Post on 26-Jan-2023
Project Management EssentialsBased on the PMBOK® Guide 6th Edition and AGILE Practice Guide
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Project Management Institute, A Guide to the Project Management
Body of Knowledge (PMBOK® Guide) – Sixth Edition, Project Management Institute, Inc.,
2017. Copyright and all rights reserved.
Material from this publication has been reproduced with the permission of PMI®.
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PMP Program Schedule
s/n Activity Days
1 Welcome, Registration and Introductions Day 1 (9.00 am)
2 Predictive Approach – PMBoK Guide Day 1
3 Predictive Approach – PMBoK Guide Day 2
4 Predictive Approach – PMBoK Guide Day 3
5 Agile Approach – Agile Practice Guide Day 3
6 Agile Approach - Agile Practice Guide Day 4
7 Wrap Up Day 4
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Daily Schedule Guide
s/n Activity Duration
1 Session 1 9.00 am – 11.00 am
2 Break 11.00 am – 11.30 am
3 Session 2 11.30 am – 1.00 pm
4 Lunch 1.00 pm – 1.45 pm
5 Session 3 1.45 pm – 4.00 pm
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Course Objectives
Acquire in-depth knowledge of the Project
Management Body of Knowledge (PMBOK®)
Guide, Sixth Edition.
Prepare for the PMP® Exams
Develop Project Management Expertise
Fulfill the 35 hour PM educational requirement to
be eligible for the PMP® certification exams.
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Project
Management
FrameworkUnderstanding the
Project Management
Environment
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Framework: Project
What is a Project?
A Project is a temporary endeavor undertaken to create a unique product,
service or result.
A Project is an initiative that has the following characteristics:
Has a specific purpose
Creates specific results
Has a definite start and finish date
Could be progressively elaborated as more is learned about the project
details.
When you work on a project where you might not know all the details, you
can plan what you can determine and begin the work As you progress on the
work of the project, future details begin to emerge about the work of the
project (Progressive Elaboration)
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Framework: Project Management
There are four types of lifecycles considered in the PMI Agile Practice Guide namely;
Predictive Life Cycle
Iterative Lifecycle
Incremental Life Cycle and
Agile Life Cycle
“Project Management is the application of knowledge, skills, tools
and techniques to project activities to meet the project
requirements.
Projects come in many shapes and there are a variety of ways to
undertake them. Project teams need awareness of the
characteristics and options available to select the approach most
likely to be successful for the situation
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Project Management Approaches
A more traditional approach with the bulk of planning occurring
upfront, then executing in a single pass; a sequential process
An approach that allows feedback for unfinished work to
improve and modify that work
Predictive Life Cycle
Iterative Lifecycle
An approach that provides finished deliverables that the
customer may be able to use immediatelyIncremental Life Cycle
An approach that is both iterative and incremental to refine
work items and deliver frequentlyAgile Life Cycle
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Project
Management
FrameworkPredictive Approach
Based on the PMBoK
Guide
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Framework: Project Management
It can include:
Identifying what the project will require
Determining realistic goals
Managing the triple constraint and
Adapting the various plans as needed to achieve the goals of the project and Stakeholders.
Project Management can start with selection of the suitable processes associated with completing the work of the project.
In addition, it can involve using an established methodology to align the project and product requirements with the product specifications.
Project management, based on the PMBoK Guide 6th Edition (which
is consistent with the predictive approach/lifecycle) is accomplished
through the appropriate application and integration of the 49
processes.
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Framework: PMBOK® Guide
A Guide to the Project Management Body of Knowledge (PMBOK® Guide) is
a formal document that describes established norms, methods, processes
and practices in Project Management.
It is the standard for managing most projects most of the time across many
types of industries
It describes the project management processes, tools and techniques that
are used to manage a project towards a successful outcome.
The PMBOK® Guide adopts a process based approach to the management
of projects
A process is a set of interrelated actions and activities performed to
achieve a pre-specified product, service or result.
Each process is characterized by its inputs, the tools and techniques that
can be applied and the resulting outputs
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Framework: PMBOK® Guide
Tools & Techniques
An output is the result of
carrying out the process
or the objective to be
achieved
An input is essentially
what is needed before the
process (activity, task)
can be carried out.
Inputs Outputs
• Tools and
Techniques
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Framework: PMBOK® Guide
Project Management Processes
Product Oriented Processes
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Framework: Life Cycle Interaction
Life Cycle interaction illustrates how the
three life cycles interacts
Project Life Cycle
The work of the project e.g. Construction
Product Life Cycle
(The Overall Life of the Product from Initialization to Rollout to Taking
out of Service)
Timeline
Project Management Life Cycle
The Project Management of the Project
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Framework: Project, Program and Portfolio and
Strategic Planning Interaction
Portfolio of Projects
Program 1
Project 1A Project 1B
Project A Program 2
Project 2A Project 2B
Strategic Planning
The figure below illustrates how projects, programs and portfolios interrelate
with the strategic planning of a company
Strategic Planning is a practice by which an organisation looks into the future
for products or services it must have to remain profitable or attain its goals,
typically three to five years in the future
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Framework: Portfolio and Portfolio
Management
A Portfolio is a collection of projects or programs and other work that are
grouped together to facilitate the effective management of that work to meet
strategic business objectives. The projects or programs of the portfolio may
not necessarily be interdependent or directly related.
Portfolio Management involves the centralised management of one or more
portfolios and other related work to achieve specific strategic business
objectives.
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Framework: Program and Program
Management
This could also involve the program interacting with operations as a
result of the integration of a program (and its project) into operations.
Program encompasses
Projects of similar work (or)
Correlated activities managed in a coordinated way to attain benefits that
could not be achieved separately.
Subprojects are created when there is a need to break Projects down
into smaller pieces that are easier to manage
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Framework: Project vs. Operations
Management
Project Management is the creation of temporary
specific intiatives.
Operations Management deals with the ongoing
repetitive day to day running of the enterprise.
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Framework: Triple Constraint
One of the basic foundations of project
management defined by Scope, Time and
Cost.
All three constraints are of equal
importance (unless otherwise stated)
Time
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Framework: Enhanced Triple Constraint
There is a modern approach to the triple constraint theory.
Developed due to the significant effect on a project of the additional components of Risk, Customer Satisfaction, Resources, etc, the diagram has been enhanced.
The customer satisfaction needs and risk tolerances of key stakeholders can influence
Scope
Time
Cost
Quality goals of the project
Customer
Satisfaction
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Framework: Project Stakeholders
A stakeholder is any person or organisation that is actively involved in the
project, or whose interests may be positively or negatively affected by
execution or completion of the project.
They are not necessarily people involved in creation and completion of project
alone, but also those that may be impacted by the result and functionality upon
project completion.
Examples: an end user who will utilise the project result, or someone who may
be employed as a result of project completion.
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Framework: Project Stakeholders
Project
Management
Team Project
Manager
Project Team
Project
Stakeholders
The Project
Operations
Management
Functional
Managers
Sellers/
Business
Partners
Customer/
Users
Other
Stakeholders
Portfolio
Manager
Program
Manager
Project
Management
Office
Project
Team
Project
Sponsor
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Project Stakeholders: Project Manager
This is the person assigned by the performing organisation to achieve the
project objectives.
The role involves communication with all others and integration of activities with
all others.
The Project Manager:
Leads the team in planning the project
Manages the constraints including; cost, schedule, scope, quality, risk,
resources, etc on the project to achieve project objectives
Communicates project status as it evolves
Manages change and stakeholder expectations on the project
He is responsible for delivering the project objectives
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Project Stakeholders: Project Manager
Competencies
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Project Stakeholders: Project Manager
Competencies
Technical PM– What the PM knows about Project Management
Strategic and Business Management – Aligning with overall
business goals and strategy
Leadership – refers to the behaviour of the Project Manager while
performing project work. This includes attitudes, core personality
characteristics, and leadership amongst others.
Interpersonal Skills – Leadership, Teambuilding, Motivation,
Communication, Influencing, Decision Making, Political and
Cultural Awareness, Negotiation, Trust Building, Conflict
Management and Coaching.
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A project management team member is anyone on the team who is
directly working on project management related items
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Project Stakeholders: Project Management Team,
Coordinator and Expeditor
When the organisational structure does not support a full-scale project,
or It is used to support the project manager.
Project coordinators act as communication links to senior management
They have some decision making authority.
The organisation structure does not support a full scale project
manager.
It is used to support the project manager
He could act as the communication link to senior management on
projects.
They do not have decision making authority
Project
Management
Team
Project
Coordinator
Project
Expeditor
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Project Stakeholders: Customer/User & Project
Sponsor
The person or group that will make use of the result or product
of the project.
The user could be the “owner of the work” of the project or the
person “using the work” of the project
The sponsor is the person or group that provides the financial
resources, in kind or in cash for the project:
Champions and Nurtures the project from conception
Leads the project unto formal authorisation, plays key role
in creating the project charter and initial scope
Protects the interest of the Project.
Typically the project manager consults the sponsor for
approval on changes to the project that could impact on the
charter or that have particularly high risks
Customer/
User
Project
Sponsor|
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Project Stakeholders: Functional Management
This position has the responsibility to manage functional areas
of an organisation e.g. Finance, Human resource, Accounting,
etc.
Typically this role conflicts with the project manager and
direction of the project.
People who are directly involved in project management
activities
Functional
Management
Project
Management
Team
Members
The group that is performing the work of the project
Project Team
Members
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Project Stakeholders: Project Management Office
(PMO)
There are several possible configurations by which a PMO can exist.
The Supportive Project Office.
Empowers Project managers and teams to deliver projects. Offers training,
mentoring, administration and reporting.
The Controlling Project Office.
Offers project reviews, audits and assessments. May also enforce standards
and processes.
The Directive Project Office
All project managers report to this office and the project office is directly
responsible for the success of all projects.
PMO is an organisational entity assigned various responsibilities related to the
centralised and coordinated management of the projects under its domain
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Project Stakeholders: Performing Organisation
The Performing Organisation is the company or division of a
company that is most directly involved in doing the work of the
project
Performing
Organisation
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Organisation Influences;
The Organisational environment within which a project is performed will
influence the project. Two major category of influences are;
Enterprise Environmental Factors
Organisation Process Assets
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Its an input to a lot of Processes, especially planning processes. They are variables external to the project.
They are factors that make up the project environment
They include:
Company Culture and Structure (Internal)
Government or industry standards (External)
Infrastructure e.g. facility …..
Existing human resource …..
Personnel administration e.g. hiring and firingguidelines ….
Company work authorisation system ….
Market conditions ….
Stakeholder risk tolerances ….
Information System, e.t.c.
Enterprise Environmental Factors
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Organisation Process Assets
This include formal and informal company policies, procedures, plans and guidelines
It includes organisations learning and knowledge from previous projects
Two Categories:
Company processes and procedures for conducting work
Policies and procedures e.g. HSE,
Guidelines, work instructions
Templates e.g. risk templates, WBS templates
Organisation communication requirements
Financial controls procedures
Change control procedures
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Companies corporate knowledge base for storing and retrieving information.
Project files and filing
Historical information and lessons learned
Configuration management data
Databases
Financial data
E.t.c.
Organisation Process Assets
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Organisation Influences; Organisational Structures
Six key types of Organisational Structures include:
Functional
Weak Matrix
Balanced Matrix
Strong Matrix
Projectised
Composite
The Organisational environment within which a project is performed will
influence the project. The culture, style and structure of the
organisation as well as the organisation’s project management maturity
and systems will impact on project success.
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Describes each characteristics of the different organisational systems
Org Structure
Functional
Matrix
ProjectisedProject
Xteristics Weak
Matrix
Balanced
Matrix
Strong
Matrix
Project
Manager’
Authority
Little if any LimitedLow to
Medium
Medium to
HighHigh to total
Resources
available for
project work
Literally none Limited Low to
Medium
Medium to
HighHigh to total
Who controls
project
spending
Functional
manager
Functional
managerMixed
Project
Manager
Project
Manager
Person’s role
as a PMPart-time Part-time Full time Full time Full time
Project
management
support staff
Part-timePart-time
Part-timeFull time Full time
Organisational Structure: Summary
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Discussion:
ABC is a general contractor to the Federal Government and you
have been called in as a Project Management Consultant.
An argument between the sales team and the project
management team ensued in one of the project meetings in the
initial stages of the project over some of the prices quoted for key
aspects of the project work for a Federal Government project.
-What may have caused these disagreements?
-How could such disagreements identified be averted?
What is the role of Project Management in the bidding process.
Should Project Managers be appointed before bids are
submitted, should they be part of the bidding process or should
they lead the bidding process?
10 minutes
Case
Study
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The Five Process Groups
Initiating
Planning
ExecutingMonitoring
and controlling
Closing
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The Ten Knowledge Areas
Project Integration
Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Resource
Management
Project CommunicationManagement
Project Risk Management
Project Procurement Management
1 2 3
4 5 6
7 8 9
Project StakeholderManagement
10
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The initiating processes formally starts a new project
or phase. The project is formally authorised and the
Project Manager is provided with information to begin
the project.
Typically, a formal project selection process is
undertaken utilising established selection criteria.
Once a project is selected, it is chatered i.e.
authorised.
Stakeholder identification is also done.
Typically before a project moves beyond initiation,
A project manager is assigned
High level planning is done including; phasing of
large projects, clarification of project objectives,
requirements, constraints, etc
Identify stakeholders and develop stakeholder
management strategy
Charter is created here!
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Process Groups Summary: Initiating
Initiating
Processes
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Process Groups Summary: Planning
The Planning Process Group is perhaps the most
important of all the groups. It is important to spend
sufficient time planning
Planning determines whether the objectives of the
project can be achieved within the given constraints.
It details HOW the project will be accomplished
across all the knowledge areas
The Project Manager and his/her team make plans for
each of the ten knowledge areas: Scope, Time, Cost,
Quality, Resources, Communication, Risk,
Procurement, Stakeholder Engagement and
Integration; including and very importantly plans to
manage changes.
The Planning Processes develop the overall Project
Management Plan
Planning
Processes
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Process Groups Summary: Executing
The Executing Processes are focused on completing
the work of the project as defined in the Project
Management Plan to accomplish the project
objectives.
Project Management activities in the executing
processes are mainly in the areas of managing
people, following processes and distributing
information.
Throughout the process of executing the plan, the
project team will also need to perform work that
result from changes provided these changes are
approved.
The Executing Processes create work results
Executing
Processes
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Process Groups Summary: Monitoring and
Controlling
In the Monitoring and Controlling, the team measures
the performance of the project to the project
management plan.
When the team encounters variances (as usually
happens), the Monitoring and Controlling processes
are utilised to adjust the plan to compensate for new
discoveries (dates, resources, cost, scope, etc.)
Monitoring and Controlling Processes results in corrective action, preventive action or defect
repair
Monitoring and
Controlling
Processes
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Process Groups Summary: Closing
In the Closing Processes, appropriate processes and
procedures are applied to formally close the project
when project work is finished. This needs to happen
even if the project is terminated.
The project is not finished until it has been closed
The Closing processes can include Close
Procurement, formal sign-off, measuring customer
satisfaction, formal handover, as well as archiving
any project records, documents, etc.
Closing Processes results in the product, services
or results of the project.
Closing
Processes
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Group Exercise
You have learnt about the process approach to managing
projects.
In your own words, make an attempt at defining the required
inputs, outputs, tools and techniques for the following processes;
1. Develop Project Charter
2. Direct and Manage Project Work
3. Monitor and Control Project Work
4. Develop Project Management Plan
5. Close Project or Phase
20 minutes
Submissions to be made to the Facilitator and discussed in class
Exercise
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ITTO Table Summary
ITTO – Inputs, Tools and Techniques and Outputs
The PMBOK® Guide has over 600 inputs, tools and
techniques and outputs.
These are found within the 49 processes
It is not necessary to use all ITTOs of each Process.
They are deployed based on the need.
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Integration Management
These includes the processes and activities needed to
identify, define, combine, unify and coordinate the various
processes and activities on the project.
Integration management is specific to Project Manager’s
while other knowledge areas may be managed by
specialists. The PM puts all the project pieces together into
a whole utilising the integration tools and techniques.
Project Integration Management includes making choices
about Resource allocation
Balancing competing demands
Examining any alternative approaches
Tailoring the processes to meet project objectives
Managing the interdependencies among the Project
Management Knowledge Areas
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Integration Management
Project Integration Management is about; Ensuring that the deliverables due dates of the product, service or
result; project life cycle and the benefits management plan are
aligned;
Providing a project management plan to achieve the objective;
Ensuringn the creation and the use of appropriate knowledge to and
from the project as necessary;
Managing the performance and changes of the activities in the
project management plan;
Making integrated decisions regarding key changes impacting
project;
Measuring and monitoring the project’s progress and taking
appropriate action to meet project objectives;
Collecting data on the results achieved, analyzing the data to obtain
information and communicating this information to relevant
stakeholders;
Completing all the work of the project and formally closing each
phase, contract and the project as a whole and;
Managing phase transitions when necessary.
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Tailoring
Due to the uniqueness of each project, the way Integration
processes are applied may need to be tailored. Considerations for
tailoring include, but are not limited to; Project life cycle
Development life cycle
Management approaches
Knowledge management
Change
Governance
Lessons learned
Benefits
Tailoring considerations run through all of the Project Management
Knowledge Areas
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Integration Process Table
Process Name Process Group Main Outputs
Develop Project Charter Initiating Project Charter
Develop Project
Management PlanPlanning Project Management Plan
Direct and Manage Project
WorkExecuting
Deliverables
Work Performance
Information
Manage Project Knowledge Executing Lesson Learned
Monitor and Control
Project WorkMonitoring and Controlling Requested Changes
Perform Integrated Change
ControlMonitoring and Controlling
Change Request Status
Updates
Project Management Plan
(Updates)
Close Project or Phase Closing
Final Product, Service or
Results.
Organisational Process
Asset Updates
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Develop Project Charter
Tools & Techniques
1. Project Charter
2. Assumption Log
Business Documents
• Business Case
Agreements
Enterprise Environmental
Factors
Organisational Process
Assets
Inputs OutputsExpert Judgment
Data Gathering
Brainstorming
Focus Groups, etc
Interpersonal and Team
Skills
Conflict Management
Facilitation
Meetings
This process includes the task of creating a document that formally authorises a project or a phase. Initial and high level requirements of the project stakeholders are documented
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Project Charter
No Charter, No Project!
A typical Charter will include:
Project Title and Description
Assigned PM and Authority level of the PM
Business Case
Project Justification
Product Description
Constraints and assumptions
Stakeholder definition and level of influence.
Pre assigned Resources
High Level Project Risks
Signatures
What is the importance of a Project Charter?
Who creates the Project Charter?
Must it be a physical document?
Project (phase)
formally
authorised.
Gives
existence to
project
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Project Selection Methods
There are a number of ways to select the project to embark upon from among several possibilities
The two broad categories of project selection methods for the PMP® exams
Benefit Measurement Methods (Comparative Approach):
Murder Board
Peer Review
Scoring models
Economic models.
Mathematical Models:
Linear Programming
Integer Programming
Dynamic Programming, etc
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Economic Models
Project Selection
ToolAcronym Option to Select Example
Return on
InvestmentROI
The biggest
number or
percentage
$100,000 or 15%
Internal Rate of
ReturnIRR
The biggest
percentage18.2%
Net Present Value NPV
The biggest
number (years are
already factored in)
$7500
Benefit Cost Ratio BCR The biggest ratio 4:1
Payback PeriodThe shortest
duration16 months
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Management By Objectives (MBO)
MBO is a term used to determine where a project fits in the “big picture” of planning at the company. if your project fails with the company’s direction, it could be de-prioritised or cancelled.
Could also be used as a goal setting technique, it emphasizes setting attainable goals, monitoring for variance and adjusting as needed.
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Terms Definition
In Project Management planning, you will always have items that you simply do not have the characteristics of yet.
Assumptions are deployed here
In areas like scheduling, budgeting
Lessons learned are valuable in creating assumptions
As project evolves, we eliminate assumptions.
Assumptions
Constraints exist throughout the project
Every project has constraints
They are factors that limit the options on the project
It could be number of people available, amount of money or time available, or other resources.
Constraints
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Terms Definition
Applied to any technical or management details during the processes
Provided by individuals or groups with specialisedknowledge or training
Sources can include:
Other units within the organisation
Consultants
Stakeholders, including customers and sponsors
Professional and technical associations
Industry groups
Expert Judgment
This is the original estimate plus any approved changes
The actuals are compared with the baseline (in M&C)
There will be a baseline value for any item on the project to be measured
Scope, Time, Cost, Quality are always in this list.
Baseline
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Develop Project Management Plan
This Process creates an integrated Project management plan. This includes (but not limited to) the scope, schedule, cost, quality, staffing, communication, risk, stakeholder and procurement management plans.
A huge number of activities and documents come together to create this plan. It’s the integration of various management plans. The document becomes the overall reference for the project as its plan. It becomes the baseline for performance measurement.
It describes HOW the Execution, Monitoring and Controlling and Closing of the Project is carried out.
The resulting Project Management Plan is progressively elaborated by updates throughout the project.
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Develop Project Management Plan
Tools & Techniques
• Project Management Plan
• Project Charter
• Output from Other
(Planning) Processes
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs OutputsExpert Judgment
Data Gathering
Brainstorming
Focus Groups, etc
Interpersonal and Team
Skills
Conflict Management
Facilitation
Meetings
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Direct and Manage Project Work
Tools & Techniques
• Deliverables
• Issue Logs
• Change Requests
• Project Management Plan
Updates
• Project Document
Updates
• Organisational Process
Assets Updates
• Work Performance Data
• Project Management Plan
• Project Documents
• Approved Change
Requests
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs• Expert Judgment
• Project Management
Information System
• Meetings
This process creates the deliverables of the project as defined in the project management plan
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Direct and Manage Project Work
Implementation of Approved changes cover the following areas
Corrective Action – to bring expected future performance to align with the plan
Preventive Action – perform activity that can reduce the probability of negative occurrence
Defect Repair – identification of defect and subsequent repair or replacement.
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Manage Project Knowledge
This is the process of using existing knowledge and creating new knowledge to achieve the project’s objectives and contribute to organizational learning
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Manage Project Knowledge
Tools & Techniques
• Lessons learned register
• Project Management Plan
Updates
• Organisational Process
Assets Updates
• Project Management Plan
• Project Documents
• Deliverables
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs• Expert Judgment
• Knowledge
management
• Information
management
• Interpersonal and
Team skills
This process creates the deliverables of the project as defined in the project management plan
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Monitor and Control Project Work
This includes, monitoring and controlling the initiating through to the closing stages of the project to attain the goals described in the Project Management Plan.
Monitoring includes collecting, measuring, interpreting and communicating performance information on the project
Control includes determining appropriate action, corrective or preventive, to resolve performance issues on the project
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Monitor and Control Project Work
Tools & Techniques
• Change Requests
• Work Performance
Reports
• Project Management
Plan Updates
• Project Document
Updates
• Project Management Plan
• Project Documents• Schedule Forecasts
• Cost Forecasts
• Assumption Log
• Basis of Estimate, etc
• Work Performance Info
• Agreements
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Expert Judgment
• Data Analysis
• Alternative Analysis
• Cost Benefit Analysis
• Earned Value Analysis
• Root Cause Analysis
• Trend Analysis
• Decision Making
• Voting
• Meetings
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Perform Integrated Change Control
This deals with analysis of other knowledge areas impacted when one knowledge area encounters a change request.
Integrated change control includes managing changes to the; Deliverables Organisational Process Assets Project Documents and The Project Management Plan
It is performed throughout the project
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Perform Integrated Change Control
Integrated Change Control can include any of the following
Identifying that a change needs to occur Ensuring that only approved changes are
implemented Reviewing and approving requested changes Monitoring and adjusting baseline as needed Reviewing and approving all recommended
corrective and preventive actions Documenting the complete impact of requested
changes Validating Defect repair.
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Perform Integrated Change Control
Tools & Techniques
• Approved Change
Requests
• Project Management
Plan (Updates)
• Project Document
Updates
• Project Management Plan
• Project Documents
• Change Requests
• Work Performance
Reports
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Expert Judgment
• Change Control
Tools
• Data Analysis
• Decision Making
• Meetings
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Terms Definition
A system for authorising the start of work packages or activities.
It ensures that work is done as planned.
It ensures that the right work is done in the right order at the right time and by the right people.
If work is not done in the sequence has planned, it can cause issues, result in rework etc.
Work Authorisation System
No matter how well a project is planned, there will always be changes.
However, a requested change typically wouldn’t be considered as approved unless stated.
Its important to explain the impact of requested changes to the authorisedrequestor or sponsor and let the person make the call on approving the changes based on the impact.
If not approved, a requested change has no impact on the project.
Approved changes are those that have been through the Change Control System and approved. They have impact on the project
Change Requests vs Approved
Changes
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It’s a documented formal process that manages the change of project documentation. It is used to assess the impact and consequences of requested changes on the project.
Changes can be approved or rejected
There are change control systems specific to knowledge areas and also the overall system affecting several knowledge areas.
Change Control System
A group of people formally recognisedand who have the knowledge and expertise to review and analysechange requests with a view to approving or rejecting changes on a project.
The CCB usually has representation from various areas of the organisation, it may include the Project Manager, Sponsor, Customer, etc
Their objective is to meet the needs of the company and project.
Change Control Board
Terms Definition
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Once it is determined that a change needs to occur and a change request has been raised, the PM should Evaluate the impact of the changes (remember the concept of
enhanced triple constraint)
Create Options. It is important that the PM and his team create alternatives on how the project objectives can be attained within the constraints available. This can include options like crashing or fastracking.
Get approval for the change request (may be rejected!)
Get Customer buy-in (if required)
Update project documentation (configuration management)
Implement change
Guidance on making changes on the project
Terms Definition
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Configuration Management Includes:
Configuration Identification Configuration Status Accounting Configuration Verification and Audit
It defines how changes to the deliverables and the resulting documentation will be managed.
It ensures that all the numerous changes to the huge number of documents on the project are updated and communicated to all stakeholders.
Terms Definition
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Close Project or Phase
This involves completing activities across process groups to close a phase or the entire project.
When this process is complete, the project or phase is closed. Two documentation related products are of concern here Closing the Project procedure – deals with the
collection of project records, validation of project success or failure, Lessons learned, and the archiving of project records for historical information.
Close Procurement procedures – deals with closing out any contract related activities on the project
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Close Project or Phase
Tools & Techniques
• Project Document
Updates
• Final Product, Service
or Result Transition
• Final report
• Organisational
Process Assets
Updates
• Project Charter
• Project Management Plan
• Project Documents
• Accepted Deliverables
• Business Documents
• Agreements
• Procurement
Documentation
• Organisational Process
Assets
Inputs Outputs
• Expert Judgment
• Data Analysis
• Meetings
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Sequence for Closure
When closing, the PM reviews the project management plan to ensure that all project work is completed and that the project has met its objectives.
The activities necessary for the administrative closure of the project or phase include, but are not limited to; Activities necessary to satisfy completion of the phase or
project; Activities related to the completion of contractual
agreements Activities necessary to transfer project’s product, services
or results to the next phase or to operations Collecting and appropriately disseminating any
suggestions for improvement of policies and procedures Measuring stakeholder satisfaction
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• Activities necessary to satisfy completion of the phase or project include
Ensuring all documents and deliverables are up-to-date and all issues resolved
Confirming delivery and formal acceptance of deliverables by customer
Ensuring all costs are charged to the project Closing project accounut Reassigning personnel Dealing with excess project material Reallocating project facilities, equipment and other
resources Elaborating final project reportsas required by
organizational policies
Sequence for Closure
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• Activities related to the completion of contractual agreements;
Confirming formal acceptance of the seller’s work Finalising open claims Updating records to reflect final results Archiving such information for future use
• Other activities include; Collect project or phase records Audit project success or failure Manage knowledge sharing and transfer Identify lessons learned Archive project information for future use
Sequence for Closure
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Scope Management
This includes the processes utilised to ensure that all the work required to complete the project i.e. deliver on the project objectives are included and only the work required are included.
The processes aim at collating and defining what is included in the project. They also aim at controlling what is and is not included in the project.
Scope can refer to either
Product Scope or Project Scope
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Scope Process Table
Process Name Process Group Main Outputs
Plan Scope Management Planning• Scope Management
Plan
Collect Requirements Planning• Requirements
Documentation
Define Scope Planning Project Scope Statement
Create WBS Planning Work Breakdown Structure
ValidateScopeMonitoring and Controlling
Accepted Deliverables
Control Scope Monitoring and ControllingWork Performance
Measurements
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Plan Scope Management
Tools & Techniques
• Scope Management
Plan
• Requirements
Management Plan.
• Project Management Plan
• Project Charter
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Expert Judgment
• Data Analysis
• Meetings
This is the process of creating a scope management plan that documents how the project scope will be defined, validated and controlled.
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Collect Requirements
Tools & Techniques
• Requirements
Documentation
• Requirements
Traceability Matrix
• Project Charter
• Project Management Plan• Scope Management Plan
• Requirements Management
Plan
• Stakeholder Management
Plan
• Project Documents
• Business Documents
• Agreements
• EEF
• OPA
Inputs Outputs• Expert Judgment
• Data Gathering• Interviews
• Focus Groups
• Facilitated Workshop
• Group Creativity technique
• Group decision making
techniques
• Questionnaires and surveys
• Observations
• Benchmarkiing
• Data Gathering• Document Analysis
• Decision Making
• Data Representation
• Interpersonal and Team
Skills
• Context Diagrams
• Prototypes
This is the process of defining and documenting stakeholders needs to meet the project objectives
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Requirement Documentation
Components of requirement documentation can include but are not limited to Business need Business and project objectives for traceability Functional requirements Non functional requirements Acceptance criteria Quality requirements Business rules stating guiding principles of the
organisation Impact to other organisational areas Support and training requirements Requirements assumptions and constraints
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Define Scope
The emphasis is on creating a written Scope Statement. This will guide the scope of the project
It should include/refer to the following Project Objectives Product Scope description Project requirements Project deliverables Project boundaries Product acceptance criteria Project constraints Project assumptions Project Exclusions – sometimes to avoid
confusion… it states what is not in the project
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Define Scope
Tools & Techniques
• Project Scope
Statement
• Project Document
(Updates)
• Project Charter
• Project Management Plan• Scope Management Plan
• Project Documents• Requirements
Documentation
• OPA
• EEF
Inputs Outputs
• Expert Judgment
• Data Analysis
• Alternatives Generation
• Decision Making
• Product Analysis
• Interpersonal and Team
Skills
• Facilitation
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Create Work Breakdown Structure (WBS)
In Create WBS, the major deliverables are divided into smaller components that can be easier estimated, managed and controlled
The lowest level of the WBS is the Work Package. Here the cost and schedule can be reliably estimated. Any further breakdown results in activity lists.
Decomposition is the technique utilised in creating the WBS.
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Create Work Breakdown Structure (WBS)
Tools & Techniques
• Scope Baseline
• Project Document
(Updates)
• Project Management Plan• Scope Management Plan
• Project Documents• Project Scope Statement
• Requirements
Documentation
• Organisational Process
Assets
• Enterprise Environmental
Factors
Inputs Outputs
• Decomposition
• Expert Judgment
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WBS
The WBS is one of the most important pieces of the project management planning process. It is: The main output of the Create WBS Advisably done by the Project Manager together
with the team. Describes the breakdown of work and restricts
its contents to listing only project work. Work not in the WBS is outside the scope of the
project (100% rule) The Work Package level is reached when they
include deliverables that Can be realistically and confidently estimated Can be completed quickly Can be completed without interruption (need for
more information) May be outsourced
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Definitions
Progressive Elaboration Continuously improving and
detailing a plan as more detailed and specific information and more accurate estimates become available as the project progresses.
Rolling Wave Planning is a technique that utilises the
progressive elaboration concept in planning.
It defines a low level of detail on the WBS for the immediate work being accomplished while the work to be done in the future is only at a high level of decomposition in the WBS until it is close to been started
Decomposition
A planning technique that subdivides the project scope and project deliverables into smaller , more manageable components, until the project work associated with accomplishing the project scope and providing the deliverables is defined in sufficient detail to support executing, monitoring and controlling the work
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Creating the WBS
Define the main pieces of work on the project Structuring and Organising the WBS Decompose each of those pieces to encompass
all of the work that would be on the project down to an appropriate level of detail where each activity is defined, traceable and manageable.
Developing and assigning identification codes to the WBS components
Verifying that the degree of decomposition is necessary and sufficient.
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WBS Dictionary
It provides supporting detail that are not shown in the graphical format.
It can include Description of the work package Overall time and cost details of the work package Billing charging account for the work package Units or individuals responsible for each work
package
What is the Value of the WBS?
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Importance of the WBS
WBS
Activity List
Network Diagram
Staffing
Estimating
Scheduling
Budgeting
Quality Mgt
Risk Mgt
Project Control
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Validate Scope
Tools & Techniques
• Accepted deliverables
• Change Requests
• Work Performance
Information
• Project Document
(Updates)
• Project Management Plan
• Project Documents• Requirements traceability
matrix
• Verified Deliverables
• Work Performance Data
Inputs Outputs
• Inspection
• Decision Making• Voting
The main goal of scope validation is to secure sign off (formal acceptance) of the project scope as deliverables are completed during the monitoring and control process group.
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Control Scope
The process of monitoring the status of the
project and product scope and managing
changes to the scope baseline.
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Control Scope
Tools & Techniques
• Work Performance
Information
• Project Management
Plan Updates
• Change Requests
• Project Document
(Updates)
• Project Management Plan• Requirements
Documentation
• Project Documents• Requirements traceability
matrix
• Organisational Process
Assets
• Work performance Data
Inputs Outputs
• Data Analysis• Variance Analysis
• Trend Analysis
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Group Discussion:
You just took over as PM for company ABC and you are handed a 100 million
naira Recreation Center Project for WestCoast Local Council. The project was
slated to last for 2 years. It is in its 14th month but it is already 6 months
behind schedule.
Several requests for changes to the scope have come from the West Coast
Local Council chairman, the Athletics Federation of Nigeria, the Local Football
Team Coaches Association, The Landlord Association Executives and Chiefs
in 2 of the communities.
Your Sponsor has insisted that the project has to be completed within the
stipulated 24 months as the World Bank, who are the financiers of the project
will not sign off on the project if the completion date is delayed.
State the steps you will take on this project going forward to gain control of the
project OR the advise you will give company ABC on how to proceed OR what
steps you will take as a Project Management Professional.
20 minutes
Groups to Discuss and present their conclusions with the class
Case
Study
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Schematic of Schedule Management Processes
Schedule Management includes the processes required to manage timely completion of the project.
The figure below shows schedule processes interaction. On smaller projects, the activity definition, sequencing, resource estimating and schedule development may occur as a single overall process.
Define
ActivitiesEstimate
Activity
Duration
Sequence
Activities
Control
Schedule
Develop
Schedule
Project Schedule
Network Diagrams
Activity Duration
Estimates
Project
Schedule
Activity List
Activity
Lis
tPlan
Schedule
Mgt
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Time Process Table
Process Name Process Group Main Outputs
Plan Schedule
ManagementPlanning
Schedule Management
Plan
Define Activities PlanningActivity List
Milestone List
Sequence Activities PlanningProject Schedule
Network Diagram
Estimate Activity
DurationPlanning
Activity Duration
Estimates
Develop Schedule PlanningProject Schedule
Schedule Baseline
Control ScheduleMonitoring and
Controlling
Work Performance
Measurements
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Plan Schedule Management
Tools & Techniques
• Schedule Management
Plan
• Project Management Plan
• Project Charter
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Expert Judgment
• Data Analysis
• Meetings
This is the process of establishing the policies, procedures and documentation for planning, developing, executing and controlling the project schedule.
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Define Activities
Tools & Techniques
• Activity List
• Activity Attributes
• Milestone List
• Change Requests
• Project Management
Plan (Updates)
• Project Management Plan• Schedule Management Plan
• Scope Baseline
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Decomposition
• Rolling Wave
Planning
• Expert Judgement
• Meetings
This define the specific activities required to create the deliverables of the project.
Focus here is on what is being done.
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Sequence Activities
Tools & Techniques
• Project Schedule
Network Diagrams
• Project Document
(Updates)
• Project Management Plan• Scope Baseline
• Schedule Management Plan
• Project Documents• Activity List
• Activity Attributes
• Milestone List
• Organisational Process
Assets
• Enterprise Environmental
Factors
Inputs Outputs
• Precedence
Diagramming Method
(PDM)
• Dependency
Determination
• Leads and Lags
• Project Management
Information System
The process identifies and documents relationships among project activities
Focus is on order of activities Activities are arranged in the most efficient and effective order
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Dependencies
Types of Dependencies Definition Example
Mandatory (Hard Logic) This dependency is based
on the nature of the work
or stipulated by the
contract i.e. A must be
done before B
You must have the roof on before
you begin to apply ceiling tiles or
you must design before
constructing.
Discretionary (Soft/Preferred
Logic)
This dependency is at the
discretion of the project
team. It can be changed if
need be
You prefer but you do not
absolutely have to finish System
testing before commencing User
acceptance testing
External This is dependent on an
external party to the
project e.g. Sellers,
Regulatory Agencies, etc
The city Inspector must approve
any construction before issuing a
certificate of occupancy so the
tenant can move in.
Internal Within project control Need to assemble a machine
before testing
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Network Diagram
Types Precedence Diagramming Method (PDM) or
Activity on Node (AON) Arrow Diagramming Method (ADM) or Activity on
Arrow (AOA) – has been expunged since the 4th Edition PMBOK®
Description It’s a schematic of project activities It shows how activities connect as a result of
activity sequencing It shows how the work of the project will flow. Always drawn from left to right to reflect project
work chronology. It’s a tool for schedule compression.
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PDM
The Precedence Diagramming Method is what is utilised in most modern Project Management scheduling software.
The activities are in the boxes and the arrow connects them
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Estimate Activity Duration
Tools & Techniques
• Duration Estimates
• Basis of Estimates
• Project Document
(Updates)
• Project Management
Plan• Schedule Mgmt Plan
• Scope Baseline
• Project Documents• Activity List
• Activity Attributes
• Activity Resource
Requirements
• Resource Calendars
• Risk Register
• Resource Breakdown
Structure
• Enterprise Env Factors
• Org Process Assets
Inputs Outputs• Expert Judgement
• Analogous
Estimating
• Parametric
Estimating
• Three Point
Estimates
• Decision Making• Voting
• Data Analysis• Reserve Analysis
• Alternative Analysis
• Meetings
Estimate the number of work days (or hours) to complete
an activity.
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Estimating Methods
Method Description Scenarios
Analogous
(Top-Down)
This is usually a total time or cost
estimate that has no significant
detail
It can be created quickly
It lacks detail or individual piece
estimate
A subject matter expert (SME)
creates a high level estimate
based on experience or project
history.
Bottom-Up Detailed estimate usually
involving team input.
Detail and accuracy associated
with it.
It can take significant time to
create
Project Manager and team come
together to create an estimate fro
bottom (activity lists) and roll it up
to get the total estimate.
Parametric Created based on existing
parameters. Based on industry
standards or past experience
Can be done quickly and usually
accurate
Quoting $2 per square foot for
tiling job
Computerised/ Monte Carlo Computer program used to
simulate different outcomes
Several variables can be included
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Other Estimating Formulae
Program Evaluation Review Technique (PERT) PERT utilises three
estimates per activity. It performs a
weighted average of the Pessimistic (P) Optimistic and (O) Realistic (most
likely) (R) It can be used to
calculate time and cost estimates
Pert
formula
Standard
Deviation
Variance
P + 4R + O
6
P - O
6
P - O
6( )2
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Develop Schedule
The Schedule is developed by reviewing
resource needs, Activity sequencing and
activity duration estimates.
At this point, the “what” (Activity list and
Work Breakdown Structure), “when” (start
and finish dates) and “what order” (Activity
Sequencing) come together and the
schedule is born.
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Develop Schedule
Tools & Techniques
• Project Schedule
• Schedule Data
• Schedule Baseline
• Project Calendars
• Change Requests
• Project Management
Plan updates
• Project Document
(Updates)
• Project Management
Plan• Schedule Mgt Plan
• Scope Baseline
• Project Documents• Activity List
• Activity Attributes
• Schedule Network Diag
• Activity Resource
Requirements
• Risk Register
• Resource Calendars
• Duration Estimates
• Project team Assignment
• Agreements
• Enterprise Env Factors
• Org Process Assets
Inputs Outputs• Schedule Network
Analysis
• Critical Path Method
• Schedule
Compression
• Data Analysis• What-if Scenarios
Analysis
• Simulations
• Resource
Optimisation
• Leads and Lags
• PMIS
• Agile Release
Planning
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Critical Path Method
Is used with scheduling environments where aForward Pass is used to establish the earliest the
activities can start and finish
Backward Pass is used to establish the latest the activities can start and finish.
Allows the calculation of the critical path and the amount of slack on each activity.
Any activity on the critical path has zero slack
A negative slack is possible if the project is behind schedule
The PM should have his eyes on the critical path activities
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Critical Path
The Critical Path is
The longest path on a project network diagram
It has no slack.
There can be multiple critical paths
The greatest project risk usually occurs on this
path
A slip on the critical path causes the overall
project finish date to slip
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Slack (Float)
Slack is the amount of time that an activity can slip or be delayed without delaying the finish date of the project (or activity, or published project completion date)
Slack is calculated using a Forward and Backward Pass.
Float can be negative of positive
Types of slack include Free Slack – involves determining the latest an activity can start
without delaying the activities that follow it.
Total Slack – it is the latest an activity can start without delaying the project finish date
Project Slack – is the amount of time an activity can be delayed without delaying the published finish date.
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Critical Path Calculation
When the project starts, Activities A and B can begin. When activity A is done, activity C can begin. When activity B is done, activity D can begin. Activities C and D must finish before activity E can begin. Activity F can begin when activity D is completed. Activity G can begin when activities E and F are completed. When activity G is done, the project is finished.
The durations are shown in the table
Activity Duration
A 4
B 5
C 4
D 2
E 8
F 2
G 5
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Network Diagram Creation
Start
A
G Finish
F B D
C E
4 4 8
2
5
2 5
What are the different paths?
Path ACEG – Duration of 21
Path BDEG – Duration of 20
Path BDFG – Duration of 14
What is the critical path?
Path ACEG – Duration of 21
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Forward and Backward Pass Calculation
Used to determine Critical path of the Network Diagram.
Shows how much slack or float there is for each activity (free float)
Shows how much total slack on the network.
Activities are represented by Early start date (ES) – Earliest an activity can start
Early finish date (EF) – Earliest an activity can finish
Late start date (LS) – Latest an activity can start
Late finish date (LF) – Latest an activity can finish
Duration – The length of an activity
Slack – The number of days (time unit) the activity can delay without affecting other activities or the project finish date
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Forward and Backward Pass Calculation
Early Start (ES) Duration Early Finish (EF)
Activity Name
Late Start (LS) Slack Late Finish (LF)
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Forward Pass Calculation
Step 1 – set the ES of activity A to 0
Step 2 – add the Duration per each activity to its ES to get EF. At a convergence, select the larger of the EF dates and continue
the process
Step 3 – as you move from an activity to the other, set the EF of the current activity as the ES of the next activity
Repeat the steps above for all activities up unto the end.
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Backward Pass Calculation
Step 1 – the LF becomes the same as the EF on the last activity (also the duration of the Critical Path)
Step 2 – subtract the Duration per each activity from its LF to get its LS. At a burst, select the smaller of the LS dates and continue the
process
Step 3 – as you move from an activity to the other, set the LS of the current activity as the LF of the next activity
Repeat the steps above for all activities up unto the end.
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Forward and Backward Pass Calculation Summary
Early Start (ES) Duration Early Finish
(EF)
Activity Name
Late Start
(LS)Slack
Late Finish
(LF)
Sla
ck =
LS
-E
S
Sla
ck =
LF
-E
F
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Example
Activity Preceding Activities Duration in Days
A Start 8
B A 4
C A 10
D B,C 2
E D 2
F D 2
G D 3
H E,F,G 2
I H 1
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Example
1. Which path is the critical path
2. What is the slack/float for Activity F
3. What is the slack/float for Activity B
4. If Activity E now takes four days instead of two
days, has the critical path changed.
5. Based on question 4, what is the new critical
path and what is the duration
6. Based on question 4, what is the slack/float of
the path with the longest (most) float
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Schedule Compression Techniques
Schedule Compression is a process of shortening the project schedule without modifying the scope of the project.
Two main techniques include:Crashing – involves putting more people on the critical
path activities. It does not involve re sequencing activities.
Fast Tracking – involves analysing the network diagram and rearranging the sequence of activities in a bid to shorten the critical path. Fast tracking includes risk exposure.
Both options can be deployed simultaneously
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Schedule Compression Example
The Network Diagram below shows two paths
Path ABDEF for a total duration of 13 and Path ACDEF with a total duration of 12.
Path ABDEF is the critical path with a duration of 13 days
Start Activity F
2 daysFinish
Activity E
4 days
Activity D
2 days
Activity C
1 day
Activity B
2 days
ActivityA
3 days
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Schedule Compression Example
Fast Tracking could be done as shown below
Start Activity F
2 daysFinish
Activity E
4 days
Activity D
2 days
Activity C
1 day
Activity B
2 days
Activity A
3 days
Path ABEF has a total duration of 11
Path ABDF has a total duration of 8
Path ACDF has a total duration of 8
Path ABEF is the new critical path because it is the longest of the three paths.
Fast tracking has reduced the critical path from 13 to 11 days
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Schedule Compression Techniques Comparison
Types of
Compression
Technique
Key
Characteristic
Cost
Characteristic
Quality
Characteristic
Crashing
Putting more
resources on the
Critical Path
activities
Usually increases
cost
Minimal risk
exposure
Fast Tracking
Do activities in
parallel that will
normally be in
sequence
Flexible but
increases cost from
potential rework
Additional risk
exposure because
of possible rework
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Resource Levelling
This is used to produce a resource limited schedule.
As the schedule is created, resources are assigned. When its done, there usually is a pattern of peaks and troughs.
These represents uneven distribution of resources.
Levelling is the process of adjusting these peaks and troughs to create a level usage of resources.
Typically outcomes of resource levelling are;Schedule slip
Cost increase
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Logic Bar Chart
Also known as the Gantt Chart is the common chart used in project management.
Some characteristics of the chart includeHas the table of information (activities, dates, resources,
etc.) on the left and the horizontal bars showing when those activities are happening on the right.
You use the logic bar chart to track day – to – day details of the project.
It could have lines connecting the horizontal bars. Though this shows the sequencing, the ideal tool to view the activity squencingis the Ntwork diagram and not the Logic Bar.
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Milestone Schedule
Usually used in executive reporting. It lacks
detail, generally listing only the main project
milestones as diamonds instead of the bar.
A common misunderstanding about a
milestone is the duration. A milestone has
zero duration.
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Control Schedule
This process is concerned with the monitoring
of project status to update project progress and
manage changes to the schedule baseline. It
includes:
Determining the current status of the project
schedule.
Influencing the factors that create schedule changes
Determining that the project schedule has changed.
Managing the actual changes as they occur
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Control Schedule
Tools & Techniques
• Work Performance
Information
• Schedule Forecasts
• Change Requests
• Project
Documents(Updates)
• Project Management
Plan (Updates)
• Project Management Plan• Project Schedule
• Project Documents• Project Calendar
• Schedule Data
• Work Performance Data
• Organisational Process
Assets
Inputs Outputs
• Critical Path Method
• Data Analysis
• PMIS
• Schedule Compression
• Leads and lags
• Scheduling tool
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Cost Process Table
Process Name Process Group Main Outputs
Plan Cost
Management Planning Cost Management Plan
Estimate Cost Planning
Activity Cost Estimates
Cost Management Plan
(Updates)
Determine Budget Planning Cost Baseline
Control Costs Monitoring and Controlling
Performance
Measurement
Forecasted Completion
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Cost Management
Project Cost Management includes the processes involved in planning, estimating, budgeting and controlling cost so that the project can be completed within the approved budget.
The cost management plan can include the following: The level of accuracy needed for estimates
Units of measure (in what currency)
Organisational procedure links
Control thresholds
Earned value rules
Reporting format
Process descriptions.
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Plan Cost Management
Tools & Techniques
• Cost Management Plan
• Project Management Plan
• Project Charter
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Expert Judgment
• Data Analysis
• Meetings
This is the process of establishing the policies, procedures and documentation for planning, managing, expending and controlling project costs.
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Cost Types
There are four (4) Project Cost types:Direct
Indirect
Fixed
Variable
A combination of these is possible e.g. Fixed Direct
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Comparing Direct and Indirect Costs
Type of Cost Description
Direct Cost Direct Costs are directly attributable to the project. They are
spent only on the project work. An example will be computer
servers used for a software project.
Indirect Cost Indirect Costs are those needed for a project but not restrictd
to it. they could be used for other projects as well. Such as
rent or electricity bills for the building where work for the
project is performed. There will likely be other groups
benefiting from the services too.
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Comparing Fixed and Variable Costs
Type of Cost Description
Fixed Cost Costs that are consistent on the project regardless of how
many are used. Creating a template for a printing job. You
would pay the same amount for the template irrespective of
the number of copies that will be printed
Variable
Cost
Costs that fluctuate with quantity produced. The more you
produce, the more the cost incurred. Cot of printing each copy
of a book is a good example. The more you print, the greater
your cost.
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Lifecycle Costing
Life Cycle Costing is the process of examining all the costs associated with a project and its product once it goes into production. Here you not only consider the project cost, but also the total ownership (operations support) costs of the item created by the project.
Without this focus, a project could potentially create an environment that would cause the organisation to incur additional costs associated with the product after it goes to production.
There may be increase in project cost but savings will be made in the long run.
Example:
A vendor wants to charge your company $50, 000 to create a prototype and then charge $2,000 per item after that.
Another Vendor has lower upfront cost but will charge $4,000 per item.
You can easily calculate that by selecting the 1st vendor with the higher initial cost, you would actually see a cost savings after the production of only 25 items.
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Earned Value Rules
Fixed formula progress reporting – is a technique that creates a consistent status report for project activities. Instead of having a gut feel of percent completion from each person on a project, this type of reporting is essentially binary. The project planning process determines the split of
percentages e.g. 25%/75%, 30%/70%)
Typically it is used on shorter duration activities, those not exceeding two (2) reporting periods.
Weighted Milestone approach is utilised for activities that are longer than two (2) reporting periods. The work is divided into multiple milestones with a measurable
output for each section of work.
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Estimate Cost
Cost Estimating is important because good estimates can determine a project’s success or failure.
In cost estimating: A high level cost estimate of the project is done.
At this point the schedule should have been significantly completed
The resources to perform activities should be known and their rates
Materials and equipment to be deployed should be known also
Cost Estimating Methods include: Analogous Estimates (comparison to a previous project)
Parametric Estimates (based on parameters)
Bottom Up (based on a breakdown)
Computerised Tools.
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Estimate Cost
Tools & Techniques
• Cost Estimates
• Basis of Estimates
• Project Document
(Updates)
• Project Management Plan• Cost Management Plan
• Scope Baseline
• Project Documents• Risk Register
• Project Schedule
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs• Analogous Estimating
• Expert Judgment
• Three Point Estimate
• Bottom Up Estimating
• Parametric Estimating
• Project Management
Estimating Software
• Vendor Bid Analysis
• Reserve Analysis
• Cost of Quality
• Decision Making• Voting
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Cost Range Tolerance
Cost range tolerance will vary from one organisation to the other. A key principle however, is that the less that is known, the wider the tolerance of the cost range as compared to when more information is available (Cost Funnel).
Rough Order of Magnitude
To align with the new
PMBOK Guide, initiating
a rough order of magnitude
could be -50% to +100%
and as the project work gains
momentum into executing,
the tolerance could narrow
to -10% to +15%
Estimate
Name
Process
Group
Range
Rough
Order of
Magnitude
(ROM)
Initiating -50% to
+100%
Definitive Executing -10% to
+15%
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Cost Funnel
Rough Order of Magnitude
Estimate -50% to +100%
Definitive or
Control
Estimate
-10% to
+15%
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Determine Budget
This involves aggregating the estimated costs of individual schedule activities or work packages to establish a total cost baseline for measuring project performance
In addition:
You have a detail of what the project will cost as well as its individual pieces.
It should include a time based approach to help determine project cost needs as time passes
It establishes the basis for measurement, monitoring and controlling of the project costs.
Control Account
A list of accounts used by the Project company to establish and track budgets associated with work packages, projects and other efforts that require defining a Cost Baseline and tracking actual costs against it.
Cost Budgeting process uses control accounts to show where funds are allocated for work that has been estimated
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Determine Budget
Tools & Techniques
• Cost Baseline
• Project Funding
Requirements
• Project Document
(Updates)
• Project Management Plan• Cost Management Plan
• Scope Baseline
• Resource Management
Plan
• Project Documents• Activity Cost Estimates
• Basis of Estimates
• Project Schedule
• Resource Calendars
• Risk Register
• Business Documents
• Agreements
• EEF
• OPA
Inputs Outputs
• Cost Aggregation
• Data Analysis• Reserve Analysis
• Expert Judgment
• Funding Limit
Reconciliation
• Historical
Information Review
• Financing
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Control Cost
Tools & Techniques
• Work Performance
Information
• Cost Forecasts
• Change Requests
• Project Document
Updates
• Project Management
Plan (Updates)
• Project Management Plan
• Project Documents
• Project Funding
Requirements
• Work Performance Data
• Organisational Process
Assets
Inputs Outputs
• Earned Value
Management
• Data Analysis• Reserve Analysis
• Earned Value Analysis
• Trend Analysis
• Variance Analysis
• To Complete
Performance Index
• Project
Management
Software (PMIS)
Control Cost includes monitoring the status of the project budget and managing changes to the cost baseline:
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Earned Value Analysis
How much work is
done (EV) compared
to what was paid for it
(AC)
How much work is
done (EV) compared
to how much work
should be done (PV)
AC
$1200
EV
$1000
PV
$1100
Cost
CPI = EV/AC = 0.83
CV = EV – AC = (-$200)
Bad, as the project has done
$1000 of work (EV) but
should have done $1100 (PV)
of work
Schedule
SPI = EV/PV = 0.91
SV = EV – PV = (-$100)
Bad, as the project has
done $1000 of work (EV)
but spent $1200 (AC)
Earned Value Management is a technique that integrates scope, time and cost into quantifiable reporting method for project status reporting of actual performance compared to the baseline estimate.
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S Curve
An S Curve is used to graphically display data related to EVM
The S curve shown details the interaction between the three main variables associated with EVMand how they interact over the life of the project.
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Quality Management
This area includes the processes and activities of the performing organisation that determines quality policies, objectives and responsibilities to ensure the project meets its objectives.
PMI defines Quality as the degree to which a set of inherent characteristics fulfill requirements.
Stated and implied needs are used to generate requirements
Generating requirements is usually accomplished via Stakeholder management by using stakeholder wants, needs and expectations to generate those requirements during the processes associated with scoping out of the project.
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Quality Concepts
The goal of the quality processes is to allign with the ISO standard.
They should generally align with:
Concepts created by Deming, Juran and Crosby
Total Quality Management (TQM)
Six Sigma
Failure Mode and Effect Analysis (FMEA)
Voice of the Customer (VOC)
Continuous Improvement
Cost Of Quality (COQ)
Project Management and Quality Management These complement each other having these common focus:
Customer satisfaction
Management Responsibility
Continuous Improvement
Prevention over Inspection
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Quality Terms
The International Standards Organisation ISO
ISO has different standards the 9000 series is for quality.
In a nutshell
Document what you do
Do what you document
Document any variance (from the normal processes)
Continuous improvement
ISO 9000:This defines the key terms and acts as a road map for the other standards
within the series.
ISO 9001:This defines the model for a quality system when a contractor demonstrates the
capability to design, produce, and install products or services.
ISO 9002: This is a quality system model for quality assurance in production and installation.
ISO 9003: This is a quality system model for quality assurance in final inspection and testing.
ISO 9004:
This provides quality management guidelines for any organization wishing to develop
and implement a quality system. Guidelines are also available to determine the extent
to which each quality system model is applicable.
The information included in the ISO 9000 series includes:
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Quality Concepts
Constancy of purpose
Adopt a new philosophy
Eliminate need for inspection
Only consider total cost, not price
Improve constantly
Initiate OJT (on the job training)
Initiate leadership
Drive out fear
Break down barriers
Eliminate slogans, targets, and the
like
Eliminate management by
standards and quotas
Remove barriers to pride of
workmanship
Institute education and self-
improvement
Get everyone involved
Deming developed 14 principles to total quality management
(TQM) and also advocated the PLAN-DO-CHECK-ACT cycle as a
basis for quality improvement. The principles include:
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Quality Concepts
Zero Defect
A concept by Philip Crosby. Its basic foundation is that you do something right initially and you should not have to repeat it.
Fitness for Use
The concept developed by Joseph Juran implies that; needs of customers and stakeholders are defined and then attempted to satisfy.
Continuous Improvement (Kaizen)
This takes a proactive stance to development. One that makes improvement throughout the process.
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Quality Process Table
Process Name Process Group Main Outputs
Plan Quality Management PlanningQuality Management Plan
Quality Metrics
Manage Quality Executing Change Requests
Control Quality Monitoring and ControllingQuality Control Measurements
Validated Deliverables
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Project Quality Management
From a project manager's perspective, there are six quality
management concepts that should exist to support each
and every project. They include:
Quality policy
Quality objectives
Quality assurance
Quality control
Quality audit
Quality program plan
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Project Quality Management
Ideally, these six concepts should be embedded within the corporate culture.
Quality policy will:
Be a statement of principles stating what, not how
• The quality policy is a document that is typically created by quality experts and fully supported by top management. The policy should state the quality objectives, the level of quality acceptable to the organization, and the responsibility of the organization's members for executing the policy and ensuring quality.
Quality Objectives
Quality objectives are a part of an organization's quality policy and consist of specific objectives and the time frame for completing them. The quality objectives must be selected carefully. Selecting objectives that are not naturally possible can cause frustration and disillusionment
Quality assurance
The Project Management Institute Guide to the Body of Knowledge (PMBOK)® refers to quality assurance as the management section of quality management. This is the area where the project manager can have the greatest impact on the quality of his project. and ensuring quality.
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Project Quality Management
Quality control
The PMBOK® refers to quality control as the technical aspect of quality management. Project team members who have specific technical expertise on the various aspects of the project play an active role in quality control. They set up the technical processes and procedures that ensure that each step of the project provides a quality output from design and development through implementation and maintenance.
Quality audit
A quality audit is an independent evaluation performed by qualified personnel that ensures that the project is conforming to the project's quality requirements and is following the established quality procedures and policies.
Quality program plan
The quality plan is created by the project manager and project team members by breaking down the project objectives into a work breakdown structure. Using a treelike diagramming technique, the project activities are broken down into lower-level activities until specific quality actions can be identified. The project manager then ensures that these actions are documented and implemented in the sequence that will meet the customer's requirements and expectations. This enables the project manager to assure the customer that he has a road map to delivering a quality product or service and therefore will satisfy the customer's needs.
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Plan Quality Management
Identifying which quality standards are
relevant to the project and determining
how to satisfy them.
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Plan Quality Management
Tools & Techniques
• Quality Management
Plan
• Quality Metrics
• Process Improvement
Plan
• Project Management
Plan (Updates)
• Project Document
(Updates)
• Project Charter
• Project Management Plan
• Project Documents• Requirements
Documentation
• Stakeholder Register
• Risk Register
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs• Expert Judgment
• Data Gathering• Benchmarking
• Brainstorming
• Interviews
• Data Analysis• Cost Benefit Analysis
• Cost of Quality (COQ)
• Decision Making
• Data Representation
• Test and Inspection
Planning
• Meetings
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Quality Terms: Gold Plating
This is the practice of providing more
than what the customer requested.
Unacceptable by PMI
Professionally irresponsible
Provide only what the customer asks for as
stated in the scope statement.
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Cost of Quality
This is the cost of conforming or not conforming to a proactive and continuous improvement approach to quality management
Quality is paid for one way or the other.
Costs of Prevention Costs of Defects
Additional planning
Education and training of project
team and stakeholders
Inspection and testing of the internal
and external deliverables of the project
Improved designs for quality
purposes
Quality staff
Quality audits
Quality plan and execution
Scrap
Rework
Repair
Replacement of defective parts and
inventory
Repairs after the delivery of the
product
Loss of future business with the
stakeholder
Legal issues for nonconformance
Liability for defect
Risk to life and property
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Quality Terms: Just in Time (JIT)
COMPARATIVE ANALYSIS OF PURCHASING PRACTICE: TRADITIONAL U.S. AND JAPANESE JIT
Purchasing Activity JIT Purchasing Traditional Purchasing
Purchase lot size Purchase in small lots with frequent deliveries Purchase in large batch size with less frequent deliveries
Selecting supplier Single source of supply for a given part in nearby
geographical area with a long-term contract
Rely on multiple sources of supply for a given part and
short-term contracts
Evaluating supplier Emphasis is placed on product quality, delivery
performance, and price, but no percentage of reject from
supplier is acceptable
Emphasis is placed on product quality, delivery
performance, and price but about two percent reject from
supplier is acceptable
Receiving inspection Counting and receiving inspection of incoming parts is
reduced and eventually eliminated
Buyer is responsible for receiving, counting, and inspecting
all incoming parts
Negotiating and bidding
process
Primary objective is to achieve product quality through a
long-term contract and fair price
Primary objective is to get the lowest possible price
Determining mode of
transportation
Concern for both inbound and outbound freight, and on-time
delivery. Delivery schedule left to the buyer
Concern for outbound freight and lower outbound costs.
Delivery schedule left to the supplier
Product specification "Loose" specifications. The buyer relies more on
performance specifications than on product design and the
supplier is encouraged to be more innovative
"Rigid" specifications. The buyer relies more on design
specifications than on product performance and suppliers
have less freedom in design specifications
Paperwork Less formal paperwork. Delivery time and quantity level can
be changed by telephone calls
Requires great deal of time and formal paperwork.
Changes in delivery date and quantity require purchase
orders
Packaging Small standard containers used to hold exact quantity and
to specify the precise specifications
Regular packaging for every part type and part number with
no clear specifications on product content
Source: Sang M. Lee and A. Ansari, "Comparative Analysis of Japanese Just-in-Time Purchasing and Traditional Purchasing Systems," International
Journal of Operations and Product Management, 5, no. 4 (1985), pp. 5–14.
Zero inventory
A JIT System forces attention on quality
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Quality Terms: Six Sigma
ATTRIBUTES OF THE NORMAL (STANDARD) DISTRIBUTION
Specification Range (in
± Sigmas)
Percent within Range Defective Parts per
Million
1 68.27 690,000
2 95.45 308,500
3 99.73 66,800
4 99.9937 6,210
5 99.999943 230
6 99.9999998 3.4
Sigma also known as standard deviation is a measure of variation
from the mean. Note the formula P-O/6 earlier mentioned.
The quality concept of Six Sigma however represents the quality
level an organisation has decided to aim at.
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Quality Roles and Responsibilities
Roles Level of Responsibility
Team member or workerFor the quality of his own
work
Project ManagerQuality standards on the
project
Senior ExecutiveQuality standards of the
company
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Quality Function Table
Quality Functions Quality Planning Quality Assurance Quality Control
Flowcharts √ √ √
Fishbone/Ishikawa/
Cause and Effect
Diagram√ √ √
Benchmarking √ √
Design of
Experiments√ √
Inspection √ √
Checklists √ √ √
Control Charts √ √
Pareto Diagram √ √
Statistical
Sampling√ √
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Flowcharting
Flowcharts can be helpful
in understanding the cause
and effect relationships
between the process of
performing work and the
results that are inspected
through measurement or
attribute inspection. A flow
chart is simply an
organized way to look at
the steps that have to be
carried out to perform
some goal. There are many
techniques and styles of
flow charting.
.
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Cause and Effect Diagram
This is a way of diagramming
the flow of work that is useful
in determining the cause and
effect of problems that are
encountered.
Like the work breakdown
structure, the cause and effect
diagram allows for an orderly
consideration of each of the
possible causes of a problem
and then allows for the
consideration of each effect
and the solution that will
reduce the problem.
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Benchmarking & DOE
Benchmarking is the process
of comparing the
performance of a current
process to that of another
process that is similar. If a
machine can manufacture
two hundred parts an hour
and a new machine is
compared to the old machine,
the benchmark for the
existing process on the old
machine is two hundred parts
per hour.
Design of Experiments
utilises experimentation to
statistically determine what
variables will improve
quality. DOE allows you to
systematically change all of
the important factors in a
process and see which
combination has a lower
impact on the project.
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Checklists & Statistical Sampling
Checklists are a sample tool
that is used to keep from
overlooking items of
importance. A checklist is
really just an instruction
sheet for an inspector to use.
The items in the checklist
should be significant items. If
a checklist is seen as a
superfluous document, it will
not be used.
Statistical Sampling entails
determining what a
statistically valid sample is
within an entire population of
outcomes in order to check
if quality standards have
been met.
There may be a need in
some instance to check
entire population in some
instance.
The sample and frequency of
measurement is determined
in the Plan Quality process
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Control Chart
Control charts are used to
determine whether the observed
variations in a process are due to
normal process variations or
whether they are due to the
process getting out of control.
Control charts allow the
observations to be interpreted in
such a way as to allow
corrections to the process prior
to the process producing bad
output.
The rule of seven states that if
you have 7 consecutive data
points on either side of the mean,
then the process is out of control.
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Pareto Chart
A Pareto chart is a type of
histogram which is based on the
80/20 principle which states that
80% of problems are due to 20%
of the root causes.
In other words, if there were
one hundred possible things
that could be considered to be
defects in a process, 20
percent, or twenty of the
problems, will account for 80
percent of the cost. By
identifying these twenty items it
is possible to expend the
energy of the organization
where it will do the most good.
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Manage Quality
Manage quality is the process of translating the quality
management plan into executable quality activities that
incorporate the organisations quality objectives into the
project.
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Manage Quality
Tools & Techniques
• Quality Reports
• Test and Evaluation
Documents
• Change Requests
• Project Management
Plan (Updates)
• Project Document
(Updates)
• Project Management
Plan• Quality Management Plan
• Project Documents• Quality Metrics
• Quality Control
Measurement
• Risk report
• Project Documents
Inputs Outputs
• Data Gathering
• Data Analysis
• Decsion Making
• Data Representation
• Audits
• Design for X
• Problem Solving
• Quality Improvement
Methods
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Control Quality
This involves monitoring specific project results to
determine whether they comply with relevant quality
standards and identifying ways to eliminate causes of
unsatisfactory results
The focus is on the work result or product of the project
Items produced will be measured against set standards
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Control Quality
Tools & Techniques
• Quality Control
Measurement
• Verified Deliverables
• Work Performance
Information
• Change Requests
• Project Management Plan
(Updates)
• Project Document
(Updates)
• Project Management Plan• Quality Management Plan
• Project Documents• Quality Metrics
• Work Performance Data
• Approved Change
Request
• Deliverables
• EEF
• OPA
Inputs Outputs
• Data Gathering
• Data Analysis
• Inspection
• Testing/Product
Evaluations
• Data Representation
• Meetings
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Exercise
Do you understand gold plating? Determine if the following
scenarios constitute gold plating or not?
1. You are building a software program for the client. Your programmer
comes to you and says he can add some extra features to the
program with almost no effort which will increase the functionality of
the product, and the client will like it. You also agree with him, and
allow him to add this extra functionality.
2. You are building a 100-foot wall for the client, he comes to the team
and asks them to increase the length of wall by one foot. Team
members think there is a lot of material lying around on the site, and
it will make no difference to them to build just one foot of the wall;
therefore, they go ahead and build the extra length of wall.
3. You are managing a marketing activation project for your company,
shortly after a scope clarification meeting with the Sponsor, new
items were included in the scope statement and the team went ahead
to execute these new items.
Exercise
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Project Resource Management
This includes the processes to identify, acquire and manage
the resources needed for the successful completion of the
project. These processes help ensure that the right resources
will be available to the project manager and team at the right
time and place.
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Project Resource Management
This area has
considerable focus
on the project team.
Early involvement of team members adds
expertise during planning process and
strengthens commitment to the project.
The project team comprises of the people
who have assigned roles and
responsibilities for completing the project.
The Project Sponsor works with the team,
typically assisting with matters such as Project Funding
Clarifying Scope Questions
Influencing others to the benefit of the project.
The Project management team is a subset of
the Project team.
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Project Resource Process Table
Process Group Process Name Main Outputs
Planning
Plan Resource
Management
Human Resource
Plan
Estimate Activity
Resource
Resource
Requirements
Executing
Acquire ResourcesProject Staff
Assignment
Develop TeamTeam Performance
Assessment
Manage Team Change Requests
Monitoring and
ControllingControl Resources Change Requests
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Plan Resource Management
This process...
defines how to estimate, acquire, manage and use
team and physical resources
creates the resource management plan
…
…
…
…
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Plan Resource Management
Tools & Techniques
• Resource Management
Plan
• Team Charter
• Project Document
Updates
• Assumption log
• Risk Register
• Project Charter
• Project Management Plan• Quality Management Plan
• Scope Baseline
• Project Documents • Project schedule
• Requirements
documentation
• Risk register
• Stakeholder register
• EEF
• OPA
Inputs Outputs
• Data Representation• Hierarchical charts
• Responsibility
assignment matrix
• Text oriented formats
• Organisation Theory
• Expert Judgment
• Meetings
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Responsibility Assignment Matrix (RAM) Charts
This tool helps the project team know who is involved in each area and what they are responsible for. A RACI is a type of a RAM
Activity / Resource Tunde Emeka Olu Usman Eddy
Planning R A C C I
Design I R A I C
Development I A R C I
Training I A C R C
Closure I R A C I
Responsible = R Accountable = A Consult = C, Inform = I
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This is known typically as Organisational Breakdown Structure (OBS)
209
Organisational Chart
CEO
VP Marketing
(Sola)
CFO
(Ahmed)
VP Taxation
(James)
VP Sales
(Tunde)
Senior Mkt
Manager
(Mike)
Junior Sales
Manager
(Jane)
Senior
Accountant
(Felix)
Tax Manager
(Ifeoma)
Senior Sales
Manager
(Teju)
Junior Sales
Manager
(Shakur)
Accounting
Associate
(Olori Oko)
Tax
Associate
(Ibafo)
Sales
Associate
(Tinu)
Sales
Assciate
(Baba)
Marketing
Associate
(Taiwo)
Marketing
Associate
(Ade)
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Motivational Theories
Basic needs for
survival, shelter and
food
Physiological
Items that make us feel
comfortable or
protected
Safety
Friends, finding love,
existence and
association
Belonging
How we feel about
ourselves and how
others see us
Esteem
Self Actualisation
(Achievement)
Someone with
everything going right
and feeling that life
cant get much better
Maslow’s Hierarchy of Needs:A tool used to determine what can be used to motivate an employee.The key is to find out where someone is in the triangle and use items from that area to motivate them.
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Motivational Theories
Herzberg’s
1
McClelland’s Achievement
Theory
2
Two main areas for workplace success
Hygiene – factors such as safe work
environment steady pay and job security
Motivating agents – non financial
characteristics of work, e.g. opportunity to
improve, advance education or more
responsibility
This theory revolves:
Achievement – focus on being successful
Power – focus on influencing
Affiliation – focus on belonging
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Motivational Theories
McGregor’s Theory X and Y: The theories can apply to both Management and Labour
Theory X
3
Theory Y
4
Labour wants to be told what to do
Management feels the need to supervise
Labour is not necessarily motivated at work
Labour does not want to work
Labour can work with an end goal in mind
Management can minimise supervision
Labour is motivated to do what is
necessary for work
Labour wants to work and enjoys it
Labour and Management Characteristics
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Leadership and Management Styles with the
Project Management Life Cycle
Project management leadership style ought to
evolve as the Project evolves from phase to phase
Management Approach
Directing Coaching Facilitating Supporting
Closing
stage
Early
stage
Significant
Work
Completion
Momentum
Gaining
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Management Styles
• Autocratic managers have unlimited power and authority
Autocratic
• Charismatic managers have an appealing personality that makes team members enjoy working with them
Charismatic
• The Coach brings out the best in the team, coaching members to their potential or where they need to be with regards to the project
Coach
• The Director drives the direction of the team or team members to accomplish specific activities or goals
Director
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Management Styles
• The Facilitator helps keep things progressing, making them happen.
Facilitator
• The Mediator tries to find a common goal when there is disagreement. This style is ideal when there are varying technical opinion or disagreements among resource managers
Mediator
• The Mentor is similar to the Coach but focuses more on showing someone how to improve and be better, helping them to take on new skills and roles
Mentor
• The Visionary sees what can be, where the company or team needs to go, focusing on the big picture of the company while others focus on the day-to-day events
Visionary
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Power Types
Some
Power
Types
EXPERTPower that is earned
because of expertise or
results
REWARDThe best form of power.
Promise of a reward –
ability to dispense
organisational resources
PENALTYWorst power to use. Threat
of negative consequences
REFERENTThe ability to gain support
because project personnel feel
personally attracted to the
project manager or project
FORMALLegitimate power by reason
of position
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Knowledge of Needs
Moral or Ethical Persistence Persuasion
217
Other Power Types
Attitude Commitment Competition Investment
Planning Precedence Professionalism Risk
1
7
4
10
65
2
9
3
11
8
12
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Estimate Activity Resources
Determine all the resources required for the project. This includes
Personnel Material Equipment Etc
Focus is on what is needed, quantity and when it will be needed
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Estimate Activity Resources
Tools & Techniques
• Resource
Requirements
• Basis of Estimates
• Project Document
(Updates)
• Resource Breakdown
Structure
• Project Management Plan• Resource Management
Plan
• Scope Baseline
• Project Documents • Activity List
• Activity Attributes
• Assumption Log
• Resource Calendars
• Risk Register
• Cost Estimates
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Expert Judgement
• Data Analysis• Alternatives Analysis
• Project Management
Software (PMIS)
• Bottom Up Estimating
• Analogous Estimating
• Parametric Estimating
• Meetings
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• Multi-criteria Decision Analysis
• Cost Knowledge• Ability Attitude• Experience International Factors• Availability Skills• Interest
220
Acquire Resources
The actual resources that will be working on the project are assigned to the project
This is the process of obtaining team members, facilities, equipment, materials, supplies and other resources necessary to complete project work.
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Acquire Resources
Tools & Techniques
• Physical resource
assignment
• Project team Assignment
• Resource Calendars
• Change request
• Project Management
Plan (Updates)
• Project document
(Updates)
• EEF and OPA Updates
• Project Management Plan• Resource Management Plan
• Procurement Management
Plan
• Project Documents
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Pre-assignment
• Virtual Teams
• Interpersonal and
Team skills• Negotiation
• Decision Making• Multi-criteria
Decision Analysis
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Resource Histogram
0
20
40
60
80
• This is a tool you can use to know see quantity of staffing over time.
• It can be set up to show by month, hours or any desired unit of time.
• It shows total people on the project over time or a particular skill set over time.
• The following shows total staffing hours by month
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Terms Definition: Benefit Types
Fringe
Benefits
These are benefits that everyone receives in
the company (on the project). These are
typically not a motivator because the person is
already getting the benefit. Health insurance or
paid vacation are examples
Perks
These are special benefits offered for being on
a certain project or doing certain activity.
These are not available to everyone hence
they can be useful motivational tools. Like
attending a training seminar or class
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Terms Definition:
Halo
Theory
The assumption that someone should make a good
project manager because the person is good in
his/her technical field
• It could also be applied to the reverse situation
• Often becomes reality when someone is
promoted project management from a technical
position without definite project management
training or instruction.
Expectancy
Theory
Employee working a great deal on the project and
assuming that the reward will be relative to the
amount of effort or perceived effort.
• This could lead to disappointment and de
motivation
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Develop Team
Objectives include• Improve skills of team members in order to
increase their ability to complete project activities
• Improve feelings of trust and cohesiveness among team members in order to raise productivity through greater teamwork.
It is aimed at improving the competencies and interaction of team members to enhance project performance
This process focuses on team building and it goes on throughout the project
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Develop Team
Tools & Techniques
• Team Performance
Assessment
• Change Requests
• Project Management Plan
(Updates)
• Project document
(Updates)
• EEF and OPA Updates
• Project Management Plan• Resource Management Plan
• Project Documents• Project Staff Assignment
• Resource Calendar
• OPA
• EEF
Inputs Outputs
• Co location
• Virtual Teams
• Communication
Technology
• Interpersonal and
Team Skills
• Training
• Ground Rules
• Recognition and
Rewards
• Individual and Team
Assessment
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Form, Storm, Norm, Perform (FSNPA)
PMP Certification Exam Boot Camp
The team development process includes
• Form
• Storm
• Norm
• Perform
• Adjourn
Team development involves the convergence of a
group of people into a performing organisation
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Form, Storm, Norm, Perform, Adjourn (FSNPA)
Refers to the creation of the team, when people on the
team are put together per the project organisational
planning needs. There is little openness at this point
Refers to the chaos that could occur as people start to
do the work of the project and get accustomed to
working together
Refers to the point in time when behaviour starts to
normalise and team members begin to trust each other.
The newness of the group of people has worn out.
This is the stage when the people works as a team
instead of as a group of people. Teams that reach this
phase begin to work at an optimal level.
The team completes the work and moves on to other
endeavors
Form
Storm
Norm
Perform
Adjourn
Team
develo
pm
en
t P
roc
ess
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Manage Team
This involves tracking
team member
performance, providing
feedback, resolving
issues and coordinating
changes to enhance
project performance.
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Manage Team
Tools & Techniques
• Change Requests
• Project Management
plan(Updates)
• Project Document
Updates
• Organisational Process
Assets (Updates)
• Enterprise
Environmental Factors
(Updates)
• Project Management Plan• Resource Management Plan
• Project Documents• Project Staff Assignment
• Issue Logs
• Team Performance
Assessment
• Work Performance
Reports
• EEF
• OPA
Inputs Outputs
• Interpersonal and
Team Skills• Conflict Management
• Influencing
• Leadership
• Emotional Intelligemce
• Decision Making
• PMIS
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Sources of Conflict
To minimise conflict, PM can utilise
• Team ground rules
• Group norms
• Project management practices
Traditionally, conflict occurs as planning evolves
It is important to understand the sources of
conflict so as to be able to address them.
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Conflict Resolution Mode
Problem solving is an effort in which attempts are
made to solve the actual problem. This is the best
type of conflict resolution method
Where an attempt is made to get everyone involved
to concede a little to find a common ground and
resolution. Sometimes viewed as undesirable
A direct order is given to resolve the issue. It is the
worst type of conflict resolution
An attempt to focus on the positive and distract the
attention from the negative
Incorporating multiple viewpoints and insights from
differing perspectives, leads to consensus and
commitment.
Here the issue or conflict is ignored, hoping it either
fixes itself or disappears. Typically PMI does not
view this as a Conflict resolution method
Problem Solving
(Confrontational)
Compromise
Forcing
Smoothing/
Accommodating
Collaborating
Withdrawal/Avoidance
Co
nfl
ict
Reso
luti
on
Mo
des
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Control Resources
Objectives include• To ensure that the assigned resources are
available to the project at the right time and in the right place and are released when no longer needed.
It also includes monitoring the planned vs actual utilisation of resources and taking corrective action as necessary
This process ensures that the physical resources assigned and allocated to the project are available as planned.
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Control Resources
Tools & Techniques
• Work Performance
Information
• Change Requests
• Project Management
Plan (Updates)
• Project document
(Updates)
• Resource Breakdown
Structure
• EEF and OPA Updates
• Project Management Plan• Resource Management Plan
• Project Documents• Project schedule
• Physcial Resource Assigment
• Issue log
• Resource Breakdown Structur
• Resource requirements
• Work performance data
• Agreements
• OPA
Inputs Outputs
• Data Analysis
• Problem Solving
• Interpersonal and
Team Skills
• PMIS
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Case Study:
ABC is at the peak of execution on a critical Power Plant project
that is monitored directly by the President’s office.
All the labourers “suddenly” down tools.
The labourers say they will not work until the Expatriate
Supervising Engineer is sent off the project.
On further investigation, you discover that this was instigated by
the Local Engineers who believe they are been cheated by the
salary scale on the project.
The Expatriate Engineer is a key resource on your project
because of his experience and his certification that gives
credence to your project output
.
What will you do and what should you have done
Case
Study
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Risk Management
This includes the processes concerned with
conducting risk management planning,
identification, analyses, responses and monitoring
and control on a project.
Most of these processes are updated throughout
the project.
The objective of risk management is to increase
the probability and impact of positive events and
decrease the probability and impact of adverse
(negative) events on the project.
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Risk Process Table
Process Name Process Group Main Outputs
Plan Risk Management
Planning
Risk Management Plan
Identify Risks Risk Register
Perform Qualitative
Risk Analysis
Risk Register (Updates)
Perform Quantitative
Risk analysis
Plan Risk Responses
Implement Risk
ResponsesExecuting
Monitor Risks Monitoring and
Controlling
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What is a Risk?
Risk is an event with some degree of
uncertainty
PMBOK Guide defines risk as an
uncertain event or condition that, if
it occurs, has a positive or negative
effect on at least one project
objective such as time, cost, scope
or quality.
A risk may have one or more causes
and if it occurs one or more impacts
A positive risk is an opportunity
A negative risk is a threat.
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What is a Risk?
Known
Risks
Risks that have been identified and
analysed. These risks can be planned
for using the processes.
Unknown
Risks
Cannot be managed proactively. A way
to deal with this is to allocate reserves
against such risks
Risks are present in all projects
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Plan Risk Management
The planning approach for risk management contains the
elements that are necessary to properly prepare and set the
ground rules that will allow us to manage the risk of the project.
There are several inputs to the risk planning process.
The overall project plan is a major input since it defines:
the stakeholders,
size,
complexity, and
objectives of the project.
the roles and responsibilities of the project team members, decision
makers, customers, suppliers, and all of the others that may be
involved in the project.
Overall company strategy for managing risk is also an important
input.
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The Risk
Management
Plan includes:
242
Plan Risk Management
Budgeting
Timing
Roles and Responsibilities
Risk Categories
Definitions of Risk Probability and Impact
Revised stakeholder tolerances
Reporting Formats
Tracking
Methodology
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Plan Risk Management
Tools & Techniques
• Risk Management
Plan
• Project Charter
• Project Management Plan• All Components
• Project Documents• Stakeholder Register
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Meetings
• Expert Judgment
• Data Analysis
• Stakeholder Analysis
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Risk Terms – Risk Breakdown Structure (RBS)
The RBS is a decomposition of the risk categorisation and the risks within those categories that could occur on a project.
Project
Technical External Organisational Project Management
Subcontractors
Regulatory
Markets
Customer
Requirements
Technology
Complexity and Interfaces
Quality
Project Dependencies
Resources
Funding
Prioritisation
Estimating
Planning
Controlling
Communication
Weather
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Risk Terms: Risk Categorisation
Risk categorisation is used in breaking down risks on a project.
Typical risk categories include: Project, Company, Technology,
Legal and more.
Risks Examples
Technical, Quality
or Performing
Risks
Reliance on unproven or complex technology,
unrealistic performance goals, changes to the
technology used or to industry standards during the
project.
Project
Management Risks
Poor allocation of time and resources, inadequate
quality of the project plan, poor use of project
management disciplines.
Organisational
Risks
Cost, time and scope objectives that are internally
inconsistent, lack or prioritisation of projects,
inadequacy or interruption of funding.
External RisksShift in legal or regulatory environment, labour issues,
change in owner priorities, country risk and weather.
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Risk Terms: Probability and Impact Matrix
The table below shows a sample definition of risk impact scales
for 4 project objectives
Project
Objectives
Numerical scales shown
Very low
0.05
Low
0.10
Moderate
0.20
High
0.40
Very High
0.80
Cost Insignificant
cost increase
< 10% Cost
Increase
10% - 20%
Cost Increase
20% - 40% Cost
Increase
>40% Cost
Increase
Time Insignificant
time increase
< 5% Time
Increase
5% - 10%
Time Increase
10% - 20%
Time Increase
>20% Time
Increase
Scope
Scope
decrease
barely
noticeable
Minor areas of
scope affected
Major areas of
scope affected
Scope
reduction
unacceptable to
sponsor
Project item is
effectively
useless
Quality
Quality
degradation
barely
noticeable
Only very
demanding
applications are
affected
Quality
reduction
requires
sponsor
approval
Quality
reduction
unacceptable to
sponsor
Project end item
is effectively
useless
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Risk Terms:
Uncertainty is a component of risk that addresses the
amount of information known (or unknown) about the
outcome
Type Description
Pure Risk
This is risk associated with only negative
consequence for which insurance can be purchased,
thereby transferring the risk for financial benefit for
the party accepting the risk
Business
Risk
This is risk of either negative or positive
consequence. This is typically uninsurable.
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Risk Terms:
Risk and Contracting:
• When an organisation
contracts out a job there is a
misconception that the
organisation has fully
transferred the risk to the
contractor
• This is not the case
• The organisation has
minimised the risk, but some
risk remains and the
organisation has also taken
on new risks.
• The new risk my be failure of
the contractor to deliver.
Risk Tolerance and Perspective:
• This is the propensity of
someone or an organisation to
take on risks.
• The risk tolerance of an
organisation or person can
influence the project
environment.
• There are three types of risk
tolerance behaviours
Risk Averse
Risk Seeker
Risk Neutral
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Risk Tolerance Types
Type Description
Risk AverseThis is a risk avoidance mentality, selecting the low
risk item or the sure thing is typical in this case
Risk Seeker
This is a mentality of looking for risk or not being
afraid of risk. Organisations going for an all or nothing
approach to an initiative.
Risk Neutral
This is a middle ground mentality. It can shift toward
either seeker or averse depending upon the situation
but usually falls in the middle.
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Identify Risks
In Risk Identification, the risks that can affect the project are
identified, documented and the characteristics of the list
noted.
Participants in Risk identification activities can include:
Project manager
Project team members
Risk management team (when applicable)
Subject matter experts (within or outside the project team)
Customers
End users
Other project managers
Stakeholders
Risk management experts.
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Identify Risks
• Risk Register
• Risk reports
• Project
Documents
Updates
• Project Documents• Cost Estimates
• Duration Estimates
• Stakeholder Register
• Project Management Plan• Cost Management Plan
• Schedule Management Plan
• Quality Management Plan
• Resource Management Plan
• Risk Management Plan
• Scope Baseline
• Agreements
• Procurement Documents
• EEF
• OPA
Inputs Outputs
• Expert Judgment
• Data Gathering• Brainstorming
• Checklists
• Interviews
• Data Analysis• Assumptions and
Constraint Analysis
• SWOT Analysis
• Document Analysis
• Interpersonal and
team skills• Facilitation
• Prompt Lists
• Meetings
Tools & Techniques
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Risk Terms
Brainstorming
Delphi Technique
Interviewing
Root Cause identification
SWOT Analysis
These are used in
identifying risks,
they include:
Information Gathering
Techniques
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Risk Terms
RISK REVIEW:
• This is the process of
reviewing the documented
risks on the project for any
new risks.
• The review helps ensure
that the documented risks
are still risks, and that their
ranking, characteristics,
probabilities and impacts
have not changed.
Diagramming Techniques help in
decomposing or characterising
risks. This may include:
• Cause and effect diagrams
• Process flow charts – these
show how various elements of a
system interrelate.
• Influence diagrams – graphical
representation showing casual
influences, time order
relationships among variables
and outcomes
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Comparison of Risk Identification Techniques
Identification
TechniqueAdvantages Disadvantages
Brainstorming
Encourages interaction in the
group
Fast
Not expensive
Can be dominated by an
individual
Can focus on specific areas
Requires a strong facilitator
Delphi technique
Cannot be dominated by an
individual
Can be done remotely by email
Avoids problem of early evaluation
Every person must participate
Time consuming
Labour intensive for
facilitators
Expert
interviews
Takes advantage of past
experience
Expert may be biased
Time intensive
Checklists Focused and organised
Easy to use
Prejudgement
May not include specific items
for the project
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Comparison of Risk Identification Techniques
Identification
TechniqueAdvantages Disadvantages
Analogy
Technique
Uses past experience to avoid future
experience
Similar project have many similarities
Time intensive
Easy to obtain irrelevant
data
Analogy may be incorrect
Diagramming
Techniques
Clear representation of the process
involved
Easy to generate
Many computer tools available for them
Sometimes misleading
Can be time consuming
Nominal Group
Technique
Reduces the effect of a dominant
individual
Allows for interaction of participants
Results in a ranked list of risk ideas
Time consuming
Labour intensive for
facilitators
Crawford Slip
Fast
Easy to implement
Very person must participate
Large number of ideas generated
Able to deal with a large group
Less interaction between
participants
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Risk Terms
RISK REGISTER:
The Risk Register is a part of
the Project Management Plan.
It contains:
Risks
Triggers
Results from Risk analysis
Responses
Risk Owners
It evolves as the project
evolves
RISK TRIGGERS:
These are the characteristics
that indicate that a risk event
is likely in the near future.
Typically, triggers are
identified when risks are
identified.
When a trigger is noted on
the project, then a risk event
could occur soon.
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Perform Qualitative Risk Analysis
Perform Qualitative Risk Analysis includes methods for prioritising the identified risks for further action.
Risks are analysed based on
the probability of
occurrence and the impact
of the identified risks if they
do occur.
It is usually a rapid and cost
effective means of
establishing priorities for
risk response planning and
lays the foundation for
quantitative risk analysis, if
required.
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Perform Qualitative Risk Analysis
Tools & Techniques
Project Documents
Updates
• Project Management Plan• Risk Management Plan
• Project Documents• Risk Register
• Assumption log
• Enterprise Environmental
Factors
• Organisational Process
Assets
Inputs Outputs
• Expert Judgment
• Data Gathering• Interviews
• Data Analysis• Risk Probability and Impact
Assessment
• Risk Data Quality
Assessment
• Assessment of other risk
parameters
• Data representation• Probability and Impact
Matrix
• Hierarchical charts
• Risk Categorisation
• Interpersonal and
team skills
• Meetings
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Risk Probability and Impact Assessment
Risk probability assessment investigates the
likelihood that each specific risk will occur.
Risk impact assessment investigates the
potential effect on a project objective such as
time, scope, cost or quality. Including
positive effects for opportunities and
negative effects for threats.
Probability and Impact Matrix is utilised in
conducting the assessment.
This is created by the organisation and the risk
rating determined by the organisation.
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Risk Terms
Probability is the likelihood that an event will
occur. The characteristics of probability include:
• Its in percentages (0% to 100%) or in real
numbers (0.1 to 1.0)
• The sum of all probabilities must equal 1 or 100%
• It can be measured in low, medium or high, if
numerical detail does not fit the situation
• Impact is the consequence of an event occurrence.
• Impact can be positive or negative
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Risk Probability and Impact Matrix
Probability Threats Opportunities
0.9 0.05 0.09 0.18 0.36 0.72 0.72 0.36 0.18 0.09 0.05
0.7 0.04 0.07 0.14 0.28 0.56 0.56 0.28 0.14 0.07 0.04
0.5 0.03 0.05 0.10 0.20 0.40 0.40 0.20 0.10 0.05 0.03
0.3 0.02 0.03 0.06 0.12 0.24 0.24 0.12 0.06 0.03 0.02
0.1 0.01 0.01 0.02 0.04 0.08 0.08 0.04 0.02 0.01 0.01
0.05 0.10 0.20 0.40 0.80 0.80 0.40 0.20 0.10 0.05
High Risk - Moderate Risk - Low Risk
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Perform Quantitative Risk Analysis
The characteristics of Perform Quantitative Risk Analysis
include:
Follows from risk identification and qualitative analysis
Breaks down high, medium and low risk ranking to actual
numerical values and probabilities of occurrence.
Risks that are higher in probability and impact are more
likely to be evaluated in this process.
Techniques employed include
• Decision tree analysis
• Monte Carlo simulation
Reviewing Quantitative Risk Analysis after the risk response
planning and risk monitoring and control processes helps to see
the effect of this processes on minimising the impact of this risk to
an acceptable level.
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Perform Quantitative Risk Analysis
Tools & Techniques
Project Document
Updates
• Project Management Plan• Schedule Baseline
• Risk Baseline
• Cost Baseline
• Scope Baseline
• Project Documents• Risk Register
• Assumption Log
• Basis of Estimate
• Cost estimate
• Cost forecast
• Duration estimates
• Resource requirements
• Schedule forecasts
• OPA
• EEF
Inputs Outputs• Expert Judgment
• Data Gathering• Interviews
• Data Analysis• Simulation
• Sensitivity analysis
• Decision tree anlysis
• Influence diagrams
• Representations of
Uncertainty
• Interpersonal and
team skills• Facilitation
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Risk Terms: Decision Tree Analysis
This is based on analysing the probability and impact of all potential decisions to determine the expected monetary value (EMV)
Its done by multiplying the probabilities and the impact straight across, then adding the sum of the multiplications for the project or opportunity.
A rule to consider: the sum of all probabilities must equal 1 (100%)
Decision
Project A
Project B
Probability = 0.3
Probability = 0.7
Probability = 0.5
Probability = 0.5
Impact P*I
$-10,000
$17,500
$22,500
$-5,000
$-3,000
$12,250
$11,250
$-2,250
EMV
$9,250
$9,000
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265
Plan Risk Responses
This is the process of developing options, and determining
actions to enhance opportunities and reduce threats to
project objectives
It follows Perform Qualitative and Perform Quantitative
Analysis
It includes the identification and assignment of Risk
Owner(s)
Risk Responses must be: Appropriate to the significance of the risk
Cost effective in meeting the challenge
Timely
Realistic within the project context.
Agreed upon by all parties involved
And owned by a responsible person(s)
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266
Plan Risk Responses
Tools & Techniques
• Change Requests
• Project Management
Plan (Updates)
• Project Document
Updates
• Project Management Plan• Resource Management Plan
• Risk Management Plan
• Cost Baseline
• Project Documents• Risk Register
• Risk report
• Stakeholder Register
• Lessons Learned register
• EEF
• OPA
Inputs Outputs• Expert Judgment
• Data Gathering• Interviews
• Data Analysis• Alternative analysis
• Cost benefit analysis
• Interpersonal and
team skills• Facilitation
• Strategies Threats
• Strategies
Opportunities
• Contingent
Response Strategy
• Decision Making
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267
Risk Terms
Name Created for Description Example
Contingency
Reserves
Known
Unknowns
For risk events
that are known
can happen on a
project
An item costing
more than
planned, any
activity taking
longer than
planned, etc.
Management
Reserves
Unknown
Unknowns
For risk events
that cannot be
forecasted
A natural
disaster or terror
attacks,
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268
Risk Terms
Residual Risks:The measure of risk left after a risk response plan has been implemented. E.g. in medical instances, the risk left after an attempt is made to cure someone.
Secondary Risk:Is the risk that may result from implementing a response plan e.g. side effects from a drug use
Fallback Plan is a contingency action that would come into play if a risk response plan fails.
Workaround is action taken to address risks that were not identified during planning.
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269
Risk Response Strategies
The risk response strategies; Share, Exploit, Enhance, Avoid, Transfer and Mitigate with the acronym SEE ATM are the strategies recommended by PMI.
Risk Response Strategies for Positive Risks or Opportunities
Risk Response
ToolDescription Example
Share
This involves sharing the
responsibility and benefit of the risk
with a third party. To maximise the
opportunity
A tech company forming
partnership with a
marketing coy to launch a
sales campaign for a very
successful new product
Exploit
This seeks to eliminate the
uncertainty attached to an
opportunity by making it definitely
happen
Assigning the best
resources to make sure of
timely completion or
better quality
Enhance
This involves working to improve
the size or capacity of the risk event
by determining the key components
and maximising them
A company hiring more
salesmen when sales were
exceeding projections to
take advantage of this.
Risk Response Strategies for Positive Risks or Opportunities
Risk Response
ToolDescription Example
Share
This involves sharing the
responsibility and benefit of the risk
with a third party. To maximise the
opportunity
A tech company forming
partnership with a
marketing coy to launch a
sales campaign for a very
successful new product
Exploit
This seeks to eliminate the
uncertainty attached to an
opportunity by making it definitely
happen
Assigning the best
resources to make sure of
timely completion or
better quality
Enhance
This involves working to improve
the size or capacity of the risk event
by determining the key components
and maximising them
A company hiring more
salesmen when sales were
exceeding projections to
take advantage of this.
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270
Risk Response Strategies
Risk Response Strategies for Negative Risks or Threats
Risk Response Tool Description Example
Avoid This entails modifying the
project plan so that the risk
does not have to be dealt with.
Extending schedule or
reducing scope.
Transfer Shifting negative impact of the
threat along with ownership of
the response to a third party.
Insurance
Outsourcing
Mitigate
Reduction in the probability
and/or impact of an adverse risk
event to an acceptable
threshold.
Building redundancy into
a system.
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Risk Response Strategies
Risk Response Strategies for both Negative & Positive Risks
Risk Response
ToolDescription Example
Acceptance
This involves choosing not to do
anything about the risk
Passive – no action, project team
deals with risks as they occur.
Active – the most common is to
establish a contingency reserve.
If a union goes on
strike, project will
stop until they
resume.
Contingent
Response
Strategy
Ideally created to be used only if
certain conditions exist. If conditions
change on the project
Because important
milestones were
missed on the
project the team
developed
contingency
response plan
EscalateRefer to Superior when risk identified
is out of the scope of the project but it
will still impact the entity.
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272
Implement Risk Responses
Tools & Techniques
• Change Requests
• Project Document
Updates
• Project Management Plan• Risk Management Plan
• Project Documents• Risk Register
• Risk report
• Lessons Learned register
• OPA
Inputs Outputs
• Expert Judgment
• Interpersonal and
team skills• Influencing
• PMIS
This is the process of implementing agreed upon
risk response plans.
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273
Monitor Risks
The Project Manager and Team focus on
identifying, analysing and planning for newly
arising risks, keeping track of the identified risks
and those on the watch list, reanalysing existing
risks, monitoring trigger conditions for contingency
plans, monitoring residual risks and reviewing the
execution of risk responses while evaluating their
effectiveness.
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274
Monitor Risks
Tools & Techniques
• Work Performance
Information
• Change Requests
• Project Management
Plan Updates
• Project Document
Updates
• Organisational
Process Assets
Updates
• Project Management Plan• Risk management plan
• Project Documents• Risk Register
• Risk report
• Issue logs
• Lessons learned register
• Work Performance
Reports
• Work Performance Data
Inputs Outputs
• Risk Audits
• Data Analysis• Technical
Performance
Measurement
• Reserve Analysis
• Meetings
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275
Group Exercise
Create a Risk Register template and populate it with the following
characteristics for the class chosen project.
1. Identified risks
2. Risk analysis – Impact and Probability
3. Risk Ranking
4. Risk ResponseExercise
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277
Communication Management
Project Managers can spend a huge amount of
time communicating with:
• Project Team
• Project Sponsor
• Customer
• Stakeholders
The knowledge area employs the processes
required to ensure timely and appropriate
generation, collection, distribution, storage,
retrieval and ultimate disposition of project
information.
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Communication Process Table
Process Name Process Group Main Outputs
Plan Communications PlanningCommunications
Management Plan
Manage Communications Executing Project Communications
Monitor Communications Monitoring and Controlling
Work Performance
Information
Change Requests
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Plan Communications
Tools & Techniques
• Communications
Management Plan
• Project Management
Plan Updates
• Project Documents
Updates
• Project Charter
• Project Management Plan• Stakeholder Engagement
Plan
• Resource Management Plan
• Project Documents• Stakeholder Register
• Requirements
Documentation
• EEF
• OPA
Inputs Outputs• Expert Judgment
• Communications
Requirements
Analysis
• Communications
Technology
• Communication Model
• Communication
methods
• Interpersonal and
team skills
• Data representation
• Meetings
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It is generally agreed among project managers that
communication skills are the most important skills that a
project manager can have.
280
Communication Skills
Communication skills are essential in managing communication on the project.
It is often said that if a project manager has good
communications skills and no other skills at all, the project
team will get the project completed successfully in spite of the
project manager.
These skills are considered to be more important than
organization skills, team building skills, and leadership skills,
and they are certainly considered more important for project
managers than technical skills.
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Sender – Receiver Model
The key components of the model include:
• Encode : to translate thoughts or ideas into a language that is
understood by others
• Message: the output of encoding
• Medium : the method used to convey the message
• Noise: anything that interferes with the transmission and
understanding of the message (e.g. distance)
• Decode: to translate the message back into meaningful thoughts
and ideas.
A basic model of communication demonstrates how
ideas or information is sent and received between two
parties defined as the sender and receiver.
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Sender – Receiver Model
The key responsibility of the sender is to correctly encode the
message being sent to the receiver so that they can correctly
decode (his own responsibility) the message.
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Sender – Receiver Model (Processes)
The receiver verifies with the sender that the message
was interpreted correctly by asking for clarification or
by providing feedback to the sender.
The receiver observes visual and vocal clues as well as
asking for feedback from the sender.
The sender receives feedback for the receiver possibly
by asking additional questions or using other methods
for clarity.
Nonverbal exchange can be up to 55% of
communication. Items in this category could include
body and facial language. Think of time you have
known something was wrong in a situation but no one
mentioned it. something just felt weird (and it was)
Voice characteristics come into play as the sender
conveys the message
Active Listening
Effective Listening
Feedback
Non-Verbal
Para-lingua
Sen
der
–R
eceiv
er
Mo
del P
rocesses
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Sender – Receiver Model – Barriers to
Communication
Distorted Perceptions – receivers, frame of mind,
mood, old information, e.t.c.
Distrusted Sources – perception of the source
Transmission Errors – Language, Culture, e.t.c.
There can be many barriers to communications.
Messages can be blocked or distorted, and as a
result, their meaning can be changed considerably.
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Communication Methods
Pull Communication • for very large volume of information and/or audiences
o Intranet sites, e-learning, etc
Push Communication • sent to specific recipients who need to know the information
o Letters, memos, reports, emails, faxes voice mails, press
releases
Interactive Communication • between two or more parties, a multidirectional exchange of
information
o Meetings, phone calls, video conferencing, etc
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286
Choice of Media – Communication Types
The exam addresses four main types of communication
media plus potentially a combination of the four ...
Formal
Informal Written
Verbal
Communication
Media
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287
Choice of Media – Communication Types
Type Description
Formal Written
• For legal communication and project documents
• When there is distance or extreme complexity involved
• Using this helps ensure that the exact intention is received
by the other party, where is the verbal area there could be
misinterpretation of the intent.
Formal Verbal
• Used in official situations, formal presentations and other
primarily one-directional communication.
• A meeting does not fit this criteria because communication
goes back and forth in a meeting.
Informal Written• This includes non legal documents, documentation
preceding a contract, general documentation and notes
Informal Verbal• Any informal interaction between people. This includes
meetings.
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288
Choice of Media – Communication Types
Communication
ScenarioFormal Informal Written Verbal
Complex Technical
Issue
Meeting
Statement of Work
(SOW)
Hallway
Communication
Corporate
Presentation
Communicating with
an Offshore
Development Centre
Notes from a
Planning Meeting
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289
Communication Terms
The Communication Management
Plan defines the communication
needs of the stakeholders, the
communication format, frequency
and who delivers them, e.t.c. It can
include:
• Reports
• Meeting Schedule
• Change processes
• Contact information for the
team
The Communication plan helps the
team know the communication
rules and the project expectations
Approximately 90% of a Project Manager’s job is communication
Controlling Communication is the
key to project management
success.
The Project Manager ought to be
kept in the communication loop as
much as possible.
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290
Communication Terms
Communications technology
o The methodologies used to transfer
information among project stakeholders can
vary significantly.
o Communication technology factors that can
affect the project include:• The urgency of the need for information
• The availability of technology
• The expected project staffing
• The length of the project
• The project environment
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Communication Terms - Communication Channels
1 2
3
21
1 2
3 4
2 People, 1 Channel
4 People, 6 Channel
3 People, 3 Channel
• Be prepared to calculate the number
of communication channels on a
project, as well as the number of
channels added if team members
are added. Be sensitive to question where you
are the Project Manager with a team
of so many people, compared to a
team of so many people.
You must count yourself in the initial
of the two situations.
• The more people on a project, the
more the communication complexity
and the more the channels
Channels = N*(N-1)/2where N is the number of people on the project.
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292
Manage Communication
The process involves making information available to
project stakeholders in a timely manner. It includes the
creation, collection, distribution, storage, retrieval and
the ultimate disposition of project information
It includes implementing the Communications
management plan as well as responding to unexpected
requests for information.
Effective information distribution includes a number of
techniques namely;• Sender – Receiver model
• Choice of media
• Writing style
• Presentation technique
• Meeting management techniques
• Facilitation techniques
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293
Manage Communication
Tools & Techniques
• Project Communications
• Project Management
Plan Updates
• Project Document
Updates
• Organisational Process
Assets (Updates)
• Project Management Plan• Communications
Management Plan
• Resource Management Plan
• Stakeholder Engagement
Plan
• Project Docuemments
• Work Performance
Reports
• Organisational Process
Assets
• Enterprise Environmental
Factors
Inputs Outputs• Communications
Technology
• Communication
methods
• Communication Skills
• Information
Management Systems
• Project Reporting
• Interpersonal and
team skills
• Meetings
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294
Reporting
This also involves collection of all baseline data and
distribution of performance information to all stakeholders.
This will generally provide information in:
Scope
Cost
Schedule and
Quality
This reporting gives the ability to see if the project is on track
or not, how far off the project is from the baseline.
It is important that project managers have good presentation
skills. Project managers are frequently called upon to make
formal and informal presentations to other managers, clients,
stakeholders, and the like. Project managers must be able to
convey the information in a way that is comprehensible to
their audience.
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295
Performance Reports
Reporting on a project can take a variety of formats.
In addition, interpretations of the format can vary.
The following definition should help clarify the subtle
differences between the types
• Forecast Reports – provides information on what is expected to
happen on the project. Forecast reports associated with cost can
include EAC, ETC and VAC
• Progress Reports – this reports what has been done recently on the
project from a defined point.
• Status Report – reports on the present overall state
• Variance Reports – shows the difference between actual happenings
and what was planned.
• Earned Value Reports – shows the state of the schedule, budget and
scope of the project at various points in the project.
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296
Monitor Communications
Tools & Techniques
• Work Performance
Information
• Project Management Plan
Updates
• Project Document
Updates
• Change requests
• Project Management Plan• Communications
Management Plan
• Resource Management Plan
• Project Documents• Issue Logs
• Work Performance Data
• EEF
• OPA
Inputs Outputs
• Expert Judgment
• PMIS
• Data representation
• Interpersonal and
team skills
• Meetings
This is the process that ensures the information needs of the
project and it stakeholders are met.
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297
Issue Logs
Otherwise known as an action item log.
Used to document and monitor the resolution of
issues
Issues do not usually rise to the importance of
becoming an activity but are usually addressed to
maintain good, constructive working relationship
among project stakeholders.
An issue is clarified and stated in a way that it can
be resolved. An owner is established and a target
date is established for closure.
Unresolved issues can be a major source of
conflict and project delays
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298
Group Activity
Options include;
1. The Card Game
2. Train Story (Page 139 of 50 Communication Activities)
3. Count the Ss (Page 141 )
4. Communication OrigamiGroup
Activity
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300
Procurement Management
This includes the processes to purchase or
acquire the products, services or results
needed from outside the project team to
perform the work.
An organisation can be viewed from two
perspectives namely:
Buyer
Seller
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Process Name Process Group Main Outputs
Plan Procurement
Management Planning
Procurement Management
Plan
Conduct Procurements Executing Selected Sellers
Control Procurements Monitoring and ControllingProcurement
Documentation
Procurement Process Table
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Plan Procurements
The process involves consideration of Whether
How
What
How much and
When to acquire.
It identifies those project needs which can best be, or
must be, met by acquiring the product from outside the
organisation versus those that can be done by the
project team.
This is the process of documenting project purchasing decisions, specifying the approach and identifying potential sellers.
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303
Plan Procurements
Tools & Techniques
• Procurement
Management Plan
• Procurement Strategy
• Procurement
Statement of Work
• Make or Buy
Decisions
• Bid Documents
• Independent Cost
Estimates
• Source Selection
Criteria
• Change Requests
• Project Document
Updates
• OPA Updates
• Project Charter
• Business Documents
• Project Management Plan
• Project Documents• Requirements Documentation
• Risk Register
• Resource Requirements
• Project Schedule
• Stakeholder Register
• Enterprise Environmental
Factors
• Organisational Process
Assets
InputsOutputs
• Data Analysis• Make or Buy Analysis
• Expert Judgment
• Source Selection
Analysis
• Data Gathering• Market Research
• Meetings
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Typical Steps for Procurement
Prepare the procurement statement of work (SOW) or terms of reference
(TOW)
Prepare a high level cost estimate to determine the budget
Advertise the opportunity
Identify a short list of qualified sellers
Prepare and issue bid documents
Prepare and submit proposals by the sellers
Conduct a technical evaluation of the proposals including quality
Performa a cost evaluation of the proposal
Prepare the final combined quality and cost evaluation to select the
winning proposal
Finalise negotiation and sign contract between the buyer and seller
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Make or Buy Analysis
One of the basic keys of procurement is the make or
buy decision. Some of the basic decision points
include:
Make Decision
Qualities
The Buyer owns intellectual property associated
with the work and considers doing the work
internally in order to maintain control of the
situation
The Buyer has excessive qualified capacity
Buy Decision
Qualities
The Buyer does not possess the skills for the
work
The Buyer does not possess the capacity for the
work
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$100x = $5,000 + $50xwhere x is the maximum number of days to rent before it
makes economic sense to buy
$100x - $50x = $5,000
$50x = $5,000
x = $5,000/$50 = 100 days
Make or Buy Analysis: Example
A crane is needed on a Building development project. The
crane is available to rent at $100 per day (including
maintenance) and it can be purchased for $5,000 with $50
per day for maintenance.
What is the maximum time the Project Manager would
want to rent this tool before considering purchasing it to
arrive at your decision?
© 2021 Oak Interlink Company. All rights reserved.
The following are elements of a contract: Capacity – competency, must not be a minor
Consideration – the item to change possession from seller to buyer
Offer – a proposition to have an exchange
Legal Purpose – it has to be official and authorised
Acceptance – buyer willing to accept the offer from the seller
Contract
A contract is a mutually binding legal agreement
between buyer(s) and seller(s). Other names for a
contract could be: Purchase order
Sub contract
Agreement
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Contract Life Cycle
...
...
...
Requisition
Requirement
Contract Life Cycle
SolicitationAward
Contract
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Buyer Seller
• Client • Contractor
• Prime Contractor • Vendor
• Contractor • Service Provider
• Acquiring Organisation • . Supplier
• Government Agency
• Purchaser
• Customer • Sub Contractor
Buyer and Seller Names
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There are three
broad types of
contracts:
Fixed price or Lump
sum Contracts
Cost Reimbursable
Contracts
Time and Materials
(T&M) Contracts
The type of contract used
and the specific terms and
conditions set the degree of
risk being assumed by both
the buyer and seller
Contract Types
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Contract Risk for
Buyer
Risk for
Seller Description Example
Purchase
Order (PO)
Neutral Neutral It’s the simplest form of a Fixed Price
Contract.
A unilateral agreement by requires
approval by only one party because the
other party has offered the product for
the predefined price.
Typically, a PO is used for commodity
items such as those that can be mass
produced. Some consultants have
mentioned that the workplace would get
a contract type signed off and then get a
PO. PMI views a PO as a type of Fixed
Price Contract.
29” LCD TV sets for
OAKPM offices at
$1,599 each
Fixed
Price
(FP) or
Lump Sum
Minimal Significant Probably the most common contract
type used in business
Usually used when there is a detailed
scope of work
Purchasing the
implementation of a
computer network
from a vendor for
$11,550.00 after
providing a detailed
SOW
Contract Types
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Contract Risk for
Buyer
Risk for
Seller Description Example
Fixed Price
Incentive
Fee (FPIF)
Minimal Significant It’s a fixed price contract but with
incentives to motivate the seller
to produce at a rate greater than
the minimum required.
It is usually used to help
accelerate a buyers need, such
as a market opportunity.
A city buying services
from a construction
company to construct a
road for 1,200,000. for
each week the seller
finishes before a given
date, he receives
$35,000.00
Fixed Price
Economic
Price
Adjustment
Minimal Significant A fixed price contract usually
associated with a multi year
project.
To compensate for economic
changes from year to year,
economic price adjustment is
factored in.
Lagos State buys
services from a
construction company to
build a new bridge at
$600M over 5 years. At
the start of each year, the
amount varies relative to
the national cost of living
or some other negotiated
standard
Contract Types
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Contract Risk for
Buyer
Risk for
Seller Description Example
Time &
Materials
(T&M)
Minimal Minimal A hybrid type of contract containing
aspects of fixed price as well as cost
reimbursable.
It is open ended but also unit price of
items are fixed
Typically used for smaller initiatives
e.g. staff supplementation.
Staff supplementation
of a technical writer at
$215 per hour. Or
having a bathroom
added to the house at
$50 an hour plus the
cost of materials.
Cost plus
Fixed Fee
Medium Minimal Typically used when the buyer knows
generally what is needed but lacks
details.
This covers the costs of the seller and
a predefined fee for the work
A buyer hires a seller
to produce a video
training series, but is
not sure of all that will
be included. He
agrees to pay the cost
of the work plus
$40,000 fee.
Contract Types
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Contract Risk for
Buyer
Risk for
Seller Description Example
Cost plus
Incentive
Fee
Medium Minimal Typically used when the buyer knows
generally what is needed but lacks
details
Seller receives a predetermined fee,
an incentive bonus based upon
achieving some performance
objectives set in the contract.
In some CPIF contracts, if final cost is
less than expected costs, then both
buyer and seller benefit from the cost
savings based on a pre negotiated
sharing formula
To take advantage of
a market opportunity,
the buyer agrees to
pay an incentive fee
for every week the
seller delivers before
the estimated
completion date
Cost plus
percentag
e of costs
(CPPC) or
Cost plus
Fee (CPF)
Significant Minimal Covers cost of creating a product,
service or result for the buyer and the
buyer pays a percentage of the total
costs as a fee. The more the cost the
more the fees.
Paying a 17% fee on
the total cost of a
marketing awareness
project.
Contract Types
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Contract Types Summary
FFP FPI FP+ Award Cost Cost Sharing Cost + FF
Low Risk Customer High Risk
High Risk Supplier Low Risk
Fixed Price Cost Reimbursement
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Scope of Work
The part of the contract that describes what the seller
will do for the buyer.Scope of Work
Scope of Work Description Example
Design Buyer provides exact details of what
is required
Common with Fixed Price contracts
Detailed Engineering Designs.
Cabinet design to hold specific
type and quantity of items
Functionality Buyer details the functionality
needed in the product. It permits
sellers to propose own solution as
long as end-results are achieved.
Common with Cost Plus contracts
Hiring a vendor to provide
solutions to a stated problem
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Procurement Documents
Procurement documents
are used to solicit
proposals from
prospective sellers.
An ideal procurement document
answers the questions of the
potential provider and allows them to
make a well planned bid, which helps
create a win/win relationship with the
seller
Type Typical Purpose Description
Request for Quote
(RFQ)
Usually for small dollar
amounts or products
with little degree of
customisation
A document that requests a price for a
standard item
Request for
Information (RFI)
Used to solicit
information to learn
more about the
prospective seller
A document requesting information on
a service providers qualification for
review
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Procurement Documents
Type Typical Purpose Description
Request for Proposal
(RFP) or Request for
Tender (RFT)
Typically used to solicit proposals
for bigger, higher priced,
customised services or products.
Usually seller describes the
detailed approach to the buyer
including previous experiences
A document requesting
approach, price and
significant detail about
how seller proposes to
do the work
Invitation for Bid (IFB)
or Request for Bid
(RFB)
Used for government sealed
bidding processes with
characteristics similar to those of
an RFP
A document requesting
approach, price and
significant detail about
how seller proposes to
do the work
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Conduct Procurements
This is the process of obtaining seller
responses, selecting a seller and awarding
a contract.
The process obtains responses such as
bids and proposals from prospective sellers
on how requirements can be met. The
prospective sellers, normally at no direct
cost to the buyer or project, expend most of
the actual effort here.
© 2021 Oak Interlink Company. All rights reserved.
Conduct Procurements
Also, bids or proposals are received and
evaluation criteria applied. One or more sellers
who are both qualified and acceptable are then
chosen.
Many factors can be evaluated in selecting
sellers, some of these are:
Price or Cost – the lowest price is not necessarily the
lowest cost.
Technical, Commercial and Management
Multiple sources could be required for some products,
services or results.
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Conduct Procurement
Tools & Techniques
• Selected Sellers
• Agreements
• Change Request
• Project Management
Plan (Updates)
• Project Document
(Updates)
• OPA Updates
• Procurement Management
Plan• Procurement Management
Plan
• Configuration Management
Plan
• Project Documents• Requirements
Documentation
• Risk Register
• Resource Requirements
• Project Schedule
• Stakeholder Register
• Seller Proposals
• Procurement Documents
• OPA
• EEF
Inputs Outputs
• Expert Judgment
• Advertising
• Bidders Conferences
• Data Analysis• Proposal Evaluation
• Interpersonal and
team skill• Negotiation
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A buyer can use this as a screening mechanism in the
procurement process. It allows buyers to consider only sellers
that have met some predefined qualifications. It saves the buyer
time
Qualified Seller’s List
Bidder’s Conference
This is a meeting in which companies considering bidding on a
project ask questions and get clarifications on potential issues
before creating a proposal
Procurement Terms
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Procurement Terms
Sole Source involves using a company that has no other competition for
whatever is to be acquired. This company could be one that owns a
patent or some other type of intellectual property associated with what is
being purchased
Sole Source
Single Source
A buyer can use this as a screening mechanism in the procurement
process. It allows buyers to consider only sellers that have met some
predefined qualifications. It saves the buyer time
Non-competitive form of procurement:
o The two main categories are and
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Control Procurement
This is the process of managing procurement
relationships, monitoring contract performance,
making changes as needed and closing out
contracts.
Both buyer and seller administer the contract for
similar purposes. Each party ensures both it and
the other party meet their contractual obligations
and that their own legal rights are protected.
The Contract is managed by the Contract
Administrator in this process.
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Control Procurement
Tools & Techniques
• Closed Procurement
• Work Performance
Information
• Procurement
documentation
updates
• Change Requests
• Project Management
Plan (Updates)
• Project Document
Updates
• Organisational
Process Assets
(Updates)
• Procurement Management
Plan• Procurement Management Plan
• Requirements Management
Plan
• Risk Management Plan
• Schedule Baseline
• Project Documents• Assumption log
• Lessons learned register
• Milestone list
• Quality report
• Requirements Documentation
• Risk register
• Stakeholder register
• Agreements
• Procurement Documents
• Approved change requests
• Work performance data
• OPA
• EEF
Inputs Outputs
• Expert judgment
• Data Analysis
• Performance Review
• Earned value analysis
• Trend analysis
• Inspections
• Audits
• Claims Administration
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Contract Administration
The Contract Administrator is responsible for protecting the integrity and purpose of the contract.
The PM helps ensure
successful execution of the
contract.
Only the Contract
Administrator has the power
to implement changes on
the contract.
It must also be done in
agreement with other parties
involved.
Role of the PM
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Contract Administration: Centralised vs
Decentralised
Centralised Contracting Decentralised Contracting
Contract Administrators support
each other
Contract administrator is alone on a
project without support of other
Contract administrators
They have career pathsThe position is viewed more as a need
instead of a career type position
They have a great degree of
shared expertise
The Contract administrator is the only
one on the project.
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Closed Procurement (Output)
Requirements for formal procurement closure are
usually defined in the terms and conditions of the
contract and are included in the Procurement
management plan.
It involves verification that all work and deliverables were
acceptable.
It may also include administrative activities such as
updating records, archiving, e.t.c.
Formal Acceptance is a key piece of the contract
because it involves the buyer agreement that the work is
complete on the project.
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Discussion
A contractor is working on a fixed price contract that calls for a
single, lump sum payment upon satisfactory completion of the
contract. About halfway through the contract, the contractor's
project manager informs the SAAC’s contract administrator that
financial problems are making it difficult for the contractor to pay
employees and subcontractors. The contractor asks for a partial
payment for work accomplished. Which of the following actions
by SAAC is most likely to cause problems for the project?
-Starting to make partial payments to the contractor
-Making no payments to the contractor
-Paying for work accomplished to date
-Negotiating a change to the contract
Case
Study
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Project Stakeholders Management
Project
Management
Team Project
Manager
Project Team
Project
Stakeholders
The Project
Operations
Management
Functional
Managers
Sellers/
Business
Partners
Customer/
Users
Other
Stakeholders
Portfolio
Manager
Program
Manager
Project
Management
Office
Project
Team
Project
Sponsor Project stakeholder Management includes the processes required to
identify the people, groups or organisations that could impact or be
impacted by the project, to analyse stakeholder expectations and
their impact on the project decisions and execution.
Focus is also on continuous communication with stakeholders to
understand their needs and expectations as the evolve.
Stakeholder satisfaction should be managed as a key project
objective
© 2021 Oak Interlink Company. All rights reserved.
Process Name Process Group Main Outputs
Identify Stakeholders Initiating Stakeholder Register
Plan Stakeholder
EngagementPlanning
Stakeholder Management
Plan
Manage Stakeholder
EngagementExecution Change Requests
Monitor Stakeholder
EngagementMonitoring and Controlling Change Requests
Project Stakeholders ManagementProcess Table
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Identify Stakeholders
This process includes
identifying all people or
organisations impacted
by the project, and
documenting relevant
information regarding
their interests,
involvement and impact
on project support.
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Identify Stakeholders
Tools & Techniques
• Stakeholder Register
• Change requests
• Project management
plan updates
• Project document
updates
• Project Charter
• Business documents• Business case
• Benefit management plan
• Project management plan• Communications management
plan
• Stakeholder engagement plan
• Project documents• Change log
• Issue log
• Requirements documentation
• Agreements
• EEF
• OPA
Inputs Outputs
• Data Analysis• Stakeholder Analysis
• Document analysis
• Data Gathering• Questionnaire and
surveys
• Brainstorming
• Data Representation• Stakeholder
mapping/representati
on
• Expert Judgment
• Meetings
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Stakeholders Analysis
Stakeholder analysis generally follows the steps
highlighted below:
Identify all potential project stakeholders and relevant
information i.e. roles, departments, expectations, influence
levels, etc
Identify the potential impact or support each stakeholder could
generate, classify them in order to develop a strategy. Some
Classification models include:
o Power/Interest Grid
o Power/Influence Grid
o Influence/Impact Grid
o Salience Model – based on power, urgency and legitimacy
Assess how key stakeholders are likely to react or respond in
various situations so as to plan how to enhance support or
mitigate potential negative impact.
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Stakeholders Analysis – Power/Interest Grid
POWER
INTERESTlow high
high
Keep Satisfied Manage closely
Monitor
(Minimum effort)Keep informed
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Plan Stakeholder Engagement
• Stakeholder
Management Plan
• Project Charter
• Project management plan• Resource management plan
• Communication management
plan
• Project documents• Assumption log
• Change log
• Issue log
• Project schedule
• Risk register
• Stakeholder register
• Agreements
• EEF
• OPA
Inputs Outputs
Tools & Techniques
• Data Analysis• Assumption and
constraint Analysis
• Root Cause analysis
• Data Gathering• Benchmarking
• Data Representation• Stakeholder
engagement
assessment matrix
• Mind mapping
• Decision making • Prioritisation/ranking
• Meetings
This is the process of developing appropriate management
strategies to effectively engage stakeholders throughout the
project lifecycle, based on the analysis of their needs, interests
and potential impact on project success
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Stakeholder Management Strategy
The Stakeholder management strategy defines an
approach to increase the support and minimise negative
impacts of stakeholders throughout the entire lifecycle of
the project. It includes elements such as;
Key stakeholders who can significantly impact the project
Level of participation in the project desired for each identified
stakeholder
Stakeholder groups and their management.
A stakeholder Analysis matrix is a common way of representing this
Stakeholder Stakeholder
Interests in the
Project
Assessment
of Impact
Potential Strategy for
Gaining Support or
Reducing Obstacles
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Manage Stakeholder Engagement
This refers to managing communication to
satisfy the needs of, and resolve issues with,
project stakeholders.
Actively managing stakeholders increases
the likelihood that the project will not veer of
track due to unresolved stakeholder issues.
The PM is responsible for managing
stakeholder expectations.
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Manage Stakeholder Engagement
• Change Requests
• Project Management
Plan Updates
• Project Documents
Updates
• Project management plan• Communications
management plan
• Stakeholder engagement
plan
• Risk management plan
• Change management plan
• Project documents• Change log
• Issue log
• Lessons learned register
• Stakeholder register
• EEF
• OPA
Inputs Outputs
Tools & Techniques
• Expert Judgment• Benchmarking
• Communication Skills
• Feedback
• Ground Rules
• Meetings
• Interpersonal and
Team Skills
• Conflict management
• Cultural awareness
• Negotiation
• Observation
/conversations
• Political awareness
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Monitor Stakeholder Engagement
• Work Performance
Information
• Change Requests
• Project Management
Plan Updates
• Project Documents
Updates
• Project management plan• Resource management plan
• Communication management
plan
• Stakeholder engagement plan
• Project documents• Lessons learned register
• Issue log
• Project communications
• Risk register
• Stakeholder register
• Work performance data
• EEF
• OPA
Inputs Outputs
Tools & Techniques
• Data Analysis• Alternative Analysis
• Root Cause analysis
• Stakeholder analysis
• Data Representation• Stakeholder
engagement
assessment matrix
• Decision making • Multicreiteria decision
analysis
• Voting
• Communication skills • Feedback
• Presentations
• Meetings
• Interpersonal and team
skills
This is the process of monitoring overall project
stakeholder relationships and adjusting strategies
and plans for engaging stakeholders.
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Group Game
The Process Game.
Arrange the processes/tasks/activities in the Process Groups
they belong to.
Game
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Reporting of the PMP® Code of Professional
Conduct
The Code of Professional Conduct describes the
standards that the PMP® is to be held as well as
acceptable and unacceptable behaviour guidelines.
Truthful and accurate reporting as it relates to PMP®
certification and the certification process.
Report anyone not reporting accurate information on the
PMP® certification to PMI® for corrective action. If done
accidentally, bring the person’s attention to this. If the
person does not change, report to PMI®.
If you are requested by PMI® to work with them in a
code of conduct violation, you are expected to
cooperate fully.
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Growing Project Management as a Profession
You are to make people aware of Project
management and the benefits.
Growing Project management as a profession
could include all these: Writing papers on project management and other related
topics
Explaining the value of project management to those that
do not understand it
Training people on project management
Showing people how project management can help solve
problems on projects at work.
Helping to mentor others who wish to know more about
project management.
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Helping Team Members Gain Experience and
Knowledge
The first priority of the project is to accomplish
the work of the project as per the defined goals.
As this is being achieved, the PM should take
into consideration the goals of those on the
team, the PM exercises professional and social
responsibility by helping those people gain
experience and knowledge based on the work
and activities on the project
A conscious effort must always be made to
build up the team members
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Professional Practice
As a PMP®, you are expected to practice the
art and skills of project management
professionally.
You must interact with others in a professional
way.
You are to show the professionalism similar to
that of a CPA
Most PMP® s are seasoned professionals
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Cultural Sensitivity and Differences
Projects are carried out across nations and
cultures
The team will be exposed to a variety of cultures
and lifestyles.
The PM has a responsibility to proactively
minimise culture shock and maximise the
potential for various cultures and lifestyles that
make up the project.
It is advisable to organise team building activities
towards this goal.
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Violation of Company Policy, Government,
Law or Standards
It is expected that company employees follow
policies when such policies do not violate city,
state or federal laws. Policies are not as strict
as a law.
Report violation of Company policies
Report violations of local government, state or
federal laws
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Respecting Intellectual Property, Professional
Work and Research
Much of the industry in which Project Managers
work today deals with cutting edge information
and ideas or at the least information that could
give an edge to a competitor
PMPs are required to respect intellectual
property, including copyrights, patents and
trademark information
If a PMP® has signed a non disclosure
agreement (NDA) about certain information,
he/she must abide by it.
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Interpretation of the Code of Professional
Conduct to other PMP® s and Candidates
It’s the responsibility of the PMP® if he/she sees
someone stretching the rules associated with
professional and social responsibility to advice
that the person review the act.
For example, someone is preparing to report
that a project had a CPI of 1.18 when your
company has never had a project hit a CPI of
1.0 and you know the report is not accurate. If it
comes to your notice, you may want to ask the
person to review.
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How to Handle Customer Requests
It is the responsibility of the PMP® to report
accurate status on a project.
If the project work is going well or badly, the
report should be accurate and timely
Regardless of the pressure or consequence,
status must be reported in a timely, accurate and
honest manner
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Conflict of Interest
It is unacceptable to be involved in a
conflict of interest according to PMI.
The perception of a conflict of interest is
also inappropriate.
Companies usually have what constitutes
conflict of interest