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Project Management Professional [PMP®]

A Guide to the Project


Management Body of Knowledge
PMP® Exam Preparation Course- (PMBOK® Guide) – Fifth Edition
The Sixth lecture

Presented by
Hossam Ghanem,PMP,ITIL,MCSE
PMP® , "PMBOK "PMI R.E.P logo are registered marks of the Project Management Institute, Inc.
Presentation Agenda:

– Plan Stakeholder Mgmt.

– Plan Communication

– Plan Quality

– Plan Human Resource

– Plan Procurements

– Plan Risk

– Identify Risk

– Perform Qualitative Risk Analysis

– Revision & Open Discussion

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Presentation Agenda:

Planning Processes Group


Process Project Phase Knowledge Area Key Deliverables
Planning Stakeholder Mgmt. Stakeholder Mgmt. Plan
Plan Stakeholder Mgmt.

Planning Communication Mgmt. Communication Mgmt. Plan


Plan Communication

Planning Quality Mgmt. Quality Mgmt. plan


Plan Quality

Planning Human Resource Mgmt. Human Resource Mgmt. Plan


Plan Human Resource

Planning Procurement Mgmt. Procurement Mgmt. Plan


Plan Procurement

Plan Risk Planning Risk Mgmt. Risk Mgmt. Plan


Identify Risk Planning Risk Mgmt. Risk Register

Perform Qualitative Risk Analysis Planning Risk Mgmt. Project Doc. Update

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Plan Stakeholder Mgmt.

The Plan Stakeholder Management

focuses on effectively engaging stakeholders

understanding their needs and interests

understanding the good and bad things they might bring to the project

how the project will impact them

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Plan Stakeholder Mgmt.

Source: Project Management Institute, a Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition,
Project Management Institute, Inc., 2013, Figure 13-6, Page 399

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Plan Stakeholder Mgmt. Tools

Analytical techniques
Analytical techniques allow you to classify the engagement levels of your stakeholders and

monitor and modify them throughout the project. According to the PMBOK® Guide, there

are five levels of classifications of stakeholder engagement

Unaware : Stakeholders are not engaged in the project.


Resistant :Stakeholders are not supportive of the project and may actively resist engaging.
Neutral: Stakeholders are neither supporting nor resisting the project and may be minimally
engaged.
Supportive Stakeholders have positive expectations of the project and are supportive and
engaged.
Leading : Stakeholders are actively engaged in the project and helping to assure its success.

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Plan Stakeholder Mgmt. Tools

Stakeholder Classification
The purpose behind the classification is to document what levels of engagement your
stakeholders are at during each phase of the project.

C indicates the current engagement, and D indicates the desired engagement

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Plan communication Mgmt.

Communication
The Plan Communications Management process concerns defining and documenting

the types of information you're going to deliver, the format it will take, to whom it

will be delivered, and when. this definition is taken from the Glossary of the Project Management Institute, a Guide to
the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013'

Source: Project Management Institute, a Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition,
Project Management Institute, Inc., 2013, Figure 10-3, Page 289
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Plan communication Mgmt.tools

Communications Requirements Analysis


Communications requirements analysis involves analyzing and determining the
communication needs of the project stakeholders. including the following:

• Company and departmental organizational charts.

• Stakeholder responsibility relationships.

• Other departments and business units involved on the project.

• The number of resources involved on the project and where they're located in relation
to project activities.

• Internal needs that the organization may need to know about the project.

• External needs that organizations such as the media, government, or industry groups
might have that require communication updates
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Plan communication Mgmt.tools

Network Communications model

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Plan communication Mgmt.tools

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Plan communication Mgmt.tools

Communication Technology

The second tool and technique of this process is communication technology. This

examines the methods (or technology) used to communicate the information to,

from, and among the stakeholders. Methods of communicating can take many forms,

such as

• written,
• spoken,
• email,
• formal status reports,
• meetings,
• online databases,
• online schedules, and so on

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Plan communication Mgmt.tools

Communication Methods
Communication methods refer to how the project information is shared among the
stakeholders. According to the PMBOK® Guide, there are three classifications of
communication methods.
Interactive Communication.
Communication involves multi-directional communication where two or more parties must
exchange thoughts or ideas. This method includes videoconferencing, phone or conference calls,
meetings, and so on.
Push Communications
Is one way and refers to sending information to intended receivers. It includes methods such as
letters, memos, reports, emails, voicemails, and so on.
Pull Communications
This is the opposite of push communications. The likely recipients of the information access the
information themselves using methods such as websites, e-learning sites, knowledge
repositories, shared network drives, and so on.

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Plan communication Mgmt.tools

Communication Models
Communication models depict how information is transmitted from the sender and how it's
received by the receiver. According to the PMBOK® Guide, a communication model includes the
following key components:
▪ Encode
▪ Transmit
▪ Decode
▪ Acknowledge
▪ Feedback and/or response

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Plan communication Mgmt.tools

Encoding
the message simply means putting the information or your thoughts or ideas into a
language that the receiver will understand. The message is the result or output of the
encoding

The sender transmits the message using any number of methods, including written, email,
and so on.

Decode
is performed by the receiver and it refers to translating the information that was sent.

Acknowledge
is when the receiver lets the sender know they have received the message. This is not an
indication of agreement.

feedback and/or response


is provided after the receiver has decoded the original message.

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Plan communication Mgmt. Outputs

Communications Management Plan


The communications management plan provides:
• Stakeholder communication requirements
• Information to be communicated, including format, content, level of detail
• Person responsible for communicating the information
• Person or groups who will receive the information
• Methods or technologies used to convey the information, such as memoranda, e-mail,
and/or press releases
• Frequency of the communication, such as weekly
• Escalation process-identifying time frames and the management chain (names) for
escalation of issues.
• Method for updating and refining as the project progresses and develops
Project Document Update

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Plan Quality Management
Plan Quality Management is the process of identifying quality requirements
and/or standards for the project and its deliverables
this definition is taken from the Glossary of the Project Management Institute, a Guide to the Project Management Body of
Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013'

Source: Project Management Institute, a Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition,
Project Management Institute, Inc., 2013, Figure 8-3, Page 232

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Plan Quality Mgmt.

Why it's important to use a quality Mgmt..?

• Less rework

• Increased customer satisfaction

• Higher productivity

• Lower costs / shorter duration

• Higher project team morale

• Fewer errors / defects

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Plan Quality Mgmt.

Modern quality management ( Important Quality Approaches )

Customer satisfaction. Understanding, evaluating, defining, and managing expectations so that


customer requirements are met. This requires a combination of conformance to requirements (the
project must produce what it said it would produce) and fitness for use (the product or service
must satisfy real needs).

Prevention over inspection. The cost of preventing mistakes is generally much less than the cost
of correcting them, as revealed by inspection.

Continuous improvement. The plan-do-check-act cycle is the basis for quality improvement. And
other improvement initiatives such as TQM ,Six Sigma, Organizational Project Management
Maturity Model [ OPM3]and Capability Maturity Model Integrated [ CMMI].

Management Responsibility . Success requires the participation of all members of the project.

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Plan Quality Mgmt.

Quality Concepts

• -Quality is defined by the customer

• Conformance to requirements and specifications.

• zero defects –meet customer’s expectations.

• Satisfy stated and/or implied needs

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Plan Quality Mgmt.

Quality Approach

Deming = Quality is a management problem. [ P.D.C.A] Plan-Do-Check-Act cycle.

Juran = Fitness for use, conformance. Quality by design 80/20

Crosby = Zero defects and prevention or rework results.

Six Sigma = Six Sigma is a measurement-based strategy; no more than 3.4 defects per million

opportunities.

Six Sigma = 99.739 %


Three Sigma = 95.46%
One Sigma= 68.26%

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Plan Quality Mgmt. Tools

Cost-Benefit Analysis Means ( The project manager weighs the benefits versus the
costs of meeting quality requirements)
• Quality can be expensive to achieve,
• The golden rule, all benefits of quality activities must outweigh the cost.
Benchmarking
• Project’s quality standards are compared to those of other projects which will serve as a
basis for comparison.
Design of Experiments (DOE)
Design of experiments (DOE) is a statistical method
for identifying which factors may influence specific
variables of a product or process under development
or in production. DOE may be used during the Plan
Quality Management process to determine the number
and type of tests and their impact on cost of quality.
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Plan Quality Mgmt.Tools

Cost of Quality (COQ)


Cost of quality includes all costs incurred over the life of the product by investment in
preventing nonconformance to requirements, appraising the product or service for
conformance to requirements, and failing to meet requirements (rework). Failure costs are
often categorized into internal (found by the project) and external (found by the customer).

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Plan Quality Mgmt.tools

Statistical sampling
Choosing a sample of population to perform statistical studies
Additional quality planning tools
Like brainstorming, force and field analysis and nominal group techniques.

Seven Basic Quality Tools


• Cause-and-effect diagrams
• Flowcharts (also known as stratification charts)
• Check sheets
• Pareto diagrams
• Histograms
• Control charts
• Scatter diagram

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Plan Quality Mgmt.tools

Seven Basic Quality Tools


• Cause-and-effect diagrams

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Plan Quality Mgmt.tools

Seven Basic Quality Tools

Pareto Chart
• A Pareto chart is a specific type of histogram, ordered by frequency of occurrence.
• Which shows how many defects were generated by type or category of identified cause.
• Pareto’s Law, which holds that a relatively small number of causes will typically produce
a large majority of the problems or defects.
• The 80/20principle, where
80 percent of the problems are due to 20 percent of the causes.

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Plan Quality Mgmt.tools

Seven Basic Quality Tools


Pareto Chart

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Plan Quality Mgmt.tools

Seven Basic Quality Tools

Check sheets
Are similar to checklists and are used during the quality processes to gather or verify data regarding
quality problems.
Flow charts
Are graphical representations showing relations between process steps

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Plan Quality Mgmt.tools

Seven Basic Quality Tools


model.

Flow charts example


Supplier Input, Process, Output, Customer (SIPOC)

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Plan Quality Mgmt.tools

Seven Basic Quality Tools


Histogram [ Same Pareto Chart
• A histogram is a bar chart showing a distribution of variables. Each column represents
an attribute or characteristic of a problem/situation.
• This tool helps identify the cause of problems in a process by the shape and width of
the distribution.

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Plan Quality Mgmt.tools

Seven Basic Quality Tools


A scatter diagram
shows the pattern of relationship between two variables. This tool allows the quality team to
study and identify the possible relationship between changes observed in two variables.

Control charts,
are used to determine whether or not a process is stable or has predictable performance.
Upper and lower specification limits are based on requirements of the agreement. They
reflect the maximum and minimum values allowed.
Upper Specification Limit

Upper Control Limit

Lower Control Limit

Lower Specification Limit

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Plan Quality Mgmt.tools

Meetings
Project teams may hold planning meetings to develop the quality management plan.

Attendees at these meetings may include the project manager; the project sponsor;

selected project team members; selected stakeholders; anyone with responsibility for

Project Quality Management activities namely Plan Quality Management, Perform Quality

Assurance, or Control Quality; and others as needed.

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Plan Quality Mgmt. outputs

Quality Management Plan Describes how the quality policy will be met.

Quality Metrics Define how quality will be measured.

Quality Checklists To ensure that all steps were performed, and that they were performed in
the proper sequence.
Process Improvement Plan Deals with how quality activities will be streamlined and
improved. Areas to consider:
• Process boundaries, Describe the purpose of the process, the start and end of the process,
its inputs and outputs, the process owner, and the stakeholders of the process
• Process configuration, Provides a graphic depiction of processes, with interfaces
identified, used to facilitate analysis.
• Process metrics, Along with control limits, allows analysis of process efficiency
• Target to improve performance, Guide the process improvement activities
Project documents updates

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Plan Human Resource

Human Resource Planning determines project roles, responsibilities, and reporting


relationships, and creates the staffing management plan.
this definition is taken from the Glossary of the Project Management Institute, a Guide to the Project Management Body of
Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013'

Source: Project Management Institute, a Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition,
Project Management Institute, Inc., 2013, Figure 9-2, Page 258

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Plan Human Resource/ Tools

Organization Charts and Position Descriptions


To document team member roles and responsibilities. Most of the formats fall into one of
three types:
• Hierarchical (WBS, OBS,RBS)
• Matrix RAM
• Text-oriented (position descriptions and role-responsibility-authority forms)

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Plan Human Resource/ Tools

Organization Charts and Position Descriptions

Matrix-based charts.
A responsibility assignment matrix (RAM)is used to illustrate the connections between
work that needs to be done and project team members. RACI chart : Responsible,
Accountable, Consult, and Inform.

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Plan Human Resource/ Tools

Networking (Informal interaction )

Informal conversations, and trade conferences. While concentrated networking can be a useful

technique at the beginning of a project, carrying out networking activities on a regular basis

before a project begins is also effective

Organizational Theory
Provides information regarding the ways that people, teams, and organizational units behave.

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Plan Human Resource/ Tools

Theory

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Plan Human Resource/ Tools
Theory
McGregor’s theory

Theory X-Traditional view of management; top-down


-Managers: Control the people
-Workers: Viewed as inherently self-centered, lazy

Theory Y-Workers: Viewed as willing and eager to accept responsibility


-Managers: Create environment that aids workers in achieving goals

Theory Z-Assumes that trust and commitment on part of organization will yield
higher motivation and performance by employees -Rooted in Japanese culture

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Plan Human Resource/ Tools

Theory

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Plan Human Resource/ outputs

human resource management plan


The human resource management plan includes, but is not limited to, the following
• Roles and responsibilities needed to complete the project:
• Role. The label describing the portion of a project for which a person is accountable.
• Authority. The right to apply project resources, make decisions, and sign approvals.
• Responsibility. The work that a project team member is expected to perform in
order to complete the project’s activities.
• Competency. The skill and capacity required to complete project activities.
• Project Organization Charts
A project organization chart is a graphic display of project team members and their
reporting relationships. It can be formal or informal, highly detailed or broadly
framed, based on the needs of the project.
• Staffing Management Plan
The staffing management plan can include how and when project team members will be
acquired, the criteria for releasing them from the project, identification of training needs,
plans for recognition and rewards, compliance considerations, safety issues, and the impact of
the staffing management plan on the organization.
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Plan Human Resource/ outputs

Staff Acquisition This describes how team members are acquired (from inside or
outside the organization), where they're located, and the costs for specific skills and
expertise.
Resource Calendars This describes the time frames in which the resources will be
needed on the project and when the recruitment process should begin.

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Plan Procurements

Source: Project Management Institute, a Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition,
Project Management Institute, Inc., 2013, Figure 12-2, Page358

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Plan Procurements
Project Procurement Management

• includes the processes to purchase or acquire the products, services, or


results needed from outside the project team to perform the work. this definition

is taken from the Glossary of the Project Management Institute, a Guide to the Project Management Body of
Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013'

• Project Procurement Management includes the contract management and


change control processes required to administer contracts or purchase orders
issued by authorized project team members.

• the process of documenting project purchasing decisions, specifying the


approach and identifying potential sellers.

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Plan Procurements

Contracts
The Project Procurement Management processes involve contracts:
• legal documents between a buyer and a seller.
• A contract is a legal relationship subject to remedy in the courts.
• A contract includes terms and conditions.
• Contracts can also be called an agreement, subcontract, or purchase order.

• Depending on the application area, the seller can be called a contractor, subcontractor,
vendor, service provider, or supplier.

• Depending on the buyer’s position in the project acquisition cycle, the buyer can be
called a client, customer, prime contractor, contractor, acquiring organization,
governmental agency, service requestor, or purchaser.

• The seller can be viewed during the contract life cycle first as a bidder, then as the
selected source, and then as the contracted supplier or vendor
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Plan Procurements/ Tools

Make-or-Buy Analysis
That can be used to determine whether a particular product or service can be produced by
the project team or can be purchased. Any project budget constraints are factored in the
make-or-buy decisions. If a buy decision is to be made, then a further decision of whether
to purchase or rent is also made.
Expert Judgment
• Expert technical judgment will often be required to assess the inputs to and outputs from
this process.

• Expert purchasing judgment can also be used to develop or modify the criteria that will be
used to evaluate offers or proposals made by sellers.

• Expert legal judgment may involve the services of a lawyer to assist with non-standard
procurement terms and conditions.

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Plan Procurements/ Tools
Market Research
Market research includes examination of industry and specific vendor capabilities.
Procurement teams may leverage information gained at conferences, online reviews and a
variety of sources to identify market capabilities.

The team may also refine particular procurement objectives to leverage maturing
technologies while balancing risks associated with the breadth of vendors who can provide the
materials or services desired
Meetings
Research alone may not provide specific information to formulate a procurement strategy
without additional information interchange meetings with potential bidders. By collaborating
with potential bidders, the organization

purchasing the material or service may benefit while the supplier can influence a mutually
beneficial approach or product.
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Plan Procurements/ outputs
Procurement Management Plan
How the procurement process will be managed. is based primarily on the project scope and schedule

• The types of contract to use

• The authority of the project team in the procurement process

• How the procurement process will be integrated with other project processes

• How many vendors or contractors are involved and how they'll be managed

• How the procurement process will be coordinated with other project processes

• How the constraints and assumptions might be impacted by purchasing

• How multiple vendors or contractors will be managed

• The coordination of purchasing lead times with the development of the project schedule

• The schedule dates that are determined in each contract

• Identification of prequalified sellers (if known)

• Risk management issues


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Plan Procurements/ outputs

Make-or-Buy decisions
• Document the conclusions reach regarding what project products, services, or results
will acquired from outside the project organization, or will be performed internally by
the project team.

• May include decision to require insurance policies or performance bond contracts to


address some of the identified risk.
Procurement Statement of Work
A procurement statement of work (SOW) contains the details of the procurement item in
clear, concise terms. It includes the following elements:
• The project objectives
• A description of the work of the project and any post-project operational support needed
• Concise specifications of the products or services required
• The project schedule, time period of services, and work location
The procurement SOW might be prepared by either the buyer or the seller

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Plan Procurements/ Tools
Source selection criteria
Evaluation criteria are developed and used to rate or score proposals.
objective(e.g., ―The proposed project manager needs to be a certified Project Management
Professional, PMP®‖) subjective(e.g., ―The proposed project manager needs to have
documented previous experience with similar projects‖).
Some examples:
• Understanding of need,
• Overall or life cycle cost,
• Technical capability,
• Risk,
• Management approach,
• Technical approach,
• Warranty,
• Financial capacity,
• Business size and type,
• Past performance of sellers.
• References, 50
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Plan Procurements/ outputs

Procurement Documents

Procurement documents are used to solicit vendors and suppliers to bid on your procurement
needs. You're probably familiar with some of the titles of procurement documents. They
might be called request for proposal (RFP), request for information (RFI), invitation for bid
(IFB), request for quotation (RFQ), and so on.
Change Requests
A decision that involves procuring goods, services, or resources typically requires a
change request. Other
decisions during procurement planning can also create the need for additional change
requests.
Project Documents Updates
Project documents that may be updated include, but are not limited to:
• Requirements documentation,
• Requirements traceability matrix, and
• Risk register.
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Plan Risk

Source: Project Management Institute, a Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition,
Project Management Institute, Inc., 2013, Figure 11-2, page 313

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Plan Risk

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Plan Risk

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Plan Risk

Plan Risk Management

is the process of deciding how to approach and conduct the risk management activities

for a project. How risk will be approached in the project.

The more risk that is inherent in the project, and the more important the project is to

the organization, the more resources you would typically apply to performing this

process.

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Plan Risk/ inputs
Enterprise Environmental Factors

The enterprise environmental factors that can influence the Plan Risk Management process
include, but are not limited to, risk attitudes, and tolerances that describe the degree of risk that
an organization will withstand.
Organizational Process Assets
The organizational process assets that can influence the Plan Risk Management process
include, but are not limited to:
• Risk categories,
• Common definitions of concepts and terms,
• Risk statement formats,
• Standard templates,
• Roles and responsibilities,
• Authority levels for decision making, and lessons learned.

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Plan Risk/ tools

Analytical Techniques [high-level assessment of the risk]

Expert judgment
Meeting
Project teams hold planning meetings to develop the risk management plan. Attendees:
• the project manager,
• selected project team members
• stakeholders, anyone in the organization with responsibility to manage the risk planning
and execution activities, and others, as needed.
What to discuss in that meetings:
They will plan risk management from cost, schedule and activity magnitudes,
• Risk responsibilities will be assigned,
• General risk categorization will be included,
• Probability and impact matrix will be created,
• All related templates will be generated or defined

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Plan Risk/ outputs

Risk Management Plan


The risk management plan includes the following:
• Methodology. Defines the approaches, tools, and data sources.
• Roles and responsibilities. Defines the lead, support, and assigns people to these roles,
and clarifies their responsibilities.
• Budgeting. Assigns resources and estimates costs needed .
• Timing. Defines when and how often the risk management process will be performed
throughout the project life cycle.
• Risk categories. Provides a structure that ensures a comprehensive process of
systematically identifying risk .
A risk breakdown structure (RBS) is one approach to providing such a structure

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Plan Risk/ outputs

Risk Management Plan


The risk management plan includes the following:
Definitions of risk probability and impact.
• Probability:
A relative scale representing probability values from ―very unlikely‖ to ―almost certainty‖
could be used. Alternatively, assigned numerical probabilities on a general scale (e.g., 0.1,
0.3, 0.5, 0.7, 0.9) can be used.
• Impact:
The impact scale reflects the significance of impact, either negative for threats or positive
for opportunities, on each project objective if a risk occurs.
Relative scales for impact are simply rank-ordered descriptors such as ―very low,‖ ―low,‖
―moderate,‖ ―high,‖ and ―very high,‖ reflecting increasingly extreme impacts as defined by
the organization
Numeric scales assign values to these impacts. These values may be linear (e.g., 0.1, 0.3,
0.5, 0.7, 0.9) or nonlinear (e.g., 0.05, 0.1, 0.2, 0.4, 0.8).

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Plan Risk/ outputs

Risk Management Plan


The risk management plan includes the following:
• Probability and impact matrix.

Risks are prioritized according to their potential implications for meeting the project’s

objectives. The specific combinations of probability and impact that lead to a risk being

rated as ―high,‖ ―moderate,‖ or ―low‖ importance—with the corresponding importance for

planning responses to the risk are usually set by the organization.

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Identify Risk

Risk Identification determines which risks might affect the project

and documents their characteristics. Risk Identification is an

iterative process because new risks may become known as the

project progresses through its life cycle.

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Identify Risk

Source: Project Management Institute, a Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition,
Project Management Institute, Inc., 2013, Figure 11-5, Page 319.”

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Identify Risk/tools

Information Gathering Techniques


• Brainstorming he goal of brainstorming is to obtain a comprehensive list of project risks.
• The project team usually performs brainstorming, often with a multidisciplinary set of
experts not on the team. Ideas about project risk are generated under the leadership of a
facilitator
• Delphi technique. A facilitator uses a questionnaire to solicit ideas about the important
project risks. The responses are summarized and are then recirculate to the experts for
further comment.
• The Delphi technique helps reduce bias in the data and keeps any one person from having
undue influence on the outcome.
• Interviewing. Interviewing experienced project participants, stakeholders, and subject
matter experts can identify risks. Interviews are one of the main sources of risk
identification data gathering.
• Root cause identification. It sharpens the definition of the risk and allows grouping risks by
causes.

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Identify Risk/tools

Checklist Analysis
Risk identification checklists can be developed based on historical information and knowledge
that has been accumulated from previous similar projects and from other sources of
information.

Assumptions Analysis
Assumptions analysis is a tool that explores the validity of assumptions as they apply to the
project. It identifies risks to the project from inaccuracy, inconsistency, or incompleteness
of assumptions.

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Identify Risk/tools

Diagramming Techniques

Cause and effect diagrams. These are also known as Ishikawa or fishbone diagrams and
are useful for identifying causes of risks.

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Identify Risk/outputs

Risk Register
The risk register ultimately contains the outcomes of the other risk management
processes as they are conducted.

• List of identified risks.The identified risks, including their root causes and uncertain
project assumptions, are described.

• List of potential responses.Potential responses to a risk may be identified during the


Risk Identification process.

• Root causes of risk.These are the fundamental conditions or events that may give rise
to the identified risk.

• Updated risk categories.The process of identifying risks can lead to new risk
categories being added to the list of risk categories.

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Identify Risk/ outputs

Risk Date Category Description Trigger Root


ID Registered Cause
001 01/03/2014 Mechanical Hardware defect Power off Absence of
work test

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Perform Qualitative Risk Analysis

Perform Qualitative Risk Analysis is the process of prioritizing risks for further analysis or action

by assessing and combining their probability of occurrence and impact. The key benefit of this

process is that it enables project managers to reduce the level of uncertainty and to focus on

high-priority risks
this definition is taken from the Glossary of the Project Management Institute, a Guide to the Project Management Body of
Knowledge, (PMBOK® Guide) - Fifth Edition, Project Management Institute, Inc., 2013'

Source: Project Management Institute, a Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition,
Project Management Institute, Inc., 2013, Figure 11-8, Page 328

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Perform Qualitative Risk Analysis

• Qualitative Risk Analysis means of establishing priorities for Risk Response Planning, and

lays the foundation for Quantitative Risk Analysis, if this is required.

• Qualitative Risk Analysis should be revisited during the project’s life cycle to stay current

with changes in the project risks.

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Perform Qualitative Risk Analysis / Tools

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Perform Qualitative Risk Analysis / Tools

Probability and Impact Matrix

The organization should determine which combinations of probability and impact result in a
classification of
high risk (“red condition”),
moderate risk (“yellow condition”),
and low risk (“green condition”).

• Risks can be prioritized for further quantitative analysis and response , based on their risk
rating.
• Ratings are assigned to risks based on their assessed probability and impact..

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Perform Qualitative Risk Analysis / Tools

Probability and Impact Matrix

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Perform Qualitative Risk Analysis / Tools

Probability and Impact Matrix

Impact
Source: Project Management Institute, a Guide to the Project Management Body of Knowledge, (PMBOK® Guide) - Fifth Edition,
Project Management Institute, Inc., 2013, Figure 11-10,page 331

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Perform Qualitative Risk Analysis / Tools

Risk Data Quality Assessment

Is a technique to evaluate the degree to which the data about risks is useful for risk

management. It involves examining the degree to which the risk is understood and the

accuracy, quality, reliability, and integrity of the data about the risk.

Risk Categorization

Risks to the project can be categorized by sources of risk (e.g., using the RBS), the area of the

project affected (e.g., using the WBS), or other useful category (e.g., project phase) .

Risk Urgency Assessment


Risks requiring near-term responses may be considered more urgent to address. Indicators of
priority can include time to effect a risk response, symptoms and warning signs, and the risk
rating.

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Perform Qualitative Risk Analysis / output

Project Documents Updates


Project documents that may be updated include, but are not limited to:

• Risk register updates. As new information becomes available through the qualitative risk

assessment, the risk register is updated. Updates to the risk register may include assessments

of probability and impacts for each risk, risk ranking or scores, risk urgency information or risk

categorization, and a watch list for low probability risks or risks requiring further analysis.

• Assumptions log updates. As new information becomes available through the qualitative risk

assessment, assumptions could change. The assumptions log needs to be revisited to


accommodate this new information. Assumptions may be incorporated into the project scope
statement or in a separate assumptions log

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Open Discussion

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End

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