LCS International, Inc. PMP Review - leaderhelper.com · LCS International, Inc. PMP Review Chapter 11 ... PMP Exam Review - (Rev F) Chapter 11 ... .1 Risk register .2 Project management

LCS International, Inc.

PMP Review

Chapter 11

Controlling Work Results

Presented by

David J. Lanners, MBA, PMP

These slides are intended to be used only in settings where each

viewer has an original copy of the Sybex PMP Study Guide book.

LCS International, Inc. PMP Exam Review - (Rev F) Chapter 11 - Slide 2

Reproduced from PMP Project Management Professional Study Guide by permission of Sybex, Inc. ISBN 0-7821-3601-X. ©2005, Sybex, Inc. All rights reserved.


• Monitor and Control Risk

• Control Costs

• Control Schedule

• Perform Quality Control

• Verify Scope

• Control Scope

Monitor and Control Risks Monitor and Control Risks is the process of tracking identified risks, implementing risk response plans, monitoring residual risks, identifying new

(secondary) risks, and evaluating risk process effectiveness throughout the project. Project work should be continuously monitored for changing

and outdated risks. The process applies techniques such as variance and trend analysis to determine if project assumptions are still valid and/or

analysis shows that an assessed risk has changed or can be retired. The process should keep contingency reserves aligned with project risks.

11.6 Project

Risk

Management

To Perform Integrated Change Control

From Identify Risks, Work Performance Information

Tools & Techniques .1 Risk reassessment

.2 Risk audits

.3 Variance and trend analysis

.4 Technical performance measurement

.5 Reserve analysis

.6 Status meetings

Inputs .1 Risk register

.2 Project management plan

.3 Work performance information

.4 Performance reports

Outputs .1 Risk register updates

.2 Organization process assets updates

.3 Change requests

.4 Project management plan updates

.5 Project document updates





• Control Costs



• Verify Scope

• Control Scope

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

Updating the budget involves recording actual costs incurred to date. Any increase to the authorized budget can be approved only through the

Perform Integrated Change Control process. Monitoring the expenditure of funds without regard to the value of work being accomplished has

little value to the project other than to allow the project team to stay within the authorized funding.

7.3 Project

Cost

Management


From Determine Budget, Direct Project Execution

Tools & Techniques .1 Earned value management

.2 Forecasting

.3 To-complete performance index (TCPI)

.4 Performance reviews

.5 Variance analysis

.6 Project management software

Inputs .1 Project management plan

.2 Project funding requirements


.4 Organizational process assets

Outputs .1 Work performance measurements

.2 Budget forecasts


.4 Change requests





Earned Value Technique

• Planned Value (PV) = Budgeted Cost of

Work Scheduled (BCWS)

• Actual Cost (AC) = Actual Cost of

Work Performed (ACWP)

• Earned Value (EV) = Budgeted Cost of

Work Performed (BCWP)



Earned Value Chart



Earned Value Performance

• Cost Variance

(CV) = EV – AC

• Schedule Variance

(SV) = EV – PV

• Performance Indices

• Cost Performance Index (CPI ) = EV ÷ AC

• Schedule Performance Index (SPI) = EV ÷ PV



Earned Value Forecasting

• Budget at Completion = [Sum of All Project Budgets]

• Estimate at Completion EAC = AC + ETC [Assumptions Changed]

EAC = (AC + BAC) – EV [Variances will STOP]

EAC = [AC + (BAC – EV) ÷ CPI] [Variances will Continue]

• Estimate to Complete (ETC) = EAC – AC [See 1st Formula Above]

(ETC) = (BAC - EV) / CPI [Variances will Continue]

• Variance at Completion * (VAC) = BAC – EAC * [Not in Guide to PMBOK]



Hint: All abbreviations in rows and colums are in alphabetical order.

ACWP BCWP BCWS

AC EV PV

cpi ÷ ÷ spi

CV - - SV

Hint: Start with EV and then follow the arrows to create each formula

Earned Value Memory Aid

This chart is copyrighted by David J. Lanners, MBA, PMP





• Control Costs



• Verify Scope

• Control Scope

Control Schedule Control Schedule is the process of monitoring the status of the project to update project progress and manage changes to the schedule baseline.

It is concerned with determining the current status of the project schedule, influencing the factors that create schedule changes, determining that

the project schedule has changed, and managing the actual changes as they occur. Progress reporting and current schedule status includes

information such as actual start and finish dates for schedule activities and the remaining durations for unfinished schedule activities.

6.6 Project

Time

Management


From Develop Schedule, Direct Project Execution

Tools & Techniques .1 Performance reviews

.2 Variance analysis

.3 Project management software

.4 Resource leveling

.5 What-if scenario analysis

.6 Adjusting leads and lags

.7 Schedule compression

.8 Scheduling tool


.2 Project schedule





.3 Change requests







• Control Costs



• Verify Scope

• Control Scope



Schedule Compression

• Crashing

• Adding resources (always adds cost)

• Fast tracking

• Overlapping tasks (always adds risk)





• Verifying Project Scope

• Controlling Scope Changes

• Formulating Project Closeout

• Close Project or Phase

• Close Procurements

• Releasing Project Team Members

Perform Quality Control

Tools & Techniques .1 Cause and effect diagrams

.2 Control charts

.3 Flowcharting

.4 Histogram

.5 Pareto chart

.6 Run chart

.7 Scatter diagram

.8 Statistical sampling

.9 Inspection

.10 Approved change requests review

Outputs .1 Quality control measurements

.2 Validated changes

.3 Validated deliverables


.5 Change requests



Perform Quality Control (QC) is the process of monitoring and recording results of executing the quality activities to assess performance and

recommend necessary changes. Quality control is performed throughout the project. Quality standards include project processes and product

goals. Project results include deliverables and project management results, such as cost and schedule performance. The project management

team should have a working knowledge of statistical quality control, especially sampling and probability, to evaluate quality control outputs.


.2 Quality metrics

.3 Quality checklists

.4 Work performance measurements

.5 Approved change requests

.6 Deliverables

.7 Organizational process assets 8.3 Project

Quality

Management

To Perform Quality Assurance

From Plan Quality



Control Chart



Process Capability

Process capability is measured by comparing the customer’s specification

width to the process’s “normal” output (which is calculated by monitoring

the process output and calculating ± 3 std deviations from the mean).

Cp >1 is needed to meet specs without waste.

Acceptable Specification Width

Process Output Width Cp =

Upper Spec – Lower Spec

6 Standard Deviations Cp =



Process Capability Example

Upper Spec – Lower Spec

6 Standard Deviations Cp =

Process requires metal rods to be 5.000 inches long +- 0.050 inches.

The production process has a standard deviation of 0.006 inches.

(+ 0.050) – (- 0.050)

6 x (0.006) =

( 0.100 )

(0.036) = = 2.77



Frequency of Failures



Pareto Diagram



Scatter Diagram



Normal distribution (Bell-shaped curve)

| 68% |

| 95% |

| 99% |

Mean

2

3



Measures of Central Tendency

Mean = Average

n

x...xxx n21

n

1i

i

80 + 10 + 10 + 50 + 70 + 90 ________________________

6

= 310 ____

6

= 51.67

52 (Rounded)



Measures of Central Tendency

• Median – (Middle) as in Highway Median

• Data: 80 10 10 50 70 90

• First put in order: 10 10 50 70 80 90

• If an even number of data points, calculate the

midpoint between the two “middle” numbers.

• 50 + 70 = 120 / 2 = 60 is the median

• Mode - the most common (a la mode)

• 10 is the number that appears most frequently

• 10 is the mode



Population

• Mean

• Variance

• Standard Deviation

Terms and symbols

Sample

• Mean

• Variance

• Standard

Deviation

2

_x

2s

s



Variance & Standard Deviation

Population

2N

1i

i

2

N

x

Variance

2 Standard

Deviation

Sample

1

)( 2

12

n

xx

s

n

i

i

Sample

Variance

2ss Standard

Deviation



Calculate the standard deviation () of this data:

80 10 10 50 70 90

1. Compute the mean, 310/6 = 51.67 52

2. Subtract the mean from the data point and square the result:

80 - 52 = 28, 28 x 28 = 784

10 - 52 = -42, -42 x -42 = 1,764

10 - 52 = -42, -42 x -42 = 1,764

50 - 52 = -2, -2 x -2 = 4

70 - 52 = 18, 18 x 18 = 324

90 - 52 = 38, 38 x 38 = 1,444

total = 6,084

3. Calculate variance (2) = 6,084 / 6 = 1,014

4. Calculate standard deviation () = 1014 = 31.84

Example




• Using Perform Quality Control Techniques

• Verifying Project Scope

• Controlling Scope Changes

• Formulating Project Closeout

• Close Project or Phase

• Contract Closure

• Releasing Project Team Members





• Control Costs



• Verify Scope

• Control Scope

Verify Scope Verify Scope is the process of formalizing acceptance of the completed project deliverables. Verifying scope includes reviewing the deliverables

with the customer or sponsor to ensure that they are completed satisfactorily and obtaining formal acceptance of deliverables by the customer

or sponsor. Scope verification differs from quality control in that scope verification is primarily concerned with acceptance of the deliverables,

while quality control is primarily concerned with conformance to specifications and meeting quality requirements specified for the deliverables.

5.4 Project

Scope

Management

To Control Scope, Close Project or Phase

From Collect Requirements, Perform Quality Control

Tools & Techniques .1 Inspection


.2 Requirements documentation

.3 Requirements traceability matrix

.4 Validated deliverables

Outputs .1 Accepted deliverables

.2 Change requests






• Control Costs



• Verify Scope

• Control Scope

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

project scope ensures that requested changes and recommended corrective or preventive actions are processed through the Perform Integrated

Change Control process. Project scope control is also used to manage actual changes when they occur and is integrated with the other control

processes. Uncontrolled changes often are referred to as scope creep. Because change is inevitable, some kind of change control is mandated.

5.5 Project

Scope

Management


From Collect Requirements

Tools & Techniques .1 Variance analysis



.3 Requirements documentation

.4 Requirements traceability matrix



.2 Organizational process assets updates

.3 Change requests





Formulating Project Closeout

• Addition - (evolve into operations)

• Starvation - (resources are cut off)

• Integration - (resources distributed)

• Extinction - (natural completion)

Documents

LCS International, Inc. PMP Review - leaderhelper.com · LCS International, Inc. PMP Review Chapter 11 ... PMP Exam Review - (Rev F) Chapter 11 ... .1 Risk register .2 Project management