PMP On-Demand Course Slides - PMP Training & Exam …pmtraining.com/Assets/Documents/PMTraining-Exam-Prep-Slides.pdf · PMP On-Demand Course Slides . ... Task 11 Present the project

www.PMTraining.com

PMP On-Demand Course Slides Based on the PMBOK® Guide Fifth Edition

Course ID: PMTONDEMAND35 Contact Hours / PDUs: 35

For more information on project management certification training, please visit www.PMTraining.com

http://www.pmtraining.com/

PMP 2016 Exam Prep

Course ID: PMTONDEMAND35

Contact Hours / PDUs 35

Course Structure

Application & Exam

Types of Questions

PM Basics

Ten Knowledge Areas

Professional Responsibility

Practice Exams

2/9/2016 v. 8.0 - © Copyright and all rights reserved –2016 Looking Glass Development, LLC. 2

Looking Glass Development, LLC

(303) 663-5402 / (888) 338-7447

4610 S. Ulster St. #150 Denver, CO 80237

information@ lookingglassdev.com

PMP Application & Exam

www.PMTraining.com 1

PMP Application & Exam

What do the letters PMP mean?

• Project Management Professional.

What are the benefits of being a PMP?

• Higher income potential.

• Shows knowledge of international standards.

• Is required by a growing number of employers.


PMP Application & ExamHow Do I Become A PMP?


WorkExperience

ContactHours

ApplicationSubmission

90 Days

ApplicationCompleteness

Review

ApplicantPaymentProcess

Pass Exam(1 year)

ReceiveCertification

PMP

PMP Application

Applying online is the fastest way

http://www.pmi.org/certification/project‐management‐professional‐pmp.aspx

Mailing Address

PMI Certification Department

Fourteen Campus Boulevard

Newtown Square, PA. 19073



PMP Exam

DomainPercentage of Questions

Initiation 13%

Planning 24%

Executing 31%

Monitoring & Controlling 25%

Closing 7%

Total Number of Scored Questions 175

Total Number of Unscored Questions 25

Total Questions on Exam 200


PMP ExamTask Initiating – 13%

Task 1 Perform project assessment based upon available information, lessons learned from previous projects, & meetings with relevant stakeholders in order to support the evaluation of the feasibility of new products or services within the given assumptions and/or constraints.

Task 2 Identify key deliverables based on the business requirements in order to manage customer expectations & direct the achievement of project goals.

Task 3 Perform stakeholder analysis using appropriate tools & techniques in order to align expectations & gain support for the project.

Task 4 Identify high level risks, assumptions, & constraints based on the current environment, organizational factors, historical data, & expert judgment, in order to propose an implementation strategy.

Task 5 Participate in the development of the project charter by compiling & analyzing gathered information in order to ensure project stakeholders are in agreement on its elements.


PMP Exam

Task Initiating – 13%Task 6 Obtain project charter approval from the sponsor, in order to formalize the

authority assigned to the project manager & gain commitment & acceptance for the project.

Task 7 Conduct benefit analysis with relevant stakeholders to validate project alignment with organizational strategy & expected business value.

Task 8 Inform stakeholders of the approved project charter to ensure common understanding of the key deliverables, milestones & their roles & responsibilities.



PMP ExamTask Planning – 24%

Task 1 Review & assess detailed project requirements, constraints, & assumptions with stakeholders based on the project charter, lessons learned, & by using requirements gathering techniques in order to establish detailed project deliverables.

Task 2 Develop a scope management plan, based on the approved project scope & using scope management techniques, in order to define, maintain, & manage the scope of the project.

Task 3 Develop the cost management plan based on the project scope, schedule, resources, approved project charter & other information, using estimating techniques, in order to manage project costs.

Task 4 Develop the project schedule based on the approved project deliverables & milestones, scope & resource management plans in order to manage timely completion of the project.


PMP Exam

Task Planning – 24%Task 5 Develop the human resource management plan by defining the roles &

responsibilities of the project team members in order to create a project organizational structure & provide guidance regarding how resources will be assigned & managed.

Task 6 Develop the communications management plan based on the project organizational structure & stakeholder requirements, in to define & manage the flow of project information.

Task 7 Develop the procurement management plan based on the project scope, budget, & schedule, in order to ensure that the required project resources will be available.

Task 8 Develop the quality management plan & define the quality standards for the project and its products, based on the project scope, risks & requirements, in order to prevent the occurrence of defects & control the cost of quality.


PMP ExamTask Planning – 24%

Task 9 Develop the change management plan by defining how changes will be addressed & controlled in order to track & manage change.

Task 10 Plan for risk management by developing a risk management plan; identifying, analyzing, & prioritizing project risk; creating the risk register; & defining risk response strategies in order to manage uncertainty & opportunity throughout the project life cycle.

Task 11 Present the project management plan to the relevant stakeholders according to applicable policies & procedures in order to obtain approval to proceed with project execution.

Task 12 Conduct kick‐off meeting communicating the start of the project, key milestones, & other relevant information in order to inform & engage stakeholders & gain commitment.

Task 13 Develop the stakeholder management plan by analyzing needs, interests, & potential impact in order to effectively manage stakeholders’ expectations & engage them in project decisions.



PMP ExamTask Executing – 31%

Task 1 Acquire & manage project resources by following the human resource & procurement management plans in order to meet project requirements.

Task 2 Manage task execution based on the project management plan by leading & developing the project team in order to achieve project deliverables.

Task 3 Implement the quality management plan using the appropriate tools & techniques in order to ensure that work is performed in accordance with required quality standards.

Task 4 Implement approved changes & corrective actions by following the change management plan in order to meet project requirements.

Task 5 Implement approved actions by following the risk management plan in order to minimize the impact of the risks & take advantage of opportunities on the project.

Task 6 Manage the flow of information by following the communications plan in order to keep stakeholders engaged & informed.

Task 7 Maintain stakeholder relationships by following the stakeholder management plan in order to receive continued support & management expectations.


PMP ExamTask Monitoring & Controlling – 25%

Task 1 Measure project performance using appropriate tools & techniques in order to identify & quantify any variances & corrective actions.

Task 2 Manage changes to the project by following the change management plan in order to ensure that project goals remain aligned with business needs.

Task 3 Verify that project deliverables conform to the quality standards established in the quality management plan by using appropriate tools and techniques to meet project requirements and business needs.

Task 4 Monitor & assess risk by determining whether exposure has changed & evaluating the effectiveness of response strategies in order to manage the impact of risks & opportunities on the project.

Task 5 Review the issue log, update if necessary, & determine corrective actions by using appropriate tools & techniques in order to minimize the impact on the project.

Task 6 Capture, analyze, & manage lessons learned, using lessons learned management techniques in order to enable continuous improvement.

Task 7 Monitor procurement activities according to the procurement plan in order to verify compliance with project objectives.


PMP ExamTask Closing – 7%

Task 1 Obtain final acceptance of the project deliverables from relevant stakeholders in order to confirm that project scope & deliverables were achieved.

Task 2 Transfer the ownership of deliverables to the assigned stakeholders in accordance with the project plan in order to facilitate project closure.

Task 3 Obtain financial, legal, & administrative closure using generally accepted practices & policies in order to communicate formal project closure & ensure transfer of liability.

Task 4 Prepare & share the final project report according to the communications management plan in order to document & convey project performance & assist in project evaluation.



PMP ExamTask Closing – 7%

Task 5 Collate lessons learned that were documented throughout the project & conduct a comprehensive project review in order to update the organization’s knowledge base.

Task 6 Archive project documents & materials using generally accepted practices in order to comply with statutory requirements & for potential use in future projects & audits.

Task 7 Obtain feedback from relevant stakeholders using appropriate tools & Techniques & based on the stakeholder management plan in order to evaluate their satisfaction.


PMP Exam

Must get 61% or better

There is no penalty for wrong answers

Fees:

PMI members pay $405

Non‐members pay $555

Each applicant has one (1)

year to take exam


PMP Exam The exam is NOT based on the PMBOK Guide®.

The exam requires more than memorization.

Almost half of the exam requires you to identify what you would do in a given situation.

The exam emphasizes the five (5) process groups, ten (10) knowledge areas and 47 processes.

Exam requires you to answer the questions from PMI’s perspective based on the RDS.



PMP Exam Rarely will the answer be a direct quote from the PMBOK Guide.

Questions can be series based, i.e. you must answer the first question correctly to answer the next three (3) or four (4) questions.

A small percentage of the questions will be based on the inputs and outputs from the PMBOK Guide.

Earned Value, Critical Chain, PERT, EMV, and CPM will almost certainly be on the test.

Approximately 10%‐15% of the exam will require the use of other formulas.



(303) 663-5402 / (888) 338-7447



Types of Exam Questions

Types of Questions


Two Right Answers Remember, what would you do first.

Made up Terms Failing to know the key terms &

acronyms will = failure.


Types of QuestionsSituational Questions

Jun is a project coordinator for a large textile company. She is currently working on three separate projects and most of her resources are also not dedicated to only one project. One day she receives an e-mail from one of her customers complaining that one of her projects is largely failing to deliver what the customer had expected and they are likely going to be canceling the contract. What is the most likely cause of this problem?

A. The customers in question were not involved early enough in the process.

B. Customer sign-off was not obtained for the scopestatement.

C. Scope definition happened too late in the process.D. The customer did not read their e-mail.


Types of QuestionsExtraneous Information

You are the project coordinator for a project that currently has a CPI of .93 and an SPI of 1.09. Your project has an EV of $101,197 and an ETC of $247,000. You are more than halfway through your project. Your sponsor has just requested a major shift in project scope what should you do?

A. Try to convince the sponsor to change their mind.B. Agree to implement the changes immediately.C. Evaluate the changes for impacts to the cost and

schedule.D. Stop the project until the issue is resolved.


Types of Questions

Understanding vs. Memorization A new project manager is complaining to a coworker about the development methodology they are being forced to use. The coworker suggests the project manager make more use of a work breakdown structure. Which of the following statements best justifies this recommendation?

A. The WBS is a great communication tool.

B. The WBS shows the relationships between resources and deliverables.

C. The WBS shows the relationships between functional managers and resources.

D. The WBS allows for progressive elaboration using placeholder workpackages.



Recurring ThemesPMI’isms

There is a basic assumption that you keep historical records for all your projects.

You must understand the process of project management (what to do first, second, etc.).

You must not only understand the topics, but also why you should care about them.

Everything should be coordinated with the stakeholders of a project and expectations managed.


Recurring ThemesPMI’isms

All roles and responsibilities must be clearly defined.

A project plan is not a Gantt chart.

A WBS is not an org chart but is a wonderful and key element of successful project management.

Project managers are awesome and are very skilled.

PMI does not support gold plating (adding extra functionality).

Expert judgment and bottoms up is preferred.

Environmental factors are influencing the project.2/9/2016 v. 8.0 - © Copyright and all rights reserved –

2016 Looking Glass Development, LLC. 26

The Exam – Why People Fail Belief that they can pass the test from their experience (not studying).

A lack of PM experience.

Failure to read the questions.

Failure to read all of the choices.

Not trusting their knowledge.

Nervousness.




(303) 663-5402 / (888) 338-7447



Organizations and Project Management

Organizations


Differentiation vs. IntegrationThe need for specialized areas ofexpertise (Production,Marketing, Finance, etc.). Thelevel of differentiationhinges on the needs of theorganization.

The need for coordinated andcross-functional efforts to accomplish organizational tasks.

Organizations

2/9/2016v. 8.0 ‐ © Copyright and all rights reserved – 2016 Looking Glass Development, LLC. 30

ProjectCoordinator

Accounting Dept.

Chief Executive

Sales Dept. Marketing Dept. Engineering Dept.

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Employee 7

Employee 8

Employee 9

Employee 10

Employee 11

Employee 12

A Functional Organization


OrganizationsPotential Advantages of a Functional

Organization Clear reporting relationships.

Highly specialized expertise.

Homogeneous groups.

Drive for technical excellence.

Clear career path.

Creates high quality organizational knowledge within the functional area.


OrganizationsPotential Issues with a Functional

Organization Conflicting priorities from overlapping projects.

Project boundaries limited to discipline.

Barrier to customer influence & satisfaction.

Employee development opportunities limited.

Project Manager is dependent on personal influence.

Hierarchical decision and communication processes.

Overwork technical issues vs. build to a standard.

Fosters part‐time roles.


Organizations


Chief ExecutiveOr Program Mgr.

Project 1 Project 2 Project 3

Accounting Staff Accounting Staff Accounting Staff

Sales Staff Sales Staff Sales Staff

Marketing Staff Marketing Staff Marketing Staff

Engineering Staff Engineering Staff Engineering Staff

A Projectized Organization (PBO)

Project Manager Project Manager Project Manager


OrganizationsPotential Advantages of a Projectized

Organization Strong project manager role.

Full‐time administrative staff clear accountability.

Fosters collocation.

Improves focus.

Cost & performance tracking of projects.

Decision‐making based on overall project view.

Customer relationships tied to various projects


OrganizationsPotential Issues with a Projectized

OrganizationReduction of employee’s professional identity.

Reduced focus on technical competence.

Leadership by the non‐technically skilled.

Focus on administrative work vs. technical work.

De‐valuing of functional managers.

Process vs. deliverable emphasis.

Creates redundancy of efforts.

Project end can be traumatic event.


OrganizationsThe Matrix Organization

Are a blend of Functional and Projectizedorganizations.

They are described as WEAK if they moreclosely align to Functional Organizations.

They are described as STRONG if they moreclosely align to Projectized Organizations.



Organizations


A Weak Matrix OrganizationChief Executive

Accounting Dept. Sales Dept. Marketing Dept. Engineering Dept.

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Employee 7

Employee 8

Employee 9

Employee 10

Employee 11

Employee 12

ProjectCoordinator Resources Assigned to a Given Project

Organizations


A Balanced Matrix OrganizationChief Executive

Accounting Dept. Sales Dept. Marketing Dept. Engineering Dept.

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Employee 7

Employee 8

Employee 9

Employee 10

Employee 11

Project Mgr

Resources Assigned to a Given Project

Organizations


A Strong Matrix OrganizationChief Executive

AccountingDept.

SalesDept.

EngineeringDept.

Mgr of ProjectManagers (PMO)

Employee 1

Employee 2

Employee 3

Employee 4

Employee 5

Employee 6

Employee 7

Employee 8

Employee 9

Project Mgr 1

Project Mgr 2

Project Mgr 3

Resources Assigned to a Given Project


OrganizationsPotential Advantages of a Matrix

OrganizationVisibility to project objectives.

Improved control of resources by project managers.

Rapid response to contingencies.

Greater support from functional managers.

Coordination of efforts across organization.

Project end is not a traumatic event.

Strong technical base.

More effective dissemination of information.


OrganizationsPotential Issues with a Matrix

OrganizationProject personnel report to more than one boss.

Complex to monitor and control.

Conflicts with resource allocation and projectpriorities.

Potential for duplication of effort with“independent” projects.

Power struggles and competition for scarceresources.


Organizations


Functional Projectized

Project Manager’s Authority Little or None Limited

Low to Moderate

Moderate to High

High to Almost Total

Resource Availability Little or None LimitedLow to

ModerateModerate to

HighHigh to Almost

Total

Who Controls The Project budget

Functional Manager

Functional Manager Mixed

Project Manager Project Manager

Project Manager’s Role Part‐Time Part‐Time Full‐Time Full‐Time Full‐Time

Common Titles For Project Manager’s Role

Project Coordinator/ Project Leader

Project Coordinator/ Project Leader

Project Manager/ Project Officer

Project Manager/ Program Manager

Project Manager/ Program Manager

Project Management Administrative Staff Part‐Time Part‐Time Part‐Time Full‐Time Full‐Time

ProjectCharacteristics

Weak Matrix

Balanced Matrix

Strong Matrix

Organizational StructuresOrganization

Structure



(303) 663-5402 / (888) 338-7447



The Basics of Project Management

The Basics of PM

What is Project Management? The management of a temporary endeavor undertaken to create a unique product or service.

It requires the project team to deliver the agreed upon service or product with the agreed upon functionality on time and on budget with the agreed upon level of quality.


The Basics of PM

Projects Have unique charter & goals

Might have unique organization

Develops a unique product or service

Defined start & end dates

Mostly heterogeneous teams

Operations Usually has semi‐permanent

charter

Semi‐permanent organization

Maintains an existing set ofpractices

Provides a standard product or service (e.g. an assembly line)

Are continuous



The Basics of PM

A program is a group of related projectsmanaged in a coordinated way to obtainbenefits and control.

A portfolio is a grouping of related andunrelated projects and programs managed &grouped for visibility and control purposes.


Organizational Project Management

Projects Programs Portfolios

ScopeProjects have defined objectives. Scope is progressively elaborated throughout the project lifecycle.

Programs have a larger scope and provide more significant benefits.

Portfolios have an organizational scope that changes with the strategic objectives or the organization

Change

Project managers expect change & implement processes to keep change managed & controlled.

Program managers expect change from both inside & outside the program & are prepared to manage to it.

Portfolio managers continuously monitor changes in the broader internal & external environment.

Planning

Project managers progressively elaborate high‐level information into detailed plans throughout the project lifecycle.

Programmanagers develop the overall program plan & create high‐level plans to guide detailed planning at the component level.

Portfolio managers create & maintain necessary processes & communication relative to the aggregate portfolio.

Management

Project managers manage the project team to meet the project objectives.

Program managers manage the program staff & the project managers; they provide vision & overall leadership.

Portfolio managers may manage or coordinate portfolio management staff, or program and project staff that may have reporting responsibilities into the aggregate portfolio,

Success

Success is measured by product &project quality, timeliness, budget compliance, & degree of customer satisfaction.

Success is measured by the degree to which the program satisfies the needs & benefits for which it was undertaken.

Success is measured in terms of the aggregate investment performance & benefit realization of the portfolio.

Monitoring

Project managers monitor & control the work of producing the products, services, or results that the project was undertaken to produce.

Program managers monitor the progress of program components to ensure the overall goals, schedules, budget, & benefits of the program will be met.

Portfolio managers monitor strategic changes & aggregate resource allocation, performance results, & risk of the portfolio,


The Basics of PMKey Terms

Project Management Office (PMO) —Centralizes the management of projects. Typical 3 structures:Supportive – Providing a consultative role by providing templates, best practices, training, access to information, & lessons learned.

Controlling – Provide support & require compliance.

Directive – Take control of the projects by directly managing the projects.




Management by Objectives (MBO) — Requires allprocesses, initiatives and operations to be trackedagainst specific, defined objectives. MBO only worksif management strongly supports it. MBO has threebasic steps:

– Establish unambiguous and realistic objectives.

– Regularly evaluate if the objectives are being met.

– Implement corrective action.2/9/2016 v. 8.0 - © Copyright and all rights reserved –



Work Performance Data — The raw observations &measurements identified during activities performed to carry out project work: % work physically completed, start & finish dates & technical measures.

Work Performance Information – The performance data collected from controlling processes: status ofdeliverables, status of change requests, forecasted ETC.

Work Performance Reports – The physical orelectronic representation of work performanceinformation.



Project Life Cycle — A series of phases that aproject passes through from its initiation toits closure. It provides the basic frameworkfor managing the project.

Project Phases – Represent a collection oflogically related project activities thatculminate in the completion of one or moredeliverables.



The Basics of PMKey Terms – Life Cycles

Predictive — Also known as fully plan driven, areones where the scope, time & cost aredetermined as early as possible – Waterfall.

Iterative & Incremental – Project phasesintentionally repeat one or more project activitiesas the team’s understanding increases.

Adaptive – Change driven or agile are intended torespond to high levels of change & stakeholderinvolvement with fixed time & cost.



Constraints — Represent factors that limit options of the project manager and project team. • Common constraints include time, budget, requirements, resources and/or risks.

• Management’s responsibility to set the priority of each constraint.• Project manager and project team’s responsibility to analyze the impacts of changes against the project constraints.

Organizational Project Management Maturity Model (OPM3) — Is PMI’s model to help organizations determine their level of project management maturity.

Stakeholders & Stakeholder Management —Stakeholders represent anyone with a vested interest in the project.


The Basics of PM


It’s all about managing six (6) things. It’s simple

really…Scope

Quality

Schedule

Budget

Resources

Risk


The Basics of PMPMBOK® Guide Knowledge Areas

Knowledge Areas describe project management knowledge and practice in terms of their component processes.


Integration Management

Scope Management

Time Management

Cost Management

Quality Management

HR Management

Communications Management

Risk Management

Procurement Management

Stakeholder Management

The Basics of PM

4 Integration Management 5 Scope Management 6 Time Management 7 Cost Management 8 Quality Management 9 Human Resource Management 10 Communications Management 11 Risk Management 12 Procurement Management 13 Stakeholder Management


6.1 Plan Schedule Management6.2 Define Activities6.3 Sequence Activities6.4 Estimate Activities Resources6.5 Estimate Activity Durations6.6 Develop Schedule6.7 Control Schedule

Ten Knowledge Areas Extended


The Basics of PM

Inputs Tools & Techniques Outputs


The Basics of PM

4 Integration Management 5 Scope Management 6 Time Management 7 Cost Management 8 Quality Management 9 Human Resource Management 10 Communications Management 11 Risk Management 12 Procurement Management 13 Stakeholder Management


6.1 Plan Schedule Management6.2 Define Activities6.3 Sequence Activities6.4 Estimate Activities Resources6.5 Estimate Activity Durations6.6 Develop Schedule6.7 Control Schedule

Ten Knowledge Areas Extended

6.3.1 Inputs6.3.2 Tools & Techniques• 6.3.2.1 PDM• 6.3.2.2 Dependency Determination• 6.3.2.3 Leads & lags6.3.3 Outputs

The Basics of PM


Plan

CheckAct

Do

Initiating

Processes

Planning Processes

Executing Processes

Closing

Processes

Monitoring &

Controlling Processes


The Basics of PM

ProjectInitiator/Sponsor

ProjectInputs

Project

Boundaries

InitiatingProcesses

Monitoring &Controlling Processes

Planning Processes

Executing Processes

ClosingProcesses

ProjectDeliverables

ProjectRecords

EndUsers

ProcessAssets

*Source: PMBOK Guide 2008 p.44


The Basics of PM


The Process Groups & Knowledge Areas Combined

Integration

PlanningInitiating Executing

Monitoring &

Controlling Closing

Scope Scope

Time Time

Cost Cost

Quality

Human Resources

Communication

Risk Risk

Procurement



(303) 663-5402 / (888) 338-7447



Project Integration Management



*Note: Not all process interactions & data flows among the process groups are shown.

The processes and activities needed to identify, define, combine, unify and coordinate the various processes and project management activities within the Project Management Process Groups.


Integration Management4.1 Develop Project Charter

Names the project manager & sponsor.

Explains how the project supports the organizational strategy.

Explains the business need & why the need exists.

Defines any constraints and assumptions that exist (this includes any deadlines, budget limitations, resource limitations, any known risks, and scope must haves).

Defines the project success criteria (it is always recommended that success criteria be quantitative in nature as subjective success criteria usually leads to failure.


4. Project IntegrationManagement

Initiating Process Group

4.1Develop Project

Charter

Integration Management4.1 Develop Project Charter


Inputs.1 Project statement of work

.2 Business case

.3 Agreements

.4 Enterprise environmental factors

.5 Organizational process assets

Tools & Techniques.1 Expert judgment

.2 Facilitation factors

Outputs.1 Project charter

Integration ManagementThe Business Case

Benefit Measurement Methods – subjective measures.

Constrained Optimization Methods – linear, integer, dynamic or multi‐objective programming.

Economic Models– Payback Period

– Future Value

– Present Value

– Net Present Value (NPV)

– Internal Rate of Return (IRR)

– Benefit / Cost ratio (BCR or BCI)



Integration ManagementThe Business Case

Discounting or Present Value – Value today of funds available in the future.

PV = FV / (1 + i)n

– If you want $1,000 in three (3) years how much do you have to invest today at 8% to receive your $1,000?

– End of Yr. 1 = $1,000 / (1 + 8%) = $925.93

– End of Yr. 2 = $925.93 / (1 + 8%) = $857.34

– End of Yr. 3 = $857.34 / (1 + 8%) = $793.83



The Business CaseNet Present Value – Present Value minuspresent cost.

Internal Rate of Return ‐ Average rate of returnearned over the life of the project. It is wherediscounted cash flow – up front cost = 0.



4.2 Develop Project Management Plan The Project Management Plan is a key project document that is a collection of the outputs of the planning processes of the Planning Process Group.

Describes which project management processes will be used.

Describes how the project is executed, monitored and controlled, and closed.

Updated throughout the project.


Planning Process Group


4.2Develop Project

ManagementPlan



4.2 Develop Project Management Plan


Inputs.1 Project charter.2 Outputs from planning

processes.3 Enterprise environmental

factors.4 Organizational process

assets

Tools & Techniques.1 Expert judgment.2 Facilitation

Outputs.1 Project management

plan



StaffingManagement Plan

CommunicationManagement Plan

RiskManagement Plan

ProcurementManagement Plan

ScopeManagement Plan

ScheduleManagement Plan

CostManagement Plan

QualityManagement Plan

ProjectManagement

Plan

RequirementsManagement Plan

ChangeManagement Plan

ConfigurationManagement Plan

Process ImprovementMgmt. Plan

StakeholderManagement Plan

Integration ManagementThe Project Management Plan Can

Also IncludeScope baselineMilestone listResource calendarsSchedule baselineCost baselineRisk register




4.3 Direct & Manage Project WorkProject Manager, with project team, directsperformance and manages interfaces with therest of the organization


Executing Process Group


4.3Direct & Manage

ProjectWork

Integration Management4.3 Direct & Manage Project Work


Inputs.1 Project management

plan.2 Approved change

requests.3 Enterprise

environmental factors


Tools & Techniques.1 Expert judgment.2 Project management

information system.3 Meetings

Outputs.1 Deliverables.2 Work performance

data.3 Change requests.4 Project management

plan updates.5 Project document

updates

Integration Management4.4 Monitor & Control Project Work

Monitoring processes – collect, measure, disseminate, assess.

Control via corrective actions.

Compare actual work to plans/baselines.

Analyze, track, forecast.

Monitor implemented changes.


Monitoring and Controlling Process Group


4.4Monitor &

Control ProjectWork

4.5Perform

IntegratedChange Control



4.4 Monitor & Control Project Work


Inputs

.1 Project management plan

.2 Schedule forecasts

.3 Cost forecasts

.4 Validated changes

.5 Work performance information



Tools & Techniques

.1 Expert judgment

.2 Analytical techniques

.3 Project managementinformation systems

.4 Meetings

Outputs.1 Change requests.2 Work performance

reports.3 Project management


updates

Integration Management4.5 Perform Integrated Change Control Performed from the very beginning to the very end.

Identify that a change has occurred.

Influence factors that circumvent the integrated changecontrol process.

Review, approve (or reject), monitor change requests.

Maintain integrity of the baselines.

Review and approve all recommended corrective and preventive actions.

Assess impact of proposed changes.




4.4Monitor &

Control ProjectWork

4.5Perform

IntegratedChange Control


4.5 Perform Integrated Change Control


Inputs.1 Project management plan.2 Work performance reports.3 Change requests.4 Enterprise environmental factors.5 Organizational process assets

Tools & Techniques.1 Expert judgment.2 Meetings.3 Change control tools

Outputs.1 Approved change

requests.2 Change log.3 Project management

plan updates.4 project documents

updates



4.6 Close Project or PhaseAll the activities necessary to finalize projectactivities

Close a phase or the whole project – verifyproject deliverables and coordinateacceptance



Closing Process Group

4.6Close Project

Or Phase


4.6 Close Project or Phase



plan.2 Accepted deliverables.3 Organizational process

assets

Tools & Techniques.1 Expert Judgment.2 Analytical techniques.3 Meetings

Outputs.1 Final product,

service or result transition

.2 Organizational process assets updates

Integration ManagementSummary

Six (6) processes.

Role and components of the charter.

Charter issued by party external to the project.

Project management plan is collection of other plans –level of detail depends on the project.

Change control throughout the project.

Closure = deliverables AND project records.

Environmental factors are at play.




(303) 663-5402 / (888) 338-7447



Project Scope Management

Scope Management Scope management is the process of defining what

work is required and then making sure all of that work and only that work is done. (PMBOK Guide p.105)

No project is ever conducted without a plan.

A WBS must be created for all projects.

Involve all the project stakeholders in requirements

You must obtain approval of the project scope before execution begins.

Do not ever gold plate the project.

Scope changes allowed so long as they

follow the agreed upon change

management process.



5. Project ScopeManagement

5.5ValidateScope

5.6ControlScope



5.1Plan Scope

Management

5.2Collect

Requirements

5.3DefineScope

5.4CreateWBS

Scope ManagementThe Product vs. Project Scope:

Project Scope –The work that must beperformed to deliver a product, service orresult with the specified features andfunctions. PMBOK Guide 2012 p. 555

Product Scope – The features and functionsthat characterize a product service or result.PMBOK Guide 2012 p. 552



Scope Management

5.1 Plan Scope Management Process of creating a scope management plan that documents how the project scope will be defined, validated & controlled.

It tells everyone how scope will be

managed throughout the project.




5.1Plan Scope

Management

5.2Collect

Requirements

5.3DefineScope

5.4CreateWBS

Scope Management5.1 Plan Scope Management



plan.2 Project charter.3 Enterprise environmental


assets

Tools & Techniques.1 Expert judgment.2 Meetings

Outputs.1 Scope management

plan.2 Requirements

management plan

Scope Management

5.2 Collect Requirements Process of defining and documenting stakeholders’ need to meet the project objectives.

This process is directly tied to

managing expectations.




5.1Plan Scope

Management

5.2Collect

Requirements

5.3DefineScope

5.4CreateWBS


Scope Management5.2 Collect Requirements


Inputs.1 Scope management

plan.2 Requirements

management plan.3 Stakeholder

management plan.4 Project charter.5 Stakeholder register

Tools & Techniques.1 Interviews.2 Focus groups.3 Facilitated workshops.4 Group creativity

techniques.5 Group decision-making

techniques.6 Questionnaires and

surveys.7 Observations.8 Prototypes.9 Benchmarking10. Context diagrams11. Document analysis

Outputs.1 Requirements

documentation.2 Requirements

traceability matrix

Scope Management

5.3 Define Scope


Inputs.1 Scope management

plan.2 Project charter.3 Requirements

documentation.4 Organizational process

assets

Tools & Techniques.1 Expert judgment.2 Product analysis.3 Alternatives generation.4 Facilitated workshops

Outputs.1 Project scope

statement.2 Project documents

updates

Scope Management

5.4 Create WBSWork Packages

Decomposition

Progressive elaboration

Placeholder work packages

Control account



Scope ManagementComponents of the WBS

The WBS Structure – resembles an organizationchart or decision tree.

The WBS Dictionary – A brief synopsis of theproject and each major component or workpackage.

The Code of Accounts – The numbering systemused to reference and roll‐up the WBS.– The highest level is 1

– The next level is 1.x

– The next level is 1.x.x and so on2/9/2016 v. 8.0 - © Copyright and all rights reserved –


Effective WBS’s


Basement FinishProject

Design&

Inspections

Design

Rough Design

Final Design

Inspections

Rough Electrical

Rough HVAC

Rough Frame

Final

HVAC

Trunk Line

Branch Lines

Plumbing Electrical

Rough Electrical

Outlets

Fixtures

Box Connections

FramingDrywall

&Finish

Drywall

Mud & Tape

Texture

Paint

Carpet

Scope Management

5.4 Create WBS


Inputs.1 Scope management plan .2 Project scope statement.3 Requirements

documentation.3 Enterprise environmental


assets

Tools & Techniques.1 Decomposition.2 Expert judgment

Outputs.1 Scope baseline.4 Project document

updates


Scope Management

5.5 Validate ScopeFormalizing acceptance of deliverables.

Review deliverables with stakeholders.

Is binary in nature.

Often in parallel with quality control.




5.5ValidateScope

5.6ControlScope

Scope Management

5.5 Validate Scope


Inputs.1 Project management plan.2 Requirements

documentation.3 Requirements traceability

matrix.4 Verified deliverables.5 Work performance data

Tools & Techniques.1 Inspection.2 Group decision-

making techniques

Outputs.1 Accepted deliverables.2 Change requests.3 Work performance

information .4 Project document

updates

Scope Management

5.6 Control ScopeInfluence the factors that create projectscope changes.

Control the impact of those changes.

Ensure use of Integrated Change Control.

Manage changes.

Scope creep.




5.5ValidateScope

5.6ControlScope


Scope Management

5.6 Control Scope



plan.2 Requirements

documentation.4 Requirements

traceability matrix.5 Work performance

data.6 Organizational

process assets

Tools & Techniques.1 Variance analysis

Outputs.1 Work performance

information.2 Change requests.3 Project management


updates.5 Organizational

process assets updates

Scope Management

Project Scope Management ‐Summary

Six (6) processes.

Project and product scope.

Scope is revised throughout project.

WBS – know its importance and that it isused in many other processes; and it isdeliverables based.



(303) 663-5402 / (888) 338-7447



Project Time Management


Time Management

All the processes required to ensure timelycompletion of the project.

The major output of these processes is theproject schedule.



6. Project TimeManagement

6.7Control

Schedule


6. Project Time Management

6.2Define

Activities

6.4Estimate Activity

Resources

6.3SequenceActivities


Durations

6.6DevelopSchedule

6.1Plan ScheduleManagement

Time Management6.1 Plan Schedule Management

Defines the “rules” for developing &managing the schedule.

The benefit of this process is that itprovides guidance & direction

on how the schedule will be

managed.




6.2Define

Activities


Resources



Durations

6.6DevelopSchedule


Time Management

6.1 Plan Schedule Management



plan.2 Project charter.3 Enterprise environmental


assets

Tools & Techniques.1 Expert judgment.2 Analytical techniques.3 Meetings

Outputs.1 Schedule Management

plan


Time Management6.2 Define Activities

Creating a “list” of all the work that needs to be done to produce the project deliverables.

Work packages are decomposed into schedule activities.

These schedule activities provide a

basis for estimating, scheduling,

executing, and monitoring and

controlling.




6.2Define

Activities


Resources



Durations

6.6DevelopSchedule


Time Management

Rolling Wave Planning


ProjectInitiation

AnalyzeExistingSituation

Define NewSystem

Requirements

PurchaseAnd InstallPackage

Construct &Test SystemComponents

Test &ImplementSystem

PlanningDetails

MoreDetails

TimeProjectStart

LessDetails

Time Management

6.2 Define Activities


Inputs.1 Schedule management

plan.2 Scope baseline.3 Enterprise

environmental factors.4 Organizational process

assets

Tools & Techniques.1 Decomposition.2 Rolling wave planning.3 Expert judgment

Outputs.1 Activity list.2 Activity attributes.3 Milestone list


Time Management

6.3 Sequence ActivitiesOrdering the activities that have been definedand assigning logical dependencies.




6.2Define

Activities


Resources



Durations

6.6DevelopSchedule


Time ManagementPDM

Finish to Start

Start to Start

Finish to Finish

Start to Finish


F - F

S – F is not common

S - S

F - S

A

C

B D

EG

F H

Time Management

Conditional DiagrammingGERT is most common.

Allows for probability.

Allows for looping.


Eyeball Diagram

A B C

20%

80%


Time Management

Types of DependenciesMandatory (hard logic) – inherent in the work.

Discretionary (soft logic) – from best practicesor as desired.

External – From outside the team ororganization. Does not necessarily haveanything to do with the requirements.


Time ManagementOther Terms

Lead Time – Dependency relationship which allows the second task to start prior to the completion of the first.

Lag Time – Dependency relationship which requires the second task to wait.

One‐Point Estimate – A single value estimate.

Regression Analysis – a graphic analysis to track if two variables are related.

Heuristic – A rule of thumb.

Learning Curve – The improvement achieved by doing an activity more than once.

Monte Carlo Simulation – A computer model which allows the analyst to simulate an activity 1,000 or more times to achieve a probability of a result.


Time Management

6.3 Sequence Activities


Inputs.1 Schedule management

plan.2 Activity list.3 Activity attributes.4 Milestone list.5 Project scope statement.6 Enterprise

environmental factors.7 organizational process

assets

Tools & Techniques.1 Precedence

diagramming method (PDM)

.2 Dependency determination

.3 Applying leads and lags

Outputs.1 Project schedule

network diagrams.2 Project document

updates


Time Management

6.4 Estimate Activity Resources


Inputs.1 Schedule management plan.2 Activity list.3 Activity attributes.4 Resource calendars.5 Risk register.6 Activity cost estimates.7 Enterprise environmental


assets

Tools & Techniques.1 Expert judgment.2 Alternatives analysis.3 Published estimating

data.4 Bottom-up estimating.5 Project management

software

Outputs.1 Activity resource

requirements.2 Resource breakdown

structure.3 Project document

updates

Time Management6.5 Estimate Activity Durations

Compilation (not the sum) of activity durationestimates results in the project duration.

All supporting data is documented.

Uses identified risks & cost estimates.

Accuracy improves over time.

Ranges, e.g. 280 days ± 10%.




6.2Define

Activities


Resources



Durations

6.6DevelopSchedule


Time Management

6.5 Estimate Activity Duration


Inputs.1 Schedule management plan.2 Activity list.3 Activity attributes.4 Activity resource

requirements.5 Resource calendars.6 Project scope statement.7 Risk register.8 Resource breakdown

structure.9 Enterprise environmental


assets

Tools & Techniques.1 Expert judgment.2 Analogous estimating.3 Parametric estimating.4 Three point estimating.5 Group decision-making

techniques.6 Reserve analysis

Outputs.1 Activity duration

estimates.2 Project document

updates


Project Evaluation & Review Technique (PERT)

Time Management


Project Evaluation & Review Technique (PERT)

Effective Budgets & Schedules

PERT

Weighted =

Average

Optimistic +

4X

Most

Likely + Pessimistic

6

PERT

Standard =

Deviation

Pessimistic ‐ Optimistic

6


Effective Budgets & Schedules

Agile Estimation• Ideal Time ‐ Assumes resources 100% dedicated

• Relative Sizing – Often called T‐Shirt sizing.

• Story Points – Aggregates complexity & time.

• Fibonacci Sequence – Another comparisontechnique.

• Affinity Estimating – Process of groupingrequirements into categories or collections. Usedto group similarly sized user stories together.



Time Management6.6 Develop Schedule

Iterative.

Determines planned start and end dates foractivities and the whole project.

Baseline for measuring progress.




6.2Define

Activities


Resources



Durations

6.6DevelopSchedule


Time ManagementCPM

The Critical Path is the project path which willbe the longest duration or where all activitieshave zero float.

The Critical Path does not necessarily have thegreatest risk.

The Critical Path determines the earliestcompletion of the project.


CPM ES ‐ Early Start is the earliest the task can begin.

Dur – Duration is the amount of calendar time the task will take.

EF ‐ The Early Finish is the earliest the task can end.

LS – The Late Start is the latest the task can begin.

LF – The Late Finish is the latest the task can end.

Float ‐ The Slack, slip or float is amount of time the task can delay without impacting the project end date. Also called Total Float.

Near Critical Path – A network path close in length to the critical path.

Free Float – The amount of time a task can delay without delaying the early start date

Project Float – The amount of time the project can be delayed without impacting an externally imposed completion date.

Time Management


ES DUR EF

Deliverable

LS Float LF


Deliverable F2

Deliverable E2

Deliverable B4

2Deliverable C

Deliverable A

20

Effective Budgets & SchedulesThe Critical Path Method

ES DUR EF

Deliverable

LS Float LF


LS = LF – DUR = Backward Pass

EF = ES + DUR = Forward Pass

Float = LF – EF or LS – ES

2 4

3Deliverable D

2 5

2 2 6 6 8

8 10

200

5 3 8

02 6 06 8

8 0 10

46 8

Time Management

Resource OptimizationAfter CPM.

Redistribute resource assignments where aresource is needed on more than one task inthe same time period.

Can change the critical path.


Time ManagementCritical Chain Method

Critical Chain = Longest chain of dependent tasks with zero slack taking into consideration resource constraints.

Progress equal burn rate of the buffers vs. work complete.

Measurement is done against the Project Buffer.

Using CPM would take an estimated 75 units. Which is then missed by 100%.

CCPM allows for more accurate estimates with smaller misses.2/9/2016 v. 8.0 - © Copyright and all rights reserved –


10 15 10

15 30 10

30 10

20

PDM/CPM

PR 10OR 10 BL 15

BL 30 Y 10

Y 20OR 30R 15 GR 10

FB 10

FB 17

FB 5

PB 27


Time Management

Story

Sequence

TheBackbone

WalkingSkeleton

LessOptional

MoreOptional

Op

tion

alit

y

Story

Story StoryStory

StoryStory

StoryStory

StoryStory

StoryStory

Story

Story

Story

Story

StoryStory

Story

Story

Story Story

Story Story

Story Story

Story

Story

Story

Story Story

Story Story

Story Story

Story Story

Story Story

Story Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

Story

A Sample Story Map


Time Management6.6 Develop Schedule


Inputs

.1 Schedule management plan

.2 Activity list

.3 Activity attributes

.4 Project schedule network diagram

.5 Activity resource requirements

.6 Resource calendars

.7 Activity duration estimates

.8 Project scope statement

.9 Risk register

.10 Project staff assignments

.11 Resource breakdown structure



Tools & Techniques

.1 Schedule network analysis

.2 Critical path method

.3 Critical chain method

.4 Resource optimization techniques

.5 Modeling techniques

.6 Leads and lags

.7 Schedule compression

.8 Scheduling tool

Outputs

.1 Schedule baseline

.2 Project schedule

.3 Schedule data

.4 Project calendars

.5 Project management plan updates

.6 Project document updates

Time Management6.7 Control Schedule

Part of Integrated Change Control.

Determine the current status of the projectschedule.

Influence the factors that create schedule changes.

Determine that the project schedule has changed.

Manage the changes as they occur.



6. Project TimeManagement

6.7Control

Schedule


Time Management

6.7 Control Schedule


Inputs.1 Project management plan.2 Project schedule.3 Work performance data.4 Project calendars.5 Schedule data.6 Organizational process

assets

Tools & Techniques.1 Performance reviews.2 PM software.3 Resource optimization

techniques.4 Modeling techniques.5 Leads & lags.6 Schedule compression.7 Scheduling tool


information.2 Schedule forecasts.3 Change requests.4 Project management

plan updates.5 Project documents

updates.6 Organizational process

assets updates

Time ManagementProject Time Management – SummarySeven (7) processes.

PERT, GERT, PDM, CPM, CCPM.

Crashing, fast tracking.

Decomposition, baseline, float or slack.

Schedule development is iterative.



(303) 663-5402 / (888) 338-7447



Project Cost Management


Cost Management

All the process involved in planning, estimating, budgeting and controlling costs so that the project can be completed within the approved budget.



7. Project CostManagement

7.4ControlCosts



7.2Estimate

Costs

7.3Determine

Budget

7.1Plan Cost

Management

Cost ManagementPrimarily concerned with cost of resources.

Also concerned with– Life‐cycle costing

– Opportunity cost

– Sunk costs

The Cost Management Plan is part of

overall project management plan.– Control thresholds

– Earned value rules

– Reporting formats


Cost Management

7.1 Plan Cost ManagementDefining the rules which are used to manageproject costs.

It defines how the team will

manage the money.




7.2Estimate

Costs

7.3Determine

Budget

7.1Plan Cost

Management


Cost Management7.1 Plan Cost Management



plan.2 Project charter.3 Enterprise


assets

Tools & Techniques.1 Expert judgment.2 Analytical techniques.3 Meetings

Outputs.1 Cost management

plan

Cost Management

7.2 Estimate CostsDeveloping an approximation of the costs ofthe resources needed to complete eachschedule activity

Cost Estimating ≠ Pricing




7.2Estimate

Costs

7.3Determine

Budget

7.1Plan Cost

Management

Cost Management7.2 Estimate Costs


Inputs.1 Cost management plan.2 Human resource

management plan.3 Scope baseline.4 Project schedule.5 Risk register.6 Enterprise


assets

Tools & Techniques.1 Expert judgment.2 Analogous estimating.3 Parametric estimating.4 Bottom-up estimating.5 Three-point

estimating.6 Reserve analysis.7 Cost of quality.8 Project management

software.9 Vendor bid analysis.10 Group decision

making techniques

Outputs.1 Activity cost

estimates.2 Basis of estimates.3 Project documents

updates


Cost Management

Accuracy of estimates increases as the project progresses

Rough Order of Magnitude+50%

Budget Estimate or the Budget+10%


Cost Management

7.3 Determine Budget

Aggregating the cost estimates of individual activities or work packages to establish a total Cost Baseline.




7.2Estimate

Costs

7.3Determine

Budget

7.1Plan Cost

Management

Cost ManagementAccounting Terms

Variable Costs – Costs that change as the units produced changes.

Fixed Costs – Costs that do not change with changes tovolume produced.

Direct Costs – Costs that are directly attributed to project work.

Indirect Costs – Items that benefit more than one project and are not attributed to a specific activity.

Value Analysis or Engineering – Finding less costly ways to do the same work.



Cost Management

7.3 Determine Budget


Inputs.1 Cost management plan.2 Scope baseline.3 Activity cost estimates.4 Basis of estimates.5 Project schedule.6 Resource calendars.7 Risk register.8 Agreements.9 Organizational process

assets

Tools & Techniques.1 Cost aggregation.2 Reserve analysis.3 Expert judgment.4 Historical relationships.5 Funding limit

reconciliation

Outputs.1 Cost baseline.2 Project funding

requirements.3 Project document

updates

Cost Management

Funding Requirements


The difference between the maximum funding and the end of the cost baseline is Management Reserve.

Time

Cost Baseline

Actual Costs

Funding Requirements

Cumulative $

Cost ManagementDepreciation

Straight Line Depreciation – Present valueminus present cost.

Production Method ‐


cost – residual value estimated units of useful life (production)

Depreciation amt. to = deduct each year till

salvage value is reached

Depreciation amt. to deduct = each year till salvage value

is reacheduseful lifecost – residual value



Double Declining Balance (DDB) – Accelerated depreciation method. Begin by dividing 100% by the term of the asset and doubling the result. Each subsequent year, that same percentage is multiplied by the remaining balance to be depreciated. Using a purchase price of $100,000 and a residual of $25,000 on a five (5) year schedule:

100% / 5 Year Term = 20%

Double the 20% rate or 40%

Year 1 value = $100,000 ‐ ($100,000 * 40%) = $60,000

Year 2 value = $60,000 – ($60,000 * 40%) = $36,000

Year 3 value = $36,000 – ($36,000 * 40%) = $21,600

Since this is less than the salvage value it is $25,000



Sum of the Years Digits (SYD) – Accelerated depreciation method. Begin by adding the number of years in the schedule. For example, for a five (5) year schedule add 1+2+3+4+5 = 15. Next, take the asset value minus the residual value and divide it by this result (15). If the salvage value is $25,000 then:

Year 1 value = $100,000 – (5/15 * $75,000) = $75,000

Year 2 value = $75,000 – (4/15 * $75,000) = $55,000

Year 3 value = $55,000 – (3/15 * $75,000) = $40,000

Year 4 value = $40,000 – (2/15 * $75,000) = $30,000

Year 5 value = $30,000 – (1/15 * $75,000) = $25,000


Cost Management7.4 Control Costs

Influencing the factors that create changes to the cost baseline.

Ensuring requested changes are agreed upon.

Managing the actual changes when and as they occur.

Assuring that potential cost overruns do not exceed the authorized funding periodically and in total for the project.




7.4ControlCosts


Cost Management7.4 Control Costs


Inputs.1 Project

management plan.2 Project funding

requirements.3 Work performance


process assets

Tools & Techniques.1 Earned value

management.2 Forecasting.3 To-complete

performance index.4 Performance reviews.5 Project management

software.6 Reserve analysis


information.2 Cost forecasts.3 Change requests.4 Project management



assets updates


Cost Management

PV

AC

EV

EAC

SLIPPAGE

COSTVARIANCE

SCHEDULEVARIANCE

NOW

BAC VALUE

TIME

Cumulative Cost Curve

Cost Management


Actual Costs Earned Value Planned Value

CV = = SVMinus Minus

Divided By Divided ByCPI = = SPI

In Alphabetical Order


Cost ManagementForecasting ‐ ETC

ETC based on new estimate.

ETC based on atypical variances.

ETC = BAC‐EV

ETC based on typical variances.

ETC = (BAC‐EV)/CPI

ETC based on both the CPI & SPI.

ETC = (BAC‐EV)/(CPI*SPI)


BAC = Budget at CompletionBAC-EV = Remaining WorkVAC = Variance at CompletionCPI*SPI = Critical Ratio

Cost Management

Forecasting ‐ EACUsing a new estimate

– EAC = AC + ETC

Using remaining budget– EAC = AC + (BAC‐EV)

Using CPI– EAC = AC + ((BAC‐EV)/CPI)

Using both CPI & SPI– EAC = AC + ((BAC‐EV)/(CPI*SPI))


Cost ManagementForecasting ‐ TCPI

The calculated projection of cost performancethat must be achieved on the remaining workto meet a specified management goal.

Using BAC– TCPI = (BAC – EV) / (BAC – AC)

Using EAC– TCPI = (BAC ‐ EV) / (EAC ‐ AC)

VAC = BAC ‐ EAC



Cost ManagementCost Management – Summary

Four (4) processes.

Earned Value concepts & calculations.

Life cycle costing.

Cost baseline.

Estimating vs. budgeting.

Types of estimates & estimating.

Contingency and management reserve.



(303) 663-5402 / (888) 338-7447



Project Quality Management

Quality ManagementAll the activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken.



8. Project QualityManagement

8.1Plan QualityManagement



8.2Perform Quality

Assurance



8.3Control Quality


Quality ManagementKey Terms

Project Quality Management must address the management of the project & product.

Quality ‐ “the degree to which a set of inherent characteristics fulfill requirements.” (American Society for Quality, 2000)

Gold Plating – Giving the customer extra functionality, adds no value to the project; PMI argues against gold plating.

Marginal Analysis – Finding the point where the cost of the incremental improvement in quality equals the value of the improvement.


Quality Management

International Organization for Standardization(ISO)

Total Quality Management (TQM)

Six Sigma

Kaizen

Quality vs. Grade

Precision vs. Accuracy

PDCA


Quality ManagementThought Leaders

W.E. Deming: (PDCA), Quality = results of work efforts /total costs

J.M. Juran: quality planning, control & improvement. People are cause. Fitness for Use

P. Crosby: Quality is Free, 0 Defects Conforming to Rqmts, Doing It Right the First Time" (DIRFT)

K. Ishikawa: Cause‐Effect (Fishbone) Diagram, Design Statistics, introduced quality circles

G. Taguchi: Quality as part of the Design, not Inspection, Taguchi Method.



Quality Management8.1 Plan Quality

Identifying which quality standards arerelevant to the project, and determining howto satisfy them.

Performed in parallel with other planningprocesses.

Quality is planned, designed, and built in,not inspected in.




8.1Plan

Quality

Quality Management8.1 Plan Quality Management

2/9/2016v. 8.0 - © Copyright and all rights

reserved – 2016 Looking GlassDevelopment, LLC.

158

Inputs.1 Project management plan.2 Stakeholder register.3 Risk register.4 Requirements

documentation .5 Enterprise environmental


assets

Tools & Techniques.1 Cost-benefit analysis.2 Cost of Quality.3 Seven basic quality

tools.4 Benchmarking.5 Design of the

experiments.6 Statistical sampling.7 Additional quality

planning tools.8 Meetings

Outputs.1 Quality management

plan.2 Process

improvement plan .3 Quality metrics.4 Quality checklists.5 Project documents

updates

Quality Management

Conformance NonconformancePrevention Planning Scrap Failure

Appraisal Training Rework

Auditing Expediting

Testing Warranty Service

Controlling Recalls


Cost of Quality


Quality Management

7 Basic Quality ToolsAlso know as 7QC Tools.

Used within PDCA cycle to solve qualityproblems.

They are:


• Cause‐and‐effect diagrams • Flowcharts

• Checksheets • Pareto diagrams

• Histograms • Control charts

• Scatter diagrams

Quality ManagementSIPOC

Sometimes called COPIS.

Tool that summarizes the inputs and outputs of one or more processes in table form.

Acronym SIPOC stands for suppliers, inputs, process, outputs, and customers which form the columns of the table.

First used in TQM programs.

Used today in Six Sigma and Lean manufacturing.


Quality ManagementSIPOC


Supplier CustomerProcessInput Output

Requirements & Feedback Loop

Requirements & Feedback Loop

Requirements List•______________•______________•______________•______________•______________

Measurements List•______________•______________•______________•______________•______________

Requirements List•______________•______________•______________•______________•______________

Measurements List•______________•______________•______________•______________•______________


Quality Management In Control – When ‘in control’ a process should not be adjusted.

Specification Limits – Customer expectations or contract requirements.


What is ‘out of control’ ? What is the ‘rule of 7’?

X

UCL

LCL

x

xx

x

xx

x

x

x

x

x

x

3ơ2ơ1ơ

-1ơ-2ơ-3ơ

Quality Management

BenchmarkingUsed for process and product improvement.

Can be done within the organization or withother organizations that have similarprocesses.

Can disrupt a project if improperly done.


Quality Management

Design of Experiments (DOE) Statistical method used to identify which factors may influence specific variables in a process.

Provides statistical framework to systematically change all the important factors in a system, instead of changing one at a time.



Quality ManagementStatistical Sampling Terms

Attribute – A quality or characteristic of a thing.

Variable – A quantity or function that may assumeany given value or set of values.

Producer’s Risk – (Alpha) chance of rejecting agood lot. Type I error.

Consumer’s Risk – (Beta) chance of accepting a badlot. Type II error.

Sampling Plan – Sample size (n) and acceptancecriteria (c).


Quality ManagementStatistical Terms

Mean – Sum of the values divided by the count.Median – the middle value.Mode – the most commonlyoccurring value.

Standard Deviation:


Σ(x – x)2

n - 1

Quality Management

Statistical ExampleYou have a sample with 5 cases with values of 1,2,3,4,5

The mean= Σ(values)/number of cases or 15/5 = 3

Variance and Standard Deviation


(1‐3)2+ (2‐3)2 + (3‐3)2 + (4‐3)2 + (5‐3)2 =

4 + 1 + 0 + 1 + 4 = 10

10 / (5‐1) = 2.5 (variance)

sqrt. of 2.5 = 1.58 (standard deviation)


Quality Management

8.2 Perform Quality AssuranceAnswers the question are we following theright standards. e.g. if we follow thesestandards what will the results be?

Provides an umbrella for ContinuousImprovement . . .

Completed during execution.




8.2Perform Quality

Assurance

Quality Management

8.2 Perform Quality Assurance


Inputs.1 Quality management plan

.2 Process improvement plan

.3 Quality metrics

.4 Quality control measurements

.5 Project documents

Tools & Techniques.1 Quality management &

control tools

.2 Quality audits

.3 Process analysis

Outputs.1 Change requests


.3 Project documents updates


Quality Management

8.3 Control QualityMonitoring specific project results to determinewhether they comply with relevant standards.

Identifying ways to eliminate causes ofunsatisfactory results.

Quality standards include project processes andproduct goals.




8.3Control Quality


Quality Management8.3 Control Quality


Inputs.1 Project management plan.2 Quality metrics.3 Quality checklists.4 Work performance data.5 Approved change requests.6 Deliverables.7 Project documents.8 Organizational process

assets

Tools & Techniques.1 Seven basic quality

tools.2 Statistical sampling.3 Inspection.4 Approved change

requests review

Outputs.1 Quality control

measurements.2 Validated changes.3 Validated

deliverables.4 Work performance





Quality Management

Cause and Effect Diagram(Ishikawa or fishbone Diagram)


Major

Defect

Time Machine Method Material

Energy Measurement Personnel Environment Effect

Potential Causes

Quality ManagementPareto Diagrams

A histogram that contains both bars & a line graph, where individual values are represented in descending order by bars, & the cumulative total is represented by the line.



Quality ManagementRun Charts

Used for trend analysis


Quality Management

Project Quality Management –Summary

Three (3) processes.

Assurance vs. Control.

Principles advocated by Deming, Juran,Ishikawa, Crosby, Taguchi.

Control Chart & rule of seven.

PM & team have primary responsibility forconformance to standards.


Quality Management

Project Quality Management –Summary

Importance of Continuous Improvement

7 basic quality tools

Variable vs. Attribute sampling

Gold Plating – not recommended

Metrics




(303) 663-5402 / (888) 338-7447



Project Human Resource Management

Human Resource Management

The Processes that Organize and Manage the Project Team

Project team (staff) are the people who have assigned roles and responsibilities for completing the project

They should be involved

in planning as soon as

possible.



9. Project HumanResources

Management

9.1Plan Human

Resource Mgmt



Management

9.2Acquire

Project Team

9.3Develop

Project Team

9.4Manage

Project Team


9.1 Plan Human Resource ManagementDetermine project roles, responsibilities and reporting relationships.

Create the Human Resource Plan.




Management

9.1Plan Human

Resource Mgmt



9.1 Plan Human Resource Management


Inputs.1 Project management plan.2 Activity resource

requirements.3 Enterprise environmental


assets

Tools & Techniques.1 Organization charts &

position descriptions.2 Networking.3 Organizational theory.4 Expert judgment.5 Meetings

Outputs.1 Human resource

management plan


Organization Chart – Helps in identifying communication/ information channels



Responsibility Assignment Matrix – helps define roles and responsibilities


Sally Bob Jim Kate Fran Cal …

Feature 1 S R A P PFeature 2 S A P PFeature 3 S R A I PFeature 4 R S A P PFeature 5 S P I A P

DeliverablesPerson

P = Participant A = Accountable R = Review Req’d I = Input Req’d S = Sign-off Req’d

RACI = Responsible, Accountable, Consult, Inform



Common TheoriesMaslow’s Hierarchy of Needs


Self-Actualization

Esteem

Social

Safety

Physiological

Self-fulfillment, growth, learning

Accomplishment, respect, attention, appreciation

Love, affection, approval, friends, association

Security, stability, and freedom from harm

Need for air, water, food, housing & clothing


Common TheoriesMcGregor’s Theory of X and Y – all workers fitinto one of two groups, X and Y.

Theory X – Suggests that people need to bewatched every minute and that they areincapable, avoid responsibility and avoid workwhenever possible.


XXX


McGregor’s Theory of X and YTheory Y – Suggests that people are willing towork without supervision and want toachieve. People can direct their own efforts


YYY


Human Resource ManagementCommon Theories

Hertzberg’s Theory – Deals with hygiene factors and motivating agents.

Poor hygiene factors may destroy motivation but improving them, under most circumstances, will not improve motivation.


Motivator Factors Hygiene Factors

•Achievement•Recognition•Work Itself•Responsibility•Promotion•Growth

•Pay and Benefits•Company Policy and Administration•Relationships with co‐workers•Supervision•Status•Job Security•Working Conditions•Personal life

Human Resource ManagementTheory Z

Theory Z is often referred to as the“Japanese” management style.

It places a large amount of freedom andtrust with workers, & assumes workershave a strong loyalty & interest in theorganization.

Workers become generalists, rather thanspecialists to increase their knowledge ofthe company & its processes through jobrotations & continual training.



Human Resource PlanAcquisition of team (staff).

Criteria for release from project.

Training needs.

Compliance and safety.

Recognition and reward plans.

Impact of staffing on the organization.




9.2 Acquire Project TeamObtaining the human resources needed to complete the project.

The project team may or may not have control over these people.

Halo Effect – Rating someone high or

low based on a single driver.




Management

9.2Acquire

Project Team

9.3Develop

Project Team

9.4Manage

Project Team


9.2 Acquire Project Team


Inputs.1 Human resource

management plan.2 Enterprise environmental


assets

Tools & Techniques.1 Pre-assignment.2 Negotiation.3 Acquisition.4 Virtual teams.5 Multi-criteria

decision analysis

Outputs.1 Project staff

assignments.2 Resource calendars.3 Project management

plan updates


9.3 Develop Project TeamGoal is to improve skills, team interaction & overall team environment.

Teamwork is a critical factor to any successful project.

Team development is a PM’s

responsibility.




Management

9.2Acquire

Project Team

9.3Develop

Project Team

9.4Manage

Project Team



9.3 Develop Project Team



management plan.2 Project staff

assignments.3 Resource calendars

Tools & Techniques.1 Interpersonal skills.2 Training.3 Team-building

activities.4 Ground rules.5 Colocation.6 Recognition and

rewards.7 Personnel

assessment tools

Outputs.1 Team performance

assessments.2 Enterprise

environmental factors updates


9.4 Manage Project TeamTracking team member performance.

Providing feedback.

Resolving issues.

Coordinating changes to

enhance project performance.




Management

9.2Acquire

Project Team

9.3Develop

Project Team

9.4Manage

Project Team


9.4 Manage Project Team



management plan.2 Project staff assignments.3 Team performance

assessments.4 Issue log.5 Work performance reports.6 Organizational process

assets

Tools & Techniques.1 Observation &

conversation.2 Project performance

appraisals.3 Conflict management.4 Interpersonal skills

Outputs.1 Change requests.2 Project management


updates.4 Enterprise

environmental factors updates




Resolution Concern

Mode StylePersonal

Goals Relationships• Withdrawal • Lose ‐ Leave • Low • Low

• Smoothing • Yield – Lose • Low • High

• Compromising • Compromise • Medium • Medium

• Forcing • Win – Lose • High • Low

• Problem Solving

(Confronting)

• Integrative • High • High


Human Resource ManagementLeadership Styles

Autocratic – They solicit little or no informational input from their group and make managerial decisions solely by themselves.

Consultative Autocratic – Intensive information input is solicited, but these leaders keep all substantive decision‐making authority to themselves.

Consensus Manager – They throw open the problem to the group and encourage the entire team to make the relevant decision.

Shareholder Manager – (Poor Management) little or no information input and exchange takes place within the group context, yet the group is provided the authority for the final decision.



Theories of Management StyleThe Leadership Contingency Model (Fielder)

–Holds that there is no best overall style.– Style is contingent on the situation.–Variables affecting the situation.

• Team Leader ↔ Team Member relations• Degree of task structure• Position of power




Theories of Management StyleThe Situational Leadership Theory(Hersey and Blanchard)

– Identifies four (4) leadership styles

• Delegating

• Participating

• Selling

• Telling




Sources of Power

Total Power = Positional + Personal Power

Power Source Power Base Commitment Compliance Resistance Meaning

Position Legitimate Possible Likely Possible Formal authority to direct, a boss

Position Reward Possible Likely Possible The ability to give value like raises

Position Coercive Possible Possible Likely The right to punish, reprimand or fire

Personal Informational Possible Possible Possible Ability to give facts, reasoning or logic

Personal Expert Likely Possible Possible Seen as having superior knowledge or experience

Personal Referent Likely Possible Possible Goodwill, team members admire the person


Human Resources Management –Summary

Four (4) processesSources of powerTypes of conflict & conflict resolutionPurpose & value of team buildingOrganizational theoriesTheories of management style




(303) 663-5402 / (888) 338-7447



Project Communications Management

Communications ManagementEmploying the processes required to ensure timely and appropriate generation, collections, distribution, storage, retrieval, and ultimate disposition of project information.

Provides critical links among people and information.

Everyone involved should understand how communications effect the project as a whole.



10. Project Communications

Management10.1Plan

CommunicationsManagement



Management

10.2Manage

Communications



Management

10.3Control

Communications


Communications TermsResponse

Channel

Nonverbal

Para Lingual

Active Listening

Effective Listening

Feedback




The Communication Model is made up of four parts within a circle: the sender, the message, the receiver, the response.


Sender ReceiverThe MessageTransmit

(Encode)Receive

(Decode)

Transmit(Encode)

Receive(Decode)

Filters& Noise

Response(Feedback)

Communications ManagementAs the number of people involved in communication increases the number of communication channels increases geometrically.


The Formula forOne-to-one Communications

N(N-1)2

2(1)/2 = 1 Channel 10(9)/2 = 45 Channels

Communications ManagementDidactic Communication Example


N(N-1)2

Team of 7

7(7-1)2

7(6)2

422= = = = 21

You Get Behind Schedule & Add 2 Resources To Catch Up

N(N-1)2

Team of 9

9(9-1)2

9(8)2

722= = = = 36

36 21 15 Additional Channels=-


Communications ManagementStyles

Authoritarian – gives expectations and specific guidance.

Promotional – cultivates team spirit.

Facilitating – gives guidance as required, non‐interfering.

Conciliatory – friendly and agreeable, builds compatible team.

Judicial – uses sound judgment.

Ethical – Honest, fair, by the book.

Secretive – not open or outgoing (to the project’s detriment).

Disruptive – Breaks apart unity of group, agitator.

Intimidating – “Tough guy,” can lower morale.

Combative – Eager to fight or be disagreeable.2/9/2016 v. 8.0 - © Copyright and all rights reserved –



10.1 Plan Communications ManagementDetermine the information and communicationsneeds of the stakeholders.

Who, when, what, how.

Reviewed and updated throughout the project.




Management

10.2Plan

Communications


10.1 Plan Communications Management


Inputs.1 Project management plan.2 Stakeholder register.3 Enterprise environmental


assets

Tools & Techniques.1 Communication

requirements analysis.2 Communication

technology.3 Communication models.4 Communication

methods.5 Meetings

Outputs.1 Communications

management plan.2 Project documents

updates


Communications ManagementThe Communications Management

Plan Stakeholder communication requirements Format, content, level of detail Person responsible for communicating ReceiversMethods or technologies Frequency Escalation processUpdating processGlossary



10.2 Manage Communications


Inputs.1 Communications

management plan.2 Work performance

reports.3 Enterprise environmental


assets


technology.2 Communication models.3 Communication

methods.4 Information

management systems.5 Performance reporting

Outputs.1 Project communications.2 Project management



assets updates


10.3 Control Communications



plan.2 Project

communications.3 Issue log.4 Work performance


process assets

Tools & Techniques.1 Information

management systems

.2 Expert judgment

.3 Meeting







Communications ManagementCommunications Management ‐

SummaryThree (3) processes.

Performance reporting – EV, baselines.

Stakeholder analysis results in description ofcommunication needs.

Formula for channels of communication.

Importance/role of project communication.



(303) 663-5402 / (888) 338-7447



Project Risk Management

Risk Management The processes concerned with conducting risk management planning, identification, analysis, responses and monitoring and control on a project.

Updated throughout the project.

Increase the probability and impact of positive risks & decrease the probability and impact of negative risks.



11. Project Risk Management

11.1Plan Risk

Management

11.3Perform

QualitativeRisk Analysis

11.2Identify Risks

11.4Perform

QuantitativeRisk Analysis

11.5Plan Risk

Responses


11. Project RiskManagement

11.6Control Risks


Risk Management

Risk – an uncertain event or condition that, ifrealized, has a positive or negative impact onat least one project objective (such as time,cost, scope or quality).

Risks can have one or more causes and one ormore impacts.


Risk Management

Types of Risks Known Risks ‐ Can be analyzed, possible toplan. Contingency reserve or other plans.

Unknown Risks ‐ Cannot be managedproactively. General contingency ormanagement reserve.


Risk Management

Key TermsRisk Tolerance

Risk Averse

Risk FactorsProbability & impact

The range of possible outcomes

Expected timing in the project life‐cycle



Risk Management11.1 Plan Risk Management

The process of deciding how to approach & conduct risk management activities for a project.

Ensure that the level, type & visibility of risk management are commensurate with both the risk & importance of the project.

Provide sufficient resources & time for risk management activities.

Establish an agreed‐upon basis for evaluating risks.




11.1Plan Risk

Management

11.3Perform


11.2Identify Risks

11.4Perform


11.5Plan Risk

Responses

Risk Management

11.1 Plan Risk Management



plan.2 Project charter.3 Stakeholder register.4 Enterprise environmental


assets

Tools & Techniques.1 Analytical techniques.2 Expert judgment.3 Meetings

Outputs.1 Risk management plan

Risk ManagementIncluded in the Risk Management PlanMethodologyRoles and ResponsibilitiesBudgetingTimingRisk Categories (RBS) . . .Revised stakeholder tolerancesReporting formatsTrackingDefinitions of probability and impactMatrices . . .



Risk ManagementProject

Technical

Requirements

technology

Complexity & Interfaces

Performance & Reliability

Quality

External

Subcontractors & Suppliers

Regulatory

Market

Customer

Weather

Organizational

Project Dependencies

Resources

Funding

Prioritization

Project Management

Estimating

Planning

Controlling

Communication

2/9/2016 223

Sample RBS

v. 8.0 - © Copyright and all rights reserved –2016 Looking Glass Development, LLC.

Risk Management

Scales for Impact and ProbabilityLinear

– .1, .3, .5, .7,.9

Non‐Linear– .05, .10, .20, .40, .80

Relative– Very low, low, medium,

high, very high


Risk Management

Project Objectives Very Low / .05 Low / .10 Medium / .20 High / .40 Very High / .80

Cost Insignificant costincrease

<10% cost increase

10%‐20% cost increase 20%‐40% cost increase

>40% costincrease

Time Insignificant timeincrease

<5% Time increase

5%‐10% time increase 10%‐20% time increase

>20% timeincrease

Scope Scope decrease barely noticeable

Minor areas of scope affected

Major areas of scope affected

Scope reduction unacceptable to sponsor

Product of project is effectively unusable

Quality Quality degradation barely noticeable

Only very demanding applications are affected

Quality reduction requires sponsor’s approval

Quality reduction unacceptable to sponsor

Product of project is effectively unusable


Sample Impact Matrix


Risk Management

11.2 Identify RisksDetermine which risks might affect the project and documents their characteristics.

Project Manager

Project Team

Stakeholders

Subject matter experts

People outside the project




11.1Plan Risk

Management

11.3Perform


11.2Identify Risks

11.4Perform


11.5Plan Risk

Responses

Risk Management11.2 Identify Risks


Inputs.1 Risk management plan.2 Cost management plan.3 Schedule management

plan.4 Quality management plan.5 Human resource

management plan.6 Scope baseline.7 Activity cost estimates.8 Activity duration estimates.9 Stakeholder register.10 Project documents.11 Procurement documents.12 Enterprise environmental


assets

Tools & Techniques.1 Documentation reviews.2 Information gathering

techniques.3 Checklist analysis.4 Assumption analysis.5 Diagramming techniques.6 SWOT analysis.7 Expert judgment

Outputs.1 Risk register

Risk ManagementTools & Techniques

Information gathering‐ Brainstorming‐ Delphi Technique – reduce bias‐ Interviews

Assumption analysis SWOT Checklist analysis – be careful Diagramming

‐ Cause and effect‐ Flow charts‐ Influence diagrams


Problem


Risk Management

The Risk RegisterList of identified risks

And possibly…

– List of potential responses

– Root causes

– Updated risk categories


Risk Management

11.3 Perform Qualitative Risk AnalysisPrioritizing the identified risks for furtheraction (including further analysis or responseplanning).

Uses the probability and impact scoringdefined in Plan Risk Management.




11.1Plan Risk

Management

11.3Perform


11.2Identify Risks

11.4Perform


11.5Plan Risk

Responses

Risk Management11.3 Perform Qualitative Risk Analysis


Inputs.1 Risk management plan.2 Scope baseline.3 Risk register.4 Enterprise environmental


assets

Tools & Techniques.1 Risk probability and

impact assessment.2 Probability and

impact matrix.3 Risk data quality

assessment.4 Risk categorization.5 Risk urgency

assessment.6 Expert judgment

Outputs.1 Project document

updates


Risk Management

Probability Risk Score = P x I0.05 0.10 0.20 0.40 0.80

0.9 0.045 0.09 0.18 0.36 0.720.7 0.035 0.07 0.14 0.28 0.560.5 0.025 0.05 0.10 0.20 0.400.3 0.015 0.03 0.06 0.12 0.240.1 0.005 0.01 0.02 .04 0.08


Probability & Impact Matrix

Risk Management11.4 Perform Quantitative Risk

AnalysisAnalyzes the effect of those risk events that have been prioritized as potentially and substantially impacting the project’s competing demands, and assigns a numerical rating to those risks

Also presents a quantitative approach

to making decisions in the presence of

uncertainty




11.1Plan Risk

Management

11.3Perform


11.2Identify Risks

11.4Perform


11.5Plan Risk

Responses

Risk Management

11.4 Quantitative Risk Analysis


Inputs.1 Risk management plan.2 Cost management plan.4 Schedule management

plan.5 Enterprise environmental


assets

Tools & Techniques.1 Data gathering &

representation techniques.2 Quantitative risk analysis &

modeling techniques.3 Expert judgment

Outputs.1 Project documents

updates


Risk ManagementData Modeling ‐ Simulation

Monte Carlo Simulations‐ Cost ‐ Use WBS or similar breakdown

‐ Schedule ‐ Use PDM

Data Modeling ‐ Sensitivity Analysis‐ Determine the most potential impact.

‐ Impact of single element of uncertainty when

all other elements are held at baseline.



Risk ManagementExpected Monetary Value (EMV)

Calculates the average outcome when future events are uncertain

Cost Probability ProductOptimistic Outcome $150,000 .20 $ 30,000Likely Outcome $225,000 .50 $112,500Pessimistic Outcome $300,000 .30 $ 90,000

$ 232,500

Risk Management

Decision Tree Analysis


ChoiceEvent

ChanceEvent

ChanceEvent

60%

40%

20%

80%

Outcome EMV$250K $150K

-$100K -$40K

-$45K -$9K

$20K $16K

Conservative EMV = $7,000

Aggressive EMV = $110,000



Risk Management

OTS or Develop

OTS

Develop

Well received

Rejected

Well received

Rejected

$ - 250K

$ - 350K

65%$550 K

35%$ -100K

85%$500 K

15%-60K

$ 300K

$ - 350K

$ 150K

$ - 410K

$ 195K

$ -123K

$ 128K

$ -61.5K

OTS$ 72.5K

Develop$ 66K

A.Cost ofChoice

B.Probability

&Outcome

C.Outcome

MinusCost

D.C * Probability

E.Final Outcomes

Risk Management

11.5 Plan Risk ResponsesDeveloping options and determining actions to enhance opportunities and reduce threats to the project’s objectives.

Addresses the risks by their priority,

inserting resources and activities

into the budget, schedule, and project

management plan, as needed.




11.1Plan Risk

Management

11.3Perform


11.2Identify Risks

11.4Perform


11.5Plan Risk

Responses

Risk Management

11.5 Plan Risk Responses


Inputs.1 Risk management plan.2 Risk register

Tools & Techniques.1 Strategies for negative

risk or threats.2 Strategies of positive

risks or opportunities.3 Contingent response

strategy.4 Expert judgment

Outputs.1 Project management


updates


Risk Management

Response Strategies

Threats OpportunitiesAvoid Exploit

Transfer ShareMitigate Enhance

Accept



Risk Management

Impacts to the project

Owner

Analysis data

Selected strategy

Action items

Fallback plans

Symptoms/warningsigns (Triggers).

Budget and scheduleupdates to be made.

Contingency requests,requirements, plans.

Risk Register Updates

Risk Management11.6 Control Risks

Identifying, analyzing, and planning fornewly arising risks.Keeping track of identified risks and thoseon the watchlist.Monitoring trigger conditions forcontingency plans.Reviewing the execution of risk responseswhile evaluating their effectiveness.Reanalyzing existing risks.Monitoring residual risks.



11. Project RiskManagement

11.6Control Risks


Risk Management11.6 Control Risks



plan.2 Risk register.3 Work performance

data.4 Work performance

reports

Tools & Techniques.1 Risk reassessment.2 Risk audits.3 Variance & trend analysis.4 Technical performance

measurement.5 Reserve analysis.6 Meetings





assets updates

Risk Management

Results of Risk Monitoring & Control

Workarounds

Contingency plans

Residual risks – expected to remain

Secondary risks – result of responses

Contractual updates


Risk Management

Project Risk Management – SummarySix (6) processes.Activities of Monitor & Control Risks.

Seven types of risk responses.Risk register.Definition of risk, positive and negative.Solving & interpreting decision trees & EMV.



Risk ManagementProject Risk Management – SummaryDelphi technique.SWOT analysis.Risk data quality assessment.Sensitivity analysis.Qualitative vs. Quantitative analysis.Interpret quantitative probability andoutcome data chart.



(303) 663-5402 / (888) 338-7447



Project Procurement Management


Processes to purchase or acquire theproducts, services, or results needed fromoutside the project team to perform the work.

Unless otherwise noted,

consider yourself the BUYER.


Planning Process Group12. Project

ProcurementManagement

12.1Plan

ProcurementsManagement


12. Project ProcurementManagement

12.2Conduct

Procurements

Monitoring and Controlling Process Group12. Project


12.3Control

Procurements



12.4Close

Procurements


Procurement Management12.1 Plan Procurement ManagementIdentify which project needs can best be metby purchasing or acquiring products, servicesor results outside the project organization.

Consider potential sellers, permits, licenses.

Project schedule greatly influences, and isinfluenced by, purchase and acquisitiondecisions.

Review risks & types of contracts.


Planning Process Group12. Project


12.1Plan

ProcurementsManagement

Procurement Management12.1 Plan Procurement Management


Inputs.1 Project management plan

.2 Requirements documentations

.3 Risk register

.4 Activity resource requirements

.5 Project schedule

.6 Activity cost estimates

.7 Stakeholder register



Tools & Techniques.1 Make‐or‐buy analysis

.2 Expert judgment

.3 Market research

.4 Meetings

Outputs.1 Procurement management plan

.2 Procurement statements of work

.3 Procurement documents

.4 Source selection criteria

.5 Make‐or‐buy decisions

.6 Change request

.7 Project documents updates

Procurement ManagementA CONTRACT is an agreement between two or more parties for the doing or not doing of something specified enforceable by law which may be written or verbal.

Contract Type – The type of contract used is dependent on the degree of uncertainty facing the project.


Seller’s Risk HighLow

CPPCCost Plus

PercentageOf Costs

CPFFCost PlusFixed Fee

CPIFCost PlusIncentive

Fee

FPPIFixed Price

Plus Incentive

FFPFirm-Fixed

Price orLump Sum

High Buyer’s RiskLowCost-Reimbursable / T & M Fixed Price

Contract Types


Procurement ManagementProcurement Management Plan

Describes managing procurement from developing procurement documentation through contract closure.

Types of contracts.

Roles and responsibilities, authority.

Coordination.

Constraints and assumptions.

Timeframes.

Pre‐qualified sellers.

Metrics.2/9/2016 v. 8.0 - © Copyright and all rights reserved –



12.2 Conduct ProcurementsProcess of obtaining seller responses,selecting a seller, & awarding a contract.

Consider:– Project risks and contractual agreements.– Activities resource requirements.– Activity cost estimates.– Cost and schedule baselines.




12.2Conduct

Procurements

Procurement Management12.2 Conduct Procurements




.3 Source selection criteria

.4 Seller proposals

.5 Project documents

.6 Make‐or‐buy decisions

.7 Procurement statement of work


Tools & Techniques.1 Bidder conferences

.2 Proposal evaluation techniques

.3 Independent estimates

.4 Expert judgments

.5 Advertising

.6 Analytical techniques

.7 Procurement negotiations

Outputs.1 Select sellers

.2 Agreements

.3 Resource calendars

.4 Change requests





Understanding of need.

Life-cycle cost.

Technical capability.

Management approach.

Production capacity &interest.


Source Selection Criteria Financial capacity.

Technical approach.

Business size & type.

References.

Intellectual & otherproperty rights.

Procurement Management12.3 Control Procurements

Manage procurement relationships.

Monitor contract performance.

Make changes & corrections as needed.

Both the buyer & seller administer contract.

Both parties must meet obligations.

Manage interfaces among

providers on large projects.


Monitoring and Controlling Process Group12. Project


12.3Control

Procurements


12.3 Control Procurements




.3 Agreements

.4 Approved change requests

.5 Work performance reports

.6 Work performance data

Tools & Techniques.1 Contract change control system

.2 Procurement performance reviews

.3 Inspections & audits

.4 Performance reporting

.5 Payment systems

.6 Claims administration

.7 Records management system

Outputs.1 Work performance information

.2 Change requests





Procurement Management12.4 Close Procurements

Process supports the Close Project or Phase Process.

Involves verification that all work & deliverable were acceptable.

Administrative activities such as finalizing open claims and updating records.

Could lead to litigation.




12.4Close

Procurements


12.4 Close Procurements




Tools & Techniques.1 Procurement audits

.2 Procurement negotiations

.3 Records management system

Outputs.1 Closed procurements



Negotiate Settlements Special case of contract closure.

Mutual agreement or default.

Terms are in the contract.

Buyer may have to compensate seller.




Project Procurement Management – Summary

Four (4) Processes.

Know components in each process.

You are THE BUYER unless otherwise stated.

Recognize scenarios to use each type of contract.

Buyer/Seller risk for types of contracts.

Use and importance of evaluation criteria.



(303) 663-5402 / (888) 338-7447



Project Stakeholder Management

Stakeholder ManagementProcess of identifying the people, groups, or organizations that could impact or be impacted by the project and then managing, influencing, and impacting them for the benefit of the project and the stakeholder.



13. Project StakeholderManagement

13.2Plan

StakeholderManagement


13. Project Stakeholder Management

13.3Manage

StakeholderEngagement



13.4Control

StakeholderEngagement



13.1Identify

Stakeholders


Stakeholder Management13.1 Identify Stakeholders

Process of determining who your stakeholdersare & in what are they interested.

This is an on‐going process throughout theproject.




13.1Identify

Stakeholders

Stakeholder Management13.1 Identify Stakeholders


Inputs.1 Project charter.2 Procurement documents.3 Enterprise environmental


assets

Tools & Techniques.1 Stakeholder analysis.2 Expert judgment.3 Meetings

Outputs.1 Stakeholder register

Stakeholder ManagementClassification Models for Stakeholder

AnalysisPower / Interest Grid.

Power / Influence Grid.

Influence / Impact Grid.

Salience Model – based on stakeholders’ power,urgency, legitimacy.



Stakeholder ManagementStakeholder Prioritization

Power or Influence in the Organization

Level o

f Su

pport

Manage

Closely

Monitor(Minimum Effort)

Keep

Satisfied

Keep

Informed


Stakeholder Management13.2 Plan Stakeholder Management

Process of developing a plan to manage theinterests and people with interests in theproject.

Provides a clear, actionable plan to manageinterests on the project.




10.2Plan

StakeholderManagement

Stakeholder Management13.2 Plan Stakeholder Management


Inputs.1 Project management plan.2 Stakeholder register.3 Enterprise environmental


assets

Tools & Techniques.1 Expert judgment.2 Meetings.3 Analytical techniques

Outputs.1 Stakeholder management

plan.2 Project document updates


Stakeholder ManagementStakeholder Engagement Classification

Unaware – Does not know about the project.

Resistant – Aware of the project, but don’t likethe change it represents.

Neutral – Are of the project, but don’t care.

Supportive – Aware of the project & supportingit. This is the target level.

Leading – Aware of the project & actively workingto ensure success.


Stakeholder Management13.3 Manage Stakeholder Engagement


Inputs.1 Stakeholder management

plan.2 Communications

management plan.3 Change log.4 Organizational process

assets


methods.2 Interpersonal skills.3 Management skills

Outputs.1 Issue log.2 Change requests.3 Project management plan

updates.4 Project document updates.5 Organizational process

assets updates

Stakeholder Management13.4 Control Stakeholder Engagement


Inputs.1 Project management plan.2 Issue log.3 Work performance data.4 Project documents

Tools & Techniques.1 Information

management systems

.2 Expert judgment

.3 Meetings





assets updates



Project Stakeholder Management –Summary

Four (4) Processes.

Know components in each process.

Focus on understanding why stakeholdersare important.

Focus on the importance of transparency& understanding each stakeholders’interest.



(303) 663-5402 / (888) 338-7447




Professional ResponsibilityDuty to the Profession

Compliance with all organizational rules and policies.

Comply with code of conduct.

Advancement of the profession.

Manage conflict of interest situations & other prohibited professional conduct.

Balance Stakeholder interests.

Understand the culture of foreign project locations and follow their customs and rules.



Professional ResponsibilityScope & Estimates

Involve the stakeholders in the development ofscope.

Don’t perform project tasks until the scope isverified.

Make scope changes through the scope managementprocess.

Don’t add any work without the sponsor’s approval.

Scope verification is done at the end of each phase.


Professional ResponsibilityScope & Estimates

All deliverables must be quantifiable.

Develop tasks and assign resources all tasks tocomplete the scope.

Review all deliverables and don’t allow incomplete or incorrect deliverables to be released.

Prepare and publish accurate estimates ‐ If forced to cut budget, don’t make across the board reductions. Modify scope and quality to fit reduced budget.



AuthorityWork should not begin without a charter.

Understand the limits of your authority as theproject manager.

Take action within your limit of authority.

Escalate to management things that are outsidethe limits of your authority.




Above All Else…Evaluate the event.

Analyze the impact to cost, schedule, scope,quality, and customer satisfaction.

Develop alternatives with the team.

Go to management only after the above stepshave been completed.



Above All Else…Negotiations can involve items other thanmoney.

Never shortcut the defined processes.

Poorly planned projects are most likely to becancelled.

Milestone reports are the appropriate level ofdetail for management.


PMP 2016 Exam Prep

Course ID: PMTONDEMAND35

Contact Hours / PDUs 35info rmation@ lookingglassdev.com
