Project Management Capstone

Project Management
Capstone Class
Course Outline

Initiating a Project
Planning Project Work
Developing Project Schedules, Cost Estimates, and Budgets
Planning Project Quality, Staffing, and Communications
Analyzing Risks and Planning Risk Response
Planning Project Procurement
Executing Project Work
Monitoring and Controlling Project Work
Monitoring and Controlling Project Schedules and Costs
Monitoring and Controlling Project Quality, Staffing, and
Communications
Monitoring and Controlling Project Risk and Contracts
Closing the Project
Initiating a Project

Apply Project Management Processes
Create a Project Charter
Identify Stakeholders
4
Generic Product Life Cycle
Project
Start
Phase 1 Phase 2 Phase 3
Project
End
5
Inputs, Tools and Techniques, and Outputs
Inputs Outputs
Tools and
Techniques
Project Management Processes
6
Process Group Interactions
Initiating
Processes
Planning
Processes
Monitoring
And
Controlling
Processes
Executing
Processes
Closing
Processes
7
Fundamentals of project management
Unit objectives
Identify the features and attributes of a project.
Identify the steps and variables of the project management process.
8
Topic A: Project
Topic B: Project management process
9
Project
A temporary sequence of tasks with a distinct beginning and end
that is undertaken to create a unique product or service
10
Features of a project
Follows an organized process
Has goals based on specific quality standards
Uses time, money, resources, and people that are specifically
allocated to the project
Has a distinct beginning and end
Generally has time and cost constraints
Usually completed by a team of people
11
Initiating a project
A project is initiated by a person or a group who:
Recognizes a problem or an opportunity
Decides to take action
The basic purpose for initiating a project is to accomplish the
identified goals
12
Attributes of a project
Unique
Has a purpose
Has a life cycle
Has interdependencies
13
Project management
Includes directing and coordinating various resources throughout the
life of a project in order to meet or exceed stakeholder needs and
expectations
Achieves the objectives for:
Scope
Quality
Time
Cost
14
Project vs. program vs. portfolio
A program is a logical group of related projects.
Projects are managed together in order to gain benefits that are not
available from managing them separately.
A portfolio of projects that accomplish a strategic business
objective - Delivering a strategic business objective takes into
consideration multiple aspects of an organization. By this definition,
a program may require changes to the organizations structure,
policies, processes, procedures, and technology.
15
Product and project management
Product management:
Produces a product or a service in an ongoing manner
Project management:
Is based on a temporary group of processes that produces a unique
product or service
16
Project-driven organizations
Foster an environment in which all work is characterized through
projects
In non-project-driven organizations, projects are used only to
support product lines.
17
Key characteristic
People To be successful, a project requires a group of dedicated
individuals to achieve the project goal.
Progressive Elaboration
Progressive elaboration - what this means is that a project begins
with a broad scope description and received further elaboration as a
project moves forward.
The project team will elaborate on the project scope as they receive
the full set of deliverables and objectives to be accomplished.
19
Topic A: Project
Topic B: Project management process
20
Project management process
Five steps:
Initiating
Planning
Executing
Controlling
Closing
21
Initiating
Formally recognizing a new project
Establishing some project goals, objectives, and major milestones
22
Planning
Defining resources
Developing a schedule
Developing a budget
23
Executing
Coordinating personnel and resources in order to achieve the
projects goal
24
Controlling
Measuring progress toward project objectives
Taking corrective action to bring the project back within the stated
goals and objectives
25
Closing
Gaining acceptance of the final product
Bringing the project to an orderly conclusion
Reviewing the lessons learned from the project
26
Variables
Variables in the project management process:
Project scope management
Time management
Estimating costs
Quality standards
Human resource
management
Communication
Risk management
Contracts and
procurement
Stakeholder Management
Integration
27
Possible pitfalls
Inappropriate project manager
Inappropriate team members
Inadequately defined tasks
Unclear overall project expectations
Unavailability of resources
Lack of support from upper management
Project Management Environment
Defining Concepts of Project Management
What is a project?
A temporary endeavor undertaken to create a
unique product, service or result.

28
Defining Concepts of Project Management
What is project management?
the application of knowledge, skills, tools, and
techniques to project activities to meet the
project requirements.

One of the techniques used is:
Progressive elaboration
29
Copyright 2005 Element K Content LLC. All rights reserved.
PMP Exam PREP - Framework
Projects and Strategic Planning
Market Demand
Organizational Need
Customer Request
Technological advance
Legal requirements

Portfolio
------------------------------------------
Program
---------------------------------------------------------------------------------------------
Projects
Organizational
Strategy
30
Your Role as the Project Manager
Communicator
Influencer
Leader/Motivator
Negotiator
Problem Solver

31
General management skills
Financial management
Purchasing and procurement
Sales and marketing
Contracts and commercial law
Manufacturing and distribution

32
General management skills
Logistics and supply chain
Planning - strategic, tactical, operational
Organizational structures, behaviors, compensation, career paths,
personnel administration
Health and safety
Information technology

33
The Project Management Environment
Domains
Links to ongoing operations
Context of the environment
Political
Cultural
Values
Attitudes
Physical locations

34
Copyright 2005 Element K Content LLC. All rights reserved.
Product Management Life Cycle vs. Project Management Life Cycle

Creation Ideation Introduction Growth Maturity Decline
Product Management Lifecycle
Project Management Lifecycle
35
Stakeholders
Stakeholders
The people who work on the project or
The people affected by the project
Project Manager
Customer/user
Organization
Project team members
Project management team
Sponsor
PMO

36
Framework
Project
Management
Plan
(Updates)
Monitoring &
Controlling
Process
Group
Executing
Process
Group
Planning
Process
Group
Initiating
Process
Group
Closing
Process
Group
Authorized Project Concept
Approved & Baseline
Project Management Plan
Work Perf. Info
Deliverables
Deliverables
Approved Corrective Actions
Validated Defect Repair
Approved Change Requests
Approved Defect Repair
37
Framework
Initiating Process Group
Are the processes used to formally authorize a project or a project
phase.

Consists of:
Develop Project Charter

38
Framework
Planning Process Group
Are the processes used to plan and establish the management of a
successful project.

Consists of:
Develop Project Management Plan
Plan Scope Management
Collect Requirements
Define Scope
Create WBS

39
Framework

Consists of:
Plan Schedule Management
Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule
40
Framework

Consists of:
Plan Cost Management
Estimate Costs
Determine Budget
Plan Quality Management
Plan Human Resource Management
Plan Communications Management
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
41
Framework

Consists of:
Plan Risk Responses
Plan Procurement Management
Plan Stakeholder Management

42
Framework
Executing Process Group
Are the processes used to complete the work that has been planned in
the project management plan.

Consists of:
Direct and Manage Project Work
Perform Quality Assurance
Acquire Project Team
Develop Project Team
Manage Project Team
Manage Communications
Conduct Procurements
Manage Stakeholder Engagement

43
Framework
Monitoring and Controlling Process Group
Are the processes used to watch the project work and identify potential
problems.

Consists of:
Monitor and Control Project Work
Perform Integrated Change Control
Validate Scope
Control Scope
Control Schedule
Control Costs

44
Framework
Monitoring and Controlling Process Group

Consists of:
Control Quality
Control Communications
Control Risks
Control Procurements
Control Stakeholder Engagement

45
Framework
Closing Process Group
Are the processes used to formally close a project or a project phase.

Consists of:
Close Project or Phase
Close Procurements

46
PMP Framework
Project
Management
Plan
(Updates)
Monitoring &
Controlling
Process
Group
Executing
Process
Group
Planning
Process
Group
Initiating
Process
Group
Closing
Process
Group
Authorized Project Concept
Approved & Baseline
Project Management Plan
Work Perf. Info
Deliverables
Deliverables
Approved Corrective Actions
Validated Defect Repair
Approved Change Requests
Approved Defect Repair
47
48
Environment
Cultural environment Influences team
members attitudes and desire to achieve the
project goal
External environment Includes everything
outside the project, such as:
Parent organization
Political environment
Current industrial conditions
Geographical setting
Social commitments

49
Project stakeholder
An individual, a group, or an organization
involved in a project or whose interests might be
influenced as a result of project achievement

The key
stakeholders:
50
Stakeholders influence
Their need to feel appreciated throughout the
project process
Outlining specific requirements they want the
project to meet

51
Characteristics
Topic A: Project environment
Topic B: Organizational structure
Topic C: Project manager
Topic D: Project team
52
Develop Project Charter
53
Project Stakeholders
Create Project Charter

Include the project and authority identification information.
Include a clear, concise description of the business need,
opportunity, or threat that the project is intended to address.
Include summary descriptions of the product or service of the
project.
Include a description of the project's relationship to the business
need it is intended to address.
Consider any known constraints and/or assumptions.
Ensure the person with the required knowledge and authority signs
the project charter.
Distribute the signed charter to the appropriate project stakeholders.
55
Reflective Questions

1. What specific benefits would creating an effective charter bring to
your organization?

Planning Project Work

Develop a Project Management Plan
Create a Scope Statement
Develop a Work Breakdown Structure (WBS)

58
Develop Project Management Plan Process
59
Plan Scope Management
60
61
Scope Definition Process
62
Product Analysis
Technique Description
Functional
analysis
Analyzing all of the things that a product does, including primary and
related functions, to identify unnecessary functions that might drive up
cost on a product.
Value engineering
and value analysis
Identifying and developing the cost versus benefits ratio for each
function of a product. A method for controlling costs while maintaining
performance and quality standards. Very common in military and
construction contracts.
Quality function
deployment

Systems
engineering
Identifying what the customer's needs are, and translating those
needs into technical requirements. Appropriate for each stage of the
product development cycle.

Analyzing products holistically, integrating factors such as users,
usage environment, and related hardware or software with which the
product must function.
63
Alternatives generation
Lateral thinking
A creative approach to problem solving in which the team attempts
to think about a problem in new ways and generate a fresh solution.
Brainstorming
A general creativity technique for generating possible alternatives.
Brainstorming methods can be structured or unstructured in
approach. The goal is to generate as many ideas as possible from
as many team members as possible.
Delphi technique
A group technique that extracts and summarizes anonymous group
input to choose among various alternatives. Often used to arrive at
an estimate or forecast.
Create A Scope Statement

Refine the project objectives, deliverables, and product scope
description.
Reexamine the project requirements.
Review the project boundaries.
Update the preliminary project constraints, risks, and assumptions.
Create schedule milestones.
Include a revised overall cost estimate and define any cost limitations.
Identify and document known risks.
Map out the internal organization.
Document project specifications and approval requirements.
Finalize the procedure for accepting completed products.
65
Work Breakdown Structure Process

1. What are some elements that would typically be included in an
effective project management plan?

2. What are the benefits of creating a work breakdown structure for
your project management plan?

Developing Project Schedules, Cost
Estimates, and Budgets

Create an Activity List
Create a Project Network Diagram
Identify the Critical Path
Develop a Project Schedule
Estimate Project Costs
Establish a Cost Baseline
68
Activity List
Complete? Activity

Write Script

Schedule Narrator

Record Narration
Edit Narration
Mix Narration with Music
Create Master PSA
Activity

An element of project work that requires an action to produce a
deliverable.
Typically has an expected duration.
Usually consumes costs and resources.

Examples of activities:
Revise user manual
Dig footers
Reserve conference room
Plan Schedule Management
71
Activity Definition
Create Activity List

Gather inputs and resource materials.
Decompose each work package in the WBS into activities required
to produce the deliverable.
Consult records of similar projects to identify possible activities.
Consult subject matter experts about unfamiliar activity.
Ensure activities listed are necessary and sufficient to successfully
complete. the work package.

73
Activity List Example
Work Package WBS#: 1.1.3.1 Title: Initial Web site Design
Work package assigned to: Amy Phillips
Description: Approved color online comps of home page and at least one other page of
company Web site. Design should include interface elements and proposed functionality.
WBS# Activity
Responsible
Party
Estimated Duration
(Hours)
1.1.3.1.1
1.1.3.1.2
1.1.3.1.3
1.1.3.1.4
1.1.3.1.5
Research requirements
Produce paper comps
of 3 designs
Review comps & select
design
Produce online comps
of selected design
Review and approve
online comps
Historical Records Project
WBS:
2.1.4
Title:
New Sidewalk
Assigned to: Peter Singletary
Description: Install sidewalk over existing lawn.
# Activity
2.1.4.1 Excavate Lawn
2.1.4.2 Build Forms
2.1.4.3 Pour Concrete
2.1.4.4 Remove Forms
WBS:
2.2.9
Title:
Sidewalk Removal
Assigned to: Johnny Comelately
Description: Remove existing sidewalk and
replace with new grass.
# Activity
2.2.9.1 Remove Sidewalk
2.2.9.2 Replace Topsoil
2.2.9.3 Lay Sod
Historical records of two similar projects
75
Sidewalk Replacement Work Package
Activity List
WBS:
2.3.3
Title:
Sidewalk Replacement
Assigned to:
Description: Replace old concrete sidewalk (approx. 100 yds long) with
curved concrete sidewalk from front porch to street (approx. 200 yds long).
# Activity
76
Network Diagrams
Start Finish
A
D
B
E
C
F
77
Activity Sequencing
78
Activity Dependencies
Dependency Description
Mandatory Inherent to the work itself.
Discretionary Defined by the project management team.
External Depend on input from outside the project activities.
79
Precedence Relationships
Relationship Description
Finish-to-start (FS) Activity A must finish before activity B can start.
Finish-to-finish (FF) Activity A must finish before activity B can finish.
Start-to-start (SS) Activity A must start before activity B can start.
Start-to-finish (SF) Activity A must start before activity B can finish.
80
Finish-to-Start (FS) Example
A
10 days
B
4 days
A (10 days) B (4 days)
B cant start until
A is finished
14 days
81
Finish-to-Finish (FF) Example
A
10 days
B
4 days
A (10 days)
B (4 days)
B cant finish
until A finishes
A (10 days)
B (4 days)
FF
14 days (Worst Case)
10 days (Best Case)
82
Start-to-Start (SS) Example
A
10 days
B
4 days
A (10 days)
B (4 days)
B cant start
until A starts
A (10 days)
B (4 days)
SS
10 days (Best Case)
83
Start-to-Finish (SF) Example
A
10 days
B
4 days
A (10 days)
B (4 days)
A (10 days)
A must start before B
can finish
B (4 days)
10 days (Best Case)
SF
Lag

The permit application takes six weeks to process.
The adhesive must dry until its tacky before the laminate can be
installed.

85
Finish-to-Start (FS) Relationship with Lag
A
10 days
B
4 days
B (4 days)
Lag
(4 days)
A (10 days)
Lag 4
18 days
86
Start-to-Start Relationship with Lag
A
10 days
B
4 days
A (10 days)
B (4 days)
Lag
(3 days)
B cant start until A starts
Lag 3
10 days
87
Lead Example
A
8 days
B
6 days
A (8 days)
B (6 days)
4 days
FS-4
10 days
88
PDM Diagram
Start
Finish
A B
C
D
E
F G H I J
89
Blank Activity Precedence Chart
WBS:
2.3.3
Title:
Assigned to: Jack Materman
# Activity Predecessor
2.3.3.1 Remove Sidewalk
2.3.3.2 Excavate Lawn
2.3.3.3 Build Forms
2.3.3.4 Pour Concrete
2.3.3.5 Replace Topsoil
2.3.3.6 Lay Sod
2.3.3.7 Remove Forms
90
Completed Activity Precedence Chart
WBS:
2.3.3
Title:
Assigned to: Jack Materman
# Activity Predecessor
2.3.3.1 Remove Sidewalk 3.3.4.4
2.3.3.2 Excavate Lawn 2.3.3.1
2.3.3.3 Build Forms 2.3.3.2
2.3.3.4 Pour Concrete 2.3.3.3
2.3.3.5 Replace Topsoil 2.3.3.3
2.3.3.6 Lay Sod 2.3.3.5
2.3.3.7 Remove Forms 2.3.3.4 and 2.3.3.6
91
Completed Sidewalk Replacement Work
Package Network Diagram
2.3.3.1

Remove
Old Sidewalk
2.3.3.2

Excavate
Lawn
2.3.3.3

Build
Forms
2.3.3.7

Remove
Forms
2.3.3.4

Pour
Concrete
2.3.3.5

Replace
Topsoil
2.3.3.6

Lay
Sod
92
Activity Resource Estimating

Determine what resources are necessary to complete each activity.
Determine what quantity of resources is necessary to complete each
activity.
Generate possible alternatives for unavailable resources.
Analyze the scope statement.
Consider organizational policies that could affect resource
acquisition and usage.
Identify and use expert judgment resources.
Analyze the resources already available.
Activity Duration Estimates

Number of work units required to complete the activity.
Assumptions made when making the estimates.
Range of variance for the estimate.

95
Activity Duration Estimating
Analogous Estimating

The amount and reliability of historical information.
The similarity of the historical project on which the estimates are
based.
The expertise and relevancy of the expert judgment used to make
the estimates.


Involve the work package owners.
Consult historical information.
Determine which work unit you will use.
Consider resource requirements and capabilities
Determine the appropriate estimation method to use.
Modify the constraints and assumptions from the other planning
processes.
Verify the accuracy of your estimates.
Consider the need for reserve time.
Include the list of assumptions made in the creation of estimates.
Include a range of variance for each estimate.
98
Critical Path
99
Schedule Development
100
Schedule Network Analysis Methods
Method Description
Critical path (CPM)
Uses a sequential finish-to-start network logic and calculates one early and
late start and finish date for each activity using a single duration estimate.
Critical chain
Considers resource limitations and adjusts the schedule as appropriate to
work within those limitations.
What-if scenario
Allows you to plan for unexpected issues or problems that will interfere with
the schedule.
Resource leveling
Allows you to readjust the work as appropriate and addresses scheduling
activities when critical resources are only available at certain times.
101
Project Schedule
102
Network Diagram with Dates Example
ES
0
EF
10
LS
0
LF
10
DU
10
4.2.1
Activity
A
ES
10
EF
25
LS
10
LF
25
DU
15
4.2.2
Activity
B
ES
61
EF
66
LS
61
LF
66
DU
5
4.2.8
Activity
H
ES
37
EF
50
LS
48
LF
61
DU
13
4.2.5
Activity
E
ES
29
EF
37
LS
40
LF
48
DU
8
4.2.4
Activity
D
ES
25
EF
29
LS
36
LF
40
DU
4
4.2.3
Activity
C
ES
25
EF
41
LS
25
LF
41
DU
16
4.2.6
Activity
F
ES
49
EF
61
LS
49
LF
61
DU
12
4.2.7
Activity
G
3 Feb 14 Feb 14 Feb 7 Mar 28 Apr 6 May
7 Mar 31 Mar 10 Apr 28 Apr
7 Mar 13 Mar 13 Mar 25 Mar 25 Mar 13 Apr
FS 8
103
Fast-Tracking
Develop Product
Develop Product
Write Manual
Write Manual
Normal
Fast-tracked
104
Crash Costs Example
Normal
Time
(wk)
Crash
Time
(wk)
Normal
Cost
($)
Crash
Cost
($)
Crash
Cost
($/wk)
A 10 8 15,000 23,000 4,000
B 12 11 10,000 14,500 4,500
C 8 6 5,000 8,000 1,500
D 6 3 6,000 7,500 500
E 9 6 12,000 18,000 2,000
Totals 45 34 48,000 71,000 Totals
105
Plotting Crash Costs
70,000
65,000
60,000
55,000
50,000
45,000
32 34 46
Total Project Duration (weeks)
T
o
t
a
l

P
r
o
j
e
c
t

C
o
s
t

(
$
)

Minimum Total Crash Cost
Crash B
Crash A
Crash E
Crash C
Crash D
36 38 40 42 44
Normal Operations
106
Critical Path Activity
B
(6)
C
(6)
D
(6)
E
(10)
F
(20)
A
(13)
G
(5)
107
Calculated Crash Costs per Week
Normal
Time
(wk)
Crash
Time
(wk)
Normal
Cost
($)
Crash
Cost
($)
Crash
Cost
($/wk)
A 13 10 25,000 43,000 6,000
B 6 4 2,000 4,000 1,000
C 6 5 3,000 5,000 2,000
D 6 2 3,000 4,000 250
E 10 7 3,000 9,000 2,000
F 20 13 50,000 64,000 2,000
G 5 3 6,000 8,000 1,000
108
Simulation
Monte Carlo analysis
Uses the optimistic, most likely, and pessimistic estimates for
variables in the model and simulates various outcomes of the
project schedule to provide a statistical distribution of the
calculated results.
What-if analysis
Simulates different scenarios using the project's logic network to
assess the feasibility of the schedule under adverse conditions.
Develop a Project Schedule

Perform a mathematical analysis to determine the time periods
within which the activities could be scheduled.
Evaluate constraints and assumptions made during other planning
processes.
Consider the availability of your resources.
Consult project and resource calendars and assign dates to
activities.
Calculate possible project durations under different assumptions
using simulation.
Consider international issues, if applicable.
Select the most appropriate project management software.
Develop a Project Schedule (cont.)

Review rough drafts of the schedule with the project team.
Choose the format in which youll publish the schedule.
Distribute the preliminary schedule to appropriate parties.
Perform schedule compression, if applicable.
Review any schedule changes with key stakeholders.
Baseline the schedule and distribute to the team.
Plan Cost Management
112
Cost Estimating
113
Estimating Techniques Pros and Cons
Technique Pros Cons
Analogous
Can ensure no work is inadvertently
omitted from work estimates.
Can sometimes be difficult for lower-
level managers to apportion cost
estimates.
Bottom-up
Is very accurate and gives lower-
level managers more responsibility.
May be very time consuming and
can only be used after the WBS has
been well-defined.
Parametric
Using parametric models is not time
consuming.
May be inaccurate, depending on
the integrity of the historical
information used.
Estimate Project Costs

Involve the work package owners.
Gather relevant input information that may help you prepare the
estimates.
Determine which estimating technique to use.
Look for alternative costing options.
Determine the units of measure that will be used.
Consider possible risks that could impact cost.
Ensure all cost estimates are assigned to the appropriate account
according to the chart of accounts.
Make sure your cost estimates include key elements.
115
Cost Budgeting
116
Cost Baseline
Cost
Time
Planned Costs
117
Cost Assignment Methods
Method Description
0/100 percent rule No credit is given to work until it is completed.
50/50 percent rule
Fifty percent credit is given when the activity begins and fifty percent
credit is given when the work is completed.
Percentage
complete rule
Completion percentages are estimated and assessed at specific
reporting intervals.
Weighted
milestones
The total work package value is divided up and assigned to
milestone intervals within the work package.
Establish a Cost Baseline

Gather inputs you will need to establish the baseline.
Determine when activities will take place using the project schedule.
Using one of the four methods of assigning costs, allocate funds for
each activity or work package for the time period in which they will
occur.
Consider adding contingency amount to accommodate the risk of
incurring extra expenses.
Total the costs for each time period.
Plot the costs for each time period.
Publish and distribute the cost baseline to the appropriate
stakeholders.

1. What are some of the different ways of identifying the critical path of
a project?

2. What are some elements of a typical schedule management plan?
Planning Project Quality, Staffing, and
Communications

Create a Quality Management Plan
Document Roles, Responsibilities, and Reporting Relationships
Create a Communications Management Plan

121
Quality Planning
Quality

Total Quality Management (TQM)
Standards and regulations
ISO 9000 Series
Standards example
123
Cost of Quality
Type of Cost Description
Prevention
The up-front costs of programs or processes needed to meet
customer requirements, or to design in quality.
Appraisal
The costs associated with evaluating whether the programs or
processes meet requirements.
Failure
The costs associated with making the product or service acceptable
to the customer after it fails internal testing and before it's delivered
to the customer
124
Cause-and-Effect Diagram
Machine Method Material
Rejected
Images
Non-standard
Software
Personnel Environment
Mac or PC
Wrong specs
Incompatible
File formats
Poor training
No stylebook
Inexperience
Overworked
Poor specs
Late
Storyboards
Low morale
Noise
Measurement
125
Process Flowchart
Pressurization test
X-ray the weld to
detect micro-fractures
Fractures
detected
?
Connect pressure unit
to open end of pipe
Pressurization test
Pressurization test
Yes
No
Yes
No
C
A
B
Grind out the old weld
Prepare the weld
surface
Apply the new weld
Test complete
Time
elapsed?
Leaks
detected?
Benchmarking

Which products or services to offer and which features should be
included?
What processes are other groups using to achieve customer
satisfaction?
What metrics or goals are used to measure the processes or
products that achieve customer satisfaction?

Design of Experiments

Which variable has the greatest effect?
What is the relationship between each variable and the quality
(customer-focused) specifications?
What is the best value for each variable in order to optimize quality
or value?

Create a Quality Management Plan

Review the organizations quality policy.
Review the product description to identify customer/stakeholder
quality.
Determine cost of quality trade-offs.
Ensure your quality management plan:
Describes the resource required to implement quality management.
Includes quality management roles and responsibilities.
Is as detailed and formal as required, based on the project needs.

129
Human Resource Planning
130
Human Resources Plan
Item Description
Staff acquisition
Consider whether you will use team members from within the
organization or from external sources, the costs associated with the
level of expertise required for the project, and physical location of
resources.
Timetable
Optimize the use of people on the project to keep the project on time
and within budget.
Release criteria
Develop a method and timetable for releasing resources to help
control project costs by using team members expertise or skills as
they are needed.
Training needs
A training plan can be developed for team members who need to
improve their competency levels or who may need to obtain
certifications that will benefit the project.
Recognition and
rewards
Create incentives for meeting milestones or other project
deliverables, which can have a positive effect on morale
Compliance
Any compliance issues should be stipulated in the staffing
management plan.
Safety
Projects performed where specific safety precautions must be taken
can have documented policies and procedures for the protection of
team members.
131
Communications Planning
Communications Technology

How quickly must the information reach the audience?
Will there be feedback from the communication?
What technology will the audience need to receive the
communication?
Are there technical difficulties or learning curve issues to address?
Are there access or security issues with the communications
technology?
Is the particular mode of technology likely to become outdated?
What is the relative cost of each technology?

Create a Communications Management
Plan

Determine the communication needs of project stakeholders.
Analyze the value to the project of providing the information.
Evaluate any constraints and assumptions.
Determine the appropriate communications technologies to use for
communicating project information.
Ensure the communications management plan details who gets
what information when and in what format.
Integrate the communications management plan into the overall
project plan.
Distribute the communications management plan to project
stakeholders.

1. What specific benefits would enlisting stakeholder support bring to
your quality, resource, and communications planning efforts?

2. What are some factors you will consider when determining a
structure for your quality organization?

Analyzing Risks and Planning Risk
Response

Create a Risk Management Plan
Identify Project Risks and Triggers
Develop a Risk Response Plan
136
Risk Management Plan
Risk

Risk Components
A measure of probability that the risk event will occur.
The impact of the risk occurring on a project.

Risk Classifications
Business risk versus insurable risk.
Effect-based classification.
Source-based classification.
Level of uncertainty.

138
Levels of Uncertainty
Type Description
Known
Items that you are aware of and that will affect you, but you have
no control over.
Known-unknown
Items that will affect you, although you are not able to predict how
or how much they will affect you.
Unknown-unknown Items beyond your ability to foresee.
139
Risk Tolerance
Classification Description
Risk-averter Not likely to take a risk that is considered a high risk.
Risk-seeker
Prefers an uncertain outcome and may be willing to pay a penalty
to take a high risk.
Risk-neutral Tolerance to risk is proportional to the amount of money at stake.
140
Decision-Making
Element Description
Certainty
Completely sure of the states of nature to be faced and their
respective payoffs.
Risk
Known states of nature and their respective payoffs, but
probability must be assigned to the occurrence of each state of
nature.
Uncertainty
Each state of nature must be estimated and payoffs may be
unknown.
Create a Risk Management Plan

Determine how you will organize your projects risk management
team.
Conduct risk planning meetings to develop the risk management
plan.
Establish a budget for risk management.
Consult your organizations risk management policy for compliance.
Use a risk management plan template, if available.
Describe the approaches, tools, and data sources that may be used
to perform risk management activities for the project.
Determine the schedule for performing risk management activities.
Determine how your team will document risk response efforts.
Determine how lessons learned will be documented.
Include organizational and stakeholders risk thresholds.

142
Project Risks and Triggers
143
Risk Identification
Risk Categories

Technical changes
Changes to industry standards during a project
Reliance on unproven or complex technology
Unrealistic performance goals
145
Information-Gathering Techniques
Brainstorming
Used to identify overall project risks or may focus in on the
risks within a particular project segment or work package.
Delphi technique
Generates a consensus among project risk experts who
anonymously submit their risk list to a facilitator.
Interviewing
Used to get information from people with a wide experience
across many projects.
Root cause identification Used to find and group the risks by cause.
Strengths, weaknesses,
opportunities, and threats
(SWOT) analysis
Examines the project from the perspective of strengths,
weaknesses, opportunities, and threats.
Identify Project Risks and Triggers

Review outputs from other planning processes.
Use one or more risk identification techniques to identify risks and
their possible triggers.
Use a consistent method to identify project risks and triggers.
Think outside the box.
Apply the method to identify project risks and triggers consistently.
Consult relevant historical information.
Group identified risks into categories.
Determine triggers for each identified risk.

147
Qualitative Risk Analysis
148
Probability Scale
No
Probability
Certainty
0 .1 .3 .5 .7 .9 1.0
149
Probability/Impact Risk Rating Matrix
1.35
0.75
0.15
4.95
2.75
0.55
7.65
4.25
0.85
0
.
9

V
e
r
y

H
i
g
h

0
.
5

M
e
d
i
u
m

0
.
1

V
e
r
y

L
o
w

Very Low
1.5
Medium
5.5
Very High
8.5
P
r
o
b
a
b
i
l
i
t
y

Impact

Examine the list of identified risks.
Analyze the data available for each risk to assign a data precision
ranking score.
Determine the organization's risk threshold for this project.
Analyze the assumptions identified during risk identification as
potential risks.
Analyze the probability and impact of each identified risk using well-
defined probability and impact scales.
Determine the risk factor scores of each risk using a
probability/impact risk rating matrix.
Prioritize the risks according to the risk management plan.
Identify risks that require additional analysis.
Determine the overall risk ranking for the project.
Determine all changes to the risk register.
151
Quantitative Risk Analysis
152
Quantitative Analysis Methods
Method Description
Sensitivity analysis
Places a value on the effect of changing a single variable within a
project by analyzing that effect on the project plan.
Expected monetary
value (EMV)
analysis
Assesses the average outcome of both known and unknown
scenarios.
Decision tree
analysis
Factors both probability and impact for each variable, indicating
the decision providing the greatest expected value when all
uncertain implications and subsequent decisions are quantified.
Modeling and
simulation
Uses models that calculate potential impact of events on the
project, based on random input values.
153
Decision Tree
B $125,000

Consult historical information.
Use the appropriate interviewing technique and obtain probability
distributions.
Depict the distributions in a PDF.
Perform a sensitivity analysis.
Use decision tree analysis technique.
Conduct a project simulation.
Prioritize the quantified risks.
155
Risk Response Planning
156
Negative Risk Strategies
Strategy Description
Risk avoidance
Involves changing the project plan to prevent a potentially
detrimental risk condition or event from happening.
Risk transference
Shifts the impact of a risk event and ownership of the risk
response to a third party.
Risk mitigation
Attempts to reduce the probability or impact of a potential risk
event to an acceptable level.
157
Positive Risk Strategies
Strategy Description
Risk exploitation
Often used when a project team wants to make sure that a
positive risk is fully realized.
Risk sharing
Entails partnering up with another party in an effort to give
your team the best chance of seizing the opportunity.
Risk enhancement Attempts to increase the probability that an opportunity will occur.
Develop a Risk Response Plan

Examine each identified risk to determine its causes and how it
might affect project objectives.
Brainstorm possible response strategies for each risk.
Choose the response strategy that is most likely to be effective for
each identified risk.
Develop specific actions for implementing the chosen strategy.
Identify backup strategies for risks with high risk factor scores.
Determine the amount of contingency reserves necessary to deal
with accepted risks.
Determine how much of a contingency reserve you should set aside
for unknown risks.
Consult the risk management plan for the description of the content
and format of the risk response plan.
Incorporate the risk response plan into the overall project plan.
Examine trends in analysis results that may guide response
strategies.


1. How could you and your organization benefit from comprehensive
risk panning?

2. What tools and techniques could you use to effectively identify,
rank, prioritize, and quantify risks for future projects you manage?

Planning Project Procurement

Prepare a Contract Statement of Work
Prepare a Procurement Document

161
Plan Procurements
Specifications
Specification Type Description
Design Detail what is required in terms of physical characteristics.
Performance
Specify measurable capabilities the end product must achieve in
terms of operational characteristics.
Functional
Define what the deliverable is required to do, but not necessarily
how to do it.
163
Make-or-Buy Analysis
Question Consideration
How will the
options affect
project cost, time,
or quality?
For instance, if current personnel must be retrained for services
requiring a new skill set, it may be less expensive to outsource
those services.
Will this service be
an ongoing need
for the company?
If the organization will continue to need a specific skill set--even
for future, unrelated projects--it may be a worthwhile investment to
train current personnel to perform that service.
Do the project's
time constraints
accommodate the
learning curve
inherent to newly
trained personnel?
While it may make financial sense to develop an in-house solution,
there may not be enough time to train personnel and/or implement
the necessary policies and equipment to produce that solution.
164
Contracts
Contract Type Description
Fixed-price
Seller agrees to perform the work at the negotiated contract value.
Also known as a lump-sum contract.
Cost-reimbursable
Seller receives a refund of the expenses incurred while providing a
service or producing a product, plus a fee representing seller profit.
Time and Material
(T&M)
Buyer pays to the seller a pre-negotiated hourly rate and full
reimbursement for materials used to complete the contract.
Prepare a Statement of Work (SOW)

Review the product description to ensure that you fully understand
the scope of the work being procured.
Consult technical experts to clearly and concisely define
specifications.
Use a standard form or template, if available.
Present the information in a logical sequence.
Use consistent terminology and level of detail throughout the SOW.
Determine whether any collateral services will be required of the
seller.
Determine the acceptable criteria for the product or service.
Make sure your SOW includes all key elements.
Have a knowledgeable third party review the SOW for completeness
and correctness.
166
Evaluation Criteria
Objective Criteria Subjective Criteria
Ph.D. chemist with at least five years
experience in chromatographic
research
Experienced laboratory chemist with background
in chromatography
80,000 - 90,000 square foot storage
area within three miles of Dallas-Fort
Worth Airport
80,000+ square foot storage area near Dallas-
Fort Worth Airport
Prepare a Procurement Document

Examine the procurement need and determine which procurement
document to use.
Use standard procurement forms or templates if available.
Develop a strong set of evaluation criteria based on the real needs
of your project.
Leave yourself some room to select from a range of capabilities and
experience.
Determine how you want the prospective sellers to respond.
Examine the relevant SOW and modify if necessary.
Ensure the procurement document is structured to facilitate
consistent, comparable responses from sellers.
Include other relevant information.


1. How could your organization benefit from procurement and
solicitation planning?

2. What tools and techniques could you use to prepare better
statements of work and procurement documents for future projects
you manage?
Plan Stakeholder Management
Executing Project Work

Manage Project Execution
Develop the Project Team
Distribute Project Information
Request Seller Responses
Select Sellers

170
171
Direct and Manage Project Execution
171
Project Management Information System
(PMIS)

Includes formal and informal techniques.
May be computerized or manual.
Collects information on what work has and has not been
accomplished in each work package.
Collects information on how actual work results compare with
planned work results.
172
Common PMIS Problems

Reacting to lagging indicators.
Managing symptoms rather than problems.
Over-reliance on PMIS communication.
Invalid data in the PMIS.
Too much information.

173
Directing and Managing Project Execution

Comply with organizational policies and procedures.
Design and implement a work authorization system to formally
sanction work to commence on an activity or deliverable.
Create a PMIS that is workable for your project.
Assign responsibility for day-to-day operation of the PMIS.
Evaluate the effectiveness of the PMIS for your project.

174
175
175
176
Quality Audits
Topic Description
Quality
management
policy
May be evaluated to determine how well management uses quality
data and how well others in the organization understand how the
data is being used.
Collection and use
of information
May be evaluated to determine how well the project team is
collecting, distributing, and using quality data.
Analytical methods
May be evaluated to determine if the best analytical methods are
being used consistently and how well their results are being used.
Cost of quality
May be evaluated to determine the most effective proportion
between prevention, inspection, and costs of repair or rework.
Quality process
design
May be evaluated to determine how process design, process
analysis, and statistical process control should be used to establish
and improve the capability of a process.
176
Performing Quality Assurance

Ensure that qualified auditors conduct quality audits.
Use one or more quality assurance tools and techniques to
determine the causes of project quality problems.
Identify and implement the appropriate actions to take to increase
the efficiency and effectiveness of the project teams work results to
improve quality.

177
178
178
179
Develop Project Team
179
180
Team Development
Stage Description
Forming
Allowing team members to get to know each other and trust one
another.
Storming Resolving conflict and achieving consensus.
Norming
Less structured and more informal focusing on maintaining
momentum.
Performing
Less structured and more informal focusing on sustaining
momentum.
180
Reward and Recognition

Tied to performance.
Based on the results of a pre-established evaluation process.
Reward outcomes that are within the team members control.
Consider cultural differences when providing recognition.

181
182
Co-location
Co-located Teams Virtual Teams
Improved communication
Shared team identity
Enhanced team performance
Enhanced team spirit
Hampered communication
Difficulty bonding
Lack of team identity
Lose sight of team members contributions
182
Training

Provide specific performance targets.
Present relevant information and opportunities for practice.
Provide feedback to the trainee during training.
Provide an evaluation mechanism.

183
184
Conflict Management Approaches
Item Description
Confrontation
Identifying the underlying problem and working out solutions in a
way that allows all parties to work through their disagreements.
Compromise Finding a middle ground that satisfies all parties to some degree.
Smoothing
De-emphasizes differences between points of view and focuses on
commonalities.
Forcing Requires others to yield to the point of view of one side or another.
Withdrawal
Avoiding or retreating from the conflict or potential conflict and
allowing the involved parties to work out the conflict on their own.
184
Developing the Project Team

Recognize the project teams current stage of development and be
proactive in making the team as productive as possible.
Develop and implement a formal reward and recognition system tied
to performance.
Consider co-location to enhance the teams ability to perform
together and improve communication.
Provide appropriate training to help team members gain new or
enhanced skills.
Manage conflict using the appropriate approach based on the
circumstances and individuals involved.

185
Manage Project Team
186
Managing a Project Team

Establish good communication among team members.
Monitor performance of team members on an ongoing basis.
Consider having a quality audit.
Manage conflict within the team.
Establish an issues log to track and assign project issues.
187
188
Manage Communications
188
Distributing Project Information

Create and distribute planned requests for project information in
accordance with the communications management plan.
Use effective communication skills to exchange information.
Use an information retrieval system to provide stakeholders access
to project information.
Select the appropriate information distribution method for distributing
project information.
Monitor the communications system for feedback to ensure
messages are getting through as planned.
Analyze effects on project execution and control when unexpected
information requests surface.

189
Manage Stakeholder Expectations

Follow the communications plan and obtain stakeholder feedback.
Hold meetings with stakeholders.
Be flexible in communications for senior management.
Assign, track, and resolve open issues.
Process change requests in order to update the communications
plan.
Take corrective action to bring project performance in line with
stakeholder expectations.
Document lessons learned.
190
191
191

Gather and review all of your procurement documents.
Obtain or develop a qualified sellers list.
Determine how and to whom you will request seller responses.
Hold a bidders conference to allow prospective sellers to ask
questions and acquire information.

192
193
Sample Weighted Scorecard
193
194
Contract Negotiation
Stage Description
Introduction
All parties become acquainted and the overall attitude of the
negotiation is establishednormally led by the buyers team leader.
Probing Each side attempts to learn more about the others real position.
Bargaining
Give-and-take discussions take place to arrive at the best possible
agreement for all.
Closure
The tentative agreement is revised and everyone has an opportunity
to tweak the results.
Agreement
The team tries to ensure that all parties clearly understand and
agree to all terms and conditions of the contract.
194
195
Manage Stakeholder Engagement

Control and Monitor Project Work
Manage Changes to Performance Baselines
Review Deliverables and Work Results
Control Project Scope
196
197
Monitor and Control Project Work
197

Compare and evaluate project performance to the project plan.
Analyze, track, and monitor risks.
Maintain accurate information.
Provide information to support status reporting, progress, and
forecasting.
Provide forecasts to update recent cost and schedule information.
Monitor the execution of approved changes.
198
199
Integrated Change Control
200
Causes of Project Changes
Cause Description
Inaccurate initial
estimates
Inaccuracies may range from lack of experience, information, or
precedence to inaccurate data, excessive optimism, technological
difficulties, and unreliable resources.
Specification
changes
Project work can open up new avenues of development and design
that were not considered during the initial planning of the project
work and scope.
New regulations
New governmental or industry-specific regulations may be enacted.
This can be especially true for very lengthy projects.
Change Control System

What will be measured?
What standards will be used?
How much variance is allowable?
How and when will team members report measurements results?
What corrective actions will be taken?
How will information and updates be recorded and communicated?

201
Revision Request Example
202
Validate Scope
203
Inspection

Compare the baseline specifications, schedules, and budgets to
actual project costs.
Determine the likelihood that remaining deliverables will be
completed as projected.
Identify actions needed to ensure work results will meet
specifications, scope, schedule, and budget goals.
204
Reviewing Deliverables and Work Results

Prepare for scope verification inspection.
Conduct an inspection to review deliverables and work results.
Prepare an inspection report.
Provide the report to key stakeholders.
Distribute formal acceptance documentation to project stakeholders
according to the communications management plan.

205
206
Scope Control
206
Controlling Project Scope

Develop and implement a scope change control system.
Evaluate change requests.
Identify and document corrective actions to bring expected future
performance in line with planned performance.
Ensure formal agreements are reached and new specifications
detailed when project scope is expanded.
Revise cost, schedule, or quality baselines to reflect changes, if
necessary.
Use performance measurement techniques to monitor changes.

207

1. How have you prepared for a scope verification inspection? Were
your efforts successful? Why or why not?

2. Are project control processes in your organization effective? Why or
why not? How can they be improved?

208
Monitoring and Controlling Project
Schedule and Costs

Control the Project Schedule
Control Project Costs
209
210
Schedule Control
210
EVM Equations
Measurement Equation
Schedule variance SV = EV - PV
Schedule performance index SPI = EV / PV
Cost variance CV = EV AC
Cost performance index CPI = EV / AC
211
Playground Construction Gantt Chart
Activity
Est.
Cost
A $6,000
B
C
D
E
F
$50,000
$12,000
$16,000
$25,000
$10,000
1 2 3 4 5 6 7 8
Reporting Periods
Status to Date
Planned duration
Actual work completed to date
212
213
Software Development Gantt Chart
Status to Date
Activity Status
A F
B
C
D
E
F
F
F
NF
NF
NS
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Float
Weeks
F
NF
NS
= Finished
= Not Finished
= Not Started
Scheduled duration
Actual duration
213
214
Schedule Control Chart
1 2 3 4 5 6 7 8
Schedule Status
Ahead of
Schedule
0
Behind
Schedule
D
u
r
a
t
i
o
n

U
n
i
t
s

Reporting Periods
214
215
Schedule Variance
Variable Description
SV
The measured difference between the planned or scheduled
completion of an activity and the actual completion of that activity.
EV
The composite measurement of both actual cost and time
performance in relation to scheduled or planned cost and time
performance.
PV
The budgeted portion of the approved cost estimate to be spent
during a specific time period to complete the scheduled work.
SV = EV PV
215
216
Normal SPI Curve
1 2 3 4 5 6 7 8
Schedule Status
SPI 1.0
Reporting Periods
216
217
Potential SPI Curve for Construction
Project
1 2 3 4 5 6 7 8
Schedule Status
SPI 1.0
Reporting Periods
217
Controlling the Project Schedule

Develop and implement a schedule change control system.
Use performance measurement techniques to monitor changes and
compare actual schedule performance to planned performance.
Analyze the results of your performance measurements.
Identify and document corrective actions taken to bring expected
future project schedule performance in line with planned
performance.
necessary.

218
219
Cost Control
219
220
Graphic Performance Report
220
221
Performance Reviews
Variance analysis Comparing actual project performance to projected performance.
Trend analysis
Inspecting project performance over a period of time to determine if
performance is increasing or decreasing.
Earned value
technique
Comparing projected performance to actual performance.
221
222
Cost Variance (CV)
1 2 3 4 5 6 7 8
Status to Date
Reporting Periods
500
400
300
200
100
$

(
K
)

(AC )
(EV )
CV
c
c
222
223
Cost Performance Index (CPI)
1 2 3 4 5 6 7 8
Schedule Status
CPI 1.0
Reporting Periods
223
224
EAC
Common Formulas Description
EAC = AC + ETC
This method requires making a new estimate to complete
(ETC) all remaining project work and adding that estimate to
the actual costs (AC) incurred to date.
EAC = AC + BAC - EV
This method uses the sum of the actual costs (AC) to date and
the budget at completion (BAC) minus the earned value (EV)
of work completed to date.
EAC = (AC +(BAC-
EV)/CPI)
This method involves adding the actual costs (AC) to the
difference of the budget at completion (BAC) and the earned
value (EV) and then dividing that value by the cumulative cost
performance index (CPI).
224
Controlling Project Costs

Develop and implement a cost change control system.
Use performance measurement techniques to monitor changes and
compare actual cost performance to planned performance.
Analyze the results of your performance measurements.
Identify and document corrective actions to take to bring expected
future project cost performance in line with planned performance.
necessary.
Use performance measurement techniques.

225
226
Cost Baseline
Week
Total
Budgeted
Cost (K)
1 2 3 4 5 6 7 8 9 10
Conduct Planning Meetings 6 2 1 2 1
Arrange Location 7 3 4
Arrange Staffing 5 2 3
Publicize Event 7 1 1 1 1 3
Hold Event 3 3
Total 28 5 4 2 4 1 3 1 2 3 3
Cumulative 5 9 11 15 16 19 20 22 25 28
226

1. What performance measurement techniques have you used to
measure schedule performance? What did those measurements tell
you about the schedule performance?

2. How could using earned value management help you to control
project costs on future projects?

227
Monitoring and Controlling Project Quality,
Staffing, and Communications

Perform Quality Control
Manage Project Team
Report Project Performance
Manage Stakeholders

228
229
Perform Quality Control
229
Variability Above the Upper Control Limit
(UCL)
UCL
Indicates Instability
LCL
UCL
LCL
X X
230
231
Variability Below the Lower Control Limit
(LCL)
UCL
Indicates Instability
LCL
UCL
LCL
X X
231
232
Pareto Diagram Example
Causes of Failure
100%
60%
80%
40%
0%
20%
400
240
320
160
0
80
A B C D E
#

F
a
i
l
u
r
e
s

C
u
m
u
l
a
t
i
v
e

P
e
r
c
e
n
t
a
g
e

o
f

F
a
i
l
u
r
e
s

232
Statistical Sampling

Attributes sampling data is data that is counted.
Number of employees participating in profit sharing.
Number of customer complaint calls.
Number of returned items.
Variables sampling data is data measured on a continuous scale.
Time
Temperature
Weight

233
Performing Quality Control

Conduct inspections to detect quality errors as work results are
produced.
Use Pareto diagrams to focus corrective actions on the problems
having the greatest overall effect on quality performance.
Use control charts to analyze and communicate the variability of a
process or project activity over time.
Identify ways to eliminate causes of unsatisfactory results to
minimize rework.
Initiate process adjustments.
Continue to monitor, measure, and adjust quality throughout the
project life cycle.

234
235
Control Communications
235

1. What quality control methods have you used on projects that you
have managed? Were they effective? Why or why not?

2. What types of performance reports have you prepared? Were they
effective for the audience and information being reported? Why or
why not?

236
Monitoring and Controlling Project Risk and
Contracts

Monitor and Control Project Risk
Administer a Contract

237
238
Risk Monitoring and Control
238
Monitoring and Controlling Project Risk

Consult the risk response plan to identify risks and triggers.
Monitor the environment for any new risks.
Monitor the effectiveness of the risk response, contingency, and
fallback plans.
Deal with unforeseen risks by systematically planning a reasoned
response.
Update project documentation as changes are indicated.
Manage the contingency reserve.

239
240
Control Procurements
240
Contract Change Requests
Change Description
Administrative
These are the non-substantive and most common changes to the
way the contract is administered.
Contract
modification
This is a substantive change to the contract requirements such as a
new deadline or a change to the product requirements.
Supplemental
agreement
This is an additional agreement related to the contract but
negotiated separately
Constructive
These are changes that the seller may have caused through action
or inaction.
Termination of
contract
A contract may be terminated due to seller default or for customer
convenience. Defaults are typically due to non-performance such as
late deliveries, poor quality, or non-performance of some or all
project requirements.
241
Legal Issues

Warranties
Waivers
Contract breaches
242
Administering a Contract

Index and store all contract correspondence for ease of retrieval.
Develop and implement an effective contract change control system.
Evaluate the risk of each contract change request.
Document all contract changes and incorporate any effects of the
changes into the project plan.
Develop and implement an effective performance reporting system.
Set performance milestones to monitor project progress.
Address performance reporting specifications imposed on the seller
in the contract.
Conduct site visits to determine how the sellers work is progressing.
Submit approved invoices for payment.

243
Control Stakeholder Engagement
Closing the Project

Close a Project or Phase
Close Procurements

245
246
Close Procurements
246
Procurement Audit

Did the supplier complete the work as specified?
Were all terms and conditions of the contract met?
Were the quality, cost, and timeliness of the suppliers work
acceptable?
Was the supplier able to accommodate requested changes?
How well did the suppliers staff work with yours?
Was their ample and effective communication?
What lessons were learned from this contract?

247
248
Close Project or Phase
248
Closing the Project

Gather and organize performance measurement documentation.
Release project resources.
Update records.
Analyze project success and effectiveness.
Prepare a final project report.
Obtain project approval from customer.
Archive indexed project records.
Celebrate the success of the project.
249
Closing a Contract

Ensure the supplier has provided all required products or services.
Ensure any buyer-furnished property or information was returned.
Settle any outstanding contract issues.
Conduct a procurement audit to evaluate the suppliers
performance.
Address any outstanding invoices and payments.
Archive complete contract file with the project archives.
Provide the seller with formal written notice that the contract has
been completed.

250

1. In your experience, which aspect of closing a project have you
found to be the most challenging? Why?

2. What tools and techniques could you use to effectively close future
projects you manage? Explain.

251

Project Management Capstone

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