CM 651 Project Management

CM651 – Project Management
Lecture 1
Project Management
Fundamentals
What is a project?
What is a project?
According to PMBOK a project ''is a

temporary endeavor undertaken to
create a unique product, service or
result.’’
Operational Work
Operational Works are quite opposite in
nature to Projects. Operations are
ongoing and repetitive. They involve
work that is continuous without an
ending date, and you often repeat the
same processes and produce the same
results.
Project vs. Operations
• Operations …
• are ongoing and repetitive;
• Involve work that is continuous without an ending date;
• Often repeat the same processes and produce the same results.
• Projects vs. Operations …
• Both projects and operations:
• Are performed by people
• Use limited number of resources
• Are planned, executed, and monitored
• Projects and Operations (Hand in Hand) …
• Project usually exist to support the needs of Operations.
• Operations (managers or experts) are usually major stakeholders in projects
• Projects experts often contribute to the success of the turnover stage of
projects (Sometimes projects members transit to careers in Operations later)
What is Project Management?
Project Management is the application of knowledge,

skills, tools and techniques to meet the project
requirements.
It is the responsibility of the project manager to ensure
that project management techniques are applied and
followed.
What is Program?
• What Programs are groups of
related projects that are
managed using the same
techniques in a coordinated Program
fashion. Project 1 Project 2 Project 3
• A program manager manages Coordination/

Program
the scope, budget, and Management
schedule of the program

• Projects have separate scopes,
budgets, and schedules and
may be managed by separate
project managers
What is a Portfolio?
Portfolios are collections of
programs and projects that support
a specific business goal or objective.
Note, projects and programs within Portfolio
a portfolio may not be related. Coordina
Project
Project 6 Operations
A portfolio manager Program1 5 tion/Port
folio
• analyzes the feasibility and profitability Project 3
Manage
ment
of projects in a portfolio and assures
Project 4
their alignment with business objectives
• Selects projects that contribute to Coordination
business objectives. / Program
Management
• Manages resources across projects and
programs (mainly financial resources).
• May decide not to start projects or stop
those that do not contribute to the
business objectives
Project\Program\ Portfolio Relationship
• Project governance is the activity of aligning project
objectives with strategy of higher organization
• Strategy
Definition
Portfolios Risk
Management
• Goals Opportunities
• Benefit
Programs
Project
management Project Success

• Shared Resources Resource needs
Management Synergies
Projects
• Constraints
Project, Program and Portfolio Relationship

What is a Project Management Office
• The project management office (PMO) is an

organizational body or entity assigned to oversee
the management of projects and programs
throughout the organization.
Primary Function of PMO
A Primary function of PMO is to support project managers in a
variety of ways which may include, but are not limited to:
• Managing shared resources across all the projects administered by the
PMO.
• Identifying and developing project management methodology, practices &
standards.
• Coaching, mentoring , training and oversight.
• Monitoring compliance with project management standard policies,
procedures , and templates via project audits.
• Developing and managing project policies, procedures, templates, and other
shared documentation ( organizational process assets);
• Coordinating communication across projects.
Role of a Project Manager

• The Project Manager is the person responsible for accomplishing
the project objectives.
• Project managers strive to meet to balance constraints, including

the triple constraint of project scope, time, and cost goals.
• Depending on the organization structure , a project manager may

report to functional manager.
• In other cases project manager may be one of the several project

managers who report to a portfolio or program manager that is
ultimately responsible for enterprise wide projects . In this type of
structure, the project manager works closely with the portfolio or
program manager to achieve the project objectives
The Role of Project Manager:
The Role of Project Manager:

My Boss!
My Contractors!
Evolution of Project Manager
Constraints
• One of the major changes of PMBOK ® Guide is that it no
longer mentions the triple constraint of scope, schedule
and cost.
• Instead it discusses how PMs must balance scope,
quality, schedule, budget, resources and risk.
• e.g. Constraints may include the date a milestone or the project must be
completed OR the maximum allowable risk a project may have.
• NOTE: Appendices A and B of PMBOK
The project manager
• Why do we need project managers?
• Integrator
• Manager
• Person Accountable of project success
• The ultimate project voice
Project Manager Skills

Skills every good project manager should have:
• Integration Skills
• Communication skills
• Planning and Organizational skills
• Leadership Skills
• Team Building and Motivational Skills
• Budgeting Skills
• Conflict Management Skills
• Negotiation and Influencing Skills
• Communication Skills
• Written and oral communication skills are the backbone of
all successful projects.
• Takes on many forms of communication – project documents,
meeting updates, status reports etc
• Must be explicit, clear, and complete (so that the audience has
no trouble understanding what has been communicated)

• Planning and Organizational Skills
• Must be able to record, track and locate information at a
moments notice - including memos, project reports, personnel
records, vendor /supplier quotes contracts etc.
• Organize events e.g. meetings, workshops
• Put together and manage teams, media releases
• Prioritize and manage problems, the day, time and
interruptions.
• Leadership & Management are not synonymous
• Leaders impart vision, gain consensus for strategic goals,
establish direction, inspire and motivate others.
• Managers focus on results and are concerned with getting the
job done according to requirements.
• PMs need to exhibit both

• Leadership & Management are not synonymous
• Leaders impart vision, gain consensus for strategic goals,
establish direction, inspire and motivate others.
• Managers focus on results and are concerned with getting the
job done according to requirements.
• PMs need to exhibit both
• Team Building and Motivational Skills
• PMs rely heavily on their team
• The team members may or may not have worked together
• The PM must set the tone and help them through different
team forming –stages
• Help the team to become fully functional
• Many times PMs are responsible for motivating persons who
do not report to them directly (Functional organization)

• Budgeting Skills
• Establish and manage budgets and therefore need some
knowledge of finance and accounting principles
• Need to perform cost estimates for budgeting
• To be able to read and understand vendor quotes, preparing
or overseeing purchase orders, reconciling invoices
• Linking project costs back to project activities and expense
items
• Conflict Management Skills (or Problem-solving Skills)
• This is a Two-fold process
• Define the problem by separating the causes from the
symptoms
• Ask questions – is it external or internally based? A technical
problem? Inter-personal? Managerial? What are potential
impacts or consequences?
• Examine and analyze the situation causing the problem and
alternatives available
• The PM must make a decision – determine the best course of
action and implement the decision (not too late though).

• Negotiation and Influencing Skills
• To be effective at problem solving – requires negotiating and
influencing skills
• Negotiating is working with others to come to an agreement
i.e. One-on-one or in teams
• Required in almost every area of the project – budgets,
contacts, resource assignments, scope definition
• Influencing is convincing the other party that one thing is
better than another
• Required that you understand the formal and informal
structure of all organizations involved.
• Power and Politics -techniques used to influence people to
perform
• Power and Politics
• Power –the ability to get people to do things that they
wouldn’t do otherwise. The ability to change minds and the
course of events and to influence outcomes.
• Politics –involves getting groups of people with different
interest to cooperate creatively even in the midst of conflict
and disorder.
(Kim Heldman pg. 10)

and disorder.
and disorder.

Project Managers are generalists with many skills in their
repertoire. They might possess technical skills, but
technical skills is not a pre-requisite for sound project
management skills.
The project team is the group of people on whom the

PM will rely for technical details.
ORGANIZATIONAL INFLUENCES AND PROJECT
LIFE CYCLE
Organizational Structure
• Just as projects are unique, so are the
organizations in which they’re carried out.
Organizations have their own styles and
cultures that influence how project work is
performed.
• One of the keys to determining the type of organization

you work in is measuring how much authority senior
management is willing to delegate to project managers
Organizational Structure
• Just as projects are unique, so are the
organizations in which they’re carried out.
Organizations have their own styles and
cultures that influence how project work is
performed.
• One of the keys to determining the type of organization

you work in is measuring how much authority senior
management is willing to delegate to project managers
Types of Organisational Structure

Although uniqueness abounds in business
cultures, all organizations are structured in one of
three ways:
1. Functional
2. Projectized
3. Matrix
1. Functional Organization
• Functional organizations are centered on specialties and

grouped by function, which is why it’s called functional
organization. As an example, the organization might have
a human resources department, finance department,
marketing department, and so on.
Functional Organization Structure

2. Projectized Organizations
Organizational resources are dedicated to projects and
project work in purely projectized organizations.
Project managers almost always have ultimate authority
over the project.
Projectized Organizational Structure

3. Matrix Organizations
This form is an attempt to maximize the strengths of both
the functional and projectized forms. Team members
report to two bosses, the project manager and functional
manager.
Communication goes from team member to both bosses.
Team member do project work in addition to normal
departmental work.
Matrix Organizations
Weak Matrix Balanced Matrix Strong Matrix
PM’s Title Project Coordinator, Project Manager Project Manager
leader or Expeditor
PM’s Focus Split focus between Projects and Project Projects and Project
project and functional work work
PM’s Power Minimal authority or Balance of authority Full authority and

power and power power
PM’s Time Part-time on projects Full-time on projects Full-time on projects
Org. Style Most like a functional Blend of both weak Most like a projectized
org and strong matrix org
PM Reports to Functional Manager A functional manager, Manager of project
but shares authority managers
and power
Enterprise Environmental Factors

• Refer to both internal & external environmental factors that surround or
influence a project’s success.
• As an input in almost all project management process.
• May enhance or constrain project management options.
• May have positive or negative influence on the outcome.
• Examples:
✓ Organizational culture, structure, and processes
✓ Government or industry standards
✓ Infrastructure
✓ Existing human resources
✓ Personnel administration
✓ Company work authorization systems
✓ Marketplace conditions
✓ Stakeholder risk tolerances
✓ Political climate
✓ Organization’s established communications channels
✓ Commercial databases
✓ Project management information
Project Expediter and Coordinator
• Project Expediter- The project expediter acts primarily as
a staff assistant and communications coordinator. The
expediter cannot personally make or enforce decisions.
• Project Coordinator- This position is similar to the
project expediter except the coordinator has some
power to make decisions, have some amount of
authority and reports to a higher- level manager.
Who are Project Stakeholders

• Stakeholders are persons or organizations who are actively
involved in the project or whose interests may positively or
negatively be affected by the performance or completion of the
project.
• Stakeholders have varying levels of responsibility and authority

and can change over the project life cycle.
• Project management team must continuously identify both

external and internal stakeholders.
• Project manager must manage the influence of various

stakeholders in relation to the requirements and balance
stakeholders’ interest.
Stakeholders
• Some examples of project stakeholders
Level of cost resource use during

project life cycle
Single-Phase project life cycle:
the simplest life cycle.
Examples of single-phase project:

• Feasibility study project
• Writing a book
Example of a project with two overlapping phases

• Developing-Testing
Multi-phase projects
• Project may consist of one or more phases. The phases
of a project are often performed sequentially, but there
are situations where performing phases concurrently, or
overlapping the start date of a sequential phase, can
benefit the project
Projects life cycles range from the perfectly planned (or
plan oriented or predicted), to the totally agile (Change
oriented)
Types of Life cycles
• Sequential relationships (Plan oriented or predictive)
• One phase must finish before the next phase can begin.
• Overlapping relationships
• A variation of the sequential where one phase starts before
the prior phase completes.
• Iterative relationships
• Work for subsequent phases are planned as the work of the
previous phase is performed
Understanding Project Life Cycles Types
and characteristics
• Sequential or predictive.
Understanding Project Life Cycles

Types and characteristics
• Iterative and incremental life cycle
PROJECT MANAGEMENT PROCESSES
Understanding Project Management

process
Planning processes
Performances data serve to produce the
collected during the project plan )reference
monitoring and control for all the work to be
processes serve to adjust Modification done). Planning
happens during all
the plan and\or suggest Request
project life cycle. It helps
corrective actions. keeping the plan up-
Monitoring and control dated and consistent
processes are concurrent
to all other processes
Project
Performance data
(Project monitoring
plan
measurements and
quality control Execution processes get
measures) the work done as planned.
It generates deliverables
and information about the
project performance (time,
cost, quality,
communication
efficiency…)
Common Project Management Process
Interactions
Project Management Process Groups

Process
Exploring the Project Management

Knowledge Areas
• Project Integration Management
• Concerned with coordinating all aspects of the project plan and is
highly interactive. This Knowledge Area involves identifying and
defining the work of the project and combining, unifying, and
integrating the appropriate processes.
• Project Scope Management
• Concerned with defining all the work of the project and only the
work needed to successfully produce the project goals.
• Project Scope Management encompasses both product scope and
project scope.
• Product scope concerns the characteristics of the product, service, or result
of the project.
• Project scope involves managing the work of the project and only the work
of the project.
Knowledge Areas
• Project Time Management
• Concerned with estimating the duration of the project plan
activities, devising a project schedule, and monitoring and
controlling deviations from the schedule.
• Project Cost Management
• Establishes cost estimates for resources, establish budgets, and keep
watch over those costs to ensure that the project stays within the
approved budget.
• Project Quality Management
• Assures that the project meets the requirements that it was
undertaken to produce.
• Focuses on product quality as well as on the quality of the project
management process used during the project.

Knowledge Areas
• Project Time Management
• Concerned with estimating the duration of the project plan
activities, devising a project schedule, and monitoring and
controlling deviations from the schedule.
• Project Cost Management
• Establishes cost estimates for resources, establish budgets, and keep
watch over those costs to ensure that the project stays within the
approved budget.
• Project Quality Management
• Assures that the project meets the requirements that it was
undertaken to produce.
• Focuses on product quality as well as on the quality of the project
management process used during the project.
Knowledge Areas
• Project Human Resource Management
• Includes the processes that organize, manage, and lead the
project team..
• Project Communication Management
• includes the processes that are required to ensure timely and
appropriate planning, collection, creation, distribution,
storage, retrieval, management, control, monitoring, and the
ultimate disposition of project information..

Knowledge Areas
• Project Risk Management
• Concerned with identifying, analyzing, and planning for
potential risks, both positive and negative, that might impact
the project.
• Project Procurement Management
• Processes involved with purchasing goods or services from
vendors, contractors, suppliers, and others outside the project
team.
• Project Stakeholder Management
• Seeks to ensure the identification, management, and control of
all required stakeholders.
Lecture 2
Project Integration Management
Integration management
is an element of project
management that
coordinates all aspects of
a project.
The Key to Overall Project Success:
Good Project Integration Management
• Project managers must coordinate all of the other

knowledge areas throughout a project’s life cycle.
• Many new project managers have trouble looking at the

“big picture” and want to focus on too many details.
Monitoring &
Controlling Processes
Planning
Processes
Enter phase/ Initiating Closing Exit phase/

Start project Processes Processes End project
Executing
Processes
Process Groups
Knowledge Area
Initiating Planning Executing Monitoring & Control Closing
Monitor & Control

Project Work
Integration Develop Project Develop Project Direct & Manage Close Project
Management Charter Management Plan Project Work or Phase
Perform Integrated
Change Control
Processes:
• Develop Project Charter: Work with stakeholders to
create the document that formally authorizes a
project—the charter.
• Develop the project management plan: Coordinate all

planning efforts to create a consistent, coherent
document—the project management plan.
• Direct and manage project execution: Carry out the

project management plan by performing the activities
included in it.

Processes (cont’d)
• Monitor and Control Project Work: Oversee project
work to meet the performance objectives of the
project.
• Perform Integrated Change Control: Coordinate

changes that affect the project’s deliverables and
organizational process assets.
• Close project\ phase: Finalize all project activities to

formally close the project.
How do Projects come about:
• As a result of Needs and Demands, namely:
✓Market demand
✓Customer Request
✓Strategic opportunity/business need
✓Technological advance
✓Legal requirement
✓Ecological impacts
✓Social need
✓Organizational need
Strategic Planning and Project

Selection
• Strategic planning involves determining long-term objectives,
predicting future trends, and projecting the need for new
products and services.
• Organizations often perform a SWOT analysis:
• Strengths, Weaknesses, Opportunities, and Threats
• As part of strategic planning, organizations should:
• Identify potential projects.
• Use realistic methods to select which projects to work on.
• Formalize project initiation by issuing a project charter.
Project Selection Methods
There are many ways to select a project to be initiated

from among many possible projects.
Project selection methods measure the value of what the

product, service, or result of the project will produce and
how it will benefit the organization.
Project Selection Methods
There are generally two categories of

selection methods:
• Benefit Measurement Methods (Comparative

approach).
• Constrained Optimization Methods (Mathematical

models).
Benefit Measurement Method
• Murder Board - A panel of people who try to shoot down
a new project idea.
• Peer Review
• Economic Models
• Present Value
• Net Present Value
• Internal Rate of Return
• Payback Period
• Benefit Cost Ratio
Constrained Optimization Method

• Linear Programming
• Integer Programming
• Dynamic Programming
• Multi-objective Programming
Net Present Value
• Net present value (NPV) analysis is a method of
calculating the expected net monetary gain or loss from
a project by discounting all expected future cash inflows
and outflows to the present point in time.
Note:
• Projects with a positive NPV should be considered if
financial value is a key criterion.
• The higher the NPV, the better.
Internal Rate of Return

• The internal rate of return (IRR) is the most difficult
equation to calculate of all the cash flow techniques.
• It is a complicated formula and should be performed on a

financial calculator or computer.
• Technically speaking, IRR is the discount rate when the

present value of the cash inflows equals the original
investment.
Payback Period
• The payback analysis/payback period is another
important financial consideration.
• The payback period is the amount of time (number of

time periods) it will take to recoup your investment in
the project before you start accumulating profit.
• Many organizations want IT projects to have a fairly short

payback period.
Project Selection – Economic Models

Method MAIN POINT
Present value (PV): value today of future cash flows
Net present value greater NPV value is better

(NPV):
Internal rate of greater IRR value is better
return (IRR):
Payback Period time periods it takes to recoup your investment
SHORTER Payback Period THE BETTER
Benefit-cost ratio ABOVE 1; greater benefit-cost ratio value is better.
Weighted Scoring Model
• A weighted scoring model is a tool that provides a
systematic process for selecting projects based on many
criteria.
• Steps in identifying a weighted scoring model:
1. Identify criteria important to the project selection process.
2. Assign weights (percentages) to each criterion so they add up to 100
percent.
3. Assign scores to each criterion for each project.
4. Multiply the scores by the weights to get the total weighted scores
• The higher the weighted score, the better.
Sample Weighted Scoring Model for

Project Selection
Project Selection – Key Terms
• Economic Value Added (EVA): concerned with whether the
project returns to the company more value than it costs.
• Opportunity Cost: the opportunity given up by selecting one

project over another.
• Sunk Costs: Are expended costs, should not be considered

when deciding whether to continue with a troubled project.
• Law of Diminishing Returns: after a certain point, adding

more input/resource will not produce a proportional increase
in productivity.
Why have a Project Charter

• It formally recognizes (authorize) the existence of the
project, without it a project does not exist.
• It gives the project manager authority to spend money

and commit corporate resources.
• It provides high level requirements for the project. The

project charter is broad enough so it does not need to
change as the project changes.
Develop Project Charter
• Projects are authorized by someone external to the
project such as sponsor, initiator, portfolio steering
committee.
• The project charter can be created by them or delegated

to Project Manager.
Develop Project Charter

• The process of developing a document that formally
authorizes a project or phase, and documenting initial
requirements that satisfy the stakeholders’ needs and
expectations.
Figure 4-2. Develop Project Charter: Inputs, Tools

and Techniques, and Outputs
Develop Project Charter: Inputs
• Statement of Work (SOW)

A narrative description of products or services to be delivered by
the project. The SOW references:
Business need
Product scope description
Strategic plan
• Business case
Provide the necessary information from business standpoint to
determine whether or not the project is worth the required
investment.
Develop Project Charter: Inputs Cont’d

• Agreements
Agreements are used to define initial intentions for a project. Agreements may
take the form of contracts, memorandums of understanding (MOUs), service
level agreements (SLA), letter of agreements, letters of intent, verbal
agreements, email, or other written agreements. Typically, a contract is used
when a project is being performed for an external customer.
• Enterprise Environmental Factors
• Organizational Process Assets
Develop Project Charter: Tools and Techniques
• Expert Judgment
Expert judgment is often used to assess the inputs used to develop the
project charter. Expert judgment is applied to all technical and
management details during this process. Such expertise is provided by
any group or individual with specialized knowledge or training and is
available from many sources, including:
• Other units within the organization,
• Consultants,
• Stakeholders, including customers or sponsors,
• Professional and technical associations,
• Industry groups,
• Subject matter experts (SME), and
• Project management office (PMO).
• Facilitation Techniques
Facilitation techniques have broad application within project
management processes and guide the development of the
project charter. Brainstorming, conflict resolution, problem
solving, and meeting management are examples of key
techniques used by facilitators to help teams and individuals
accomplish project activities.
Develop Project Charter: Outputs cont’d
The project charter documents :
• Project purpose or justification

• Measurable project objectives and related success criteria
• High-level requirements
• High-level project description
• High-level risks
• Summary milestone schedule
• Summary budget
• Project approval requirements
• Assigned project manager, responsibility and authority level
• Name and authority of the sponsor or other person(s) authorizing the
project charter
Develop Project Management Plan
• The Develop Project Management Plan process includes
the actions necessary to define, integrate, and
coordinate all subsidiary plans into a project
management plan.
• The Develop Project Management Plan process brings all

these subsidiary plans together, along with the outputs
of the Planning group processes, into one document
called the project management plan.
• The project management plan defines how the project is

executed, monitored and controlled, and closed.
Develop Project Management Plan
• The process of documenting the actions necessary to
define, prepare, integrate and coordinate all subsidiary
plans.
Develop Project Management Plan:

Inputs
• Project Charter
• Outputs from Planning Processes
Outputs from many of the planning processes described in chapter 5

through 12 are integrated to create the project management plan.
Any baselines and subsidiary management plans that are an output

from the other planning processes are inputs to this process.
In addition, updates to these documents can necessitate updates to

the project management plan.
Tools and Techniques
• Expert Judgment
• When developing the project management plan, expert
judgment is utilized to:
• Tailor the process to meet the project needs,
• Develop technical and management details to be included in the
project management plan,
• Determine resources and skill levels needed to perform project
work,
• Define the level of configuration management to apply on the
project,
• Determine which project documents will be subject to the formal
change control process, and
• Prioritize the work on the project to ensure the project resources are
allocated to the appropriate work at the appropriate time.
• Facilitation Techniques

Output
The project management plan can be either summary level or
detailed, and is composed of subsidiary plans and other
components. A Project Management Plan includes:
• Subsidiary Management Plans
• Project Charter
• Scope Statement
• Schedule baseline
• Cost baseline
• Quality baseline
• Risk register
• Responsibility charts/assignments
• Milestone list
• Resource calendar
Project Baseline
Project baseline refers to the original version of the project

management plan. Once the project management plan is
base-lined, it may only be changed by raising a change
request.
Baseline (Performance measurement

baseline)
• The project management plan contains scope, schedule, and cost baselines,
against which the project manager will need to report project performance.
• Baseline created during planning.

✓ Scope baseline
The project scope statement, work breakdown structure (WBS), and WBS
dictionary.
✓ Schedule baseline
The agreed-upon schedule, including the start and stop times.
✓ Cost baseline
The time-phased cost budget.
• Deviations from baselines are often due to incomplete risk identification and
risk management.
Terms
• Progressive Elaboration - involves the process of taking a

project from concept to detailed design.
• Kick-off meeting - happens after the planning phase and

before the project execution. It is typically used to
communicate responsibilities of key stakeholders
Project Execution
• During project execution the project team focuses on
completing the tasks assigned.
• The Sponsor protects the project from changes and loss of
resources.
• The Project Manager integrates all the pieces into the project
as a whole.
• Project execution involves managing and performing the
work described in the project management plan.
• The majority of time and money is usually spent on execution.
• The products of the project are produced during project
execution.
Direct & Manage Project Work
• This is the process for performing the work defined in the project
management plan to achieve the project’s objectives
Figure 4-6. Direct and Manage Project Work:

Inputs, Tools and Techniques, and Outputs
Direct and Manage Project Work: Inputs
• Project Management Plan

• Approved Change Requests
• Enterprise Environmental Factors
• Organizational Process Assets
Project Execution: Tools and Techniques
• Project Management Information systems:

Project Management Information System (PMIS) is a
system that keeps track of status of all the project tasks.
It is used to track the status of the project.
Using Software to Assist in Project

Integration Management
• Several types of software can be used to assist in project
integration management:
• Word processing software creates documents.
• Presentation software creates presentations.
• Spreadsheets or databases perform tracking.
• Communication software such as e-mail and Web authoring
tools facilitate communications.
• Project management software can pull everything together and
show detailed and summarized information. The exam does not focus on
any specific system (for example Microsoft Project ).
Change Requests
• When a change request is received, the following steps
must be taken (in this order):
• Evaluate (assess) the impact of change to the project
• Create alternatives including cutting other tasks, crashing, fast-
tracking etc.
• Meet with management, sponsors etc.
• Meet with the customer if necessary
Monitoring and Controlling Project Work
• Changes are inevitable on most projects, so it’s

important to develop and follow a process to monitor
and control changes.
• Monitoring project work includes collecting, measuring,
and disseminating performance information.
• Outputs of monitoring and controlling project work
include Change Requests, Project management plan
updates and project document updates.
Monitor & Control Project Work
This process includes tracking, reviewing and regulating
the progress to meet the performance objectives
defined in the project management plan.
Figure 4-8. Monitor and Control Project Work:

Inputs, Tools & Techniques, and Outputs
Monitor & Control Project Work: Input

• Performance Reports : Reports should be prepared by
the project team detailing activities , accomplishments
,milestones ,identified issues and problems .
Performance reports can be used to report the key
information , but not limited to :
• Current status
• Significant accomplishments for the period
• Scheduled activities
• Forecasts
• Issues
Monitor and Control Project Work:
• Expert Judgment
• Analytical Techniques
• Regression analysis,
• Grouping methods,
• Causal analysis,
• Root cause analysis,
• Forecasting methods (e.g., time series, scenario building, simulation, etc.),
• Failure mode and effect analysis (FMEA),
• Fault tree analysis (FTA),
• Reserve analysis,
• Trend analysis,
• Earned value management, and
• Variance analysis.
• Project Management Information System
• Meetings
Monitor and Control Project Work: Outputs
• Change Requests
• Corrective action—An intentional activity that realigns the
performance of the project work with the project management
plan;
• Preventive action—An intentional activity that ensures the
future performance of the project work is aligned with the
project management plan; and
• Defect repair—An intentional activity to modify a
nonconforming product or product component
• Work Performance Reports
• Project Management Plan Updates
• Project Documents Updates
Perform Integrated Change Control
The process of reviewing all change requests, approving

changes, and managing changes to the deliverables,
organizational process assets, project documents and the
project management plan.

• The integrated change control process is a control
function that is done from project initiating through
project closing.
• This is where all the recommendations for changes,

corrective actions, preventive actions and defect repairs
are evaluated across all the knowledge areas and either
approved or rejected.
• Changes to any part of the project management plan or

the product of the project are handled in the integrated
change control process.
Figure 4-10. Perform Integrated Change Control:

PMIS
Configuration
Management System
Change Control System
Defines how you will manage changes to the deliverables and the resulting
documentation, including which organizational tools you will use.
Configuration Management
• Ensures that the descriptions of the project’s products
are correct and complete.
• Involves identifying and controlling the functional and
physical design characteristics of products and their
support documentation.
• Configuration management specialists identify and
document configuration requirements, control changes,
record and report changes, and audit the products to
verify conformance to requirements.
Change Control System
A formal, documented process that describes when and

how official project documents and work may be
changed.
Describes who is authorized to make changes and how to

make them.
Change Control Board
• A formal group of people responsible for approving or
rejecting changes on a project.
• CCBs include stakeholders from the entire organization.
• After the project scope has been baselined, each

requested change must go through a change control
review process.
Change Management Plan

• Describes how changes will be managed and
controlled.
• Covers for the project as whole.
• May include:
- Change control procedures (how and who)
- The approval levels for authorizing changes
- The creation of a change control board to approve changes.
- A plan outlining how changes will be managed and controlled.
- Who should attend meetings regarding changes.
- Tools to use to track and control changes
Each knowledge area are described in the individual

management plans
Close Project or Phase
Projects come to an end for several reasons:
• They’re completed successfully.
• They’re canceled or killed prior to completion.
• They evolve into ongoing operations and no longer exist as
projects.
There are four formal types of project endings you might

need to know for the exam:
• Addition
• Starvation
• Integration
• Extinction

Projects come to an end for several reasons:
• They’re completed successfully.
• They’re canceled or killed prior to completion.
• They evolve into ongoing operations and no longer exist as
projects.
There are four formal types of project endings you might

need to know for the exam:
• Addition
• Starvation
• Integration
• Extinction
• Addition- Projects that evolve into ongoing operations
are considered projects that end due to addition; in
other words, they become their own ongoing business
unit.
• Starvation- When resources are cut off from the project

or are no longer provided to the project, it’s starved prior
to completing all the
requirements and you’re left with an unfinished project
on your hands.

• Integration- Integration occurs when the resources of
the project—people, equipment, property, and
supplies— are distributed to other areas in the
organization or are assigned to other projects.
• Extinction- This is the best kind of project end because

extinction means the project has been completed and
accepted by the stakeholders. As such, it no longer exists
because it had a definite ending date, the goals of the
project were achieved, and the project was closed out.
Close Project
• The Close Project or Phase is the process of formal
completion of all project related activities.
Lessons Learned
At the end of each phase of a project, a lessons

learned document must be prepared. The lessons
learned document defines what was done right,
wrong etc. It is required to be completed in order
for the project to be completed.
Also called “Post – Mortem”

Lecture 3
Law of Project Management

• Always document your
requirements.
• A verbal agreement isn’t worth
the paper it’s written on.
Project Scope Management
• Processes required to ensure that project includes all the
work required, and only the work required, to complete
the project.
• Managing a project scope is primarily concerned with
defining and controlling what is and is not included in the
project.
• Scope management defines how the deliverables of
project will be verified and accepted.
• Develop project management plan, under integration
produces the scope management plan which will define
how the scope shall be defined, verified and controlled.
Project Scope Management

• What are the work required?
• How to define and control?
• How can I verify acceptance of
the deliverable?
• How to integrate the scope in the
PMP?
Scope management means:
• Not letting people randomly add to the scope without a

structured change control system.
• Making sure all changes fit within the project charter.
• Preventing extra work or “gold plating”.
• Uncontrolled scope is called scope creep.
In the project context the term scope

may refer to:
• Product scope : the features and functions that are to be
included in a product or service. Completion of product scope
is measured against requirements.
• Project scope : The work that must be done in order to

deliver a product with the specified features and functions.
Completion of project scope is measured against the project
management plan.
Both types of scope management must be well integrated to

ensure the work of the project will result in the delivery of
the specified product.
In the project context the term scope
may refer to:
Product scope : the features and functions that are to be included
in a product or service. Completion of product scope is measured
against requirements.
Project scope : The work that must be done in order to deliver a

product with the specified features and functions. Completion of
project scope is measured against the project management plan.
Both types of scope management must be well integrated to ensure

the work of the project will result in the delivery of the specified
product.
Project scope, Product scope & Requirements

Example: Lets say you have a plot of land and you
want to build a house on it.
Product: The House
Product Scope: The house should have 2 storey's,

1000 sq. m of built up area, 6 bedrooms with
attached baths, 2 living room, a kitchen, basement
and a garage. The exteriors should be white &
beige.
Project Scope: Hiring a building contractor, an

architect and an interior designer, acquiring legal
permits, estimating the cost, taking bank loan,
planning for risks such as rains and storms,
designing the house, buying building materials, etc.
Monitoring &
Planning
Processes

Executing
Processes
Process Groups
Knowledge Area Monitoring &
Initiating Planning Executing Closing
Control
Plan Scope Management
Scope Collect Requirements Validate Scope
Management Define Scope Control Scope
Create W.B.S.
Project Scope Management Processes

Plan Scope Management—The process of creating a scope
management plan that documents how the project scope will be
defined, validated, and controlled.
Collect Requirements : the process of defining and documenting
stakeholder’s needs to meet the project objectives
Define Scope : the process of developing a detailed description of
the project and the product.
Create WBS: the process of subdividing the project deliverables
and the project work into smaller, more manageable components
Verify Scope : the process of formalizing acceptance of the
completed project deliverables
Control Scope : the process of monitoring the status of the project
and product scope and managing changes to the scope baseline.
Project Scope Management Plan
The project scope management plan should
contain the following:
The process you’ll use to prepare the project
scope statement.
A process for creating the work breakdown
structure (WBS).
A definition of how the deliverables will be
verified for accuracy and the process used for
accepting deliverables.
A description of the process for controlling
scope change requests, including the
procedure for requesting changes and how to
obtain a change request form.
5.1 Plan Scope Management
Figure 5-2. Plan Scope Management:

Inputs:
Project Management Plan
Approved subsidiary plans of the PMP are used to create the scope
management plan and influence the approach taken for planning scope and
managing project scope.
Project Charter
The project charter is used to provide the project context needed to plan the
scope management processes. It provides the high-level project description
and product characteristics from the project statement of work.
Enterprise Environmental Factors
The enterprise environmental factors that can influence the Plan Scope
Management process
Organizational Process Assets
The organizational process assets that can influence the Plan
Scope Management process
Tools & Techniques:
Expert Judgment
refers to input received from knowledgeable and experienced parties.
Meetings
Project teams may attend project meetings to develop the scope
management plan.
Output:
Scope Management Plan
a component of the project or program management plan that
describes how the scope will be defined, developed, monitored,
controlled, and verified.
The scope management plan is a major input into the Develop Project
Management Plan process, and the other scope management
processes.
5.2 Collect Requirements
Collect Requirements is the process of defining and documenting
stakeholders needs to meet the project objectives.
Figure 5-4. Collect Requirements:

Collect Requirements
Collect requirements is the process of defining and
documenting stakeholders’ needs to meet the project objectives
These requirements need to be elicited , analyzed, and
recorded in enough detail to be measured once project
execution begins .
Requirements become the foundation of the WBS. Cost ,
Schedule, and quality planning are all built upon these
requirements
The development of requirements begins with an analysis of the
information contained in the project charter and the
stakeholder register .
Collect Requirements – Tools & Techniques
Group Creativity Techniques : Group creativity involves

several techniques, like brainstorming,
nominal group technique, the delphi technique, and affinity
diagrams.
Brainstorming: a technique used to generate and collect

multiple ideas related to the project and product requirements.
Group Creativity Techniques :

Nominal Group Technique : enhances brainstorming with a
voting process used to rank the most useful ideas for further
brainstorming or prioritization (Brainstorming + Voting)

The Delphi Technique is an anonymous method to query
experts. Delphi technique uses an experienced Facilitator.
The responses are only available to the facilitator.
Participants can express ideas or opinions without fear or being
intimidated.
Idea/mind mapping : ideas created through individual

brainstorming are consolidated into a single map to reflect
commonality and differences in understanding , generate new
ideas (Brainstorming +Map).
Affinity Diagram : this technique allows large number of ideas

to be sorted into groups for review and analysis
Collect Requirements – Tools &
Techniques
Group Decision Making Techniques : there are multiple
methods of reaching a group decision :
Unanimity :everyone agrees on a single course of action
Majority : support from more than 50% of the members of the
group.
Plurality : the largest block in a group decides even if a
majority is not achieved.
Dictatorship : one individual makes the decision for the group
Prototypes :
Prototyping is a technique involving constructing a working
model or mock-up of the final product for participants to
experiment with. The prototype does not usually contain all the
functionality the end product does, but it gives participants
enough information that they can provide feedback regarding
the mock-up. This is an iterative process where participants
experiment and provide feedback and the prototype is revised
and the cycle starts again
Balance Stakeholder’s Requirement
There is a need to balance stakeholder’s requirement.
Some issue are so complex they cannot be resolved by PM alone.
Facilitate the resolution of competing requirement, consider:
1. business case,
2. project charter,
3. project scope statement,
4. project constraints
What you can do:
Conflict resolution, team building, meeting, problem solving skills, escalation, approval
from stakeholder.
Stakeholder request to do or add something that is not related to the reason of project
created should be rejected!
Collect Requirements: Outputs

Requirements Documentation
As mentioned earlier, requirements quantify and prioritize the
wants, needs, and expectations of the project sponsor and
stakeholders. Requirements typically start out high-level and
are progressively elaborated as the project progresses. You
must be able to track, measure, test, and trace the
requirements of the project. If you can’t measure or test whether
the requirement satisfies the business need of the project, the
definition of success is left to the subjective opinions of the
stakeholders and team members.
Requirements Documentation
The requirements document may include the following elements:
Business need for the project and why it was undertaken
Objectives of the project and the business objectives the
project hopes to fulfill
Functional requirements and Nonfunctional requirements
Quality requirements
Acceptance criteria
Business rules
Organizational areas and outside entities impacted
Support and training requirements
Assumptions and constraints
Requirements Traceability Matrix

It is a matrix that links requirements to their origin and traces
them throughout the project life cycle .It helps to ensure that
requirements approved in the requirements documentation are
delivered at the end of the project. It can include:
Unique identifier
Textual description
Rationale
Owner source
Status
Date Completed
Requirements Traceability Matrix
5.3 Define Scope

This is the process of developing a detailed
description of the project and product
Figure 5-7. Define Scope: Inputs, Tools & Techniques, and Outputs
5.3 Define Scope
Scope is collectively the product, service, or result of the
project.
Now that you’ve documented the project requirements, you’re
ready to further define the needs of the project in the Define
Scope process. The project scope statement (an output of this
process) is what you’ll use to develop and document a detailed
description of the deliverables of the project and the work
needed to produce them. This process is progressively
elaborated as more detail becomes known.
Define Scope – Tools and Techniques

1. Product Analysis
The purpose of product analysis is to analyze the objectives stated
by the customer or sponsor and turn them into real requirements.
(Product breakdown, systems analysis, value engineering,
requirements analysis and value analysis).
2.Alternative Identification
Identifying alternatives is a technique used to generate different
approaches to execute and perform the work of the project.
✓Brainstorming
✓Lateral Thinking
✓Pair wise comparison
Lateral Thinking
• Lateral thinking is a form of alternatives
identification that can be used to help define
scope.
• The simplest definition is that it’s thinking
outside the box.
Lateral Thinking
thinking outside the box

Lateral Thinking
thinking outside the box
Lateral Thinking Example

Question: How could your pet Yorkie fall from the window of an
18-story building and live?
Answer: The question asks how your pet could fall from an 18-
story building and live; however, the question doesn’t state that
your pet fell from the 18th floor. So, your pet Yorkie fell from the
basement-level window.
Define Scope - Outputs
Project Scope Statement
Project scope statements describes, in detail (remember SOW),
project deliverables and work required to create these
deliverables.
It helps to create a common understanding among stakeholders
(avoid scope creep)
Project team can perform detailed planning now
Project Scope Statement

The project scope statement contains the following:
Project objectives
Project scope descriptions
Project requirements
Project exclusions
Project deliverables
Project acceptance criteria
Project constraints & assumptions
WBS Presentation
What did you learn from the exercise?
What is the importance of WBS?
What tools did you use to create the WBS?
Does your WBS level justify the overall scope of the project?
5.4 Create WBS
100% rule: WBS includes 100% of the work defined by project scope and capture ALL
deliverables (external, internal, interim) in term of work to be completed including
project management.
Create WBS
How to produce?
What is Work Breakdown Structure
(WBS)?
The PMBOK Guide describes a WBS as “a deliverable-oriented
hierarchical decomposition of the work to be executed by the
project team, to accomplish the project objectives and create the
required deliverables…the WBS defines the total scope of the
project.”
Work that doesn’t fit into the WBS does not fit within the project.
Projects are normally too big to manage and WBS breaks the
project works into smaller more manageable components
arranged according to deliverables.
This is a top down effort, break works down from top to bottom.
Create WBS
Each level of WBS is a smaller piece of the level above.
The top most level of each WBS is the total project itself.
Work is broken down to the lowest level possible till further
division is logically not possible or the work can be confidently
estimated and scheduled.
WBS represents total work specified in the current approved
scope statement and shall be revised if a major scope change
occurs.
Create WBS
• Work package: lowest level WBS component which can be
scheduled, cost estimated, monitored and controlled.
WBS Structure can be organized by

- Phases
- Major deliverables
- Subprojects e.g. contracted work.
Beware of excessive decomposition. It can lead to non-

productive management effort, inefficient use of resources
(performing work)
Deliverable
Underlying concept of deliverable is the core of a WBS
Any Unique and verifiable product, result, or capability to
perform a service that must be produced to complete a process,
phase, or project.
Subject to approval by the project sponsor or customer
Benefits of WBS
Better communication to project sponsors, stakeholders and
team members
More accurate estimation of tasks, risks, timelines and cost
Increased confidence that 100% of the work is identified and
included
A foundation for the control processes within the project
What are the Impacts of Poor WBS?

Incomplete project definition leading to ongoing project
extensions
Unclear work assignments, goals, objectives or deliverables
Scope creep or unmanageable, frequently changing scope
Budget overrun
Missed deadlines on scheduled deliverables, or timeline
slippage
Unusable new product or feature
Failure to deliver on some elements of project scope
Control Accounts
Unique identifiers are normally taken from the organization’s
code of accounts to track cost by category.
Each item in WBS need to be estimated, resourced, budgeted
and controlled. If management need to measure
Performance (budget & time), WBS shall be linked to
accounting system.
Normally control account is placed in WBS for this purpose.
Control account is placed above work package level in WBS
Each control account may have more than one work package
but one work package shall only be linked to one control
account.
100% Rule
If the lowest levels are rolled up to the higher levels, the total
must represents the total work of the project. This is called
100% rule.
This ensures that no work is left out or no extra work is added.
The WBS includes the 100% of the work defined by the project
scope and captures ALL deliverables-internal, external and
interim- in terms of work to be completed including project
management
Develop WBS: Tool & Technique
Decomposition
This technique involves breaking down the deliverables into
smaller, more manageable components of work.
The idea here is to break down the deliverables to a point
where you can easily plan, execute, monitor and control, and
close out the project deliverables.
Each level of WBS is a more detailed definition of the level
above it.
WBS for a Bicycle
WBS Dictionary
In order to more clearly define the work necessary for project completion the WBS Dictionary is
used. The WBS Dictionary includes but not limited to the following: level, WBS element, element
name, description of work, deliverable.
WBS Dictionary
WBS dictionary should include the following elements for each
component of the WBS:
Code of accounts identifier
Description of the work of the component
Organization responsible for completing the component
List of schedule milestones
Required resources
Cost estimates
Quality requirements
Criteria for acceptance
Technical references
Contract information
Output
The Scope Baseline is a component of the
project management plan and include the
following:
Project scope statement

Work Breakdown Structure (WBS)
WBS Dictionary
5.5 Validate Scope

It is the process of obtaining formal acceptance of the project
scope by the stakeholders.
It requires reviewing deliverables and work results to ensure
that all were completed correctly and satisfactorily
If the project is terminated early, the scope verification process
should establish and document the level and extent of
completion
Verify Scope Cont’d.
Scope verification is concerned with acceptance of deliverables
but Quality control is concerned with meeting the quality
requirements specified.
Quality control is normally performed prior to scope verification
but both may be performed in parallel.
Validate Scope
Validate Scope : Tools & Techniques
Inspection
To complete scope verification, the work must be inspected.
This may require measuring, examining, and testing the product
to prove it meets customer requirements.
Inspection usually involves the project manager and customer
inspecting the project work for verification, which in turn results
in acceptance.
Depending on the industry, inspection may also be known as:
Reviews, Product Reviews, Audits & Walkthroughs.
5.6 Control Scope

The process of monitoring the status of the project and product
scope and managing changes to the scope baseline.
Control Scope
Monitor the status of project and product scope and manages
any changes to scope baseline.
Is part of integrative change control.
Uncontrolled scope changes result in scope creep.
Control Scope – Tools & Techniques & Output

Variance Analysis : Tool & Technique
Project performance measurements are used to assess the
magnitude of variation from the original scope baseline .
Important aspects of the project scope control include determining
the cause and the degree of variance relative to the scope baseline
and deciding whether corrective or preventive action is required
Work Performance Measurements: Output

Measurements can include planned vs. actual technical performance
or
other scope performance measurements. This information is
documented
and communicated to the stakeholders.
Scope Change
Changes to scope will likely require that you repeat some of the
project planning processes and make any needed adjustments,
including updating the project documents. Scope changes require
an update to the project scope statement. This may require an
update to the WBS and WBS dictionary as well. Scope baseline
updates are part of the project management plan updates.
Lecture 4
Project Time Management
“the processes required to accomplish timely
completion of the project.” PMI-PMBoK 5th Ed.

“How to accomplish to complete a project on
time as per PMI-PMBoK 5th Ed?”

Key Elements Of Time Management
Estimating
Network Analysis Techniques
Estimating
Time management involves a bottoms-up approach. Estimate
the duration of each activity and combine that with the network
diagram to build up the schedule to determine overall project
duration.
• Note: Top-Down estimating is not a recommended PMI method
for establishing overall project duration.
• Qualified exception: When there is a limited amount of detailed
information about the project.
Estimate Activity Durations: Tools and Techniques
Expert Judgment
Analogous Estimating
Parametric Estimating
Three-Point Estimating
Activity Duration Estimating
Expert judgment guided by historical information used
whenever possible.
Anything less is inherently uncertain and risky.
“Expert judgment can also be used to determine whether to
combine methods of estimating and how to reconcile differences
between them, PMI-PMBoK”
a technique for estimating the duration or cost of an activity or a
project using historical data from a similar activity or project.
.
Parametric (Quantitative) Estimating
an algorithm is used to calculate cost or duration based on
historical data and project parameters.
Parametric estimating uses a statistical relationship between
historical data and other variables (e.g., square footage in
construction) to calculate an estimate for activity parameters,
such as cost, budget, and duration.
Parametric / Quantitatively Based Durations

Example (Pipeline Construction)
200 m of pipe can be welded per day (Norms)
Project: 30000 mtr of pipe are required

30000 m / 200 m per day = 150 days
Three-Point Estimating (PERT)
Originated with the program evaluation and review technique
(PERT). PERT uses three estimates to define an approximate
range for an activity’s duration.
PERT Approach
Calculation of PERT PROBABILITIES
Monitoring &
Planning
Processes

Executing
Processes
Process
Control
Plan Schedule Management
Define Activity
Sequence Activity
Time
Activity Resource Estimating Control Schedule
Management Activity Duration Estimating
Develop Schedule
Project Time Management Processes

The Project Management Plan contains the schedule management plan, which
provides guidance on the development and planning of schedule activities
Activity definition: Identifying the specific activities that the project team
members and stakeholders must perform to produce the project deliverables.
Activity sequencing: Identifying and documenting the relationships between
project activities.
Activity resource estimating: Estimating how many resources a project team
should use to perform project activities.
Activity duration estimating: Estimating the number of work periods that are
needed to complete individual activities.
Schedule development: Analyzing activity sequences, activity resource
estimates, and activity duration estimates to create the project schedule.
Schedule control: Controlling and managing changes to the project schedule.
6.1 Plan Schedule Management
The Project Management Plan contains the schedule management
plan, which provides guidance on the development and planning of
schedule activities
Schedule Management Plan

Define Activity
Involves identifying and documenting the work that is planned to
be performed
This process identifies the deliverables at the lowest level of the
work breakdown structure (WBS), called the work package
The work package is then broken down into smaller
components called schedule activities
*These provide a basis for estimating, scheduling, executing,

and monitoring and controlling the project work
Define Activity
Figure 6-5. Define Activities: Inputs, Tools & Techniques, and Outputs
Activity Definition
An activity or task is an element of work normally found on the WBS
that has an expected duration, a cost, and resource requirements.
Project schedules grow out of the basic documents that initiate a
project.
The project charter includes start and end dates and budget information.
The scope statement and WBS help define what will be done.
Activity definition involves developing a more detailed WBS and
supporting explanations to understand all the work to be done, so
you can develop realistic cost and duration estimates.
Define Activity ( Tools & Techniques)
Rolling Wave Planning

• A form of progressive elaboration planning where the work to be
accomplished at the near term is planned in detail at a low level
of the WBS, while the work far in the future is planned at
relatively high levels of the WBS.
Define Activity (Outputs)
An activity list is a tabulation of activities to be included on a project
schedule. The list should include:
The activity name
An activity identifier or number
A brief description of the activity
Activity attributes provide more information about each activity,
such as predecessors, successors, logical relationships, leads and
lags, resource requirements, constraints, imposed dates, and
assumptions related to the activity.
Define Activity (Outputs)

Milestone List
A milestone is a significant event that normally has no duration.
Milestones are typically major accomplishments of the project and mark the
completion of major deliverables or some other key event in the project.
It often takes several activities and a lot of work to complete a milestone.
Milestones are useful tools for setting schedule goals and monitoring
progress.
Examples include completion and customer sign-off on key documents and

completion of specific products.
Sequence Activity
Activity Sequencing
Involves reviewing activities and determining dependencies or
relationship between activities .
A dependency or relationship relates to the sequencing of

project activities or tasks.
You must determine dependencies in order to use critical path

analysis.
Can be performed by using manual or automated techniques or

project management software
Dependency Determination
Three types of dependencies:
Mandatory dependencies: Also referred to as hard logic Required
as per contract or inherent in the nature of the work. Usually involve
physical limitations (e.g., you cannot build the ceiling until walls are
constructed) Are determined by the project management team during
the activity sequencing process.
Discretionary dependencies: Also referred to as preferred logic,

preferential logic, or soft logic Are determined by the project
management team during the activity sequencing process Should be
used with care and well documented, since they may limit later
scheduling options.
External Dependency
External dependencies: Are determined by the project

management team during the activity sequencing process.
Involve a relationship between project and non-project activities
such as activities outside the project team’s control (e.g.,
dependence on external sources for deliveries, environmental
factors governed by statutes, etc.
Network Diagrams
Network diagrams are the preferred technique for showing
activity sequencing.
A network diagram is a schematic display of the logical

relationships among, or sequencing of, project activities.
Two main formats are the Arrow and Precedence

diagramming methods.
Arrow Diagramming Method (ADM)

Uses arrows to represent activities
Connects activities with nodes
Uses only finish-to-start dependencies
May require dummy activities to define relationships
Precedence Diagramming Method (PDM)
Activities are represented by boxes
Arrows show relationships between activities
More popular than ADM method as used by PM software
Better at showing different types of dependencies
In PDM, finish-to-start is the most common relationship
Precedence Diagramming Method(PDM)

Includes four types of dependencies or logical relationships:
– Finish-to-start (FS)
– Finish-to-finish (FF)
– Start-to-start (SS)
– Start-to-finish (SF)
The PDM is also called Activity–On-Node (AON) and it does

not use dummy activities nor does it allow for loops or
conditional branches.
Task Dependency Types
Applying Leads and Lags

A Lead may be added to start an activity before the predecessor
activity is finished. e.g. Furniture may be installed 2 weeks prior
to completion of painting (Finish to start relationship with 2
weeks lead)
Lag introduces waiting period between activities. Lag introduces

a delay in the successor activity. e.g. Needing to wait three days
after pouring concrete before constructing the frame for a
house.
Sequence Activities : Outputs
1. Project Schedule Network Diagrams :
• It can be produced manually or by using a project management
software
• Project Schedule Network Diagrams are not final schedule For
the exam, know that, in its pure form, the network diagram
shows just dependencies.
Estimate Activity Resources

All projects, from the smallest to the largest, require resources.
Before estimating activity durations, you must have a good idea
of the quantity and type of resources that will be assigned to
each activity
The term resources in this case does not mean just people; it
means all the physical resources required to complete the
project.
People
Equipment
Materials
Estimate Activity Resource
Resource Calendars( Input)- is a calendar that used to

reflect specific working hours, vacations, leaves of
absence, and planned personal time for individual
resources. Resource calendars can be used for human
resources as well as equipment.
Alternative Analysis (Tool & Technique)-is used when

thinking about the methods you might use to accomplish
the activities your resources have been assigned. Many
times, you can accomplish an activity in more than one
way, and alternatives analysis helps decide among the
possibilities.
Estimate Activity Resources
(Tools & Techniques)
Published Estimating data- Estimating data may
include organizational guidelines, industry rates or
estimates, production rates, and so on.
Bottom Up Estimating-Bottom-up estimating is

A process of estimating individual schedule
activities or costs and then adding these
together to come up with a total estimate for the
work package.
Activity Resource Estimating (Outputs)

Activity Resource Requirements – Activity resource
requirements provide an estimate of the type and quantity
of resources needed to complete activities. The Schedule
Development process considers when the required
Resources will be used.
Resource Breakdown Structure (RBS) - The Resource

Breakdown Structure (RBS) displays the hierarchical
structure of the categories and types of resources needed.
Sample Resource Breakdown Structure
The RBS Chart shows you the hierarchy of your resource pool
in a hierarchical tree.
An important feature of this view is that the Cost and Budget

(baseline cost) values roll up into parent resources.
Estimate Activity Durations

Here the network diagram is updated by estimating duration for each
activities.
The Activity Duration Estimating process attempts to estimate the

work effort and number of work periods needed to complete each
schedule activity.
A person or team most familiar with work of the project shall

estimate duration to make it more accurate.
All data and assumptions used for estimation shall be documented

for future analysis (remember this, we need this information during
the risk management process)
Estimate Activity Duration
Estimate Activity Durations :

Tools & Techniques
Parametric estimate uses a statistical relationship between historical
data and other variables.
More accurate than analogous estimate
Estimation is done by multiplying quantity of work by labor hours per
unit of work.
Analogous Estimating, is a form of expert judgment and is also
known as Top-down Estimating. Analogous estimates are typically
less time consuming and less costly than other estimating
techniques, but it’s also less accurate.
Three-Point Estimates
Three-point estimates, as you can probably guess, use three
estimates that when averaged come up with a final estimate.
The three estimates you’ll use in this technique are the most
likely estimate, an optimistic estimate, and a pessimistic
estimate.
Three-point estimates are needed for PERT estimates and

Monte Carlo simulations
PERT( Program Evaluation and Review

Technique)
Program Evaluation and Review Technique (PERT) has the
following characteristics.
It uses three estimates per activity - optimistic, pessimistic and most likely
It can be drawn only using AOA diagrams
It can have dummy events
PERT utilizes more information than CPM as it considers the

"Pessimistic" and "Optimistic" values in addition to the "Most Likely"
value in its calculations. The following are formula used by PERT -
Mean = (P + 4M + O)/6
Standard Deviation = (P-O)/6
Variance = ((P-O)/6)2
GERT is another type of network diagram. It can support looping.

Reserve Analysis
Reserve time, also called buffers, time reserves, or contingency
reserve in the PMBOK Guide, means a portion of time that is
added to the activity to account for schedule risk or uncertainty.
You might choose to add a percentage of time or a set number
of work periods to the activity or the overall schedule.
For example, you know it will take 100 hours to run new cable,
you also know that sometimes you hit problem areas when
running the cable. To make sure you don’t impact the project
schedule, you build in a reserve time of 10 percent of your
original estimate to account for the problems you might
encounter.
Buffers and Critical Chain

A buffer is additional time to complete a task.
Murphy’s Law states that if something can go wrong, it will.
Parkinson’s Law states that work expands to fill the time allowed.
In traditional estimates, people often add a buffer to each task and
use the additional time whether it’s needed or not.
Critical chain scheduling removes buffers from individual tasks and
instead creates:
A project buffer or additional time added before the project’s due date.
Feeding buffers or additional time added before tasks on the critical
path.
Activity Duration Estimates - Output
You use the inputs and tools and techniques to establish these
estimates. Activity duration estimates are an estimate of the
required work periods needed to complete the activity. This is a
quantitative measure usually expressed in hours, weeks, days,
or
months.
Develop Schedule
The Develop Schedule process is the heart of the Planning process
group.
The creation of the project schedule is iterative. It’s rare for a
schedule to get created, approved, and implemented without
some iterative examination, arrangement, and management input—
though on smaller projects it may be possible.
Uses results of the other time management processes to determine

the start and end dates of the project.
Ultimate goal is to create a realistic project schedule that provides a

basis for monitoring project progress for the time dimension of the
project.
Develop Schedule
Schedule Management Plan
A Guide to the PMBOK notes that the schedule management
plan (a subsidiary of the project management plan) is produced
as part of the Develop Project Management Plan process and
contains the criteria for formatting, developing, and controlling
the project schedule.
Develop Schedule
Gantt Chart for Software Launch
Project
Adding Milestones to Gantt Charts

Many people like to focus on meeting milestones, especially for
large projects.
Milestones emphasize important events or accomplishments in

projects.
You typically create milestone by entering tasks that have a

zero duration, or you can mark any task as a milestone.
Milestone Chart
Develop Schedule
(Tools & Techniques)
Schedule Network Analysis
Schedule network analysis is a technique that generates the

project schedule. It employs a schedule model and various
analytical techniques, such as critical path method, critical chain
method, what-if analysis, and resource leveling to develop the
schedule.
Critical Path Method (CPM)
CPM is a network diagramming technique used to predict total
project duration.
A critical path for a project is the series of activities that
determines the earliest time by which the project can be
completed.
The critical path is the longest path through the network
diagram and has the least amount of slack or float.
Slack or float is the amount of time an activity can be delayed
without delaying a succeeding activity or the project finish date.
Determining the Critical Path

for Project X
More on the Critical Path
The critical path does not necessarily contain all the critical
activities; it only accounts for time.
There can be more than one critical path if the lengths of two or
more paths are the same.
The critical path can change as the project progresses.
Floats
Floats are not the same as lead or lag.
Lead or lags are introduced (manually) to correct the sequence

while float is calculated in CPM.
Float for all activities on critical path will be zero value.
A forward pass through the network diagram determines the early

start and finish dates.
A backward pass determines the late start and finish dates.

FORWARD & BACKWARD PASS
DURATION
ES EF
FORWARD PASS
ES
BACKWARD PASS
LS LF
Types of Floats (or Slack)

Float time is also called slack time and there are three
types of float:
Total Float – The amount of time an activity can be delayed without

delaying the planned project end date or milestone.
Free Float – The amount of time an activity can be delayed without

delaying the early start date of successor activity or without
delaying the early start of any immediately following activities.
Project Float – The amount of time a project can be delayed

without delaying an externally imposed project completion date
(other than calculated by CPM) by customer.
Importance of Updating Critical
Path Data
It is important to update project schedule information to meet
time goals for a project.
The critical path may change as you enter actual start and finish
dates.
If you know the project completion date will slip, negotiate with
the project sponsor.
Schedule Network Analysis

a technique that generates the project schedule model.
critical path method,
critical chain method,
what-if analysis, and
resource optimization techniques
Critical Path Method (CPM)
SAMPLE Network Analysis

What is the Critical Path?
Network Diagram Analysis


Critical Path
Float
Exercise 1
A project has the following activities: Activity A takes 5 days and
can start after the project starts. Activity B takes 3 days and
starts the same as A. Activity C is 6 days and must happen after
activity B. Activity D with 10 days will start after A starts. Activity
E can start after Activity D & C finish with duration of 3 days.
Activity F will start after Activity D finishes having a duration of 2
days. Activity E&F are the last activities.
What is the critical path?
What is the duration of the project?
Analyze the network diagram and as PM what changes can you
suggest?
The project is currently being delayed by 3 days. As a PM what
strategies can you suggest to the sponsor?
Exercise 2
ACTIVITY PREDECESSOR DURATION (MOS)
START NONE 0
A START 1
B START 4
C START 5
D A 6
E B,C 8
F C 7
G D 1
H E 10
I F 5
END G.H.I 0
Critical Chain Method

Critical chain method is a schedule network analysis
technique that will modify the project schedule by
accounting for limited or restricted resources. After the
project schedule network diagram is constructed using
duration estimates, dependencies, and constraints,
resource availability is entered into the scheduling tool.
The modified schedule is calculated and you’ll find that it
often changes the critical path. The new critical path
showing the resource restrictions is called the critical
chain.
Critical Chain Method
When to Use CCM?

Use CSS in important projects that may afford a dedicated team
Apply CSS in companies that are in a time-to-market race,
always striving to shave off their cycle times
Support CSS with performance measurements that promote
behavior of transferring an activity’s output to the succeeding
activities as early as possible
Deploy CSS where there exists a strong performance culture
willing to take on 50% probable estimate
Resource Leveling
Allows one to level peaks and valleys of resource use from one
month to another, resulting in a more stable number of
resources used on the project.
Produces a resource-limited schedule – may result in lengthen

the project, instead of hiring more resources.
This method let’s schedule slip and cost increase in order to

deal with a limited amount of resources, resource availability
and other resource constraints.
Schedule Compression
Crashing – This approach adds more resources to activities on
the critical path to complete the project earlier. Crashing almost
always result in increased cost. Many options are considered
and the option with maximum compression with minimum cost
impact is selected.
Fast Tracking –Critical activities that would normally be done in

sequence are allowed to be done in parallel or with some
overlap. Fast track may result in rework and increases risk.
Communication requirements increases during fast tracking.
What – If Scenario
What-If Scenario Analysis: In creating a finalized, realistic
schedule, ask what if a particular thing changed on the project?
Would it shorten the schedule?
Can calculate the effect of these changes through a Monte Carlo

Analysis – a method of estimating using computer software to
simulate the outcome of a project, making use of three-point estimates
for each activity and network diagram.
Can tell the probability of completing on a specific day, with a specific
amount of cost, overall project risk etc.
Develop Schedule: Outputs

The schedule can be displayed in a variety of
ways:
Project Schedule Network Diagram
Gantt Charts/ Bar Charts
Milestone Charts
The purpose of the Schedule Development process is to

determine the start and finish date for the each of the project
activity. The project schedule should be approved and
signed off by stakeholders and functional managers.
✓ This assures that they have read the schedule, understand the dates and resource
commitments, and will likely cooperate
Schedule Control
Goals are to know the status of the schedule, influence factors that
cause schedule changes, determine that the schedule has changed,
and manage changes when they occur.
Tools and techniques include:

Progress reports.
A schedule change control system.
Project management software, including schedule comparison charts,
such as the tracking Gantt chart.
Variance analysis, such as analyzing float or slack.
Performance management, such as earned value
Schedule Control
Control Schedule
( Tools & Techniques)
Performance Reviews- Performance reviews
measure, compare, and analyze schedule performance
such as actual start and finish dates, percent complete, and
the remaining duration for the work in progress .
Variance Analysis- Variance analysis is a key factor

in monitoring and controlling project time because this
technique helps determine variances in schedule start and
end dates.
Things to note in Schedule Control

Don’t plan for everyone to work at 100 percent capacity all the time.
Hold progress meetings with stakeholders and be clear and honest

in communicating schedule issues.
Review the draft schedule or estimated completion date in the

project charter.
Prepare a more detailed schedule with the project team.
Make sure the schedule is realistic and followed.
Alert top management well in advance if there are schedule

problems.
Control Schedule : Outputs
The Schedule Control process has the following outputs:
1. Work Performance Measurements- Calculated Schedule

Variance (SV) and Schedule Performance Index (SPI) are
documented and communicated with Stakeholders.
Lecture 5
Monitoring &
Planning
Processes

Executing
Processes
Process Groups
Control
Plan Cost Management
Cost Estimate Cost
Control Cost
Management Determine Budget
Plan Cost Management

Project Cost Management
According to PMBOK, Project Cost Management includes the
processes involved in estimating, budgeting, and controlling so
that the project can be completed within the approved budget
costs. Project Cost Management include the following
processes:
Estimate cost- The process of developing an approximation of

the monetary resources needed to complete project activities.

Determine Budget- The process of aggregating the estimated
cost of individual activities or work packages to establish an
authorized cost baseline.
Control Cost- The process of monitoring the status of the

project to update the project budget and managing changes to
the cost baseline
Life cycle costing
Project cost management should also consider the effect of project decisions on the subsequent
recurring cost of using, maintaining, and supporting the product, service or result of the project.
Value analysis (value engineering)

- Looking at less costly way to do the same work within the same scope.
Law of Diminishing Returns

- E.g. adding twice resource to task may not get the task done in half
cost/time.
Cost will also affect the schedule

Cost risk vs. Type of contract
Time value of money (depreciation)
Types of Cost
Variable Costs
Change with the amount of production/work e.g. material, supplies,
wages.
Fixed Costs
Do not change as production change e.g. set-up, rental.
Direct Costs
Directly attributable to the work of project e.g. team travel,
recognition, team wages.
Indirect Costs
overhead or cost incurred for benefit of more than one project. E.g.
taxes, fringe benefit, janitorial services
Estimate Cost
Developing an approximation or estimate of the costs of the resources
needed to complete a project.
Estimate Cost: Tools & Techniques
Bottom-up Estimating
Three Point Estimates
Reserve Analysis
Estimate Costs : Tools & Techniques

Cost of Quality (COQ)
Assumptions about cost of quality may be used to prepare the
activity cost estimates..
Project Management Estimating Software

Several different computer programs are available that can
streamline project work estimates and increase their accuracy.
These tools can include project management software,
spreadsheet programs, and simulations.
Estimate Costs : Tools & Techniques
Vendor Bid Analysis
Sometimes it’s just more cost effective to hire someone else to
do the work. Other times, the project manager has no choice
because the needed skill set doesn’t exist within the
organization.
In either condition, the vendors’ bids need to be analyzed to

determine which vendor should be selected based on their
ability to satisfy the project scope, the expected quality, and the
cost of their services.
Estimate Costs :Outputs

The output of cost estimating is the actual cost estimates of the
resources required to complete the project work.
Each resource in the project must be accounted for and assigned to
a cost category. Categories include the following:
✓ Labor costs
✓ Material costs
✓ Travel costs
✓ Supplies
✓ Hardware costs
✓Software costs
✓ Special categories (inflation, cost reserve, and so on)
Quality/ Accuracy of Cost Estimation
Estimate Costs :Outputs

Basis of estimates
Once the estimates have been completed,
supporting documentation should provide a clear and complete
of how the estimates were derived.
Determine Budget
Cost of completing individual activities are now completed.
During budgeting, the cost of individual activities are
aggregated to generate a complete time phased budget.
Cost of individual activities are rolled up to work package level
and as the work packages are now part of schedule baseline,
this will result in a time phased cost.
Schedule, estimate and risk analysis shall be complete prior to
budgeting
This cost is now linked to organization accounting system
through control accounts placed above work package.
Determine Budget
Allocating the overall cost estimate to individual work items
to establish a baseline for measuring performance.
Cost Aggregation
Activity costs are rolled up
to work package costs.
Work package costs are
rolled up to control account
costs and finally into project
costs.
Determine Budget: Tool & Technique

Reserves are dollars included in a cost estimate to mitigate
cost risk by allowing for future situations that are difficult to
predict. Budget reserves are kept for both contingency reserve
and management reserve.
Contingency Reserves
part of the budget intended to address the “known-unknowns” that can
affect a project. Included in the Cost Baseline.
Management Reserves
intended to address the “unknown unknowns” that can affect a project.
NOT included in the Cost Baseline.
Determine Budget: Tool & Technique
Funding Limit Reconciliation
Funding limit reconciliation involves reconciling the amount of
funds to be spent with the amount of funds budgeted for the
project. The organization or the customer sets these limits.
Reconciling the project expenses will require adjusting the
schedule so that the expenses can be smoothed. You do this by
placing imposed date constraints on work packages or other
WBS components in the project schedule.
Question?
Is profit and overhead cost included in the budget?

How to Control Cost
Follow the cost management plan
Look at any organizational process assets that are available.
Manage change
- recording all appropriate change
- preventing incorrect change
- ensuring requested changes are agreed upon
- Managing the actual changes when and as they occur
Measure and measure and measure (monitoring)
Control Cost
Controlling changes to the project budget.
Progress Report
Progress/ performance report (output from communications
management)
Where work cannot be measured, estimate could be done by a
guess.
Percent complete
- 50/50 Rule
- 20/80 Rule
- 0/100 Rule
Activity is considered X percent complete when it
begins and get credit for the last Y percent only when it is
Completed.
Earned Value Management (EVM)

EVM is a project performance measurement technique that integrates
scope, time, and cost data.
Given a baseline (original plan plus approved changes), you can

determine how well the project is meeting its goals.
You must enter actual information periodically to use EVM.
More and more organizations around the world are using EVM to help
control project costs.
Control Cost: Tools & Technique
Earned Value Management
Earned value management will indicate status and health of
project at any time and can predict possible outcomes.
EVM can be used for analysis of cost and schedule
baselines
Earned Value Management is carried out using the three
main inputs:
➢ Planned Value (PV)
➢ Earned Value (EV)
➢ Actual Cost (AC)
Earned Value Technique

EVM
Control Cost: Tools & Technique
Forecasting
Using the earned value analysis, team can now forecast the
project performance.
Estimate at completion (EAC) may now differ from Budget at
Completion (BAC)
Earned Value Technique

Terms & Formulas Definition
Budget at Completion (BAC) How much did we budget for the total project
effort.
Estimate at Completion(EAC) What do we currently expect the project to cost (a

= BAC/ CPI forecast)
Estimate to Complete (ETC) From this point on, how much more do we expect
= EAC- AC it to cost to finish the project
Variance at Completion As of today, how much over or under budget do

= BAC-EAC we expect to be at the end of the project.
Cost Control: Tools and Techniques
Performance Reviews
Performance reviews compare cost performance over time,
schedule activities or work packages overrunning and under
running the budget and estimated funds needed to complete
work in progress.

Variance Analysis
Cost performance measurements (CV, CPI) are used to assess
the magnitude of variation to the original cost baseline.
Important aspects of project cost control include determining the
cause and degree of variance relative to the cost performance
baseline and deciding whether corrective or preventive action is
required.
Forecasting EAC
There are many ways to calculate EAC, depending on the assumptions
made.
Simple EAC calculation( EAC= BAC/CPI) assume that the cumulative CPI
adequately reflects past performance that will continue to the end of the
project.
AC+(BAC-EV)
- used when current variances are thought to be atypical of the future.
AC+(BAC-EV)/(Cumulative CPI + Cumulative SPI)

- it assumes poor cost performance and need to hit a firm completion
date.

To-Complete Performance Index(TCPI)
Helps the determine the efficiency that must be achieved on the
remaining work for a project to meet a specified endpoint, such
as BAC or the team’s revised EAC.
TCPI= Work Remaining (BAC- EV)

Funds Remaining (BAC- AC) or EAC - AC
Earned Value Management hints
to remember:
EV comes first in every formula
If its variance, it will be EV minus something
If its index, it will be EV divide something
If it relates to cost use Actual Cost
If it relates to schedule use Planned Value
Negative numbers are bad, positive ones are good
Lecture 6
What Is Quality?
Quality can be defined as

“the degree to which project fulfils
requirements.”
What is Quality ?
The International Organization for Standardization (ISO) defines
quality as the totality of characteristics of an entity that bear on
its ability to satisfy stated or implied needs
Other experts define quality based on

Conformance to requirements: meeting written specifications
Fitness for use: ensuring a product can be used as it was intended.
The degree to which a set of inherent characteristics fulfill
requirements
Quality Theorists
Joseph Juran- developed the 80/20 principle, advocated top
management involvement, defined quality as “fitness for use.’’
W. Edwards Deming- developed 14 Steps to Total Quality

Management, advocated the Plan-Do-Check- Act cycle as the
basis for quality improvement.
Quality Theorists
Phillip Crosby- popularized the concept of cost of poor

quality, advocated prevention over inspection and “zero
defects.” He believed that quality is “conformance to
requirements.’’
Kaizen approach- Quality technique from Japan. (Continuous

improvement)Improve the quality of people first. Then quality of
products or service.
Precision vs. Accuracy
Precision is the degree to which repeated
measurements under unchanged conditions show the
same results.
Accuracy is the degree of closeness of

measurements of a quantity to its actual (true) value.
The Project Management Team must determine how much

accuracy or precision or both are required.
Precision and Accuracy

Quality vs. Grade
Quality is the degree to which a set of inherent characteristics fulfills

requirement.
- Quality level that fails to meet quality requirements are always a
PROBLEM.
Grade is a category assigned to a product or service having the

same functional use but different technical characteristics.
- Low grade may not be a problem.
A camera with lots of functions is high grade and a camera which

takes bad pictures is low quality
What is Project Quality Management ?
“Project Quality Management processes include all activities of

the performing organization that determine quality policies,
objectives, and responsibilities, so that the project will satisfy
the needs for which it was undertaken.”
Purpose of Project Quality
Management
To ensure that the Project will satisfy the needs for which it was
undertaken.
Scope
Cost
Performance
Meet or exceed Customer Satisfaction
The customer ultimately decides if Quality is Acceptable.
Project Quality Management
Addresses (i) the management of the project and (ii) the product
of the project.
Meeting customer requirements by overworking the project team may

result in increased employee attrition, errors or rework.
Meeting project schedule objectives by rushing planned quality
inspections may result in undetected errors.
Common Understanding
Addresses (i) the management of the project and (ii) the product
of the project.
Meeting customer requirements by overworking the project team may

result in increased employee attrition, errors or rework.
Meeting project schedule objectives by rushing planned quality
inspections may result in undetected errors.
PMI’s Quality Management Philosophy

Customer Satisfaction
“Understanding, evaluating, defining and managing expectations
so that the customer’s requirements are met.”
Prevention over Inspection

“The cost of preventing mistakes is much less than the cost of
correcting them, as is revealed by inspection.”
Continuous Improvement
“Plan-Do-Check-Act.”
PDCA Cycle
Plan to bring Do changes on

about a small scale
improvement first
Act to get the

greatest Check to see
benefit from if changes
changes are working
Management Responsibility
“Success requires the participation of all members
of the team, but it remains the responsibility of
management to provide the resources needed to
succeed.”
Quality Management includes:
Plan Quality - Identifying which quality standards are relevant
to the project and how to satisfy them.
Perform Quality Assurance- Periodically evaluating overall

project performance to ensure the project will satisfy the
relevant quality standards.
Quality Control - Monitoring specific project results to ensure

that they comply with the relevant quality standards.
Quality Planning
Quality Planning involves identifying with quality standards
It is a key facilitating process during the Project planning

Process
In modern quality management quality is planned in and not

inspected in
Prior to the development of ISO 9000 series, quality planning

concepts were widely discussed as part of quality assurance.
Plan Quality Management

Identifying which quality standards are relevant to the
project and determining how to satisfy them.
Quality Planning (Tools & Techniques)
Benefit/Cost Analysis - weight the benefit versus the cost of
meeting quality requirements.
Benchmarking - comparing actual or planned practices to those of

other projects.
Flowcharting - Use to see a process or system flow and find potential

quality problems.
Design of Experiments (DOE) – use experimentation to statistically

determine what variable will determine quality standard
Statistical Sampling- we need it since studying entire population will

take too long, cost too much and be too destructive.
The Cost of Quality
The cost of quality is the cost of conformance plus the cost of

nonconformance.
Conformance means delivering products that meet requirements and

fitness for use.
Cost of nonconformance means taking responsibility for failures or

not meeting quality expectations.
The Cost of Quality (CoQ)
.
Cost of Conformance Cost of Non-Conformance
Prevention Costs Internal Failure Costs

(Build a quality product) (Failures found by the project)
•Training •Rework
•Document Processes •Scrap
•Equipment
•Time to do it right
External Failure Costs
Appraisal Costs (Failures found by the customer)
(Assess the Quality) •Testing
•Testing •Destructive testing loss
•Destructive testing loss •Inspection
•Inspection
Five Cost Categories Related to Quality

Prevention Cost: the cost of planning and executing a project so it is error-
free or within acceptable error range. It costs less to prevent during
development than fix later in the life cycle
Appraisal Cost : the cost of evaluating processes and their outputs to

ensure quality
Internal Failure Cost: cost incurred to correct an identified defect before

the customer receives the product.
External failure cost: cost that relates to all errors not detected and have
to be corrected after customer receives the product.
Measurement and test equipment costs: capital cost of equipment used to

perform prevention and appraisal activities
Design of Experiments(D.O.E.)
It is important to design in quality and communicate important factors

that directly contribute to meeting the customer’s requirements
e.g. DOE helps identify which variables have the most influence on
the overall outcome of a process
DOE uses experimentation to statistically determine which variables

improve quality….allows systematic change of all important factors
in a process and see which combination has a lower impact on
project.
Quality Control Charts

A control chart is a graphic display of data that illustrates the
results of a process over time.
The main use of control charts is to prevent defects, rather than

to detect or reject them.
Quality control charts allow you to determine whether a process

is in control or out of control.
Normal Distribution curve showing
3 sigmas
Normal Distribution – most common probability – used to

measure variations
Standard deviation (sigma) – measure how far away from the mean
(dotted vertical line)
3 or 6 sigma – represents level of quality

+/- 1 sigma equal to 68.26%
Standard Deviation
PERT FORMULA
(Triangular Distribution)
Expected Value / Duration =
(Optimistic time + 4 (most likely time) + Pessimistic time)

___________________________________________
6
OT + 4MT +PT
________________
6
Standard Deviation for PERT
Standard Deviation =
Pessimistic duration - Optimistic duration

________________________________________________
6
P - O
----------------
6
Statistical Sampling and Standard Deviation
Statistical sampling involves choosing part of a population of

interest for inspection
The size of a sample depends on how representative you want

the sample to be
Proprietary Quality Management

Methodologies
Six Sigma Quality Function
An extension of TQM Deployment
Achieved by improving A practice of designing
process performance so manufacturer processes
that all customer to respond to customer
requirements are met. needs. Allows one to find
3 sigma= 2700 defects innovative responses to
in1million those needs, and
improve processes to
6 sigma=0.002 defects maximum effectiveness.
occur in 1 million
Quality Planning (Outputs)
✓Project management method

✓Role and responsibility in managing quality
✓Deliverable measurement
✓Standard for monitoring & control purpose
✓Process review
✓Major check points
✓Inspection & acceptance criteria
Perform Quality Assurance
Perform Quality Assurance is the process of auditing the

quality requirements and results from quality control
measurements to ensure that appropriate quality standards and
operations definitions are met.
Another goal of quality assurance is continuous quality

improvement.
Normally done by a third party

Perform Quality Assurance
Quality assurance is evaluating the overall project
performance on a regular basis to provide a confidence
that the project will satisfy the relevant quality standards.
Quality Assurance (Tools &Techniques)
Are we using the standard?

Can we improve the standard?
Quality Audits which are a structured review of other quality

management activities that identify lessons learned.
Process Analysis – includes root cause analysis.

Perform Quality Control
QC involves monitoring specific project results to
determine:
Whether they comply with relevant quality standards.
Identifying ways to eliminate causes of unsatisfactory results.
QC should be performed throughout the project.
Project results include deliverables and PM results, such as
cost and schedule performance.
QC is often performed by a Quality Control Department.
Perform Quality Control

Quality Control is the monitoring of specific project results to
determine if they comply with the relevant quality standards and
identifying ways to eliminate causes of unsatisfactory performance.
Quality Control (Tools & Techniques)
Inspection
Inspection includes activities such as measuring, examining and
testing undertaken to determine whether results conform to
requirements
Inspection can be carried out on the level of a single activity or

a final product
Inspections can be called reviews, product reviews, audits, and

walk-throughs
Flowcharting
It helps to analyze how problems occur.
A flowchart is a graphical representation of a process.
It shows how various elements of a system interrelated and the
order of processing.
It helps the project team anticipate what and where quality
problems might occur.
Quality Control(Tools & Techniques)
Flowcharting
Quality Control Charts
A control chart is a graphic display of data that illustrates the

results of a process overtime. It helps prevent defects and
allows you to determine whether a process is in a control or out
of control.
Control Chart
It determines whether or not a process is stable or has
Predictable performance.
✓When a process is outside acceptable limits the process should
be adjusted.
✓ The upper control limits and lower control limits are usually set
at +/- 3 sigma (i.e. standard deviation).
Specification limit – are normally drawn from contract or
customer requirement. It may be more stringent than control
limits
Mean represent the average of control limits or specification
limits
Sample Quality Control Chart

Control Chart
Control Chart Cont.

Out of control – A process is considered out of control if:
- A data point falls out of control limits
- Breaks the rule of seven
Rule of seven – Is a rule of thumb or heuristic. A consecutive
seven data points one single side of mean is considered out of
control, even though the data points are within control limits.
Assignable cause / Special Cause Variation – is a data point
that requires investigation (either out of control limits or breaks
rule of seven)
QC (Tools & Techniques)
Run Chart
It shows the history and pattern of variation.
It is a line graph that shows data points plotted in the order in

which they occur.
Can be used to perform trend analysis to forecast future

outcomes based on historical patterns
Run Chart
QC Tools and Techniques
Scatter Diagram
➢ Shows the pattern of the relationships between two variables.
QC Tools and Techniques

- Cause and Effect Diagram
Ishikawa or fishbone diagram
Used to show how various factors are linked to identify
problems/ adverse effects
Diagnostic
Analyses data
Determines defects
Employs brainstorming technique
Cause and Effect Diagram
QC: Tools & Techniques

Histogram: it is a bar chart showing the distribution of
variables.
Each column represents an attribute or characteristics of a
problem or situation
The height of each column represents the relative frequency of
the characteristics.
Histogram helps identify the cause of the problem in a process
by the shape and width of the distribution
Pareto Diagram – 80/20 Rule
Vilfredo Pareto: Credited for discovering the rule.
PARETO’S PRINCIPLE: 20% of activities cause 80% of

problems => a small no. of causes (20%) create the majority of
problems (80%)
Pareto chart is a bar chart where the data is arranged in order

of importance… most significant problem is listed first and other
problems fall in descending order
The Benefit is to spend the majority of your time fixing, THE

MOST IMPORTANT problem.
QC Tools & Techniques

Sampling Methods
A method of determining the value of a product or service when
it is not practical to examine the entire population
Random sampling
Acceptance sampling
Attributes sampling
Special attributes sampling
Variables sampling
Perform Quality Control: Outputs

Quality Control Measurements
These measurements are the result of the QC activities
These measurements are fed back to the QA to reevaluate and
analyze the quality standards & processes.
Validate Changes :
Any changed or repaired items are inspected and will be either
accepted or rejected before notification of the decision is
provided .
Rejected items may require rework
Perform Quality Control: Outputs
Validated Deliverables
QC aims to determine the correctness of deliverables
The result of the execution quality control process are validated
deliverables.
Change Requests :
If the recommended corrective or preventive actions or a defect
repair requires a change to the project management plan , a
change request should be initiated in accordance with the
defined Perform
Integrated Change Control process
Quality Concepts
Philosophy: definition of quality, avoidance of “Gold plating” – giving
customer extras, this practice is not recommended.
Marginal Analysis – optimal quality is reached at the point when
revenue from improvement equals the costs to secure it.
Just in Time (JIT) - just when they are needed or just before, it
decrease amount of inventory/decrease investment.
Total Quality Management (TQM) – company and their employees
focus on finding ways to continuously improvement the quality of their
business practices and products.
W. Edwards Deming
Suggested that as much as 85% of the Cost of Quality is a

management problem.
Once the quality issue gets to the level of the worker, there is
little control.
Workers need to be shown what is acceptable quality and made
to understand its importance.
Product returns, warranty claims and recall campaigns can

impact on operational costs
Because project is temporary, quality costs are often borne by

the acquiring organization
Lecture 7
Project Human Resource

Management
What is Project Human Resource
Management?
❖Making the most effective use of the people involved with a
project
❖Processes include:
Develop Human Resource Plan
Acquire the project team
Develop the project team
Manage the project team
❖Project management team is a subset of the project team.
Project management team is normally appointed earlier and
project team (people who actually do the work of project) is
selected later.
Monitoring &
Planning
Processes

Executing
Processes
Process Groups
Control
Human Acquire Project Team

Develop Human
Resource Develop Project Team
Resource Plan
Management Manage Project Team
Develop Human Resource Plan
This is the process of identifying and documenting roles,

responsibilities and required skills, reporting relationship and
create the staffing management plan.
Ensure that each work package has an unambiguous owner.

All team member have a clear understanding of their roles and
responsibility.
Types of Roles and Responsibility:
-Hierarchal e.g. Organizational Breakdown Structure (OBS)
- Matrix e.g. Responsibility Assignment Matrix (RAM) e.g.
RACI (Responsible, Accountable, Consult and Inform)
- Text -oriented
RACI Chart
R=Responsible: The role is primarily responsible for performing the work required of that activity.
A=Accountable: The role is held accountable for the activity's output, deliverable, or artifact.
C=Consult: The role is in an advisory position for the activity.
I=Inform: The role will be kept in the loop as the activity is underway.
Develop Human Resource Plan: Tools &

Techniques
Organizational Theory
Organizational theory refers to all the theories that attempt to
explain what makes people, teams, and work units perform the
way they do.
Develop Human Resource Plan : Outputs
Human Resource Plan : the human resource plan , a part of
the project management plan, provides guidance on how
project human resources should be defined , staffed, managed
,controlled and eventually released .
The human resource plan should include , but not be limited to
the following:
i. Roles and Responsibilities
ii. Project Organization Chart
iii. Staffing Management Plan
Roles and Responsibilities

Role: What a person does e.g., Electric Engineer / Procurement
officer, is accountable, liable & responsible for, clear authority,
responsibilities & boundaries.
Authority: It is the right to apply Project resources, make

decisions and sign approvals.
Completing project activities, testing, selection and acceptance,
…are good example of decisions that always need a clear
authority
Roles and Responsibilities, Contd.
Responsibility: The work that a project team member is
expected to perform in order to complete the project’s activities.
Competency: What skill and capacity is required to complete
project activities?
Competency can lead to outstanding / jeopardized

performance.
What if mismatches are identified? Proactive responses are
initiated e.g. training, hiring, outsourcing, schedule changes, or
scope changes.
Staffing Management Plan

The staffing management plan is included as part of the project
management plan.
It deals with when and how team members will be added to and
released from the project.
How you plan to develop team members.
Summary of Develop HR Plan Outputs
1. Roles and Responsibility Compliance, Safety
Role
Authority Resource Histograms- Bar chart
Responsibility showing number of resource used per
time period.
Competency
2. Project Organizational Chart

3. Staffing Management Plan
Staff Acquisition
Resource calendars
Staff Release Plan
Training needs
Resource calendars are an output of the Acquire Project
Recognition and Rewards team process.
Acquire Project Team

It is the process of obtaining the human resources needed to
complete the project.
The project management team may or may not have control
over team members selected for the project .
The project manager and the project management team should
effectively negotiate and influence others who are in a position
to provide the required human resources for the project
Acquire Project Team
The process of confirming human resource availability and
obtaining the team necessary to complete project assignments.
Acquire Project Team:

Pre –assignment
Resources who are assigned in advance. Staff
assignments are defined within the project charter.
Negotiation
Project Management team may need to negotiate with:
✓ Functional Manager to ensure availability of component staff.
✓Other Project Management teams to assign scarce / specialized
resources.
Acquire Project Team:
Acquisition
From Internal /External resources. Acquiring from outside may
take place due to shortage / lack of staff in-house
Virtual Teams
This is the possibility of having groups of people in different
geographic locations, with little or no time spent to meet face to
face. Electronic communication, Such as e-mail and video
conferencing, has made such teams feasible.
❖Communication planning becomes increasingly important
in a virtual team environment.
Develop Project Team

❖It improves the competencies and interaction of team members
to enhance project performance. Improve skills of team
members. Improve feelings of trust and cohesiveness for
productivity through team work.
Main objectives of develop project team are:
Improve knowledge and skills of team members.
Improve feeling of trust among team
Create a dynamic and cohesive team culture
Develop Project Team
The process of improving the competencies, team interactions,
and the overall team environment to enhance project
performance.
Develop Project Team: (Tools & Techniques)

Interpersonal Skills “soft skills”, are crucial and important for
team development.
Skills such as empathy, influence, creativity, and group
facilitation are valuable when managing the project team.
Training- Can be formal(classroom or online) or non formal(on-

the job training, mentoring, coaching).
Team Building Activities (Tool & Technique)
Tuckman’s stages of team formation and development:
Forming
- The team meets and learn about the project and their roles and responsibilities.
Storming
- Address the project work, technical decisions and the project management approach. Conflict/ disagreement may
occur.
Norming
- Work together and adjust work habits and behavior that support the team.
Performing
- Being a well organized unit.
Adjourning
- Team completes the work and move on from the project.

Ground rules
- Guidelines that establish clear expectations regarding
acceptable behavior by teams.
- Discussion to create it by all team members.
Co-location/ War Room

- Placing many or all the most active team members in the same
physical location.
- Can be temporary for strategy or to enhance communication &
build sense of community.
Recognition and Rewards
Only desirable behavior should be rewarded e.g. the willingness
to work overtime to meet an aggressive schedule objective
should be rewarded or recognized; needing to work overtime as
a result of poor planning should not be rewarded.
Win lose (zero sum) rewards that only a limited number of

project team members can achieve such as team members of
the month, can hurt team cohesiveness.

Recognition and Rewards Contd’
Rewarding win-win behavior that every one can achieve such
as turning in progress reports on time, tends to increase support
among team members.
Recognition and reward should consider cultural differences.

For example, developing appropriate team rewards in a culture
that encourage individualism can be difficult
Motivational Theory:
Maslow’s Hierarchy of Needs
WIFI
Motivational Theory:
Maslow’s Hierarchy of Needs
ENHANCED
WIFI, FACEBOOK, WHATSAPP

Motivational Theory: Mc Gregors X & Y Theory
Theory X
- People tend to be negative, impassive, e.g. incapable, avoid
responsibility, need to be watched
- Extrinsic Motivation
x
Theory Y
-People tend to be positive e.g. want to achieve, willing to work
without supervision, can direct their own effort
- Intrinsic Motivation
Intrinsic and Extrinsic Motivation

Intrinsic motivation causes people to participate in an activity
for their own enjoyment
Extrinsic motivation causes people to do something for a
reward or to avoid a penalty.
For example, some children take piano lessons for intrinsic

motivation (they enjoy it) while others take them for extrinsic
motivation (to get a reward or avoid punishment)
Motivational Theory: Acquired Needs Theory
David McClelland Theory
People are motivated by one of the three needs
Motivational Theory: Two Factors Theory

• Herzberg’s Theory
- Job dissatisfaction due to hygiene factors.
- Job satisfaction due to motivational factors
Summary of Organizational Theories
Theory X/Theory Y: These are based on a belief of employees'
outlook towards work, and what is needed by management to keep
them productive. Theory X managers believe that employees are
only self-interested and need constant supervision and oversight to
be productive. Theory Y managers believe that workers are
genuinely interested in doing a good job.
Theory Z: Theory Z managers believe that employees are motivated

when they have a long-term stake in the organization, such as
involvement in the decision-making process.
Maslow's Hierarchy of Needs: Maslow studied "exceptional"

people, and found that their needs of physiological, security, social,
and esteem had to be met in order for a person to reach their top
potential (self-actualization).
Summary of Organizational Theories

Herzberg's Motivation-Hygiene Theory: Hygiene elements, such
as fringe benefits, can promote job satisfaction, but they are not
motivating for employees. Motivational factors are things such as
advancement and recognition.
Expectancy Theory: A reward is a motivator only if the person

wants the reward, believes that it can be achieved, and also believes
that it will be given.
Achievement Theory: People are motivated by mixed needs for

achievement, power, and affiliation. Rewards must fit the right needs
for the person in order for the rewards to be effective motivators.
Develop Project Team: Outputs
Team performance Assessments:

Project Management team makes informal or formal
assessment of the project team’s effectiveness.
Team assessments can identify training needs
Manage Project Team

The process of tracking team member performance, providing feedback,
resolving issues and managing changes to optimize project performance.
Manage Project Team: (Tools & Techniques)
Project Performance Appraisal
Project performance appraisals are typically annual or
semiannual affairs where managers let their employees know
what they think of their performance over the past year and rate
them accordingly. These are usually manager-to-employee
exchanges but can incorporate a 360-degree review, which
takes in feedback from just about everyone the team member
interacts with, including stakeholders, customers, project
manager, peers, subordinates etc.

Conflict Management
Conflicts can be beneficial(an opportunity for improvement).
Conflicts are an inevitable consequence of organizational
interactions.
Conflicts in the team are caused due to the following reasons in
decreasing order of consequence.
1. Schedules
2. Project Priorities
3. Resources
4. Technical opinions
The most common cause of conflicts on projects are issues related
to schedules (not personality differences).
Conflicts are best resolved by the persons or team members
involved in the conflict.
Conflict Management
General Techniques to resolving conflicts
Conflict Management
Problem Solving
The important thing to realize about problems is if they are not
resolved completely they just return, again and again.
The process of problem solving has these steps:

1. Defining the cause of the problem
2. Analyze the problem
3. Identify Solution
4. Implement a decision
5. Review the decision and confirm that the problem is solved.

Issue Log
The issue log is a place to document the issues that keep the
project team from meeting project goals. These can range from
differences of opinion to newly surfaced responsibilities that
need to be assigned to a project team member. Each issue
should be recorded in the log along with the person responsible
for resolving it. You should also note the date the resolution is
needed
Interpersonal Skills : Project managers use a combination of
technical , human and conceptual skills to analyze situation and
interact appropriately with the team members.
Some of the interpersonal skills that a project managers use
most often are the following :
✓Leadership (setting goals and motivating others to achieve it).
✓Influencing (Influence people to do work in a matrix
organization)
✓ Effective Decision making
Project Manager Power

A project manager may yield authority over the project team in one of
The following ways:
Formal (Legitimate)- power due to project manager position.
Reward- Power stems from giving rewards
Penalty (coercive)- Power due to people being afraid of the power the project manager holds.
(punish, penalize).
Expert Power (Technical)- comes from being a technical or project management expert.
Referent- Power due to charisma or fame, make another person like or respect the project
manager.
The best forms of power are Expert and Reward.

Earned on your own: Expert
The worst type of power: Penalty
These forms of power are derived from positions within the company: Formal,
Reward and Penalty.
Management & Leadership Styles
Autocratic
- Top down approach, the manager has the power to do whatever he/she
wants.
- Sometimes appropriate when decisions must be made in a emergency
situation or under time pressure.
Democratic(Participative)
- Encourage team participation in the decision making process.
- Best used for people whose behavior fit with theory Y.
Laissez-Faire – a French term means ‘’leave alone.’’

- The manager is not directly involved in the work of the team.
- Effective for highly skilled teams.
Important Terms
Halo Effect- The assumption of because a person is good in a
technical field, they will be a good project manager.
Arbitration- A method to resolve conflict. A neutral party hears
and resolve a dispute.
Expectancy Theory by Victor. H. Vroom- This is a
motivational theory, which states that people put in more effort
because they expect to be rewarded for their efforts.
Perquisites (Perks)- Some employees receive special rewards
e.g. parking spaces, corner offices, executive dining.
Fringe Benefits- Standard benefits formally given to all
employees, such as insurance, educational benefits and profit
benefits.
PM Responsibility (PMI-ism)
Lecture 8
Monitoring &
Planning
Processes

Executing
Processes
Process Groups
Control
Plan
Communication Control
Communication Manage Communications
Management Management
Communications
What is project Communications Management?
• Project Communications Management includes the

processes required to ensure timely and appropriate
generation, collection, distribution, storage, retrieval and
ultimate disposition of project information.
Communications Planning
• Every project should include some type of
communications management plan, a document that
guides project communications.
• Creating a stakeholder analysis for project

communications also aids in communications planning
Communication can take various methods:

• Internal i.e. within the project and external to the project such as
with the customer, other projects, the media, the public etc.
• Formal, such as reports, memos and briefings and informal such

as emails, ad-hoc discussions.
• Vertical (up and down the organization and horizontal (with

peers),
• Verbal and Non-verbal ( voice inflections and body language).
• Written and Oral

Plan Communications Management
• Plan Communications Management is the process of
developing an appropriate Approach and plan for the project
based on stakeholder’s information needs and requirements,
and available organizational assets.
Plan Communication
 The Plan Communications process involves determining the
communication needs of the stakeholders by defining
• the types of information needed
• the format for communicating the information,
• how often it’s distributed, and
• who prepares it.
 Communication planning includes communication within project,

outside project and within project management team members.
 Plan communication shall be done as early as possible in project
 Shall concentrate on right information given at right format at
right
time
Stakeholder Register
• This is the main output of the identify stakeholders
process and it contains all details related to the
stakeholders such as name, organizational position,
location, role in the project, contact information.
• It also contains the major requirements, main

expectations, potential influence in the project. It also
classify them as internal, external, supporter, neutral,
resistor etc.
• Stakeholder Register
Contact Role in Department Attitude

Compan Main Major
Name Informa Project / Impact Influence about the
y expectations requirement
tion Supervisor project
Plan Communications : (Tools & Techniques)
• Communication Requirement Analysis
• A key component is communication planning is to
determine who will communicate with whom and who
will receive what information.
• Project resources shall expended only on communicating
information that contributes to success, or where a lack
of information can lead to failure.
• This does not mean that bad news shall not be
communicated, but concentrate on efforts that lead to
success rather than information dumping
Communication Requirement Analysis

Customer, sponsor, Functional managers, and
Team Members
Other Project The Other

Managers Projects
Project
Other
Stakeholders
Determine and limit who will communicate with whom and who will receive what information.
Communication Requirement Analysis
• Consider the number of potential communication channels or paths
N ( N  1)
Formula: 2
The Impact of the Number of People on

Communications Channels
Plan Communication : Tools & Techniques
 Communication Technology
• As part of the communications planning, the project
manager should identify all of the required and
approved methods of communicating.
• Communication modalities can also include meetings,

reports, memos, e-mails, and so on.
• The project manager should identify which are the

preferred methods of communicating based on the
conditions of the message to be communicated.
Plan Communication : (Tools & Techniques)

Communication Models :
• Encode – Translate thoughts or ideas into a language
that understood by others
• Message and feedback message – The output of
encoding
• Medium – The method used to convey the message
• Noise – Anything that interfaces with the transmission
and understanding of message (Distance, unfamiliar
technology etc.)
Decode – To translate message back into meaningful
thoughts or ideas
Communication Model
 Basic Communication Model
◦ The components in the model need to be taken into account when discussing
project communications.
◦ The sender is responsible for making information clear and complete so that the
receiver can receive it correctly, and for confirming that it is properly understood.
Noise
Encode Decode
Sender Medium Receiver

Decode Encode
Noise
• To make effective communication, sender/receiver need to be aware of these factors:

- Nonverbal: 55% of all communication is nonverbal
- Paralingual: pitch and tone of voice
- Effective listening
Plan Communication : Tools & Techniques

• Communication Methods
• Interactive communication - Between
two or more parties in
multidirectional (Phone calls,
meetings, interviews). Most effective
way.
• Push communication - Sent a specific

information to specific recipients.
Examples are letters, memos, emails,
faxes etc. This ensures that message is
sent but will but will not certify that it
is actually received or understood.
(Push the message to recipient)
Plan Communication : (Tools & Techniques)
• Communication Methods Contd’
• Pull communication – Used for large
volume of information and large
audiences. Examples are internet sites,
company data bases, e-learning
etc. Recipients has to access the
communication content (Pull out
information) at their own discretion.
Project manager cannot control all communications but should try to control or
prevent miscommunication, unclear directions, and scope creeps.
Plan Communication : Outputs

• The Communications Management Plan is a subsidiary
plan of the project management plan, and it details the
communications needs and requirements of the project
and of the stakeholders, assigns responsibility, details the
frequency and methods for communication elements,
and defines the escalation paths for issues.
Communications Management Plan
❖Based on stakeholder analysis, the project manager and the
project team can determine what communications are needed.
❖The communications management plan documents:

• How the communication needs of the stakeholders will be met,
• The types of information that will be communicated,
• Who will communicate it,
• Who receives the communication,
• The methods used to communicate,
Manage Communications
• Manage Communications is the process of creating, distributing,
storing, retrieving and the ultimate disposition of project
information in accordance to the communications management
plan
Information Management Systems-
(Tools &Techniques)
• Information Management Systems:

Information is managed and distributed
through the use of a variety of tools given
project demands and available technology:
• Hard copies- letters, memos, press releases.
• Electronic communications management – e-mail, fax,
video and web conferencing, websites etc.
• Electronic project management tools – web interfaces to
scheduling and project management software, meeting
and virtual office support software, portals etc.
Report Performance
The process of collecting and distributing performance
information, including:
 Status Report
 Progress Report
 Trend Report
 Forecasting Report
 Variance Report
 Earned Value
 Lessons Learned
Report Performance
 Performance reporting keeps stakeholders informed
about how resources are being used to achieve project
objectives
 Status reports describe where the project stands at a
specific point in time.
 Progress reports describe what the project team has
accomplished during a certain period of time.
 Forecasts predict future project status and progress
based on past information and trends
Control Communications
• Control Communications is the process of monitoring and
controlling communications throughout the entire project life cycle
to ensure the information needs of the project stakeholders are
met.
Lecture 9
Monitoring &
Planning
Processes

Executing
Processes
Process Groups
Control
Plan Risk Management
Identify Risk
Risk
Perform Qualitative Risk Analysis Control Risk
Management Perform Quantitate Risk Analysis
Plan Risk Response
Risk Management Processes and their main
Outputs
Project Risk Management

Risk is an uncertain event or condition, that if it occurs has an
effect on at least one project objective.
Risk Management Objectives
- Increase the probability and impact of positive events
(opportunities).
- Decrease the probability and impact of negative events (threats)
Terms and concepts
Uncertainty: a lack of knowledge about an event that reduces
confidence.
Risk averse: someone who does not want to take risks.
Risk thresholds: the point at which a risk become
unacceptable.
Remember that in this area there is no activity in executing process
group
TERMINOLOGY
Risk Assessment – the stage in our risk management process
where the importance of each risk is evaluated.
Risk Tolerance – the willingness / unwillingness of a person or

organization to accept risk.
Probability – the number that represents the chance that a

particular outcome will occur when the conditions allow it.
TERMINOLOGY
Risk Impact –the cost of the risk if it occurs
Those things that affect the cost, schedule and scope of the project
Impacts manifest themselves as effects on the level of work required,
labor rates, duration of tasks, technical feasibility, material suitability,
material cost, equipment availability
Expected Value – a way of combining probability and impact

The process of defining how to conduct risk management
activities for a project
Importance of Risk Management Planning
-Ensure that the degree, type, and visibility of risk management are
commensurate.
-Provide sufficient resource and time for risk management activities.
-Establish an agreed-upon basis for evaluating risk.
Risk Categories
-A standard list of risk categories can help to make sure areas of risk are
not forgotten.
-Companies and PMO should have standard list of risk categories to help
identify risk.
2 Main type of Risk
-Business – Risk of gain or loss
-Pure (insurable) risk – Only a risk of loss (i.e. fire, theft, personal injury,
etc.)
Sources of risk = risk categories
Risk categories may be structured into Risk Breakdown Structure (RBS)
Risk Breakdown Structure

Risk Breakdown Structure (RBS) - A hierarchically -organized
depiction of the identified project risks arranged by category.
Risk Management Plan
Risk management plan describe how risk management will be
structured and performed on the project.
Subset of project management plan.
May include:
Methodology
Roles & responsibilities
Budgeting
Timing
Risk categories.
Definition of probability and impact
Stakeholder tolerances
Reporting formats
Tracking
Probability and impact matrix (?)
Identify Risk
The process of determining which risk may affect the project
and documenting their characteristics.
Identify Risks
Risk should be continually reassessed (iterative) such as in integrated change
control activity, when working with resources, when dealing with issues.
Information gathering techniques
Brainstorming
Delphi technique: Expert participate anonymously; facilitator use questionnaire;

consensus may be reached in a few rounds; Help reduce bias in the data and
prevent influence each others.
Interviewing: interviewing experts, stakeholders, experienced PM
Root cause analysis: Reorganizing the identified risk by their root cause may
help identify more risks.
Identify Risks cont’d

Checklist analysis: checklist developed based on accumulated
historical information from previous similar project.
Assumption analysis: identify risk from inaccuracy, instability,

inconsistency, incompleteness.
SWOT analysis – Strengths, Weaknesses, Opportunities,

Threats.
Diagramming techniques
Cause & Effect diagrams

(Fishbone /Ishikawa diagram)
System or process flow charts.
Influence diagrams
An influence diagram is a visual representation of a decision. Influence
diagrams offer a way to identify and display the essential elements,
including decisions, uncertainties, and objectives, and how they influence
each other. Unlike flowcharts, influence diagrams do not show paths in
any sequential order.
Risk Register (Output)
After Indentify Risk process the output is initial
entries into the risk register.
It includes:
List of risk
List of POTENTIAL responses
Root causes of risks
Updated risk categories
Perform Qualitative Risk Analysis

The process of prioritizing risks for further analysis of action by
assessing and combining their probability of occurrence and impact.
Qualitative Risk Analysis
Help to focus on high priority risks
A subjective analysis (High, Medium, Low)
Analysis using…
-Relative probability or likelihood of occurrence
-Impact on project objective
-Time frame response
-Organization’s risk tolerance
-Etc.
Can be also used to:
-Compare risk to the overall risk of other projects
-Determine whether the project should be selected, continued or
terminated.
-Determine whether to proceed to Perform
Probability Impact Matrix

Risk Register Updates
Update/add additional information to previous output i.e. Risk Register, which
include:
-Relative ranking/priority
-Risk grouped by categories
-List of risk requiring additional analysis in the near term
-List of risk for additional analysis and response
-Watch-list (non-critical or non-top risks)
-Trends, Since risk analysis process is iterative, PM should know if risk is

increasing, decreasing or staying the same
-Cause of risk requiring particular attention
Perform Quantitative Risk Analysis

The process of numerically analyzing the effect of identified risks on overall
project objectives. If not necessary, this process may be skipped.
Quantitative Risk Analysis
Is a numerical evaluation (more objective)
This process may be skipped.
Purpose of this process:

-Determine which risk events warrant a response.
-Determine overall project risk (risk exposure).
-Determine the quantified probability of meeting project
objectives.
-Determine cost and schedule reserves.
-Identify risks requiring the most attention.
-Create realistic and achievable cost, schedule, or scope
targets.
Quantitative Risk Analysis: (Tools & Techniques)

Determining Quantitative Probability and Impact might
be done by:
Interviewing
Cost and time estimating
Delphi technique
Use of historical records from previous projects
Expert judgment
Sensitivity analysis – tornado diagram
Expected monetary value (EMV) analysis
Decision tree
Monte Carlo analysis (simulation)
Sensitivity Analysis
To determine which risks
have the most potential
impact to the project.
Changing one or more

elements / variables and
set other elements to its
baseline and then see
the impact.
One typical display of the

sensitivity analysis is the
tornado diagram.
Expected Monetary Value (EMV)

• Expected monetary value (EMV) is the cost or benefit of an uncertain
event. It's calculated by multiplying the monetary impact by probability.
EMV is what one could expect over time if the condition is repeated over
and over.
• For an example, let's assume that there is a carnival game in which there
are three shells but only one has a ping-pong ball under it. The game
costs $1 to play and the winner will receive $2 if he correctly picks the
shell with the ball hidden under it. There are two outcomes based on the
one-in-three chance of choosing the correct shell: either the player loses
66.66% of the time or he wins two dollars 33.33% of the time. The EVM
for this game is:
EMV = (66.66% x $0) + (33.33% x $2)

EMV = $0 + $0.67
EMV=$0.67
Decision Tree Analysis
A decision tree is a diagramming analysis technique used to help select
the best course of action in situations in which future outcomes are
uncertain.
Risk Register Updates

Update/add additional information to previous
output i.e. Risk Register, which include:
Prioritize list of quantified risks

Amount of contingency time and cost reserve needed.
Possible realistic and achievable completion dates, project cost,
with confidence level.
The quantified probability of meeting project objectives.
Trends
Plan Risk Responses
The process of developing option and action to enhance
opportunities and to reduce threats to project objectives.
Plan Risk Responses

Do something to eliminate threats before they happens.
Do something to make sure the opportunities happens.
Decrease the probability and/or impact of threats.
Increase the probability and/or impact of opportunities.
For the remaining (residual) threats that cannot be eliminated:

-Do something if the risk happens (contingency plan).
-Do something if contingency plan not effective (fallback plan)
Strategies for Threats
Avoid
Eliminate the threat entirely
Isolate project objectives from the risk’s impact
Transfer (Deflect, Allocate)
Shift some or all the negative impact of a threat to a third party.
Mitigate
Implies a reduction in the probability and/or impact of an adverse risk
event to be within acceptable threshold limits.
Accept
Deal with the risks
Project management plan is not changed
Transferring a risk will leave some risk behind.
Strategies for Opportunities

Exploit
Seek to ensure the opportunities definitely happen.
Share
Allocate some or all of the ownership of the opportunity to a third party
who is best able to capture the opportunity for the project benefit.
Enhance
Increase the probability and/or the positive impacts of an opportunity.
Accept
Not actively pursuing an opportunity
Control Risk
The process of implementing: risk response plans, tracking identified
risks, monitoring residual risks, identifying new risks, and evaluating
risk process effectiveness throughout the project.
Risk Monitoring and Control

Involves executing the risk management process to respond to
risk events.
Workarounds are unplanned responses to risk events that must be done
when there are no contingency plans.
Main outputs of risk monitoring and control are:
Requested changes.
Recommended corrective and preventive actions.
Updates to the risk register, project management plan, organizational
process assets and project documents.
Monitor & Control Risks (Tools & Techniques)
Risk audits review the overall risk management policies,
procedures, and processes. Audits review the effectiveness of the
project risk management plan. Risk audits can also refer to analyzing
whether the risk response actions were effective and what impact
they had on the project's overall risk level.
Risk Re-Assessment - Identify new risks, closing of outdated risks

(status mtgs.)
Variance & Trend Analysis / Performance Measurements- Comparing the
planned result to the actual
Reserve Analysis - Compares the amount of contingency reserves to the

remaining risk left in the project
Residual and Secondary Risks
It’s also important to identify residual and secondary

risks.
Residual risks are risks that remain after all of the
response strategies have been implemented.
Secondary risks are a direct result of implementing a
risk response
Important Terms
Mutual Exclusive: if two events cannot both occur in a single
trial.
Probability: something will occur.
Normal Distribution: common probability density distribution
chart .
Statistical Independence: the probability of one event
occurring does not affect the probability of another event
occurring.
Force majeure events or long-term events that cannot be
reasonably foreseen or controlled, sometimes called an act of
God and includes natural disasters and strikes.
Lecture 10
PROCUREMENT
The acquisition or purchase of materials,

goods, services and equipment from outside
the organization.
Project Procurement Management

Project procurement management is the process of
purchasing the products for meeting the needs of
the project scope.
It involves planning, acquiring the products or
services from sources, choosing a source,
administering the contract, and closing out the
contract.
Project Manager's Role in Procurement
The project manager must be involved in the creation
of contracts and fulfills the following key roles:
Know the procurement process
Understand contract terms and conditions
Make sure the contract contains all the project management
requirements such as attendance at meeting, reports, actions
and communications deemed necessary
Identify risks and incorporate mitigation and allocation of risks
into the contract
PROCUREMENT MANAGEMENT
Many project managers lack the knowledge and skills to
procure goods and services effectively.
Poor procurement often results in poorly delivered scope,
schedule delays, cost overruns and poor quality of the goods
and services that the project is intended to deliver.
The Sequential Procurement Processes
Plan Procurements
Conduct Procurements
Control Procurement
Close Procurements
Monitoring &
Planning
Processes

Executing
Processes
Process Groups
Control
Plan Procurement
Procurement Conduct Control Close
management
Management Procurements Procurement Procurement
Plan Procurements
Is the process of documenting project purchasing decisions,
specifying the approach, and identifying potential sellers.
Procurement planning is the process of identifying which part of
the project should be procured from resources outside of the
organization. It is concerned with determining what to procure,
when, and how.
Buyer and Seller roles

In the project procurement processes
the buyer is the entity acquiring the product,
service, or result, and the seller is the one
meeting the buyer's need.
When the project need involves expertise –something beyond
just finished goods- the need being outsourced is treated as a
subproject within the buyer’s project management plan while
the seller will develop its own full project management plan for
achieving the buyer’s objectives.
Buyer and Seller roles
Plan Procurement Management

The process of obtaining seller responses, selecting a
seller, and awarding a contract.
Plan Procurements – Tools & Techniques
Make-or-buy analysis: general management
Technique used to determine whether an
organization should make or perform a particular
product or service inside the organization or buy
from someone else.
Often involves financial analysis
Experts, both internal and external, can provide valuable inputs
in procurement decisions.
Plan Procurement (Tools & Techniques)

Contract types:
Fixed Price (lump sum)
Cost Reimbursable Contracts
Unit Price
Plan Procurements – Tools & Techniques
Fixed Price Contract
In this type of contract one price is agreed upon for all the
work.
The buyer has the least cost risk, provided the
buyer has a completely defined scope, because the risk of
higher costs is borne by the seller.
The seller is most concerned with the contract statement of
work in this type of contract.
Fixed Price Contract Variations

Fixed Price Incentive Fee Contracts (FPIF)
• There are also incentives for fixed price contracts.
• Contract = $ 1,100,000. For every month early the project is
finished, an additional $10, 000 is paid to the seller.
Fixed Price Economic Price Adjustment (FPEPA)

• Sometimes a fixed price contract allows for price increases if the
contract is for multiple years.
• Contract = $ 1,100,00 but a price increase will be allowed in year
two based on the Consumer Price Increase report for year one. Or
the contract price is $ 1,100,000 but a price increase will be allowed
in year two to account for increases in specific material costs.
Purchase Order
A purchase order is the simplest type of fixed price contract.
This type of contract is normally unilateral (signed by one party)
instead of bilateral.
It is usually used for simple commodity procurements.
Example Contract to purchase 30 linear meters of wood at $
40 per meter.
Cost-reimbursable Contract
The seller's cost are reimbursed, plus an additional amount.
The buyer has the most cost risk because the total costs are
unknown.
This form of contract is often used when the buyer can only
describe what is needed, rather than what to do.
The seller will therefore write the detailed contract
statement work.
Cost-reimbursable Contract - Variations
Cost plus Fixed Fee (CPFF)
• This is the most common type of cost reimbursable contract.

• In this type, the buyer pays all costs, but the fee (or profit) is
fixed at a specific amount.
• This helps to keep the seller's costs in line because a cost
overrun will not generate any additional fee or profit. Fees only
change with approved change orders.
• Example Contract = Cost + Fee of $ 100,000

Cost Plus Fee (CPF) or Cost Plus Percentage of Costs
(CPPC)
This type of cost reimbursable contract requires the buyer to
pay for all costs plus a percent of costs as a fee. Sellers are not
motivated to control costs because the seller will get paid profit
on every cost without limit.
Example, Contract = Cost + 10% of costs as fee.
• Cost Plus Incentive Fee (CPIF)
This type of cost reimbursable contract pays all costs and an agreed
upon fee, plus a bonus for beating the performance objectives stated
in the contract.
Cost Plus Award Fee Contracts ( CPAF) :
• The seller is reimbursed for all legitimate costs , but the majority of
the fees is only earned based on the satisfaction of certain broad
subjective performance criteria defined and incorporated into the
contract.
• The determination of the fee is solely on the subjective
determination of seller performance by the buyer, and is
generally not subject to appeals
Time and Material (T&M) or Unit Price

Effect of contract type on buyer and seller risk.
Outputs from Procurement Planning
Procurement Management Plan – describes how procurement process
will be managed.
✓Type of contract
✓Independent estimates needed?
✓Autonomy of project team
✓Standardized documents
✓Multiple provider management?
✓Incorporate with other project aspects (scheduling and
performance reporting)
Plan Procurements - Outputs

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 product or
services required
The project schedule, time period of services, and work
location.
Plan Procurements – Outputs
Source Selection Criteria: Source Selection criteria are
included in the procurement document to give the seller an
understanding of the buyer's needs and help them decide if they
should bid or make a proposal on the work.
During Select sellers, this criteria become the basis by which
the bids or proposal are evaluated by the buyer.
Selection criteria can be limited to purchase price if the
procurement item is readily available from a number of
acceptable sellers.
Plan Procurement: Output

Procurement Documents may include the following:
Information for Sellers
Background information
Procedures for replying
Guidelines for preparation of the response
Form of response required
Evaluation Criteria
Pricing forms
Contract Statement of work
Proposed terms and conditions of the contract (legal and business)
Procurement Documents
Non-Disclosure Agreement - This is an agreement between
the buyer and any prospective sellers stating what information
or documents they will hold confidential and control, and who in
their organization will gain access to the confidential
information.
Standard Contract - Companies frequently have standard,
preauthorized contracts for the purchase of goods or services.
These types of standard contracts need no further legal review
if used as they are.
Procurement Documents
• Special Provisions (Special Conditions)
• The project manager should determine what needs to be
added, changed or removed from the standard provisions, so
that the resulting contract addresses the particular needs of the
project.
• Letter of Intent- NOT a contract but a letter, without legal
binding, that says the buyer intends to hire the seller.
• Privity- Contractual relationship.
• Example - Company A hires company B to do some work for
them. Company B subcontracts to company C. The project
manager for A is at the job site and tells company C to stop
work. Generally, does company C have to listen?
Is the process of obtaining seller responses, selecting a seller
and awarding a contract.
In this process the team will receive bids or proposals and will
apply previously defined selection criteria to select one or more
sellers who are qualified to perform the work and acceptable as
a seller.
Conduct Procurement
Conduct Procurements is the process of obtaining seller responses,
selecting a seller, and awarding a contract .
Conduct Procurements – Tools & Techniques

Bidder Conferences : Bidder conferences are meetings with
prospective vendors or sellers that occur prior to the completion of
their response proposal.
Proposal evaluation techniques
Independent estimates / Should-Cost Estimate : Comparing the
cost to an estimate created in house or with outside assistance.
Advertising: Advertising is letting potential vendors know that an
RFP is available.
Internet search
Procurement Negotiations: The project manager may be involved
during negotiations to clarify project requirements, and if for no other
reason than to protect the relationship to clarify project requirements,
and if for no other reason than to protect the relationship with the
other side.
Conduct Procurements – Outputs
Selected Sellers
A seller may simply be selected and asked to sign a standard

contract
A seller may be asked to make a presentation and then, if all goes
well, go on to negotiations
The list of sellers may be narrowed down to a few
The short-listed sellers may be asked to make presentations and the
selected seller then asked to go on to negotiations
The buyer can negotiate with more than one seller
Or some combination of presentations and negotiations
Conduct Procurements – Outputs

2. Agreements:
• Agreements are known by many names: Contract,
Subcontract, Purchase order, Memorandum of
understanding .
• Is awarded to each selected seller .
• A contract can be in the form of a simple purchase order or a
complex document.
• A contract is a mutually binding legal agreement that obligates
the seller to provide the specified products, services or results
and obligates the buyer to compensate the seller.
What do you need to have a legal contract?
An offer
Acceptance
Consideration - Something of value, not necessarily money.
Legal capacity - Separate legal parties, competent parties
Legal purpose - You cannot have a contract for the sale of
illegal goods
Control Procurements
This process consists of assuring that the performance of both
parties to the contract meets contractual requirements.
The Contract Administration process concerns monitoring the
vendor’s performance and ensuring that all the requirements of
the contract are met.
Contracts are legal relationships, so it is important that legal
and contracting professionals be involved in writing and
administering contracts.
Control Procurements
Control Procurements: Inputs

Procurement Documents: contain complete supporting records
for administration of the procurement processes. This includes
procurement contract awards and the statement of work.
• Performance reports: seller performance related
documentation includes:
✓ Seller developed technical documentation and other
deliverable information provided in accordance with the terms of
the contract
✓Seller performance reports that indicate which deliverables
have been completed and which have not
Control Procurements: Inputs
Approved change requests: can include modifications to the
terms & conditions of the contract.
Work performance Information: the extent to which the quality
standards are being satisfied, what costs have been incurred,
which seller invoices have been paid, etc.
Control Procurements – Tools & Techniques

Contract Change Control System
The contract change control system defines the procedures for
how the contract may be changed.
The system is part of integrated change control.
It documents how to submit changes, establishes the approval
process, and outlines authority levels.
It includes a tracking system to number the change requests
and record their status
Procurement Performance Reviews
• Buyer conducted performance reviews examine the seller’s
performance on the contract to date.
• These reviews may be conducted at the end of the contract or
at intervals during the contract period.
• Buyer reviews examine the contract terms and seller
performance for elements such as these:
• Meeting project scope
• Meeting project quality
• Staying within project budgets
• Meeting the project schedule
Control Procurements – Tools & Techniques

Inspections and Audits - As the vendor completes the
contracted work, the buyer will need to inspect the work for
progress, compliance with contract requirements, and
adherence to agreed-to time, cost, and quality constraints.
Performance reporting- This tool and technique entails

providing your managers and stakeholders with information
about the vendor’s progress meeting the contract objectives.
Performance reporting is part of communications and should be

documented within the communications management plan.
Administer Procurements – Tools & Techniques
Payment System
✓Seller submit invoices as an input to this process, and the
payment system is the tool and technique used to issue
payment.
✓The organization may have a dedicated department, such as
accounts payable, that handles vendor payments, or it might fall
to the project manager.
✓In either case, follow the policies and procedures the
organization established regarding vendor payments.
Claims Administration
✓ A claim is an assertion that the buyer did something that has
hurt the seller and the seller asking for compensation.
✓ Another way of looking at claims is that they are a form of
seller's change requests
✓Claims can get nasty. Imagine a seller that is not making as
much profit as he hoped for, issuing claims for every action
taken by the buyer.
✓Claims administration involves documenting, monitoring, and
managing changes to the contract.
Claims Administration
Changes that cannot be agreed upon are called contested
changes.
Contested changes usually involve a disagreement about the
compensation to the vendor for implementing the change.
You might believe the change is not significant enough to justify
additional compensation, whereas the vendor believes they’ll
lose money by implementing the change free of charge.
Claims Continue
Contested changes are also known as disputes, claims, or
appeals. These can be settled directly between the parties
themselves, through the court system, or by a process called
arbitration.
Arbitration involves bringing all parties to the table with a third,
disinterested party who is not a participant in the contract to try
to reach an agreement.
The purpose of arbitration is to reach an agreement without
having to go to court.
Records Management System
A contract is a formal, legal document. Recording keeping can
be critical if actions taken or situations faced during a project
are ever in question after the work is completed.
This can happen related to unresolved claims or legal actions,
or even in order to satisfy insurance needs.
A record management system can be quite extensive, with one
person assigned just to manage these records.
They can also include indexing systems, archiving systems and
information retrieval systems for projects with extensive
documentation.
Close Procurements
This process consists of finishing all the loose ends of the contract.
This process is part of the close project process described in
integration.
Contract closure is done:

When a contract ends
When a contract is terminated before the work is completed
This process is concerned with completing and settling the terms of
the contract.
It supports the Close Project process because the Contract Closure
process determines if the work described in the contract was
completed accurately and satisfactorily.
This is called product verification
Close Procurements
Close Project verifies and documents the project outcomes just
like the Contract Closure process
Keep in mind that not all projects are performed under contract
so not all projects require Contract Closure.
However, all projects do require the Close Project process.
Since verification and documentation of the project outcomes
occur in both of these processes, projects that are performed
under contract need to have project results verified only one
time.
Close Procurements
Close Procurements : Tools & Techniques
The Contract Closure process has three tools and techniques:
• Procurement audits – structured review of entire procurement process;
identify successes and failures that warrant transfer to other procurement
items
• Records management system
• Procurement Negotiations : In all procurement relationships the final

equitable settlement of all outstanding issues, claims, and disputes by
negotiations is a primary goal. Whenever settlement cannot be achieved
by direct negotiation, some form of alternative dispute resolution (ADR)
including mediation or arbitration may be explored .
When all else fails, litigation
Close Procurements - Outputs

1. Closed Procurements:
This is formal acceptance and closure of the contract.
The buyer provides the seller with a formal written notice that
the contract has been completed. 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’s your responsibility as project manager to document the formal
acceptance of the contract.
Many times the provisions for formalizing acceptance and closing
the contract are spelled out in the contract itself.
Close Procurements - Outputs

Organizational process assets (updates) : assets that may get
updated , include but are not limited to :
Procurement File a complete set of indexed contract
documentation, including the closed contract, is prepared for
inclusion with the final
project files.
Deliverable acceptance: the buyer provides the seller with a
formal written notice that the deliverables have been accepted or
rejected .
Lessons learned documentation
CONTRACTS
An agreement between competent parties for the consideration
to accomplish lawful purpose with the terms clearly set forth.
The Procurement Process is sometimes referred to as the
Contract Process
One of the main output of the Procurement Process
RULES OF CONTRACTS
A formal agreement – buyer and seller
Oral or written – written is preferred
Clearly state all requirements
Changes –formally approved, controlled, documented
Not fulfilled until all requirements are met
Be executed by someone with capacity and authority.
RULES OF CONTRACTS Cont.

Contain an offer
Have been accepted
Provide for a consideration/payment
Be for legal purpose
Terms and conditions should define breaches, copyrights,
intellectual rights, force majeure.
BASIC ELEMENTS OF CONTRACTS
1. Mutual Agreement
There must be an offer and agreement
2.Consideration
There must be a down payment
3.Contract Capability
The contract is binding only if the contractor has the capability to perform
the work
BASIC ELEMENTS OF CONTRACTS Cont.

4. Legal Purpose
The contract must be for a legal purpose
5. Form Provided by Law
The contractor must reflect the contractor’s legal obligation to deliver
end products
Lecture 11
Project Stakeholder Management

Monitoring &
Planning
Processes

Executing
Processes
Process Groups
Control
Plan Control
Stakeholder Indentify Manage Stakeholders
Stakeholder Stakeholder
Management Stakeholder
Management
Engagement
Engagement
Project Stakeholder Management includes:

 Identify Stakeholders
 Plan Stakeholder Management
 Manage Stakeholder Engagement
 Control Stakeholder Engagement
Identify Stakeholders
 In this process, Project Manager and Project Team identify all
people or organizations impacted by the project
 Stakeholders interests may be positively or negatively
impacted by the execution or completion of the project .
(Positive and Negative Stakeholders)
 Stakeholder identification shall be carried out as early as
possible, preferably during initiation and definitely prior to
starting of planning.
 Project team shall attempt to maximize positive influences and
mitigate potential negative impacts .
 An un-identified key stakeholder can potentially turn high risk
to project.
Identify Stakeholders
Identify Stakeholders is the process of identifying all people or organizations
impacted by the project and documenting relevant information regarding their
interest, involvement and impact on project success.
Stakeholder Analysis
 A technique of systematically gathering and analyzing quantitative & qualitative
information to determine whose interests should be taken into account throughout
the project. High
•F •D
• Step 1: Identify all potential project
stakeholders and relevant Keep Satisfied Manage
information Closely
•C •G •A
• Step 2: Identify the potential impact or
Power
support each stakeholder could
generate and classify them so as to •H
define an approach strategy. •B
Monitor • E Keep
(Minimum Effort) Informed
• Step 3: Assess how key stakeholder
are likely to react or respond in
various situation
Low
Interest High
Sample grid showing classification model
This is the main output of the identify stakeholders process and
it contains all details related to the stakeholders such as name,
organizational position, location, role in the project, contact
information.
It also contains the major requirements, main expectations,
potential influence in the project. It also classify them as
internal, external, supporter, neutral, resistor etc.
Departme
Contact Role in Attitude
nt/ Main Major
Name Informa Project Company Impact Influence about the
Superviso expectations requirement
tion project
r
Plan Stakeholder Management
The process of developing appropriate management strategies

to effectively engage stakeholders through the project life cycle,
base on analysis of their needs, interest and potential impact on
project success
The benefit of this process is that it provides a clear, actionable

plan to interact with the project stakeholders to support the
project interest
Plan Stakeholder Management

This process, describes how the stakeholder community will be are
analyzed, the current and desired levels of engagement defined and
the interrelationships between stakeholders identified. It highlights
the fact that levels of engagement may change over time.
Tool & Techniques: Analytical Techniques
The current engagement levels can be compared to the planned
engagement levels required for the successful project completion
Engagement levels of stakeholders can be classified as follows:
Unaware – unaware of project and potential impacts
Resistant - aware of project and potential impacts and resistant to change
Neutral - aware of project yet neither supportive or resistant
Supportive - aware of project and potential impacts and supportive to
change
Leading - aware of project and potential impacts and actively engaged in
ensuring the project is a success
Stakeholder Engagement Assessment Matrix
The current engagement can be documented using the stakeholder Engagement

Assessment Matrix, where C indicates the current engagement and D indicate the
desired engagement
Actions and communication required to close the gap can be identified by the
project team using expert judgment
Outputs: Stakeholder Management Plan
The stakeholder management plan can be formal or informal,

highly detailed or broadly framed, based on the needs of the
project. In addition to the data gathered in the stakeholder
register, the stakeholder management plan often provides:
• Desired and current engagement levels of key stakeholders
• Scope and impact of change to stakeholders
• Identified interrelationships and potential overlap between stakeholders
• Stakeholder communication requirements for the current project phase
Outputs: Stakeholder Management Plan
Stakeholder management plan also provides:

• Information to be distributed to stakeholders, including language, format, content,
and level of detail
• Reason for the distribution of that information and the expected impact to
stakeholder engagement
• Time frame and frequency for the distribution of required information to

stakeholders
• Method for updating and refining the stakeholder management plan as the project
progresses and develops.
Manage Stakeholder Engagement
PMI emphasize on the word “ACTIVELY” when it comes to stakeholder

management
PM shall actively manage stakeholders to

Obtain project acceptance
Negotiate and influence stakeholders for decisions favorable to project
Obtain approval for change requests, if necessary
Obtain approval on deliverables
Active and proper stakeholder management = Lower the risks in your project.

Manage Stakeholder Engagement involves activities such as:
• Engaging stakeholders at appropriate project stages to obtain or confirm
their continued commitment to the success of the project.
• Managing stakeholder expectations through negotiation and

communication, ensuring project goals are achieved
• Addressing potential concerns that have not yet become issues and
anticipating future problems that may be raised by stakeholders. Such
concerns need to be identified and discussed as soon as possible
to assess associated project risks.
• Clarifying and resolving issues that have been identified.

This is the process of communicating and working with
stakeholders to meet their needs and addressing issues as they
occur.
Manage Stakeholder Engagement: Tools &

Techniques
Communication Methods : the methods of communication
identified for each stakeholder in the communication
management plan are utilized during stakeholder management
Interpersonal Skills : building trust, resolving conflict, active
listening, overcoming resistance to change ,etc.
Management Skills : management is an art of directing and
controlling a group of people for the purpose of coordinating
and harmonizing the group towards accomplishing a goal
beyond the scope of individual effort . Management skills used
by the project manager include but are not limited to :
presentation skills, negotiation, writing skills and public
speaking , etc.
Control Stakeholder Engagement
Control Stakeholder Engagement ¡s the process of monitoring overall project stakeholder
relationships and adjusting strategies and plans for engaging stakeholders.
The key benefit of this process is that it will maintain or increase the efficiency and
effectiveness of stakeholder engagement activities as the project evolves and its
environment changes.
Information Management Systems

An information management system provides a standard tool for the
project manager to capture, store and distribute information to
stakeholders about the project cost, schedule progress, and performance.
It also allows the project manager to consolidate reports from several

systems and facilitate report distribution to the project stakeholders.
Distribution formats may include

Table reporting
Spreadsheet analysis
Presentations.
Graphical capabilities can be used to create visual representations of
project performance information.
Outputs: Work Performance Information
The work performance information is the performance data

collected from various controlling processes, analyzed in
context, and integrated based on relationships across areas.
Work performance information is circulated through

communication processes.
Examples
Status of deliverables
Implementation status for change requests
Forecasted estimates to complete.
Outputs: Work Performance Information

Thus work performance data
have been transformed into
work performance information.
Data per se are not used in the

decision-making process,
because the meaning may be
misinterpreted.
Information, however, is
correlated and contextualized
and provides a sound foundation
for project decisions.

CM 651 Project Management

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CM 651 Project Management

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CM651 – Project Management

According to PMBOK a project ''is a

What is Project Management?

Project Management is the application of knowledge,

fashion. Project 1 Project 2 Project 3

• A program manager manages Coordination/

schedule of the program

management Project Success

Project, Program and Portfolio Relationship

• The project management office (PMO) is an

Role of a Project Manager

• Project managers strive to meet to balance constraints, including

• Depending on the organization structure , a project manager may

• In other cases project manager may be one of the several project

The Role of Project Manager:

Project Manager Skills

Project Manager Skills

Project Manager Skills

Project Manager Skills

Project Manager Skills

Project Manager Skills

Project Manager Skills

The project team is the group of people on whom the

• One of the keys to determining the type of organization

• One of the keys to determining the type of organization

Types of Organisational Structure

• Functional organizations are centered on specialties and

Functional Organization Structure

Projectized Organizational Structure

PM’s Power Minimal authority or Balance of authority Full authority and

Enterprise Environmental Factors

Who are Project Stakeholders

• Stakeholders have varying levels of responsibility and authority

• Project management team must continuously identify both

• Project manager must manage the influence of various

Level of cost resource use during

Examples of single-phase project:

Example of a project with two overlapping phases

Understanding Project Life Cycles

Understanding Project Management

Project Management Process Groups

Exploring the Project Management

Exploring the Project Management

Exploring the Project Management

Project Integration Management

• Project managers must coordinate all of the other

• Many new project managers have trouble looking at the

Enter phase/ Initiating Closing Exit phase/

Monitor & Control

• Develop the project management plan: Coordinate all

• Direct and manage project execution: Carry out the

Project Integration Management

• Perform Integrated Change Control: Coordinate

• Close project\ phase: Finalize all project activities to

Strategic Planning and Project

There are many ways to select a project to be initiated

Project selection methods measure the value of what the

Project Selection Methods

There are generally two categories of

• Benefit Measurement Methods (Comparative

• Constrained Optimization Methods (Mathematical

Constrained Optimization Method

• The higher the NPV, the better.

Internal Rate of Return