Session 4 - Project Planning - Other Components

Project Management I
ADM 6260-E00
Sara Hajmohammad, PhD, PMP

Winter 2020
Session 4
Project Planning
Other Components
From Project Management Absolute Beginner's Guide, 4/e by Gregory M. Horine (0789756757) Copyright
© 2017 Pearson Education, Inc. All rights reserved
2
Monitoring &
Initiating Planning Executing Closing
Controlling
Integration
Scope Scope
Schedule Schedule
Cost Cost
Quality
Resources
Communications
Risk
Procurement
Stakeholders
3
Project
Planning
Process
Group
PMBOK, 6th Edition (2017)
4
Planning: Project Quality
Management
Monitoring &
Controlling
Integration
Scope Scope
Schedule Schedule
Cost Cost
Quality
Resources
Communications
Risk
Procurement
Stakeholders
6
Quality Management Process
Plan Quality Management
Project Quality: conformance to requirements and

fitness of use.
– Project produces what it said it would and that
what it produces satisfies real customer needs.
– Product and Process Quality
– Focus on Verification
Quality is planned in, not inspected in.

7
Quality Planning
• Identify Quality Expectations (Stakeholders)

• Plan how to meet them: resources, documentation,
communication, etc.
• Right-Size it based on risk and other success factors
• Set Expectations with focusing on Customer/Sponsor
• Trust but Verify
• It is Project Manager’s Responsibility
8
Cost of Quality
• Cost of Conformance
– Prevention
– Appraisal
• Cost of Non-Conformance
– Internal Failure Costs
– External Failure Costs
9
Quality Management Tools
• Requirements Traceability Matrix
• Checklists
• Templates
• Reviews
• Completion criteria
• Small Work Packages
• Independent Audits
• Standards
• V Method: a validation and verification step for every
deliverable and interim deliverable
10
11
12
Quality-Related Challenges
• Forgot to pop the question: ask the client what “quality”
means to him.
• “Good intentions, but”: stuff happens and quality procedures
are never carried out, despite initial planning
• “We can’t afford it”: overhead and costs too much! Can you
afford not to focus on quality?
• Not factored in the schedule
• Quality resources over-allocated
• Testing takes more than one cycle
• Gold-plating (doing more than what the requirements without
undergoing proper change control procedures).
• No risk analysis
13
Planning: Project
Resource Management
Monitoring &
Controlling
Integration
Scope Scope
Schedule Schedule
Cost Cost
Quality
Resources
Communications
Risk
Procurement
Stakeholders
15
Resource Management Process
Outputs:
Plan Resource Management 1. Resource
Management Plan
2. Team Charter
3. Resource Breakdown
Structure
4. Resource
Estimate Activity Resources Requirements
• Defining how to estimate,

acquire, manage, and use
teams and physical
resources. PMBOK, 6th Edition (2017)
16
Resource Management Plan
• Methods for identification, estimation of resources

• How to acquire resources
• Roles and Responsibilities, Authorities and
Competences
• Organization Charts
• Team Development and Management
• Training
• Resource Control
Plan Resource
Management
• Recognition
Estimate Activity
Resources
17
Team Charter
• Team Values
• Communication Guidelines
• Decision-making criteria and process
• Conflict resolution process
• Meeting guidelines
• Team Agreements
Plan Resource
Management
Estimate Activity
Resources
18
cyberuse.com
19
Estimate Activity Resources
Plan Resource
Management
Estimate Activity
Resources
20
Planning: Project
Communications
Management
Monitoring &
Controlling
Integration
Scope Scope
Schedule Schedule
Cost Cost
Quality
Resources
Communications
Risk
Procurement
Stakeholders
22
Communication
• Exchange of information, intended or involuntary.

• Communication Dimensions
– Written or Oral or Through Gestures
– Formal or Informal
– In-Person or otherwise
– Internal or External
– Upward/Downward/Horizontal
– Official or Unofficial
23
Communications Management Process
Plan Communications Management
The goal of communications

planning is to ensure that all the
stakeholders involved in the
project have the information
they need, when they need it, to
fulfill their responsibilities. Outputs:
1. Communications
Management Plan
24
Communications Planning
• Communication Requirements Analysis
– What, Why, When, How
• Communication Technology
– Urgency, Reliability, Ease of Use, Confidentiality, …
• Communication Methods
– Interactive Communication
– Push Communication
– Pull Communication
–…
• Roles and Responsibilities
• Flow Charts
• … From Project Management Absolute Beginner's Guide, 4/e by Gregory M. Horine (0789756757) Copyright
25
Communications Matrix (Example)
From To Frequency Format Media
Project Status Meeting,

Management Weekly
Manager Report Memo
Questions
Project
Core Team Weekly and follow- Email
Manager
ups
Project Status Email or

Core Team Weekly
Manager Report meeting
Paper
Employees Core Team As requested Time Sheet
Document
26
Planning: Project Risk
Management
Monitoring &
Controlling
Integration
Scope Scope
Schedule Schedule
Cost Cost
Quality
Resources
Communications
Risk
Procurement
Stakeholders
28
Project Risk
An uncertain event or condition that, if it occurs, has a
positive or negative effect on one or more project
objectives (event-based risk). PMBOK, 6th Edition (2017)
– Both opportunities or threats; positive or negative

outcomes.
– Risk=(Probability of Event) x (Consequences of Event)
29
30
Risk Management Process
Plan Risk Management

Outputs:
1. Risk Management Plan
2. Risk Log/Register
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
31
Planning:
Project Procurement
Management
Monitoring &
Controlling
Integration
Scope Scope
Schedule Schedule
Cost Cost
Quality
Resources
Communications
Risk
Procurement
Stakeholders
33
Procurement Management Process
Plan Procurement Management
Outsourcing Process Stages:

• Evaluation and selection
• Contract development
• Relationship management Outputs:
1. Procurement Management
• Delivery management Plan
34
Tips for Buyers
1. Align seller’s goals with yours (win-win) 10. Look for “go-to” partners
2. Ensure WBS is appropriate 11. Try out a new vendor
3. Tie acceptance of deliverables to 12. Beware of certifications
payments
4. Use phases to reduce risk (limit the
commitment length by project phases).
5. Understand resource and process
dependencies
6. Use project management fundamentals
to reduce risk and improve quality
7. Integrate vendor teams whenever
possible
8. Use a third party to QA vendor’s
activities
9. Evaluate vendor estimates
35
Tips for Sellers
1. Get formal acceptance

2. Clarify standards and acceptance criteria
3. Define review process
4. Control invoicing process
5. Keep a close eye on resource dependencies
6. Manage communications
7. Be transparent
36
Contract Types
The three common contract types are as follows:

– Fixed price (FP)
– Cost reimbursable (CR)
– Time and materials (T&M)
The three variations of cost-reimbursable contracts are
as follows:
– Cost Plus Fixed Fee (CPFF)
– Cost Plus Incentive Fee (CPIF)
– Cost Plus Award Fee (CPAF)
37
Fixed-Price Contracts
• Setting a fixed total price for a defined product,

service, or result to be provided.
– Should be used when the requirements are well
defined and no significant changes to the scope
are expected.
38
Cost Reimbursement Contracts
Involves payments (cost reimbursements) to the seller for all legitimate actual
costs incurred for completed work, plus a fee representing seller profit.
Should be used if the scope of work is expected to change significantly during
the execution of the contract.
• CPFF: reimbursed for all allowable costs and receives a fixed-fee payment
calculated as a percentage of the initial estimated project costs.
• CPIF: reimbursed for all allowable costs and receives a predetermined
incentive fee based on achieving certain performance objectives as set
forth in the contract. If final costs are less or greater than the original
estimated costs, then both buyer and seller share costs from the
departures based upon a pre-negotiated cost-sharing formula, for
example, an 80/20 split over/under target costs based on the actual
performance of the seller.
• CPAF: reimbursed for all legitimate costs, but the majority of the fee is
earned based on the satisfaction of certain broad subjective performance
criteria that are defined and incorporated into the contract.
39
Time and Material Contracts
• A hybrid type of contractual arrangement with
aspects of cost-reimbursable & fixed-price contracts.
– Often used when a precise statement of work
cannot be quickly prescribed: long-term projects
with dynamic requirements; Client wants the
flexibility to modify scope or vary the workloads.
– Client pays for actual work scope based on hourly
rates of labor, plus costs of materials.
– Flexible, opportunity to adjust requirements, shift
directions, replace features, etc.
40
Project Procurement Process
41

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Project Management I

Sara Hajmohammad, PhD, PMP

PMBOK, 6th Edition (2017)

Plan Quality Management

Project Quality: conformance to requirements and

Quality is planned in, not inspected in.

• Identify Quality Expectations (Stakeholders)

PMBOK, 6th Edition (2017)

Estimate Activity Resources Requirements

• Defining how to estimate,

• Methods for identification, estimation of resources

PMBOK, 6th Edition (2017)

PMBOK, 6th Edition (2017)

• Exchange of information, intended or involuntary.

The goal of communications

From To Frequency Format Media

Project Status Meeting,

Project Status Email or

– Both opportunities or threats; positive or negative

Plan Risk Management

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Plan Risk Responses

Outsourcing Process Stages:

• Delivery management Plan

1. Get formal acceptance

The three common contract types are as follows:

• Setting a fixed total price for a defined product,

PMBOK, 6th Edition (2017)

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