenses.

 It should be performed after activity definition,


activity duration estimate, and activity resource
estimate have been performed.

223
Determine Budget

Inputs T&T Outputs

1.Cost Management Plan 1. Cost aggregation 1. Cost baseline


2.Scope Baseline 2. Reserve analysis 2. Project Funding
3. Expert judgment Requirements
3. Activity Cost Estimate
4. Historical information 3. Project Documents
4. Basis Of Estimates
5. Funding limits reconciliation Updates
5. Project Schedule
6. Resource Calendars
7.Risk Register
8. Agreements
9. OPA

224
Inputs
• Cost Management Plan
• Scope Baseline
• Basis of estimates
• Project schedule
• Recourse calendar
• Risk Register
• Agreements
• OPA

225
T&T
• Expert Judgment
• Cost Aggregation
 Costs are estimated at an activity level, these estimates
should be aggregated to the work package level where
they will be measured, managed, and controlled during
the project.
• Reserve Analysis
 Related to risk.
 Almost all projects maintain a financial reserve to
protect them against cost overrun.
 How much they keep, how they track it vary from
project to another. These buffers go by various names
such as management reserve, and Contingency reserve.

226
• Reserve Analysis

227
Continue T&T
• Historical Relationship (Parametric Estimation)
A good way to check the validity of your budget is to compare
it with any historic data or industry data that show cost
relationships.

• Funding Limit Reconciliation


The process of identify any variances between the funding
limits and the planned expenditures.

228
Outputs
• Cost Baseline
 Provides Budget at completion.
 Specifies what costs will be incurred & when.
 Larger project may be divided into multiple cost
baselines.
• Project Funding Requirements
 Cost Baseline is used to determine the project’s
funding requirements that are almost always related
to the planning expenditures, but not identical to
them.
 They also should include any planned contingency or
reserve funds, since these must be available to the
project as soon as they are needed.
• Project documents updates
229
230
Control Cost

Inputs T&T Outputs


1. Project mgmt plan 1. Earned value mgmt 1. Work performance Info.
2. Project funding Req. 2. Forecasting 2. Cost forecasts
3. Work Performance data 3. To-complete 3.Change requests
4. OPA performance index 4.Project mgmt. plan updates
4. Performance reviews 5.Project document updates
5. Project mgmt Software 6. OPA update
6. Reserve analysis

231
Inputs
• Project management plan
• Project Funding Requirements
• Work performance Data
• Organization process assets

232
T&T
• Earned value management (EVM)
It’s a method of performance measurement, it
integrates project scope, cost and schedule to help
measure project performance.
EVM monitor, three monitory values:
Planned value - Earned value - Actual cost
• By EVM Project manager will know whether the project is:
− ahead of / on / behind schedule
− under / on / over budget

233
EVM
Planned Value (PV):
 How much Work should have been completed at a point in
time based on the plan.
 The authorized budget assigned to be accomplished.
 (Planned % complete X BAC)
 Total PV for the project is also known as (BAC)
Earned Value (EV) :
 The monitory value of work performed.
 Delivered by measuring where you actually are in terms of
work completed during a given period of time in the
schedule.
Actual Cost (AC):
 The actual cost incurred.
 The money spent during a given period of time.

234
EVM
EVM monitor, two variances
 Cost Variance:
• The difference between what we expected to spend
and what was actually spent.
• CV= EV-AC

 Schedule Variance:
• The difference between where we planned to be in
the schedule and where we are in the schedule.
• SV=EV-PV.

235
EVM
 Schedule performance index.
• It measures how efficiently the project team is
using its time.
• SPI = EV/PV
 Cost performance index.
• The cost performance index (CPI) is a measure of
the cost efficiency of budgeted resources,
expressed as a ratio of earned value to actual
cost.
• CPI = EV/AC

236
Exercise
Earned Value Management

Assume 4 equal sides, budget 200$ per side, schedule 1 side per
day. Finish 4 days & cost 800$.
Day1: side 1 complete, budget of 200$ spent.
Day2: side 2 started but not complete, expected budget 220$
Day3: side 2 complete, and half of side 3 completed but team left
early and only spent 140$

Where we are now? Ahead or Behind


237
4 equal sides, budget
200$ per side, 1 side per
day. Finish 4 days & cost
800$.
Day1:side 1 complete,
budget of 200$ spent.
Day2:side 2 started but
not complete, expected
budget 220$
Day3:side 2 complete,
and half of side 3
completed but team left
early and only spent 140$

238
EVM Example:

239
Continue T&T
 Forecasting.

− EAC forecast for ETC work performed at the budgeted


rate. This EAC method Equation: EAC = AC + (BAC - EV)
− EAC forecast for ETC work performed at the present
CPI Equation: EAC = BAC / CPI
− EAC forecast for ETC work considering both SPI and
CPI factors. Equation:
EAC = AC + [(BAC - EV) / (CPI x SPI)]

240
Exercise
Earned Value Management
• Project of Highway Paving 100 Km; for each 10 Km we need
a month with cost 100 k$, total project budget is 1 million
and duration 10 Month.
• MONTH1: 10 km complete, budget of 90k spent.
• MONTH2: 15 km complete, budget of 150k spent.
• MONTH3: 15 km complete, budget of 110k spent.
• MONTH4: 10 km complete, budget of 100k spent.

Where we are now? Ahead or Behind


241
Answer
• PV ; EV ; AC ;
• CV= EV-AC
• SV=EV-PV
• CPI = EV/AC
• SPI = EV/PV

242
Answer
• PV = 100 + 100 + 100 + 100 = 400 k
• EV = (10+15+15+10)=50 km * 100k = 500k
• AC = 90 + 150 + 110 + 100 = 450 k
• CV= EV-AC = 500 – 450 = 50
• SV=EV-PV = 500 – 400 = 100
• CPI = EV/AC = 500 /450 = 1.1
• SPI = EV/PV = 500 / 400 = 1.25

243
T&T
• To-Complete Performance Index (TCPI)
Is a measure of the cost performance that is required to
be achieved with the remaining resources in order to
meet a specified management goal .
TCPI = (BAC-EV)/(BAC-AC)
TCPI = (BAC-EV)/(EAC-AC)

244
T&T
 EAC=AC+[(BAC-EV)/(cumulative CPIX cumulative SPI], this
estimate introduce SPI as a factor in estimating EAC and
we can add a weighting value (80/20 or 50/50) between
SPI and CPI

• To Complete Performance Index(TCPI)

 If the BAC is no longer viable, the project manager develop a


forecast estimate at completion. Once its approved TCPI will
replace BAC.

 TCPI based on BAC: (BAC-EV)/(BAC-AC),


 If CPI false below the baseline (-ve value)TCPI based on
EAC will be calculated and will be set as new target
TCPI=(BAC-EV)/(EAC-AC).

245
Continue T&T

246
247
248
Continue T&T

• Performance Reviews
 Meetings held to measure actual performance against
the plan.

• Project Management Software


 The software that will help in automating the generation
of EVM variables, indexes and forecasts.
• Reserve Analysis

249
Outputs

• Work Performance Measurements


 Show how the project is performing against the
plan,
 CV, SV, CPI, and CPI.
• Cost Forecasts
 Either a calculated EAC value or a bottom-up EAC
value is documented and communicated to
stakeholders.
• Change requests (By Default)
 Corrective actions.
 Preventive actions.

250
Continue Outputs

• Project management Plan updates


• Project documents updates
• Organization process assets update

251
End

25
Quality Management

25
254
Quality Management
• Quality:
 The degree to which a set of inherent
characteristics fulfill requirements.

• Differences between grade and quality


 Grade: The same technical use, but different
characteristics.
 Quality: The degree of characteristics fulfill the
requirements.

255
Modern QM approaches
• Seek to minimize variation and deliver
results that meet defined requirements.
• Recognize the importance of :
− Customer satisfaction.
− Prevention over inspection.
− Continuous improvement.
− Management responsibility.
− Cost of Quality (COQ).

256
257
Terms and Definitions
We must differentiate between quality control and
quality assurance:
Quality assurance: It is an executing process, so
its focus is on the work being done on the
project. Its purpose is to ensure the team is
following organizational policies, standards, and
processes as planned to product the project’s
deliverables.
Quality control: It is a monitoring and controlling
process which examines the actual deliverables
produced on the project; its purpose is to ensure
the deliverables are correct and meet the
planned level of quality.
258
Quality Pioneers and Philosophies
• Joseph Juran (1904 - 2008):
Developed (80/20 rule: 80% of the
problems are caused by 20% of the
causes)
• Philip Crosby (1926 - 2001):
advocated Zero Defects which led
to six sigma
• W. Edward Deming (1900 -1993):
Increase quality and reduce costs
by continuous process
improvement. (Plan-Do-Check-Act)
259
Continue Terms and Definitions
 Just-In-Time (JIT): A manufacturing method that
brings inventory down to zero (or near zero) levels. It
forces a focus on quality, since there is no excess
inventory on hand to waste.

 Six Sigma: it focuses very high levels of quality by


controlling the process and reducing defects.
 It puts a primary focus on quantifying, measuring,
and controlling the quality of products, services,
and results.
 To achieve Six Sigma, a process must not produce
more than 3.4 defects per million opportunities
260
Continue Terms and Definitions

If you are doing 100,000 surgical operations a year, 1 sigma  31.74% or 31,740 incorrect surgical operations.
If you are doing 100,000 surgical operations a year, 3 sigma  0.27% or 270 incorrect surgical operations.
If you are doing 100,000 surgical operations a year, 6 sigma  0.0000002% or 0.02 incorrect surgical operations.

261
Continue Terms and Definitions
 Attribute sampling: Measures whether or not
the results conform to specifications. (YES or NO)
 Variable sampling: continuous scale that measures
the degree of conformity. The result is rated on
degree of conformity.
 Control limits: identify the boundaries of common
variation in a statistically stable process or
process performance.
 Tolerance: specified range of acceptable results.

262
Plan Quality Management

First Process

263
Plan Quality Management
It is the process of identifying quality requirements and/or
standards for the project and its deliverables, and documenting
how the project will demonstrate compliance with relevant
quality requirements and / or standards.

Inputs T&T Outputs

1.Project Management Plan 1. Cost-Benefit-Analysis 1. Quality Management Plan


2. Stakeholder register 2. Cost of Quality 2. Process Improvement Plan
3. Risk register 3.Seven Basic Quality tools 2. Quality Metrics
4.Requirements Documentation 4. Benchmarking 3. Quality Checklists
5. EEF 5. Design of Experiments 5. Project document updates
6. OPA 6. Statistical sampling
7. Additional Quality Planning Tools
8.Meetings

264
Inputs

• Project Management Plan


• Stakeholder register
• Risk register
• Requirements Documentation
• EEF
• OPA

265
T&T
• Cost-Benefit Analysis
A cost-benefit analysis for each quality activity compares the
cost of the quality step to the expected benefit.
• Cost of Quality (COQ)
 Looks at all of the costs that will be realized in order to
achieve quality.

• Seven Basic Control Tools (7QC)


We will talk about them in details during Control Quality
Process.

266
T&T
• Benchmarking
 Project’s quality standards are compared to those of
other projects which will serve as a basis for
comparison.
• Design of Experiments (DOE)

 Uses experimentation to determine statistically what


variables will improve quality.
• Additional quality planning tools
 Like brain storming, force field analysis, nominal group
techniques and Quality Management and control tools .
• Meetings

267
Outputs
• Quality Management Plan: Describes how the quality policy will
be met.
• Process Improvement Plan: Deals with how quality activities
will be streamlined and improved. Areas to consider:
 Process boundaries,
 Process configuration,
 Process metrics,
 Target to improve performance.
• Quality Metrics: Define how quality will be measured.
• Quality Checklists: (list of steps)To ensure that all steps were
performed. and that they were performed in the proper
sequence.
• Project Documents Updates

268
Perform Quality Assurance

Second Process

269
Perform Quality Assurance
The process of auditing the quality requirements and the
results from quality control measurements ensure that
appropriate quality standards are used.

Inputs T&T Outputs


1. Quality Mgmt. Plan 1.Qulaity Management 1.Changes Requests
2. Process Improvement Plan and control tools 2.Project Mgmt. Plan
3. Quality Metrics 2. Quality Audits Updates
4. Quality Control 3. Process Analysis 3.Project Document
5. Project Documents Updates
4. Org Process Assets
updates
270
Input
• Quality Management Plan
• Process Improvement Plan
• Quality Metrics
 The quality metrics provide the attributes that should be
measured and the allowable variations.
• Quality control Measurements
 The results of control quality activities. They are used to
analyze and evaluate the quality of the processes of the
project.
• Project documents
271
T&T
• Quality Management & Control Tools:

272
Affinity Diagram Used to organize results of a root cause
analysis into groups

Why people do not follow the process?

Process Technology People

Complex Old Mental


Technology Pressure

Complex No raise
Not Written
Technology

Wrong Lack of
Accountability

Burn
resources

273
Process decision program
charts (PDPC) Used to understand a goal in relation to
the steps for getting to the goal. Used in
the process improvement plan.

Objective Main Activities Tasks

Send Team to
UK for training

Training your
team

Certify the team


Reach < 2% SW
availability

Using coding
standards
Certify the code

274
Interrelationship Diagraphs
Used to analyze the relationships among
numerous issues and find a root cause.
Used to solve complex scenarios

Bad
Food

Unsatisfied
Customer
Chief
A/C

Waiter

275
Tree Diagrams
Used to find a solution to a problem by mapping out
data relationships

Bad Recipe

Bad Food
Bad
Unsatisfied Ingredients
customer

Bad Service Order Taking

276
Prioritization Matrices
Useful to prioritize issues and find solutions

Long Waiting Time

Pleasant Surroundings

Disrespect of customers

Ordering system Down

Unhappy staff

Bad Food

Bad Service

277
Network Diagrams
Used to improve time management processes

278
Matrix Diagrams
Used to find relationships between two or more sets
of items. Useful for quality improvement

Action
Objectives Improved Improved Improved
Employee Kitchen Delivery
Training Process Process
30 Mins   
Max Wait
Friendly   
Drivers
Courteous   
Order
Taking

 Strong Relation  Moderate Relation Weak Relation


T&T
• Quality Audits
 Review the project to evaluate which activities taking
place on the project should be improved and which meet
quality standards,
 The goal is to improve acceptance of the product and the
overall cost of quality.

• Process Analysis
 Reviews the quality process to ensure that it is working
efficiently & effectively.

280
Outputs
• Change requests
• Project management plan updates
• Project document updates
• Organization process assets updates

281
Control Quality

Third Process

282
Control Quality
• It is the process of ensuring a certain level of quality in
deliverables or to verify that the deliverables meet the
requirements.
• It helps answer the question: “Are the results of our work
meeting the standards?”

283
Control Quality
Inputs T&T Outputs
1.Project Management 1.Seven Basic Quality 1. Quality Control Measurements
Plan Control Tools 2. Validated changes
2. Quality Metrics 2. Statistical Sampling 3. Verified Deliverables
3. Quality Checklists 3. Inspection 4. Work performance info
4. Work Performance 4. Approved change 5. Change requests
Data requests Review 6. Project Mgmt Plan Updates
5. Approved Change 7. Project document updates
Requests 8. Org Process Assets Updates
6. Deliverables
7.Project Documents
8.Organizational
process assets

284
Inputs
• Project management plan
• Work performance measurements
• Approved change requests
• Deliverables.
• Project Documents
• Organization process assets

285
T&T
• Seven Basic Quality tools:

286
Cause-and-effect diagram
Represent the image as a fish. Used to
analyze problems and find the root
causes

Skill Level

Motivation Level

People High
Defect
Tools Process Rate

287
Flow Chart
A graphical representation of a process.
Used to help analyze a process and find
quality problems

288
Check Sheet/Tally Sheet
Used to keep track of data such as quality
problems uncovered during inspection

289
Histogram
Used to present the data in bar chart to
determine the most pressing problems

Label Missing Incorrect Label Other


Label Mismatch Wrong color

290
Pareto Diagram
A Bar chart arranges the results from most to
least frequent. (80/20 rule)

Wrong color Label Mismatch Other


Incorrect Label Label Missing
291
Control Chart
Used to determine if a process is within
control limits and monitor observations
across time

80 sec.
70 sec.

60 sec.

50 sec.
40 sec.

292
Scatter Diagram
Used to tracks two variables to determine
their relationship
Defects (Dependent Variable)

Defects (Dependent Variable)


Software Size (Independent variable)
Defects (Dependent Variable)

Number of Developers (Independent variable)

Software Size (Independent variable)

293
Continue T&T
• Statistical Sampling
• Inspection
 An inspection is the examination of a work product to
determine if it conforms to documented standards.
 The results of an inspection generally include
measurements and may be conducted at any level.
For example, the results of a single activity can be inspected,
or the final product of the project can be inspected.
Inspections may be called reviews, peer reviews, audits, or
walkthroughs. In some application areas, these terms have
narrow and specific meanings.

• Approved change requests review


 All approved change requests should be reviewed to verify
that they were implemented as approved.

294
Outputs
• Quality control measurements
 resulting documents out from quality control activates.
• Validated changes
 Any changed or repaired items are inspected and either
accepted or rejected (return for rework).
• Verified deliverables
 Are inputs to verify scope process.

295
Continue Outputs
• Work performance Information
• Change requests
• Project management plan updates
• Project document updates
• Organization process assets updates

296
Remember this:

Accepted
No
3 deliverables
Yes

2
1 Verified deliverables

297
Perform Quality Assurance & Control Quality

298
End

29
HR Management

30
301
Human Resource Management
• The process that organize and manage the project team,

• The project management team is a subset of the project team


and called the CORE, EXECUTING, team

• Managing the project team includes:

 Influencing the project team,

 Professional and ethical behavior.

302
Terms and Definitions
• Maslow's hierarchy need theory
• Mcgregor - theory x y
• Herzberg's motivation-hygiene theory
• McClelland's Human Motivation Theory

303
Maslow's hierarchy need theory

304
Mcgregor - Theory x, y

305
Herzberg's theory

306
McClelland's Human Motivation Theory

307
Develop human Resource Plan
• This process defines
 Roles, required skills,
 Responsibilities, reporting relationships, and
 When to acquire and release project team.

Inputs T&T Outputs


1.Project Management Plan 1. Org Charts & Position 1. Human resource Plan
2.Activity resource requirements Descriptions
3.EEF 2. Networking
4.OPA 3. Organization al Theory
4. Expert Judgment
5. Meetings

308
Input

• Project Management Plan


• Activity resource requirements
• Enterprise environmental factors
• Organization process assets

309
T&T
• Org Charts and Position Description
 Present who will be working on the project and what
they will be responsible for doing, including
Responsibility availability matrix hierarchical charts
(WBS,OBS,RBS), text oriented formats.
 Hierarchical type charts.

310
T&T
 Matrix based charts (Ex. RAS)

 RACI (Responsible, Accountable, Consultant, Inform)


 Text oriented formats

311
T&T
• Networking
 Communicating with others within your “network”
of contacts, like correspondence, meetings and
information conversation.
• Organization Theory
 Provides info regarding the way in which people,
teams, and organizational units behave.
• Expert Judgement
• Meetings

312
Outputs
Human Resources Management Plan:
It includes:
 Roles and Responsibilities
 Project Organizations Charts
 Staffing Management plan
 Staffing acquisition.
 Resource calendar.
 Staff release plan.
 Training needs.
 Rewards and recognition.
 Compliance with governmental, union regulations.
 Safety.
313
Acquire Project Team

Inputs T&T Outputs


1.Human Resource Mgmt plan 1. Pre-Assignment 1. Project Staff Assignments
2. EEF 2. Negotiation 2. Resource calendars
3. OPA 3. Acquisition 3. Project management plan
4. Virtual Teams updates
5.Multi-Criteria
decision analysis

314
Inputs
• Human Resource Management Plan
• Enterprise environmental factors

• Organizational process assets

315
T&T
• Pre-Assignment
 Staffing done before the running of this process for the sake
of project requirements or as a result of organization policy or
politics.
• Negotiation
 It is an important skill for the PM, PM needs to negotiate with
functional managers and with project team other project
managers and external organizations.
• Acquisition
 Looking outside the org for resources when they cannot be
provided by your organization.
• Virtual Teams (tools)
 Group of individuals who may or may not see each other in
person.

316
T&T
• Multi-criteria decision Analysis
 Selection criteria are often used as a part of acquiring
the project team. By use of a multi-criteria decision
analysis tool, criteria are developed and used to rate or
score potential team members

317
Outputs
• Project Staff Assignments

 Each role that was defined should have a resource assigned to it.

• Resource calendar

 The time they are assigned to work on activities should be


documented.

• Project management plan updates.

318
Develop Project Team

Inputs T&T Outputs


1.Human Resources 1. Interpersonal skills 1. Team Performance
Management Plan 2. Training Assessment
2. Project Staff 3. Team-Building Activities 2. Enterprise
Assignments 4.Ground Rules environmental factors
3. Resource calendars 5. Co-location Update
6. Recognition and Rewards
7. Personnel Assessment
Tools

319
Inputs
• Human Resource Management
• Project staff assignment
• Resource calendars

320
T&T
• Interpersonal skills
 Or what is called “soft skills” like empathy,
creativity, group facilitation, understanding and
sentiments.

• Training
 formal or informal training.

• Team building activities


 Building relationships among team members by
participating in team problems solving.
 In theory there are five stages of development a
team might go through:
321
Team building activities (THE TUCKMAN MODEL)

322
T&T
• Ground Rules

• Co-location (War Room)

• Recognition and Rewards


 Desirable behaviors should be rewarded and
recognized,
 Win-win rewards is the best choices for team building,
 Win-lose rewards such a contest where one team
member wins and others do not, can be detrimental to
the sense of team.
• Personnel Assessment tools

323
Outputs
• Team Performance Assessment
 Measuring and evaluating how the team is doing,
E.g., measure the work performance, the experience
the team is acquire.

• EEF updates

324
Manage Project Team
• project manager can use five types of power to
influence his team members as follows:
− Formal or Legitimate Power
− Reward Power
− Penalty Power
− Expert Power
− Referent Power

What is the best power of the project manager?

325
Manage Project Team

Inputs T&T Outputs


1.Human Resource Mgmt Plan 1. Observation & 1. Change requests
2. Project Staff Assignments Conversation 2. Project Mgmt Plan Updates
3. Team Performance 2. Project Performance 3.Project Documents Updates
Assessment Appraisals 4.EEF updates
4. Issue log 3. Conflict Mgmt 5.OPA Updates
5. Work Performance Reports 4. Interpersonal skills
6. OPA

326
Inputs

• Human Resource management plans


• Project staff assignments
• Team performance assessment

327
Inputs
• Issue log
An issue log can be used to document and monitor who is
responsible for resolving specific issues by a target date.
• Work Performance reports
• Organizational Process Assets

328
T&T
• Observation and Conversation
• Project Performance Appraisals
PM and other personnel managers on the project
meet the people who report to them on the project
and provide feedback on their performance.

329
T&T
• Conflict Source
 Conflict occur between individuals or groups on the
project, it could occurs between PMs and Functional
Managers.
 Sources : Schedules- Project priorities Resources- Technical
opinions.

330
T&T
• Conflict Management
 Methods of conflict Management:

331
Continue T&T

• Interpersonal skills
 Includes leadership, influencing, and effective decision making.

332
Outputs
• Change requests
• Project management plan update
• Enterprise environmental factors updates
• Organizational Process Assets updates

333
End

33
Communication Management

33
Communication Management
• All tasks related to producing, compiling, sending,
storing, distributing, and managing project records.

• It is made up of 3 processes to determine what to


communicate, to whom, how often, and when to
reevaluate the plan.

• PMs spend %90-70 of their time communicating with


team members and other project stakeholders.

337
Communication Type
• Internal and external
• Formal (reports, memos) and informal (emails, ad-hoc
discussions).
• Official (newsletter, annual report) and unofficial (off
the record communications).
• Vertical (up and down the organization) and horizontals
(with peers).
• Verbal and non-verbal.

338
Plan Communication Management

Plan Communications Management is the process of


developing an appropriate approach and plan for project
communications based on stakeholder’s information needs
and requirements, and available organizational assets.

Inputs T&T Outputs


1.Project Management Plan. 1.Communication Requirement 1- Communication
2.Stackholders register. analysis. Management Plan
3.EEF. 2. Communication technology
4.OPA. 3. Communication Model.
4. Communication Method
5. Meetings

339
Inputs
• Project Management Plan
• Stakeholder register
• Enterprise Environmental Factors
• Organizational Process Assets

340
T&T
• Communication Requirements Analysis

 PM should consider the number of communication


Channels or paths as an indicator of the complexity
of a project’s communication,
 Channels = n(n-1)/2 where n=no. of people

341
342
PMP Exam Sample Question
• On your current architecture and design project you the
project manager are interacting with six other stakeholders.
Three new stakeholders join the project. How many new
channels have been added?
• a. 15 channels
b. 21 channels
c. 24 channels
d. 36 channels

343
PMP Exam Sample Question
• On your current architecture and design project you the
project manager are interacting with six other stakeholders.
Three new stakeholders join the project. How many new
channels have been added?
• the number of communication channels = n(n-1)/2
• n= number of stakeholders , “the project manager is interacting with six
other stakeholders.” : seven stakeholders. 7(6)/2= 42/2= 21 channels.
• “Three new stakeholders join.” now there are ten stakeholders.
• 10(9)/2= 90/2= 45 channels.
• We began with 21 channels for seven people and now have 45 channels
for ten people.
Therefore 24 new channels have been added.
344
T&T
• Communications Technology
 The right tool should be selected for a given
communications need.
 Factors that can affect the project include:
Urgency of the need for information.
Availability of technology.
Ease of Use.
Project Environment.
Sensitivity and confidentiality of the information.

345
T&T
• Communication Models

346
 Communication Models
 The sender is responsible for:
 Encode the message clearly
 Select a communication method
 Send the message
 Confirm that it was understood from the
receiver
 The receiver is responsible for:
 Decode the message
 Confirm that the message was understood

347
T&T
• Communication Methods

Interactive communication: Phone, Meeting


Push communications : Email
Pull communications : Shared Files
• Meetings

348
Outputs
• Communications Management Plan
In addition to what was described, the communication
plan must Identify the project documents that will be
created during the course of the project and define
how these documents will be shared and archived,

349
Outputs
• Communications Management Plan

350
Outputs
• Communication Management Plan include:
 Stakeholder communication requirements.
 Information to be communicated, including
language, format, content, and level of detail.
 Reasons for the distribution of that information.
 Time frame and frequency for the distribution of
the required information.
 Person responsible for communicating the
information.

351
• Communication Management Plan include:
 Methods or technology used to convey the information.
 Escalation process.
 Methods for updating and refining the communications
management plan.
 Communication constraints.
 It can also include guidelines and templates for project
status meetings, project team meetings, e-meetings,
and e-mail.

352
Outputs

• Project Document Updates


 Project schedule,
 Stakeholder register.

353
Manage communications
 Manage Communications is the process of creating,
collecting, distributing, storing, retrieving, and the ultimate
disposition of project information in accordance to the
communications management plan.

Inputs T&T Outputs

1- Communication 1. Communication technology 1.Project Communications


2. Project Management Plan
Management Plan 2. Communication Model.
updates.
2.Work performance Reports 3. Communication Method 3. Project documents updates
3.EEF. 4. Information Management Sys. 4. OPA Updates
4.OPA. 5.Performance Reporting.

354
Inputs
• Communication Management Plan
• Work Performance Reports
• Enterprise Environmental Factors
• Organizational Process Assets

355
T&T
• communication technology
• communication Models
• communication Methods
• Information Management Systems
• Performance reporting

356
Outputs
• Project communications
 The Manage Communications process involves the activities
that are required for information to be created, distributed,
received, acknowledged, and understood.
• Project Management Plan updates
• Project documents updates
• Organizational Process Assets updates

357
Control Communications
Control Communications is the process of monitoring and
controlling communications throughout the entire project
life cycle to ensure the information needs of the project
stakeholders are met.

Inputs T&T Outputs

1. Project Management Plan. 1. Information Management Sys. 1. Work Performance


Information.
2.Comm. Management Plan. 2.Expert Judgement.
2. Change requests
3.Issue Log. 3.Meeting. 3. Project Management Plan
4.Work performance data. updates.
5.OPA. 4. Project documents updates
5. OPA Updates

358
Inputs

• Project Management Plan


• Project communications
• Issue Log

 Or also called action item log can be used to document


and monitor the resolution of issues.
 Can be used to facilitate communication and ensure a
common understanding of issues.
• Work Performance data
• Organizational Process Assets

359
T&T
• Information Management Systems
• Expert Judgment
• Meetings

360
Outputs
• Work Performance Information
• Change Requests
• Project Management Plan Updates
• Project Document Updates
• Organizational Process Assets Updates

361
END

362
Risk Management

36
Risk Management
• The PM is in control and proactively managing events, avoiding
as many problems as possible,

• The PM must understand how to anticipate and identify areas


of risks, how to quantify and qualify them, and how to plan
for them,

• Risk has two characteristics:


 It is related to an uncertain events.
 May affect the project for good or for bad.

365
Risk Management
Risk Issue

Unknown
Known risks are Known Risk
risks that have Risk
been identified
and analyzed.
Unknowns risk
are not known
For example,
you know that
Contingency Management until they
there is a reserve reserve happen. You
cannot make a
chance that one
of your team response plan
members may for these risks.
go on leave
during the peak
Owned by Owned by For example,
of your project. PM Management Flood,
Sandstorm, etc.

366
Plan Risk Management

First process

367
Plan Risk Management

Inputs T&T Outputs


1.Project Management Plan 1. Analytical techniques 1. Risk Mgmt Plan
2. Project Charter 2. Expert judgment
3. Stakeholder Register 3. Meetings
4. Enterprise Environmental Factors
5. Org .Process Assets

368
Inputs

• Project Management Plan


• Project Charter
• Stakeholder register
• EEF
• OPA

369
T&T

• Analytical Techniques
• Expert Judgment
• Meetings

370
Outputs
• Risk Management Plan
 Methodology: define approach, tools and data
sources used for risk management.
 Roles and responsibilities: How risk will be
managed and by whom.
 Budgeting.
 Timing.
 Categorize:
 Definition of Risk probability and impact.

371
Outputs

372
Outputs
Risk Management Plan Include also:
 Probability and impact matrix.

 Revised stakeholder’s tolerances


 Reporting formats.
 Tracking
373
Identify Risks

Second Process

374
Identify Risks
Inputs T&T Outputs
1. Risk management Plan 1. Documentation Reviews 1. Risk Register
2. Cost management Plan 2. Info Gathering Techniques
3. Schedule management Plan 3. Checklist Analysis
4. Quality management plan 4. Assumptions Analysis
5. Human Resource management plan 5. Diagramming Technique
6. Scope baseline 6. SWOT analysis
7. Activity Cost Estimates 7. Expert judgment
8. Activity duration estimates
9. Stakeholder register
10. Project documents
11.Procurements documents
12.Enterprise Environmental
Factors
13. Org Process Assets

375
Inputs
• Risk management plan
• Cost management plan
• Schedule management plan
• Quality management plan
• Human resource management plan
• Scope baseline
• Activity Cost estimates
• Activity duration estimates
• Stakeholder register

376
Continue Inputs
• Project documents
• Procurement documents
 If the project requires external procurement of
resources, procurement documents become a key
input to the Identify Risks process.
• EEF
• 0PA

377
T&T
• Documents reviews
• Information Gathering Technique
 Brainstorming , Delphi technique, Interviewing, Root
Cause analysis.
• Checklist Analysis
 Risk identification checklists are developed based on
historical information and knowledge that has been
accumulated from previous similar projects and from
other sources of information.

• Assumptions Analysis
 Assumptions should be analyzed and documented and
challenged if necessary.
Continue T&T
• Diagramming technique
 Cause-and-effect or Ishikawa
 System or process flow charts
• SWOT Analysis (Strength, Weakness, Opportunity, and Threat)
 SWOT Analysis, used to measure each risk’s strengths,
weaknesses, opportunities, and threats.
 It helps specify the most significant project risk factor.

• Expert Judgement

379
SWOT Analysis

380
Outputs
• Risk Register

 Provides a list of all identified risks on the


project.
 List of Potential response.
 What the possible actions to this risk are.
 What categories the risks fall into.
 To update the RBS.

381
Risk Register

382
Perform Qualitative Risk Analysis

Third Process

383
Perform Qualitative Risk Analysis
• To determine which risks are the highest priority.
• It takes each risk from the risk register and works to
analyze its probability of occurring and impact on the
project.

Inputs T&T Outputs


1. Risk Management 1. Risk Probability and Impact 1. Project documents
Plan Assessments updates
2. Scope Baseline 2. Probability and Impact Matrix
3. Risk Register 3. Risk Data Quality Assessment
4. EEF 4. Risk Categorization
5. OPA 5. Risk Urgency Assessment
6. Expert judgment

384
Inputs

• Risk management plan


• Scope Baseline
• Risk Register
• Enterprise Environmental factors
• Organization process assets

385
Tools and Techniques
• Risk Probability and Impact Assessments/
Probability and Impact Matrix
 To determine what the highest priorities, can be
assesses by meetings or interviews with experts of risk
categories.
 Each risk in the risk register is evaluated for its
likelihood of occurring and its potential impact on the
project.

386
387
T&T
• Risk Data Quality Assessment
 The data used should be evaluated to determine whether or not it is
accurate and of acceptable quality.
• Risk Categorization
 Can be categorized in many ways (i.e:RBS or by project phases)

• Risk Urgency Assessment


 Risks that cannot wait,
 Determine which risks are the most urgent, requiring immediate
attention.

• Expert judgment

388
Outputs
• Project Documents updates
1.Risk Register Updates.
 Relative ranking or priority list of project risks,

 Risks grouped by categories,

 Causes of risk or project areas requiring particular attention,

 list of risks requiring response in the near-term,

 List of risks for additional analysis and response,

 Watch lists of low-priority risks.

2.Assumptions log updates.

389
Perform Quantitative Risk Analysis

Fourth Process

390
Perform Quantitative Risk Analysis
• Assigns a projected value to (quantify) the risks that
have been ranked by qualitative risk analysis.
• This value is specified in terms of cost or time.

Inputs T&T Outputs

1. Risk Mgmt Plan 1. Data Gathering and 1. Project documents


2. Cost Mgmt plan Representation Techniques updates
3. Schedule Mgmt plan 2. Quantitative Risk Analysis
4. Risk Register and Modeling Techniques
5. EEF 3. Expert Judgment
6. OPA

391
Inputs
• Risk management plan.
• Cost management plan.
• Schedule management plan
• Risk register
• Enterprise Environmental Factors
• Organization process assets

392
T&T
• Data Gathering and Representation Techniques
Interviewing - Experts Judgment - Probability
distribution.
• Quantitative Risk Analysis & Modeling Techniques
 Sensitivity Analysis: analyze the project and
determine how sensitive it is to risk.
Tornado Diagrams: analyse project sensitivity
to cost or to other factors.

393
Tornado Diagrams

394
Quantitative Risk Analysis & Modeling Tech.

 Expected Monetary Value Analysis EMV.


 Decision Tree Analysis: used to show probability and
arrive at a dollar amount associated with each risk.

395
Quantitative Risk Analysis &
Modeling Tech.

 Expected Monetary Value Analysis (EMV):


 EMV=P*I

Threat/Opportunity Probability Impact Expected


Monetary
Value
A 10% $20,000 $2,000
B 20% -$40,000 -$8,000

Which one of EMV value above threat and opportunity?

396
Quantitative Risk Analysis & Modeling Tech.

 Decision Tree Analysis: used to show probability and arrive at a dollar


amount associated with each risk.
Failure: 35%
Probability and $
Setup Cost= $ 200,000
120,000 impact
Prototype

A company is trying
to determine if Pass: No Impact
prototyping is
worthwhile on the
project

Failure: 70%
Setup Cost = $ 0 Probability and $
450,000 impact
Do not
prototype

Pass: No Impact

397
Quantitative Risk Analysis & Modeling Tech.

Answer:

Prototype: 35% * 120,000= 42,000


42,000 +200,000= 242,000

Do Not Prototype: 70% * 450,000= 315,000


T&T
 Modeling and Simulation
Using Monte Carlo analysis,
Takes details and assembles a big picture,
Performed by computer .
 Expert judgment

399
Outputs
• Project documents updates
 Project documents are updated with information resulting
from quantitative risk analysis.

400
Plan Risk Response

Fifth process

401
Plan Risk Response

Inputs T&T Outputs


1. Risk Mgmt. Plan 1.Strategies for Negative Risks or 1. Project Mgmt Plan Updates
2. Risk Register Threats 2. Project document updates
2. Strategies for Positive Risks
or Opportunities
3. Contingent Response Strategies
4. Expert Judgment

402
Inputs
• Risk management plan
• Risk register

403
T&T
• Strategies for Negative Risks or Threats
 Avoid: appropriate for undesirable risk
Transfer: transfer it to another party
(Transferee the loss associated with risks
to a third party) and make him responsible
(e.g. insurance),
 Mitigate: make it less, minimizing the
probability and impact of risks to
acceptable level (e.g. construct outside
rainy season).
Accept: Accept the risk and not take any
action unless the risk occurs.
404
T&T
• Strategies for Positive Risks or Opportunities
 Exploit: trying to remove any uncertainty.
Finishing the project early, adding more
people to complete early
 Share : working with another party how can
better utilize the opportunity.
 Enhance: seek to increase the opportunity
probability.
Accept: Accept the risk and not take any
action unless the risk occurs.
405
T&T
• Contingent Response Strategy

 The project team may make one decision related


to risk, but make that decision contingent upon
certain conditions.

• Expert judgment.

406
Outputs
• Risk Management Plan Updates
• Project Document Updates.

407
Control Risk

Sixth process

408
Control Risk
Inputs T&T Outputs
1. Project Mgmt Plan 1. Risk Reassessment 1. Work performance Info
2. Risk Register 2. Risk Audits 2. Change requests
3. Work Performance 3. Variance and Trend 3. Project Mgmt Plan Updates
data Analysis 4. Project document updates
4. Performance 4. Technical Performance 5. Org Process Assets Updates
Reports Measurement
5. Reserve Analysis
6. Meetings

409
Inputs
• Project management plan.
• Risk register
• Work performance data
• Work Performance reports

410
T&T
• Risk reassessment
 To identify new risks and closing risks that are
outdated.
• Risk Audits
 Focused on overall risk management.
• Variance and Trend Analysis
 Variance Analysis, focus on the difference
between what was planned and what was
executed.
 Trend Analysis, shows how performance is
trending. It shows worst cost performance.

411
T&T
• Technical Performance Measurement

 Focus on functionality, looking at how the project


has met its goals for delivering the scope over time.

• Reserve Analysis

 Project reserve or contingency can apply to


schedule, time or cost. Periodically should be
evaluated to ensure that it is sufficient to address
the amount of risk the project expects to.

• Meetings
412
Outputs
• Work Performance Information
• Change requests
• Project management plan updates
• Project document updates.
• Organizational process assets updates

413
End

41
Procurement Management

41
Procurement Management
Processes performed to obtain goods, services, or
scope from outside the organization.

• There are two Procurement primary roles:


 Buyer: the organization purchasing or procuring
the goods or services from the seller.
 Seller: the organization providing or delivering
the goods or services to the buyer.

417
Procurement Management
Contracts could take one of Three types:
Firm Fixed Price Contracts
Firm Fixed Price (FFP)
Fixed Price Incentive Fee (FPIF)
Fixed Price Economic Price Adjustment (FPEPA)
Cost Reimbursable Contracts (CR)
 Cost Plus Fixed Fee (CPFF)
 Cost Plus Incentive Fee Contracts (CPIF)
 Cost Plus Award Fee Contracts (CAF)
Time and Material Contracts (T&M)
Marge of above two contracts types.

418
Procurement Management

• Who bears the risk of each contract type?


CONTRACT TYPE WHO PEARS RISK
Firm Fixed Price Contracts SELLER
Cost Plus Fixed Fee (CPFF) BUYER
Cost Plus Incentive Fee Contracts (CPIF) SELLER AND BUYER
Cost Plus Award Fee Contracts (CAF) SELLER AND BUYER
Time and Material Contracts (T&M) BUYER

419
Plan Procurement

Inputs T&T Outputs

1. Project Management Plan 1. Make-or-Buy 1. Procurement Mgmt Plan


2. Requirements documentation Analysis 2. Procurement statements
3. Risk register 2. Expert Judgment of work
4. Activity resource requirements 3. Market Research 3. Procurement documents
5. Project schedule 4. Meetings 4. Source selection criteria
6. Activity cost estimates 5. Make-or-Buy Decisions
7. Stakeholder Register 6. Change requests
8. Enterprise Environmental 7.Project documents updates
Factors
9. Org Process Assets

420
T&T
• Make-or-Buy Analysis
Look at all of the factors that could sway the decision toward
making internally or buying externally, including risk factors,
costs, releasing proprietary info, and a host of other decision
pointing.

• Expert judgment
• Market Research
• Meetings

421
Conduct Procurement
Obtaining seller responses, selecting a seller, and awarding
a contract. A short list of qualified sellers can be
established based on preliminary proposal.

Inputs T&T Outputs

1.Procurement Management plan 1. Bidder conferences 1. Selected sellers


2. Procurement documents 2. Proposal evaluation 2. Agreements
3. Source selection criteria techniques 3. Resource colanders
5. Seller proposals 3. Independent 4. Change requests
6. Project documents estimates 5. Project Mgmt plan
7. Make-or-Buy Decision 4. Expert Judgment updates
8. Procurement Statement of work 5. Advertising 6. Project document updates
9. Org process assets 6. Analytical techniques
7. Procurement
Negotiations

422
T&T
• Bidder Conference.
• Proposal evaluation techniques
Expert judgment.
Advertising.
Internet search.
Procurement negotiations.
• Independent Estimates
• Expert Judgment
• Advertising
• Analytical techniques
• Procurement negotiations
423
Control Procurement

Inputs T&T Outputs


1. Procurement Mgmt Plan 1. Contract change control system 1.Work Performance info
2. Procurement Documents 2. Procurement performance reviews 2.Change requests
3. Agreements 3. Inspections and audits 3. Project mgmt plan Updates
4. Approved change requests 4. Performance reporting 4. Project documents updates
5. Work Performance reports
5. Payments systems 5. Org process assets Updates
6. Work performance Data
6. Claims administration
7. Records mgmt system

424
T&T
• Contract change control system.
• Procurement performance reviews.
• Inspections and audits.
• Performance reporting.
• Payments systems.
• Claims administration.
• Record management system.

425
Close Procurement

Inputs T&T Outputs


1. Project Mgmt Plan 1. Procurement Audits 1. Closed procurements
2. Procurement 2. Procurements negotiations 2. Org Process Assets Updates
Documentation 3. Records Mgmt System

426
T&T
• Procurement Audits.
• Procurements negotiations.
• Record Management System.

427
End

42
Stakeholders Management

42
430
Identify Stakeholders

Inputs T&T Outputs


1. Project Charter 1. Stakeholder Analysis 1. Stakeholder Register
2. Procurement Documents 2. Expert Judgment
3. EEF 3. Meetings
4. OPA

431
T&T
• Stakeholder Analysis
 Influence/impact grid: Grouping the stakeholders based on
their active involvement (“influence”) in the project and their
ability to effect changes to the project’s planning or
execution (“impact”) in the project.

432
Outputs
• Stakeholder Register

 Contains all details related to the identify stakeholders


including, but not limited to:
Identification information: name, organizational
position, location, role in the project, contact
information
Assessment information: major requirements, main
expectations, potential influence in the project, phase
in the life cycle with the most interest, and
Stakeholder classification: internal/external,
supporter, natural, resistor, etc.

433
Plan Stakeholder mgmt.

Inputs T&T Outputs


1. Project Mgmt Plan 1. Analytical Technique 1. Stakeholder
2. Stakeholder Register 2. Expert Judgment Mgmnt Plan
3. EEF 3. Meetings 2. Project Document
4. OPA updates

434
T&T
• Expert Judgment
• Meetings
• Analytical techniques
The engagement level of the stakeholders can be classified as
follows:
 Unaware.
 Resistant.
 Neutral.
 Supportive.
 Leading.

435
Manage Stakeholder Engagement

Inputs T&T Outputs


1. Project Mgmt Plan 1. Communication 1. Issue Log
2. Communication Mgmt Plan. methods 2. Change Request
3. Change Log. 2. Interpersonal skills 3. Project Mgmt Plan
4. OPA 3. Management skills updates.
4. Project documents
updates.
5. OPA Updates

436
T&T
• Communication Methods
• Interpersonal Skills
• Management Skills

437
Control Stakeholder Engagement

Inputs T&T Outputs


1. Project Mgmt Plan 1. Information Management sys. 1. Work performance info.
2. Work performance data 2. Expert Judgement 2. Change Request
3. Issue Log. 3. Meetings 3. Project Mgmt Plan
4. Project documents updates.
4. Project documents
updates.
5. OPA Updates

438
End

43
Practice exercise

440
1) Which of the following is NOT a characteristic
of a project?

A- Constrained by limited resources

B- Planned, executed, and controlled

C- Creates a unique product or service

D- Ongoing and repetitive

441
2) In your project, you create a document to record the
code of account identifier, description of work,
responsible organization, and schedule milestones.
This document can be referred to as:

A- WBS

B- WBS dictionary

C- PERT/CPM charts

D- Roles and responsibilities matrix

442
3) You are working for a semi-conductor company.
There have been several instances in the past week
when a few circuits have not been giving accurate
results. You have been assigned the task of
determining the probable cause for the variations.
Which tool would you use?

A- Control Chart

B- Ishikawa Diagrams

C- Pareto Diagrams

D- Inspection

443
4) Which of the following statements about the project
management team and the project team is inaccurate?

A- The project management team is also called the core,


executive, or leadership team.

B- The project team is responsible for activities like planning,


controlling, and closing.

C- The project management team is a subset of the project


team.

D- For small projects, the project management responsibilities


are shared by the entire team or administered solely by the
project manager.

444
5) You have recently assumed charge of a project from
another project manager. You want to know what kind of
information you should provide to different stakeholders and
what methods to adopt for this purpose. You will find this
information in the:

A- Communications management plan.

B- Project records.

C- Performance reports.

D- Communications plan.

445
6) The responsibility of stakeholder expectations management
usually lies with the:

A- Project management team.

B- Project manager.

C- Project team.

D- Project manager, project sponsor, and project management


team.

446
7) In an automobile company in which you are the project
manager, the allowable standard deviation for a product to be
delivered by the contractor is less than 0.002 inches. However,
product testing has revealed that the actual deviation is slightly
more than 0.002 inches. You believe that the variation from the
permissible deviation is negligible. In this case, you must:

A- Allow the product, since deviation from the company


standards is small.

B- Document the low quality level of the product, ask the


contractor for an explanation, and find a solution.

C- Reject the product outright.

D- Allow the product this time, but mentor the contractor to be


more quality conscious henceforth. 447
8) In your project, you are in the process of leading and
performing the work defined in the project management plan
and implementing approved changes to achieve the project`s
objectives. This is done during:

A- Direct and Manage Project Work.

B- Develop Project Management Plan.

C- Monitor and Control Project Work.

D- Create Deliverables.

448
9) It is standard that the customer is required to follow
rigorously defined processes for user acceptance testing which
must be conducted each time a module is completed. The
customer is also required to notify the project manager, in
writing, that the software module was tested and whether it
was acceptable or not. This user acceptance testing, and the
resulting notification is part of which process? :

A- Control Scope.

B- Collect Requirements.

C- Validate Scope.

D- Perform Quality Assurance.

449
10) As a project manager, you are concerned with determining
which risks may affect the project. What is the process by
which such risks are determined?

A- Plan Risk Management.

B- Identify Risks.

C- Perform Qualitative Risk Analysis.

D- Plan Risk Responses.

450

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