Project Management Essentials - OAK Interlink Company

Project Management EssentialsBased on the PMBOK® Guide 6th Edition and AGILE Practice Guide

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2

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®.


PMP Program Schedule

s/n Activity Days

1 Welcome, Registration and Introductions Day 1 (9.00 am)

2 Predictive Approach – PMBoK Guide Day 1



5 Agile Approach – Agile Practice Guide Day 3

6 Agile Approach - Agile Practice Guide Day 4

7 Wrap Up Day 4


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


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.


Project

Management

FrameworkUnderstanding the

Project Management

Environment


7

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)


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


9

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


Characteristics of the 4 Approaches/Lifecycles


The Continuum of the 4 Approaches/Lifecycles


Project

Management

FrameworkPredictive Approach

Based on the PMBoK

Guide


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.


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



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



Project Management Processes

Product Oriented Processes


PM Processes: Process Mapping


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


20

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


21

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.


22

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


23

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.


24

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


25

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


26

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


29


Competencies


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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.


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


32

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


34

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


35

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


37

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


38


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


39

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.



40

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


Project

Management

Processes


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The Five Process Groups

Initiating

Planning

ExecutingMonitoring

and controlling

Closing


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

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PM Processes: Process Mapping


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


49

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


50

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


51

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


52

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


Knowledge

Areas


55

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.


Integration

Management


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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


61

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


63

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


64

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.


66

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.


69

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


70

Project Management Plan


71

Direct and Manage Project Work

Tools & Techniques

• Deliverables

• Issue Logs

• Change Requests


Updates

• Project Document

Updates


Assets Updates

• Work Performance Data


• Project Documents

• Approved Change

Requests


Factors


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


72

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.


73

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


74

Manage Project Knowledge

Tools & Techniques

• Lessons learned register


Updates


Assets Updates



• Deliverables


Factors


Assets


• Knowledge

management

• Information

management

• Interpersonal and

Team skills

This process creates the deliverables of the project as defined in the project management plan


75

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


Plan Updates


Updates


• Project Documents• Schedule Forecasts

• Cost Forecasts

• Assumption Log

• Basis of Estimate, etc

• Work Performance Info

• Agreements


Factors


Assets

Inputs Outputs

• Expert Judgment

• Data Analysis

• Alternative Analysis

• Cost Benefit Analysis

• Earned Value Analysis

• Root Cause Analysis

• Trend Analysis

• Decision Making

• Voting

• Meetings


77

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


78


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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Tools & Techniques

• Approved Change

Requests


Plan (Updates)


Updates



• Change Requests


Reports


Factors


Assets

Inputs Outputs

• Expert Judgment

• Change Control

Tools

• Data Analysis

• Decision Making

• Meetings


80

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


81

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


82

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


83

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


84

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


85

Close Project or Phase

Tools & Techniques


Updates

• Final Product, Service

or Result Transition

• Final report

• Organisational

Process Assets

Updates

• Project Charter



• Accepted Deliverables

• Business Documents

• Agreements

• Procurement

Documentation


Assets

Inputs Outputs

• Expert Judgment

• Data Analysis

• Meetings


86

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


87

• 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



88

• 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



89

Project

Scope

Management


90

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


91

Scope Process Table


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


92

Plan Scope Management

Tools & Techniques

• Scope Management

Plan

• Requirements

Management Plan.


• Project Charter


Factors


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.


93

Collect Requirements

Tools & Techniques

• Requirements

Documentation

• Requirements

Traceability Matrix

• Project Charter

• Project Management Plan• Scope Management Plan

• Requirements Management

Plan

• Stakeholder Management

Plan



• Agreements

• EEF

• OPA


• 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


94

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


95

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


96

Define Scope

Tools & Techniques

• Project Scope

Statement


(Updates)

• Project Charter


• Project Documents• Requirements

Documentation

• OPA

• EEF

Inputs Outputs

• Expert Judgment

• Data Analysis

• Alternatives Generation

• Decision Making

• Product Analysis

• Interpersonal and Team

Skills

• Facilitation


97

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.


98

Create Work Breakdown Structure (WBS)

Tools & Techniques

• Scope Baseline


(Updates)


• Project Documents• Project Scope Statement

• Requirements

Documentation


Assets


Factors

Inputs Outputs

• Decomposition

• Expert Judgment


99

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


100

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


101

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.


102

WBS

Project

Control Accounts

Work Packages


103

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?


104

Importance of the WBS

WBS

Activity List

Network Diagram

Staffing

Estimating

Scheduling

Budgeting

Quality Mgt

Risk Mgt

Project Control


105

Validate Scope

Tools & Techniques

• Accepted deliverables

• Change Requests


Information


(Updates)


• Project Documents• Requirements traceability

matrix

• Verified Deliverables


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.


106

Control Scope

The process of monitoring the status of the

project and product scope and managing

changes to the scope baseline.


107

Control Scope

Tools & Techniques


Information


Plan Updates

• Change Requests


(Updates)

• Project Management Plan• Requirements

Documentation

• Project Documents• Requirements traceability

matrix


Assets

• Work performance Data

Inputs Outputs

• Data Analysis• Variance Analysis

• Trend Analysis


108

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


Project

Schedule

Management


110

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


111

Time Process Table


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


112

Plan Schedule Management

Tools & Techniques

• Schedule Management

Plan


• Project Charter


Factors


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.


113

Define Activities

Tools & Techniques

• Activity List

• Activity Attributes

• Milestone List

• Change Requests


Plan (Updates)

• Project Management Plan• Schedule Management Plan

• Scope Baseline


Factors


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.


114

Sequence Activities

Tools & Techniques

• Project Schedule

Network Diagrams


(Updates)

• Project Management Plan• Scope Baseline

• Schedule Management Plan

• Project Documents• Activity List


• Milestone List


Assets


Factors

Inputs Outputs

• Precedence

Diagramming Method

(PDM)

• Dependency

Determination

• Leads and Lags


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


115

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


116

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.


117

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


118

Predecessor Types - Summary


119

Lead and Lag


120

Estimate Activity Duration

Tools & Techniques

• Duration Estimates

• Basis of Estimates


(Updates)


Plan• Schedule Mgmt Plan

• Scope Baseline



• 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


• Data Analysis• Reserve Analysis

• Alternative Analysis

• Meetings

Estimate the number of work days (or hours) to complete

an activity.


121

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


122

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


123

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.


124

Develop Schedule

Tools & Techniques


• Schedule Data

• Schedule Baseline

• Project Calendars

• Change Requests


Plan updates


(Updates)


Plan• Schedule Mgt Plan

• Scope Baseline



• Schedule Network Diag

• Activity Resource

Requirements

• Risk Register



• 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


125

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


126

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


127

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.


128

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


129

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


130

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


131

Forward and Backward Pass Calculation

Early Start (ES) Duration Early Finish (EF)

Activity Name

Late Start (LS) Slack Late Finish (LF)


132

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.


133

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.


134

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


135

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


136

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


137

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


138

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


139

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


140

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


141

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


142

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.


143

Logic Bar Chart


144

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.


145

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


146

Control Schedule

Tools & Techniques


Information

• Schedule Forecasts

• Change Requests

• Project

Documents(Updates)


Plan (Updates)

• Project Management Plan• Project Schedule

• Project Documents• Project Calendar

• Schedule Data



Assets

Inputs Outputs

• Critical Path Method

• Data Analysis

• PMIS

• Schedule Compression

• Leads and lags

• Scheduling tool


Project Cost

Management


148

Cost Process Table


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


149

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.


150

Plan Cost Management

Tools & Techniques

• Cost Management Plan


• Project Charter


Factors


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.


151

Cost Types

There are four (4) Project Cost types:Direct

Indirect

Fixed

Variable

A combination of these is possible e.g. Fixed Direct


152

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.


153

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.


154

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.


155

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.


156

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.


157

Estimate Cost

Tools & Techniques

• Cost Estimates



(Updates)

• Project Management Plan• Cost Management Plan

• Scope Baseline

• Project Documents• Risk Register



Factors


Assets

Inputs Outputs• Analogous Estimating

• Expert Judgment

• Three Point Estimate

• Bottom Up Estimating

• Parametric Estimating


Estimating Software

• Vendor Bid Analysis

• Reserve Analysis

• Cost of Quality



158

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%


159

Cost Funnel

Rough Order of Magnitude

Estimate -50% to +100%

Definitive or

Control

Estimate

-10% to

+15%


160

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


161

Determine Budget

Tools & Techniques

• Cost Baseline

• Project Funding

Requirements


(Updates)


• Scope Baseline

• Resource Management

Plan

• Project Documents• Activity Cost Estimates




• Risk Register


• Agreements

• EEF

• OPA

Inputs Outputs

• Cost Aggregation


• Expert Judgment

• Funding Limit

Reconciliation

• Historical

Information Review

• Financing


162

Project Budget Components


163

Control Cost

Tools & Techniques


Information

• Cost Forecasts

• Change Requests


Updates


Plan (Updates)



• Project Funding

Requirements



Assets

Inputs Outputs

• Earned Value

Management


• 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:


164

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.


165

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.


166

Earned Value Variables


167

Earned Value Variables


168

Exercise


169

Exercise


170

Exercise Template


Project

Quality

Management


172

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.


173

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


174

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:


175

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:


176

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.


177

Quality Process Table


Plan Quality Management PlanningQuality Management Plan

Quality Metrics

Manage Quality Executing Change Requests

Control Quality Monitoring and ControllingQuality Control Measurements

Validated Deliverables


178

Quality Management Process Interaction


179


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


180


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.


181


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.


182

Plan Quality Management

Identifying which quality standards are

relevant to the project and determining

how to satisfy them.


183

Plan Quality Management

Tools & Techniques

• Quality Management

Plan

• Quality Metrics

• Process Improvement

Plan


Plan (Updates)


(Updates)

• Project Charter



Documentation

• Stakeholder Register

• Risk Register


Factors


Assets


• Data Gathering• Benchmarking

• Brainstorming

• Interviews

• Data Analysis• Cost Benefit Analysis

• Cost of Quality (COQ)

• Decision Making


• Test and Inspection

Planning

• Meetings


184

Seven Basic Quality Tools


185

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.


186

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


187

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


188

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.


189

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


190

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√ √


191

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.

.


192

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.


193

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.


194

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


195

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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196

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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197

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.


198

Manage Quality

Tools & Techniques

• Quality Reports

• Test and Evaluation

Documents

• Change Requests


Plan (Updates)


(Updates)


Plan• Quality Management Plan

• Project Documents• Quality Metrics

• Quality Control

Measurement

• Risk report


Inputs Outputs

• Data Gathering

• Data Analysis

• Decsion Making


• Audits

• Design for X

• Problem Solving

• Quality Improvement

Methods


199

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


200

Control Quality

Tools & Techniques

• Quality Control

Measurement

• Verified Deliverables


Information

• Change Requests


(Updates)


(Updates)

• Project Management Plan• Quality Management Plan

• Project Documents• Quality Metrics


• Approved Change

Request

• Deliverables

• EEF

• OPA

Inputs Outputs

• Data Gathering

• Data Analysis

• Inspection

• Testing/Product

Evaluations


• Meetings


201

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


Project

Resource

Management


203

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.


204

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.


205

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


206

Plan Resource Management

This process...

defines how to estimate, acquire, manage and use

team and physical resources

creates the resource management plan

…

…

…

…


207

Plan Resource Management

Tools & Techniques

• Resource Management

Plan

• Team Charter


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


208

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


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)


210

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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211


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


212


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


213

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


214

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


215

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


216

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


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


218

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


219

Estimate Activity Resources

Tools & Techniques

• Resource

Requirements



(Updates)


Structure

• Project Management Plan• Resource Management

Plan

• Scope Baseline

• Project Documents • Activity List


• Assumption Log


• Risk Register

• Cost Estimates


Factors


Assets

Inputs Outputs

• Expert Judgement

• Data Analysis• Alternatives Analysis


Software (PMIS)

• Bottom Up Estimating

• Analogous Estimating

• Parametric Estimating

• Meetings


• 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.


221

Acquire Resources

Tools & Techniques

• Physical resource

assignment

• Project team Assignment


• Change request


Plan (Updates)

• Project document

(Updates)

• EEF and OPA Updates

• Project Management Plan• Resource Management Plan

• Procurement Management

Plan



Factors


Assets

Inputs Outputs

• Pre-assignment

• Virtual Teams


Team skills• Negotiation

• Decision Making• Multi-criteria

Decision Analysis


222

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


223

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


224

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


225

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


226

Develop Team

Tools & Techniques

• Team Performance

Assessment

• Change Requests


(Updates)


(Updates)



• Project Documents• Project Staff Assignment

• Resource Calendar

• OPA

• EEF

Inputs Outputs

• Co location

• Virtual Teams

• Communication

Technology


Team Skills

• Training

• Ground Rules

• Recognition and

Rewards

• Individual and Team

Assessment


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


228

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


229

Manage Team

This involves tracking

team member

performance, providing

feedback, resolving

issues and coordinating

changes to enhance

project performance.


230

Manage Team

Tools & Techniques

• Change Requests


plan(Updates)


Updates


Assets (Updates)

• Enterprise

Environmental Factors

(Updates)


• Project Documents• Project Staff Assignment

• Issue Logs

• Team Performance

Assessment


Reports

• EEF

• OPA

Inputs Outputs


Team Skills• Conflict Management

• Influencing

• Leadership

• Emotional Intelligemce

• Decision Making

• PMIS


231

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.


232

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


233

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.


234

Control Resources

Tools & Techniques


Information

• Change Requests


Plan (Updates)


(Updates)


Structure



• 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


Team Skills

• PMIS


235

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


Project Risk

Management


237

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.


238

Risk Process Table


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


239

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.


240

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


241


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.


The Risk

Management

Plan includes:

242


Budgeting

Timing

Roles and Responsibilities

Risk Categories

Definitions of Risk Probability and Impact

Revised stakeholder tolerances

Reporting Formats

Tracking

Methodology


243


Tools & Techniques

• Risk Management

Plan

• Project Charter

• Project Management Plan• All Components

• Project Documents• Stakeholder Register


Factors


Assets

Inputs Outputs

• Meetings

• Expert Judgment

• Data Analysis

• Stakeholder Analysis


244

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


245

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.


246

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


247

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.


248

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


249

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.


250

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.


251

Identify Risks

• Risk Register

• Risk reports

• Project

Documents

Updates

• Project Documents• Cost Estimates




• 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


team skills• Facilitation

• Prompt Lists

• Meetings

Tools & Techniques


252

Risk Terms

Brainstorming

Delphi Technique

Interviewing

Root Cause identification

SWOT Analysis

These are used in

identifying risks,

they include:

Information Gathering

Techniques


253

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


254

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


255

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


256

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.


257

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.


258

Perform Qualitative Risk Analysis

Tools & Techniques

Project Documents

Updates

• Project Management Plan• Risk Management Plan


• Assumption log


Factors


Assets

Inputs Outputs

• Expert Judgment


• 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


team skills

• Meetings


259

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.


260

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


261

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


262

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.


263

Perform Quantitative Risk Analysis

Tools & Techniques

Project Document

Updates

• Project Management Plan• Schedule Baseline

• Risk Baseline

• Cost Baseline

• Scope Baseline


• Assumption Log

• Basis of Estimate

• Cost estimate

• Cost forecast

• Duration estimates

• Resource requirements

• Schedule forecasts

• OPA

• EEF



• Data Analysis• Simulation

• Sensitivity analysis

• Decision tree anlysis

• Influence diagrams

• Representations of

Uncertainty




264

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


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)


266

Plan Risk Responses

Tools & Techniques

• Change Requests


Plan (Updates)


Updates



• Cost Baseline


• Risk report


• Lessons Learned register

• EEF

• OPA



• Data Analysis• Alternative analysis

• Cost benefit analysis



• Strategies Threats

• Strategies

Opportunities

• Contingent

Response Strategy

• Decision Making


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,


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.


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


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.


270


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.


271


Risk Response Strategies for both Negative & Positive Risks

Risk Response


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.


272

Implement Risk Responses

Tools & Techniques

• Change Requests


Updates

• Project Management Plan• Risk Management Plan


• Risk report

• Lessons Learned register

• OPA

Inputs Outputs

• Expert Judgment


team skills• Influencing

• PMIS

This is the process of implementing agreed upon

risk response plans.


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.


274

Monitor Risks

Tools & Techniques


Information

• Change Requests


Plan Updates


Updates

• Organisational

Process Assets

Updates

• Project Management Plan• Risk management plan


• Risk report

• Issue logs



Reports


Inputs Outputs

• Risk Audits

• Data Analysis• Technical

Performance

Measurement

• Reserve Analysis

• Meetings


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


Project

Communications

Management


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.


278

Communication Process Table


Plan Communications PlanningCommunications

Management Plan

Manage Communications Executing Project Communications

Monitor Communications Monitoring and Controlling

Work Performance

Information

Change Requests


279

Plan Communications

Tools & Techniques

• Communications

Management Plan


Plan Updates


Updates

• Project Charter

• Project Management Plan• Stakeholder Engagement

Plan


• Project Documents• Stakeholder Register

• Requirements

Documentation

• EEF

• OPA


• Communications

Requirements

Analysis

• Communications

Technology

• Communication Model

• Communication

methods


team skills

• Data representation

• Meetings


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.


281

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.


282

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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283

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


284

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.


285

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


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


287


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.


288


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


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.


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


291

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.


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


293

Manage Communication

Tools & Techniques

• Project Communications


Plan Updates


Updates


Assets (Updates)

• Project Management Plan• Communications

Management Plan


• Stakeholder Engagement

Plan

• Project Docuemments


Reports


Assets


Factors

Inputs Outputs• Communications

Technology

• Communication

methods

• Communication Skills

• Information

Management Systems

• Project Reporting


team skills

• Meetings


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.


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.


296

Monitor Communications

Tools & Techniques


Information


Updates


Updates

• Change requests

• Project Management Plan• Communications

Management Plan


• Project Documents• Issue Logs


• EEF

• OPA

Inputs Outputs

• Expert Judgment

• PMIS

• Data representation


team skills

• Meetings

This is the process that ensures the information needs of the

project and it stakeholders are met.


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


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


Project

Procurement

Management


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



Plan Procurement

Management Planning

Procurement Management

Plan

Conduct Procurements Executing Selected Sellers

Control Procurements Monitoring and ControllingProcurement

Documentation

Procurement Process Table


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.


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


Updates

• OPA Updates

• Project Charter



• Project Documents• Requirements Documentation

• Risk Register

• Resource Requirements




Factors


Assets

InputsOutputs

• Data Analysis• Make or Buy Analysis

• Expert Judgment

• Source Selection

Analysis

• Data Gathering• Market Research

• Meetings


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


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


$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?


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


Contract Life Cycle

...

...

...

Requisition

Requirement

Contract Life Cycle

SolicitationAward

Contract


Buyer Seller

• Client • Contractor

• Prime Contractor • Vendor

• Contractor • Service Provider

• Acquiring Organisation • . Supplier

• Government Agency

• Purchaser

• Customer • Sub Contractor

Buyer and Seller Names


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


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


Contract Risk for

Buyer

Risk for


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


Contract Risk for

Buyer

Risk for


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


Contract Risk for

Buyer

Risk for


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


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


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


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


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


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.


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.


321

Conduct Procurement

Tools & Techniques

• Selected Sellers

• Agreements

• Change Request


Plan (Updates)


(Updates)

• OPA Updates


Plan• Procurement Management

Plan

• Configuration Management

Plan


Documentation

• Risk Register

• Resource Requirements



• Seller Proposals


• OPA

• EEF

Inputs Outputs

• Expert Judgment

• Advertising

• Bidders Conferences

• Data Analysis• Proposal Evaluation


team skill• Negotiation


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


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


324

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.


325

Control Procurement

Tools & Techniques

• Closed Procurement


Information

• Procurement

documentation

updates

• Change Requests


Plan (Updates)


Updates

• Organisational

Process Assets

(Updates)


Plan• Procurement Management Plan

• Requirements Management

Plan


• Schedule Baseline

• Project Documents• Assumption log


• Milestone list

• Quality report

• Requirements Documentation

• Risk register


• Agreements


• Approved change requests


• OPA

• EEF

Inputs Outputs

• Expert judgment

• Data Analysis

• Performance Review

• Earned value analysis

• Trend analysis

• Inspections

• Audits

• Claims Administration


326

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


327

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.


328

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.


329

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


Project

Stakeholder

Management


331

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



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


333

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.


334

Identify Stakeholders

Tools & Techniques


• Change requests

• Project management

plan updates


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


335

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.


336

Stakeholders Analysis – Power/Interest Grid

POWER

INTERESTlow high

high

Keep Satisfied Manage closely

Monitor

(Minimum effort)Keep informed


337

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


• Agreements

• EEF

• OPA

Inputs Outputs

Tools & Techniques

• Data Analysis• Assumption and

constraint Analysis

• Root Cause analysis

• Data Gathering• Benchmarking


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


338

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


339

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.


340

Manage Stakeholder Engagement

• Change Requests


Plan Updates


Updates

• Project management plan• Communications

management plan

• Stakeholder engagement

plan

• Risk management plan

• Change management plan

• Project documents• Change log

• Issue log



• EEF

• OPA

Inputs Outputs

Tools & Techniques

• Expert Judgment• Benchmarking

• Communication Skills

• Feedback

• Ground Rules

• Meetings


Team Skills

• Conflict management

• Cultural awareness

• Negotiation

• Observation

/conversations

• Political awareness


341

Monitor Stakeholder Engagement


Information

• Change Requests


Plan Updates


Updates

• Project management plan• Resource management plan

• Communication management

plan

• Stakeholder engagement plan

• Project documents• Lessons learned register

• Issue log

• Project communications

• Risk register



• EEF

• OPA

Inputs Outputs

Tools & Techniques

• Data Analysis• Alternative Analysis

• Root Cause analysis

• Stakeholder analysis


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.


342

Group Game

The Process Game.

Arrange the processes/tasks/activities in the Process Groups

they belong to.

Game


Professional and

Social

Responsibility


344

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.


345

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.


346

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


347

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


348

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.


349

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


350

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.


351

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.


352

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


353

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


All About the Exams!


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