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WELCOME TO PMP Exam Prep by Simplilearn Course eBook 1

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WELCOME TO

PMP Exam Prep by Simplilearn

Course e‐Book

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Lesson 1

Introduction to PMP Certification Course

Based on PMBOK Version 4

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Presenter
Presentation Notes
Hello and Welcome to SimpliLearn, Introduction to PMP Certification Course!!! This is the 1st among the 14 lessons, provided by SimpliLearn on PMP Exam preparation. This is the Introductory lesson and it’s a must read for all the 13 remaining lessons as well. Please make sure that you have access to other 11 lessons as well to fully comprehend this course. For your information, The complete 14 lessons series is provided absolutely free of cost to everyone. SimpliLearn charges participants only for their Live Virtual Classes and their one to one tutoring service with the PMP Instructor. In case of any clarification or doubt, please feel free to drop a mail to [email protected]
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Agenda

What is PMP and PMIPMP Exam SyllabusHow is PMP Exam LikeAbout this Tutorial

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Presenter
Presentation Notes
Lets us first setup the Agenda of the first Lesson. As indicated in the previous slide, this is an introductory course and it covers areas like, What is PMP and PMI. These are terms you will frequently encounter in your conversation with certified Project Managers or people preparing for this exam. Once you are comfortable with what PMP and PMI is, we will discuss the syllabus of the PMP Examination. Next, we will discuss more about the PMP Exam itself. For example, we will cover topics like How many questions are their in the exam, what is the pass marks, how many questions are expected from which part of the Syllabus etc. Lastly, we will explain how the SimpliLearn PMP Certification Course is structured. Going through this part is a must before you start accessing the remaining lessons of this course.
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What is PMP and PMI ?

PMP: Project Management ProfessionalPMI: Project Management InstitutePMI is an Organization. PMP is a certification.PMI conducts PMP Examination.PMP is valid for 3 Years. PDU: Professional Development UnitPMBOK: Project Management Body of Knowledge.PMBOK is a Text Book for PMP Exam 

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Presenter
Presentation Notes
PMP stands for Project Management Professional. It’s the name of the certificate awarded to any one who scores more than the required passing mark in PMP Exam. So if you successfully pass the PMP Exam, you become a Project Management Professional ie PMP. As evident by the name itself, this certificate is of interest to any one interested in Project Management as a career. PMP is most recognized Individual certification in the area of Project Management. Its valued Worldwide. For many of the Project Management Jobs, its even a mandatory qualification. PMP is not for Project Managers from a specific domain. A Project Manager working in any Industry, be it Manufacturing or Retail or Defense or Information Technology can write the PMP Exam and upon successful completion can become a PMP. PMI is an not for profit Organization, who conducts PMP Examination. PMI stands for Project Management Institute. PMI is based in USA and it has local chapter across the globe. So, if you are based in Singapore, you can look for PMI chapter in Singapore. Such local chapter conduct regular knowledge sharing and networking session for people interested in Project Management. You can get more information about PMI by logging to their website, www.pmi.org A PMP certificate is valid for three years. Post completion of this three year period. It can be renewed for another three years. PMI measures Project Management Experience in units of PDU. PDU means Professional Development Unit. So, if you attend a Project Management Class of 1 hour by an expert, its equivalent to say 1 PDU. If you write a White Paper on Project Management related topic, it may be equivalent to 5 PDU. PMI has guideline on what kind of project management activity amounts to how many PDUs. You can check their website for details. Every three years, one must have attain 60 PDUs to retain their PMP certificate. So first time, when you write the exam, you become PMP for 3 years. After this period, to renew your certificate, you need to submit proof that you attained 60 PDUs in last three year and pay the PMI renewal fee, your certificate gets renewed for another three years. You can do this online at www.pmi.org PMBOK means Project Management Body of Knowledge. Its like a Book that PMI releases every four years. The latest version of the PMBOK is version 4 and it was released in June 2009. PMBOK also acts as a Text Book for the PMP Exam. You can also think of PMBOK as Standard for Project Management Profession.
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Pre‐requisite for the PMP Exam

Category College Education

PM Training PM Experience Total Experience

One Bachelors Degree

35 Contact Hours

4,500 hours 3 Years within last 6 years

Two High School Graduate

35 Contact Hours

7,500 hours Five Years within last 8 years

REP: Registered Education ProviderApplication can be submitted online. Once you pay the Exam fee, PMI sends Authorization Letter.You must write the exam within one year of getting the Authorization Letter.

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Presenter
Presentation Notes
Can anyone take up the PMP Examination ? Yes, provided one meet certain prerequisite. The prerequisite depends upon person’s formal education. As shown in the table, for bachelor degree holder, they have to have at least 4500 hours of Project Management experience and for some one whose highest formal education is High school degree, its 7500 hours of Project management experience. In addition to this, there is some requirement in terms of total no of years of work experience as well. For the first category, one has to have at least 6 years of total work experience and for the second category its 8 years. The 3 years within 6 years in the table means that 4500 hours of project management experience should have happened in last 3 years of total 6 years of experience. Lastly one also has to show proof of attending 35 hours of Project Management Training just before writing the PMP exam. There are many Project Management Training companies, who are PMI REP. PMI REP means, these training companies are registered with PMI as Registered Education Provider. If you attend their 35 hour contact training, they also give you 35 PDUs. As I have explained earlier, PDU means professional development unit. It’s a measure of Project management activity by PMI. Attending a Project Management training is also a Project Management Activity. I would like to clarify here that even if you attend 35 hours of Project Management Training by a company, which is not REP, you can still go ahead and take up the PMP exam. But you must show proof of attending 35 hours of Project Management training. So, if you have gone through our complete 12 lesson material and also attended our virtual classes. You qualify to take up the PMP Exam. Lastly, One has to submit proof to PMI while submitting the online application for taking up the exam. PMI audits such submission from time to time. If you do not meet the prerequisite and still submit the exam application, there are chances of getting caught. PMI disqualifies such application. Once your online application for taking up the exam gets approved, PMI sends an Authorization letter. You must write the exam, within a year of getting the Authorization letter.
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About the PMP Exam

Total No of Questions: 200. But, out of this 25 questions are test question for future  tests.Only 175 questions are scored.PMI grades students on each of the Nine Knowledge area and based on this grading they declare PMP pass or fail. 

How many grades one has to score  to pass the PMP exam is not made public by PMI.  The grading is Proficient, Above Proficient and Below Proficient in each of the Nine Knowledge area.Total duration of the exam is 4 hours.You get 1 Point for every right questions. There is no penalty for wrong answer.

Project Management Process Percentage of Questions

Project Initiating 11

Project Planning 23

Project Executing 27

Project Monitoring & Control 21

Project Closing 9

Professional and Social Responsibility 9

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Presenter
Presentation Notes
Let me tell you more about the PMP Exam. It’s a four hour exam consisting of 200 questions. Out of this 200, 25 questions are not scored. But beware, you will not know which are these 25 questions! So you should answer all 200 questions, with same seriousness. PMI includes these questions to see how many test takers are getting them right. Based on this, they might decide to include these questions in future Exam. The pass marks for the exam is 141 out of 175, which roughly translates to 81%! Now, you must be guessing that PMP exam is not that easy. You are right! Taking PMP exam does require certain seriousness in preparation. Next, I have shown in the table on how many questions from which part. Getting confused with so many new terms. Hold on for a moment! You will learn them in the next slide. For now, assume them to be the six major topics and percentage of questions that typically comes from each of these topics.
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PMP Exam Syllabus

There are 5 Process Groups.  They are:

Project InitiationProject PlanningProject ExecutionProject Monitoring & ControlProject Closing

There are 9 Knowledge Areas. They are:Integration ManagementScope managementTime ManagementCost ManagementQuality ManagementHuman Resource ManagementCommunications ManagementRisk ManagementProcurement Management

There are 42 Project Management process areas. For example, “Develop Schedule” is one of these 42 process, which is part of Project Planning Process Area and is also part of Time Management Knowledge Area.

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Presenter
Presentation Notes
There are three terms that I would like to introduce here. First, being the Process Group. The whole Project Management discipline is divided into five broad Process group, they are Project Initiation, Project Planning, Project Execution, Project Monitoring & Control and Project Closing. You probably, might be aware of them as well. When a new Project starts, its in the Project Initiation phase, from Initiation, it moves to Planning, than to Execution and than to Monitoring & Control and finally its closed. Some of these overlap as well. For example, Project Execution and Project Monitoring & Control go hand in hand. So when a new project is started i.e., initiated, all processes of Project Initiation Process Group should be applied to the Project. Similarly when the project is being closed, all Processes of Project Closing group should be applied. Let me give you more specific example, “Identify stakeholders” is a Process of Project Initiation group. So when the project is initiated, you must identify all the stakeholder’s of the project. Next. ..There are 9 Knowledge areas. For example, “Human Resource Management” is one of the Knowledge areas. Knowledge area is a set of specific processes required to be performed to meet a project objective. A Knowledge area may have some processes to be done in Project Planning Process Group and some other processes to be done in Project Monitoring & Control Process Group. For example, if you take “Human Resource Management” Knowledge area, “Develop Human Resource Plan” is a processes in Project Planning Group and another processes “Manage Project Team” is in Project Execution group. Lastly there are 42 process areas, we have already come across two such Process areas. “Develop Human Resource Plan” and “Manage Project Team”. If you are totally confused by now. Don’t worry. This is the whole exam syllabus and there is one lesson dedicated to each of these topics!
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About this Tutorial

There are total of 14 lessons. This being the first one.

The  other Lessons are:Lesson 2: Project Management FrameworkLesson 3: Project Management Processes GroupsLesson 4: Integration ManagementLesson 5: Scope ManagementLesson 6: Time ManagementLesson 7: Cost ManagementLesson 8: Quality ManagementLesson 9: Human Resource Management Lesson 10: Communication ManagementLesson 11: Risk ManagementLesson 12: Procurement ManagementLesson 13: Professional and Social ResponsibilityLesson 14: PMP Examination Tricks and PMI‐ism

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Presenter
Presentation Notes
Let me give you an overview of all the lessons of this Tutorial. In all, we have 14 lessons. The current one being the first lesson, which is an Introduction to the PMP certification. Lessons 2, which is named as Project Management Framework, aims to explain what Project and Project Management is all about. It also explains some related terms like Program Management, Project Management Office etc. So, Lesson 2 can be considered as an introduction to the Project Management. Next, Lesson 3 aims to explain the five Project management Process Groups that we discussed some time back. Just to recap these process groups are Initiation, Planning, Executing, Monitoring and Controlling and Closing. From Lesson 4 till Lesson 12, the 9 Project Management knowledge areas are explained. One lesson dedicated to each of these nine areas. In addition to the 5 process groups and 9 knowledge areas, PMI gives a lot of weightage to professional and social responsibility. There are good amount of questions in exam from this topic as well. So we have dedicated one chapter for this as well. The last lesson, ie lesson no 14, is generic in nature and there in we have explained few tips and tricks for the exam. We suggest you to go through once. It might be of great help. Along with this we have also listed what is called PMI-ism. What is PMI-ism? Well, PMI has a certain way of thinking and PMI-ism is a compilation of the same. You might not agree to all of that, but you must know this to pass the PMP Exam. At this point, I would also like to add that, at the end of each of these lessons, we have an quiz. I strongly support to take up the quiz and also look at the explanation of the all the questions, those which you got right as well as those you got wrong. This would help to get a better grasp over the subject. Once you are through with all these 14 lesson, you can go ahead and start taking our practice tests.
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Lesson 2

Project  Management Framework

Based on PMBOK Version 4

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Presenter
Presentation Notes
Hello and Welcome back to lesson No 2 of PMP Certification Course by SimpliLearn! I hope you had a chance to go through our previous lesson, which is Lesson No 1. Nevertheless, Let me give a quick recap of what we have covered in Lesson 1. In case, you have not gone through the same, you may like to go through it once. In lesson 1, we introduced terms like PMP, PMI, PMBOK, PDU, Knowledge Areas and Project Management Processes. You will come across these terms again and again, while you progress with your PMP certification preparation. Along with these terms, We also covered in lesson No 1, how the PMP Examination is Organized, the eligibility to appear for the exam as well as the syllabus of the PMP exam. In this Lesson, ie Lesson No 2, we are going to cover “Project Management Framework”. Now, What is “Project Management Framework” ? Project Management Framework provides a basis for understanding Project Management. So, basically In this lesson, we are going to cover, topics like What is a Project, What is Project Management, How is project and program related to each other and similar other topics. Lets go to the next slide to check-out the complete agenda of this lesson.
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Agenda

Definition of a ProjectWhat is Project ManagementWhat is Program ManagementWhat is Portfolio ManagementProject Management Office (PMO)The Triple ConstraintsStakeholder ManagementOrganization StructureProject Life Cycle vs. Product Life CycleQuiz

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Presenter
Presentation Notes
Here is what we are going to cover in lesson 2. We would look at the definition of different related terms like Project, Program and Portfolio. If you are a project management professional, you must have encountered these terms in your day to day working. In this lesson, we would look at their definitions, so that you can clearly related to them. After going through the definitions, We would look at what project management is all about. At this stage, Let me also introduce you to a new term, PMO. PMO, stands for Project Management Office or Program Office. We would look at what PMO is in this lesson. Most of the Organizations who follow PMI guidelines, do have a PMO. Next, we are going to cover Triple Constraints. This basically means the different constraints under which a project is performed. The concept of Triple Constraints has evolved over time. However originally, it referred to Cost, Time and Scope. Post this, we would look at Stakeholder Management. Stakeholders can be thought of as some one who has some interest in the Project. We would learn how to manage stakeholders. Next, we will look at the different types of Organization management structure. For example, some organization are organized department or function wise, where as there are other organizations, which are based on different ongoing projects. We will look at the advantages and disadvantages of each of these organizations types. Finally, we would look at the Life Cycle of a Project and compare this to a Product Life Cycle. This lesson would also be followed by an Quiz. This Quiz is based totally on the concept introduced in this lesson. I encourage you to attempt all the questions and also look at the answer explanation of all the questions. Those which you got it right as well as those which you got it wrong. This is just to ensure that you know the right reasons why you got it right or wrong.
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What is a Project ?

A project is a temporary endeavor undertaken to create a unique product, service or result.

Temporary means that a Project has a definite start and end date.

Temporary does not necessarily mean short in duration.

A Project End is met when either its objectives are met or it can not be met because of various reasons.

Project is different than Operation.  Operation is doing ongoing repetitive work. For example, the work of an office receptionist can be classified as Operation. 

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Presenter
Presentation Notes
So, what is a Project ? A Project can be defined as Temporary undertaken to create a unique product, service or result. Based on this definition, we can clearly make out that a Project has two key characteristics. First, its temporary in nature…but beware temporary does not mean short in duration. A Project can be on-going for several years, For example, creating a new “Indigenous Missile Defenses System” for a Country can be a project spanning several years. Now, lets look at what marks the end of a Project. A Project End is met, when either the Objectives for which the Project was initiated is met or the project is terminated because the Objectives will not or can not be met. The other reason can be that there is no longer a need for the project to continue. You might be wondering that everything that we do in our offices resemble that of a Project, just described above. So what are we differentiating a Project from any other work that we do in the office. The answer is, we are differentiating project from regular operational work. For example, your office receptionist does the same work everyday or picking any incoming calls and directing it to the right person. This is an ongoing repetitive work and can be classified as “Operation”. I hope you got it right. Let me share some examples of a Project work to make it more clear. Creating a new Software Systems to effectively track your customer complaint can be example of a Project. So when the Software is successfully developed, the project objectives are met and it marks the end of the Project.
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What is Project Management ?

Project Management  is the application of  Knowledge, skills, tools & technique to project activities  to meet the project requirements.

Project Management is accomplished through the appropriate application and integration of the 42 logically  grouped project management processes compromising the 5 process groups.

Managing a Project typically requires, Identifying Project RequirementsManaging StakeholdersBalancing the Project Constraints ( ie Cost, Time, Quality etc)

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Presenter
Presentation Notes
While we looked at what a Project is, in the previous slide. Lets now understand what Project Management is all about. As per the PMBOK definition, “Project Management is the application of Knowledge, skills, tools & technique to project activities to meet the project requirements”. The keywords to pay attention here is Knowledge, Skills, Tools & Technique and Project Requirements. Do you remember that in lesson 1, We learnt, about the 5 process groups, 9 Knowledge Areas and 42 Project management processes? I hope you do. If not, please refer lesson 1 once again. Project Management is achieved by proper application and integration of these 42 processes. Project application and integration means, these processes should be executed in the right manner as well as in the right order. In terms of actual activities, managing a Project typically requires doing three things. First, identifying the project requirements. You might think that since there is a project, there would be requirements. So why there is a need to once again identify project requirements. The reason is that when a Project is initiated, it typically starts with a high level understanding of the project requirements. To actually meet the Project Objectives, these high level requirements needs to be analyzed and specific project requirements needs to be identified. Many projects fail, just because, requirement are not identified and managed properly, leading to a chaos in the project. Secondly, managing a project also requires managing stakeholders. We briefly explained earlier that stakeholder is any one who has an interest in project. For example, Customer, Company Management, Project Team are all stakeholders of the Project. Managing stakeholder is as important as identifying requirements. All stakeholders must work towards the single project objective, for the project to be executed successfully. Finally, managing a project also requires balancing the project constraint. What are the project constraints? Cost, Time, Quality etc are project constraints. For example, if you want a better quality product, it may require using better raw material, leading to higher cost. But your project would have limited budget and you need to achieve a certain level of quality in that budget. So, you see, change in any one constraint is impacting other constraint as well. The project constraints are also called “Triple Constraints” and we will learn more about them as we progress further in this lesson.
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What is Program Management?

A Program is a group of Projects, which when managed as a group, provides decreased risk, economies of scale and  improved management. 

For a group of Project to be classified as Program, there must be some value add in managing them together as Program.  If there is no value add, it can not be classified as Program.

Various Projects in a Program may use the same resources. 

Program Management focuses on the project interdependencies and helps to determine the optimal approach for managing them.

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Presenter
Presentation Notes
Do you often get confused between a Project and a Program? Let me get this clarified to you for ever. A Program is a group of related projects, which when managed as a group, provides decreased risk, economies of scale and improved management. So you can’t group any project and call them a Program. The projects in a program should be related in some way and there should be some “value add” in managing them together. A Typical example of Value Add may be less overall execution cost in managing them as a Program than doing each project independently. Different projects in a program may use the same resources. Some time the output of one project may be input to another project. Also, note that a Program will always have Projects, but a Project may not be a part of any program. A Project can also be executed as a standalone project. Now, What is Program Management? Program Management focuses on the project interdependencies and ensures that Projects are managed in an optimal manner.
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What is a Portfolio Management ?

A Portfolio refers to a collection of projects or programs and other works that are grouped together to facilitate effective management of that work to meet  strategic business objectives.

The Projects or Programs of the portfolio may not necessarily be interdependent or directly related.

A typical example of a Portfolio may be “Japanese Projects”, where in a company puts all its projects from Japan in one portfolio to give more focus and attention to its Japanese projects and grow its business in Japan.

Portfolio management refers to the centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing and controlling projects, programs and other related work to achieve strategic business objectives.

14

Presenter
Presentation Notes
Portfolio is yet another term that is used along with Project and Program. A portfolio may have multiple projects and programs. Also, what is important to note here is that projects and programs in a portfolio may not be necessarily interdependent or directly related. A portfolio can be made based on business objective. For example, an IT Services company can have a Portfolio named “Japanese Projects”, which is formed with an aim to penetrate deeper into Japanese region by giving more attention to these projects. Within this portfolio, similar projects can be managed as a Program. So all banking projects from Japan can be managed as “Banking program”. Now, what is Portfolio management ? Portfolio management is identifying and managing portfolios within the company that meet the strategic business objectives. So whether the company should have “Japanese Projects” as Portfolio or not is decided by Portfolio Management.
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Project Management Office (PMO)

PMO is an Organization Structure, its not a person like Project Manager.

PMO usually takes one of the three roles mentioned below:Provide the policies , methodologies and tools & templates for managing 

projects within the Organization.Provide support and training to others in Organization on how to manage 

projects. Provide Project Managers for different ongoing projects in the 

Organization.

Some of the specific activities that PMO does is:Manage interdependencies  between the ProjectsHelp Provide resourcesTerminate ProjectsHelp gather lessons learned, etc

15

Presenter
Presentation Notes
We already introduced you to this term, PMO. PMO means Project Management Office and its an Organization Structure. Its not a role like Project Manager. PMO can take care of various role and what is important is that, what ever role PMO takes, it needs to be communicated well within the Organization. Some of the roles that a PMO may take up is: Provide the Policies , methodologies and tools & templates for managing projects within the Organization. Provide support and training to others in Organization on how to manage projects. Provide project Managers for different ongoing projects in the Organization. In terms of specific activities that PMO does is, managing interdependencies between the projects, Provide resources to various ongoing projects, if need be terminate a project, organize lesson learnt session and make them available to all other projects in the Organization.
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Triple Constraint

Triple Constraint originally included cost, time and scope.

The current explanation of Triple Constraint includes, but not limited toScopeQualityCostTimeResourcesRiskCustomer satisfaction

The  Project Manager is supposed the manage the Project’s Triple Constraint.

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Presenter
Presentation Notes
Any project can be done successfully, if there are no constraint on time or there is unlimited budget available . But unfortunately that’s not true in real life. A Project is performed within some constraint and usually these constraint are competing. So, if you change one, it would impact the other. For example, if the Project duration increases, it would lead to increase in the Project cost as well. Triple constraint is an old term that originally used to refer the three competing Project constraint within which the projects are performed. These constraints are Cost, Time and Scope. But now, the word Triple Constraint is expanded, and it also includes other constraints like Risk, Customer Satisfaction, Quality etc. So, if you are ready for higher risk, its quiet possible that, project can be performed in lesser cost. For example, you experiment with a new Technology to do certain project activities. Since the technology is new, the risks are higher, but it might work out to be lot cheaper than earlier proven and tested one. In further lessons, where ever we use the word, Triple Constraint, you should understand it to be pointing to the expanded definition of this term.
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Stakeholder Management

A stakeholder is some one whose interests may be positively or negatively impacted by the Project.

The stakeholder include: The Project Manager, The Project Team, Thecustomer, The PMO, The Project Sponsor, The Performing Organization.

Stakeholder management requires:Identifying All StakeholderDetermining All of their requirementsDetermine Stakeholder ExpectationsCommunicating with Stakeholders

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Presenter
Presentation Notes
Now, lets look at Stakeholder Management. Who is an Stakeholder? A stakeholder can be defined as some one whose interests may be positively or negatively impacted by the project. So, with this definition, the Project Team, The Project Manager, The PMO office, The customer- are all stakeholder of the project. One of key responsibility of the Project Manager is to manage stakeholders. This essentially means involving Stakeholder from early on to the project to ensure that there is no surprises mid way into the project. Some of the specific activities that a Project Manager has to take up for Stakeholder management is, Identifying all Stakeholder. Missing out any stakeholder can be disastrous for a project. A stakeholder who is identified towards the end of the project, may come up with their own requirement at that stage and incorporating them can be really risky. After identifying all the stakeholder, the Project Manager also needs to be to ensure that their requirements are clearly identified. Some time stakeholders might themselves not know of their requirement and it’s the Job of the Project Manager is to get them right by doing a proper stakeholder requirement analysis. Some time stakeholders might have unstated expectation, which needs to be clearly stated out to see if it can form a Project requirement. Once all stated and unstated Stakeholder requirements are Known, the Project Manager as part of Stakeholder analysis should focus on communicating them regularly to keep them involved in the Project.
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Organization Structure

There are three types of Organization based on the authority that a Project Manager has.

Functional: The organization is grouped by areas of specialization within different  functional areas, e.g, accounting, marketing, Sales. Team member report to functional Manager.

Projectized: The entire company is Organized by Project. There is nodepartment as such. Team member report to Project Manager.

Matrix: This is a mix of both the above types.  This has three forms, Strong Matrix, Weak Matrix and Balanced Matrix. 

In strong Matrix, power rests with the Project Manager.  In weak matrix, power rests with the functional manager. In balanced Matrix, the power is shared between the functional manager and the Project Manager.

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Presentation Notes
Projects are performed in an Organization. So naturally the functioning of the Organization does impact the Project. The different Organization structure types explained here are based on the level of authority that a Project Manager gets in those Organizations. In a functional types of Organization. The Organization is grouped by areas of specialization. So marketing being one function, is one department within the Organization. In such types of Organization, normally Projects are undertaken within the department itself. If all a Project requires any assistance from another department, the request moves from the head of the requesting department to the head of the other department to get the required help. The team members do their normal departmental work in addition to the Project Work. The next type of Organization is Projectized Organization. In such Organization, there are no department. Team members report to a Project Manager. When the Project gets completed, they either move on to other Project, or they look for some Job outside the company. They do not have a department to go back to. The third type of Organization is a mix of both the above types. So team member belong to a department as well as they are part of a Project team. In such Organization, team members have two boss, first, their department head and the second, their Project Manager. Since there are two bosses here, this type of Organization is further classified in three types. They are weak, strong and balanced matrix. So out of the two boss that team members have in Matrix form, if the Project Manager has authority on the team member, such Organizations are called Strong Matrix, where as if Functional manager has authority, it’s a weak matrix organization. If both the share equal authority, than it’s a balanced Organization. In PMP exam, if there is mention of the Organization type, you can assume it to be a Matrix Organization. Let me also add here that in a Weak matrix Organization, the role of a Project Manager is either of a Project expeditor or a Project Coordinator. When the Project manager is more like a staff assistance with no authority, it’s a Project Expeditor role. Where as when the Project Manager has some authority to make decisions, it’s a Project Coordinator role. In such cases, Project Manager usually reports to a higher level manager. Now, lets look at some advantages and disadvantages of both types of Organizations in next slide.
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Advantages and Disadvantages of Org. Type

Advantages Disadvantages

Functional

Specialist can be grouped togetherOnly one manager, so no confusionClearly defined career paths.

Departmental work get more priority than Project WorkNo career path in Project Management

Advantages Disadvantages

Projectized

Better communication within ProjectsLoyalty to Projects

Less efficient use of resourcesNo home when Project is completed.

Advantages Disadvantages

Matrix

Better coordinationMaximum utilization of resources

Higher potential for conflictExtra Administration required

Advantages Disadvantages

Functional

Advantages Disadvantages

Projectized

Matrix

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There are many advantages and disadvantages of both types of Organization. You can expect couple of questions related to this in PMP exam. The biggest advantage of Functional Organization type is that specialist be grouped together and this helps in better management. There is also a clearly defined career goals for them. They can actually visualize, their career path by looking at their managers. Also, since they have only one manager, there is no confusion as such. Team members know, whom to take instructions from. The disadvantages of such organization type is that Project work gets hampered. Department work is always given higher priority than the Project Work. Also, there is no career path in project management and that also leads to lower interest in Projects. In the case of Projectized Organization. One of the clear advantage is better communication within the Projects. Since Project work is the only work team members are doing, it also leads to Loyalty to the Projects. The disadvantage of such Organization type is the inefficient use of resources, because every project team has their own support function. So in a way this leads to duplication of effort. The other key disadvantage is that there is no home as such for the project teams to go back, when the project gets over. The team members have to look for another project, every time a project gets completed. Lets look at the Matrix organization. Such Organization type also has the advantage of better coordination and maximum utilization of resources. But it has its own disadvantages as well, the most obvious one is two managers for every team member leading to conflict. The other disadvantage is extra administration required for its complex type. Extra administration comes in the form of detailed procedure and policies to be followed. These are some of the advantages and disadvantages of these Organization type. I also suggest you to go through the PMBOK to get the complete list.
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Project Lifecycle Vs Product Lifecycle

A typical Product lifecycle starts with the conception of the Product till its withdrawal from the market, when it becomes obsolete.

A Product can require or spawn many projects over its life. For example, a Project during Product conception would be determine customer’s need and project during product maturity phase can be to do competition analysis.

A Project has its own lifecycle. The lifecycle depends upon the Industry within which the project is being executed or the Organization preference of their project execution methodology.

For example, typically in IT industry, the Project Lifecycle is Requirement Analysis  High Level Design  Detailed Design  Coding  Testing Installation  Hand over to Operation.

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Presentation Notes
We are now at the last topic of lesson 2, which is Project Lifecycle vs Product Lifecycle. Product typically has a long life cycle. A Product is first conceived, than developed and later launched in the market. If the Product gets market acceptance, it would grow in market share and after some time it would get mature. Eventually, the product would get withdrawn from the market, because either it becomes obsolete or there is no further need for the product in the market. Each of these Product lifecycle phases may require doing various projects. For example, a Project in Product conception phase can be to determine customer needs, where as a project during product maturity phase can be to do competition analysis. A Project also has its own lifecycle and this lifecycle depends upon the Industry and the Organization within which the project is being executed. Some time different Organizations within the same Industry use different lifecycles. For example, lets take the case of Project execution methodology followed in IT industry. The typical project lifecycle followed is Requirement Analysis High Level Design Detailed Design Coding Testing Installation Hand over to Operation. There are many other Organization within the IT industry itself, who follow different project methodologies, like Agile methodology. With this, we mark the end of the lesson 2. Next, we would look at few questions based on this lesson to see, how well have you grasped this lesson.
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Quiz‐1

1. A Project Manager is working on constructing a new Bridge., but he is notgetting enough project attention. Resources are occupied in doing processrelated work and project manager has no authority to properly assignresources. What form of Organization is the Project being performed ?

A. FunctionalB. ProjectizedC. Strong MatrixD. Weak Matrix

2. Which of the following is not a characteristics of a Project ?

A. Repeats Every WeekB. TemporaryC. Definite Beginning and EndD. Interrelated Activities

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Quiz‐2

3. You Just started a new Project as a Project manager, when couple ofstakeholder, with whom you have worked in the past, came to you, raisingconcern about the utility of the new Project Management Package beingused and the way project changes would be logged into the new Software.As a Project Manager what should you do?A. Supply with Training Material on new Project Management SoftwareB. Inform the Project Management Office about stakeholder’s concernC. Since they are friends, conduct informal training sessionD. Assume stakeholders that he will keep them engaged in the Project andnew Software will not way impact their functioning

4. Whom does the Project Team report in a Projectized Organization?

A. Does not report to any oneB. Project ManagerC. Functional ManagerD. CEO

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Quiz‐3

5. How is Project Lifecycle different than a Product Lifecycle ?

A. Project Lifecycle has no methodologyB. Project life cycle is different for different IndustryC. Project Lifecycle sees through many Product lifecycleD. Project Lifecycle talks about specific Project management Activities

6. In a matrix Organization, a Project Manager can expect the communicationto be

A. ComplexB. Difficult to UnderstandC. SimpleD. Open and Accurate

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Answer Explanation‐1

Answer 1: If you marked the Answer as A, you are right. In a FunctionalOrganization, Team

Members are more concerned about their daily functional activities than theProject activities.

Answer 2: This should have been easy for you. Its based on the Projectdefinition. Except Choice A, everything is part of the Project definitionitself. So the right Answer is Choice A.

If you got this Answer Wrong. You should repeat Lesson 2, once again.

Answer 3: Now this is a tricky question. You should expect lot of such questionsin your PMP Examination. Do you think all of them are right? If yes, youneed to identify the best Answer.

And the best answer is choice B. Inform the Project Manager Office, becausethey are the one who control the project management procedures andtools. By directing stakeholders to PMO, the Project Manager is helpingthem know of the right authority .

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Answer Explanation‐1

Answer 4: Now, this one was again simple. The right answer is choice B, theProject manager.

If you got this wrong, consider going through lesson 2 once again.

Answer 5: The right answer choice is B. Project Lifecycle is different for differentIndustry. Choice C is just the opposite, ie a Product Lifecycle sees manyproject through its lifecycle, not the other way round.

Choice D is also wrong. A Project Management Plan has various projectactivities, not the Project Lifecycle.

Answer 6: The right answer is A. Why the communication in a matrixorganization is complex, one of the key reason is presence of two boss forthe team members.

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Lesson 3

Project  Management Processes

Based on PMBOK Version 4

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Presentation Notes
Hello and Welcome to lesson No 3 of PMP Certification Course by SimpliLearn! We assume that you have already gone through the Lesson 1 and Lesson 2 of this tutorial. If not, We strongly suggest you to do so. Let us also look at quickly on what all we have covered till now. In Lesson 1, we introduced you to PMP Exam, its syllabus and its pre-requisite. Along with that, we also introduced you to Nine Knowledge Areas, Five Process Groups and 42 Project Management Processes. Where as in Lesson 2, we covered, Project, Program and Portfolio management definitions. Different types of Project Organization,( ie Matrix, Functional) was also discussed in Lesson 2. In the next slide, We would look at the Agenda of Lesson 3.
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Agenda

Project Life Cycle vs Project Management ProcessThe Five Project Management Process GroupsProcess Groups, Knowledge Areas and Project Management process MappingWhat happens in Each Process GroupsQuiz

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The Agenda of the lesson 3 is to explain you the five Project management process groups. We would look at the key Processes of the 5 process groups at high level. The reason, we would look at them at high level, because these project management processes would be covered in more detail, while we study the Nine Knowledge Areas. Next in this lesson, we would see how the 5 process groups, 9 knowledge areas and 42 project management processes are related to each other. Finally, We would look at what happens in each of these 5 process groups.
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Project Life Cycle Vs Project Management Process

Project Life Cycle – “What to do” to “get the work done”.Project Management Process – “What to do” to “Manage the Project”.Project Management Processes are grouped in 5 categories:

Initiating Process GroupsPlanning Process GroupsExecuting Process GroupsMonitoring & Control Process GroupsClosing Process Groups

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We have already explained you “The Project Lifecycle” in Lesson 2. Project Lifecycle basically tells what one needs to do to get the work done and its different for different industry. For example, in Software Industry, the typical Project Life Cycle is Requirement Analysis Design Coding Testing Installation Operations & Support. Where as Project Management Process are “What to do” , “to manage the Project”. Now, managing the project is same across Industry. Lets take an example of a Project Management Process, “Develop Schedule”. One needs to develop the project schedule, be it any Industry. The Project Management Processes are divided into 5 process groups and these groups are : Initiating Process Groups Planning Process Groups Executing Process Groups Monitoring & Control Process Groups Closing Process Groups For small project, one might have to go through, Initiating phase till the closing phase only once. For bigger projects, however, the whole cycle may be repeated multiple times, whenever the project re-enters a new phase Lets look at the picture next slide to see how these processes are related.
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Project Management Process Groups

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As you can see in this diagram, the Initiating Process happens during the beginning of the Project or a phase. Where as the Planning and Executing Processes go hand in hand. So you plan, execute and re-plan based on the execution result. The whole Planning and Execution process is monitored by the Monitoring & Control Processes. The Project Closing Processes are performed, when the Project work is completed. The typical project management process in this phase are releasing resources back to resource pool. Let me ask you a question at this stage, are these Project Management process discrete in nature. Meaning, do they occur one time or are they overlapping activities occurring throughout the Project life cycle ? Lets look at this in the next slide.
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Process Groups Interaction 

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So, the answer to our question on the last Slide is “Process Groups have over lapping activities that occur through out the Project life cycle, as shown in this diagram. The output of one process groups is generally the input to another process group or a deliverables of the Project. For example, Project Management Plan is an output of Planning Process Group and its an input to Project execution Group. While the project progress, the Project Management Plan may get updated and the updated Project Management Plan is again a input to the Execution Process Group.
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Project Management Process Group, Knowledge Area and Project Management Process Mapping

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If you click and open the attached document, you can see the list of 42 Project Management processes, 9 Knowledge Areas and the Five Process groups. The chart shows, how each of them are related to each other. We will learn about each of these 42 Project management process, in their individual Knowledge areas chapter. When I saw, we will learn about these Project management processes, I mean what exactly these Processes are, what is the input and output of each of these processes. I have presented this chart here to provide a high level view of how these processes, Knowledge Areas and Process group are related to each other. There is one lesson dedicated to each of the process area. Now, lets look at each of the Process Groups at high level to understand, what happens in each of these groups.
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Knowledge Areas

Project Management Process Groups

Initiating Planning Group

Planning Process Group

Execution Process Group

Monitoring & Control Process 

Group

Closing Process Group

4. Project Integration Management

4.1 Develop Project Charter

4.2 Develop Project Management Plan

4.3 Direct and Manage Project Execution

4.4 Monitor & Control Project work

4.5 Perform Integrated Change Control

4.6 Close Project or Phase

5. Project Scope Management

5.1 Collect Requirement 

5.2 Define Scope

5.3 Create WBS

5.4 Verify Scope

5.5 Control Scope

6. Project Time Management

6.1 Define Activities

6.2 Sequence Activities

6.3 Estimate Activity Resource

6.4 Estimate Activity Durations

6.5 Develop Schedule

6.6 Control Schedule

7. Project Cost Management

7.1. Estimate Costs

7.2 Determine Budget

7.3 Control Costs

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Knowledge Areas

Project Management Process Groups

Initiating Planning Group

Planning Process Group

Execution Process Group

Monitoring & Control Process 

Group

Closing Process Group

8. Project Quality Management

8.1 Plan Quality8.2 Perform Quality Assurance

8.3 Perform Quality Control

9. Project Human Resource Management

9.1 Develop Human Resource Plan

9.2 Acquire Project Team

9.3 Develop Project Team

9.4 Manage Project Team

10. Project Communication Management

10.1 Identify Stakeholders

10.2 Plan Communications

10.3 Distribute Information

10.4 Manage Stakeholders Expectation

10.5 Report Performance

11. Project Risk Management

11.1 Plan Risk Management

11.2 Identify Risks

11.3 Perform Qualitative Risk Analysis

11.4 Perform Quantitative Risk Analysis

11.5 Plan Risk Responses

11.6 Monitor & Control Risks

12. Project Procurement Management

12.1 Plan Procurements

12.2 Conduct Procurements

12.3 Administer Procurements

12.4 Close Procurements33

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Initiating Process Group

Formally starts a Project by incorporating all the needs of the Organization into the Project Charter.

Inputs to Initiating Process Groups

Business NeedContract, if work is done under a contractPotential StakeholdersHigh level Product descriptionProject Role vs Company strategic visionOrganization’s CultureOrganization’s project ArchivePossible Team membersIndustry Standards

Actions  taken during Initiation Process

Select the Project among the list of potential ProjectsSelect Project ManagerDetermine Project Manager’s 

authorityDocument Known Risk, assumptionsDivide Project into PhasesDetermine Initial Project Organization.Finalize & Get Approval of the Project 

Charter

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Planning Process Group

Project Planning determines if the project charter can or can not bedelivered and also how the project will be accomplished.

Inputs to Planning Process Groups

Project Charter

Actions  taken during Planning process 

Refine requirements to make it more specificDefine Project deliverables and work required to 

complete themGet Stakeholder approval on ScopeSelect Project TeamBreak down work into smaller manageable piecesDetermine Project Quality standardsDetermine Project Team’s Roles & ResponsibilityComplete Risk Identification, Analysis and Risk 

Response PlanningDetermine what needs to be purchasedDetermine how to execute and control project etc

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The planning process group determines if the project Charter can or can not be done and as well as how the project will be accomplished. The Project Charter and the Preliminary Scope Statement are inputs to the Planning Process Group. Now, lets look at the Specific Actions that are done during the Planning Process group. Based on the Preliminary Scope Statement, the project requirements are refined to make it more specific. Next, The Project deliverables are identified and also the work required to complete those deliverables. The Project Manager also works on getting the approval on the Project Scope by the stakeholders. Once the Project Scope is approved, next the Project Schedule and Cost is planned. Post this, The Quality standard of the Project is determined. Next, the detailed Roles & Responsibilities of the Project team members are identified. After that Risk Identification, Risk Analysis and Risk Response Planning is done. If the Project requires, any third party purchases, that also is identified. All these Actions described above are documented in Project’s Project Management Plan.
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Executing Process Group

The purpose of  the executing Processes is to complete work in the project management Plan and to meet the project objectives.

Inputs to Executing Process Groups

Project Management Plan 

Actions  taken during Executing process 

Manage Stakeholder’s expectation(s)Complete Work packagesImplement Quality AssuranceProduce Project ReportRemove Project bottleneck(s)Organize Team building ActivitiesOrganize Training for the team membersConduct Project progress meeting(s)Implement Approved Changes, corrective actions, 

preventive actions and defect repairGet Sellers respond to procurement requestsetc

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The purpose of the executing Processes is to complete work in the Project Management Plan and to meet the project objectives. The focus here is on managing people, following processes and ensuring every one in the project has the same information about the project objectives as well as every stakeholder is updated about what's happening on the project. The input to this Process group is the “Project Management Plan” and there is lot of action that are taken under the project executing phase. Some of these Actions are: Managing Stake holder expectation, which also involves ensuring that Stakeholders expectation are in line with project charter and no of the stakeholder has unrealistic expectation. Completing the Work packages. This is “doing” the actual project work Ensuring that quality standards planned in the Project Management plan are being followed. Producing the Project Progress report to be shared with all the Stakeholder. Sharing this ensures that everyone has the same information about the Project progress. Organizing Team building and team Training Activities to ensure higher team member’s productivity Implementing Approved Changes, corrective and preventive action. Also If the project requires any third party component, getting the sellers to respond to the project requirement is also done during executing phase.
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Monitoring & Controlling Process Group

Monitoring and controlling means measuring the performance of theProject to the Project Management Plan, approving change requests,preventive actions and defect repair and managing changes.

Inputs to Monitoring & Controlling Process Groups

Project Management Plan Change RequestStatus Reports

Actions  taken during Monitoring & Controlling process 

Measure against the performance baselineDetermine variance and take appropriate actionRecommend changes, preventive and corrective 

actionFacilitate conflict resolutionIdentify Root Cause of the ProblemObtain formal acceptance of the deliverablesAdminister Contract with sellersControl changesConduct Status review meetingsetc

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Presentation Notes
The purpose of the Monitoring & Controlling process group is to measure project performance as per the Project Management Plan and take appropriate action. The appropriate action can be in the form of correction & preventive actions. The input to the Monitoring & Controlling Process groups are Project Management Plan, Change Request and Status Reports. The specific actions that are taken during the Monitoring & Controlling Processes are: Measuring Cost, time and schedule against the baseline mentioned in the plan Determine variance based on measurement and taking appropriate action Recommending changes, corrective and preventive action Facilitating conflict resolution Obtaining formal approval on the deliverables Administrating contract with the seller Holding Status review meetings
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Closing Process Group

The Closing Processes are performed when the project’s product scope iscompleted., ie when the Project is completed.

Inputs to Closing Process Groups

Project ScopeProject Deliverables

Actions taken during Closing Process

Confirm all Project requirements are metObtain formal signoff from customerMake Payment to all parties and update cost recordsComplete Contract closureUpdate lesson learnt databaseMeasure Customer SatisfactionHandover Project deliverables to Operations teametc

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A Project is considered complete not when the Project’s Product scope is completed, but only when the closure is completed. The Closure includes doing administrative activities such as collecting and finalizing all the paper work needed to complete the Project and the technical work to verify that product of the project is acceptable. This process group also includes any work related to transferring the Project’s product to those who will use it and returning all the project resources back to the resource pool. So the key input to this process group is the Project Scope and Project Deliverables. The actions taken up during the closing process groups are Confirm all Project requirements are met Obtain formal signoff from customer Make Payment to all parties and update cost records Complete Contract closure Update lesson learnt database Measure Customer Satisfaction Handover Project deliverables to Operations team
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Quick Recap of Process Groups

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Presentation Notes
I have added these slide to recap what we learnt about these Process groups. As you saw earlier, a new Project is initiated either because of a new Business Need or a new phase of an already executing project is started. Planning Process group follows the Initiating Process groups. Planning process group can also start if either some corrective or preventive action needs to be taken or there is new change to be implemented. Execution Process groups follows post the planning process group. The other input to the Execution Process group is the Integrated Change Control, which results in changes in the Project Management plan.
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Quick Recap of Process Groups..contd

Monitoring & Control Process Group

Initiating Process Group to review Project Charter

Planning Process Group to re‐plan the project

Executing Process Group to work on defects

Closing Process Group if the Project is completed.

Change Request, Corrective & Preventive  Action

Project Deliverables

Closing Process Group

Project / Project Phase is Complete

Project is terminated

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Lets look at the Monitoring & Control Process Group. These process groups are performed on Project Deliverables or on change request or on preventive & corrective action. The application of Monitoring & Control Processes results in either updation the Project Charter or of re- planning of the project. This may also result in some identified defects to be fixed by Execution Process Group. Monitoring & Control group also monitors the closing Process to ensure that project is being closed properly. Finally, the Closing Process Group is performed, when either the Project or a Project Phase is completed. If the Project is terminated, because of some reason, than also the Closing processes should be performed.
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Quiz‐1

1. A Project Manager is making sure that Product of the Project is as per theProject Management Plan. Which part of the Project Management Processhe is in?

A. PlanningB. Monitoring & ControlC. InitiatingD. Closing

2. Which of the following is an output of the Initiating Process Group?

A. Project CharterB. Company processesC. Company cultureD. Historical Project Data

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Quiz‐2

3. Who is in control of the Project during Project Planning Phase?A. Project ManagerB. Functional ManagerC. Team MemberD. Stakeholder

4. The high level Project Schedule constraints are just determined. Whichprocess is the project in?

A. PlanningB. ClosingC. Monitoring & ControlD. Initiating

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Answer Explanation‐1

Answer 1: The right answer is D. Closing. The Project’s Product is verified duringthe closing phase of the Project. If you got it wrong, consider going troughlesson 3 all over again.

Answer 2: The right answer is A. Project Charter. All other options are input toInitiating Process Group.

Answer 3: Don’t get confused with the mention of Project Planning Phase. TheProject manager is in control of the Project throughout the Project… be itany phase. So the right answer is A. Project Manager.

Answer 4: The right answer is D. Initiating. The high level constraints ofschedule. Cost are determined during Initiating Process group. The detailedplanning is done during Planning Phase.

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Lesson 4

Project Integration Management

Based on PMBOK Version 4

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Agenda

What is Project Integration Management

The Key role of Project Manager, Project Team and Project Sponsor

Project Selection Methods

The Integration Management Knowledge Area. Develop Project CharterDevelop Project Management PlanDirect and Manage Project ExecutionMonitor & Control Project workPerform Integrated Change ControlClose Project or Phase

Quiz

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What is Project Integration Management

Project Integration Management involves unification, consolidation,articulation and integrative actions that are crucial for successfully completingthe Project.

The Project Integration Management is a high level work that Projectmanager does and it involves managing interdependencies among the otherknowledge areas.

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The Key role of Project Manager, Project Team and Project Sponsor

The Key role of the Project Manager is to Perform Integration.

The Key role of the Project Team is to concentrate on completing theProject Activities.

The Key role of the Project Sponsor is to protect the Project Team fromunnecessary changes and loss of resources.

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Project  Selection Methods

Benefit Measurement Methods‐ >This is a comparative ApproachMurder Board‐ A panel of expert try to shoot down a new project idea.Peer ReviewScoring ModelsEconomic ModelsBenefit compared to Cost

Constrained Optimization Methods ‐> This is a Mathematical ApproachLinear Programming

Why a new Project ?ContractBusiness Need

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Project Integration Management Processes

S.No. Project Integration Management Process Done During

1 Develop Project Charter Initiating Process Group

2 Develop Project Management Plan Planning Process Group

3 Direct and Manage Project Execution Execution Process Group

4 Monitor & Control Project work Monitoring & Control Process Group

5 Perform Integrated Change Control Monitoring & Control Process Group

6 Close Project or Phase Closing Process Group

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Develop Project Charter

What is a Project Charter ?

Formally Authorizes theexistence of the Project

Provides authority to theProject Manager to spend moneyand other corporate resources

Provides high level Projectrequirements

It is issued by the ProjectSponsor

It is broad enough to be notrequiring any change duringProject Execution

Inputs to Create Project Charter

Project Statement of WorkEnterprise Environmental

factorsConstraint's and AssumptionsOrganization Process Assets

Process, Procedure &PoliciesCorporate Knowledge BaseLessons LearnedHistorical Information

Contract

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Develop Project Management Plan

Develop Project Management Plan is the Process of documenting the actionsnecessary to define, prepare ,integrate and co‐ordinate all the subsidiary plans.

The subsidiary plans are Cost Management Plan, Time Management Plan,Human Resource Management Plan etc.

The Project Management Plan defines how the project is executed, monitored &controlled and closed.

It contains all the other management plans and the performance measurementbaselines.

Inputs to Develop Project Management Plan

Project Charter                                    Output from Planning Process Enterprise Environmental factorsOrganization Process Assets

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Few New Terms

Work Authorization SystemA System for authorizing work, i.e. notifying team members or contractors

that they may begin work on a project work package or a project activity

Corrective ActionAny action taken to bring expected future project performance in line with

the Project Management Plan.

Preventive ActionWhile corrective action involves implementing actions to deal with actual

deviations from the performance baselines, preventive action deals withanticipated or possible deviation from performance baselines.

Change Control SystemA collection of formal, documented procedures, paperwork, tracking systems

for authorizing changes.

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Direct and Manage Project Execution

Direct and Manage Project Execution is the process of performing theWork defined in the Project Management Plan to achieve the Projectobjective

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Monitor  & Control Project Work

Monitor & control Project work is the process of tracking, reviewing andregulating the progress to meet the performance objective defined in theProject Management Plan.

The results of the monitoring & control are recommended changes to theproject as well as recommended corrective actions, preventive actions anddefect repair.

Inputs to Monitor & Control Project Work

Project Management Plan                                    Work Performance InformationEnterprise Environmental factorsOrganization Process Assets

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Perform Integrated Change Control

Perform Integrated Change Control Process is the process of reviewing all changerequests, approving & managing changes to the Project deliverables, organizationalprocess assets, project documents and the project management plan.

Process of Making ChangeEvaluate ImpactCreate OptionsGet Internal Buy inGet Customer Buy‐in

Change Control Board

Inputs to Perform Integrated Change Control

Project Management Plan                                    Work Performance InformationChange RequestsEnterprise Environmental factorsOrganization Process Assets

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Close Project or Phase

Close Project or Phase is the process of finalizing all activities across allthe project management process groups to formally complete the Projector phase.

The project is not closed when all the technical work is done but whenit is formally closed.

The project should always be closed no matter the circumstance inwhich it was stopped or terminated.

Inputs to Close Project or Phase

Project Management Plan                                    Accepted deliverablesOrganization Process Assets

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Recap: Corrective Action and Integrated Change Control

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Quiz‐1

1. What is the most important activity with respect to change for a ProjectManager to focus attention on?A. Do the changeB. Track & Record the changeC. Prevent unnecessary changeD. Inform Project Sponsor of the change

2. In the middle of a project, you are informed that resources promised in thebeginning of the project is no longer available to the project. As a ProjectManager what would you do?A. Raise hand that you can no longer execute this projectB. Evaluate the impact of not having the promised resourcesC. Re‐plan the project without promised resourcesD. Identify other resources that can be provided to you in compensation of

earlier promised resources.

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Quiz‐2

3. A customer is well known for making lot of changes in a Ongoing project. Youhave been assigned as the Project Manager for a new Project from thiscustomer. What would you do in the beginning of the Project to manage thiscustomer?A. Check who is the Customer’s manager and inform him about the

customer past recordB. Involve the customer as early in the project as possibleC. Say No to the customer couple of times strictlyD. Send a copy of your company change control procedure.

4. Who does the Project Integration?A. Project SponsorB. Project ManagerC. Project TeamD. Stakeholder

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Quiz‐3

5. As a project Manager you received a change that does not impact the projectschedule. What would you do?A. Go ahead and do the changeB. Evaluate Impact on the other components of Triple constraintsC. Get in touch with Change control boardD. Ask your boss’s permission

6. You have been assigned as the Project Manager of a Project when the projectis half way in execution. You meet the customer and inform him that projectis within the baselines. But the customer informs you that he is not happywith the performance of the project. What would be the first thing that youwould do?A. Meet the Project Team to understand what can be doneB. Meet the Project Sponsor and explain him customer concernC. Inform customer that there is nothing wrong from project team sideD. Show customer the performance of similar other project

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Answer Explanation‐1

Answer 1: The right answer is C. Prevent unnecessary changes. The changes areactually done by the Project Team.

Answer 4: This is pretty simple and straight forward. The right answer is B. TheProject Manager. If you got this question wrong, please do go throughlesson once again.

Answer 2: Now this is a tricky question. You might be doing all the mentionedoption, but the right thing to do in such cases is to first evaluate the impact.So the right option is B. Evaluate the impact of not having the promisedresources.

Answer 3: This one is again a tricky question. In real project you might be doingall the options listed, but the best way to handle such scenario is to involvethe customer as early in the project as possible. The right option is B.Involve the customer as early in the project as possible

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Answer Explanation‐1

Answer 5: This question requires some knowledge of previous lessons as well.When ever there is a change and impact is known only one constraints.That’s not the complete analysis. You should look at the impact on all theTriple constraints factors. So the right answer is B. Evaluate the othercomponents of Triple constraints

Answer 6: This one is a tough question. The answer depends upon the scenario.If you heard that customer is unhappy from some one else, the best thingwould be to be meet the customer. But in this case, the customer is himselfsaying this to you that he is not happy. So the best option is to meet theProject Team and discuss customer’s concern, before doing any thing else.The right option is A. Meet the Project Team to understand what can bedone

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Lesson 5

Project Scope Management

Based on PMBOK Version 4

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Agenda

What is Project Scope ManagementProduct Scope vs. Project ScopeThe Key terms in Project Scope ManagementThe Project Scope Management Processes.

Collect RequirementsDefine ScopeCreate WBSVerify ScopeControl Scope

Quiz

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What is Project Scope Management ?

Project Scope management includes the processes required to ensurethat the project includes all the work required and only the work requiredto complete the project successfully.

Managing the Project scope is primarily concerned with defining andcontrolling what is and is not included in the Project.

The key activities that happens as part of Project Scope Management

Constantly checking to make sure that all the work is beingcompleted.Not letting people randomly add to the project scopePreventing Gold Plating, i.e. doing more than what is required as

part of Project Scope

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Product Scope vs. Project Scope

Product Scope : The features and functions that characterize a product,service or result.

Project Scope: The Work that needs to be accomplished to deliver aproduct, service or result with the specified features and functions.

The Project Scope Management deals with managing both the ProductScope as well as Project Scope.

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The Key terms in Project Scope Management

WBS: Work Breakdown StructureThe WBS breaks the work Project into smaller and more manageable pieces called

work Packages.Each level of the WBS is a smaller piece of the level above.Work not in WBS is not part of the Project.

WBS Dictionary:Since work can not be explained in detail in WBS. For every WBS, a WBS dictionary

is created to explain the WBS work package.It has details like description of WBS, person responsible, schedule etc

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A Typical WBS

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The Project Scope Management Processes 

S. No. Project Scope Management Process Done During

1 Collect Requirements Planning Process Group

2 Define Scope Planning Process Group

3 Create WBS Planning Process Group

4 Verify Scope Monitoring & Control Process Group

5 Control Scope Monitoring & Control Process Group

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Collect Requirements

Collect Requirements is the process of defining and documentingstakeholder's need to meet the project objectives.

InputsProject CharterStakeholder register

Tools & TechniquesInterviewPrototypingQuestionnaire & surveysFacilitated workshopsGroup creativity Techniques

OutputsRequirements DocumentRequirement Management PlanRequirement Traceability Matrix

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Define Scope

Define Scope is the process of developing a detailed description of theProject and product.

InputsProject CharterRequirements DocumentOrganization’s Process Assets

Tools & TechniquesExpert JudgmentProduct AnalysisAlternative IdentificationFacilitated Workshops

OutputsProject Scope StatementProject document update

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Create WBS

Create WBS is the process of subdividing project deliverables and projectwork into smaller, more manageable components.

InputsProject Scope StatementRequirements DocumentOrganization’s Process Assets

Tools & TechniquesDecomposition

OutputsWBSWBS dictionaryScope baselineProject document updates

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Verify Scope

Verify Scope is the process of formalizing acceptance of the completedproject deliverables.

InputsProject Management PlanRequirements DocumentRequirement Traceability MatrixValidated deliverables

Tools & TechniquesInspection

OutputsAccepted deliverablesChange RequestsProject document updates

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Control Scope

Control Scope is the process of monitoring the status of the project andproduct scope and managing changes to the scope baseline.

InputsProject Management PlanWork Performance InformationRequirements DocumentRequirement Traceability MatrixOrganization Process Assets

Tools & TechniquesVariance Analysis

OutputsWork Performance MeasurementsChange RequestsProject document updatesProject Management Plan updatesOrganization Process Assets updates

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Quiz‐1

1. During What part of the Project Management Process is the Project Scopecreated ?A. PlanningB. InitiatingC. ExecutingD. Monitoring & Control

2. During a regular project meeting, one of the team members suggests a nicefeature that customer may like. But the Project Manager says No to this nicefeature saying project should concentrate on only on what is required forthe project to get completed and nothing else. This is an example of :

A. Scope ManagementB. Change ManagementC. Project ManagementD. Quality Management

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Quiz‐2

3. A Software project is under construction Phase. After this only Testing &Implementation phase is done. The Project is 3 weeks ahead of theSchedule. As a Project manger, what would you be most concerned about?A. Quality ControlB. Scope VerificationC. Cost ControlD. Change Control

4. Another Project Manager asks you about the software to be used to createthe WBS. He is too much concerned about the graphical representation ofthe WBS. As an experienced Project manager, you suggest him that keyresult of creating WBS is not the graphical representation but:A. Team Buy‐inB. Bar ChartC. List of activitiesD. The WBS numbering System

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Quiz‐3

5. Which of the following is not True regarding subdividing the work in the WBSA. Subdivide until it has meaningful conclusionB. Subdivide until it can be done by a single personC. Subdivide until it can not be logically subdivided furtherD. Subdivide until it can be realistically estimated

6. As a Project Manager what can you use to clearly communicate what work isincluded in the Work Packages.A. Requirements DocumentB. Scope StatementC. Project Management PlanD. WBS dictionary

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Answer Explanation‐1

Answer 1: The right answer is A. Planning. There are only 5 processes in Scopemanagement, 3 in Planning and 2 in Monitoring & Control.

Answer 2: If you answered A. Scope Management. You are right. This is whatScope Management is all about.

Answer 3: The right answer is B. Scope Verification. Unless the deliverables isaccepted by the customer or sponsor as part of Scope verification process,you will not be sure, if Project is really 3 weeks ahead of schedule.

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Answer Explanation‐2

Answer 5: The right answer is B. Subdivide until it can be done by a singleperson. All other are important properties to be considered while comingwith a WBS.

Answer 6: The right answer is D. WBS dictionary

WBS dictionary has detailed work description of each of the team members.

Answer 4: The right answer is A. Team Buy‐in. WBS should be created with theProject Team and all the team members should have confidence that allwork and only work required to complete the Project is captured in theWBS.

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Lesson 6

Project Time Management

Based on PMBOK Version 4

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Agenda

What is Project Time ManagementWhat is Project Schedule The Key terms in Project Time ManagementThe Project Time Management Processes.

Define ActivitiesSequence ActivitiesEstimate Activity ResourcesEstimate Activity DurationsDevelop ScheduleControl Schedule

Schedule Network Analysis TechniquesQuiz

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What is Project Time Management ?

Project Time Management includes processes required to manage timelycompletion of the Project.

Project Time Management is primarily concerned with developing a realisticProject Schedule and controlling changes to the schedule.

Schedule Management Plan: This plan contains details like, How to go aboutplanning the Project Schedule and how to effectively manage and control theproject to the schedule baseline.

The key activities that happens as part of Project Time Management are:

Identifying the list of project activitiesEstimating the time and resource required to complete each of the

identified activitiesSequencing the activities to occur one after the other in a logical

manner.

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What is Project Schedule ?

A schedule wherein activities are assigned a duration and sequenced in a logical order .

it’s the Project Schedule that informs about the Project Start date and Project End date.

Its is very common to use Software to develop the Project Schedule.

The Microsoft Project is the most popular tool used for Project Schedule development.

Many people confuse Project Schedule as the Project Management Plan. But its not true. The ProjectManagement Plan is much more than a Project Schedule.

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A Typical Schedule

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GANTT Chart

GANTT Chart: A Gantt chart is a type of bar chart that illustrates a project schedule .

A Gantt chart showing three kinds of schedule dependencies (in red) and percent complete indications.

Dependency:Finish to Start: An activity must finish before successor can start.Start to Start: An activity must start before the successor can start.Finish to Finish: An activity must finish before the successor can finishStart to Finish: An Activity must start before the successor can finish.

Finish to Start is the most commonly used dependency.Start to Finish is the rarely used dependency.

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Network Diagram

Precedence Diagramming Model (PDM) or Activity on Node (AON)

Boxes are used to show activities and arrow to show dependency.This types of Network can have all four 

types of dependencies between the activities.

Activity A Activity B

Construct Wall

Start Painting

Start Painting

Start Furnishing

Start to Start Finish to Start

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Estimation

One time Estimate: When estimating using a one time estimate, one estimateper activity is received. For example, the person doing the estimate says that theactivity would take 2 weeks.In real life, people make their best guess and just double the estimate to take

care of any uncertainties. Adding this extra is also called “Padding”This techniques should be used to only get the high level estimate.

Analogous Estimating: Estimating based on previous projects or previousactivitiesThe last 5 similar projects took 6 months, so this one should also take 6 months.Analogous estimating is a kind of expert Judgment.

Parametric Estimating: This uses a mathematical model to calculate projectedtimes for an activity based on historical records from previous projects and otherinformation.

Heuristics: A heuristic means rule of thumb. An example of heuristic is the 80/20rule that in quality suggests that 80 percent of quality problems are caused by 20percent of potential sources of problem.

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The Project Time Management Processes 

S. No. Project Time Management Process Done During

1 Define Activities Planning Process Group

2 Sequence Activities Planning Process Group

3 Estimate Activity Resources Planning Process Group

4 Estimate Activity Durations Planning Process Group

5 Develop Schedule Planning Process Group

6 Control Schedule Monitor & Control Process Group

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Define Activities

Define Activities is the process of identifying the specific actions to beperformed to produce the project deliverables.

InputsScope BaselineEnterprise Environmental factorsOrganizational Process Assets

Tools & TechniquesDecompositionTemplatesExpert Judgment

OutputsActivity ListActivity AttributesMilestone List

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Sequence Activities

Sequence Activities is the process of identifying and documentingrelationship among the project activities.

InputsActivity ListActivity AttributesMilestone ListProject Scope StatementOrganizational Process Assets

Tools & TechniquesPrecedence Diagramming

requirements (PDM)Dependency determinationApplying Leads and lags

OutputsProject Schedule network diagramProject Document Updates

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Estimate Activity Resources

Estimate Activity Resources is the process of estimating the type andquantities if material, people, equipment or supplies required to performeach activity.

InputsActivity ListActivity AttributesResource CalendarsEnterprise Environmental factorsOrganizational Process Assets

Tools & TechniquesExpert JudgmentAlternative AnalysisPublished Estimating dataBottom up estimatingProject Management Software

OutputsActivity Resource RequirementsResource Breakdown Structure

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Estimate Activity Durations

Estimate Activity Durations is the process of approximating the number ofWork periods needed to complete individual activities with estimatedresources.

InputsActivity ListActivity AttributesActivity Resource RequirementsResource CalendarsProject Scope StatementEnterprise Environmental factorsOrganizational Process Assets

Tools & TechniquesExpert JudgmentAnalogous EstimatingParametric EstimatingThree Point EstimateReserve Analysis

OutputsActivity Duration Estimates

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Develop Schedule

Develop Schedule is the process of analyzing activity sequences, durations,resource requirements and schedule constraints to create the Project Schedule.

InputsActivity ListActivity AttributesProject Schedule Network diagramsActivity Resource RequirementsResource CalendarsActivity Duration estimatesProject Scope StatementEnterprise Environmental factorsOrganizational Process Assets

Tools & TechniquesSchedule Network AnalysisCritical Path MethodCritical Chain MethodResource LevelingWhat‐if scenario AnalysisApplying Leads and LagsSchedule CompressionScheduling Tool

OutputsProject ScheduleSchedule BaselineSchedule DataProject Document Update. 91

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Schedule Network Analysis Techniques

Schedule Network Analysis is aTechnique that generates ProjectSchedule. These techniques are:

PERTCritical Path MethodSchedule CompressionWhat if Scenario AnalysisResource LevelingCritical Chain Method

PERT

Expected Duration= (P+4M+O)/6

Standard Deviation of an Activity=

(P‐O)/6

Variance of an Activity = [(P‐O)/6]^2

P= Pessimistic EstimateM= Most Likely EstimateO= Optimistic Estimate

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PERT Example

Activity O M P Expected  or PERT Duration

Standard Deviation

Activity Variance

Range of theEstimate

A 16 26 48 28 5.5 30.25 28,+/‐5.5

B 40 59 88 60.6 8 64 60.6,+/‐8

C 40 45 49 44.83 1.5 2.25 44.83,+/‐1.5

D 30 38 42 37.33 2 4 37.33,+/‐2

Project 170.76 10 100.5

If A, B, C, D are the only activities in the Project, what's the Project Duration?The Answer is 170.76 with a standard deviation of 10, so the minimum project durationis 160.76 and maximum duration is 180.76The Project standard deviation is calculated by adding all activity variances and takingthe square root of project variance

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Critical Path Method

Critical Path: The longest duration path through a network diagram anddetermines the shortest time to complete the project.

Float (Slack):

Total Float (Slack): The amount of time an activity can be delayedwithout delaying the project end date or an intermediary milestone.

Free Float (Slack): The amount of time an activity can be delayedwithout delaying the early start date of its successor's).

Project Float (slack): The amount of time a Project can be delayedwithout delaying the externally imposed project completion date requiredby the customer or previously committed by the Project Manager.

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How to Calculate Float ?

ES

LS

EF

LF

Forward Pass

Backward Pass

Float

ES: Early StartLS: Late StartEF: Early FinishLF: Late Finish

Float= LS‐ESFloat= EF‐LF

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Critical Path Example

Start

Activity 1Float=0

Activity 2Float=0

Activity 3Float=5

Activity 4Float=0

Activity 5Float=0

End

0 3

0 3

3 6

3 6

6 14

6 14

14 18

14 183 9

8 14

Paths Duration

Start, 1, 2, 4,5, End 18

Start, 1, 3, 5, End 13

Activity Duration

Activity 1 3

Activity 2 3

Activity 3 6

Activity 4 8

Activity 5 4

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Schedule Compression

Schedule Compression: Schedule compression is done during project planning to see if the desired completion date can be met and what will have to change to meet that date.Two techniques:Fast TrackingCrashing

Fast Tracking:

A B C

To

A

B

C

Crashing:

Making cost and schedule tradeoffsto determine how to obtain thegreatest amount of schedulecompression for the least incrementalcost while maintaining project scope.

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Schedule Compression Example

Activity Original Duration (in Months)

Crash Duration(in Months)

Time Savings

Original Cost in Dollars

Crash Cost

Extra Cost

Crash Cost Per Month

A 14 12 2 12,000 14,000 2,000 1,000

B 10 8 2 16,000 26,000 10,000 5,000

C 3 2 1 15,000 17,000 2,000 2,000

D 7 5 2 12,000 18,000 6,000 3,000

Assuming the Project has a float of ‐1 month. Which activity would you crash?The answer  is Activity A, as it has the minimum crash cost.

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Impact of Schedule Compression

Option General Impact to the Project

Fast Track Adds RisksIncreases management time for the Project Manager

Crash Adds CostsIncreases management time for the Project Manager

Reduce Scope Save time and costIncreases customer dissatisfaction

Cut Quality Saves cost and ResourcesIncreases Risks

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Other Schedule Network Analysis Techniques

What if Scenario Analysis: In this method following questions are asked to produce arealistic schedule.

What if a particular thing changed on the project, would that produce a shorterschedule?

Monte Carlo Analysis: This method of estimating uses a computer to simulate theoutcome of a project making use of the three point estimates (optimistic, pessimisticand most likely).

Resource Leveling: Resource leveling is used to produce a resource limited schedule. Itresults is in more stable no of resources used in the project.

Critical Chain Method: Critical Chain Method is another technique to develop theProject Schedule that takes into account both the activity and resource dependencies.We will not go into detail of this technique, just remember that one such techniqueexists.

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Control Schedule

Control Schedule is the process monitoring the status of the Project to updateproject progress and managing changes to the schedule baseline.

InputsProject Management PlanProject ScheduleWork Performance InformationOrganization Process Assets

Tools & TechniquesPerformance ReviewsVariance AnalysisProject Management SoftwareResource LevelingWhat‐if ScenarioAdjusting Leads and LagsSchedule CompressionSchedule ToolOutputs

Work Performance MeasurementsOrganizational Process AssetsChange RequestsProject Management Plan updatesProject Document Updates.

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Quiz‐1

1. Assume that the Management has asked you to get the Project completedtwo weeks early. What is the BEST thing for you to do?

A. Consult the Project SponsorB. CrashC. Fast TrackD. Advise the management of the Impact of the Change

2. A dependency requiring that design be completed before manufacturing canstart is an example of a:

A. Scope DependencyB. Mandatory DependencyC. External DependencyD. Discretionary Dependency

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Quiz‐2

3. Which of the following is the BEST thing to do to try to complete a Projecttwo days earlier?A. Meet the team and look for options for crashing or fast tracking the

critical pathB. Motivate the team to work hard and look for status next monthC. Tell your boss that its not possibleD. Inform customer that critical path does not allow early completion

4. A Project Manager has received activity duration estimates from his team.Which of the following does he need in order to complete scheduledevelopment.A. Change RequestB. ReservesC. List of Preventive ActionsD. Change Control Procedure

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Quiz‐3

5. During the Project Execution, a large no of changes are made to the Project.The Project Manager should:A. Talk to management before any changes are madeB. Make only the changes approved by the ManagementC. Make approved changes and retain Schedule baselineD. Wait for all the changes to happen and print a new Schedule

6. Which of the following is the BEST project management tool to determine thelongest time the project will take?A. Project CharterB. Milestone ChartC. Network DiagramD. WBS

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Answer Explanation‐1

Answer 1: The right answer is D. Advise the management of the Impact of theChange. Yes, Fast Tracking, Crashing etc are done to reduce the projectschedule, but first thing is to understand the impact of the change.

Answer 2: If you answered B. Mandatory Dependency. You are right. As thename suggest, this is an example of mandatory dependency.

Answer 3: The right answer is A. Meet the team and look for options for crashingor fast tracking the critical path . The first option always is to understandwhat best can be done, before going ahead to any other task. Also, when itcomes to schedule compression, Crashing or fast tracking are the twooptions.

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Answer Explanation‐2

Answer 5: The right answer is C. Make approved changes and retain Schedulebaseline. Note that its not bad to have changes, but changes must bemanaged and baseline should also be maintained.

Answer 6: The right answer is C. Network Diagram. I hope you found it prettystraightforward.

Answer 4: The right answer is B. Reserves . Refer to your Develop Scheduleprocess area knowledge, once the team member give their estimate, agood project manager should add some extra estimate to it, which is calledReserves. This is also called Padding the estimate.

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Lesson 7

Project Cost Management

Based on PMBOK Version 4

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Agenda

What is Project Cost ManagementDifference Between Cost Estimating and Cost BudgetingControl AccountThe Project Cost Management Processes.

Estimate CostsDetermine BudgetControl Costs

Earned Value ManagementProject Selection MethodsQuiz

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What is Project Cost Management ?

Project Cost Management includes the processes involved in estimating ,budgeting and controlling costs so that the project can be completed within theapproved budget.

Cost Management Plan: This plan contains details like, How to go aboutplanning the Project cost and how to effectively manage and control the projectto the cost baseline and manage cost variance.

Cost Management Plan is the part of the Project Management Plan.

The techniques of Estimating the cost involved in performing each of theproject activities are same as estimating the Time required.

For example, Expert Judgment, Analogous Estimating, Bottom up Estimating,Reserve Analysis are used in Cost Management as well.

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What is Control Account ?

In Larger Project, its is difficult to do cost management at each individualactivity level and hence costs are managed at a higher level.

Usually its is done at one level higher than the Work Package. Remember,Project is broken into WBS. WBS is further broken down into Work Packagesand Work Packages are finally broken into activities.

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The Project Cost Management Processes 

S. No. Project  Cost Management Process Done During

1 Estimate Cost Planning Process Group

2 Determine Budget Planning Process Group

3 Control Costs Monitoring & Control Process Group

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Estimate Cost

Estimate cost is the process of developing an approximation of the monetaryresources needed to complete project activities.

Cost estimates are a predication that is based on the information known at a givenpoint in time.

InputsScope BaselineProject ScheduleHuman Resource PlanRisk RegisterEnterprise Environmental FactorsOrganization Process Assets

Tools & TechniquesExpert JudgmentAnalogous EstimatingParametric EstimatingBottom up estimatingThree Point EstimatesReserve AnalysisProject Management SoftwareVendor Bid AnalysisOutputs

Activity Cost EstimatesBasis of EstimatesProject document updates

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Determine Budget

Determine Budget is the Process of aggregating the estimated costs of individualactivities or work packages to establish an authorized cost baseline.

Cost baseline includes all authorized budgets but excludes management reserves.

InputsActivity Cost EstimatesBasis of EstimatesScope baselineProject ScheduleResource CalendarsContractsOrganizational Process Assets

Tools & TechniquesCost AggregationReserve AnalysisExpert JudgmentHistorical relationshipsFunding Limit Reconciliation

OutputsCost Performance BaselineProject Funding RequirementsProject Document Updates

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Control Costs

Control cost is the process of monitoring the status of the Project to update theProject budget and managing changes to the cost baseline.

Any increase to the authorized budget can only be approved through the PerformIntegrated Change Control Process.

InputsProject Management PlanProject Funding RequirementsWork Performance InformationOrganizational Process Assets

Tools & TechniquesEarned Value ManagementForecastingPerformance ReviewsVariance AnalysisProject Management Software

OutputsWork Performance MeasurementsBudget ForecastsOrganizational Process Assets

UpdatesChange RequestsProject Management Plan Updates

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Earned Value Technique

The Earned Value Technique is a method to measure project performance againstthe Project baseline. Result from an Earned Value analysis indicate potential deviationof the Project from cost and schedule baselines.

Acronym Term Explanation

PV Planned Value Estimated Value of the Work Planned to be done

EV Earned Value Estimated Value of the Work Actually accomplished

AC Actual Value Actual Cost incurred in work accomplished

BAC Budget At Completion

The Budgeted amount for the total Work

EAC Estimate At Completion

The current estimate for the Total Project Cost

ETC Estimate to Complete

From this point, how much more the Project Would cost to complete

VAC Variance at Completion

How much over or under budget we expect to be at the end of the Project.

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Earned Value Formulas

Acronym Formula Explanation

Cost Variance (CV) EV‐AC Negative is over budget, positive is underbudget.

Schedule Variance (SV) EV‐PV Negative is behind schedule, Positive isahead of schedule.

Cost Performance Index (CPI)

EV/AC We are getting $_____ worth of work outof every $1 spent.

Schedule Performance Index (SPI)

EV/PV We are progressing at ________ percentof the rate originally planned.

Estimate At Completion (EAC)

BAC/CPI How much more do we expect the Projectto cost

Estimate to complete (ETC) EAC‐AC How much more the Project would cost.

Variance at Completion BAC‐EAC How much over or under budget we expect to be at the end of the Project.

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Earned Value Problem Example

Lets take the example of a Project to build a compound wall. It’s a four side walland each side is to take one day to build and its budgeted for $500 per side. The wallsare planned to be completed one after the other. Today is end of day 3, calculate theCPI and SPI of this project.

Activity Day 1 Day 2 Day 3 Day 4 Status at the End of Day 3

Side 1 S‐‐‐‐‐‐‐‐‐F Complete, spent $500

Side 2 S‐‐‐‐‐‐‐PF ‐‐‐F Complete, spent $700

Side 3 S—PF 50% done, spent $300

Side 4 Not yet Started

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Earned Value Problem Solution

Term Calculation Value Interpretation of the Answer

PV 500+500+500 $1500 By third day, we should have done $1500 worth of Work.

EV Complete, Complete, half done500+500+250=$1250

$1250 We have actually accomplished only work worth $1250

AC 500 plus 700 plus 300=$1500

$1500 We have actually spent $1500

CV $1250 minus $1500 ‐$250 We are over budget by $250

SV $1250 minus $1500 ‐$250 We are behind Schedule

CPI $1250 divided by $1500 .83 We are getting 83 cent out of every dollar spent

SPI $1250 divided by $ 1500 .83 We are progressing at 83% of the rate originally planned.

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Project Selection Methods

Present ValueNet Present ValueInternal Rate of ReturnPayback PeriodBenefit Cost Ratio

Present Value: Present Value meansvalue today of future cash flows.

Net Present Value (NPV): Presentvalue of the total benefits (income orrevenue) less the costs over timeperiod.

Q: You have two Projects to choose from. Project X will 2 years to complete and has a NPV of $35,000. Project Y will take 5 years to complete and has NPV of $95,000. Which one will you take up?

A: The answer is Project Y, because it has a higher NPV. Don’t get confused with longer duration of the Project, what is important is that NPV should be more.

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Project Selection Methods..contd.

Internal Rate of Return (IRR): If doing project is like putting money in a bankaccount and earning interest, you will put money in the Bank that givesmaximum interest. Same is with the case of Project.

For example: If you have to choose from Project A and Project B. Project Awith an IRR of 25% or Project B with an IRR of 15%.

The Answer is Project A. The IRR is better for Project A.

Payback Period: The number of time periods it takes to recover your investment in the Project before your start accumulating profits.

For Example: You have two projects to choose from. Project A with a payback period of 5 months or Project B with a payback period of 12 months. Which one would you go for?

The Answer is Project A. 

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Project Selection Methods..contd

Opportunity Cost: The Opportunity given up by selecting one project overanother.For Example: You have two projects to choose from. Project A with an NPV of$ 55,000 and Project B with an NPV of $ 85,000. What is the Opportunity costof selecting Project B ?

The Answer is $ 55,000. This is NPV of Project A, which we selected overProject B.

Benefit Cost Ratio: A benefit cost Ratio of more than 1 means that benefitsare greater than the costs.For Example: If the benefit cost ratio of Project A is 2.5 and benefit cost ratioof Project B is 1.5, which Project would you select.

The answer is Project A…as the Benefit cost ratio is higher in Project A.

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Some other Cost Related Terms

Law of Diminishing Return: The more you put into some thing, the less youget out of it. For example, doubling the no of resources working on a Project,cant get it done in half the time.

Working Capital: The amount of money the company has to invest on theProject and for the day to day company operations.

Depreciation: Large assets purchased by the company lose value time. This iscalled depreciation. They are two forms of depreciation.

Straight Line Depreciation: Same amount of depreciation is taken everyyear,. So, a Car with a price tag of $10,000 and useful life of 10 years, isdepreciated $1000 per year.

Accelerated Depreciation: Depreciates faster than straight linedepreciation. So, a Car with a price tag of $10,000 depreciates $3000 thefirst year, $1500 next year, $1000 the third year and so on….

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Quiz‐1

1. If Earned Value (EV) is $550, Actual Cost is $650, planned value is $600, whatis cost variance (CV) ?

A. ‐100B. +50C. ‐50D. +100

2. The difference between cost baseline and cost budget can be best describedas?

A. The Management ReserveB. The Sunk costC. Project Cost EstimateD. The contingency Reserve

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Quiz‐2

3. A Cost performance Index (CPI) of 0.73 means?A. The Project would cost 73% more than originally plannedB. The Project would cost 37% more than originally plannedC. The Project is progressing at only 73% of the originally plannedD. The Project is only getting 73 cents out of every $1 spent

4. A Schedule Performance Index (SPI) of 0.67 means?A. You are ahead of the Schedule by 33%B. You are behind schedule by 32.9%C. You are progressing at only 67% of the rate originally plannedD. You are progressing at only 37% of the rate originally planned

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Quiz‐3

5. As a Project Manager, you present your cost estimate to the Project Sponsorand he asks to cut cost by 10%. What would you do?A. Replace originally planned resources with new resources at lower ratesB. Cut some of the Project Activities and inform sponsor about the sameC. Strongly say NO to Sponsor and walk out from the ProjectD. Ask all team members to reduce cost of their activities by 10%

6. A Project Manager is allocating overall cost estimates to individual activitiesto establish a baseline for measuring project performance. What process ishe performing?A. Cost EstimationB. Cost ManagementC. Cost ControlD. Cost Budgeting

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Answer Explanation‐1

Answer 1: The right answer is A. ‐100. Apply the formula to get theanswer. Also note that Planned value is also provided, which is notused in solving this problem. This was just to confuse you.

Answer 2: The right answer is A. Management Reserve. This was apretty simple question and if you got it wrong, you should read thislesson all over again.

Answer 3: The right answer is D. The Project is only getting 73 cents outof every $1 spent. I have specifically informed about this earlier also.But I repeated this question again to give emphasis thatunderstanding CPI is very important.

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Answer Explanation‐2

Answer 5: The right answer is B. Cut some of the Project Activities and informsponsor about the same. Note that Project Manager has the responsibilityof cost overrun, so if you have estimated it in a certain way and itsrequired to be reduced, you should look at reducing scope by removingsome activities.

Answer 6: The right answer is D. Cost Budgeting . I hope you found it prettystraightforward.

Answer 4: The right answer is C. You are progressing at only 67% of the rateoriginally planned. I have specifically informed about this earlier also. But Irepeated this question again to give emphasis that understanding SPI isvery important.

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Lesson 8

Project Quality Management

Based on PMBOK Version 4

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Agenda

What is Quality ?What is Quality Management ?Cost of QualityThe Project Quality Management Processes.

Plan QualityPerform Quality AssurancePerform Quality Control

Seven Basic tools of QualityIntroduction to Six SigmaQuiz

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What is Quality?

Quality is defined as “Conformance to Requirement and fitness for use””

So, if all the Project requirements are met and the resulting product / service isusable as well, quality is supposed to have been met.

Quality is the responsibility of each and everyone at the Organization.

Project Manager is responsible for Project Quality, where as Senior management isresponsible for quality of the whole organization.

Quality comes at a cost.

Optimal Quality is reached at the pointwhere the incremental revenue fromimprovement equals the incremental costto secure it.

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What is Quality Management?

Quality Management includes creating andfollowing policies, procedures in order that aProject meets the defined needs it wasintended to meet.

So, the aim of Quality Management is toensure that Project gets completed with nodeviation from the Project requirements.

There are three aspects to QualityManagement and they are:

Quality PlanningQuality Assurance, andQuality Control.

Impact of Poor QualityIncreased CostLow customer Satisfaction

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Quality Planning vs. Quality Assurance vs. Quality Control

Quality Planning Quality Assurance Quality Control

Determine a Plan for theQuality.

Determine if the Project iscomplying with theOrganizational ( as well asProject) policies andprocedures.

Measure specific projectresults against standards.

Major task is preparationof  Quality Management Plan.

Major task is conducting regular project Audits.

Results of the Audit are corrective and preventive actions.

Major activity is defectrepair and measuringwhether the qualityindicators are improvingor not.

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Cost of Quality

Cost of quality includes all costs incurred over the life of the Product byinvesting in preventing nonconformance to requirements and ensuring thatthe product conforms to requirements.

Cost of Conformance

Quality TrainingInspection Testing

This is money spent during theProject to avoid failures.

Cost of Non Conformance

ReworkScrapWarranty Cost

This is money spent during and afterthe Project because of failures.

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The Project Quality Management Processes 

S. No. Project  Quality Management Process

Done During

1 Plan Quality Planning Process Group

2 Perform Quality Assurance Execution Process Group

3 Perform Quality Control Monitoring & Control Process Group

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Plan Quality

Plan Quality is the process of identifying quality requirements and/or standards forthe project or product, and documenting how the project will demonstratecompliance.

InputsScope baselineCost baselineSchedule baselineEnterprise Environmental factorsOrganization Process Assets

Tools & TechniquesCost benefit AnalysisCost of QualityBenchmarkingDesign of experiments

OutputsQuality Management PlanQuality MetricsQuality ChecklistsProcess Improvement Plans

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Perform Quality Assurance

Perform Quality Assurance is the process of determining whether quality standardsare being met, work is continuously improving and deficiencies are being corrected.

InputsProject Management PlanQuality MetricsWork Performance Information

Tools & TechniquesQuality AuditsProcess Analysis

OutputsChange Request to the Project Management PlanOrganization Process Assets UpdatesRecommendation for corrective Actions

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Perform Quality Control

Perform Quality Control is the process of monitoring and recording results ofexecuting the quality activities to assess performance and recommend necessarychanges.Quality Control is performed throughout the Project.

InputsProject Management PlanQuality MetricsQuality ChecklistWork performance measurementsApproved Change requestDeliverableOrganization Process Asset

Tools & TechniquesCause and effect diagramControl ChartsFlowchartingHistogramPareto ChartRun ChartScatter diagram

OutputsQuality Control MeasurementsValidated DeliverablesValidated Changes

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Seven Quality Tools

Cause and effect diagramControl ChartsFlowchartingHistogramPareto ChartRun ChartScatter diagram

Control Charts:

Control Chart graphically help you todetermine if the process is withinacceptable limit.A control chart can be used to monitor

project performance figures such as costor schedule variance.

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Cause and Effect Diagram (Fishbone diagram or Ishikawa Diagram)

Used to find the root cause of a defect.Helps stimulate thinking and organizes thoughts.Can be used in Quality Planning as well as Quality Control.

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A Typical Fishbone Diagram

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Seven Quality Tools

FlowchartingFlowchart shows how a process or

system flows from beginning to endand how the elements interrelate

Graphically represent the processand helps analyze how the problemsoccur.

HistogramIt is a vertical bar chart showing 

how often a particular variable occurred.

The height of each column represents the relative frequency of the variable

Pareto ChartAlso called 80/20 rule.Helps focus attention to the most

critical issues.Prioritizes potential cause of the

problem.Helps identify the critical few from

the uncritical many.

Run Chart

Used to identify a pattern of variation.Used to identifying trend.

Scatter diagramTracks two variables to see if they are 

correlated

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Introduction to Six Sigma

If the data volume is huge, it isdifficult to study the whole data andwhat is done to is to study the sampledata.

Generally if large volume of data areplotted, the graph takes the form of aBell as shown here.

Such distribution of data is also called“Normal Distribution”. The linecorresponding to the tip of the bell isthe median of the data sample.

Standard deviation is used to measure how far the data is from the mean. Sigma isanother name for Standard deviation.In any such distribution, if you go one sigma above or below the mean, it covers 68%

data.At Six sigma, the distribution covers 99.99985% of the data. So if a company operates

at 6 sigma, less than3.4 defects are expected from a sample of 1 million.

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Quiz‐1

1. Which of the following is an Example of the Quality Assurance?

A. Fishbone DiagramB. Pareto ChartC. InspectionD. Process Analysis

2. Standard deviation is a measure of how:

A. How good the sample data isB. Far the measurement is from the meanC. Far the estimate is from highest estimateD. How less the estimate is from highest estimate

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Quiz‐2

3. As a Project Manager, what would you give the highest priority: Quality, Costor Schedule?A. It would depend upon the ProjectB. Quality is of uttermost important. Cost and Schedule comes laterC. Cost is most important. Everything else comes afterwardsD. Completing the project as per schedule is most important

4. A Project Manager is encountering too many problem in his Project. Hewants to identify the root cause of the Problems so that he can focus hisattention to those causes. Which of the following tools should he use?A. Fishbone DiagramB. Control ChartC. Pareto ChartD. Histogram

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Quiz‐3

5. You are currently working as a Project Manager of a major Software Project,which is going under severe time pressure, when some one from the Qualitydepartment comes up for quality Audit of the Project. The team membersare not co‐operating for the Audit. As a Project Manager, what do youexplain them about the purpose of the Audit?A. It’s a management decision and we must allow them to auditB. To check if the project is following any ineffective or inefficient policiesC. To check the time sheet of all team membersD. To check if customer is aware about the Project process

6. Which of the following is an example of cost of conformance?A. Quality TrainingB. Cost of ReworkC. Warranty costD. Scrap

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Answer Explanation‐1

Answer 1: The right answer is D. Process Analysis. This was a straight forwardquestion and I hope you got it right. Audit and Process analysis are keyQuality Assurance activities.

Answer 2: The right answer is B. Far the measurement is from the mean. TheBell curve that you learn is all about the data only.

Answer 3: The right answer is A. It would depend upon the Project. Quality, Costand Schedule, all of them are part of Triple Constraints and equallyimportant. Which one to compromise on a particular project can be aproject specific call.

Answer 1: The right answer is D. Process Analysis. This was a straight forwardquestion and I hope you got it right. Audit and Process analysis are keyQuality Assurance activities.

Answer 2: The right answer is B. Far the measurement is from the mean. TheBell curve that you learn is all about the data only.

Answer 3: The right answer is A. It would depend upon the Project. Quality, Costand Schedule, all of them are part of Triple Constraints and equallyimportant. Which one to compromise on a particular project can be aproject specific call.

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Answer Explanation‐2

Answer 5: The right answer is B. To check if the project is following anyineffective or inefficient policies. Please note that the quality Audit is notsupposed to be a burden but of help to the Project.

Answer 6: The right answer is A. Quality Training . Training helps in directincrease of productivity and hence listed as cost of conformance.

Answer 4: The right answer is A. Fishbone Diagram. This helps inunderstanding the root cause of the defect by plotting all possible reasonsof a Defect.

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Lesson 9

Project Human Resource Management

Based on PMBOK Version 4

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Agenda

What is Human Resource ManagementRoles and Responsibilities of the Project SponsorFunctional Manager vs. Project ManagerThe Project Human Resource Management Processes.

Develop Human Resource PlanAcquire Project TeamDevelop Project TeamManage Project Team

Conflict ManagementPowers of Project ManagerMotivation TheoryQuiz

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What is Human Resource Management ?

Project Human Resource Management includes the processes thatorganize, manage and lead the Project Team.

The Project Team is compromised of the people with assigned roles andresponsibilities for completing the project.

The Project Management is a subset of the Project Team and is responsiblefor the project management and leadership activities such as initiating,planning, executing, monitoring, controlling and closing the project.

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Roles and Responsibility: Project Sponsor

During InitiationProvide financial resources to the

ProjectIssue the Project CharterProvide Authority to the Project

ManagerPrioritize between the triple constraints

During Project Planning

Determine the reports needed by themanagement to oversee the ProjectApprove the Project Management

Plan

During Project Execution and Monitoring & controlEnforce Quality PoliciesProtect the Project from outside

influencesHandle escalationsProvide clarity on Project ScopeApprove changes to Project Charter

During Project Closing

Formal Acceptance of the ProjectdeliverablesUpdate Organization Process

Database.

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Functional Manager vs. Project Manager

Functional Manager

Manages and owns resources in aspecific department like “Engineering”,“HR”.

Generally the subject matter expertof the functional area that he/sheheads.

Exact roles and responsibility of aFunctional Manager depends upon theOrg type, i.e. matrix, projectized etc

Assign specific Individuals to theProject team and negotiates with theProject manager regarding resources.

Project Manager

In charge of the Project but notnecessarily the resources.

Is not necessarily the technicalexpert.

Negotiates with functional managerfor the best available resources.

Is Responsible for the Project Quality.

Is Accountable for Project Failure.However, the Project success belongs tothe whole team.

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The Project Human Resource Management Processes 

S. No. Project  Human Management Process

Done During

1 Develop Human Resource Plan Planning Process Group

2 Acquire Project Team Execution Process Group

3 Develop Project Team Execution Process Group

4 Manage Project Team Execution Process Group

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Develop Human Resource Plan

Develop Human Resource Plan is the process of identifying and documentingproject roles, responsibilities, reporting relationships and creating a staffingmanagement plan.

InputsActivity Resource RequirementsEnterprise Environmental FactorsOrganization Process Assets

Tools & TechniquesOrganization ChartNetworking

OutputsHuman Resource Plan

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Acquire Project Team

Acquire Project Team is the process of confirming human resource availability andobtaining the team necessary to complete project assignments.

InputsEnterprise Environmental FactorsOrganization Process Assets

Tools & TechniquesPre‐assignmentNegotiationAcquisitionVirtual Teams

OutputsProject Team AssignmentsResource Calendars

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Develop Project Team

Develop Project Team is the process of improving the competencies, teaminteraction and the overall team environment to enhance project performance.

InputsProject Team AssignmentsProject Management Plan

Tools & TechniquesInterpersonal skillsTrainingTeam building ActivitiesGround RulesCo‐locationRecognition and Rewards

OutputsTeam Performance Assessments

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Manage Project Team

Manage Project Team is the process of tracking performance, providing feedback,resolving issues and managing changes to optimize project performance.

InputsProject Team AssignmentsProject Management PlanTeam Performance AssessmentsPerformance ReportsOrganization Process Assets

Tools & TechniquesObservations and ConversationsProject Performance AppraisalsConflict ManagementInterpersonal skills

OutputsRecommended corrective ActionsChange RequestsOrganization Process Asset Updates

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Conflict Management

Conflict is inevitable consequences of Organizational interactions.Conflict is best resolved by people involved in it and their immediate

managers.Conflict can be beneficial too!!Conflict can be avoided by:

Keeping team informed of the Exact Project statusClearly assigning work with no overlapping responsibilities.Continuously motivating team about the work challenges

Sources of Conflict :

ScheduleProject PrioritiesResourcesTechnical IssuesAdministrative IssuesCost Personality

Conflict Resolution Technique :

Confronting (Problem Solving).CompromisingWithdrawal (Avoidance)Smoothing Forcing

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Powers of the Project Manager

Here are some of the ways in which Project Manager can get the team membersperform on a Project:

Formal or LegitimateRewardPenaltyExpertReferent

The best form of powers are Expert and Reward. Penalty is the worst way of gettingthe work done.

Formal, Reward and Penalty are powers derived from Project Manager’s position in thecompany. Expert Power is earned on your own.

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Motivation Theory

How can a Project Manager reward team members if he or she does notunderstand what motivates them?

McGregor’s Theory of X and Y:All workers fit into twocategory, either X or Y.

Theory X: People should bewatched every minute. People areincapable, avoid work wheneverpossible.

Theory Y: People are willing towork without Supervision andthey want to achieve some thing.

Maslow Hierarchy for Needs

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Quiz‐1

1. Which Conflict Resolution Technique is the best for long lasting solution?

A. SmoothingB. ForcingC. Problem SolvingD. Withdrawal

2. What conflict resolution technique is when a Project Manager says “I can nolonger deal with this escalation”.

A. WithdrawalB. CompromiseC. Problem SolvingD. Forcing

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Quiz‐2

3. How is Project Performance Appraisals different than Team PerformanceAssessments?A. Project Performance Appraisal focuses on Team member performanceB. Project Performance Appraisal is evaluation of the team effectivenessC. It’s a tool for reducing employee turnoverD. It’s used for team building

4. You have been assigned as the Project Manager of an ongoing Projectinvolving 50 Employees of your company and 10 Sub contractors. You wantto know who is assigned to do what. Where should you look for thisinformation?A. Responsibility Assignment MatrixB. Project Organization ChartC. Pareto ChartD. Resource Histogram

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Quiz‐3

5. A team member is not performing well on a Project…because ofinexperience. But there is nobody else better qualified to do the Job. As aProject Manager, what should you do?A. Escalate the matter to higher authorityB. Try doing it on your ownC. Wait till the team member fails to deliverD. Arrange Training for the team member

6. As a Project Manager, you noticed that one of the Subcontractor iscontinuously sending late deliverables. When you pointed this, he agrees fora cost reduction but still wants you to accept late deliverable. This is anexample of ?A. ForcingB. SmoothingC. CompromisingD. Confronting

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Answer Explanation‐1

Answer 1: The right answer is C. Problem Solving. This was a straight forwardquestion and I hope you got it right. Problem Solving is the best way toresolve conflict.

Answer 2: The right answer is A. Withdrawal. I think it is obvious looking at thestatement by the Project Manager.

Answer 3: The right answer is A. Project Performance focuses on Team memberperformance. I have clarified it in detail while discussing the ManageProject Team Process. If you got this question wrong, you may like to referthat section again.

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Answer Explanation‐2

Answer 5: The right answer is D. Arrange Training for the team member.Remember the question asked for the best option, among the existingoptions, even though it might not be the best option in real life.

Answer 6: The right answer is C. Compromising. This must have been easyquestion for you. Here both parties are giving up some thing.

Answer 4: The right answer is A. Responsibility Assignment Matrix. Who isassigned to work on what is listed in Responsibility Assignment Matrix

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Lesson 10

Project Communication Management

Based on PMBOK Version 4

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Agenda

What is CommunicationCommunication Methods, Technology and ChannelsBasic Communication ModelThe Communication Management Knowledge Area. 

Identify StakeholdersPlan CommunicationsDistribute InformationManage Stakeholder ExpectationsReport Performance

Quiz

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What is Communication ?

Sr. Management

The Project Stakeholders

Other Project Managers

Other Projects

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Communication is a two way process of transferring information from one entity toanother. Communication is a two way process of transferring information from one entity toanother.A Project Manager spends almost 90% of his /her time on communication.

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Communication Methods , Technology & Channel

Communication Methods When Used

Formal Written Project Management Plans, Project Charter,Communicating over long distance

Formal Verbal Presentations

Informal Written Emails, Notes

Informal Verbal Conversations

Communication Technology:

Face to FaceTelephoneFaxEmailMeetings.

Communication Channel:

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Basic Communication Model

Encode: To translate thoughts or ideas into a language that is understood by others.Message / Feedback Message: Output of EncodingMedium: The communication method to convey the messageNoise: Anything that interfaces with the transmission and understanding of the

messages, for example, distance, unfamiliar technologyDecode: To translate the message back into meaningful thoughts or ideas.

Encode

Sender

Decode

Decode

Receiver

Encode

Message

Feedback Message

Noise Noise

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Project Communication Management Processes

S.No. Project Communication Management Process

Done During

1 Identify Stakeholder Initiating Process Group

2 Plan Communications Planning Process Group

3 Distribute Information Execution Process Group

4 Manage Stakeholder Expectations Execution Process Group

5 Report Performance Monitoring & ControlProcess Group

Project communication Management includes the processes required toensure timely and appropriate generation, collection, distribution, storage andultimate disposition of project information.

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Identify Stakeholder

Identify Stakeholder is the process of identifying all people or Organizationsimpacted by the Project and documenting relevant information regarding theirinterests, involvement and impact on project success.

InputsProject CharterProcurement DocumentsEnterprise Environmental factorsOrganizational Process Assets

Tools & TechniquesStakeholder AnalysisExpert Judgment

OutputsStakeholder RegisterStakeholder management strategy

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Plan Communications

Plan communication is the process of determining the project stakeholderinformation needs and defining a communication approach.

InputsStakeholder RegisterStakeholder Management StrategyEnterprise Environmental FactorsOrganizational Process Assets

Tools & TechniquesCommunication Requirement AnalysisCommunication TechnologyCommunication Methods

OutputsCommunication Management Plan

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Distribute Information

Distribute Information is the process of making relevant informationavailable to project stakeholders as planned.

InputsProject Management PlanPerformance ReportsOrganization Process Assets

Tools & TechniquesCommunication MethodsInformation Distribution Tools

OutputsOrganization Process Assets Update

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Manage Stakeholder Expectations

Manage stakeholder expectations is the process of communicating andworking with stakeholders to meet their needs and addressing issues as theyoccur.

InputsStakeholder RegisterStakeholder management strategyProject Management PlanIssue logChange logOrganization Process Assets

Tools & TechniquesCommunication MethodsInterpersonal skillsManagement skills

OutputsOrganization Process Assets UpdateChange RequestProject Management Plan Updates

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Report Performance

Report Performance is the process of collecting and distributingperformance information, including status reports, progress measurementsand forecasts.

InputsProject Management PlanWork performance InformationWork performance MeasurementsBudget forecastsOrganization Process Assets

Tools & TechniquesVariance AnalysisForecasting methodsCommunication MethodsReporting Systems

OutputsPerformance ReportsOrganization Process Assets UpdateChange Request

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Quiz‐1

1. As a Project Manager, you have a problem with a team member’sperformance. Which is the best way of communicating this problem withthe team member?A. Informal VerbalB. Formal VerbalC. Formal WrittenD. Informal Written

2. Lessons Learnt are best completed by whom?A. Project ManagerB. TeamC. CustomerD. Stakeholders

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Quiz‐2

3. As a Project Manager, you have team working for you across 5 differentcountries. What is the best communication method that you should follow.A. Informal WrittenB. Informal VerbalC. Formal WrittenD. Formal Verbal

4. You were asked to sit as an observer in another project’s status reviewmeeting. You observed that everyone present in the meeting is talking atthe same time about different issues. The whole meeting is in a chaos. Whatdo you think was not done?A. Meeting Agenda was not set.B. The right people were not invited for the meetingC. The Project Manager was ineffectiveD. There were cultural issues with people with different background

attending the meeting

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Quiz‐3

5. When shall you go for Formal Written communication with the Customer?A. When customers ask for work not covered in contractB. When customer reports defectC. When customer compliments a team member for good workD. When customers asks for weekly status report to be resent.

6. What's the use of creating Lessons learnt database.A. Should be done as it’s a company policyB. It serves as historical record for future projectsC. Project Manager can show this as his accomplishmentD. All the above

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Answer Explanation‐1

Answer 1: The right answer in this case is A. Informal Verbal. If this does notsolve the problem, than you should for Formal Written communication.

Answer 4: Remember, you need to select the Best answer among the availableanswer. In this case, the right answer is A. Meeting Agenda was not set.People were talking about various issues, so meeting agenda must not havebeen set.

Answer 2: If you think Project Manager alone should prepare lesson learnt, youare wrong. The right answer is D. Stakeholders. Since Stakeholders as a terminclude everyone.

Answer 3: You should look for many such practice questions. In this case, theright answer is C. Formal Written. Communication is a big issues, if teammembers are geographically distributed and its always a good practice touse formal written communication in such cases.

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Answer Explanation‐1

Answer 5: This should have been an easy question for you. The right answer is A.When customers ask for work not covered in contract. You must have recordfor any extra work done, as you might have to bill for that work and get paidfor it.

Answer 6: The right answer is B. It serves as historical record for future projectsThis must have been an easy question as all other options are obviously wrong.

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Lesson 11

Project Risk Management

Based on PMBOK Version 4

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Agenda

What is RiskHow is risk calculatedRisk CategorizationDecision TreeRisk ReserveThe Risk Management Knowledge Area. 

Plan Risk ManagementIdentify RiskPerform Qualitative Risk AnalysisPerform Quantitative Risk AnalysisPlan Risk ResponsesMonitor & Control Risks

Quiz

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What is Risk ?

Risk is an uncertainty that can positively or negatively impact a Project.

Example: Positive UncertaintiesYou ordered a new software which is

cheaper than your old softwarebecause of budget constraint..but thenew Software turns out to be moreefficient.

Example: Negative UncertaintiesGovernment mandates a compulsory

holiday due to Swine flue attack. Theproject delivery gets delayed.

Positive uncertainties are also called Opportunities or Good Risks.One who does not take risk is called “Risk Averse”.Risk Tolerance: means whether the risk can be tolerated or not. For example, a

company might have a policy that any risk that impacts their customer relationship willnot be tolerated.Risk Threshold: This means the amount of risk that is acceptable. For example, a

company may have a policy that a risk that increases the project cost by 10% or less isOK, but not more than that.

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How is Risk Calculated?

Risk = Probability * Impact

Work Package Probability Impact Monetary Value

X 25% $10,000 $2,500

Y 40% $2,000 $800

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Risk Categorization

External: Regulatory, governmentalInternal: Time, cost, scope, people, planningTechnical: Requirements, Technology, QualityProject Management: Estimating, Planning

Schedule Risk: ?Cost Risk: ?Quality Risk: ?Scope Risk: Looks like you have not understood the work properly and you might 

have to redo the whole thing!Resource Risk: CEO has asked our Tech Architect, to work on another project. In

such cases, who would make design decision on our project?

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Decision Tree: Which is more riskier ?

Failure :Probability=10%Impact= $15,000

Decision: To buya new Car or oldCar

Initial cost of buying new car= $20,000

Initial cost of buying old car= $15,000

Pass :Probability=90%Impact= $000

Failure :Probability=70%Impact= $10,000

Pass :Probability=30%Impact= $000

New Car $20,000+$15,000*10%= $21,500

Old Car $15,000+$10,000*.7= $22,000

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Risk Reserve

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Project Risk Management Processes

S.No. Project Risk Management Processes Done During

1 Plan Risk Management Planning Process Group

2 Identify Risks Planning Process Group

3 Perform Qualitative Risk Analysis Planning Process Group

4 Perform Quantitative Risk Analysis Planning Process Group

5 Plan Risk Responses Planning Process Group

6 Monitor and Control Risks Monitoring & Control ProcessGroup

Project Risk Management includes the processes of conducting risk managementplanning, identification, analysis, response planning and Risk monitoring & controlon a Project.

The objective of Risk Management is to increase the probability and impact ofpositive events and decrease the probability and impact of negative events.

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Plan Risk Management

Plan Risk Management is the process of defining how to conduct riskmanagement activities for a Project.

InputsProject Scope StatementProject Management PlanEnterprise Environmental FactorsOrganization Process Assets

Tools & TechniquesPlanning Meeting & Analysis

OutputsRisk Management Plan

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Identify Risks

Identify Risks is the process of determining which risks may affect theproject and documenting their characteristics.

InputsRisk Management PlanActivity Cost EstimatesActivity Duration EstimatesScope BaselineProject Management PlanEnterprise Environmental factorsOrganizational Process Assets

Tools & TechniquesDocumentation ReviewsInformation Gathering TechniquesChecklist AnalysisAssumption AnalysisSWOT AnalysisExpert Judgment

OutputsRisk Register

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Perform Qualitative Risk Analysis

Perform qualitative Risk Analysis is the process of prioritizing risks forfurther analysis or action by assessing their probability of occurrence andimpact.

InputsRisk RegisterRisk Management PlanOrganization Process Assets

Tools & TechniquesRisk Probability and Impact

AssessmentProbability and Impact MatrixRisk CategorizationRisk urgency AssessmentExpert Judgment

OutputsRisk Register updates

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Perform Quantitative Risk Analysis

Perform quantitative Risk Analysis is the process of numerically analyzingthe effect of identified risks on overall project objectives.

InputsRisk RegisterRisk Management PlanOrganization Process Assets

Tools & TechniquesData Gathering and Representation

techniquesQuantitative Risk Analysis and

Modeling TechniquesExpert Judgment

OutputsRisk Register updates

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Plan Risk Responses

Plan Risk Responses is the process of developing options and actions toenhance opportunities and to reduce threats to project objectives.

InputsRisk RegisterRisk Management Plan

Tools & TechniquesStrategies for negative risks

AvoidTransferMitigateAccept

Strategies for positive risksExploitShareEnhanceAccept

OutputsRisk Register updates

Residual RisksContingency PlansRisk Response OwnerReserves

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Monitor and Control Risks

Monitor and Control Risk is the process of implementing risk response plans,tracking identified risks, monitoring residual risks, identifying new risks and evaluatingrisk process effectiveness throughout the project.

InputsRisk RegisterRisk Management PlanPerformance Reports

Tools & TechniquesRisk Re‐assessmentRisk AuditsVariance and Trend AnalysisReserve AnalysisStatus Meetings

OutputsRisk Register updatesCorrective and Preventive ActionOrganization Process Asset Updates

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Quiz‐1

1. Purchasing Insurance cover for your project equipment is a example ofwhat?A. TransferB. MitigationC. AcceptanceD. Avoidance

2. You have been assigned as the Project Manager of a new e‐Business Project.There appears to be many risk in the project but no body has evaluatedthem to assess the range of possible outcomes. According to you, what wasnot done?A. Risk IdentificationB. Risk Response PlanningC. Risk Management PlanningD. Risk Register not updated

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Quiz‐2

3. During Risk Response Planning, you identified few new Risks..what shouldyou do?A. Just document as contingency reserve would take care of itB. Follow the Risk Management Processes of calculating risk probability

and impactC. Ask for increasing the contingency reserve to take care of these new

risksD. None of the Above

4. During Project Execution you encountered a major problem. What shouldyou do?A. Work towards solving the ProblemB. Inform your Manager about itC. Try to identify how this problem was not identified earlierD. Do something to ensure that nobody gets to know of this problem

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Quiz‐3

5. You are executing a Project when the customer asks for a change that’s goingto increase the schedule risk. What should you do first?A. Go ahead and accept the changeB. Inform the customer that project would get delayedC. Analyze the impact of the change with your teamD. Inform your manager about customer request

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Answer Explanation‐1

Answer 1: The right answer in this case is A. Transfer. You transferred your riskto the Insurance company.

Answer 2: The right answer is C. Risk Management PlanningI hope this was an easy question for you.

Answer 3: The right answer is B. Follow the Risk Management Processes ofcalculating risk probability and impact. At any stage, when new risks areidentified, you should follow the risk management process. Once the riskidentification is done, the next step is analyzing the probability and impactof the risk.

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Answer Explanation‐1

Answer 5: The right answer is C. Analyze the impact of the change with yourteam. This is the first thing that you should do, because unless you know theimpact, you will really not be sure on what should get communicated toeither your manager or to the customer.

Answer 4: The right answer is A. Work towards solving the Problem. Wheneverany problems happens on the project, as a certified project manager, youshould deal with the problem and solve it.

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Lesson 12

Project Procurement Management

Based on PMBOK Version 4

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Agenda

What is a ContractCentralized vs. Decentralized contracting Different Types of ContractKey terms in Procurement ManagementThe Procurement Management Knowledge Area. 

Plan ProcurementsConduct ProcurementsAdminister ProcurementsClose Procurements

Quiz

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What is a Contract ?

A contract represents a mutually binding agreement that obligates the sellerto provide the specified products, service or results and obligates the buyer toprovide the monetary or other valuable consideration.

Important Points you should know aboutcontract:Contracts should be formalContract is a legally binding documentContract must be in writingIf some thing is not written in contract, it canbe done only by issuing a change requestChanges to contract should be signed bothby the buyer and the seller

Who is responsible for creatingand managing contracts?

Contract Manager

Contract Manager is also calledProcurement Manager,Procurement Officer orContract Officer.

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Centralized vs. Decentralized Contracting

In centralized contracting, a single contract manager handles multiple projects, whereas in Decentralized contracting, a contract manager is assigned to the Project full time,and reports to the Project Manager.

Advantages Disadvantages

Increased expertise in Contracting Difficult to get contracting help as the person may be busy in multiple projects.

Standardized company practices

Advantages Disadvantages

More loyalty to the Project Duplication of expertise.

Easier access to contracting experience. Less standardization of contractingpractices from one project to another.

Centralized

Decentralized

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Different Types of Contract

Contract Types Details

Cost Reimbursable (CR)

Example: Cost plus a fee of $50,000

Cost plus Fee (CPF)Cost plus Percentage of Costs (CPPC)Cost plus Fixed Fee (CPFF)

Time and Material (T&M)

Example: $25 per hour + material cost.

Generally used for small amount

Fixed Price (FP) Fixed Price Incentive Fee (FPIF)

What are the advantages and disadvantages of each type?

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Advantages and Disadvantages of contract types

Advantages Disadvantages

Less costly than Fixed Price, becauseseller does not have to account for theirrisk.

Requires auditing all the seller invoicesand thus increases buyer efforts.

Such contracts are simple to draft. Seller has less incentive to control cost,and hence such contracts are inefficient.

Advantages Disadvantages

Seller has strong incentive to controlcost and hence these contract are efficient.

Seller may under quote initially and later try to make high margins on CRs

Requires less effort by buyer to managecontract.

Not having a proper SOW can result inseller not providing some of thedeliverables.

Cost Reimbursable

Fixed Price

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Advantages and Disadvantages of contract types…

Time and Material

Advantages Disadvantages

Easy to create Seller has no incentive to control cost

Good for resource augmentation kind of assignment

Requires monitoring of daily output

Good for small projects only

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Key Terms in Procurement Management

RFQ: Request for Quotation RFP: Request for ProposalRFI: Request for InformationRFB: Request for Bids

PO: Purchase Order:SOW: Statement of WorkQuotation

NDA: Non disclosure AgreementLOI: Letter of IntentT&C: Terms and Conditions

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Project Procurement Management Processes

S.No. Project Procurement Management Process

Done During

1 Plan Procurements Planning Process Group

2 Conduct Procurements Executing Process Group

3 Administer Procurements Monitoring & ControlProcess Group

4 Close Procurements Closing Process Group

Project Procurement Management includes the processes necessary topurchase or acquire products, services or results needed from outside theproject team.

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Plan Procurements

Plan Procurement is the process of documenting project purchasing decisions,specifying the approach and identifying potential sellers.

InputsScope BaselineRisk RegisterActivity Resource RequirementsActivity Cost EstimatesProject ScheduleEnterprise Environmental FactorsOrganization Process Asset

Tools & TechniquesMake or buy AnalysisExpert JudgmentContract Types

OutputsProcurement Management PlanProcurement Statement of WorkMake or buy decisionProcurement DocumentsSource Selection Criteria

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Conduct Procurements

Conduct Procurements is the process of obtaining seller responses,selecting a seller and awarding a contract.

InputsProject Management PlanProcurement DocumentsSource Selection CriteriaQualified Seller ListSeller ProposalsOrganization Process Asset

Tools & TechniquesBidder ConferenceProposal Evaluation TechniquesIndependent EstimatesExpert JudgmentsAdvertisingInternet SearchProcurement Negotiation

OutputsSelected SellerProcurement Contract

Award

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Administer Procurement

Administer Procurements is the process of managing procurementrelationships, monitoring contract performance and making changes andcorrections as needed.

InputsProcurement DocumentsProject Management PlanContractPerformance ReportsApproved Change RequestsWork Performance Information

Tools & TechniquesContract Change Control SystemProcurement Performance ReviewsInspection and AuditsPayment SystemsClaims Administration

OutputsProcurement DocumentationProject Management Plan UpdateChange Request

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Close Procurements

Close Procurement is the process of completing each Project Procurement.

InputsProject Management PlanProcurement Documentation

Tools & TechniquesProcurement AuditsNegotiated Settlements

OutputsClosed ProcurementsOrganization Process Assets Updates

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Quiz‐1

1. What is the Primary Objective of Negotiation?A. Find a win‐win proposition for both partiesB. Get the best dealC. Define the exact responsibility of each partyD. Clarify the contract scope

2. You have to fast track your project to meet the schedule deadline and henceyou decide to use your Software Development Vendor for developing theeLearning content as well, without going through the process of issuing theRFP and looking for the right vendor. What should be the main concern insuch scenario?A. Organization’s code of conduct violationB. The Vendor QualificationC. Too much dependence on same vendorD. None of the above

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Quiz‐2

3. You have been asked as a Project Manager to assist the contract manager indrafting the contract of a large project with limited scope clarity. What typeof contract would you suggest so that your Organization does not make anyfinancial losses?A. Times and MaterialB. Fixed FeeC. Cost Plus Fixed FeeD. Cost plus percentage of Cost

4. How is contract closure different than administrative closure.A. Contract closure involves customer as wellB. Contract closure is not mandatoryC. Contract closure can be done many a times in a contractD. Contract Closure is done before Administrative Closure

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Quiz‐3

5. A customer asked you to work on a contract scope of work for 6 months andcome back to him only after 6 months when the work is over. As a ProjectManager of the Vendor Organization, what should you do?

A. Complete the work as Requested but keep verifying scope with thecustomer

B. Meet the customer at the end of six month with deliverablesC. Ask your Sr. management to check if the customer is genuineD. Complete the work and also keep a written record that customer has

asked not to contact

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Answer Explanation‐1

Answer 1: The right answer in this case is A. Find a win‐win proposition forboth parties.. Remember, only a win‐win contract can be long term.

Answer 2: The right answer is B. The Vendor Qualification. The Software solutionvendor might not be the right vendor to work on eLearning as well.

Answer 3: The right answer is C. Cost Plus Fixed Fee. Please note that Time andMaterial type of contract is best suited for the smaller projects.

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Answer Explanation‐1

Answer 5: The right answer is A. Complete the work as Requested but keepverifying scope with the customer. Even though customer has requested notto contact, but you should keep verifying what you are doing to ensure thatthere is no gap in understanding the requirement.

Answer 4: The right answer is D. Contract Closure is done before AdministrativeClosure. All other options are wrong including Option A. Customer may beinvolved in even Administrative closure (e.g., contributing to lesson learnt)

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Lesson 13

Professional and Social Responsibility

Based on PMBOK Version 4

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Agenda

Ensure Individual IntegrityContribute to Project Management Knowledge BaseEnhance self Professional competencePromote Stakeholder collaborationQuiz

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Ensure Individual Integrity

1. Always create true report. Even if it shows the project in bad state.2. Follow the copy right rules. Never use unlicensed product.3. When a conflict does occur. Deal with it. Don’t shy away.4. Don’t accept any kind of bribe.5. Treat everyone with respect.6. Always give more importance to project needs than personal gains.7. Always do the right thing and follow the right process.8. Never divulge company information to un‐authorized parties.9. Respect Intellectual property rights.10. Follow PMI’s code of Professional conduct. Refer it on PMI website.

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Contribute to Project Management Knowledge Base

1. Share best practices learned on your project with other Project managers inyour Organization.

2. Mentor junior team members on Project Management related topics.3. Write or blog about Project Management. Participate in Project

Management discussions groups.4. Actively participate in analyzing past project data and come up with project

management related metrics to be used within the Organization.

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Enhance Self Professional Competence

Q. Project Manager’s are busy managing Project, when do they do this?A. The fact that you are reading this tutorial shows that you care about your

professional competence!

Few things that as a Project Manager you can do:

1. Analyze your strength and weakness.2. Look for a Senior Project Manager to mentor you on your weak areas.3. Actively look for applying Project Management Knowledge on your projects.4. Read Project Management books for new ideas or techniques.5. Discuss with other project managers the challenges you face on your projects.

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Promote Stakeholder Collaboration

Q. Why do the Project Manager needs to promote Stakeholder collaboration?A. So that Stakeholders are aware of the true benefits of the Project and help in

whatever way they can to make the project successful.

This is what Project Manager can do for Stakeholder collaboration:

1. Resolve Competing Interest.2. Deal with conflicting scenarios. Take charge!3. Respect cultural differences. More true when projects occur across geographies.4. Keep Stakeholders always informed about the true picture of the Project.

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Quiz‐1

1. You were about to send a deliverable to your customer and that point yourealized that there is one defect, which customer would not notice and istechnically against the contract, but still is a defect. What would you do?A. Discuss with the customerB. Go ahead and send the deliverableC. Inform your Sr. management and seek their guidanceD. Extend the Project deliverable timeframe

2. You have to catch a flight to submit a tender document for a strategic projectfor your company. You are running late for the flight, but there is a possibilitythat you can over speed and catch the flight. What would you do?A. Over speed and catch the flightB. Don’t over speed as its dangerous and against lawC. Ask your Manager for guidanceD. None of the above

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Quiz‐2

3. You were sent by your company to execute a Project in a foreign country. Allyour equipments are detained at the airport and airport authority asks for afee to release the equipment. You are getting late for your project. Whatwould you do?A. Don’t pay as it’s a bribeB. Establish whether such payment is legal in that countryC. Pay and get the money from management reserveD. Ask your boss for the next step

4.   You were competing with another colleague of yours to become the project manager of a prestigious new project in the organization, but unfortunately your colleagues gets that assignment. Later he comes to you for some documentation. What would you do.A. Don’t give him the document. Create problems for him.B. Give him the document and also co‐operate with him by all possible

meansC. Just avoid him and let him keep coming back to youD. Tell him that the document is not all useful and you have lost it

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Quiz‐2

5. There was a pre‐scheduled project status review meet and one of your teamLead sends his report just an hour before. You find too many issues with thereport. What would you do?A. Let him present the report and thrash him in front of everyone to teach

him a lessonB. Cancel the meeting and prepare the report yourselfC. Postpone the meeting and ask him to fix the issuesD. Do nothing..just wait and see what happens.

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Answer Explanation‐1

Answer 1: The right answer in this case is A. Discuss with the customer.. Itsethically not right to send a deliverable with defect to the customer. In thepresent case, the best thing is to speak to the customer and if he is ok,send the deliverable.

Answer 2: The right answer is B. Don’t over speed as its dangerous and againstlaw . Remember PMI is against violating any applicable law, including trafficrules.

Answer 3: The right answer is B. Establish whether such payment is legal in thatcompany. Before jumping the gun, establish whether what they are asking isa fee or a bribe. If it’s a bribe, don’t pay. If it’s a airport usage fee, please goahead and pay.

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Answer Explanation‐1

Answer 5: The right answer is C. Postpone the meeting and ask him to fix theissues. There is no point wasting everyone’s time with a wrong report. Also,its not a good idea to scold a team member in front of other. Remember, youneed to respect everyone including your sub‐ordinates.

Answer 4: The right answer is B. Give him the document and also co‐operate himby all possible means. Once your colleague is selected as a Project Manager,you should co‐operate with him by all means.

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Thank You

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