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Complete Online PMP Study Training Material for PMP Exam Provided Free for PMI PMP Certification Preparation

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Page 1: Complete Online PMP Study Training Material for PMP Exam Provided Free for PMI PMP Certification Preparation

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PMP® Certification Training!

Page 2: Complete Online PMP Study Training Material for PMP Exam Provided Free for PMI PMP Certification Preparation

www.GLOBALSKILLUP.com

2

GET TO KNOW ME

Page 3: Complete Online PMP Study Training Material for PMP Exam Provided Free for PMI PMP Certification Preparation

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Intended for

Professionals to learn Project

Management Subject for

daily use

Professionals to take PMP®

Certification exam by Project

Management Institute

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Course Content C

ha

pte

rs 1. Introduction to PMI®, PMP®, PMBOK®, Exam Pattern & Format

2. Understand Project Management Framework

3. Project Management Process Groups

4. Knowledge Area: Integration Management

5. Knowledge Area: Scope Management

6. Knowledge Area: Time Management

7. Knowledge Area: Cost Management

8. Knowledge Area: Quality Management

9. Knowledge Area: Human Resource Management

10. Knowledge Area: Communications Management

11. Knowledge Area: Risk Management

12. Knowledge Area: Procurement Management

13. Knowledge Area: Stakeholder Management

14. Professional & Social Responsibility

15. PMP® Exam Preparation

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Introduction

Chapter 1

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Chapter 1

Objectives

Project Management Institute

PMI Membership

Other PM Certifications & Bodies

About PMP® Credential

Project Management Body of Knowledge

Course Inline with 2016 January Exam Change

PMP Eligibility Criteria

PMP Exam Cost

PMP Application Process

Exam Pattern & Format

This chapter entails one to understand the basic terms which are often heard when spoken about PMP®.

Showcases the participants to understand the long standing history of PMP®, which institute provides it, and based on which knowledge the exam itself is formulated.

One will also learn the eligibility criteria to meet for taking the exam, how to file for the PMP® exam, cost involved for exam, pattern of questions itself and so on.

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Project Management Institute

PMI® (Project Management Institute) is the most prominent body on

the subject of Project Management in existence today.

History: founded in 1969 as a Not-for-Profit.

Reputation: Has an army of certified professionals working at junior

management level to board level across industries and government

bodies who live by the highest standards set by PMI®.

PMI® Certifications in Existence

CAPM® (Certified Associate in Project Management)

PMI-PBA (Professional in Business Analysis)

PMP® (Project Management Professional)

PMI-ACP® (Agile Certified Practitioner)

PgMP® (Program Management Professional)

PMI-RMP® (Risk Management Professional)

PfMPSM (Portfolio Management Professional)

PMI-SP® (Scheduling Management Professional)

OPM3® (Organizational Project Management Maturity Model) Certification

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PMI Membership

Membership in PMI provides PMP Aspirants with:

Complimentary digital copies of all PMI global standards including A Guide to

Project Management Body of Knowledge (PMBOK® Guide)

Networking, mentoring and volunteering opportunities via PMI chapters and

Communities of Practice

24/7 exclusive access to project management knowledge and information on

PMI.org, ProjectManagment.com, and ProjectsAtWork.com

Access to unabridged project management and business books via eReads

and Reference

Money-saving discounts on certification exams and foundational online

courses

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Other PM Certifications & Bodies

Besides PMI, there are several other Bodies & Certifications which are offered in Project Management. Let us know what those are:

UK government agency Office of Government Commerce (OGC), especially for the UK government projects

PRINCE2 (Projects in Controlled Environments, version 2) is a methodology

PRINCE2 Foundation – Basic Level(75Q, 50% Pass Percentage)

PRINCE2 Practitioner – Advanced Level(80Q, 55% Pass Percentage)

PRINCE2 Professional – Advanced with Group Exercises(Assessment Based)

The Association for Project Management(APM) is registered UK organization caters

to Project management & Program Management profession.

Five Dimensions of Professionalism:

Breadth – APM Body of Knowledge; Depth – APM Competence Framework; Achievement – APM

Qualifications; Commitment – Continuing Professional Development; Accountability – APM Code

of Professional Conduct

Introductory Certificate

APMP Qualification

Practitioner Qualification

Certificated Project Manager – Discontinued.

Risk Certificate

The International Project Management Association (IPMA) is a Swiss registered non-profit organization for promotion of Project Management as a Profession worldwide.

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About PMP® Credential

PMP® (Project Management Professional) is the most

prominent certification on the subject of Project

Management. It is the most sought after certification for

both budding professionals to prove their mettle and

Industry veterans to set bar high for rightful job candidates.

History: PMP® certification has been in existence from 1984

and has gone under multiple revisions and the latest exam

is based on 5th PMBoK® edition.

Reputation: PMP® certification proves that you have widest

and highest knowledge in areas of project management.

Often Observed: PMP® with the good industry exposure

and project management experience garner the best paid

jobs in the project management profession with great

respect. Why? Ask us.

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Project Management Body of Knowledge

PMBoK®

PMBOK:

Project Management Body of Knowledge

Present is 5th Edition, released in 2012 Q4.

PMBOK 6th Edition due in 2017 Q1 End*

History:

It has been a trend to observe 3rd to 4th , 4th

to 5th has been released almost 3years to

4years in duration

Reputation:

PMBoK® has been considered the most

comprehensive guide to acquire knowledge

in the area of project management. This has

been referred by industry veterans to

budding professionals across globe.

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Course Inline with

2016 January Exam Change

So what is the Exam change?

Exam is based on scenarios created from various tasks performed by Project Manager. These domain tasks were defined way back, few years ago.

Questions are all primarily based on these scenarios coming out of these tasks of Project Manager.

PMI has upgraded the domain tasks to add a few more based on today’s project managers new role based on existing new technology he uses.

This means, more new domain tasks in addition to old domain tasks. That also boils down to more variety of new Questions for Exam takers from 2016 Jan onwards.

To understand these tasks, refer: https://armadilloconsultants.com/pmp-exam-change-2016/

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PMP Eligibility Criteria

Four year Bachelors degree or above High School Diploma or equivalent

At least 3 years (36 months) of project management

experience with 4500 Hours of leading & directing

projects

At least 5 years of project management experience

with 7500 Hours of leading & directing projects

35 Contact Hours of Formal Project Management Education.

Collect this Certificate from Armadillo Consultants upon training completion.

PMP Exam Cost PMI® Membership Non PMI Membership

Membership Fee USD 139 – Annual

USD 12 – Local Chapter -

Membership Benefits Multiple Benefits

including PMBoK® guide. -

PMI Exam Fee USD 405 USD 555

Total Payment 139+12+405 = 556 555

PMI Re-Exam Fee USD 275 USD 375

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PMP Application Process

1. Fulfill PMP® eligibility criteria.

2. Have Project dates & areas handy before starting the application process on http://pmi.org

3. Prepare & submit the application online or manually.

4. PMI® scrutinizes & sends an approval. In case of PMI® audit, show facts and/or evidences.

5. Once approved, schedule exam with in 1 year at Test Center – Prometric/Prodevia

6. At the end of exam, results are made available immediately. Collect the result sheet.

7. Results are broken into 5 Process group areas and performance rated in each area.

8. Prometric provides the result summary on a printed copy.

9. PMP® certificate hardcopy will be couriered to specified address provided in application.

10. Maintain PMP® certification every 3 years with 60 PDU’s.

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What does PMI Ask For on Project Experience in Form?

Exhibit 1 of 2

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What does PMI Ask For PMP Experience to fill in Form?

Exhibit 2 of 2

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PMP Education from Training Provider

PROJECT MANAGEMENT KNOWLEDGE PROFICIENT

ARMADILLO CONSULTANTS

35 Fill date of your Enrolment with us. Fill end date of your training.

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Exam Pattern & Format By default CBT(Computer Based Test) is available at Prometric test centers for Exam takers.

For those who stay farther than 200 KM’s away from CBT test centers could request for PBT(Paper Based Test) format of examination.

Exam Duration is 4 Hours for total of 200 Objective Type Questions with 4 options and only 1 correct answer and No Negative Marking

It is not possible to differentiate scoring & non-scoring Questions.

Expect 90% Randomized Scenario Based Questions & 10% Straightforward Questions.

Results are Immediate to showcase overall Pass/Fail and 5 Process Group grades:

Proficient

Moderately Proficient

Below Proficient grades

PMI® Process Groups Initiating Planning Executing

Monitoring

&

Controlling

Closing

Randomly

placed

Non-

Scoring

Questions

Total

Percentage of Questions 13% 24% 30% 25% 8%

Number of Scoring Questions 23 42 52 44 14 175

Number of Non-Scoring Questions 25 25

Number of Total Questions 23 42 52 44 14 25 200

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Chapter 1 - Debrief

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From what we have understood so far is:

Project Management Institute

PMI Membership

Other PM Certifications & Bodies

About PMP® Credential

Project Management Body of Knowledge

Course Inline with 2016 January Exam Change

PMP Eligibility Criteria

PMP Exam Cost

PMP Application Process

Exam Pattern & Format

Chapter 1

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Understand

Project Management

Framework

Chapter 2

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Chapter 2

Objectives

Fundamentals of Project Management

Framework Project & Project Management

Operation

Program & Program Management

Portfolio & Portfolio Management

PMO & its connect across organization

Need for Projects

Role of a Project Manager

Qualities of a Project Manager

Product Life Cycle & Project Life Cycle

Enterprise Environmental Factors

Stakeholder & Relation to Project

Management by Objectives (MBO)

Project Manager’s Radar Wheel

Organizational Structure, Its Influence on

Projects

Organizational Process Assets

Project Triple Constraints

This chapter entails one to understand the fundamentals of Project Management framework.

One will understand the need for projects – why they exist. Role of a Project Manager & qualities one need to exhibit in Project Manager’s role inside a Product Life Cycle & Project Life Cycle.

Factors such as Enterprise Environmental Factors, Stakeholders, MBO, Organizational Structure, Organizational Process assets, Project Triple Constraints which influence the overall Project existence and the way it works towards Project end outcome.

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Quick Poll:

Which of these terms have you heard earlier in life?

Time

Opportunity / Scope

Price / Cost

Quality

Communication

Buy & Sell / Procurement

Work Force / Labor / Resources / Human Resources

Danger / Risk

Customers / Clients / Stakeholders

Putting it all together / Integration

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Fundamentals of Project Management Framework

What is a Project and Project management?

Project is a temporary endeavor with a beginning and end, undertaken to create a unique product, service or

result.

Example: Setup a Manufacturing line to produce goods.

Project management is a science and art to apply the knowledge, skills, tools & techniques to activities to meet project requirements.

What is an Operation?

Operation is an ongoing activity, to produce a similar ―attribute & characteristic‖ products or a repetitive service.

Example: Manufacturing line of a product.

What is a Program and Program management?

Program is a collection of projects managed /coordinated to acheive

strategic objectives of program and gain benefits & control which would not be possible with management of them individually.

Program management refers to the centralized coordinated effort to manage the program to meet the

strategic objective.

What is a Portfolio and Portfolio management?

Portfolio refers to collection of programs and projects grouped to meet a common strategic objective.

Portfolio management is the management of portfolios to deliver the strategic objectives in line & prioritized with the Organization’s objectives.

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Differences

Projects

Unique Products

One time endeavour

Start Date & End Date

Operations

Similar Products

On-going endeavour

No defined timeframe

Similarities Performed by people & resources

Constrained by limited availability of resources Planned, executed, and controlled

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Fundamentals of Project Management Framework

What is a PMO?

Project Management Office is a central management body to

coordinate for all the projects defined under its umbrella. Role and authority of a PMO in each organization may vary considerably.

How are Projects, Program, Portfolio & PMO connected?

Across the large organizations, you will find often these interconnections of the

entire functioning of the management as depicted here in the organizational chart.

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Project Management Roles

Project Manager

Project Coordinator

Project Expediter

Project Sponsor

Senior Management

Stakeholder

Functional Manager

Project Management Office

Program Manager

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Need for Projects

Role of a Project Manager

Qualities of a Project Manager

Why do we need Projects?

Projects are a means to acheive the discrete benefits, contribute to

the benefits of program, to the objectives of portfolio, and to the strategic plan of organization.

What is the role of a Project Manager?

Project Manager is a person assigned and authorized by

management to undertake a definitive, time bound, unique result oriented project with the organizational support to acheive its objectives.

Project Manager’s prime role is to integrate project aspects and then

to communicate across different stakeholders while execution of proactive steps to ensure the next steps are followed as planned originally.

What qualities should one have in that role?

Project Manager should be Knowledgeable, Performance

Oriented and have Personal traits. Knowledge about the project management, application of right set of tools and techniques.

Knowledgeable across the board of the end to end of the project management subject. Wider the

knowledge, more chances of Project manager to apply them.

Performance Oriented to apply the various tools & techniques to deliver or accomplish the results.

Personal traits like how you behave, your attitude, leadership

and general management abilities all applied to get the best outcome of the project.

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Product Life Cycle & Project Life Cycle

Different phases of the project organized in a manner to have better control of project itself is usually referred to as Project life cycle. Normally each project tends to have an unique lifecycle inline to the organization’s nature of business & approach to business.

Idea Ramp up Growth Prolonged Maturity

Death /Decline

P P

P P P P

P P P P P P

Project Initiating

Planning

Executing

Closure

Monitoring & Controlling

Product life cycle is the arrangement of different phases of product delivery itself and may contain multiple projects to contribute to the delivery.

Prolonged Maturity is desired as this would be the peak of the monetization period on the product.

Project life cycle across various natures of business can be called in different terms, however, all projects will predominantly follow the basic 5 stages as shown. Terms such as, Software Development Life Cycle, Financial Management Life Cycle, ICT Life Cycle,

Investment Life Cycle and so on.

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Enterprise Environmental Factors

Stakeholder & Relation to Project

Management by Objectives (MBO) What are Enterprise Environmental factors and how

do they relate to a project?

Enterprise environmental factors are

influences which alter the course of a

project or its existence.

For example, in pharmaceutical industry,

the Regulatory clauses by the Regulator.

The new clauses published by regulator

will cause the project to change its

course or direction towards its end

objectives.

Who are Stakeholders and their relation to Project?

Stakeholders as the definition itself

suggests, Stake + Holders. Anyone who

has stake in the project would be a

stakeholder. They can be internal or

external to the organization. Because of

the nature of holding stake in the

project, stakeholders exert enormous

influence over the course of the project

direction.

And success of any project depends on

effective stakeholder management, PMI

has introduced a separate chapter in

the 5th edition of PMBOK to address the

concept of Stakeholder Management.

What is MBO (Management by Objectives)?

SMART Objectives with Corrective Actions which

are defined & Supported extensively by

Management.

SMART is defined as:

Specific – Should be Specific as possible.

Measureable – Should be Quantifiable.

Attainable – Should be challenging yet

achievable.

Realistic – Should be practical and doable.

Timely – Should be Time Bound.

Why does organization adopt the MBO philosophy?

Stakeholders as the definition itself

suggests, Organizations with clearly

defined, transparent objectives installed

across the organizations tend to perform

better.

Increases dramatically the organization

end focus to work upon and builds

cohesiveness across the organization to

achieve the desired outcome.

This means a profitable and flourishing

business.

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Project Manager’s Radar Wheel

0

2

4

6

8

10

12

Scope

Schedule

Cost

Quality

HR

Communication

Risk

Procurement

Integration

Stakeholder

PM time expected in a Project Sample - PM time realistically spent

Project Manager role demands a lot and it

is truely a multi-dimensional role as

depcited in the PM’s Radar Wheel.

One has to be aware, PM has to manage

his time effectively and spend it wisely

without which the project is going to be in

a struggling mode.

For illustrations purpose:

A sample project has been outlined

where the project manager is

supposed to meet 10 points on every

front of the project dimension.

Although when you chart out the

realistic project manager pull and push,

it would never be a 10 point perfect

scale.

Radar wheel depicts the realistic points

where the project manager would

have spent based on the needs of the

project.

Project Manager’s time is critical for success of project!

PM spends ~90% (majority) of time in communication.

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Organizational Structure, Its Influence on Projects

Organizational Process Assets

How does an Organizational Structure influence on

Projects and Project Management?

Organizational structure creates the

environment on how the project team will

function, communicate and ofcourse

escalate or appraise a project situation.

And this is a very important factor which can

alter the course of the project and how

project management is perceived or viewed

in the organization. Let us understand this

visually through the chart.

In all cases of discussion, even for exam, unless

explicitly mentioned, always go with the

assumption of Matrix organization.

What are the organization’s process assets which

influence Projects?

The list of such process assets could be

enormous.

Here are some of the most frequenlty used

assets.

Policies & Controls

Standards & Guidelines

Tools & Templates

Checklists & Criteria's

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Projectized Organization

Org2:

Dedicated Project Manager has complete Team working for Project

Manager direct reporting lines

Org1 Client

Project Manager

Design Manager

Design Team Design Team

Development Manager

Development Team

Development Team

Quality Manager

Quality Team

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Functional Organization

Org2: Functional Managers act like Project Manager. No Project

Manager.

Org1 Client

Design Manager

Design Team Design Team

Development Manager

Development Team

Development Team

Quality Manager

Quality Team

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Balanced Matrix Organization

Org2: Project Manager & Functional Managers with equal Power

Org1 Client

Project Manager

Design Manager

Design Team Design Team

Development Manager

Development Team

Development Team

Quality Manager

Quality Team

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Weak Balanced Matrix

Organization

Org2: Project Manager with Weak Power. Acts as Project Coordinator.

Org1 Client

Design Manager

Design Team Design Team

Development Manager

Development Team

Development Team

Quality Manager

Quality Team

Project Coordinator from PMO

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Strong Balanced Matrix

Organization

Org2:

Project Manager acts as Authority on Functional

Managers. Has strong power.

Org1 Client

Project Manager

Design Manager

Design Team Design Team

Development Manager

Development Team

Development Team

Quality Manager

Quality Team

Development Manager acts as Project Manager

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In Class Activity - Quick Role Play

Scenario:

Client has asked the Business Head to deliver a new product for their business

enhancement.

Roles Required – Volunteers please.

Client

Business Head

Project Manager

Resource Manager

Team Member

Assumptions:

Make your assumptions – inform before hand in writing.

What to achieve from the role play?

Give the client confidence about the delivery of the new product.

Let us discuss the Learning's.

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Project Triple Constraints

Time, Scope, Cost are marked on the corners of the triangle (project) representing intended constraints on Project are referred as triple constraint.

Any pull on one constraint in its own direction changes the dimensions of other two corners of triangle and alters project.

Quality is inherent to the project and goes accordingly with pull and push of triple constraints.

Triple Constraint also known as Iron Triangle.

Time

Scope Cost

Quality

Risk

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Chapter 2 - Debrief

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THIS BRINGS TO CHAPTER 2 COMPLETION.

From what we have understood so far is: Fundamentals of Project Management Framework

Project & Project Management

Operation

Program & Program Management

Portfolio & Portfolio Management

PMO & its connect across organization

Need for Projects

Role of a Project Manager

Qualities of a Project Manager

Product Life Cycle & Project Life Cycle

Enterprise Environmental Factors

Stakeholder & Relation to Project

Management by Objectives (MBO)

Project Manager’s Radar Wheel

Organizational Structure, Its Influence on Projects

Organizational Process Assets

Project Triple Constraints

Chapter 2

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Project Management

Process Groups

Chapter 3

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Chapter 3

Objectives

Common Inputs, Tools & Techniques, Outputs (ITTOs)

Initiating Process Groups - 2 Processes

Planning Process Groups - 24 Processes

Executing Process Groups - 8 Processes

Monitoring & Controlling Process Groups - 11 Processes

Closing Process Groups - 2 Processes

All the above 47 Processes & their Inputs, Tools & Techniques, Outputs (ITTOs)

This chapter entails one to understand the 5 different Process Groups, 47 Processes, their Inputs, Tools & Techniques, Outputs.

Detailed understanding about each of these 47 processes with practical and theoretical knowledge.

Understand some of the important concepts of project management process groups and processes with the aid of samples and examples.

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Project Management Process Groups

Based on the W. Edward Deming Plan-Do-Check-Act

cycle and groups are largely derived from same.

Project Management is Integration of these

processes running across the project. Actions taken

during one process typically need alignment and

coordination with interfacing processes. These

project management processes are grouped into

five groups.

1. Initiating Process Group: Processes performed to define and authorize the new project and start.

2. Planning Process Group: Processes performed to scope the project, refine project objectives, and define course of action to acheive project objectives.

3. Executing Process Group: Processes performed to complete the defined

work inline with specifications.

4. Monitoring & Controlling Process Group: Processes perfomed to monitor the work being performed to the specifications and perform processes to adopt changes in order to bring

back the work being performed inline to the specifications.

5. Closing Process Group: Processes performed to closure of all activities and finally the project end formally.

Project Management

Processes

Plan

Do

Check

Act

Planning

Execution

Monitoring

Controlling

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8 Initiating Domain Process Group Tasks

1. Perform project assessment based upon

available information, lessons learned from

previous projects, and 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.

2. Identify key deliverables based on the business

requirements, in order to manage customer

expectations and direct the achievement of

project goals.

3. Perform stakeholder analysis using appropriate

tools and techniques, in order to align

expectations and gain support for the project.

4. Identify high level risks, assumptions, and

constraints based on the current environment,

organizational factors, historical data and

expert judgment, in order to propose an

implementation strategy.

5. Participate in the development of the project

charter by compiling and analysing gathered

information, in order to ensure project

stakeholders are in agreement on its elements.

6. Obtain project charter approval from the

sponsor, in order to formalize the authority

assigned to the project manager and gain

commitment and acceptance for the project.

7. Conduct benefit analysis with stakeholders

(including sponsor, customer, subject matter

experts), in order to validate project alignment

with organizational strategy and expected

business value.

8. Inform stakeholders of the approved project

charter, in order to ensure common

understanding of the key deliverables,

milestones, and their roles and responsibilities.

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13 Planning Domain Process Group Tasks

1. Review and assess detailed project

requirements, constraints, and assumptions

with stakeholders based on the project

charter, lessons learned, and by using

requirement gathering techniques, in order to

establish detailed project deliverables.

2. Develop a scope management plan, based

on the approved project scope and using

scope management techniques, in order to

define, maintain, and manage the scope of

the project.

3. Develop the cost management plan based on

the project scope, schedule, resources,

approved project charter and other

information, using estimating techniques, in

order to manage project costs.

4. Develop the project schedule based on the approved project deliverables and milestones,

scope, and resource management plans, in

order to manage timely completion of the

project.

5. Develop the human resource management

plan by defining the roles and responsibilities of

the project team members, in order to create

a project organizational structure and provide

guidance regarding how resources will be

assigned and managed.

6. Develop the communications management

plan based on the project organization

structure and stakeholder requirements, in

order to define and manage the flow of

project information.

7. Develop the procurement management plan

based on the project scope, budget, and

schedule, in order to ensure that the required

project resources will be available.

8. Develop the quality management plan and

define the quality standards for the project

and its products, based on the project scope,

risks, and requirements, in order to prevent the

occurrence of defects and control the cost of

quality.

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13 Planning Domain Process Group Tasks

9. Develop change management plan by

defining how changes will be addressed and

controlled, in order to track & manage

change.

10. Develop the risk management plan by

identifying, analysing, and prioritizing project

risks, and defining risk response strategies, in

order to manage uncertainty and opportunity

throughout the project life cycle.

11. Present the project management plan to the

relevant stakeholders according to applicable

policies and procedures, in order to obtain

approval to proceed with project execution.

12. Conduct kick-off meeting, communicating the

start of the project, key milestones, and other

relevant information, in order to inform and

engage stakeholders and gain commitment.

13. Develop the stakeholder management plan

by analysing needs, interests, and potential

impact, in order to effectively manage

stakeholders’ expectations and engage them

in project decisions.

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7 Executing Domain Process Group Tasks

1. Acquire and manage project resources by

following the human resource and

procurement management plans, in order to

meet project requirements.

2. Manage task execution based on the project

management plan by leading and developing

the project team, in order to achieve project

deliverables.

3. Implement the quality management plan using

the appropriate tools and techniques, in order

to ensure that work is performed in

accordance with required quality standards.

4. Implement approved changes and corrective

actions by following the change management

plan, in order to meet project requirements.

5. Implement approved actions by following the

risk management plan, in order to minimize the

impact of the risks and take advantage of

opportunities on the project.

6. Manage the flow of information by following

the communications plan, in order to keep

stakeholders engaged and informed.

7. Maintain stakeholder relationships by following

the stakeholder management plan, in order to

receive continued support and manage

expectations.

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7 Monitoring & Controlling Domain

Process Group Tasks

1. Measure project performance using

appropriate tools and techniques, in order to

identify and quantify any variances and

corrective actions.

2. Manage changes to the project by following

the change management plan, in order to

ensure that project goals remain aligned with

business needs.

3. Verify that project deliverables conform to the

quality standards established in the quality

management plan by using appropriate tools

and techniques, in order to meet project

requirements and business needs.

4. Monitor and assess risk by determining whether

exposure has changed and evaluating the

effectiveness of response strategies, in order to

manage the impact of risks and opportunities

on the project.

5. Review the issue log, and update if necessary,

and determine corrective actions by using

appropriate tools and techniques, in order to

minimize the impact on the project.

6. Capture, analyze, and manage lessons

learned using lessons learned management

techniques, in order to enable continuous

improvement.

7. Monitor procurement activities according to

the procurement plan, in order to verify

compliance with project objectives.

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7 Closing Domain Process Group Tasks

1. Obtain final acceptance of the project

deliverables from relevant stakeholders, in

order to confirm that project scope and

deliverables were achieved.

2. Transfer the ownership of deliverables to the

assigned stakeholders in accordance with the

project plan, in order to facilitate project

closure.

3. Obtain financial, legal, and administrative

closure using generally accepted practices

and policies, in order to communicate formal

project closure and ensure transfer of liability.

4. Prepare and share the final project report

according to the communications

management plan, in order to document and

convey project performance and assist in

project evaluation.

5. Collate lessons learned that were documented

throughout the project and conduct a

comprehensive project review, in order to

update the organization’s knowledge base.

6. Archive project documents and materials using

generally accepted practices, in order to

comply with statutory requirements and for

potential use in future projects and audits.

7. Obtain feedback from relevant stakeholders,

using appropriate tools and techniques and

based on the stakeholder management plan,

in order to evaluate their satisfaction.

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Understand PMBOK

5 Process Groups

Initiating Process Group

Planning Process Group

Executing Process Group

Monitoring & Controlling Process Group

Closing Process Group

10 Knowledge Areas

Integration Management

Scope Management

Time Management

Cost Management

Quality Management

Human Resource Management

Communication Management

Risk Management

Procurement Management

Stakeholder Management

Initiating

Planning

Executing

Closure

Monitoring & Controlling

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Client

Project

Vendor

Vendor

Work

PM

ClientPM

VendorPM

Vendor PM

Internal Stakeholders External Stakeholders External Stakeholders

Organization 1

Organization 2

Organization 3

Organization 4

Internal

External

External

For effective preparation, consider yourself to be in the center of entire project engagement during

PMBOK Study

Foundation: PMBOK Study Assumption

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47 Processes

Knowledge Area

Initiating (2P) 13% Questions

Planning (24 P) 24% Questions

Executing (8P) 30% Questions

Monitoring & Controlling (11P) 25% Questions

Closing (2P) 8% Questions

Integration 4.1 Develop Project Charter

4.2 Develop Project Management Plan

4.3 Direct And Manage Project Work

4.4 Monitor And Control Project Work 4.5 Perform Integrated Change Control

4.6 Close Project Or Phase

Scope

5.1 Plan Scope Management 5.2 Collect Requirements 5.3 Define Scope 5.4 Create WBS

5.5 Validate Scope 5.6 Control Scope

Time

6.1 Plan Schedule Management 6.2 Define Activities 6.3 Sequence Activities 6.4 Estimate Activity Resources 6.5 Estimate Activity Duration 6.6 Develop Schedule

6.7 Control Schedule

Cost 7.1 Plan Cost Management 7.2 Estimate Costs 7.3 Determine Budget

7.4 Control Costs

Quality 8.1 Plan Quality Management 8.2 Perform Quality Assurance

8.3 Control Quality

Each process has

Inputs to the process

Tools & Techniques applied to the process

Outputs from the process

Table Continued…

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47 Processes

Knowledge Area

Initiating (2P) 13% Questions

Planning (24 P) 24% Questions

Executing (8P) 30% Questions

Monitoring & Controlling (11P) 25% Questions

Closing (2P) 8% Questions

Human Resources

9.1 Plan HR Management

9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team

Communications 10.1 Plan Communications Management

10.2 Manage Communications

10.3 Control Communications

Risk

11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses

11.6 Control Risks

Procurement 12.1 Plan Procurement Management

12.2 Conduct Procurements

12.3 Control Procurements

12.4 Close Procurement

Stakeholder 13.1 Identify Stakeholders

13.2 Plan Stakeholder Management

13.3 Manage Stakeholder Engagement

13.4 Control Stakeholder Engagement

Each process has

Inputs to the process

Tools & Techniques applied to the process

Outputs from the process

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Common ITTO’s

Common

Inputs

• Project Management Plan

• Enterprise Environmental Factors

• Organizational Process Assets

Common

Tools & Techniques

• Expert Judgment

Common

Outputs

• Project Management Plan updates

• Project document updates

• Change Requests

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Common Inputs

Project Management Plan

• Is created across the processes in summary or detailed manner.

• Is the basis for all the project work to be accomplished based on the approach defined in the plan.

Enterprise Environmental Factors

•Factors which have direct or indirect influence on the outcome of Project.

•Could be Internal to the organization or beyond organization – external.

•Some of them are listed here:

•Organization Culture

•Organization Format & structure

•Human Resource Policies

•Political Climate

•Regulatory environment

•Government Environment Policy

•Financial & Market Conditions…

Organizational Process Assets

•Organizational assets within the organization to help & guide project manager accomplish project delivery.

•Some of them are listed here:

•Processes, Guidelines and Procedures

•Examples: Financial Payment Processes, Technical Guidelines, Disaster Recovery Procedures

•Corporate Knowledge Base

•Examples: Historical Project Files & Reports, Past lessons learned

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Common Tools & Techniques

Expert Judgment

• Experts in their Subject Matter are considered to be the prime source of information for the project manager to gather inputs on any particular subject.

• This is one of the elements for decision making process for project manager and management.

• Project Manager also utilizes the Expert skills to resolve issues in that particular expertise domain. This ensures that project manager is only a facilitator and not the problem solver him/herself.

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Common Outputs

Project Management Plan Updates

• Is created across the processes in summary or detailed manner and becomes the continuously evolving output from each process

• Is utilized by all project team members

Project Document Updates

• At any given point the project documents need to be up to date

• Documents which get updated include:

• Requirements Document

• Project Issue Log

• Risk Register

• Stakeholder Register

• Performance Reports

• Communication Log

Change Requests

• All change requests derived out of each input or process is an output.

• This is also an input to Integrated Change Control Process which includes Corrective, Preventive actions, defect repairs and scope changes.

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We Learnt: Common ITTO’s

Common

Inputs

• Project Management Plan

• Enterprise Environmental Factors

• Organizational Process Assets

Common

Tools & Techniques

• Expert Judgment

Common

Outputs

• Project Management Plan updates

• Project document updates

• Change Requests

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Let us talk about Initiating Key Purpose of this Group:

Align Stakeholder Expectations to

Project’s Purpose

Nature of aspects involved in Initiating:

Selection of the Project using

Business Case

Project feasibility check &

Product fitment

Selection of the Sponsor

Identification of all Stakeholders

Cultivate Stakeholder

Management Strategy

Gather preliminary information

required for Project

establishment including

processes and lessons learnt

Evaluate Initial requirements,

Identify Risks & Evaluate

Assumptions

Selection of the Project Manager

Develop Project Charter

Breakdown Project into phases

based on Strategy

Define High level objectives of

the Project

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Exam Perspective on Initiating

Primary goals of Initiating are:

Develop project charter

Identify Stakeholders

Understand the following in Initiating:

Staffing is very low

Costs are very low

Chances of Project success are very low

Risks are higher

Stakeholders Influences are higher

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Let us talk about Planning Key Purpose of this Group:

Develop Project Management Plan

along with subsidiary Management Plans

Nature of aspects involved in Planning:

Planning all phases of the Project

Plan all subsidiary management plans

Detailed Scope Requirements & Develop Scope Statement

Evaluation of Detailed Time(Schedule), Cost(Budget) Needs, Quality (Benchmark Standards, Adoption of Processes, Metrics)

Identify Procurement Needs(Purchases)

Define the Human Resource Requirements including Roles,

Responsibilities Matrix

WBS Creation & WBS Dictionary Development

Create activity list, network diagrams, resource requirements

Identification of Project Critical Path

Perform Risk Identification, Risk Qualitative & Quantitative Analysis with Risk Response Strategy

Develop detailed Procurement plan

Develop Process Improvement plan

Develop Change management plan

Develop Project Performance measurement plan & Establish Baselines

Approval on the Project Plans

Kick Off Project Execution

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Exam Perspective on Planning

Primary goals of Planning are:

Finalize a Project Management Plan

Establish supporting Subsidiary Management Plans

Understand the following in Planning:

Project Management Plan and Subsidiary

Management Plans are not finalized until a

thorough Risk assessment and identification has

been performed

Before using any of these plans, all of them need

to be approved by the Project

board/Sponsor/Stakeholders

Provisions should be made in the entire planning

to accommodate the changes which will arise

across the project dimensions

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Let us talk about Executing

Key Purpose of this Group:

Get the work done as defined in the management plans by using all

defined means

Nature of aspects involved in Executing:

Project Work Execution as per Baselines

Acquire & Deploy Procured Services,

Products & Resources

Select Sellers & Check Quality of Deliverables from Procurement

Deploy & manage the Human Resources

Project Team Performance Reinforcements, Rewards,

Recognition, Team Building

Conduct Meetings & Communicate Information

Adherence to the Project Processes

Implement Approved Changes by CCB (Change Control Board)

Quality Assurance & Quality Audits, Continuous Process Improvements

Record Issues in the Issue Log, assist the Conflict Resolution

Produce the Deliverables

Ramp down Resources and finally release

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Exam Perspective on Executing

Primary goals of Executing are:

Direct and Manage Project Work

Re-adopt and Refine the Project

Work as progression happens

Understand the following in Executing:

Project progression involves

getting the work accomplished

along with the re-planning,

updates and re-baseline the

project upon approvals

Large amount of the entire project

sum is expensed in this stage

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Let us talk about Monitoring &

Controlling Key Purpose of this Group:

Is to measure the performance of the project, address change requests,

recommended corrective and preventive actions along with implement defect repairs

Nature of aspects involved in Monitoring & Controlling:

Measure work against the Project performance baselines

Enable corrective and preventive actions

Enable approved baseline changes & re-calibered Project plan

Seek approval for the Change

Requests

Perform Quality Control

Perform Procurement Monitoring

Perform Risk Audits

Perform Integrated Change Control

Perform Forecast Management

Perform Configuration

Appraise Stakeholders with actionable information

Get an approval on the deliverables from Customer

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Exam Perspective on

Monitoring & Controlling Primary goals of Monitoring & Controlling are:

Monitor and Control Project Work and Integrate Change Control

Pay more attention on these areas:

Perform root cause analysis

Secure additional funding

Perform validated defect repair

Calculate ETC(Estimate to Complete)

Reassess project control system for effectiveness

Understand the following in Monitoring & Controlling:

Project subsidiary plans are complete and realistic

Project performance is measured against metrics

Variances observed are rectified with corrective actions

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Let us talk about Closing

Key Purpose of this Group:

Project performed is now

brought to a proper closure with

all the proper project details

been documented, archived,

released and published

Nature of aspects involved in Closing:

Conformity to Product

Requirements

Procurement Closure

Phase Closure

Product Acceptance

Financial Closure

Stakeholder Appraisal of Project

Performance

Document Project Performance

Report

Document Project Lessons Learnt

Archive Project information for

Future use

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Exam Perspective on Closing

Primary goals of Closing are:

Ensure Project Administrative Closure on the Project is completed(without which project is not marked complete)

Understand the following in Closing:

Project is not always only closed in proper manner, it may also be subject of Project termination

Reasons for Project termination has to be detailed and documented formally for future references

After the Project is closed formally, it is time to Celebrate.

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Chapter 3 - Debrief

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THIS BRINGS TO CHAPTER 3 COMPLETION.

From what we have understood so far is:

Common Inputs, Tools & Techniques, Outputs (ITTOs)

Initiating Process Groups - 2 Processes

Planning Process Groups - 24 Processes

Executing Process Groups - 8 Processes

Monitoring & Controlling Process Groups - 11 Processes

Closing Process Groups - 2 Processes

All above 47 Processes & their Inputs, Tools & Techniques, Outputs (ITTOs)

Chapter 3

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Integration Management

Chapter 4

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Chapter 4

Objectives

Understand the different Integration

Management Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Integration aspects required to pull together the project towards its success!

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Project Integration Management is the integration of actions

in a consolidated manner across various processes to ensure

the overall project still delivers on all intended aspects of the

project requirements.

Project Integration is essential to proper and up to date

functioning of the project by ensuring :

right options are derived for resource allocation

approved changes to the project scope are vitalized

decisions taken on the competing project objectives

triggering right processes for next action

engaging stakeholders with effective communication &

information across the changes

managing inter dependencies between processes &

knowledge areas

consistency in delivery approach, documentation,

standards being adopted across processes

Knowledge Area: Integration Management

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There are 6 Integration Management processes:

1. Develop Project Charter

Develop a document called Project Charter to formally authorize the project and start

using organizational resources by Project Manager

2. Develop Project Management Plan

Develop a plan which will include all subsidiary management plans and

integrated baselines

3. Direct and Manage Project Work

Directing and Managing the planned work along with implementing the approved changes

4. Monitor and Control Project Work

Monitoring and Controlling of project work during execution of project while status reports circulated, corrective & preventive actions implemented

5. Perform Integrated Change Control

Integrating the approved changes and keeping the project focused to deliver end project objectives

6. Close Project or Phase

Formally closing all project/phase related activities

Knowledge Area: Integration Management

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4.1 Develop Project Charter

Inputs

• Statement Of Work

• Business Case

• Contract

• Enterprise Environmental Factors

• Organizational Process Assets

Tools & Techniques

• Expert Judgment

Outputs

• Project Charter

• Integration

• Develop Project Charter

• Scope

• Time

• Cost

• Quality

• Human Resource

• Communications

• Risk

• Procurement

• Stakeholder

• Identify Stakeholders

Initiating Process Development of a formal document which authorizes project, outlining preliminary requirements of stakeholder’s and is a mandatory step to start the project.

Project charter has to be signed by a Sponsor who is a higher authority than a project manager and with knowledgeable about both internal & external needs &

influences.

PM’s Authority can be in multiple

ways, exerted on team.

Positional – Authorized to act

on behalf of sponsor

/management

Referent – Influence using

their own personality

Reward – Influence using the

incentives and recognition.

This is the most influential

Expert – Influence using the

subject matter expertise or

respect because of PM skills

Coercive – Influence using

the fear or rebuke. This is the

least influential

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Statement of Work (SOW)

Statement of work is the nature of product or service to be delivered at end of project.

For Internal Projects, Project Initiator or Sponsor provides the SOW.

For External Projects, in addition Customer may also provide the SOW.

It may constitute of:

Business Need

Defines what the business would serve to the needs of the market or introduce new product/service.

High Level Product Scope

Defines what product will be actually be capable of and how it will serve the business need.

Strategic Plan

Defines how the project is inclined to the organizational goals. All projects should be always inclined towards organizations strategic goals in addition to serve the business need.

Business Case establishes whether the project is worth the investment.

Executives or Management uses this knowledge to make investment decision into the project.

Business Analysts are the key group to perform the Cost Benefit Analysis (CBA) of the project based on the stakeholder inputs and then consumed by the executives for decision making.

Business Case is the result of the need, it could be:

Market Requirement

Customer Need

Social Need

Technological Requirement

Organizational Advancement

Compliance

Ecological Need

Business Case

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How Projects are chosen

for Investment?

• Present value of Project considering future cash inflows & cash outflows, also includes inflation rate & foreign exchange rates

• NPV = 𝐹𝑉

(1+𝑟)𝑛

• FV-Future value, r-Interest rate, n- Time period

NPV

Net Present Value

• IRR is known as the Annualized effective compounded return rate on the Project / Investment.

• Also known as Effective Interest Rate.

IRR

Internal Rate of Return

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• Returns on Invested Value are calculated as a metric to compare amongst several Projects or to make Investment decisions.

• ROI = Net Profit / Investment Value

ROI

Return on Investment

• Considered as typically a Period of Investment to be earned back or to break even point.

• Payback Period = 𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑒𝑑 𝐶𝑎𝑠𝑕 𝐼𝑛𝑓𝑙𝑜𝑤 − 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠𝑖=0

Payback Period

Projects are picked for investment based

on many parameters in an organization.

Golden Rule of Selection:

Highest NPV Wins!

Highest IRR Wins!

Highest ROI Wins!

Lowest Payback Period Wins!

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Project Charter It is the document issued by project

initiator or sponsor to formally authorize

existence of a project and provide the

project manager with the authority to

apply organizational resources to project

activities.

It documents the business/customer

needs, assumptions, constraints, and

high-level requirements to develop or

create new product, service, or result.

Intended to satisfy the needs such as:

Project purpose or justification,

Measurable project objectives and

related success criteria,

High-level requirements, Assumptions

and constraints,

High-level project description and

boundaries,

High-level risks, Summary milestone

schedule,

Summary budget, Stakeholder list,

Project approval requirements

(i.e., what constitutes project

success, who decides the project

is successful, and who signs off on

the project),

Assigned project manager,

responsibility, and authority level

Name and authority of the

sponsor or other person(s)

authorizing the project charter.

The size of the project charter varies

on complexity of project and

information known at the time of its

creation.

At minimum, the charter should outline

the high-level boundaries of project.

This document is created initially and

NOT updated on continual mode.

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4.2 Develop Project Management Plan

Inputs

• Project Charter

• Outputs From Other Processes

• Enterprise Environmental Factors

• Organizational Process Assets

Tools & Techniques

• Expert Judgment

• Facilitation Techniques

Outputs

• Project Management Plan

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

In order to develop a ―comprehensive project

management plan‖ based on which the project work

itself can be accomplished, it requires to define, prepare

and coordinate all the sub-plans and integrate them.

This plan document will define the approach of the work

to be done, how the project will be executed, monitored

& controlled, along with how to close the project.

Project management plan document may include:

Subsidiary Project Management Plans

Project Phases

Change Control Process

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Facilitation techniques have broad application within project management

processes and are used to guide the development of the project

management plan.

Some of the key techniques used by facilitators to help teams and individuals

achieve agreement to accomplish project planning activities include:

Brainstorming

Conflict resolution

Problem solving

Meeting management

Facilitation Techniques

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Project management plan components may

include, but not limited to:

Baselines(Scope, Schedule, Cost)

Scope Baseline(Project Scope

Document, WBS, WBS Dictionary)

Subsidiary Management Plans(Scope,

Requirements, Schedule, Cost, Quality,

Process Improvement, Human Resources,

Communications, Risk, Procurement,

Stakeholder)

Project management processes

Level of implementation for each process

Tools and techniques to be used

How work will be executed, changes will

be monitored and controlled

How configuration management will be

performed

How baseline integrity will be maintained

Project Management Plan Stakeholder communication needs

Project life cycle, its phases and

processes applied

Key management reviews including

periodic issue management,

escalation meetings, risk reviews so on.

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Project Documents

Apart from the Project management

plan, there are project documents

which are generated and used for

managing project outcome.

Here is a list of some of them:

• Activity Attributes

• Activity Cost Estimates

• Activity Duration Estimates

• Activity List

• Activity Resource Requirements

• Agreements

• Basis Of Estimates

• Change Log

• Change Requests

• Forecasts

• Cost Forecast

• Schedule Forecast

• Issue Log

• Milestone List

• Procurement Documents

• Procurement Statement Of Work

• Project Calendars

• Project Charter

• Project Funding Requirements

• Project Schedule

• Project Schedule Network

Diagrams

• Project Staff Assignments

• Project Statement Of Work

• Quality Checklists

• Quality Control Measurements

• Quality Metrics

• Requirements Documentation

• Requirements Traceability Matrix

• Resource Breakdown Structure

• Resource Calendars

• Risk Register

• Schedule Data

• Seller Proposals

• Source Selection Criteria

• Stakeholder Register

• Team Performance Assessments

• Work Performance Data

• Work Performance Information

• Work Performance Reports

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4.3 Direct and Manage Project Work

Inputs

•Project Management Plan

•Approved Change Requests

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Expert Judgment

•Project Management Information Systems

•Meetings

Outputs

•Deliverables

•Work Performance Data

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Integration

•Direct and Manage Project Work

•Scope

•Time

•Cost

•Quality

•Perform Quality Assurance

•Human Resource

•Acquire Project Team

•Develop Project Team

•Manage Project Team

•Communications

•Manage Communications

•Risk

•Procurement

•Conduct Procurements

•Stakeholder

•Manage Stakeholder Engagement

Executing Process Directing and managing the

project work execution to ensure

the project objectives are met

along with any approved changes

of work also being executed.

In addition to managing the

planned activities, project

management team also has to

deal with unplanned ad-hoc tasks

which may be beneficial to the

success of the project objectives.

Key benefit of this process is it

provides overall management of

project work as per the needs of

the project objectives.

This process includes activities as:

Perform activities to accomplish

project work towards the objectives

Create Project Deliverables

Up skill the project team to ensure

capabilities to accomplish the tasks

Procure required budget, time,

resources, material

Establish the processes and

procedures to be followed

Establish communication channels

and contracts with third parties

Manage risks, evaluate constraints

and validate assumptions of work

Manage stakeholders and their

engagement levels are adequate

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Corrective Action

Deviations to the planned work has to be

brought back in the line of planned work,

this is accomplished with the

implementation of Corrective actions.

Preventive Action

Deviations to the planned work has to be

brought Deviations to the planned work

once acted with correction actions

should be altered such that any further

deviations are prevented with

implementation of Preventive actions.

Defect Repair

In order to ensure any activity which is

leading to non-conformance of the

product requirements is repaired to

deliver a conformance to the product

requirements

Corrective Preventive

Effe

ctiv

enes

s is

h

igh

Co

sts

are

hig

h

4.3 Direct and Manage Project Work In addition to ensure project work is accomplished, sometimes Project Management

Team has to establish suitable actions for implementation of Work & Approved changes.

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Deliverables are the actual outcomes

of any particular phase, module,

process or it may be Project.

Each deliverable is a tangible end

outcome which can be measured in accordance to the defined

objectives.

All deliverables are usually passed

through the quality processes to

ensure they meet the desired quality

and performance.

All these deliverables collectively

contribute towards the end Project

deliverables.

The smallest scale of raw data which is

used to execute the work being

performed to accomplish the work.

Such data gathered during the

execution of processes or work

accomplished is in some cases

retained for further analysis and in

some other cases purged to ensure no

further confidentiality of such data be

maintained.

In some cases the historical record of

such data is valuable for new projects

in similar industries.

Examples include KPI’s (Key

Performance Indicators), actual costs,

number of defects, performance

metrics, simulation records, actual

duration of the tasks and so on. Tangible Outcomes

Tangible Outcomes

Tangible Outcomes

Tangible Outcomes

Deliverables Work Performance Data

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4.4 Monitor and Control Project Work

Inputs

•Project Management Plan

•Schedule Forecasts

•Cost Forecasts

•Validated Changes

•Work Performance Information

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Expert Judgment

•Analytical Techniques

•Project Management Information Systems

•Meetings

Outputs

•Change Requests

•Work Performance Reports

•Project Management Plan Updates

•Project Document Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is a process of how to monitor work in progress & control work in progress so that it meets end project objectives. During the process:

work performance is reviewed & continuous reports are generated to circulate

corrective & preventive actions implemented to put work back on track

forecasts are being circulated for future project path.

Key benefit is that it generates a ready understanding of the current progress on project and future project forecast.

In order to effectively monitor and control work being done by the team, work performed and progress of the work can be compared with baselines developed in planning.

Baselines can be for Project scope, cost, time and quality.

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4.5 Perform Integrated Change Control

Inputs

•Project Management Plan

•Work Performance Reports

•Change Requests

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Expert Judgment

•Meetings

•Change Control Tools

Outputs

•Approved Change Requests

•Change Log

•Project Management Plan Updates

•Project Document Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is a process to perform

integrated changes to the

project and define the new plans

arising due the changes which

have been accepted.

During the course of the project a

series of changes occur which

could be minor, moderate, major

and based on the CCB(Change

Control Board) these changes

are either Accepted, Rejected or

Delayed.

Once the new plans are

established, the respective

baselines are adopted and a

new perspective on the project is

circulated among stakeholders.

Perform Integrated Change

Control is performed over the

duration of the entire project and

is sole responsibility of the Project

Manager.

Approved Change Requests may

require completely new or revised

estimates of the Cost, Activity,

Schedule, Resources and Risk

evaluation.

All changes go through CCB and

approved by Project

Sponsor/Project Manager. In

some cases

stakeholders/customers are

additionally included to CCB for

additional approval.

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Change Control focuses on the

changes to ensure the project

objectives are achieved. Configuration

control is focused on specification of

the processes and the deliverables.

Some of the Configuration

Management activities included in the

Perform Change Control process are:

1. Configuration Identification

2. Configuration status Accounting

3. Configuration Verification and

Audit

Configuration Identification

Identification and Selection of the

Configuration items which helps in

managing the accountability for the

entire project duration.

Configuration Status Accounting

Once accounted, the status of the

configuration item has to be reported

to the team and the stakeholders for

rest of the project duration.

Configuration Verification and Audit

Ensures the configuration items are

correctly marked, addressed, labeled,

registered and implemented as

identified in the project audit summary.

Change Control and Configuration Control

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Collection of formal documented procedures, paperwork, tracking systems and approval levels for authorizing changes.

Plan for how changes will be managed

CCB creation

Change Control Tools are essential for the

performance of the Integrated Change Control

Process of Project management. This should not

be considered as IT Change Management.

Identification of the right tool(either manual or

automated) may be chosen based upon the

project management team and stakeholder

requirements.

Normally the tools which are chosen should

enable the project management team to

perform the change control along with

automated communication flows and decision

publishing to the stakeholder groups.

Change Control Tools

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Approved Change Requests

Changes which are pushed or pulled to the CCB are either approved or rejected

and in cases it may be delayed for further evaluation.

Once the changes are approved they are supposed to be implemented in the

project with the Direct and Manage Work execution process.

The status changes of all the changes in the CCB are recorded and circulated to the

intended teams along with the stakeholders for further information, action and

support

All changes are recorded in the change log during the project duration whether they

are approved or rejected.

Change Log

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Change Desired

Define Change

Impact Analysis

CCB Review

Project Revised

Deliver Project

Re-evaluate Change

Maintain Change

Log

CCB will ensure Project

Manager has sufficient

control over the changes.

Uncontrolled change

implementations

with/without the

knowledge of Project

Management Team often

results in Termination of

Projects – since they lack

the overall vision of the

project if the changes are

not addressed properly.

Forming the committee of

members (including client)

on CCB ensures the

stakeholders know and

make approval on only

desired changes toward

the project or act upon

them accordingly.

Change Control Board (CCB) Flow

Rejected Changes

Delayed Changes

Scheduled

Integrated Approved

Change Requests

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4.6 Close Project Or Phase

Inputs

•Project Management Plan

•Accepted Deliverables

•Organizational Process Assets

Tools & Techniques

•Expert Judgments

•Analytical Techniques

•Meetings

Outputs

•Final Product, Service or Result Transition

•Organizational Process Assets Updates

•Integration

•Close Project Or Phase

•Scope

•Time

•Cost

•Quality

•Human Resource

•Communications

•Risk

•Procurement

•Stakeholder

•Close Procurements

Closing Process

This is the process of closing project with all project related activities in the manner the project objectives are accomplished.

Key benefit of the process is to formal closure of all project activities, generate the lessons learned, release the organizational resources for next projects.

Closure of the project is performed once the Project Scope is realized as per the Scope Baseline and confirmed by project management team.

In case of the project being terminated, the Close Project process ensures a detailed investigation into the reasons why the project

had to be terminated and the lessons are documented accordingly.

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Chapter 4 - Debrief

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THIS BRINGS TO “INTEGRATION MANAGEMENT” COMPLETION.

From what we have understood so far is:

6 Integration Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 4

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Scope Management

Chapter 5

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Chapter 5

Objectives

Understand the different Scope

Management Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Scope Management aspects required to understand the customer needs, how they need to be approached and

finally brought to the satisfactory need of the customer – making the project successful!

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Project Scope Management includes all the defined project work which need to be accomplished in order to ensure the project is completed successfully.

Project scope may be a subset of the Business Needs which is a much larger context of the requirements. Multiple projects or phases, based on the budget available may also be established in order to accomplish the required business

needs for the market.

Manage Scope Management involves definition and controlling project scope for the project.

Scope can be broadly categorized into:

Business Scope: set of market needs at high level

Product Scope: subset of business scope to define the product or service characteristics

Project Scope: subset of Product Scope to define project deliverables

Base lined Scope is primary reference for project and further approved changes by CCB(Change Control Board) are added to establish new scope baselines

which are secondary references during project.

Project Scope Completion marks Completion of Project.

Knowledge Area: Scope Management

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There are 6 Scope Management processes:

1. Plan Scope Management

Establishing the Project Scope in the Scope management plan document

2. Collect Requirements

Collecting the requirements from stakeholder groups ensuring those requirements are managed (monitor, Control) till end of the project

3. Define Scope

Defining the detailed Project scope in the Scope Statement

4. Create WBS ( Work Breakdown Structure)

Establishing and breaking down the scope

into manageable components in structured manner

5. Validate Scope

Once the work is accomplished it needs to be validated against the requirements

6. Control Scope

Monitoring and Controlling the project scope across the project duration w.r.t Scope Baseline

Knowledge Area: Scope Management

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5.1 Plan Scope Management

Inputs

•Project Management Plan

•Project Charter

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Expert Judgment

•Meetings

Outputs

•Scope Management Plan

•Requirements Management Plan

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Plan Scope Management is to create a Scope

Management document that documents how the

project scope will be defined, validated and controlled.

Benefits of having this document early will ensure the

minimal conflict resolutions arising due to the project

scope changes.

Key benefit of this process is to provide guidance and

direction on how the scope will be managed during the

course of project.

This plan helps to reduce the risk of project scope creep.

Let us understand this in little detail for practical sense.

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Scope Management Plan describes how the scope will

be defined, developed, monitored, controlled, and

verified.

It constitutes of the:

Process for preparation of a detailed project scope

statement

Process to enable WBS creation from the detailed

project scope statement

Process that establishes how the WBS will be

maintained and approved

Process that specifies how formal acceptance of the

completed project deliverables will be obtained;

and

Process to control how requests for changes to the

detailed project scope statement will be processed.

This process is directly linked to the Perform

Integrated Change Control process

Plan itself can be at a high or low level, based on the

needs of the project.

Scope Management Plan

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Requirements management plan details how the requirements

will be solicited, analyzed, documented and managed.

The phase-to-phase relationship influences requirements

management. Based on the nature of the project, either single

phase, multiple phase(sequential or overlapping phases),

project manager defines the approach adopted for

requirements management.

It constitutes of the:

How requirements activities will be planned, tracked and

reported

Configuration management activities such as:

how changes to the product will be initiated

how impacts will be analyzed

how they will be traced, tracked, and reported, as well as

the authorization levels required to approve these changes

Requirements prioritization process

Product metrics that will be used and rationale for adopting

them

Traceability structure to reflect which requirement attributes will

be captured on the traceability matrix.

Requirements Management Plan

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5.2 Collect Requirements

Inputs

•Scope Management Plan

•Requirements Management Plan

•Stakeholder Management Plan

•Project Charter

•Stakeholder Register

Tools & Techniques

•Interviews

•Focus Groups

•Facilitated Workshops

•Group Creativity Techniques

•Group Decision-making Techniques

•Questionnaires And Surveys

•Observations

•Prototypes

•Benchmarking

•Context Diagrams

•Document Analysis

Outputs

•Requirements Documentation

•Requirements Traceability Matrix

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Collect requirements process

means: Define and document

stakeholders’ needs; Define and

manage customers’

expectations; Establish the

foundation of the WBS; Input to

cost, schedule, and quality

planning.

Key benefit of this process is to

become the basis for defining

and managing the project scope

including product scope.

Practically, organizations classify

requirements into:

Project Specific

Business Requirements

Project Management

Requirements

Delivery Requirements

Product Specific

Performance Requirements

Security Requirements

Technical Requirements

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Collect Requirements - Interviews

Used to provoke information from stakeholders by talking & engaging them directly. Either One-on-one or Group interviews with appropriate subject matter experts (SME’s) are used to identify features and seek functions of desired end outcome deliverables.

Either formal or informal interviews ensure the project manager gain those elicited answers from participants and often also result to access to confidential requirements.

Formal Interview Process Steps :

1. Identify stakeholders to be interviewed

2. Obtain a general understanding of the customers business

3. Develop interview questions using open-ended questions

4. Set meeting time and location for the interview

5. Provide a set of questions to interviewees prior to the interview

6. Use one or more Recorders to accurately preserve results of the interview

7. Provide results to interviewees for confirmation of content

Informal Interview Process Steps :

1. Identify stakeholders to be interviewed

2. Obtain a general understanding of the customers business

3. Develop interview questions to make sure certain questions are answered during session

4. Set up a casual meeting or telephone conversation time for the interview.

5. Takes handwritten notes during the interview; avoid using electronic data capture.

6. Provide results to interviewee for confirmation of content

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As it indicates, Focus Groups are focused moderated discussions in a group(includes prequalified stakeholders, subject matter experts) hosted by an experienced moderator to go through a channelized manner of discussion to arrive at required requirements information to develop a product, service or outcome.

Why are Focus Groups useful to collect requirements from Stakeholders, SME’s?

Group dialogue tends to generate rich information, as participants’ insights tend to ―trigger‖ the sharing of others’ personal experiences and perspectives in a way that can more easily or readily tease out the nuances and tensions of complex topics and subjects – a dynamic that is not present during key

informant interviews.

Provides information directly from individuals who are invested in the issue or hold expert knowledge about a topic of which little is known among researchers. Provides information from people who can provide insights about actual conditions and situations.

Provides a representation of diverse opinions and ideas.

Provides a relatively low cost and efficient way to generate a great deal of information.

Collect Requirements - Focus Groups

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These are focused sessions with key stakeholders together to define product requirements.

Workshops are considered a primary technique for quickly defining cross-functional requirements and reconciling stakeholder differences.

Due to their interactive nature, well-facilitated sessions can build trust, foster relationships, and improve communication among the stakeholders, to lead increased stakeholder consensus. In addition, issues can be discovered earlier and resolved more quickly.

However, ensuring the key stakeholder participation & active presence remains a challenge from the project management perspective.

Few of the well know facilitated workshop examples include:

JAD(Joint application development) used in Software Industry. Both Business users and Technical users sit together to define the requirements.

QFD(Quality Function deployment) used in Manufacturing Industry. Customer needs are collected, sorted, then prioritized, and goals set for achieving them. This helps determine the critical requirements of the product.

How to make facilitated workshop a success?

The moderator is key and has to understand end objective of workshop, set expectations in the beginning & moderate discussion in manner keeping all participants in mind.

Each statement should be elaborated by the moderator before being thrown out in the open workshop for discussion. And finally each discussion point needs to be concluded right there to ensure consensus or partial agreement on the consensus. Formalize the conclusions with a formal email after workshop to all stakeholders.

Facilitated Workshops

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Group Creativity Techniques

Which Technique? Explanation

Brainstorming Primarily a source to generate and collect multiple ideas

Nominal Group Brainstorming clubbed with prioritization & voting process for further exploration of most useful ideas

Delphi Group of subject matter experts provide responses anonymously for consolidation by a facilitator and redistributed out for further exploration

Idea/Mind Mapping

Individual brainstorming session results are mapped into a single map to generate bigger ideas

Affinity diagram Number of ideas are classified into categories for further review & analysis

Multi criteria decision analysis

utilizes a decision matrix to provide a systematic analytical approach for establishing criteria, such as risk levels, uncertainty, and valuation, to evaluate and rank many ideas

Generating a creative environment for SME’s or project team to openly

discuss their ideas is a powerful and creative way to ensure the

requirements are fully captured.

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Selection of staff may be done with respect to ratings provided for each individual

resource on multiple parameters.

It is advantageous to structure complex problems well and to consider multiple

criteria explicitly which would lead to more informed and better decision making to

pick the right set of resources.

Multi-Criteria Decision Analysis is a management tool applied for making

Management decisions, Requirements prioritization, Resource Selection or any other

where extensive parameters are supposed to be solicited.

Multi-Criteria Decision Analysis

Resources Total

Ratings Availability Cost Experience Ability Knowledge Skills Attitude

International

factors

Raj 38 2 7 4 5 1 6 9 4

Surya 41 8 4 6 2 1 7 10 3

Satish 52 10 7 2 4 6 7 8 8

Ashok 47 7 8 4 3 2 5 8 10

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Group Decision Making

Which Technique?

Explanation

Unanimity

Decisions which are arrived where everyone agrees to the course of action. This type of outcome is possible with brainstorming combined with Delphi technique.

Majority Decisions where more than 50% participants agree on the course of action.

Plurality Decision arrived by the largest group even if the majority is not arrived.

Dictatorship One individual makes the decision for the group.

Driving decisions of multiple stakeholders to a cohesive direction in a

project environment means applying many techniques at different times

of the project for the best outcome.

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Questions & Surveys

Set of predefined questions and or polls

to arrive at a statistical answer from a

geographically spread diversified team

of stakeholders. This is the MOST easiest

way to collect information from such a

large group of stakeholders.

Respondents providing sufficient

information and knowledge to

complete the survey. The usefulness of

a survey is in the responses that are

received to solicit requirements.

Adding an incentive for participants to

complete the survey quickly may also

speed up the entire process of

collection of requirements.

Surveys can take a long time to

prepare, collect, and collate but with

careful planning, a well-executed

survey can simplify the process of

gathering requirements dramatically.

Observations come handy when the

requirements are not been able to

articulate. An observer acts as shadow

to the person performing the job and

captures the required detail about the

requirement.

Though Questions and Surveys can be

used to secure information from

project team and market, often

considerable amount of data can be

collected by just observing.

Seeing and Listening are the key to

gain significant information.

Observation provides the opportunity

to document activities, behavior and

physical aspects without having to

depend upon project team willingness

and ability to respond to questions.

Observations (Job Shadowing)

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Prototypes

Prototypes are also known as abstract

representations, storyboarding..

Prototypes are the methods of ensuring

the early feedback from the

stakeholders due to its nature of being

a mockup of the actual end product.

In Software, storyboards use mock-ups

to show the end visualization of

software products with links and

interfaces.

Highly useful in visualizing the look and

feel of an application and the process

workflow.

Is the technique of comparing the

actual or planned practices to those of

the standard industry best recognized

and/or accredited practices to ensure

the possible improvements on the basis

of the measuring performance.

One can also benchmark individual

projects or program, or overall

organization's project management, or

both, because they are all related.

Some parts of the organization do

really well, other parts really bad.

Benchmarking is not only to gather

requirements, it can also be used in

many other dimensions in the

organization.

Benchmarking

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Context Diagrams

Context diagrams visually depict the

product scope by showing a business

system (process, equipment, computer

system, etc.), and how people and

other systems (actors) interact with it.

Context diagrams show inputs to the

business system, the actor(s) providing

the input, the outputs from the business

system, and the actor(s) receiving the

output.

Context diagrams serve as a useful tool

to help the project stakeholders

communicate about what lies outside

the system boundary.

Is the technique of elicitation of

available documents from various

sources to arrive at the requirements.

Sources may be internal or external to

the organization like:

Business Plans, Marketing Literature,

Agreements

RFP’s, Current process flows,

Logical data models

Business rule repositories, Software

documentation

Business Processes, Use cases,

Other requirements

Problem/Issue logs, Policies,

Procedures

Regulatory documentation such as

laws, codes or ordinances so on..

Document Analysis

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Requirements Documentation

Requirements documentation describes how individual requirements meet the business need for project. Requirements get refined as more clarity is visible over project period elapses.

Requirements documentation may consist of

the:

Business Requirements

Stakeholder Requirements

Solution Requirements

Project Requirements

Transition Requirements

Requirements assumptions

Dependencies and Constraints

Requirements traceability matrix is a grid document that envisions how the product requirements from their origin to the deliverables that satisfy them.

Tracing requirements include the following:

Business needs, opportunities, goals and

objectives

Project Objectives

Project Scope/WBS Deliverables

Product Design

Product Development

Test Strategy and Test Scenarios

High level requirements to more detailed requirements

Requirements Traceability Matrix

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5.3 Define Scope

Inputs

• Scope Management Plan

• Project Charter

• Requirements Documentation

• Organizational Process Assets

Tools & Techniques

• Expert Judgment

• Product Analysis

• Alternatives Generation

• Facilitated Workshops

Outputs

• Project Scope Statement

• Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Define scope ensures the detailed description of the project and product with the boundaries of what is included and excluded.

This is continuously evolved as the project progresses.

In order to avoid scope creep, wherever possible scope should be

as much detailed as possible.

Definition: Scope creep is considered as any un-warranted changes introduced to the existing scope of work.

From the Collect Requirements Process, since it will not be possible

to develop the entire set of requirements identified, the finalized version of requirements will constitute the project scope.

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Project Scope Defined

Project Scope Statement

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It is the description of Project Scope, Major Deliverables, Assumptions, and Constraints. The Project Scope Statement documents entire Scope, including Project and Product Scope.

It may constitute the following:

Product Scope Description

Product Acceptance Criteria

Project Deliverables

Project Exclusions

Project Constraints and Assumptions

Although Project Charter and Project Scope Statement are different with their intended purpose, it is better to have a clear understanding:

Project Scope Statement

Project Charter Project Scope Statement

May include…

Project justification

High-level requirements and

project description

Summary milestone schedule

and budget

Measureable objectives and

success criteria

Project approval requirements

Sponsor name and signature

Project manager name and

authority level

May include…

Project

o Deliverables

o Boundaries

o Constraints

o Assumptions

Product

o Scope description

o User acceptance criteria

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Product Analysis

Product analysis is a method for converting the

product description into project deliverables and

requirements. Product analysis includes techniques:

Product Breakdown: Breaks down product into

components, to examine each component

individually and how it may work with other parts of

entire product.

Systems Engineering: Focuses on satisfying the

customers’ needs, cost requirements, and quality

demands through design and creation of product.

Value Engineering: Deals with reducing costs and

increasing profits, all while improving quality. Its

focus is on solving problems, realizing opportunities,

and maintaining quality improvement.

Value Analysis: Similar to value engineering, this

focuses on the cost/quality ratio of the product. For

example, your expected level of quality of a

€200,000 car versus a €150,000 used car is likely

relevant to the cost of each.

Function Analysis: Related to value engineering, this

allows team input to the problem, institutes a search

for a logical solution, and tests the functions of the

product so the results can be graphed.

Quality Function: This deployment is a philosophy

and a practice to fully understand customer

needs—both spoken and implied—without

incorporating unnecessarily costly features or

refinements into the project deliverables.

Used to develop as many potential options as

possible in order to identify different approaches to

execute and perform the work of the project.

This means making sure that for every project

decision, there is a real choice:

a choice of implementation methods, possibly using

different approaches or technical methods. The first

one that comes to mind is not always best one.

a choice of who does what. The expert may be very

good but not available when needed. It may be

faster to use the expert as a coach, supporting a

less experienced person for implementation.

a choice of location. Where the project team are

affects communications, availability and many

other factors.

a choice of supplier. This is normal practice for

procurement, where ―alternatives generation‖ is

built into the system.

a choice of standards. Not all standards apply in all

situations.

Alternatives Generation

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5.4 Create WBS

Inputs

•Scope Management Plan

•Project Scope Statement

•Requirements Documentation

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Expert Judgment

•Decomposition

Outputs

•Scope Baseline

•Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Create WBS (Work Breakdown Structure) is the process of subdividing the

deliverables and work into smaller, more manageable components in a

structured hierarchical decomposition visual manner.

Key Benefit from this process is to envision the holistic view of deliverables in a

structured fashion.

The planned work at the lowest level of the WBS element is called as Work

Package.

Work package is also identified as a group of related activities that can be

easily: Estimated; Scheduled; Monitored and Controlled

Usually Work packages are assigned to individual owners to ensure

estimation and timely management.

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Decomposition is a technique to divide and

subdivide the large chunks of project scope into

more manageable smaller(granular) work

packages.

The degree of such granularity depends on the

control needed on the work packages to be

delivered, usually until the cost and schedule can

be managed.

Decomposition of the work usually involves:

Identification and Analysis of High Level Work

and Deliverables

Structure and Organize the WBS Elements

Decompose Higher elements into Lower

elements

Assign WBS element identification codes for

each element

Ensure the WBS elements are manageable, if

not further decompose the elements.

How do you manage WBS elements of work

contracted?

Ensure the work contracted has its own WBS

which is manageable by the contracted

party.

In Scope Management, project deliverables are

subdivided into smaller and more manageable

components until the work and deliverables are

defined to the work package level. This is called as

decomposition.

In Time Management, each work package within

the WBS is decomposed into the activities required

to produce the work package deliverables. This is

called as decomposition.

Decomposition

Project

Phases

Deliverables

Work Packages

Activities

Decomposition Output of

Scope

Management

Output of Time

Management

Decomposition

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Sample WBS

My Robot

1.0 Project Management

1.1 Planning

1.2 Procurement

1.3 Execution

1.4 Monitoring & Controlling

1.5 Closure

2.0 Soft Simulation

2.1 Design & Develop software

models

2.2 Execute Simulations

2.3 Make Refinements

2.4 Security & Performance

Check

3.0 Hardware Simulation

3.1 Beta Model Development

3.2 Practical Demonstration of working unit

3.3 Make Hardware

Refinements

3.4 Security & Performance

Check

4.0 Production Modeling

4.1 Setup a Production

Model Machinery

4.1.1 Internal Clearances

4.1.2 Regulatory Clearances

4.1.2.1 Geographic Regulatory

Clearances – Asia

4.1.2.2 Geographic Regulatory

Clearances - Americas

4.1.3 Product Ready Clearance

4.2 First Lot of Production

4.3 Refinement Checks

4.3.1 Production Quality & Assurance

4.3.2 Rapid Production Check

5.0 Mass Production

5.1 Contracted to Third Party

WBS can be established in various formats based on the project needs, complexity and the control required. Typically, it is decomposed until the Project Scope and Cost can be managed at that Work package level.

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The Scope Baseline is the approved version of a Scope

Statement, Work Breakdown Structure (WBS), Associated

WBS Dictionary that can be changed only through formal

change control procedures and is used as a basis for

comparison.

Each Work Breakdown Structure (WBS) work package is

assigned to a Control Account with and established unique

identifier from Code of Accounts. Control Accounts play a

vital role in management decisions with performance

measurement of each work package.

WBS Dictionary is a document that provides detailed

deliverable, activity, and scheduling information about

each component in the WBS. It may include:

Code Of Account Identifier, Description Of Work

Assumptions And Constraints, Responsible Organization

Schedule Milestones, Associated Schedule Activities

Resources Required, Cost Estimates

Quality Requirements, Acceptance Criteria

Technical References, Agreement Information.

Scope Baseline

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What does Scope Baseline Consists?

Scope Baseline

Associated WBS

Dictionary

Project Scope

Statement

WBS

Primary Success of almost every project is to achieve the Scope Baseline.

Without Scope, Project is not a Win.

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5.5 Validate Scope

Inputs

• Project Management Plan

• Requirements Documentation

• Requirements Traceability Matrix

• Verified Deliverables

• Work Performance Data

Tools & Techniques

• Inspections

• Group Decision Making

Outputs

• Accepted Deliverables

• Change Requests

• Work Performance Information

• Project Document Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is a process to formally validate

and accept the deliverables and

ensure the scope defined in the

plan has been implemented.

Key benefit of this process is the

final product will be in line with

the scope defined at the

beginning and the likelihood of

the end product is in line with the

expectations.

Validation is performed keeping

the scope baseline and other

planning documents as the basis

to evaluate the completed

deliverables.

Validation itself may be

performed by a special team

constituted and may comprise of

the team, management,

stakeholders and/or customer

based on the need of the

project.

Control Quality and Validate

Scope come very close and

perform almost the same. The

exception being in Control

Quality, it is identified to correct

the quality and bring it back on

track from deviation to quality,

whereas in Validate Scope, it is to

ensure the scope itself is being

met as the needs/requirements of

the project/activities.

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Inspection is the formal evaluation of a

particular work being delivered and the

deliverables inline to the product

acceptance criteria.

Usually inspections are done as soon

work is being completed or deliverable

ready, it is performed by performing

team and includes peer or supervisor

reviews of work being accomplished.

Defects and/or repairs identified in the

inspections are subject to be corrected

and implemented as per the project

need/requirement.

Inspections are also known as

Product Demonstrations

Reviews

Walk Through

Audits

Inspections

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5.6 Control Scope

Inputs

• Project Management Plan

• Requirements Documentation

• Requirements Traceability Matrix

• Work Performance Data

• Organizational Process Assets

Tools & Techniques

• Variance Analysis

Outputs

• Work Performance Information

• Change Requests

• Project Management Plan

• Project Document Updates

• Organizational Process Assets Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is a process to monitor the project and product scope and control the scope to ensure the project objectives are met.

Key benefit of this process is

that we have an up to date Scope Baseline at any given point in time.

Changes are quite natural to happen on projects and ensuring scope changes are

managed well with Control Scope process ensures scope creep is avoided.

Scope creep by definition means uncontrolled changes to the features and functions planned earlier in the project.

Allowance on scope will trigger scope creep and naturally cause alterations to the unprecedented and uncontrollable project changes in various directions including cost impact,

schedule impact, quality impact.

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Degree of difference between the planned baseline and the actual baseline of work is known as Variance Analysis.

The larger the degree of variance

the project is much out of control. Variance may be analyzed on various parameters including Scope, Cost, Schedule.

On the quality front the variance may be analyzed if there is a

quality baseline established. In practice, quality baseline is often not established for the entire duration of the project. It may be only for a subset of the entire project.

Scope Variance is often the most critical in any project, deviation from the original plan of requirements deviation.

Variance Analysis

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Scope Creep & Project Dimensions

Lighter than Planned Originally

Heavier than Planned

Becomes

More and

More

Heavier as

Time

progresses

Dilution of

Original

Project

Vision,

Scope, Cost,

Time,

Quality…

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Prevent Scope Creep in real life

3 Effective Simple Techniques to prevent scope creep/pitfalls:

Have crystal clear requirements defined where ever possible

Have Change Control Board(CCB) in place without any exceptions

Have a working CCB capable to make tough timely informed decisions. Any incapacity of CCB should be immediately dealt with and ensured that CCB is not defunct in Project

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Chapter 5 - Debrief

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THIS BRINGS TO “SCOPE MANAGEMENT” COMPLETION.

From what we have understood so far is:

6 Scope Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 5

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Time Management

Chapter 6

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Chapter 6

Objectives

Understand the different Time Management

Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Time Management aspects required to understand the customer delivery timeline needs.

Also, how the timeline will be approached, managed and finally honored – making the project successful!

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Project Time Management includes processes to ensure the schedule is defined,

managed, controlled and has updated schedule baseline to meet project timeline.

Establishing a Project schedule involves using the Project Information, Project

Scheduling Methods & Tools.

Most common scheduling methods include Critical Path Method (CPM) & Critical

Chain Method (CCM).

Schedule may be represented in many a ways including the Bar Chart, Network

Diagram and/or Activity List.

Knowledge Area: Time Management

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There are 7 Time Management processes:

1. Plan Schedule Management

Establishing Project Schedule in Schedule Management Plan Document which will be used across project to control timelines as

project evolves and changes occur.

2. Define Activities

Breaking down the larger chunks of scope into actionable small activities using the WBS by defining project activities

3. Sequence Activities

Establishing the relationships between the defined project activities to ensure the sequence of activities are done in rightful manner

4. Estimate Activity Resources

What type and amount of estimated resources are required to accomplish sequenced activity

5. Estimate Activity Durations

How long will it take to ensure the estimated resources perform the activity assigned

6. Develop Schedule

Based on all the available information from defined activities to sequence activities to

estimate resource & durations will aid to arrive at develop schedule

7. Control Schedule

Monitoring and Controlling the project schedule across the project duration w.r.t schedule baseline and achieve the project

objectives

Knowledge Area: Time Management

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6.1 Plan Schedule Management

Inputs

• Project Management Plan

• Project Charter

• Requirements Documentation

• Organizational Process Assets

Tools & Techniques

• Expert Judgment

• Analytical Techniques

• Meetings

Outputs

• Schedule Management Plan

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Is the process to ensure project schedule is managed

from beginning of the project to the end of the project

with a defined approach.

Key benefit of this means to provide a guidance and

oversight on how the project schedule is to be managed

with an upfront defined schedule thresholds.

The schedule management plan also defines how

schedule contingencies will be reported and assessed

over the course of the project delivery.

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This may involve options to estimate and schedule the project using the Scheduling methodology, scheduling Tools and techniques, estimation approaches, formats and project management software.

Approaches are defined to ensure speedy delivery while

ensuring the project risk is managed well.

Crashing or Fast Tracking are common schedule compression techniques using which the work is parallelized. While delivery of the work in parallel is beneficial this may also increase the risk on the project. These decisions are to be well explained to the relevant stakeholders as the case may be.

In some cases, organizations with well established frameworks ensure to have organization policies and procedures with defined techniques to employ such as:

Rolling wave planning

Leads and lags

Alternative analysis

Methods for reviewing schedule performance

Analytical Techniques

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Schedule Management Plan defines the criteria and activities for developing, monitoring and controlling project schedule. It establishes the following:

Project Schedule Model Development →

Scheduling Methodology & Scheduling Tool to be used

Level of Accuracy → Extent of the estimates supposed to be accurate. Include any contingency for estimation gaps

Units of Measure → What units will be applied, staff hours, staff days, weeks, meters, liters, kilometers and so on

Organizational Procedure Links → Links to the phases, activities from the WBS to ensure

consistency and resulting schedules

Project Schedule Model Maintenance → Define the updates and changes to the schedule during the execution phase of the project

Control Thresholds → Percentage deviations which ensure that the actions are taken for any threshold value deviations

Rules of Performance Management

EVM (Earned Value Management) rules

or similar performance management rules are set

How the percentage completion will be established?

Control Accounts on which the management review to be performed

EVM techniques applied

SV (Schedule Variance) & SPI (Schedule Performance Indicator) against the Schedule baseline

Reporting formats → What reports are required, Which format and at What

frequency

Process descriptions → Any processes which will administer the schedule performance and management across the project course

Schedule Management Plan

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6.2 Define Activities

Inputs

• Schedule Management Plan

• Scope Baseline

• Enterprise Environmental Factors

• Organizational Process Assets

Tools & Techniques

• Decomposition

• Rolling Wave Planning

• Expert Judgment

Outputs

• Activity List

• Activity Attributes

• Milestone List

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Define Activities process is performed to ensure the actions are identified and documented to produce end project deliverables.

Key benefit of this process is to provide an understanding of breaking down the work packages into activities that can be easily estimated, scheduled, executed, monitored and controlled.

The purpose of this process is to identify the specific tasks needed to be done in order to produce the project’s deliverables.

Scope Baseline is used as a starting point to breakdown documented deliverables even further, as well as a guide to assure that entire scope of Project is covered, but not extend

beyond boundaries of Project.

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Rolling Wave Planning

Rolling wave planning is the iterative planning technique to plan the immediate work in detail and subsequent work at higher levels in at progressive elaboration manner.

As an example, in the early stages of the project work packages are defined at a

higher level for different phases. However, as we enter the phase more clarity is available and the work packages are made granular.

Understand it this way, waves closer to us give better clarity on what they bring along with them. Similar to the immediate work at hand, we know more detailed view of them to accomplish, than the far away waves or work.

This is a comprehensive list of all activities to be performed as part of the project.

Each activity is supplemented with an activity identifier and sufficient detailed scope of work so as that could be

accomplished.

Is Activity List same as WBS?

An activity list is a list of ―What we are doing‖ in the project to accomplish deliverables.

Whereas a WBS is a list of ―What we are making‖ in the project as deliverables.

Imagine this as WBS is a high level view of deliverables and Activity list as a low level view of the deliverables.

Activity List

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Activity Attributes

Often the activity has just more

than the activity identifier like WBS

ID, Activity label, Activity code,

successor activity code,

predecessor activity code, logical

relationship definition, leads, lags,

resource associated, cost

associated, geographic tag, the

project calendar the activity is

assigned, effort type(level of effort,

apportioned effort, discrete effort)

and so on.

All these attributes help bring more

organized and clarity in the

accomplishment of each activity.

A Milestone is an important event

of accomplishment of major work.

These milestone activities are

simply put, the zero duration

activities.

They could be either internal to the

organization or external market

commitment requirements.

Milestone List

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6.3 Sequence Activities

Inputs

•Schedule Management Plan

•Activity List

•Activity Attributes

•Milestone List.

•Scope Statement

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Precedence Diagramming Method (PDM)

•Dependency Determination

•Leads And Lags

Outputs

•Project Schedule Network Diagrams

•Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Activities need to be sequenced or connected with each

other by a relation and dependencies to ensure the

proper flow and completion of the project work

considering all the constraints.

This also ensures realistic schedules and efficiency in

delivery of project work since the appropriate leads and

lags are added.

All activities other than the very first and very last

activity/milestone, rest all of them need to be connected

with each other.

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PDM is one of the activity sequencing techniques in practice; in which activities are represented in a graphical manner to show precedence of activities to be accomplished in sequence.

In this technique, activities are represented as Nodes. Also known as AON (Activity on Node).

Most software packages use this type of representation including Microsoft Project.

PDM (Precedence Diagramming Method)

Start

A

B

C

D

E G

H

Finish

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PDM (Precedence Diagramming Method)

Finish to Finish Relationship Start to Start Relationship

Research Data Started

Produce Report Started

Data Transfer Finished

Migration Finished

Start to Finish Relationship Most Rarely Used

Server Installation Started

Vendor Job Finished

Finish to Start Relationship Most Commonly Used

Draft Manual Finished

Print Manual Started

PDM also used logical relationships between activity to activity. Four types of relationships:

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Dependencies can be of different nature.

Mandatory → These are the legally or contractually required or inherent in the nature of work being done. Hard logic which has to be met at any cost.

Discretionary → These dependencies are at discretion of Project Team. And are the preferred dependencies based on the best practices of work done in the past or as defined by the SME(Subject Matter Experts) for an alternate option. Also know as Soft logic which can undergo an alternate option.

External → Dependencies where the project team has to consider the external work done beyond the project team’s control. This is more rampant in case of Contractual Projects. This is

beyond control of project team.

Internal → Dependencies where project team has to lookup to internal precedence to ensure the previous work is accomplished. This is in the control of the Project team.

These 4 dependencies can be clubbed in combination:

Mandatory External Dependencies

Mandatory Internal Dependencies

Discretionary External Dependencies

Discretionary Internal Dependencies

Dependency Determination

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Lead Time

Let us understand what a lead is with an example.

For a movie, Activity A(movie shooting) takes 5

Days. Post the movie shooting, Activity B(mass

production) takes another 10 Days for release. The

movie in such a scenario is produced for release at

5+10=15 days.

Let us now consider a little smart situation. Activity A

takes 5 days. Activity B takes another 10 days for

mass production. However, as the movie is been

shot, the production activities can be started with 3

days in advance(lead) to completion of movie

shooting.

This would mean the new release date of the movie

can be as early as 12 days instead of 15 days with a

lead time of 3 days for production.

Let us understand what a lag is with an example.

For a wooden house construction, Activity

A(Procurement of wood) takes 4 days. Activity

B(Construction of house) takes 6 days. The schedule

for the house construction in such an ideal scenario

is 4+6=10 days.

Let us now consider a little practicality, After the

wood is procured, we would want to ideally have

the wood seasoned for 3 days(Lag) during which

time, neither the procurement can be done nor the

construction can begin.

This would mean the practical end to end of

construction of wooden house is 4+3+6=13 days.

More realistic sense.

Lag Time

A – 5 Days

B – 10 Days

Lead of 3 Days

Total Duration 2+10=12 Days

A – 4 Days

B – 6 Days

Lag of 3 Days

Total Duration 4+3+6=13 Days

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Pay attention to Tasks where convergence and divergence

occurs. These are critical tasks. Any defects introduced in these

tasks or delays will lead to major quality deficit.

Activity Convergence – Many outputs of activities converge into one activity

making it critical activity

Activity Divergence – Many outputs will diverge from this activity making it

critical activity

Activity Activity Output

Many Outputs

Input Many Inputs

A project is termed highly complex with many activities with

convergences and divergences, not just the many number of tasks on

the Project schedule network.

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As the name suggests it is a graphical representation of the Project

Schedule in a Network format. Though it is usually represented in

graphical manner, it is also accompanied by descriptions for any

exceptions represented in the graphic.

A

B

D

I

C

E

K

J

F

L

G

Start End H

Exceptions

-----------

-----------

-----------

-----------

Project Schedule Network Diagram

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6.4 Estimate Activity Resources

Inputs

•Schedule Management Plan

•Activity List

•Activity Attributes

•Resource Calendars

•Risk Register

•Activity Cost Estimates

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Expert Judgment

•Alternative Analysis

•Published Estimating Data

•Bottom Up Estimating

•Project Management Software

Outputs

•Activity Resource Requirements

•Resource Breakdown Structure

•Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

This is the process of estimating based on the type,

quantity, quality of human resources, material resources

to arrive at more accurate estimate(key benefit).

Estimate Activity Resources and Estimate Costs are closely

linked to each other.

For example, a high rise tower construction needs

specialized government approvals and specialized

skilled workers to execute tasks at such a high rise

tower. This means additional cost incurred to procure

these resources.

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Activity Cost Estimates are the probable

costs which may be incurred on the

particular activities and summed to

arrive at the project completion cost.

The cost of resources may impact

resource selection to keep the project

cost optimal to respect the triple

constraints.

Activity Costs may be direct or indirect :

Direct:

Labor Cost, Materials, Equipment,

Services

Interest Charges, Exchange Rates,

Cost Contingency Reserve

Indirect:

Depends on the performing business

unit and/or Organization

Activity Cost Estimates

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Alternative Analysis

Many activities can be accomplished in more than one way. Alternative Analysis is the ways of finding the best optimal manner to accomplish the activities and project completion.

This includes various skill levels of the resources, type of resources used, size and performance of the machines used, manual or automated tools, make-rent-or-buy decisions and so on.

A make-or-buy analysis results whether work

can best be accomplished by project team or purchased from contracted sources.

In Practice, these type of decisions are some times best defined by the organizational culture and project manager’s decision is limited in nature. Some organizations prefer

to always buy a new tool instead of development of one. And some other prefer to develop their own tool instead of buy. A few also venture out to sell their own use tools to the market.

Many Organizations have a predefined rate lists, estimation production chart data, per unit costs defined for geographies, countries, time zones, special work days and so on. This type of data is readily usable to arrive at the estimation.

In this technique, the activity is compared to the activities for which data exists and the actual cost or durations of the closest comparable activity is selected from the data and used as the estimate.

The advantage of this technique is that it is very accurate when the project conditions match the conditions under which the published data was generated.

The disadvantages are that data does not exist for many activities and that the

published data that does exist is based upon the characteristics of the organizations who compiled and published the data.

Published Estimating Data

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Bottom up Estimating

Aggregation of all the bottom most

elements which can be individually

estimated to sum up for estimate is

known as bottom up estimate.

All WBS elements broken down into

work packages and further granular

elements are used to arrive at the

bottom up estimating.

Advantage of such estimate analysis is

that it is highly accurate form of

estimate as the work is better

understood.

Disadvantage of such estimate analysis

is that it is time consuming and also

may not be practical at the beginning

of the project since it may not have a

decomposed WBS.

Advance in technology has led us to

utilize the software tools to ensure we

have more accurate and reliable

estimates based on the input

collaboration of various project

management aspects like scheduling,

risks, optimized resource utilization,

breakdown structures and so on.

Project Management Software

Source Acknowledged: http://www.tenrox.com/

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Defines the list of resources to be applied for any given activity on the

project. Identification of Set of Responsibilities for a Role. Pooling all different

roles into Resource requirements for meeting the Project objectives.

Activity Resource Requirements

It is a structural illustration of resources based on category and type. This is

useful for organizing and reporting project schedule data with resource

utilization information.

Resource Breakdown Structure

Project Resources

Management

Leads

Analysts

Design

Development

Project Manager

Sr. Management

Materials

Notepads Sketch Boards Marketing Brochures

Equipment

Computers

Photo Copiers

Project Staff

Architects & Designers

Developers Quality

Assurance

Control

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6.5 Estimate Activity Duration

Inputs

•Schedule Management Plan

•Activity List

•Activity Attributes

•Activity Resource Requirements

•Resource Calendars

•Project Scope Statement

•Risk Register

•Resource Breakdown Structure

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Expert Judgment

•Analogous Estimating

•Parametric Estimating

•Three-Point Estimating

•Group-Decision Making

•Reserve Analysis

Outputs

•Activity Duration Estimates

•Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

This is one of the most important

process which aids in the overall

estimation of the project size in

terms of duration.

It is the process of estimating the

period taken for each activity to

complete with estimated

resources.

May not be possible to estimate

completely at the beginning and

may be progressively elaborated

for accurate estimations.

Assumptions should be called out

to the reviewer. Estimates usually

originate from the person or

group with the most familiarity

about the task at hand. This

minimizes estimation gaps upfront

due to ambiguity of task.

Estimation activity uses multiple

information including activity

scope of work, required resource

types, estimated resource

quantities and resource

calendars.

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Example.

For your new bungalow, installing an artificial lawn will take 80 hours of effort.

With one worker who can work 40 hours a week(8 hours a day for 5days) will take 10 work days of duration which

is 2 weeks of elapsed time to complete 80 hours of effort.

With two workers who can work 40 hours a week(8 hours a day for 5days) will take 5 work days of duration which

is 1 week of elapsed time to complete 80 hours of effort.

With four workers who can work 40 hours a week(8 hours a day for 5days) will take 2.5 work days of duration

which is 1/2 week of elapsed time to complete 80 hours of effort.

With two workers who can work 80 hours a week(16 hours a day for 5days) will take 2.5 work days of duration

which is 1 week of elapsed time to complete 80 hours of effort.

Effort ↔ Duration ↔ Elapsed Time

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Analogous Estimating

(Cost or Duration)

Based on the previous experiences or historical information, one may readily come up with the duration or cost estimate for a similar work.

This is known as Analogous(equivalent)

estimating also sometimes knows as Gross value estimating.

Most easily and commonly used form of estimation, costless form of estimation. However, it is also less accurate.

Example:

Two years back I spent 4 months for this

Based on my past experience of such a,

I believe the new

would cost us the same 4 months.

Based on the estimating technique in which an algorithm is used to calculate cost or duration using the historical information or project parameters(statistical relationship).

Example:

For a 1 square foot of construction, it took INR 3500 in the previous construction project.

For the construction of the 50 square foot of

new construction project,

The estimate will be 50*3500 = INR 175000.

Parametric Estimating (Cost or Duration)

project

project

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Accuracy of the estimates may be significantly improved considering the risk and

uncertainty of every estimate. This can be achieved by using the PERT(Program

Evaluation and Review Techniques) values.

PERT uses 3 different estimates to define an approximate range for an activity’s

duration.

Most Likely (M) – This is the most likely estimate

Optimistic (O) – based on thinking best case scenario

Pessimistic (P) – based on thinking worst case scenario

Considering the range of risk and uncertainty, the 3 different estimates can be either:

Triangular Distribution (simple average). Estimate =(O+M+P) / 3

Beta Distribution (weighted average). Estimate = (O+4M+P) / 6

Three Point Estimating

Example: For development of an e-commerce website: • It will take 3 days to complete (optimistic) – Best case scenario • It will take 5 days to complete (most likely) • It will take 13 days to complete (pessimistic) – Worst case scenario Realistic Estimate = (3+4*5+13)/6 = 3+20+13 /6 = 36/ 6 = 6 Days Realistic Estimate will always be closer to Most Likely Estimate.

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Learning Curve

Estimation

A common learning curve on Project depicts that the cumulative average time to complete a manual task which involves learning will decrease 20% whenever volume doubles.

This is referred to as an 80% learning curve.

Let's illustrate the 80% learning curve with a person

learning to design and code websites of similar size

and complexity. If the first website takes 100 hours,

then after the second website the cumulative

average time will be 80 hours (80% of 100 hours).

The cumulative average of 80 hours consists of 100

hours for the first website plus only 60 hours for the

second website resulting in a total of 160 hours

divided by 2 websites.

After the fourth website the cumulative average time

will be 64 hours (80% of 80 hours).

After the eighth website the cumulative average will

be 51.2 hours (80% of 64 hours). In other words, total

time to complete all eight websites will be 409.6 hours

(8 websites times an average time of 51.2 hours).

Improvements in technology can mean time and cost

reductions beyond those in the learning curve.

For example, software may become available to assist

in the design and coding, computer processing

speeds might increase, there may be lower costs of

processing and storage, etc.

The learning curve is important for setting standards,

estimating costs, and establishing selling prices.

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Estimates may sometimes include the Contingency Reserve (Time reserves

or Money buffers) which is included for estimates considering the “known-

unknowns” of the estimates. However, these are different from

Management Reserve, which are kept for any “unknown unknowns” scope

additions by management.

Contingency Reserve is used by Project Manager.

Management Reserve is used by Stakeholders(Management).

Reserve Analysis

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6.6 Develop Schedule

Inputs

•Schedule Management Plan

•Activity List

•Activity Attributes

•Activity Resource Requirements

•Resource Calendars

•Project Scope Statement

•Risk Register

•Risk Breakdown Structure

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Schedule Network Analysis

•Critical Path Method

•Critical Chain Method

•Resource Optimization Technique

•Modeling Techniques

•Leads And Lags

•Schedule Compression

•Scheduling Tool

Outputs

•Schedule Baseline

•Project Schedule

•Schedule Data

•Project Calendars

•Project Management Plan Updates

•Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

It is the process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create project schedule model.

Key benefit is that by entering schedule activities, durations, resources, resource availabilities, and logical relationships into the

scheduling tool, it generates a schedule model with planned dates for completing project activities.

As the project evolves, it is a continuous process to ensure the schedule is updated for changes.

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It is a technique that generates the project schedule model. More importantly the analysis will help you identify the points of path convergence and divergence.

This helps in schedule compression analysis and ensuring the key points and paths are given due diligence.

Schedule Network Analysis

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The longest duration

path of the project is

known as the critical

path. The duration of the

project is determined by

activities listed on critical

path.

Critical Path Method

Technique is to identify

the minimum longest

duration path of project.

Any activity on this

critical path is called a

critical path activity.

Any activity other than

the critical path activity

with total float gives the

schedule flexibility without altering the

Project end dates.

Critical Path Method

S F

5 3 6

4 9

8

S F

5+3+6=14

4+9=13

8

Longest Path is Critical Path

This path of activities would have a Float of 6

(14-8)

This path of activities

would have a Float of 1 (14-13)

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End

D 5

F 9

E 8

C 6

Start

Early Start(ES)

Early Finish(EF)

Total

Float

Task name & Duration

Late Start(LS)

Late Finish(LF)

Branch1:

Non Critical Path: ABCF(3+4+6+9= 22)

Branch2:

Critical Path: ADEF(3+5+8+9=25)

– The longest duration path on the project is identified

also known as Critical Path.

Critical Path Method using Forward Pass & Backward Pass

B 4

A 3

Representation of the task in the Project Schedule

This method helps the project manager identify the critical activities on the entire project by identification of the

Critical Path and also to understand how much delays on tasks is acceptable without impacting the project.

In forward pass, each of the activities, Early Start & Early Finish can be arrived for entire project.

In backward pass, each of the activities, Late Start & Late Finish can be arrived for entire project duration.

After both forward pass & back ward pass, once we have identified ES, EF & LS, LF, one can easily come up with the

total float on each of the activities for entire project duration.

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End

3 8

D 5

16 25

F 9

8 16

E 8

7 13

C 6

Start

Early Start(ES)

Early Finish(EF)

Total

Float

Activity name & Duration

Late Start(LS)

Late Finish(LF)

Forward Pass (EF = ES + Duration) 3 7

B 4

0 3

A 3

Branch1(ABCF) the last EF is 13. Branch2(ADEF) the last EF is 16. In forward pass, pick the largest previous EF number from the branches, which will also become the ES for merging activity F. Hence, ES(Task F) will be 16. On Activity F ES(Task F) = 16 EF(Task F) = ES(Task F) + Duration(Task F) = 16 + 9 = 25 days

On Activity A ES(Task A) = 0. Start the first activity as soon as possible, 0. EF(Task A) = ES(Task A) + Duration(Task A) = 0 + 3 = 3 days Let us calculate ES & EF of all branches first. Branch 1(ABCF) On Activity B EF(Task A) = 3, This value is assigned to ES(Task B) EF(Task B) = ES(Task B) + Duration(Task B) = 3 + 4 = 7 days On Activity C EF(Task B) = 7, This value is assigned to ES(Task C) EF(Task C) = ES(Task C) + Duration(Task C) = 7 + 6 = 13 days Branch2(ADEF) On Activity D EF(Task A) = 3, This value is assigned to ES(Task D) EF(Task D) = ES(Task D) + Duration(Task D) = 3 + 5 = 8 days On Activity E EF(Task D) = 8, This value is assigned to ES(Task E) EF(Task E) = ES(Task E) + Duration(Task E) = 8 + 8 = 16 days Task representation legend

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End

3 8

D 5

3 8

16 25

F 9

16 25 8 16

E 8

8 16

7 13

C 6

10 16

Start

Early Start(ES)

Early Finish(EF)

Total

Float

Activity name & Duration

Late Start(LS)

Late Finish(LF)

Backward Pass (LF – DURATION = LS) 3 7

B 4

6 10 0 3

A 3

0 3

Branch1(ABCF) the first LS is 6. Branch2(ADEF) the first LS is 3. In backward pass, pick the smallest LS number from the branches(6 or 3?) which will also become the LF for activity A. Hence, LF(Task A) will be 3. On Activity A LS(Task A) = LF(Task A) – Duration(Task A) = 3 – 3 = 0. When ES & LS are ‘0’, that would mean all calculations so far are correct.

On Activity F EF(Task F) = 25, This value is assigned to LF(Task F) ES(Task F) = EF(Task F) – Duration(Task F) = 25 – 9 = 16 days Let us calculate LS & LF of all branches now. Branch 1(ABCF) On Activity C LF(Task F) = 16, This value is assigned to LF(Task C) LS(Task C) = LF(Task C) – Duration(Task C) = 16 – 6 = 10 days On Activity B LS(Task C) = 10, This value is assigned to LF(Task B) LS(Task B) = LF(Task B) – Duration(Task B) = 10 – 4 = 6 days Branch2(ADEF) On Activity E LS(Task F) = 16, This value is assigned to LF(Task E) LS(Task E) = LF(Task E) – Duration(Task E) = 16 – 8 = 8 days On Activity D LS(Task E) = 8, This value is assigned to LF(Task D) LS(Task D) = LF(Task D) – Duration(Task D) = 8 – 5 = 3 days Task representation legend

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A Float (also known as Slack) is the amount of time an activity may be delayed without having any further impact.

Free Float is known as the delay on the activity without impacting the subsequent tasks.

Total Float is known as the delay on the activity without impacting overall project completion itself.

With Floats, Project Manager has little comfort to realign the activity priorities and reschedule for any constraints.

Floats on a Project

A B C D E F

X Y

7 4 9 3 8 1

9

Alternate Path of Activities

Critical Path of Activities

Free Float of X

8 Free Float of Y

9 + 8 = 17 Total Float of X

8 Total Float of Y

All Critical Path Activities (A, B, C, D, E, F) will have Zero Free Float Duration & Zero Total Float Duration

End

Start

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End

3 8

0 D 5

3 8

16 25

0 F 9

16 25 8 16

0 E 8

8 16

7 13

3 C 6

10 16

Start

Early Start(ES)

Early Finish(EF)

Total

Float

Activity name & Duration

Late Start(LS)

Late Finish(LF)

Let us calculate ―Float/Slack‖ now! 3 7

3 B 4

6 10 0 3

0 A 3

0 3

Did you notice all activities falling on the critical path? All activities on this critical path by default have Zero Slack or Zero Float.

In order to calculate Float on all activities, simply use the LS – ES otherwise LF – EF. On Activity A 0 – 0 = 0. Float on Activity A is 0. On Activity B 6 -3 = 3. Float on Activity B is 3 days On Activity C 10 – 7 = 3. Float on Activity C is 3 days. Please observe, either Activity B or Activity C can be delayed by 3 days, with out impacting the project. This does not mean you can delay both B and C together by 3 & 3 days. On Activity D 3 – 3 = 0. Float on Activity D is 0. On Activity E 8 – 8 = 0. Float on Activity E is 0. On Activity F 16 – 16 = 0. Float on Activity F is 0.

Task representation legend

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Activity: Please perform

A4

B6

D9

C7

E4

F5

G6 Finish Start

Q1. Identify the Critical path of the project? Q2. How early can we finish the project itself? Q3. How late can we finish the project without impacting Client? Q4. What is the float on the task C? Q5. What would be the new critical path duration if C7 become C14?

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Activity: Answers

A4

B6

D9

C7

E4

F5

G6 Finish Start

Q1. Identify the Critical path of the project? A4-D9-F5-G6 Q2. How early can we finish the project itself? 24 Days Q3. How late can we finish the project without impacting Client? On 24th Day Q4. What is the float on the task C? 2 Days Q5. What would be the new critical path duration if C7 become C14? 29 Days

0 4

0 4

18 24

18 24

10 14

14 18

13 18

13 18

4 10

8 14

4 11

6 13

4 13

4 13

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Project Buffer

A B C Project Buffer

In reality, Project Completion with no Project Buffer may derail the end market commitments and cause major business reputation loss

Ideal Project Completion

Ideally, 1 Task is assigned to 1 Project Resource at any given point in time. No multitasking by same resources.

G H

X Y

Project Start

Project End

Critical Path of Project with Project Buffer

makes the project more realistic towards end result. Start-A-B-C-End is the Critical Path. Start-G-H-B-C-End is alternate path. Start-X-Y-B-C-End is alternate path.

Many a times, in order to suppress the ambiguity on projects and overcome the uncertainty, Project buffer’s are used.

This is simply sometimes an extra timeline after the anticipated Ideal Project Completion. Project Buffers should not be planned thinking resources on the project will not be productive!

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Feeding Buffer Critical Path of Project with Project Buffer makes the project more realistic towards end result. In addition, all alternate paths collision to critical path activities need to be buffered(feeding buffer) to stop derailment of critical path activities. This will protect the Project timeline by not cascading on each individual critical path activity. Each feeding buffer size must account for uncertainty/ambiguity in the duration of the chain of

dependent activities leading up to that buffer.

A B C Project Buffer

Ideal Project Completion

Ideally, 1 Task is assigned to 1 Project Resource at any given point in time. No multitasking by same resources.

G H

X Y

Project Start

Project End

Feeding Buffer

Feeding Buffer

Real Project Completion

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Critical Chain Method In a typical project to calculate the project duration, we

would look into Sequencing of Activities through critical

path. And this critical path can be considered as the

actual project duration, if the assumption of 1 Task Per

Resource Per Project is true.

However, in reality – we would want to achieve some

benefit(including resource optimization) by applying same

resource(SME’s sometimes) to work on some activities,

such as in the case depicted above. This application of

resource over multiple places on the project alters the

critical chain of the project.

This optimized resource constrained critical path is

sometimes known as Critical Chain.

Look at task H & Y to be performed by the same resource

Person 1 after task A. This would mean that automatically

the project critical path which was earlier

Start-A-B-C-End

this has now altered to become Start-A-H-Y-B-C-End

As new Critical Chain path emerges, feeding buffers will

change so that critical path activities are not cascaded

further.

A Person1

B Person1

C Person 4

Project Buffer

Ideal Project Completion

G Person2

H Person1

X Person 3

Y Person1

Project Start

Project End

Real Project Completion

Feeding Buffer

Feeding Buffer

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Resource Leveling

Resource allocation on particular activities may require critical resources which are in

high demand. This may impose these critical resources to be over allocated on

parallel activities and/or multiple projects.

Resource leveling ensures these critical resources are optimally spread across parallel

activities and multiple projects so that they don’t need to work 16 hours a day!

Resource Smoothing

Activities with free float are re-adjusted so that the resources work is evened out.

Readjustment of these activities should not cause changes to the project schedule

duration.

Resource Optimization Techniques

0

10

20

30

40

50

60

70

W1 W2 W3 W4 W5 W6 W7 W8 W90

10

20

30

40

50

60

70

W1 W2 W3 W4 W5 W6 W7 W8 W9

40

Wo

rk H

ou

rs

40

Wo

rk H

ou

rs

Leveling

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What-IF Scenario Analysis

Process to evaluate the scenarios and their anticipated outcomes which may be either Positive, Negative or Unknown.

Based on the outcome of the scenarios, the schedule network analysis is performed which may result into actionable results such as delayed production delivery, impacted financial revenue from the product delivery, extended periods of delivery so on.

The outcomes may also be used in adverse situation planning such as in case of a labor union unrest, what may be the contingency plan or response to such situation.

Simulation

Simulation involves calculation of multiple

project durations based on the activity assumptions.

This may be based on the 3 point estimates distribution(Optimistic, Most Likely, Pessimistic) or Monte Carlo Simulation.

Monte Carlo Simulation is the most common simulation in which a distribution of possible activity durations (based on 3-point estimating – Optimistic, Pessimistic, Most Likely) are defined based on probabilistic random number ranges.

This simulation aides the project manager to come up with variations and extremes which in turn helps project manager to inform stakeholders and set rightful expectations on the project schedules and costs.

Stakeholders are in advantage situation to make a better informed decision based on at least some probabilistic patterns of simulation instead of pulling numbers from thin air.

Modeling Techniques

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Schedule Compression Techniques are applied to shorten schedule duration of the entire project.

Crashing

Cost & Schedule tradeoffs are analyzed to determine how to obtain the greatest amount of compression with least incremental

cost.

As the compression is achieved, the risk and the cost on the particular task dramatically increases. It may not be best to crash always.

Methods to apply crashing include

adding additional resources

approving overtime resources

adding incentives for finishing early

General practice is to ensure the tasks on critical path are crashed first.

Fast Tracking

Activities or Phases performed in parallel instead of sequential leading to quick delivery, though increased cost and/or some rework.

This only works when the activities overlap on each other for some duration.

Schedule Compression Techniques

40 Work Hours done by 1 Person

40 Work Hours done by

2 Person

Crashing done by addition of resources to save time

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Crashing Graphically

Terminate (T)

Start (S)

7M

6M

8M

7M

Critical Path: Longest Duration Path of Project. Any delay on this path of

activity will further delay Project itself.

Alternate Path: This path if wanted could be delayed by a flexibility of 2M. This flexibility

is called Float.

Terminate (T)

Start (S)

7M

6M

8M

7M

Months

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Crashing Graphically

Terminate (T)

Start (S)

7M

6M

8M

7M

Instead of 1 Person working for 8M, let

us say 2 people work on this task to

complete in 2M

1 Person

1 Person 1 Person

1 Person

Terminate (T)

Start (S)

7M

6M

2M

7M

With 2 Person working now, duration of task reduced to 2M from 8M, incurring an extra cost of maybe 1 extra machine

/extra salary for new person

1 Person

1 Person 1 Person

2 Person

New Critical Path is 13M with an Extra Cost of 1 Person

This is the new Alternate Path with a

Float of 13M-9M = 4M

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Crashing Exam Example

What activities can be crashed? • All Critical Path Activities with Zero Float Activity can be crashed. • Non-Critical Path Activities need not be crashed as they don’t generate

any additional benefit to the project schedule compression.

Which will be most beneficial activity that can be crashed from the list? • Activity F will be the most beneficial from the activities among B, C, F, H, J

since it has Cost per Month of 433 which is the least.

Activity

Critical

Path

Activity

Activity

Float

(Slack)

Project

Float

Duration

(month)

Crash

Duration

Time

Savings

Cost

(month)

Crash

Cost

Extra

Cost

Cost

Per

Month

A 1 5 9 1 8 9300 12000 2700 338

B √ 0 5 4 3 1 6800 9000 2200 2200

C √ 0 5 3 2 1 8000 14000 6000 6000

D 2 5 4 3 1 13700 18000 4300 4300

E √ 3 5 6 1 5 6600 10000 3400 680

F √ 0 5 5 2 3 9700 11000 1300 433

G 2 5 8 2 6 7400 8500 1100 183

H √ 0 5 7 3 4 10100 12500 2400 600

I 2 5 10 3 7 12200 17500 5300 757

J √ 0 5 8 4 4 5800 9500 3700 925

Project has a float of 5 months, what would be the best possible crash activity to ensure the 5 months float is saved? • Zero slack critical path activities B, C,

F, H, J. • Combining them together to achieve 5

months, looking into Time savings B+C+F, B+J, C+J, B+H, C+H which will be 2200+6000+433, 2200+925, 6000+925, 2200+600, 6000+600

• The best option is to pick the lowest crash cost per month combination which is B+H.

What is the cost incurred to crash this Project? • Cost incurred to crash any project

would be to crash all the critical path zero slack activities and utilize the complete Project float value(in this case 5 Months) to pick the lowest crash cost per month combination as calculated earlier.

• So the combination is B+H which is 2200+600 = 2800 (Crash cost of the project)

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Fast Tracking Example Days -> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

"A" Task of 6 days A A A A A A

"B" Task of 9 days B B B B B B B B B

"C" Task of 12 days C C C C C C C C C C C C

"D" Task of 5 days D D D D D

Days -> 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

"A" Task of 6 days A A A A A A

If "B" can be fast tracked by 4d

"B" Task of 9 days B B B B B B B B B

If "C" can be fast tracked by 8d

"C" Task of 12 days C C C C C C C C C C C C

If "D" can be fast tracked by 4d

"D" Task of 5 days D D D D D

4 days

8 days

4 days

Total Task Duration = 6+9+12+5 = 32 days

Total Fast Tracked Task Duration = 16 days Duration Saved from Fast tracking

Fast Tracking applicable

for overlapping activities

& phases only

What is the fast tracked duration for above example? • Yes, that’s correct. It is 16 days.

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6.7 Control Schedule

Inputs

•Project Management Plan

•Project Schedule

•Work Performance Data

•Project Calendars

•Schedule Data

•Organizational Process Assets

Tools & Techniques

•Performance Reviews

•Project Management Software

•Resource Optimization Techniques

•Modeling Techniques

•Leads and Lags

•Schedule Compression

•Scheduling Tool

Outputs

•Work Performance Information

•Schedule Forecasts

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Organizational Process Assets Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is the process of managing the project schedule

and controlling the schedule to ensure the project

is delivered with in the planned schedule

timeframe.

Key benefit includes the project schedule is well

within the planned schedule timeframe.

Using control schedule the project can be put

back in to track by corrective and preventive

actions.

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It is the data required to manage and control the Schedule itself. It is

generally observed that alternative schedules arising out of the contingency

or due to the funding limit reconciliation are parked here.

Schedule data includes the milestones, schedule related activities,

identified risks, assumptions and schedule related constraints. Data could

also include the histograms whether the resource leveled or not resource

leveled.

Schedule Data

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Performance Review of work in progress and work accomplished may be

carried in perspective of:

What is accomplished (actual function/story points to planned

function/story points)

at what cost (actual amount of money or percentage wise)

when it is done (actual hours/dates or the deviation dates)

In the Schedule Performance reviews:

actual start date compared to the planned start date

actual end date compared to the planned end date

percentage work accomplished to planned accomplishment

Various Techniques may be used for performance reviews:

Trend Analysis

Critical Path Method

Critical Chain Method

EVM(Earned Value Management)

Performance Reviews

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Schedule Variance (SV) and Schedule Performance Index (SPI) are the two important Schedule Work Performance Information which need to be kept in radar to have the control on the Schedule.

Continuous monitoring of these two parameters help one understand the progress being made and the performance of the project on schedule, allowing the recommended corrective and preventive actions.

Progress reports on the schedule during the control schedule are continuously reported to the stakeholders on desired intervals.

Work Performance Information

Project Status Report

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Schedule Forecasts are future predicted timelines of the

schedule, it may be for a task, activity, module or for a

project.

Mainly the Project schedule forecast is of our

importance, however, at times it may be of critical task,

activity or a module as well.

Scheduled forecast is arrived based on the already work

completed, work in progress and work in future to be

accomplished. In other terms, it is progress against

schedule baseline and the computed time estimate to

complete(ETC).

The past performance indicators reflect the future

course of project work accomplishment.

Forecasts are helpful to determine if the project

schedule is within the defined tolerance levels of the

schedule ranges.

Schedule Forecasts

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Chapter 6 - Debrief

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THIS BRINGS TO “TIME MANAGEMENT” COMPLETION.

From what we have understood so far is:

7 Time Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 6

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Cost Management

Chapter 7

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Chapter 7

Objectives

Understand the different Cost Management

Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Cost Management aspects required to understand the customer monetary dimensions.

What and how the project will be funded for expenditure, what will be needed to complete the project and finally brought to the satisfactory need of the

customer within defined budget – making the project successful!

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Project Cost Management includes

processes to ensure the Cost is defined

(estimated, budgeted), managed,

controlled to arrive on the Cost baseline

used for further reference on the project.

Project Cost Management is largely

associated with establishing the cost to

be incurred on the project and keeping

the cost well within the stipulated cost ranges.

In most organizations, the cost

management is a function performed

largely by the finance or administration

team specialized in financial control.

Knowledge Area: Cost Management

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There are 4 Cost Management processes:

1. Plan Cost Management

Establishing Project Policies, procedures and the

controls to ensure the project costs are managed well.

2. Estimate Costs

Identifying the costs associated with the resource

needs in order to accomplish the project activities

3. Determine Budgets

Once the cost estimates are available a planned

budget is authorized as the Cost Baseline to maintain a

reference for the project

4. Control Costs

Process of managing the project activities to control

costs with reference to the Cost baseline

Knowledge Area: Cost Management

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7.1 Plan Cost Management

Inputs

• Project Management Plan

• Project Charter

• Enterprise Environmental Factors

• Organizational Process Assets

Tools & Techniques

• Expert Judgment

• Analytical Techniques

• Meetings

Outputs

• Cost Management Plan

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Define and establish policies, procedures and

governance models to ensure the cost of the activities

and eventually the Project are planned, managed,

expended and controlled in line with the expectations

defined.

Key benefit of this process is, It provides the guidance and

direction on how the cost need to be managed through

out the project.

This process is detailed from a high-level Project Charter

and the preliminary project management plan.

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Cost Management Plan output describes how project costs will be planned, managed and controlled. It establishes the following:

Units of Measure → Each resource unit of measure will be defined. For example: Staff

Hours, Liters, Kilometers..

Level of Precision → The degree to which the activity cost will be rounded up or down. ( INR 449 to Round up of INR 500 or INR 449 to Round down to INR 400)

Level of Accuracy → The activity estimate accuracy level with tolerance range.(+/- 5%)

Organizational Procedure Links → In order to control costs on the project activities, WBS has options to include Control account and Control account codes. These organization

procedure links ensure the continuous cost monitoring.

Control Thresholds → Defined thresholds on each activity or at project level ensure any variances beyond the thresholds are acted and informed to the stakeholders.

Rules of Performance Management.

EVM rules of performance are set.

Suppose for every INR 10 Lakh, the performance review and the EAC(Estimate at completion) of the project may be reviewed.

Suppose for every completion of 10 tasks, the AC(Actual Cost) may be

reviewed and further actions defined.

Suppose for every CPI variation of more than 20%, a review may be enforced.

Reporting formats → Formats & Frequency of Cost Reports circulated.

Process Description → Other cost processes involved in the project are defined and documented.

Cost Management Plan

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7.2 Estimate Costs

Inputs

•Cost Management Plan

•HR Management Plan

•Scope Baseline

•Project Schedule

•Risk Register

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Expert Judgment

•Analogous

•Parametric

•Bottom Up

•3-point

•Reserve Analysis

•Cost Of Quality

•Project Management Software

•Vendor Bid Analysis

•Group Decision Making

Outputs

•Activity Cost Estimates

•Basis Of Estimates

•Project Documents Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

It is the process of estimating (approximation) the financial value

needed to ensure the project activities are completed.

Cost estimates also provide the details on alternate options such as

make versus buy, buy versus lease, shared resources and so on.

Cost estimates are generally represented in the format of staff hours,

staff days and/or staff years instead of currencies due to the currency

fluctuations.

These estimates evolve over a period from the range of, -25% to

+75%(Rough order of magnitude ROM) to -5% to +10%(definitive

estimate).

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Human Resource Management Plan

HR Management Plan defines allocation, engagement and finally release of resources for project. This plan may include following:

Roles and Responsibilities

Role – function of job role has to be

defined with clear boundaries.

Authority – In the function of job, Authority resource exercises

Responsibility – nature of responsibilities resource perform

Competency – level of skill the resource

has. For any gaps identified, proactive planning to up skill competency.

Project Organization Charts

Each staff member of the project has to report their duties to the respective function or authority for the defined

project. This being represented in graphical tree structure is known as Project organization chart. Example: Imagine a Satellite Development Project with Thousands of Staff.

As a component of HR Management plan, it has to be defined when and how the resources will be allocated, engaged for how long and when will be finally released. Such plan may include:

Staff Acquisition

Resource Calendars – use visual tools Resource Histogram

Staff Release Plan – Smooth transition of

resources during the release to another project increases Morale of the staff

Training Needs

Recognition and Rewards – Key aspect of motivating staff. Definite plan should exist to

ensure the performing resources achieve their project objectives.

Staffing Management Plan

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Cost of quality includes all costs incurred over the life of product by investment in preventing non-conformance to requirements, appraising the product or service for

conformance to requirements, and failing to meet requirements.

Failure to meet requirements is known as Rework. Any rework has to be completely

eliminated with refinements in the process or avoided in the first place.

Failure costs are also called Cost of Poor Quality and are categorized into:

Internally found by Staff

Externally found by Customers

Cost of Quality - COQ

Cost of Conformance

•Prevention Costs

(build Quality product)

•Training

•Document Processes

•Equipment

•Time to do it right

•Appraisal Costs

(assess the Quality)

•Testing

•Destructive testing loss

•Inspections

Cost of Non-Conformance

•Internal Failure Cost

•Rework

•Scrap

•External Failure Cost

•Liabilities

•Warranty Work

•Lost Business

Mo

ne

y S

pe

nt

to A

vo

id F

ailu

res

Mo

ne

y S

pe

nt

du

rin

g &

aft

er

du

e t

o F

ailu

res

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For Large Projects, it is very fruitful to

have bidding mechanisms wherein

the qualified vendors engage and

define the cost of such a work at

hand.

This largely saves huge upfront

estimation costs for performing

organization and also gain

advantage of multiple competing

bids.

At the same time, wherever the

performing organization intends to

have better control on the overall

cost incurred, the organization

performs due diligence to award

such work to contractors. This may

result in additional overhead of

detailing project with due-diligence.

Vendor Bid Analysis

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Arriving at Cost Estimates should also detail

the approach and the mechanisms

adopted to arrive at the cost in a clear and

complete manner.

Based on the nature of the projects, the

basis of estimation for such industry or

function may completely alter.

Such cost estimates may include the :

Basis of estimation

Risks & Assumptions

Constraints & Boundaries

Range of possible estimates

Indication of confidence level of the

final estimate

Basis of Estimates

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7.3 Determine Budget

Inputs

•Cost Management Plan

•Scope Baseline

•Activity Cost Estimate

•Basis Of Estimate

•Project Schedule

•Resource Calendars

•Risk Register

•Agreements

•Organizational Process Assets

Tools & Techniques

•Cost Aggregation

•Reserve Analysis

•Expert Judgment

•Historical Relationships

•Funding Limit Reconciliation

Outputs

•Cost Baseline

•Project Funding Requirements

•Project Documents Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

It is the process of aggregating the estimated costs and to

establish an authorized budget for the project + define the

cost baseline.

Key benefit is a ready cost baseline reference for monitoring

and controlling the costs on the project duration.

Cost baseline includes all the funds required to execute the

project till completion. Management reserves are beyond the

Cost baseline and are not part of the funds for execution of

the project.

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Cost Aggregation

Costs are aggregated (summed up) at above levels. Usually the costs are attached to each work package, which are then aggregated at Control Accounts and then aggregated at the entire Project level.

Total Project Costs can be arrived using the historical relationships of using the parametric or analogous estimates.

This depends on the actual costs of the previous projects. Helpful in the early phase

of the project when limited information is known.

Historical Relationships

Expenditure of funds should be reconciled based on the funding limits on the commitment of

funds for the project by the customer or the organization.

This may necessitate and/or trigger changes to the schedule and cost expenditure patterns as the project would progress.

In order to ensure the expenditures are inline with the funds by necessitating constraint dates into

project schedule.

As the project progresses, all expenditures are supposed to be accounted and readjusted as per the reconciliation of the project expenses in to project schedule.

Funding Limit Reconciliation

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Project Budget Let us take a sample example to understand what and how Project Budgets are arrived at and what are the Funding Limits.

For a New Wooden House Construction Project in an Amazon forest of 4 Months.

Vendor is charging the Project USD 3,50,000. Based on the agreement, Vendor has agreed to start work immediately upon 10% received funds in 1st Month, 30% in 2nd Month and rest in subsequent 2 months.

Project staff working on the Project would need an upfront USD 45,000 for their travel expenditure. During the 3rd Month staff needs USD 20,000 for the final travel settlements.

Project also needs Machines which is estimated to be USD 30,000 in 1st Month and

thereafter every month USD 10,000 till Project completion.

What will be Total Project Budget and how is it reconciled for every month? Also draw an S-Curve for the Project.

Category Sum 1st Month 2nd Month 3rd Month 4th Month

Vendor 350000 10% 30% 30% 30%

Staff Travel 45000 20000

Machines 30000 10000 10000 10000

Total Budget

Cumulative Cost

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Category Sum 1st Month 2nd Month 3rd Month 4th Month

Vendor 350000 35000 105000 105000 105000

Staff Travel 65000 45000 - 20000 -

Machines 60000 30000 10000 10000 10000

Total Budget 475000 110000 115000 135000 115000

Cumulative Cost 110000 225000 360000 475000

0

110000

225000

360000

475000

0

100000

200000

300000

400000

500000

M1 M2 M3 M4

Cu

mu

lati

ve C

ost

of

Pro

ject

Cost Baseline (S-Curve)

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Cost baseline is the approved time-

phased project budget, excluding any

management reserves.

In order to use the management

reserve, the change control board has

to approve the required funds.

Project Funding Requirements are

periodic funding requirements derived

from the cost baseline.

Activity

Cost

Estimates

Work

Package

Cost

Estimates

Control

Accounts

Cost

Baseline

Project

Budget

Tota

l Am

ou

nt

Time

Cu

mu

lati

ve V

alu

es

Management Reserve

Project Budget

expenditures

Cost Baseline (S-Curve)

Funding Requirements

Cost Baseline(S-Curve) Project Funding Requirements

Activity Contingency

Reserve

Contingency Reserve

Management Reserve

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7.4 Control Costs

Inputs

•Project Management Plan

•Project Funding Requirements

•Work Performance Data

•Organizational Process Assets

Tools & Techniques

•Earned Value Management

•Forecasting

•TCPI (To-complete Performance Index)

•Performance Reviews

•Project Management Software

•Reserve Analysis

Outputs

•Work Performance Information

•Cost Forecasts

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Organizational Process Assets Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is the process of managing project cost and controlling

project costs to ensure, ―project is delivered‖ with in planned

cost baseline.

Key benefit includes the project cost is well within the

planned cost baseline and minimize the project risks.

Using ―control costs‖ the project can be put back in to track

by corrective and preventive actions.

Effective management of Control costs is performed by

ensuring the Projects Costs are controlled with Control

Accounts and approved by the Authorized Personnel along

with the reviews.

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Earned Value Management

Technique is a Performance

Measurement and Project health

status check technique with visual &

statistical representation on Scope,

Cost, Schedule, Resources.

EVM combines an integrated view of

both Scope Baseline and Cost

Baseline based on which the

Performance Baseline is established.

Time

Cu

mu

lativ

e C

ost

Management Reserve

Project Budget

Planned Value(PV)

Earned Value(EV)

Present Day

Actual Cost (AC)

Estimate to

Complete(ETC)

Bu

dg

et

At

Co

mp

letio

n (

BA

C)

Est

ima

te A

t C

om

ple

tio

n (

EA

C)

Project Start

Earned Value Management

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Planned Value (PV)

The charted out planned value for the

project is referred to as the PV and is

commonly thought as Authorized

budget for the Scheduled Work.

At any given point in time, it is

supposed to be the accomplished

value which can be treated as the

baseline.

This baseline may be used to make

comparisons against the actual values

either cost or schedule.

This baseline is also referred to as the

Performance Measurement Baseline.

The total planned value of the project

is also known as BAC(Budget at

Completion), which does not include

the Management Reserve.

Earned Value (EV)

The charted out actual value for the

project at that given point in time is

known as EV and is commonly thought

as the Actual Work Performed

measured against the Authorized

Budget value.

EV actually shows the Project

percentage completion.

EV is the real time performance data of

the project and based on which

suitable measures may be adopted

incase of deviations of the project

parameters.

Earned Value Management

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Actual Cost (AC)

AC is the total cost incurred on project till date.

Based on past performance, it is possible to estimate future predicted

values and arrive at the final actual cost = EAC (Estimate at

Completion) giving insights to project management team for

appropriate funding on future course of project.

AC is the realized cost for the work performed on the project till that

point in time.

Schedule Variance (SV) = EV - PV

SV is the difference between the Earned value and the Planned value.

SV helps to identify whether the project is ahead on the schedule or

behind the schedule in comparison to PV.

Cost Variance (CV) = EV - AC

CV is the difference between the Earned value and the Actual cost.

CV helps to identify whether project is cost overrun or under control.

Variance at Completion (VAC) = BAC – EAC

Estimated variance cost to completion of the project.

Earned Value Management

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Schedule Performance Index (SPI) = EV / PV

SPI is measure of schedule efficiency of project.

SPI Value = 1

Project is trending as per expectation and

expected to finish as planned.

SPI Value > 1 (Means Better)

Project is ahead of schedule and all work

planned has been achieved along with some

future work accomplished earlier.

SPI Value < 1

Project is behind schedule and not all work

planned has been achieved as of date and

need to recover lost time.

Earned Value Management

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Cost Performance Index (CPI) = EV / AC

CPI is the measure of cost efficiency of project.

CPI Value = 1

Project is spending as per expectation and

expected to meet cost objectives as planned.

CPI Value > 1 ( Means Better)

Project is spent less than planned and is efficient

in terms of cost expended.

CPI Value < 1

Project is spent more than planned and needs

to control cost expenditure to be back on track

for cost objectives.

Estimate To Complete (ETC) = EAC – AC

It is the expected cost to complete remaining work.

Earned Value Management

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Project Metrics in EVM

For any project these all constitute a part of the

metrics which the project management team may be

interested to act and report on frequently.

PV, EV, AC, SV, CV, SPI, CPI, ETC, BAC, EAC and so on..

Forecasting

Estimating BAC & EAC are very helpful for the

management to get an overview of the funds

required for the project to start and bring it to closure.

Based on the AC, the EAC may vary significantly than

the planned BAC. This helps the project management

team to regularly monitor and ensure the values are

continuously monitored for better control during the

entire project duration based on the forecasts.

Earned Value Management

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EAC may be forecasted in various

manners.

Simplest Way: EAC = AC + Bottom up

of ETC

EAC forecast for ETC work performed

at budgeted rate:

EAC = AC + (BAC – EV)

EAC forecast for ETC work performed

at present CPI:

EAC = BAC / CPI

EAC forecast for ETC work considering

both SPI & CPI:

EAC = AC + [(BAC – EV) / (CPI × SPI)]

In the last forecast method both SPI &

CPI are considered at the ratio based

on the project managers confidence

level of future SPI & CPI levels.

To-Complete Performance Index (TCPI)

TCPI is the cost performance index

which is to be achieved on the

remaining work to meet the specified

management goal like BAC or EAC.

TCPI = (BAC – EV) / (BAC – AC) or (EAC

– AC)

TCPI = Work Remaining / Funds Left

Over

Earned Value Management

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Cost Forecast is the new cost estimated at the completion of the project

while the project is in progress.

The new cost is a result of the cost variances(CV) to the original planned

value(PV) and is also represented as EAC(Estimate at Completion) value.

Cost Variance may be a result of various actions which has caused either

the cost to fluctuate on the upper or lower side of the planned value.

Cost Forecasts

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Chapter 7 - Debrief

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THIS BRINGS TO “COST MANAGEMENT” COMPLETION.

From what we have understood so far is:

4 Cost Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 7

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Quality Management

Chapter 8

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Chapter 8

Objectives

Understand the different Quality

Management Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Quality Management aspects required to maintain the desired customer quality.

Driving the project towards the desired outcome while maintaining quality is one of the key to making the project successful!

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Project Quality Management includes processes to

ensure the project deliverables are in conformance

to the project requirements.

Ensuring the Quality and Grade of the deliverables is

understood by the team is essential and needs to be

detailed in Plan Quality Management.

Quality of the deliverables in the project is the

conformance to the Requirements, whereas the

Grade of the deliverables is the conformance to the

technical characteristics of the deliverables.

Similarly, project deliverables as per needs of the

quality conformance need to be detailed with

Precision and Accuracy.

Precision: measure of exactness. Ex: Remember a Unit on Scale Precision.

Accuracy: measure of correctness. Ex: Remember Dart Board Accuracy of Target.

Knowledge Area: Quality Management

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There are 3 Quality Management processes, namely:

1. Plan Quality Management

Planning Project Policies, Processes, Procedures which

will enable and ensure the Project deliverables are in

compliance with the quality requirements.

2. Perform Quality Assurance

Performing Quality Audits to ensure the right set of

Policies, Processes, Procedures are used to deliver the

desired quality and grade of deliverables with defined

precision and accuracy. Quality Control Measurements

can be applied to achieve the same.

3. Control Quality

Process of managing the project quality in the defined

tolerance levels, control limits and ranges during the

project execution.

Knowledge Area: Quality Management

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Some important quality terms used often in different

quality approaches.

Customer Satisfaction

Ensuring the project requirements are met

and at the same time ensuring the project

outcome is usable by the end user or the

client

Prevention over Inspection

Quality should be planned always to be

proactive, the cost of prevention of defects

is much lesser than the cost of inspection.

Continuous Improvement

There are multiple Continuous Quality

Improvement initiatives possible and

depends on the project need to engage

the level of quality desired & may follow

one of these approaches:

Plan-Do-Check-Act (PDCA)

Total Quality Management (TQM)

Six Sigma

Lean Sigma

Kaizen(Kai-to alter; Zen-to make better)

Continuous Process Improvements (CPI) in any

project may be taken up with specially defined

approaches as in:

Organizational Project Management

Maturity Model (OPM3)

Capability Maturity Model Integrated

(CMMI)

Management Responsibility

Achieving Quality requires Management

participation and support. Management

has to take responsibility to ensure the

quality is given due diligence without which

the quality may cut corners across the

project duration due to tradeoffs for

customer & market priorities or any other.

International Organization for Standardization

(ISO)

ISO is an International standards setting

voluntary body which develops, publishes

and administers the International Standards.

Quality Management basic approach

outlined by PMBoK® is inline with the ISO.

Knowledge Area: Quality Management

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There are 3 Quality Approaches, namely:

Knowledge Area: Quality Management

•Proposed that organizations can increase their quality and reduce costs by CPI (Continuous Process Improvements) and by thinking the entire evolution as a manufacturing system instead of standalone unconnected pieces

W. Edwards Deming

•Proposed the application of Pareto’s(80-20) Principle to Quality as 80% of the quality issues are due to the 20% of the causes.

•Also, developed Juran’s Trilogy:

•Quality Planning

•Quality Control

•Quality Improvement

Joseph. M. Juran

•Proposed the DiRFT (Doing it Right First Time) for the Quality Crisis

•Proposed 4 Major Principles of Quality

•Quality is Conformance to Requirements

•System of Quality is Prevention

•Performance Standard = Zero Defects

•Measurement of Quality = Price of Non-Conformance

Philip. B. Crosby

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8.1 Plan Quality Management

Inputs

•Project Management Plan

•Stakeholder Register

•Risk Register

•Requirements Documentation

•Organizational Process Assets

Tools & Techniques

•Cost Benefit Analysis

•Cost Of Quality

•Seven Basic Quality Tools

•Benchmarking

•Design Of Experiments

•Statistical Sampling

•Additional Quality Planning Tools

•Meetings

Outputs

•Quality Management Plan

•Process Improvement Plan

•Quality Metrics

•Quality Checklists

•Project Documents Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

It is the process to establish the Quality Management Plan

based on which the Project Quality will be planned,

managed and controlled on the relevant quality

requirements and standards.

This also helps to document approaches which will guide on

how to ensure compliance to those requirements and

standards.

Provides opportunity to establish mechanisms to setup

process improvements and continuous refinement

procedures, define metrics and quality checklists.

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Primary benefits of meeting quality

requirements include less rework,

higher productivity, lower costs,

increased stakeholder satisfaction,

and increased profitability.

A cost-benefit analysis for each

quality activity compares the cost of

the quality step to the expected

benefit.

Cost Benefit Ratio(CBR)

CBR = 𝐶𝑜𝑠𝑡

𝐵𝑒𝑛𝑒𝑓𝑖𝑡

Benefit Cost Ratio(BCR)

BCR = 𝐵𝑒𝑛𝑓𝑖𝑡

𝐶𝑜𝑠𝑡

How to use CBR & BCR ratios to pick

Projects?

Projects are compared for the

better benefit amongst a group of

Projects. The Project with highest

BCR wins or the Project with lowest

CBR wins.

For any given project, always pick

the projects with benefit or at least

the ones which does not incur loss:

BCR Greater than or Equal to 1.0.

or

CBR Lower than or Equal to 1.0

Cost Benefit Analysis

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Also known as 7QC Tools for 7

Quality Control Tools.

Applied to plan Quality & solve the

Quality Improvement related issues

on the project.

1. Cause and Effect Diagrams

2. Flowcharts

3. Check Sheets

4. Pareto Diagrams

5. Histograms

6. Control Charts

7. Scatter Diagrams

1. Cause and Effect Diagrams

(Also known as Ishikawa’s Fish Bone)

The problem statement is kept at the

head of the fish and traced backwards

to identify the root cause and possible

actions.

Identification of the root cause

happens based on the repeat question

―why‖ until the root cause of the

problem is found.

2. Flowcharts (Process Maps)

Flow charts define the end to end flow

of the steps and branching possibilities

that exist for a process.

Cost estimating is obtained by using

the workflow branching logic and

associated estimated monetary value

for the conformance and non-

conformance work.

Seven Basic Quality Tools

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Low Website Traffic

Socially networked?

Easy user navigation?

Appealing Design & Aesthetics ?

Works on Smart devices?

Works on Tabs? Not much content?

Good Quality of Content?

Is website playful to keep user long on website?

Is content and experience user friendly & engaging?

Enough PR Engage?

Traditional Campaigns?

Social Campaigns?

Cause and Effect Diagram (Ishikawa Fishbone Diagram)

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Start

End

Production Setup

Production

Compliance

Kick start

Production

decision

Summation

Re-Planning

Error Type Count

(frequency) Weight Score

Design Error IIIII III 12 8 * 12 = 96

Development

Error IIIII IIIII IIIII 6 15 * 6 = 90

Quality Error IIIII IIIII IIIII

IIIII IIII 3 24 * 3 = 72

Integration

Error III 15 3 * 15 = 45

Total Score 96+90+72+45 =

303

Are used to organize the facts in a manner

that will facilitate effective collection of

useful data about a potential quality

problem.

They are useful for gathering data

attributes while performing inspections to

identify defects.

Flowcharts Check Sheets

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Pareto Diagrams are visual representation of the entire set of problems which are categorized. Out of the 100% problems, consider to focus efforts to fix on the 80% on the issues.

Focusing on 80% of problems with a small 20% of root causes will yield major improvements.

Pareto Diagrams are based on the Pareto’s law, accordingly to which a relatively small number of causes will typically produce a majority of the problems or the defects identified.

Based on this principle, it is observed that 80% of the problems are due to 20% of the causes.

Analysis Deficit Design GapsDevelopment

Bugs

Architectural

FlawsQuality Gaps

Integration

MissOthers

Frequency 26 21 19 11 8 7 8

Cumulative 26% 47% 66% 77% 85% 92% 100%

0%

25%

50%

75%

100%

0

5

10

15

20

25

30

% o

f d

efe

cts

Ra

te o

f D

efe

cts

Pareto Diagram (80-20) Focus Efforts on Top 80% Topics

Pareto Diagrams

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This tool illustrates the common

causes in any process with a number

and relative heights of the bar.

Histogram does not relate with the

causes based on the time phased

manner. The causes may happen

over any duration of time and is not

represented in histogram.

Is a graphical representation of any

particular nature of element with its

wide spread distribution of frequency

or occurrence intervals and having

the Central tendency.

The Histogram may be ordered or

unordered. Below representation is an

ordered histogram which represents

the central tendency and

subsequent dispersed distribution.

Integration Miss Quality GapsDevelopment

BugsAnalysis Deficit Design Gaps

Architectural

FlawsOthers

Frequency 7 8 19 26 21 11 8

0

5

10

15

20

25

30

Ra

te o

f D

efe

cts

Histogram (Causes for sub standard Product Quality)

Histograms

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Any deviations beyond UCL & LCL should be acted upon to ensure the process is brought back to stableness.

Process is considered out of control when:

A data point is beyond the Upper or Lower Control Limit, however it is well within the

Upper or Lower Specification Limits

7 consecutive points above or below the mean of the Chart

Control charts provide a visual representation for review of the goal attainment performance and the deviations of any process to the defined path being stable or not.

Upper Control Limits and Lower Control

Limits define the process stableness. Any actual values within the UCL & LCL provides a ready answer that the process has been stable and inline with the expectations.

Control Charts

0

20

40

60

80

100

120

140

160

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

Actual ValueUCL Specification LimitUCL(Upper Control Limit)Planned ValueLCL(Lower Control Limit)LCL Specification Limit

Customer Defined Specifications

Process Owner Defined Limits

3

3

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Scatter Plot (Negative & Positive Co-relation)

Negative Correlation - Data trends downward

Positive Correlation - Data trends Upward

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Scatter Diagrams (Co-relation Charts)

Negative Correlation Positive Correlation No Correlation

Scatter Diagram or Scatter Plot is a graphical representation that shows the relationship

also known as co-relation between data points of variables. This tools aids to study and

identify possible relationship between changes observed amongst variables.

We also come across basic terms here such as:

Negative Co-relation (data points indicating the negative trend)

Positive Co-relation (data points indicating the positive trend)

No Co-relation (data points distributed across with no clear trend visible)

Best Fit Line (diagonal line with data points equally distributed on both sides)

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This involves comparing the planned

processes to the already existing/used

processes which have been considered

best practiced processes in any similar

relevant project within or outside the

organization.

This type of benchmarking ensures that the

project processes adopt the best in line

and best in industry practices thereby

naturally increase the likely hood of

becoming the ideally run project success.

Benchmarking

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Design of Experiments(DOE)

DOE is conducted to optimize the values and parameters of any production process or product being developed.

DOE is based on the statistical framework and ensures to make multiple variable

changes at once to identify the best possible combinations to achieve the desired results.

This drastically helps to conduct the experiments keeping these conditions in mind and target the set or defined cost parameter while achieving the product

requirements.

Example:

Imagine a jet engine, thousands of variables act in tandem to produce the desired outcome. Ensuring the required output is

achieved at optimal use of Jet Fuel is one of the key to high performance engines which is a possibility of design of experiments.

This can be soft tweaked and not hard tweaked being considerate of costs involved in experimentation.

Statistical sampling involves picking up a random sample from a large population group of items produced to ensure the Quality is being well maintained.

Example:

A leading beverages company uses this technique to ensure the quality of their beverages are in line to the customer expectations.

Picking a random sample out of a large produced numbers for a quality check from every lot ensures the lot produced is of the

desired quality.

Statistical Sampling

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Two type of Sampling

Attribute Sampling

Attribute Samples (Yes/No)

(Very Good, Good, Neutral,

Bad) type of answers for a

defined sample set in question for testing.

Variable Sampling

Variable Samples (0.1, 0.5,

0.8, 0.95, 0.24) type of

variables for a sample set

which we are testing.

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Other quality planning tools are used to define quality requirements and to plan effective quality.

Brainstorming

Used to generate ideas in group discussion mode.

Force Field Analysis (FFA) – Decision Making

Forces acting for and against

Change on a Plan.

Nominal Group Technique

Allows the idea to be brainstormed in a small group before being reviewed by a larger group.

Quality management and control tools

Can be used to link and sequence the quality activities.

Additional Quality Planning Tools Driving & Restraining Forces in equilibrium

Equilibrium

Res

trai

nin

g Fo

rce

s D

rivi

ng

Forc

es

Pla

n o

r P

rop

osa

l or

Dec

isio

n

How FFA Tool is used in practice for Decisions?

1. Keep Plan or Proposal (Change) or Decision to be arrived in

Equilibrium.

2. Look at the Forces acting FOR. Identify and evaluate them.

3. Look at the Forces acting AGAINST. Identify and evaluate them.

4. Assign a rank for both sides of the Force(say 1-lower to 5- higher)

5. Finally Sum them up and make the decision based on the highest

rank side.

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Quality Management Plan

Quality Management Plans define how the Organizational Quality Policies and Project quality objectives will be implanted and achieved.

Key Benefit of this process is to ensure to

meet project value proposition and reduce costs and rework patterns.

Process Improvement Plans identify the activities and process in the project management through which the value can be enhanced.

Areas which may be considered for such:

Process Boundaries

Process Configuration

Process Metrics

Targets for Improved Performance

Process Improvement Plan

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Quality Metrics

Quality Metrics are used to measure the outputs of the processes and the outcomes of the procedures followed.

Measuring quality with metrics provide quantitative format to ensure suitable

actions, controls or further measures adopted or tweaked to achieve desired state of outcome.

Usually the process are defined in a range of tolerance and any deviations beyond the tolerance levels are acted upon.

Quality Checklists are adopted to ensure the frequently performed tasks and procedures are followed in the precise same manner without taking any deviation and introduce errors.

Checklists are often standardized and ensured they follow the recurring protocols. In some industries, there are pre-defined checklists which are naturally adopted by every project performed in similar.

Quality Checklists

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8.2 Perform Quality Assurance

Inputs

• Quality Management Plan

• Process Improvement Plan

• Quality Metrics

• Quality Control Measurements

• Project Documents

Tools & Techniques

• Quality Management And Control Tools

• Quality Audits

• Process Analysis

Outputs

• Change Requests

• Project Management Plan Updates

• Project Document Updates

• Organization Process Asset Updates

•Integration

•Direct and Manage Project Work

•Scope

•Time

•Cost

•Quality

•Perform Quality Assurance

•Human Resource

•Acquire Project Team

•Develop Project Team

•Manage Project Team

•Communications

•Manage Communications

•Risk

•Procurement

•Conduct Procurements

•Stakeholder

•Manage Stakeholder Engagement

Executing Process Perform Quality Assurance to

provide the quality of the end

product is to the standards

defined and expected.

This process ensures audit of the

Quality requirements and the

results from the Quality control

measurements to ensure that the

appropriate quality standards

and operational definitions are

used.

Key Benefits is it helps to ensure

the quality processes are

adopted and the end product is

to the extent of desired quality.

Quality Assurance contributes to

processes and mechanisms in

place to ensure the final output

or outcome of the end product

will be a quality product with

almost certainty.

It also helps prevent the defects

in first place to ensure the end

product is of high quality.

As part of the quality assurance,

continuous process improvement

initiatives are also taken up

which naturally increase the

efficiency and effectiveness of

all processes.

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Quality control measurements can also compare the processes used to

create the measurements and validate to ensure their level of correctness.

Quality Control Measurements

Acknowledged. Source: http://www.belatrixsf.com

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Performing Quality Assurance involves the tools and

techniques from the quality planning, quality control such

as:

Affinity Diagrams - Organize Large Amounts of disorganized data for groupings

Process Decision Program Charts (PDPC) - Breaks down tasks into tree hierarchy and ensure the low level risks

and issues are identified.

Interrelationship Digraphs(ID) - Defines the relationships between complex situations to solve complexities

Tree Diagrams - Breaking into granularities helps think at finer detail.

Prioritization Matrix - Each item is given a weight to identify and focus on the items which are more

important in nature.

Activity Network Diagrams

Matrix Diagrams - Tasks are often referred with reference to a relation to each other on parameters.

Affinity diagrams

Process decision program charts

(PDPC)

Tree diagrams

Quality Management and Control Tools

Matrix diagrams

Interrelationship digraphs

Prioritization Matrix

Activity network diagrams

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Quality Audit is an independent process to ensure the quality process (which are laid in place to ensure the quality assurance, quality control) objectives as planned are materialized along with any shortfalls being identified including the conformity and compliance gaps.

Audits are also applicable not only to processes, it may be extended to policies, procedures, checklists so on.

Quality Audits are normally performed by an

independent Quality team & preferably not same quality team working on project itself.

In large organizations, an independent standalone groups exist to perform random audits and checks which also supplement to identify and share best practices from across

the projects, which is beneficial.

Quality Audits are constructive in nature and should be treated for betterment of the shortcomings than the customer finding the shortcomings.

This is performed to identify the root cause of issues, discover underlying cause.

Detailed study of process ensures the process improvements are possible by looking at the betterment of processes, eliminate the non-value add activities and so on.

This also leads to come up with the preventive actions and eliminate any constraint behaviors on certain processes.

Quality Audits Process Analysis

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8.3 Control Quality

Inputs

•Project Management Plan

•Quality Metrics

•Quality Checklists

•Work Performance Data

•Approved Change Requests

•Deliverables

•Project Documents

•Organizational Process Assets

Tools & Techniques

•Seven Basic Quality Tools

•Statistical Sampling

•Inspection

•Approved Change Requests Review

Outputs

•Quality Control Measurements

•Validated Changes

•Verified Deliverables

•Work Performance Information

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Organizational Process Assets Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is the process of controlling the quality of the end

deliverables across the project.

Quality planned may be monitored across monitoring

and controlling group to identify deviations from planned

quality assurance processes & control checks.

Key benefit includes the project quality is maintained to

the expected grade of quality. Eliminate and or minimize

the impact of bad processes along with validation of the

project deliverables conformance to the stakeholders or

customer requirements.

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Chapter 8 - Debrief

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THIS BRINGS TO “QUALITY MANAGEMENT” COMPLETION.

From what we have understood so far is:

3 Quality Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 8

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Human Resource

Management

Chapter 9

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Chapter 9

Objectives

Understand the different Human Resource

Management Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Human Resource Management aspects required to ensure the desired Project work is accomplished.

Driving the project towards the desired outcome while getting the project activities are completed to make the project successful!

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HR Management includes the processes to

ensure the required resources are planned,

acquired, evolved and managed to deliver

the project deliverables inline with the

objectives.

Ensuring the resources(project staff) are

included in the early engagement of the

project would increase their project

commitment.

Project Management team is responsible

for all leadership activities such as Initiating,

Planning, Executing, Monitoring, Controlling

and Closing.

Knowledge Area: Human Resource Management

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There are 4 HR Management processes,

namely:

1. Plan HR Management

Identification of the HR Personnel

required to be on the project,

Engaging them on the project and

finally release them once their role has

ended in project

2. Acquire Project Team

Confirmation of required resource

availability for the project to be

executed

3. Develop Project Team

Ensuring the project staff are capable

to deliver the project by up-skilling the

staff, training, coaching and ensuring

the effective communication and

motivation across the project staff to

achieve the project objectives.

4. Manage Project Team

Continuous engagement of the staff to

ensure the team understands their

importance to the project, how their

work has impact on the project by

providing them continuous feedback,

resolve any conflicts and

recognize/reward accordingly to keep

the upbeat in the team.

Knowledge Area: Human Resource Management

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9.1 Plan Human Resource Management

Inputs

• Project Management Plan

• Activity Resource Requirements

• Enterprise Environmental Factors

• Organizational Process Assets

Tools & Techniques

• Organization Charts and Positions Descriptions

• Networking

• Organization Theory

• Expert Judgment

• Meetings

Outputs

• HR Management Plan

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Process of identifying and documenting the project roles, responsibilities, required skills, reporting relationships, and creating a staffing management plan.

Benefits include the establishment of Project roles and responsibilities, organization charts, staffing management

plan(includes the acquisition, management, transition and release of resources), identification of training needs, team building strategies, plan for recognition and rewards.

Effective HR planning ensures the project critical resources are planned well and utilized in manner which is collaborative to other projects in the organization and minimized competing for the

same resources.

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Most of the organization charts are intended to

provide the complete ambiguity less understanding

of the project roles and responsibilities at various

levels such as at high level(graphical tree structure)

and low level which includes the text description

along with a mix and match of organization.

Hierarchical Type Charts

These charts typically represent information in a

graphical manner with a top down approach with

positions and departments.

OBS (Organization Breakdown Structure) defines the

Organizational units, project teams structured at

very high level.

RBS (Resource Breakdown Structure) defines the

resources in the category and resource type. Usually

RBS can be considered as a sub-component of OBS,

however, it can exist as standalone to the project as

well.

RBS benefits the project management team with

the aid of connecting these resources cost to the

tracking of project costs.

Matrix Based Charts

A RAM (Responsibility Assignment Matrix) depicts

how the resources or groups are assigned to the

work packages.

A common example of RAM is RACI Chart. RACI

(Responsible, Accountable, Consult, Inform)

RACI chart is used to define clear demarcations of

the behaviors expected from resources for each

individual activity. This is especially helpful when the

teams are internally and externally split working

organizations.

Text Oriented Formats. Project Management Team has to ensure the clear and detailed descriptions of the individual roles and responsibilities to be performed and publish them for ready references.

Organization Charts & Position Descriptions

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Networking is the way people connect with each other and evolve relationships which play a crucial importance in project management team dynamics to understand the underlying political and interpersonal factors.

Few of the most popular networking activities include lunch meetings, coffee breaks, events, formal and informal gatherings, meetings, social networking connections, friend of friend, email correspondence and so on.

In the essence of project management, networking helps build that interpersonal connections to influence the outcomes of the work being accomplished as part of the project.

Henry Ford (who is he?) once implemented an innovative design by modifying factory production and creating an assembly line. This setup is still being used by Ford to make it easier for company to Produce effectively and efficiently across the Ford Motor.

Behavioral information about the organizational units, teams and people in the organization can help improve the effectiveness of the HR Management Plan.

Identification of the recurring patterns and

themes in the organization supplement readily project management plan to develop efficiencies by adopting patterns of response by individual groups, teams and units.

Networking Organization Theory

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Maslow’s

Hierarchy of Needs

Theory

Starts from Lower level of needs to progress gradually upwards to

Highest level of needs. Employees are at the peak of motivation at the

tip of the pyramid.

Physiological → Safety → Social → Self-Esteem → Self-Actualization

Herzberg’s

Motivation & Hygiene

Theory

Motivation comes from: Intrinsic Conditions of the Job such as Professional & Personal Growth, Achievement, Recognition.

Hygiene factors which are externally motivating beyond the job itself such as Compensation, Company Policies, Supervisor Behavior & Closeness to Employee, Peer Behavior & Team Bonding

Victor Vroom’s

Expectancy

Theory

Employees are motivated when they understand that their superior job performance will yield to their superior organizational rewards.

McGregor’s

X & Y

Theory

X Theory suggests people are lazy, don’t want to work and needs to be micro managed

Y Theory suggests people are self motivated and need not be managed

Z Theory (derivative of Y) suggests people are at peak motivation with a lifetime career and a happy work-life balance with overall well being of the employee

McClelland’s

Need for

Achievement

Theory

Low Need for Achievement

People pick the easy tasks to minimize the risk of failure OR

People pick the extremely difficult tasks to fail themselves but avoid embarrassment

High Need for Achievement

People pick the moderately challenging tasks to ensure they are challenged but they could accomplish and well within their reach

Self-Actualization

Self-Esteem

Social

Safety

Physiological

Org

an

iza

tion

al

The

orie

s to

Mo

tiva

tion

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9.2 Acquire Project Team

Inputs

• Human Resources Management Plan

• Enterprise Environmental Factors

• Organizational Process Assets

Tools & Techniques

• Pre-assignment

• Negotiation

• Acquisition

• Virtual Teams

• Multi Criteria Decision Analysis

Outputs

• Project Staff Assignments

• Resource Calendars

• Project Management Plan Updates

•Integration

•Direct and Manage Project Work

•Scope

•Time

•Cost

•Quality

•Perform Quality Assurance

•Human Resource

•Acquire Project Team

•Develop Project Team

•Manage Project Team

•Communications

•Manage Communications

•Risk

•Procurement

•Conduct Procurements

•Stakeholder

•Manage Stakeholder Engagement

Executing Process Ensuring the Project Team Members

are allocated to work on the

project for the project duration is

the main objective of the Acquire

Project Team.

Key Benefits include we have a

ready team which is

selected(based on skill, cost,

availability…) for the project team

to accomplish the work.

Team members Selection is at times

an organizational decision to hire

from a subcontractor pool or from

a different business unit. Hence it

may not be always in the hands of

project team to select team

members.

In all cases the project

management team is responsible

for acquiring the resources and

engaging them on the project

work.

Non availability of the intended

resources for the project work may

need to undergo various options,

like replacement, alternate

solutions, scheduling change and in

extreme situations project being

halted or cancelled permanently.

Project Management team is

responsible to bring out such risks

and communicate to the

stakeholders appropriately.

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Pre-Assignment

In some cases, the project staff are pre-selected for a particular purpose of the project inception. These staff are Pre-Assigned due to their special skills or knowledge about the project upfront.

Allocating key resources at the Project beginning stage ensures Project moves at a good rate. Multitasking by key resources is quite common.

Staff allocation on project is one of the critical activity a project management team performs. Allocation of right set of resources for the job ensures the work is efficiently and effectively done in quality manner.

In order to ensure the right set of resources, project management team often negotiates with functional managers, procurement team, vendors, contractors, suppliers.

Allocation of scarce resources who are highly skilled is always a negotiation between the project manager and functional manager.

Negotiation

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Acquisition

Wherever the work cannot be accomplished with internal resources, external parties are engaged to provide these resources for completion of work.

Bringing variety of roles of professionals

working on the project ensures it is taken care for delivery of final product.

We need everyone. Not just SME’s alone.

Teams often comprise of people who are not directly working on the job location and they may be working from elsewhere to accomplish the project work.

Indeed the advancement in technology has ensured the major portions of work is being

delivered through virtual remote teams or locations.

Though Virtual Team concept provides multiple benefits in terms of cost, acquisition of specialized resources and access to quantity of resources.

Downsides being cultural differences, isolated team not understanding requirements, missing natural cohesiveness in the team. And intensive communications overhead.

Virtual Teams

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9.3 Develop Project Team

Inputs

•HR Management Plan

•Project Staff Assignments

•Resource Calendars

Tools & Techniques

•Interpersonal Skills

•Training

•Team Building Activities

•Ground Rules

•Colocation

•Recognition And Rewards

•Personnel Assessment Tools

Outputs

•Team Performance Assessments

•Enterprise Environmental Factors Updates

•Integration

•Direct and Manage Project Work

•Scope

•Time

•Cost

•Quality

•Perform Quality Assurance

•Human Resource

•Acquire Project Team

•Develop Project Team

•Manage Project Team

•Communications

•Manage Communications

•Risk

•Procurement

•Conduct Procurements

•Stakeholder

•Manage Stakeholder Engagement

Executing Process Develop Project Team ensures that the performing project team is improved in terms of their capabilities, skills, knowledge and are motivated to perform at their peak levels.

Key Benefit of this process is it provides a motivated team staff to deliver project objectives inline with the expectations. This process

also reduces the staff turnover rate.

Fostering team work, Rewards and Recognition, Providing challenges and Opportunities are few of the key HR activities a project manager may need to perform to ensure the team is performing well.

Open communication, Building trust and transparency, managing conflicts in a constructive manner are few actions project manager can perform to ensure the high performance of the team.

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Resource Calendars indicates the availability of the

resources(HR, Material, Equipment) from when to when and

whether they are available for the project duration or activity

duration, including the availability in various geographical

location of the resource.

Resource Calendars aid to achieve further reliability in the

estimation since it is based on the understanding of the

resource availability, schedule constraints, time zone, work

hours, vacation, local holidays, other commitments and so on.

Additionally, in case of contracted resources, these resource

calendars may include the special pricing for any off peak

periods, which project manager may want to exploit.

Similarly, if there are resource groups, whether the quantity and

availability of resources expected is active on those particular

dates for execution. Resource preparedness levels and so on

can be further defined in resource calendars.

Resource Calendars

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Project Manager’s Interpersonal skills are very helpful to be applied across the course of the project to gain the desired outcomes from conversations and engagements with team.

Leadership

Project Manager may adopt different leadership hats depending on the situation/need.

Authoritarian (Close Supervision)

Paternalistic (Caretaker)

Democratic (Shared Decision Making)

Laissez-Faire (Delegate & Wash Hands) – Let them do

Transactional (Rewards & Punishments)

Transformational (Transform Followers Thinking)

The most important aspect which Project Manager should ensure is to showcase the vision of the project and inspire team to deliver / work towards it.

Influencing

Project manager is supposed to exert influence over the topic of interests and resources to achieve project objectives. How, when, Who, Why to influence depends.

Decision Making

Project Manager has to make critical decisions at various intersections of the project and how effectively these decisions are made and based on what assumptions or data decides on the decisions evolved.

Interpersonal Skills

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Interpersonal Skills

These are the behavioral aspects of how a team member interacts with

another or in a group dynamic. Interaction is at various levels including

communication, influencing, motivating, articulation and conflict resolution.

Having team members with superior interpersonal skills often results in

improved team bonding, cohesiveness and discovery of undiscovered work

tasks and objectives of the project.

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Team members supposed to perform the project activities should be

capable and skilled to ensure the proper and quality aspect of the delivery.

In most cases, any gaps in capabilities or skills, these are planned by

organized scheduled trainings. Though in some cases these gaps are

identified in later stages and may result in ad-hoc unplanned trainings.

Trainings may be formal or informal & individual or group & internal or

external event based on project need.

Training

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Teams working from remote

locations often do not get a

chance to interact in person and

may lead to communication-

misunderstanding-conflict gaps.

In order to ensure the teams work

as cohesive group and effectively

with none of the mentioned

symptoms, many a team building

activities could be facilitated.

Activities may include team

discussions, meetings, informal

lunches, get-togethers, organized

events and or professionally run

offsite events.

Team Development may go through

Tuckman Ladder’s five stages in either direction:

Team Building Activities

•Team formation by understanding individual roles and responsibilities

1. Forming

•Team starts working on deliverables with each other, any gaps between members arise conflicts

2. Storming

•Members start to trust each other and adjust behaviors to deliver the project objectives

3. Norming

•Teams start to work collaboratively and with interdependence for smooth and effective delivery

4. Performing

•Team starts completion of work effectively & moves on to next projects, end of project

5. Adjourning

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Ground Rules

In order to ensure all team members

share the same underlying behavior or

aspects towards project delivery, there

are certain ground rules which need to

be established, communicated and

published across the teams.

These are the anticipated behaviors

and values of team members

expected during the course of the

project delivery.

Examples include the Confidentiality of

the Information Sharing, Meeting Rules,

Dress Codes, Ethical Practices…

Moving all the project responsible

teams to sit in an closer locations such

that the face to face and interactions

are more frequent than wait and

watch interactions bring additional

efficiency to deliver the objectives

known as Collocation. Also known as

Tight Matrix.

Often the global distribution of teams

and spread across geographies, it may

be impractical to ensure collocation. In

such a situation based on the critical

timeframe of the project it may be

easier to have them collocated for

shorter durations.

Also, this model may be best suited

when there is a specific need to be

met and requires specialists to sit

together in a War room to achieve a

critical end objective.

Collocation

Hey! Stop

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A war room is a meeting room for the purpose

of strategizing and deployment of action

plans/measures on the specific intervals of

project to accomplish a quick

achievement/milestone.

Entire set of individuals responsible to deliver in

this achievement / milestone are available to

each other to answer questions,

discuss outstanding issues and respond with

swift actions.

In addition, they may discuss the resources

needed such as man power, the budget, the

timeline and possible challenges to be faced

and what can be done about the pitfalls

which may occur.

To aid the entire process, valuable visual

information such as budget, time table and

project information may also be made

available as charts in the war room.

War Room

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Recognition and Rewards

People working on the project need to

be continuously recognized and

rewarded for their best work towards

accomplishment of the Project work.

Recognition and rewards should be

planned at continuous intervals and

implemented to boost the team

morale.

Recognition for their good work and

providing them new growth

opportunities, challenges are the

intangible benefits which project

manager may plan well in advance.

Rewards may be monetary and non-

monetary and this can again be

planned upfront during the planning.

These tools assist project manager to

understand the aspirations of the

project team members, their

preferences and similar aspects.

Using this information project

management team can gain most by

aligning them in line with the project

objectives.

Personnel Assessment Tools

Assess

Analyze Act

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Implementation of various team development

activities ensure the team makes effective and

efficient progress.

At the same time it is natural to see which tools

have caused the major team performance

improvements and are assessed over a period of

time.

Ensuring the team performance is at the peak

levels increase the confidence levels of delivery of

the project objectives.

High performance teams are characterized by

meeting the project objectives (scope, time, cost,

quality).

Where ever the shortfalls are identified for

achieving the peak team performance levels,

relevant actions have to be defined by the

project management team and circulated to the

actionable owners.

Team Performance Assessments

Outstanding Exceeds Meets Improve Poor

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9.4 Manage Project Team

Inputs

•HR Management Plan

•Project Staff Assignments

•Team Performance Assessments

•Issue Log

•Work Performance Reports

•Organizational Process Assets

Tools & Techniques

•Observation And Conversation

•Project Performance Appraisals

•Conflict Management

•Interpersonal Skills

Outputs

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Enterprise Environmental Factors Updates

•Organizational Process Assets Updates

•Integration

•Direct and Manage Project Work

•Scope

•Time

•Cost

•Quality

•Perform Quality Assurance

•Human Resource

•Acquire Project Team

•Develop Project Team

•Manage Project Team

•Communications

•Manage Communications

•Risk

•Procurement

•Conduct Procurements

•Stakeholder

•Manage Stakeholder Engagement

Executing Process It is the process of managing the

project team performance,

providing them required support &

feedback, and adopt suitable

team changes as required.

Key benefit of this process is that it

changes the team behavior,

manages conflict, resolve issues,

and provide performance

appraisals.

As part of the process it is evident

to provide continuous feedback for

better performance of team

members, recognize team for their

extraordinary work and keep the

momentum upbeat.

Formal Appraisals and Recognitions

for Challenging work performed

with the respective functional

managers is also critical to the

future success and performance of

the team members.

Project managers should ensure the

performance is documented and

recorded after formal discussions

with the team members

individually.

Team management involves

special skills such as Team

Leadership, Team Building, Team

Motivation, Team Communication,

Team Conflict Management and

Negotiation.

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Comparison of current work performance to the planned work performance gives

vital feedback to the forecasted work performance.

Based on the forecasted work performance, corrective and preventive actions for

the future course of action on the human resources could be planned for control.

Areas of work which may be compared include Schedule, Cost, Scope and Quality

aspects.

Work Performance Reports

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Observation and Conversation

Project Management Team has to have continuous observation of the work in progress and delivered by the team members.

In addition, to that having regular

conversations to discover the topics which may be harnessed for the benefit of the project delivery.

Project Team performance appraisals boost the team morale and increase the engagement of the team on the project.

Performance may be appraised on various factors and having positive and constructive

feedback increases the team members performance significantly.

Having team members formally appraised and providing them improvement plans ensure they adopt those and follow the course of the project in the desired manner

and behavior.

Project Performance Appraisals

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Conflicts arise due to many

reasons. Many or majority of the

conflicts in the Projects are due to

some of the key aspects of missing

elements. Such as:

New / Missing / Conflicting

Scope

On the team, major conflicts are due to the scope aspects

being not represented or

guided correctly in the

first place.

Unrealistic Schedule/

Sequencing

Many a times, the estimates become the actual plan

without being checked for the

actual reality. Also not so

correct sequencing of the activities

lead to conflicts in activities.

Project Priorities

When projects are not defined as per priorities,

it become evident that

stakeholders/project

manager/shared resources encounter

many ambiguities.

Unattainable Cost /

Mislead Procurements

Cost of activities especially

outsourced which have not been set right

expectations of performance

lead to unwanted

discussions and debates for

conflicts.

Personalities /Human

Resources

Project is a mix of team

members effort and

collaboration with each other with their own personalities based work

accomplished.

Why does Conflicts arise?

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It is natural to have

conflicts when people

work with each other,

have different view points

for the benefit of project.

How best, conflicts could

be managed and

reduced involve setting up

ground rules, effective

communication, clarity on

the project vision and best

practices adopted across

project.

Ensuring conflicts are

resolved builds trust and

engagement levels

among parties for further

collaboration +

commitment. Conflicts

may be resolved with

following techniques:

Withdraw / Avoid

•Avoiding the point of conflict ensures the conflict resolution takes least priority and it may/not actually resolve the conflict naturally over the course of period. Lose-Lose Situation.

Smooth / Accommodate

•In some cases, it may be beneficial to openly talk about the points agreed and some points which are not agreed. This builds transparency & gains others trust. At the same time, the issue itself is not addressed directly. Lose-Lose Situation.

Compromise / Reconcile

•Adjustments to the view points ensure both the parties needs are partially met and brings new comfort level for the work to proceed for desired results. However each party looses something. Lose-Lose Situation.

Conflict Management

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Force /

Direct

•Some view points are forced upon the other party to agree upon. ―Just listen to what I say‖. This is a win-lose situation.

Collaborate

/ Problem Solve

•Win-Win situation. Ensure each point of conflict is picked up and discussed in detail and why reasons so that both parties understand openly the view points and agree to the forward approach with consensus.

Conflict Management

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Chapter 9 - Debrief

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THIS BRINGS TO “HUMAN RESOURCE MANAGEMENT” COMPLETION.

From what we have understood so far is:

4 Human Resource Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 9

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Communications

Management

Chapter 10 90 % Time is spent here

by Project manager

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Chapter 10

Objectives

Understand the different Communications

Management Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Communication Management aspects required to ensure the desired information flows across the project team

and stakeholders.

Driving the project towards the desired outcome while getting the project communications across

to get the project work accomplished to make the project successful!

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It includes the processes to ensure project team and the stakeholders are

effectively engaging, interacting with the required information at right time

intervals based on which suitable actions/decisions can be taken towards

achieving project work deliverables.

Project Manager spends majority of the time in ensuring the

communications are flowing in the right manner with right information across

the project and rightly understood.

Knowledge Area: Communications Management

Talk, Listen, Understand, Ask!

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There are 3 Communications Management

processes, namely:

1. Plan Communications Management

Planning Effective Stakeholder and Team

communications by identification of the

communication needs and engaging them at the

desired levels of communication

2. Manage Communications

Managing Communications to ensure the

planned desired level of engagement and

communication is in place.

3. Control Communications

Controlling Communications across the project to

ensure the stakeholders communication

requirements are met with appropriate changes

incase of deficit communication or cut down

excess information flow.

Knowledge Area: Communications Management

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10.1 Plan Communications Management

Inputs

•Project Management Plan

•Stakeholder Register

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Communication Requirements Analysis

•Communication Technology

•Communication Models

•Communication Methods

•Meetings

Outputs

•Communications Management Plan

•Project Documents Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

This is the process of developing

an appropriate approach and

plan for communications across

the team and stakeholder

engagement with available

organizational assets.

Benefits include the identification

and approach to communicate

most effectively and efficiently

with stakeholders.

Consequences of the insufficient

messaging or wrong

interpretation of messages may

lead to misleading decisions or

wrongful actions, directing the

project towards a failure.

This allows appropriate resources

and information needs and

methods of distribution

accordingly to the intended

audience.

Planning Communications needs

to be revised over the duration of

the project & need continuous

asking of:

Who needs information?

What exactly do they need?

When and at what frequency do

they need it?

Why do they need it?

What will it be used for?

Who will be providing it?

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Identifying the Communication requirements of the

stakeholders and presenting the information to stakeholders is

the process known as communication requirements analysis.

Project manager should be aware of the possible

communication channels within the project.

Number of communication channels = 𝑛 (𝑛−1)

2 =

7 (6)

2 = 21

Number of conversations each person can have at any given

point in time = n-1 = 7-1 = 6

Communication Requirements Analysis

A B

D

E

F

G C

Web of People Communications

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Aids in the information

dissemination among project

stakeholders.

Technology used to

communicate differs widely

based on various aspects:

Urgency of the need of the

information.

Availability of Technology.

Ease of use.

Project environment.

Sensitivity and confidentiality

of information.

Encode

Decode

Decode

Encode

Noise

Transmit

Acknowledge

Feedback

Sender Receiver

Communication Technology Communication Models

Each project is unique and will

need to adopt the

communication model most

suitable to the need. Although,

the basic communication model remains the same as

below.

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Communication Methods again vary from project to project need. Although three possibilities of communication methods are:

Interactive Most Effective Method of Multidirectional communication.

Examples include Meetings, Phone Calls, Group Discussions, Instant chats, Video Conferencing

Push This is widely used for communication to relevant stakeholders. However, the disadvantages include whether the information is received, understood and

correctly interpreted at the receivers end.

Advantage includes to reach the mass stakeholders at a go with communication.

Examples include press release, memo’s, letters, emails, faxes etc.,

Pull This is used for large volumes of information for large volumes of audiences and intends to be pulled by the audiences at their discretion.

Examples include websites, portals, knowledge repositories, databases and so on.

Communication Methods

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Most Optimal Communication Method

Method of Communication Purpose

Formal Written

• Detailed Explanations • Non Face to Face

Communications

Formal Verbal

• Conferences • Meetings

Informal Written

• Quick Delegations • Actions and Steps

Informal Verbal

• Coffee Meetings • Lunch Setups • Team Building

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Communication Management Plan includes details about how

the communications will be planned, structured, monitored and

controlled.

It may include the following:

Stakeholder communication requirements /needs

Message, format, language and so on

Intent of the message,

Delivery time, type and frequency

Involved persons, intended persons, approving authority

Methods of communication and technologies adopted to

convey the information

Resources allocated to communication activities including

time and budget

Escalation processes identifying timeframe and management

chain for escalation of issues

Common terminology & definitions used in communications

Flow charts of the information flow in the project, workflows

with possible sequence of authorization, list of reports and

meeting plans

Communication constraints like organization policies,

regulations, voluntary disclosures, technologies adopted and

so on.

Communication Management Plan

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10.2 Manage Communications

Inputs

•Communications Management Plan

•Work Performance Reports

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Communication Technology

•Communication Models

•Communication Methods

•Information Management Systems

•Performance Reporting

Outputs

•Project Communications

•Project Management Plan Updates

•Project Document Updates

•Organizational Process Assets Updates

•Integration

•Direct and Manage Project Work

•Scope

•Time

•Cost

•Quality

•Perform Quality Assurance

•Human Resource

•Acquire Project Team

•Develop Project Team

•Manage Project Team

•Communications

•Manage Communications

•Risk

•Procurement

•Conduct Procurements

•Stakeholder

•Manage Stakeholder Engagement

Executing Process It is the process of managing the project team communications based on the information which include create, publish, distribute, engage, record, retrieve, and

finally purge.

Key benefit of this process is how, why, when, who, which communication has to happen between project team and stakeholders is

arrived.

Suitable techniques are employed to make communications effective as:

Sender-Receiver Models

Choice of Media

Writing Style & Formats

Meeting Management

Event Organizing

Presentation Techniques

Facilitation & Supporting

Attentive Listening

Communication Channels

Established Escalation Paths

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Information in the project may be in various formats and representations. It may be communication in various styles and approaches.

Variety of tools which are used to deliver such information and enable communication are:

Information Management Systems

• Manuals, Letters, Memos, Journals, Reports, Press releases

Physical Documentation

(Hard Copies)

• Web Portals, Email, Faxes, Voice Mail, Conferencing, Online Journals, E-News

Electronic Documentation

(Soft Copies)

• Web based interactive tools, Standalone Project Management applications, Collaborative work interaction tools

Electronic

Project Management Tools

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Managing project is all about right

communication with right audience at

the right time.

Predominantly project managers spend

majority of their time ensuring the

communications are correct and

correctly understood by the team and

the stakeholders.

Communications itself vary based on

various parameters such as the need for

information:

who is requesting

who has to know

why is it needed

when do they need and

importantly

how it has to be communicated so

that it is understood in entirety and

context by receiver.

Project Communications

Communicate

Thinking

Listening

Speaking

Non-Verbal

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10.3 Control Communications

Inputs

•Project Management Plan

•Project Communications

•Issue Log

•Work Performance Data

•Organizational Process Assets

Tools & Techniques

•Information Management Systems

•Expert Judgment

•Meetings

Outputs

•Work Performance Information

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Organizational Process Assets Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is the process of controlling communications across

project to ensure all project stakeholders and team are

met on continuous mode.

Key benefit includes the effective communications

between the project team and stakeholders. To engage

with each other and to understand the required

information, process it and get the desired results towards

the project objectives.

This process ensures the right message is delivered to the

right audience at right time and understood to be

processed in desired manner.

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Chapter 10 - Debrief

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THIS BRINGS TO “COMMUNICATIONS MANAGEMENT” COMPLETION.

From what we have understood so far is:

3 Communications Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 10

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Risk Management

Chapter 11

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Chapter 11

Objectives

Understand the different Risk Management

Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Risk Management aspects required to identify, remove and harness threats or opportunities.

Driving the project towards the desired outcome while the project progresses with minimal impact to the project objectives being

accomplished to make the project successful!

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It includes the processes to ensure the project risks are

identified, analyzed, acted, planned with responses and

controlled for minimal impact on project objectives.

Project Risks can be broadly categorized based on the

level of knowledge we have upon them.

Known Risks. The risks which are identified and are aware to the project management team.

Unknown Risks. The risks which are not yet identified & might occur instantaneously without prior

knowledge.

Risks should be perceived as:

Overall Project Risk. This is the holistic risk of the project itself considering all individual project risks

along with any other unknown risks beyond the

project control.

Individual Project Risks. Risks which can standalone or in a category group well within reach of the

project which impact partially or a complete project

objective set.

Knowledge Area: Risk Management

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There are 6 Risk Management processes, namely:

1. Plan Risk Management

Process of ensuring the Risk management is planned in detailed manner which can be

applied over the course of the project.

2. Identify Risks

Identification of Risks over the Course of the Project and documentation of their characteristics.

3. Perform Qualitative Risk Analysis

Performing a qualitative analysis of risks and conditions to prioritize their effects on project objectives.

4. Perform Quantitative Risk Analysis

Measuring the probability and consequences of risks and estimating their implications for project objectives.

5. Plan Risk Responses

Once Risks are prioritized and weighted, each of risks are provided a response plan (Avoid, Transfer, Mitigate, Accept for Negative Risks and Exploit, Enhance, Share,

Accept for Positive Risks)

6. Control Risks

Controlling Risks over the duration of the project to the benefit of the project objectives.

Knowledge Area: Risk Management

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Risk responses by Stakeholders

/Organizations depend on:

Risk Appetite. Degree of Risk which will be taken up in order to gain a

reward. Variations are measured

over course of the project in LCL

(Lower Control Limit) & UCL(Upper

Control Limit) to understand the

stakeholder risk appetite levels.

Risk Tolerance Levels. Degree of Risk which will be entertained

beyond which the attention is

required.

Risk Threshold Levels. Extreme Levels of Risk either on lower side or

upper side. Crossing the lower side,

the Risk is absolutely negligible and

crossing the upper side, the Risk will

not be tolerated any further.

Knowledge Area: Risk Management

Total Cost to Sponsor/Stakeholder

{ Pro

ject

C

ost

{ Contingency Reserve

Actual Work Cost

{

{ Man

agem

ent

Res

erve

Tolerance Level

Threshold Level

Appetite

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11.1 Plan Risk Management

Inputs

•Project Management Plan

•Project Charter

•Stakeholder Register

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Analytical Techniques

•Expert Judgment

•Meetings

Outputs

•Risk Management Plan

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Risks are uncertain events which may trigger positive or negative impact on the project outcome. Planning risk management involves end to end management of risks involved in the project.

Key benefit of this process ensures the degree, type and visibility of risks are given right and required risk ratings.

Risks in the project have to be dealt with due diligence and with complete understanding of the same from all the stakeholders. Risk management starts much before the project is actually conceived.

Identified risks are then in the later stages managed to be

minimized, exploited and if not planned for contingencies. Risks are regularly revisited and reviewed over the duration of the project.

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Analytical Techniques help understand the holistic view of the Risks

on the project.

One mechanism beneficial to diagnose and understand the

tolerance and risk appetite levels of the decision

makers/stakeholders.

This definitely helps understand the amount of risks which can be

handled and which need to be pitched as immediate escalation

points on the project.

Analytical Techniques

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This plan defines how the risk activities will be performed on the project. It may include the following:

Methodology

Defined approach along with the tools to perform Risk management

Roles and responsibilities

Defines risk management resources roles & responsibilities

Budgeting

Helps estimate budget to ensure the required reserves are defined

Timing

Time when the information has to be conveyed

Risk categories

Risks may be categorized into multiple categories based on the project being performed. They may be grouped based on various approaches.

RBS(Risk Breakdown Structure) helps identify risks from multiple sources identified in risk identification exercise and categorize them in a structured manner for ease of addressing them.

Risk Management Plan

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Definitions of Risk Probability and Impact: Define the probability and impact definitions that will be used in the project. Sample Impact Definition Table is shown here.

Probability and Impact Matrix

Risk Management Plan

Very Low 0.10

Low 0.25

Moderate 0.50

High 0.75

Very High 0.90

Scope Insignificant

Changes Changes Moderate Changes Major Changes

Major Significant Changes

Time <5% Increased

Timeline <25% Increased

Timeline 25-50% Increased

Timeline 50-70% Increased

Timeline >70% Increased

Timeline

Cost <5% Increased

Project Cost <25% Increased

Project Cost 25-50% Increased

Project Cost 50-70% Increased

Project Cost >70% Increased

Project Cost

Quality Quality Changes Not

Significant Quality May Need

To Be Improved Sponsor Needs To

Approve The Quality

Product Quality Is Not Acceptable To

Sponsor

End Product Quality Is Useless

Very Likely

Most Likely

Likely

Chance

of Likely

Unlikely

Probability

/Impact Very Low Low Moderate High Very High

Revised Stakeholders’ Tolerances

Continuous revision of stakeholders

tolerances based on their risk appetite

over project duration.

Reporting Formats

Define the report formats which include

the manner, risks will be documented,

formatted, communicated to which

stakeholder group.

Tracking

Risk Tracking is very important as the

risks continuously evolve from one

quadrant to another. Recording of their

risk movements is equally important

from the Risk Auditing perspective.

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11.2 Identify Risks

Inputs

•Risk, Cost, Schedule, Quality, HR Management Plan

•Scope Baseline

•Activity Cost Estimates

•Activity Duration Estimates

•Stakeholder Register

•Project Documents

•Procurement Documents

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Documentation Reviews

•Information Gathering Techniques

•Checklist Analysis

•Assumptions Analysis

•Diagramming Techniques

•SWOT Analysis

•Expert Judgment

Outputs

•Risk Register

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Risks are uncertain events and identification of them early leads us to better preparation with suitable action plans.

Documentation of the identified risks with their characteristics helps us be prepared in likely or unlikely situation of the Risk occurrence.

Documentation of the risks in a consistent manner will provide sufficient detail so as to compare them with each other and suitable associated action response plan be derived.

This process of identification of risks is iterative and has to be performed across the intervals of the project duration.

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Risk Register is a document which records the Risk Analysis

and Risk Response Planning. This document evolves as the

project progresses and is a live document.

Risk Register provides input about the Risk events to impact

resource selection and availability during the Estimate

Activity Resources leading to more finer estimates.

List of Identified Risks:

Identified risks are detailed as much possible including

the root cause.

Risk statements may be used in conjunction to triggers

such as Event->Impact and/or Event -> Effect.

List of Potential Responses:

During the identification of the risks, there may be

situations where in the risk response is readily known.

These potential responses should be recorded.

While the project progresses, the risks registered are

continuously reviewed for triggers and/or risk responses.

Risk Register

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Documentation Reviews

A detailed study or review of the

various project documents may help

indicate and identify the risks in the

project.

Various documents which may be

subjected to review, but not limited to:

Plan Documents

Assumptions

Previous Project Documents

Legal Documents

Compliance Considerations

Organizational Policies

Databases

Historical Plans

Information may be gathered in

various formats:

Brainstorming

Delphi Technique

Interviewing

Root Cause Analysis

Information Gathering Techniques

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Checklist Analysis

Risk Identification Checklists may be evolved over a period of time in any organization which become a ready reckoner for identification of risks.

However, proper care should be taken to explore risks beyond the Checklist itself as this

may not be comprehensive to every project running in the organization.

Every project is conceived based on certain assumptions, scenarios and possible postulate.

Each one of these need to be evaluated and understood in the context of the project

in progress.

Assumption Analysis

Certain

Un Certain

Lea

st Im

po

rta

nt

Mo

st Im

po

rta

nt

Critical

Region

A A A

A A

A

A

A

A

A

A

A

A

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Diagramming Techniques

Diagramming techniques involve the usage of the diagramming methods based on which the risks can be identified.

Such as:

Ishikawa’s Fish Bone Diagram

System or Process Flow Charts

Influence Diagrams – Helps to identify the decision tree. As shown below.

Strengths, Weakness, Opportunities, Threats Analysis in short is known as SWOT analysis.

Analysis of the Project is performed to diagnose the Strengths, Weakness, Opportunities, Threats.

This is first done in a manner to identify Strengths and Weakness. Then based on Strengths, opportunities are further explored. Similarly based on weakness, threats are further explored.

SWOT Analysis

Strengths - Strong Brand Awareness among Customers

Weakness - Low Funds for Expansion

Opportunities - Build Partnerships - Increase

Investments

Threats - Increased Competition & Marketing Spends

Fund Research

Market Value

Launch Product

Research Success

Market Success

Influence Diagram

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11.3 Perform Qualitative Risk Analysis

Inputs

•Risk Management Plan

•Scope Baseline

•Risk Register

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Risk Probability And Impact Assessment

•Probability And Impact Matrix

•Risk Data Quality Assessment

•Risk Categorization

•Risk Urgency Assessment

•Expert Judgment

Outputs

•Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Performing a qualitative analysis of risks and conditions to prioritize their effects on project objectives.

Key benefit of this process is to ensure the specialized focus is on the high quality risks.

This is done through out the project duration and will cause re-assessment of certain risks as the project evolves.

In order to ensure there is no influence or bias on the assessment, the probability and impact definitions are defined upfront.

This also helps in establishing ―perform quantitative risk analysis‖.

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Risk Probability Assessment investigates the likelihood that each specific risk will occur.

Risk Impact Assessment investigates the impact on the outcome of the project on Scope, Time, Cost, Quality parameters

should the risk occur.

Each risk is analyzed for both probability and impact assessment. Risk probabilities and impacts are rated based on the definitions in the Risk Management Plan.

All risks are rated based on their assessed probability and impact as defined in the matrix.

Each of the risks are color coded and accordingly paid attention. The Risks which

are more darker in color lead to more attention from the project management team.

Probability ↓ Threats (Negative Risks) Opportunities (Positive Risks)

0.90 .0090 .2250 .4500 .6750 .8100 .8100 .6750 .4500 .2250 .0090

0.75 .0075 .1875 .3750 .5625 .6750 .6750 .5625 .3750 .1875 .0075

0.50 .0050 .1250 .2500 .3750 .4500 .4500 .3750 .2500 .1250 .0050

0.25 .0025 .0625 .1250 .1875 .2250 .2250 .1875 .1250 .0625 .0025

0.10 .0010 .0250 .0500 .0750 .0900 .0900 .0750 .0500 .0250 .0010

Impact

Very Low

0.10

Low

0.25

Moderate

0.50

High

0.75

Very High

0.90

Very High

0.90

High

0.75

Moderate

0.50

Low

0.25

Very Low

0.10

Risk Probability & Impact Assessment

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A detailed study of the supplementary

data for each risk helps ensure each

risk is paid rightful attention.

This involves the degree of examination

of the data about the risk is known and

understood.

Parameters based on which the data

quality assessment is performed usually

involves accuracy, quality, reliability

and integrity of the data about the risk.

Risks may be categorized based on the:

Sources of Risk Identified

Which affect a particular project area

Common root causes

Common actions or solutions adopted

for risks and so on..

Risk Data Quality Assessment Risk Categorization

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Risks which need immediate attention from the perspective of time

criticality are required to be acted upon quickly.

Based on the time criticality, the risk priorities define the Risk Rank Ratings.

Risk Urgency Assessment

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11.4 Perform Quantitative Risk Analysis

Inputs

• Risk, Cost, Schedule Management Plan

• Risk Register

• Enterprise Environmental Factors

• Organizational Process Assets

Tools & Techniques

• Data Gathering and Representation Techniques

• Quantitative Risk Analysis and Modeling Techniques

• Expert Judgment

Outputs

• Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

Key benefit is to measure the probability and

consequences of risks and estimating their implications for

project objectives.

Helps in reducing the project uncertainty by performing

the quantitative risk analysis.

It is mostly used to evaluate the aggregate effect of all

risks affecting the project.

Performing this process requires budget and involves cost.

This Cost benefit should be evaluated before this process

can be exercised.

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Commonly used approaches involve:

1. Sensitivity Analysis

2. Expected Monetary Value analysis

3. Modeling and Simulation

Quantitative Risk Analysis and Modeling Techniques

1. Sensitivity Analysis

This analysis helps identify

the most potential impact

on the project. A sample

Tornado Diagram shows

how it is performed.

-3000 -2000 -1000 0 1000 2000 3000 4000 5000 6000

Risk 5

Risk 4

Risk 3

Risk 2

Risk 1

Inverted Tornado Diagram

Negative Impact Positive Impact

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Quantitative Risk Analysis and Modeling Techniques

2. Expected Monetary Value(EMV)

Highest EMV wins.

This type of analysis provides the future possible income or outgo values

based on the statistical probability and impact values.

Risk A

Risk C 80% likely

Risk B 20% likely

Outcome1

70% likely

Outcome2

10% likely

Outcome3

20% likely

INR 100 Lakh Implication

INR 35 Lakh Implication

INR 65 Lakh Implication

INR 100 Lakh Implication

INR 30 Lakh Implication

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What is your Investment decision based on Risk?

New Product or

Maintain?

New Product Development

Investment

$60M

Maintain Product

Investment

$30M

Strong Sales

Revenue: $150M

Weak Sales

Revenue : $70M

Strong Sales

Revenue : $80M

Weak Sales

Revenue : $20M

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What is your Investment decision based on Risk?

New Product or

Maintain?

New Product Development

Investment

$60M

Maintain Product

Investment

$30M

Strong Sales

Revenue : $150M

Weak Sales

Revenue : $70M

Strong Sales

Revenue : $80M

Weak Sales

Revenue : $20M

150-60 = $90M

70-60 = $10M

80-30 = $50M

20-30 = -$10M

70% Chance

30% Chance

70% Chance

30% Chance

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Investment decision is based on lowest risk

(eliminating -10M) as well as based on highest EMV(66M)

New Product or

Maintain?

New Product Development

Investment

$60M

Maintain Product

Investment

$30M

Strong Sales

Revenue : $150M

Weak Sales

Revenue : $70M

Strong Sales

Revenue : $80M

Weak Sales

Revenue : $20M

150-60 = $90M

70-60 = $10M

80-30 = $50M

20-30 = -$10M

EMV of New Product = 70% * 90 + 30% * 10 =

63 + 3 = $66M

70% Chance

30% Chance

70% Chance

30% Chance

EMV of Maintain = 70% * 50 + 30% * -10 =

35 + (-10) = $25M

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Quantitative Risk Analysis and Modeling Techniques

3. Modeling and Simulation

This type of analysis is performed when the actual cost of performing activities may have multiple variables and could cost immensely to

actually perform feasibility in reality.

Monte Carlo Simulation provides unique multiple iterations of outcomes based on the predefined trigger values and parameters using which these simulations are performed statistically using a computing machine.

Example: Simply treat it as a task repeated over many times with different variables over a project schedule network. What will be the output? Will it vary every time? Yes. Though repetitions of the task many times will give us a

precise range of how many days +/- it would take to accomplish that.

That is how the Simulations would help you come up with almost certain range of all. This includes the probability of the risks on the Project as well.

Benefits of such Monte Carlo or any other simulation includes:

- Almost precise calculations considering many parameters for Cost estimates,

Schedule estimates, Overall risk and so on.

- Since it includes path convergence for the schedule network, the complexity of every task is accounted, which brings more stability in estimates.

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Monte Carlo Simulation

Explained

Project or

Investment Decision

Risk of Investment 40,000 People, 2B$ Cost, 800 Machines 5 Years Project

Risk of Investment 20,000 People, 3B$ Cost, 600 Machines 10 Years Project

.

.

.

.

.

.

.

.

.

.

.

.

Definitive Range of Years based on Multiple Risk Based Scenarios

.

.

.

.

.

.

.

.

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11.5 Plan Risk Responses

Inputs

• Risk Management Plan

• Risk Register

Tools & Techniques

• Strategies For Negative Risks Or Threats

• Strategies For Positive Risks Or Opportunities

• Contingent Response Strategies

• Expert Judgment

Outputs

• Project Management Plan Updates

• Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

This is one of the most important Risk Management processes as we step into the effective actions and evaluate options of how to address these prioritized risks.

Key benefits of this includes the allocation of budget, resources and schedule for the identified and actionable risks.

From the multiple options available to response for each risk it is imperative to understand which option/response will be most appropriate in the context of the project limits.

Risks include both threats and opportunities for which the responses can be developed and initiated for action.

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Negative Risks or Threats can be acted with response in following manner:

1. Avoid

2. Transfer

3. Mitigate

4. Accept (Applicable for both Negative Threat &

Positive Opportunity)

Avoid

Where possible it is always recommended to

ensure the critical risks are completely avoided either by eliminating the threat or by ensuring the project is shielded completely from the impact of the threat.

Most radical extreme step to avoid risk would be to shutdown the project itself.

Transfer

Transfer of risk to a third party for a price ensures the risk even if it occurs minimizes the impact on the project, since it is offset with the third party.

Risks which are transferred to a third party

involves risks with major cost implication to project.

Transfer of the risk, does not eliminate risk itself, it just transfers the ownership to a third party.

Mitigate

Project team acts to minimize the impact &

probability of the risk over a period of time to ensure the risk is brought to minimal state or completely eliminated.

Accept

Team acknowledges the risk and waits until the risk occurs to respond on it.

Active Acceptance – Build a contingency reserve to ensure when the risk occurs it is

readily acted with the contingency (time, cost,

scope, quality).

Passive Acceptance – It is documented and

then awaited until risk occurs, so that further

action can be taken up.

Strategies For Negative Risks Or Threats

Critical Risks with High

Impact

Less Critical Risks with Low

Impact

Avoid Good Strategy

Mitigate Good Strategy

Transfer Good Strategy

Accept Good Strategy

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Positive Risk Example: A potential delay in the delivery of materials which happened to be delivered ahead of time. This risk is now an opportunity to check on the schedule what work can be done already in advance given the availability of materials.

Positive Risks or Opportunities can be acted with response in following manner listed below.

1. Exploit

2. Enhance

3. Share

4. Accept (Passive Acceptance Only)

Exploit

When there are risks which can be beneficial to the organization, it is natural that these risks are driven towards ensuring Risk occurs.

Enhance

When you want to increase the probability or likely chances to ensure the risk occurs by maximizing the possibilities of risk occurrence.

Share

Sharing of the risk to third party for maximum throughput when we make the risk occur to maximize risk out come.

Accept

Accepting the risk to harness the opportunity when the risk actually arises on its own and not actively pursuing.

Strategies for Positive Risks or Opportunities

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Some of the responses are planned only when the risks will occur such as in Accept – Active Acceptance.

In such a response planning, a contingent reserve or a fall back plan is established so as to respond appropriately upon the occurrence of such a risk.

There is no substitute to experience when it comes to Contingent Response Strategies – Expert Judgment stays on top of the list strategy.

While many project managers simply prefer to have a transfer of risks when they occur, rather than manage in practice.

Contingent Response Strategies

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11.6 Control Risks

Inputs

•Project Management Plan

•Risk Register

•Work Performance Data

•Work Performance Reports

Tools & Techniques

•Risk Reassessment

•Risk Audits

•Variance and Trend Analysis

•Technical Performance Measurement

•Reserve Analysis

•Meetings

Outputs

•Work Performance Information

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Organizational Process Assets Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is the process of controlling risks during the project by

monitoring existing risks, their response plans, risk

movements, identification of new risks, elimination of

outdated risks to ensure the project objectives are least

harmed or nil impact due to risks.

Key benefit includes the effective Risk management and

its minimized or nullified risk impact on the project

objectives.

This process also ensure the planned risk management

processes are being followed during the course of the

project and any further improvements to the risk

processes are adopted.

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Risk Reassessment

It is a continuous process through out Project life cycle and performed across all Process Groups.

Risk Reassessments should be carried out frequently to perform the new risk identification, re-planning the risk responses, close the outdated risks.

Based on the project size and the organizational practice, the project management team and/or specialized risk management team reassess the risks at frequent intervals.

Identify

Observe

Regulate Close

Re-Assess

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More Tools & Techniques

Variance & Trend Analysis

Performance baselines defined

in the project should be

constantly monitored for any

variances.

Also based on the trend

analysis of baseline

performance, suitable actions

should be planned, including

further risk identification and

actions in the Project.

Technical Performance Measurement

Technical performance of the Project is usually measured based on the type of project we execute.

Suppose in a software project, we would be interested in the Technical performance of Planned Flawless Modules against Actual Modules with Flaws.

Suppose in a construction project, we would be interested in the Technical performance based on planned bricks with weight of 2 KG versus actual weight being 2.4 KG.

Measuring such Technical performance gives an indication of the success chances of Project.

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Chapter 11 - Debrief

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THIS BRINGS TO “RISK MANAGEMENT” COMPLETION.

From what we have understood so far is:

6 Risk Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 11

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Procurement

Management

Chapter 12

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Chapter 12

Objectives

Understand the different Procurement

Management Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Procurement aspects required to ensure the required resources or nature of material or labor or any other is

acquired so that the Project can meet its objectives.

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It includes the processes to ensure identification, acquiring and deploying services of a seller to meet the needs of buyer’s project.

Usually the seller is recognized as an external party other than the performing project team. This may include your internal different LOB (Lines of Business) treated as a separate legal entity or external organization.

Both the buyer and seller are bonded legally with a contract document serving as the point of reference for work to be accomplished and payments released. This contract document may be simple or as complex as it can be based on project needs and legal involvement.

A mega project may involve multiple sellers being contracted to procure various services for the

needs of the mega project. Managing these many sellers on their individual contracts need a specialized team in procurement and is normally a part of the administrative or financial function in organizations, however, project teams may also be employed to administer as well.

Seller goes through a change of status in the procurement cycle.

Knowledge Area: Procurement Management

Prospective Seller/Bidder

Selected Bidder

Contracted Seller

Future Seller

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There are 4 Procurement Management processes, namely:

1. Plan Procurement Management

It is the process of planning the identification of Sellers, how the contract will be awarded, and how the project will be executed.

2. Conduct Procurements

Process of conducting the procurement which includes circulating proposals, obtaining seller responses, selection & award of the contract to a particular seller.

3. Control Procurement

Controlling Procurements involve the management of executing the awarded contract on the parameters defined during the contract award. Validation of the work being performed as the criteria to release the payments.

4. Close Procurement

Formally closing the validated work and ensuring Seller is released upon completion of the work or formal termination of contract with Seller upon dissatisfactory work as per the contract agreement. Application of recommended penal clauses upon the deviations/termination of work.

Knowledge Area: Procurement Management

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12.1 Plan Procurement Management

Inputs

•Project Management Plan

•Requirement Documentation

•Risk Register

•Activity Resource Requirements

•Project Schedule

•Activity Cost Estimates

•Stakeholder Register

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Make-or-buy Analysis

•Expert Judgment

•Market Research

•Meetings

Outputs

•Procurement Management Plan

•Procurement Statement Of Work

•Procurement Documents

•Source Selection Criteria

•Make-or-buy Decisions

•Change Requests

•Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

This is the process to identify the Sellers, detail the approach to define the

criteria and evaluate whether to make it internally or go for an external

procurement.

Key benefit is that it determines if need to acquire an external support, what

to acquire, how to acquire spending how much and when would be the

appropriate period of acquire.

When an external product/service is acquired, each such product/service

will go through Plan Procurement till Close Procurement processes.

Any relevant IP(Intellectual Property) arising - who owns this, any legal or

regulatory compliance and such detail of risks also need to be considered

before the procurement is awarded to a seller.

Buyer needs to ensure the details are granular to safeguard mutual interests

and maximize benefits for both for best outcome.

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Organizational Process Assets

Contractual Relationships

Majority of the companies with

descent size, scale and maturity

have a separate legal and

procurement team to ensure the

procurements are done in a legal,

ethical practiced manner to

avoid any wrong-doings during

the procurement process.

Wherein such specialized teams

are not available in the

companies, project management

team has to supplement this

function with their expertise.

Different types of Contracts may

be clubbed for better

performance and the nature of

work to be accomplished.

Contracts awarded are bonded

by the legal agreements where in

the approach (contractual

relationship) could be defined as

follows:

Fixed Price Contracts

FFP (Firm Fixed Price)

FPIF (Fixed Price Incentive Fee)

FP EPA (Fixed Price Economic

Price Adjustment)

Cost Reimbursable Contracts

CPFF (Cost Plus Fixed Fee)

CPIF (Cost Plus Incentive Fee)

CPAF (Cost Plus Award Fee)

Time & Material Contracts

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Organizational Process Assets Contractual Relationships

Fixed Price Contracts for Standard Products

In order to provide a fixed price

contract the buyer has to perform

due-diligence and define the scope of

work to be done.

Sellers are subject to penalties or legal

implications wherein the contractual

terms are not met which may include

the scope, timeline, cost involved for

awarded project execution.

Any further change of scope by the

buyer may be accommodated

generally adopted with price changes

to the original contract.

FFP (Firm Fixed Price)

(Most commonly preferred)

Fixed Scope with Fixed Price and

Predefined Performance.

FPIF (Fixed price Incentive Fee)

(Most beneficial for both buyer

and seller)

Fixed Scope with Fixed Price +

Incentives for achieving

performance at different levels

FP EPA (Fixed Price Economic Price Adjustment)

Used when there are projects

running over several years. And

there is a need to protect both

buyer and seller from the external

inflation related costs.

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Organizational Process Assets Contractual Relationships

Fixed Price Contracts for Standard Products

FFP (Firm Fixed Price) – Price of the Product is fixed

by the Buyer to create competition amongst

vendors.

Example:

As a Training Institute, I would want to procure

10000 bottles of water. Regular Price of Bottle is

INR20. Since I buy in bulk I don’t want to pay

full price and think let me create competition

among vendors. So I fix the buy price at INR15.

Any Vendor who wants to supply me the

bottles at INR15, can bid and provide me the

delivery for 10000 bottles.

Ready to Pay INR 15 instead of MRP 20

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Organizational Process Assets Contractual Relationships

Fixed Price Contracts for Standard Products

FPIF (Fixed Price Incentive Fee) – Price of the Product is fixed by Buyer & also Buyer is ready to pay Incentives

extra if vendor meets extra objective.

Example:

As a Training Institute, I would want to procure 10000

bottles of water. Regular Price of Bottle is INR20.

Since I buy in bulk I don’t want to pay full price and

think let me create competition among vendors. So I

fix the buy price at INR15.

Additionally, am looking to procure the bottles in 2

days instead of waiting for a standard delivery time

of 15 days. For this objective, am ready to pay

incentive of INR2 per bottle on top of Fixed Price.

Any Vendor who wants to supply me the bottles at

INR15, can bid and provide me the delivery for 10000

bottles. However, if vendor supplies me bottles in 2

days instead of 15 days, I will pay per bottle

delivered 15+2=17 per bottle.

Ready to Pay INR 15+2incentives = 17 for 2 day delivery of bottle

instead of MRP 20

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Organizational Process Assets Contractual Relationships

Fixed Price Contracts for Standard Products

FP EPA (Fixed Price Economic Price Adjustment)

Scenario 1 – Product Inflation Cost

MRP(Max. Retail Price) of the bottle is INR 20, we agreed to

pay INR 15 per bottle.

In case the MRP of the bottle become INR25 from INR20. We

would need to proportionately adjust per bottle price to at

least INR21 so that vendor does not go under loss.

Scenario 2 – Currency Fluctuation

MRP(Max. Retail Price) of the bottle is INR 20, however,

when drafting contract we agreed to pay in USD,

considering today 1USD=INR65.

The currency itself will fluctuate though due to economy.

After 2 weeks, we would need to adjust accordingly the

pay in USD or INR so that the currency fluctuation delta is

adjusted.

Today 1 USD = INR 65

Tomorrow 1 USD ~ INR 90 or

1 USD ~ INR 40

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Organizational Process Assets Contractual Relationships

Cost Reimbursable Contracts for Custom Products

Costs incurred on the project work

along with the Seller profit are

reimbursed as part of the Cost

Reimbursable Contracts.

Usually these type of contracts are

awarded when the work cannot be

defined completely upfront and the

understanding of risks involved is at

preliminary stages.

CPFF (Cost Plus Fixed Fee)

Project Cost plus the Fixed fee(% of

Total Project Cost) is reimbursed upon

completion of the prescribed scope of

work. Performance may/may not be

up to the mark.

CPIF (Cost Plus Incentive Fee)

Project Cost plus the Additional

Financial Incentives for achievement

of scope of work. Different grades of

quality may lead to different levels of

payments and hence motivates seller

financially to deliver the most possible

superior project quality.

CPAF (Cost Plus Award Fee)

Project Cost is reimbursed however the

final award fee is subject to the

buyer’s consent that the project has

met the objectives stated. Unless the

objectives are not met, the buyer may

hold the payments to seller and no

appeals are entertained.

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Organizational Process Assets Contractual Relationships

Cost Reimbursable Contracts for Custom Products

CPFF (Cost Plus Fixed Fee)

Cost of material to build the Ship is

reimbursed on actuals along with the

Fixed fee for the Ship builder.

Suppose material cost of the cruise

ship is $100M, this is reimbursed on

actuals.

In addition, we pay the cruise ship

builder an agreed amount of $20M for

his expertise and work performed.

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Organizational Process Assets Contractual Relationships

Cost Reimbursable Contracts for Custom Products

CPIF (Cost Plus Incentive Fee also known as Cost Plus Fixed Fee Plus Incentive Fee)

Cost of material to build Ship is

reimbursed on actuals and with Fixed

fee for Ship builder and with Incentives

for any extra objectives.

Suppose material cost of the cruise

ship is $100M, this is reimbursed on

actuals.

In addition, we pay the cruise ship

builder an agreed amount of $20M for

his expertise and work performed.

Also, vendor built the ship in 2 months

instead of 6 months upon our need.

For this we agreed to pay incentives of

$75M extra.

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Organizational Process Assets Contractual Relationships

Cost Reimbursable Contracts for Custom Products

CPAF (Cost Plus Award Fee also known as Cost Plus Fixed Fee Plus Award Fee)

Cost of material to build Ship is

reimbursed on actuals and with Fixed

fee for Ship builder.

Suppose material cost of the cruise

ship is $100M, this is reimbursed on

actuals.

In addition, we pay the cruise ship

builder an agreed amount of $20M for

his expertise and work performed.

Also, vendor has built excellent quality

of Ship, we are so impressed that we

want to order 2 more ships from the

Vendor. This is an award/bonus.

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Organizational Process Assets Contractual Relationships

Time & Material Contracts for Leased Products/Staff

The fixed price per unit of labor,

resource or material is applied.

Per unit cost includes seller profit

margins and hence seller would like

these type of contracts to run for a

longer duration of time.

It is up to the buyer to ensure the

resources are rightfully engaged and

the end objectives are met.

Nature of contracts are open ended

since the precise scope of the work to

be accomplished is not defined

completely upfront.

This contract type is very helpful to

acquire unique skills or particular

resources on a project to be

engaged.

Example:

1 Resource per day billing is $ 45.

Should we use the resource for 100

days, we pay 45*100 = $ 4500.

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Risk Sharing in Different

Contract Types between

Buyer and Seller

Buyer is someone who wants to buy Services, Products,

Solutions and so on. The

party actually looking to

procure items for their

Project work

accomplishment.

Seller is someone who wants to sell goods, do work,

provide equipment or

services so that the other

party can accomplish their

work typically.

Contract Involved Risk Owned by

Fixed Price Contracts

• Firm Fixed Price Seller Alone

• Fixed Price Incentive Seller & Buyer

• Fixed Price Economic Price Adjustment

Seller Alone

Cost Reimbursable Contracts

• Cost Plus Fixed Fee Buyer

• Cost Plus Incentive Fee

Seller & Buyer

• Cost Plus Award Buyer

Time & Material Contracts

Buyer

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Make or Buy analysis is usually performed to analyze should the work be done internally or externally.

In some cases though expertise lies in the organization, it may not be rightful to consider to be done it in house may be due to:

Excessive cost implications

Externally available cost effective deliveries

Internal resources tied to other projects and so on..

Whenever the Buy option is thought through, along with the buy, the option of lease is also first considered.

Make-or-Buy Analysis

13.5 Lakh EMV or -3 Lakh EMV Pick always the highest EMV. So the decision to choose the Buy.

Make or Buy Decision

Buy 80% likely

Make 20% likely

Outcome1

INR65 Lakh 70% likely

Outcome2

INR120 Lakh 10% likely

Outcome3

INR30 Lakh 20% likely

INR 50 Lakh Anticipated Cost

INR 35 Lakh Anticipated Cost

65 - 50 = 15

120-50 = 70

30-50 = -20

10.5 + 7 – 4 = 13.5 Lakh EMV

2 + 3 - 8 = -3 Lakh EMV

EMV (Expected Monetary

Value) Technique along with the

decision tree helps decide on

the Make or Buy decisions.

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Market Research

Market Research aids in the

early exploration of the

feasibility of stepping into

technologies or new products

or unique services. Information is

gathered via events, meetings,

conferences, online reviews

and so on.

Risks associated with such

procurement planning of latest

and/or new technology,

product or service need to be

balanced so that the outcome

should be advantageous.

Acknowledged. Source: http://www.powerdecisions.com

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Procurement management plan defines how the external services will be acquired and

engaged over the course of the project duration. It may include the following:

Types of contracts and awards applicable for project

Identified Risks and Implications

Estimates based on granular scope of outright scope

Procedures and Organizational Policies to be applied

Who or which group will perform the procurement

How the suppliers will be evaluated and finally awarded

Constraints and Assumptions

Who will make the Make or Buy decisions

Approach adopted for the decisions

Identified performance levels & associated incentives

Identified Risks and associate them to the third party financial considerations in

case of guarantee, warrantee, legal obligations and maintenance issues

Guidance to establish a Seller WBS, engaging quality of resources or work to be

accomplished and so on.

Procurement Management Plan

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Procurement Statement of Work

This is the most important document for the seller to obtain from the

buyer as this defines the end objective of the contract with a high

level descriptions.

Descriptions may include performance specifications, skilled

resources, initial constraints, base assumptions, desired quantity,

quality of the work, location of work to be performed and so on.

Further adoptions of SOW can be added as addendums to the SOW

until the Final Contract is signed by both the parties(buyer and seller).

Example:

Procurement SOW: Build the subsection of the complete bridge.

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Procurement

Documents • To collect various strengths & capabilities of

Suppliers/vendors

RFI (Request for Information)

• Asking Vendors to bid on price, whereas the work is already predefined by Buyer

IFB (Invitation for bid)

• Asking Vendors to submit commercial proposal and how it would be done

RFP (Request for proposal)

• Typically for standard items of procurement or with a known Vendor repeated order, quotation is requested

RFQ (Request for quotation)

• Primarily for the government work orders where the work is already predefined with Quality, like road laying

Tender Notice

Typically the documents

floated & circulated to

sellers to invite prospective

competitive bids are

referred as Procurement

Documents.

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Selection Criteria is often included as part of the procurement documents to bring transparency and ensure competitiveness amongst the bidders.

The selection criteria based on which the

contract will be awarded is often disclosed so that the bidders know upfront on what basis their bids will be selected.

In some cases this may be the early phase to narrow down and subsequently have a follow-on round to ensure the qualified

bidders get to know more intricate details and subsequently re-bid for final award.

Few of the possible sources are based :

Seller understanding of requirements better

Lowest Overall Total Cost of Ownership (TCO)

TCO = Purchase + Operating Cost

Technical Capabilities

Logical Capabilities

Risk Management Capabilities

Management Capabilities

Financial Capabilities

Production Capacity

Lobbying Capabilities

Government, Business & Political References

Intellectual rights

Proprietary rights

Past Performance history

Execution capabilities

Source Selection Criteria

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12.2 Conduct Procurements

Inputs

•Procurement Management Plan

•Procurement Documents

•Source Selection Criteria

•Seller Proposals

•Project Documents

•Make-or-buy Decisions

•Procurement SOW

•Organizational Process Assets

Tools & Techniques

•Bidder Conference

•Proposal Evaluation Techniques

•Independent Estimates

•Expert Judgment

•Advertising

•Analytical Techniques

•Procurement Negotiations

Outputs

•Selected Sellers

•Agreements

•Resource Calendars

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Integration

•Direct and Manage Project Work

•Scope

•Time

•Cost

•Quality

•Perform Quality Assurance

•Human Resource

•Acquire Project Team

•Develop Project Team

•Manage Project Team

•Communications

•Manage Communications

•Risk

•Procurement

•Conduct Procurements

•Stakeholder

•Manage Stakeholder Engagement

Executing Process It is the process of conducting the procurements to finally award a contract legally.

During the process, it may involve, how the seller

responses will be availed, on what criteria a seller will be chosen and how the contract will be awarded to the selected seller.

Many projects adopt several

rounds of qualifying the sellers and selections.

In every round for the selected or qualified sellers, more information is provided and based on which further evaluations are done to qualify/chose the seller.

The entire procurement process takes a lengthy approach due to this nature of procurement process and care should be taken to ensure the procurement

process is triggered as soon as the project needs are identified to be realistic.

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Bidder Conferences

Also known as Contractor, Vendor,

Pre-Bid Conferences.

Bidder Conference meetings are

where the potential sellers meet

the buyer.

Buyer establishes a common

ground of basic understanding

about the Contract and also

provides necessary Questions and

Answers to all the Sellers.

All questions are collected upfront

and answers made available

during the conference to all

Sellers.

Buyer performs an evaluation of all

the submitted bids from the sellers

based on a predefined criteria.

This criteria may be public

knowledge or a private affair and

depends on the nature of the

contract being awarded.

However, in most scenarios a

generic guideline is established

and circulated on how the bids will

be weighted and then

accordingly awarded.

Proposal Evaluation Techniques

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Independent Estimates

Before the contract is circulated

for bids, buyer may perform an

independent estimate and

accordingly plan for circulation of

the contract. The estimate could

be also from professional body

specialized in estimation.

Once the contract is circulated to

the sellers, the estimates arrived by

the sellers indicate understanding

of them about contract being put

in place.

Large differences in estimates

mean the sellers are not in line with

contract understanding.

Advertising is often used to

circulate the contracts to a reach

a wider seller community.

Also Government related

procurements are often obligated

to publish the contracts in the

news papers and special industry

trade journals.

Advertising

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Most contracts define if the contract

awards will be negotiable or non-

negotiable contracts.

In case of Negotiable contracts, the

bidder conference and/or the contract

clearly establishes the negotiable parts of

the contract and what are not

negotiable.

During the process of procurement,

usually after the seller is being identified,

the negotiations are called for and before

the contract is being awarded.

Once the contract has been accepted all

the negotiations end and the contract

work has to proceed.

The last chance of any negotiation

possible is before the contract is being

inked legally.

Procurement Negotiations Contract Circulation

Bidding Conference

Seller Selection

Seller Negotiates Buyer

Contract Signed

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A procurement agreement includes terms and conditions, and includes the nature of work to be executed. Project management team is responsible for:

Ensure all project objectives are listed in agreement

Ensure organizational procurement policies are adhered

Depending on application area, Agreement is referred to as:

Contract

Subcontract

Purchase Order

Regardless of what it may be called, an agreement is a legally mutually binding document which entitles for the legal relationship and remedy to courts. It may include the following components or

more:

Agreements

• Statement of Work or Deliverables

• Schedule Baseline

• Performance Reporting

• Period Of Performance

• Roles And Responsibilities

• Seller’s Place of Performance

• Pricing

• Payment Terms

• Place of Delivery

• Inspections and Acceptance

Criteria

• Warranty

• Product Support

• Limitation of Liability

• Fees and Retainer

• Penalties

• Incentives

• Insurance and Performance Bonds

• Subordinate Subcontractor

Approvals

• Change Request Handling

• Termination Clause

• Alternative Dispute Resolution (ADR) Mechanisms

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12.3 Control Procurements

Inputs

•Project Management Plan

•Procurement Documents

•Agreements

•Approved Change Requests

•Work Performance Data

•Work Performance Reports

Tools & Techniques

•Contract Change Control System

•Procurement Performance Reviews

•Inspection and Audits

•Performance Reporting

•Payment Systems

•Claims Administration

•Records Management System

Outputs

•Work Performance Information

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Organizational Process Assets Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is the process of ensuring the contracts are performing as per the defined terms and conditions in the contract.

Suitable adoptions to the contract and performance related corrective/preventive actions being taken to ensure the end contract is useful towards the project objectives.

Key benefit of this process is that it ensures the defined contractual obligations (legal) are met by the seller and the buyer meets the defined contractual price definitions.

In most situations on the large projects, the procurement related activities are managed/controlled by Administrative team and

Project Management team supplements them with information needed.

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Contract Change Control System

It is used to ensure the contract

changes required are recorded,

decisions taken and adopted in to the

contract to perform as per new

approved changes to the contract.

All payments related to the contract

are authorized after satisfactory

performance of the work to be done

by the seller. Payment schedules are in

strict accordance as defined in the

contract.

Payment Systems

Procurement Performance Reviews

Reviews are performed during the monitoring and controlling to ensure

the performance of the awarded

contract are inline with the legal

contractual obligations.

Seller is monitored on the various

contract parameters which may

include the cost, scope, timeline,

quality and performance as detailed in

the contract.

All contentious issues are brought to

resolution with seller and buyer

consensus. Issues not resolved may be

subject to a third party arbitrator

service.

Claims Administration

All records pertaining to the contract

are recorded, stored in a information

management system which also allows

for retrieval of the information as

needed.

Records Management Systems

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12.4 Close Procurements

Inputs

•Project Management Plan

•Procurement Documents

Tools & Techniques

•Procurement Audits

•Procurement Negotiations

•Record Management Systems

Outputs

•Closed Procurements

•Organizational Process Assets Updates

•Integration

•Close Project Or Phase

•Scope

•Time

•Cost

•Quality

•Human Resource

•Communications

•Risk

•Procurement

•Stakeholder

•Close Procurements

Closing Process

This is the process of ensuring formal closure of the

contract and the relevant procurement processes are

brought to close.

One aspect of close procurements is to document

performance of seller as Organization Process Asset which

helps future engagement of seller for other projects by

buyer.

Key benefit of the process includes the Formal closure of

the Contract. This may also include the Contract

Termination as the contract may have not materialized

the defined objectives of the contract.

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Chapter 12 - Debrief

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THIS BRINGS TO “PROCUREMENT MANAGEMENT” COMPLETION.

From what we have understood so far is:

4 Procurement Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 12

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Stakeholder

Management

Chapter 13

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Chapter 13

Objectives

Understand the different Stakeholder

Management Processes

Their Inputs, Tools and Techniques, Outputs

This chapter entails one to understand the various Stakeholder Management aspects required to ensure the desired information flows across the project team

and stakeholders.

Managing the expectations and continuously refining the project in tune with the stakeholder needs as per

project objectives make the project successful!

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It includes processes to ensure identification of

stakeholders, effective communication,

engagement of them across project to garner

their support/decisions for execution and

success of project objectives.

Stakeholder Engagement towards their

Satisfaction is by default one key project

objective for project success.

Each Project Stakeholder will exert their

influence on the project in one or the other

manner.

Identifying key stakeholders, understanding their

needs along with the relationships within

themselves is one area, a Project Manager has

to keep close watch to develop strategies to

ensure the stakeholders are in favor of project

objectives.

Knowledge Area: Stakeholder Management

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There are 4 Stakeholder Management processes:

1. Identify Stakeholders

Identification of key stakeholders before the project starts, during the

project kick off and the project execution to closure is critical towards

the stakeholders engagement rightly and avoid the project being

jeopardized.

2. Plan Stakeholder Management

Planning to engage identified stakeholders by understanding their

implicit & explicit needs on the project along with development of

strategies to transition them towards project needs.

3. Manage Stakeholder Engagement

Managing stakeholder information needs, their aspirations &

expectations during the project course along with resolution of any

conflicts among the stakeholders.

4. Control Stakeholder Engagement

Controlling Stakeholders across the project duration to ensure the

stakeholders are active, supportive to the project needs and success.

Knowledge Area: Stakeholder Management

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13.1 Identify Stakeholders

Inputs

• Project Charter

• Procurement Documents

• Enterprise Environmental Factors

• Organizational Process Assets

Tools & Techniques

• Stakeholder Analysis

• Expert Judgment

Outputs

• Stakeholder Register

• Stakeholder Management Strategy

• Integration

• Develop Project Charter

• Scope

• Time

• Cost

• Quality

• Human Resource

• Communications

• Risk

• Procurement

• Stakeholder

• Identify Stakeholders

Initiating Process Identification of parties, internal or external, with stake

in project & document their individual interests,

involvement and influence over the project.

Completion of this process ensures Project manager

has complete view of each individual stakeholder

and can respond or cater his/her time accordingly.

This Process needs to be completed before ―develop

project charter‖ to ensure the charter is developed

with right set of stakeholders & their interests in view.

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Stakeholder Analysis Project Manager’s can practically apply

the Stakeholder Analysis as a technique

performed in 3 different steps to engage

stakeholders from before start of the

project to until it is being closed out.

1. Identify Stakeholders to identify all

the key or otherwise stakeholders

both quantitatively and qualitatively.

2. Identify Potential Impact to

understand each stakeholders

power & interest level in project.

3. Assess reaction & response of key

stakeholders in various situations,

anticipate and prepare an

approach to effectively mitigate the

potential negative impact to the

project.

Four Methods of Stakeholder Analysis: 1. Impact Vs Influence 2. Power Vs Influence 3. Power Vs Interest 4. Salience Mode (Power, Urgency,

Involvement)

Impact Vs Influence

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Various Models of Stakeholder Analysis

Power Vs Influence Power Vs Interest

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Salience Model

Power Urgency

Involvement

Power Urgency

Urgency

Urgency

Involvement Involvement Power

Power

Involvement

Salience Model depicts Stakeholder Analysis representation across three areas: – Power, Urgency, Involvement

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One of the key outputs of Identify stakeholders process is the

Stakeholder Register. This register(document) contains all

details related to the identified stakeholders:

Identification Information

Name, organizational position, location, role in the project,

contact information

Assessment Information

Major requirements, main expectations, potential

influence in the project, phase in the life cycle with the

most interest

Stakeholder Classification

Internal/external, supporter/neutral/resistor, etc.

The register should be consulted and updated on an ongoing

basis, as stakeholders may change — or new ones identified —

throughout the life cycle of the project.

Stakeholder Register

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13.2 Plan Stakeholder Management

Inputs

•Project Management Plan

•Stakeholder Register

•Enterprise Environmental Factors

•Organizational Process Assets

Tools & Techniques

•Expert Judgment

•Meetings

•Analytical Techniques

Outputs

•Stakeholder Management Plan

•Project Document Updates

•Integration

•Develop Project Management Plan

•Scope

•Plan Scope Management

•Collect Requirements

•Define Scope

•Create WBS

•Time

•Plan Schedule Management

•Define Activities

•Sequence Activities

•Estimate Activity Resources

•Estimate Activity Duration

•Develop Schedule

•Cost

•Plan Cost Management

•Estimate Costs

•Determine Budget

•Quality

•Plan Quality Management

•Human Resource

•Plan HR Management

•Communications

•Plan Communications Management

•Risk

•Plan Risk Management

•Identify Risks

•Perform Qualitative Risk Analysis

•Perform Quantitative Risk Analysis

•Plan Risk Responses

•Procurement

•Plan Procurement Management

•Stakeholder

•Plan Stakeholder Management

Planning Process

This is the process to establish mechanisms to engage

stakeholders towards the project success.

Key benefit of this process is to ensure the clear, actionable

plan to interact with project stakeholders to support projects

interests.

Engaging stakeholders effectively to gain maximum support

and key decisions at critical points from stakeholders or group

of stakeholders is essence of Plan Stakeholder Management.

Stakeholder engagement is a continuous process to establish

how the relationships can be sustained, exploited and

harnessed for the benefit of the success of the project

outcome.

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Engagement levels of the

Stakeholders and Stakeholder groups

need to be defined and compared

to the planned engagement levels

using a Stakeholder Engagement

Assessment Matrix.

Different nature of behaviors of

Stakeholders can be observed as

shown such as Leading, Supportive,

Neutral, Resistant, Unaware.

Stakeholders ↓ Unaware Resistant Neutral Supportive Leading

Ramya C D

Shilpa C D

Roopa C D D

Jaya C D

C – Current Engagement Level D – Desired Engagement Level

Engagement

Levels

Unaware

Resistant

Neutral Supportive

Leading

Analytical Techniques

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It is often required and is also a best practice to have project stakeholders engaged effectively. All these strategies documented constitute this plan.

Based on the project needs a high level document or a granular scale plan with strategies and actions defined.

Having a defined strategy based on which project manager can act to engage stakeholders will result in increase of probability of project being

successful.

Once established, due diligence should be taken to ensure the stakeholder management plan is updated continuously and the underlying assumptions are validated to ensure continued accuracy and relevancy.

Typical Stakeholder Management Plan would consist of:

Desired & current key stakeholder engagement level

Scope and impact of change to stakeholders

Identified interrelationships and potential overlap between stakeholders

Communication Requirements for current phase

Information dissemination format, language, content, level of detail, timeframe, frequency

Expected impact for stakeholders, Actions required by stakeholders and so on

Stakeholder Management Plan

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13.3 Manage Stakeholder Engagement

Inputs

•Stakeholder Management Plan

•Communications Management Plan

•Change Log

•Organizational Process Assets

Tools & Techniques

•Communication Methods

•Interpersonal Skills

•Management Skills

Outputs

•Issue Log

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Organizational Process Asset Updates

•Integration

•Direct and Manage Project Work

•Scope

•Time

•Cost

•Quality

•Perform Quality Assurance

•Human Resource

•Acquire Project Team

•Develop Project Team

•Manage Project Team

•Communications

•Manage Communications

•Risk

•Procurement

•Conduct Procurements

•Stakeholder

•Manage Stakeholder Engagement

Executing Process It is the process of engaging the

stakeholders over the course of

the project to gain their support

and increase the chances of

meeting the project objectives.

Key benefit is it helps to increase

the stakeholder confidence levels

and build their support towards

the project objectives while

minimizing their resistance levels

during the changes.

Activities to manage stakeholders

engagement involves:

Engaging the stakeholders at the

suitable stages of discussions and

keeping them informed about the

potential achievements and

upcoming threats

Continuous communication and

open discussions with the

stakeholders to ensure their

support towards the project

objectives

Understand & resolve the

potential concerns or threats or

risks that they foresee and provide

them required information at

requested intervals

Actively engaging stakeholders

ensure the project changes are

smooth and appropriately acted.

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13.4 Control Stakeholder Engagement

Inputs

•Project Management Plan

•Issue Log

•Work Performance Data

•Project Documents

Tools & Techniques

•Information Management Systems

•Expert Judgments

•Meetings

Outputs

•Work Performance Information

•Change Requests

•Project Management Plan Updates

•Project Document Updates

•Organizational Process Assets Updates

•Integration

•Monitor and Control Project Work

•Perform Integrated Change Control

•Scope

•Validate Scope

•Control Scope

•Time

•Control Schedule

•Cost

•Control Costs

•Quality

•Control Quality

•Human Resource

•Communications

•Control Communications

•Risk

•Monitor & Control Risks

•Procurement

•Control Procurements

•Stakeholder

•Control Stakeholder Management

Monitoring & Controlling Process

It is the process of effectively engaging stakeholders and managing stakeholder relationships with adjusting the communication needs and stakeholder relationships.

Adjusting the stakeholder management plan and strategy ensures the stakeholders are rightly identified, their individual objectives

and motivations inclined towards the project are considered at all stages of the project execution.

Individual stakeholders may be supportive, resistive, neutral during the execution of the project. Project Management Team is responsible to identify such intentions of the stakeholders and transition them towards the project benefits.

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Chapter 13 - Debrief

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THIS BRINGS TO “STAKEHOLDER MANAGEMENT” COMPLETION.

From what we have understood so far is:

4 Stakeholder Management Knowledge Area Processes

Identified their Inputs, Tools & Techniques, Outputs

Chapter 13

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Professional & Social

Responsibility

Chapter 14

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Chapter 14

Objectives

Understand PMI® Code of Ethics, Professional &

Social Responsibility

Understand the nature of activities a project

manager has to be mindful of across the

project process groups

This chapter entails one to understand the ethics one should be aware of and to lead projects in the right direction with right sense.

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PMI® code of ethics are classified into 4 Values:

Each of the above value is again performed with Aspirational & Mandatory Standards.

Aspirational: Strive to uphold as practitioners. Although not easily measured, conducting in accordance with these standards is an expectation, not an option.

Mandatory: Establish firm requirements & in cases, limit or prohibit practitioner behavior. Non-compliance will result in disciplinary procedures from PMI.

Value Description

Responsibility

Duty to take ownership for decisions we make or fail to make, the actions we take or fail to take, and subsequent consequences that result.

Respect Duty to show high regard for every resource including oneself. Resources entrusted to us may include people, money, reputation, the safety of others, and natural or environmental resources.

Fairness Duty to make decisions, act impartially and objectively. Our conduct must be free from competing self interest, prejudice, and favoritism.

Honesty

Duty to understand truth and act in truthful manner both in our communications and in our conduct.

Professional & Social Responsibility

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Be Mindful: 1. Validate that the project is

formally authorized before

beginning any project work

2. Exercise the right to refuse, to

start the project until it is

formally authorized by signed

project charter

3. Validate that Contract is being

signed before beginning the

work, if being performed for

an external customer

4. Validate that project is

contributing to strategic goals

of the organization

5. Identify and determine all

affected stakeholders by the

project, could be both internal

and external

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Be Mindful: 6. Ensure the most possible accurate

estimates are developed with the

information at hand in planning

7. Develop Communication plan to inform

appropriate stakeholders with timely &

accurate information along with

periodic status reports

8. Ensure detailed subsidiary project

management plans are developed &

evolved in all areas with necessary

information & attributes is included

9. Have a human resource management

plan with strategy to motivate project

team and maximize the resource

efficiency

10. Clearly demonstrate your planning by

having a clearly laid out approach for

upcoming changes, how they will be

handled & addressed to be adapted or

delayed or closed

11. Obtain necessary management

approvals on all the project

management plans & make it

accessible for the stakeholders

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Be Mindful: 12. Communicate Project Status with

Transparency, Accuracy & Timeliness to

Stakeholders as desired by them

13. Adhere to the Organizational & Legal

procurement practices, with project manager

making every effort to sort out any ambiguities

14. Award the Contract to the legitimate bidder

based on the defined evaluation criteria

including the performance assessment

15. Include appropriate clauses, terms and

conditions in the contract to protect both seller

and buyer with known and unknown risks

16. Drive project leadership with project staff by:

Encouraging cultural exchange, cultivate

harmony

Acting free of any bias/prejudice, be fair to

everyone

Foster positive environment to encourage team

come up to you and talk of any misappropriate

happenings

Provide necessary knowledge, skills and tools

for team to work efficiently & effectively

Recognize and reward the team for their good

work

Provide corrective & constructive feedback in

case of non-delivery

Act and/or Escalate disciplinary issues

immediately to right authority

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Be Mindful: 17. Communicate stakeholders the

changes in pipeline for approval

upfront before CCB and follow-up

with them for further actions as

appropriate

18. Inform Stakeholders about the

approved changes, implemented

corrective & preventive actions,

defect repairs

19. Deviations or variances from the

actual baselines and the

transparent reasons

20. Project deliverables are always

verified and/or validated for the

Quality

21. Proactively engage with

stakeholders or brainstorm to

identify the potential risks

22. Validate the base assumptions and

continuously check for the

constraints applicable across all

phases of project

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Be Mindful: 23. Project is formally closed after

check on the deliverables, release

payments, release resources

24. Stakeholders are made to

understand further business

opportunities and/or risks which

may arise due to project

completion

25. Honest and transparent feedback

on the Seller upon Contract

Closure and/or Termination

26. Captured lessons learnt are

shared to the stakeholders and

stored as Organizational Process

Assets

27. Evaluation of the Project

Performance at the closing and

formal acknowledgement by

stakeholders

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Start being Proactive, then Reactive and with Correction actions on all sorts of questions including the Professional & Social Responsibility.

Proactive:

Define Problem in detail.

Validate Problem

Collect Evidence

Perform Own Research

Discuss with the fellow Project Managers

Identify other sources of confirmed information

Talk directly to the source of problem

Conclude with a Problem confirmation

Act on the Problem

Start first with the action on the Problem Source

If not resolved, move to the Internal Project Team Management

If not resolved, move to the Internal Organization Management

If not resolved, move to the board of the Organization

If not resolved, move to the regulatory authority of Government

If not resolved, escalate to the Government escalation channels

Reactive

Corrective

Answering Questions:

Professional & Social Responsibility

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Chapter 14 - Debrief

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THIS BRINGS TO “PROFESSIONAL & SOCIAL RESPONSIBILITY” COMPLETION.

From what we have understood so far is:

PMI Code of ethics – Values

Project Management related tasks for each Process group

Chapter 14

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PMP® Exam Preparation

Essentials

Chapter 15

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Chapter 15

Objectives

Learn few special considerations about how to

participate in the exam

Apply some of the tips, tricks and the way the

questions need to be understood

This chapter entails one to understand few special considerations one has to follow to increase the chances of being successful to start thinking the PMI® way.

Also, a couple of tips, tricks and generic information which need to be kept in purview when participating in the exam itself.

Following the chapter will increase the likelihood of one being success at the PMP® exam.

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What does the exam test?

Your knowledge to apply the

concepts

Your understanding & interpretability of the concepts

Your ability to judge professionally &

ethically correct and act

Your conscience to think in the right

manner & direction

Is that it?

Guess not! Exam also tests your

ability to take stress mentally, and your preparedness physically to sit

long hours and complete the exam.

Exam Preparation

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Just before the exam & on exam day!

Ensure to relax yourself on the day before exam and not get your mind occupied with last minute knowledge hazards

Have sufficient breakfast or meal so that you are not hungry during the exam. Reach venue at least 1 hour in advance to your exam schedule time and ensure

your mind is relaxed to kick start on the minute of your exam

Plan ahead & time your breaks during the exam. You will definitely need to take breaks according to your comfort. We recommend 2 breaks of 10 minute and 10 minute in your exam schedule after every lot of questions

Understand exam questions are situational based…..

Exam Taking Strategy:

1st Strategy:

Set of 80 → 10 min break → set of 80 → 10 min break → set of 40 + review leftover questions

2nd Strategy:

1st Hour - Any question within 30 seconds answerable goes here. Answer all possible simple questions, skip lengthy, skip mathematical, skip complicated questions

2nd Hour – Any question within 100 seconds answerable must go here. Rest any kind of question, push to next round

3rd & 4th Hour – All possible questions and left over questions.

Exam Strategy (Have Strategy to Pass)

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How many of you like Mathematical Questions?

There may be 8-10 formula related questions on average!

Of this 8-10 questions, you should be anticipating at least 3-5 questions with direct application on questions.

Kindly ensure to mark them for review if you would think that it will take more than 40 seconds to answer such questions.

For the questions with direct formula based application, if you can identify that it is a straight forward calculation – attempt.

Please understand you are in the exam to answer many correct questions not just only a subset of questions.

Finally, be conscious of your Exam time. Think which one would you prefer?

4-5 Mathematical Questions spending 10-20 Minutes time OR

15-20 Questions spending the same 10-20 Minutes time in exam

Mathematical Exam Preparation

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During exam, pay attention to key words importantly:

―NOT‖ ―NO‖ ―NEVER‖ ―Less‖ ―ALWAYS‖ ―MOST‖

―LEAST‖ ―BEST‖ ―LAST‖ ―FIRST‖ ―EXCEPT‖ and so on for

every question, before you click the answer correct

During exam, do not expect every answer to mean

something to you. There is a lot of crap answers which

does not mean anything at all. Examples:

―Performance Oriented Risk Analysis‖

―Continuous Periodic Quality Margin‖

―Simplistic Estimation Technique‖

―Extensive Performance Implementation‖

Exam Attention

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Parkinson’s Law – ―work expands so as to fill the time available for its completion‖

Multi Tasking on Activities – Best Approach. One Task at a Time Per Resource.

Buffer on Activities – should not be considered. If considered feeding buffers and/or project buffer should be considered for tradeoff on uncertainty.

8/80 Rule – Best Practice of making Work

Packages realistic. Plan 8hours of work per day per resource for 80hours(2 weeks) per work package.

Heuristics – Typically refer to Rule of Thumb actions applied in the Project context. Such as 8/80 in a Project.

Sunk Costs – Costs which are incurred on the project, which will not be recovered. Also the costs not fruitful for Project anymore.

Ethnocentrism – Belief of one’s own culture and values are far superior than other culture and values.

Monopoly – A situation in market/business, where the dominance/control is by one

single company.

Oligopoly – More like a Monopoly, but controlled by at least 2 or small groups of companies.

Gold Plating – is act of giving the customer more than what originally asked for.

Zeigarnik Effect – Project managers may remember tasks in progress better than recently completed tasks

Halo Effect – People may have be doing a great job. However, one task not done by the team, can create a Halo effect in mind of the person evaluating performance that all tasks are also not done effectively by people.

Extra Terms & Tips on Subject

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―Force majeure‖ is a kind of clause that you’ll see in a contract. It says that if something like a war, riot, or natural disaster happens, you’re excused from the terms of the contract.

Phase exit: As and when there are Project Phases completed, a review point of deliverables, finance accounting and many such activities, almost as good as Project Closure is performed.

Kill point: The tolerance level at which the

Project is going to be terminated with no further intimation automatically. This can be at Milestone, Phase completion, or any other juncture of the Project progress.

Stage gate: In many projects, stage gates are established for the Milestone reviews.

These gates are Control points and move forward and/or Go-No Go Decision points.

Gantt Chart: Pictorial representation of the Project plan or progress chart.

Opportunity Cost is the Opportunity which we are not able to invest in due to shortage of funds/resources/whatever.

Take an example, Organization has $10000 Budget. This can be invested for

Projects.

Project A if invested will give us benefits of $15000. Project B if invested will benefit us by $12000. Naturally, we would invest in the Project A to realize $15000.

Since we invested here, we do not have

any Budget left to invest in Project B, hence we have lost an Opportunity of $12000. This $12000 is referred to as Opportunity Cost.

Extra Terms & Tips on Subject

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• Basic Assumptions for Exam:

– Consider Working always in a Balanced Matrix Organization without

mention as well

– Consider a project managers role always to be in the centre stage, on

one side a client exists and on the other side a vendor exists

– Exam questions are scenario based, as if you are present in that

situation. Consider you have done perfect planning, perfect execution,

perfect monitoring, perfect controlling for every question scenario.

• Follow these, this helps in Exam:

– Memorize any difficult formulae and write them down in the white sheet

in exam hall

• Remember Cost Management!

– Project Budget = Approved Money for Work + Contingency Reserve +

Management Reserve

Boost your chances to Pass PMP in 1st Attempt

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Earned Value Management (EVM)

EV = 𝑃𝑉

𝐴𝐶

CV = EV – AC

SV = EV – PV

CPI = 𝐸𝑉

𝐴𝐶

SPI = 𝐸𝑉

𝑃𝑉

TCPI =

𝐵𝐴𝐶𝐸𝑉

𝐵𝐴𝐶𝐴𝐶

EAC (no variances) = 𝐵𝐴𝐶

𝐶𝑃𝐼

EAC (with variances) = AC + ETC

EAC (typical) = AC + ( BAC – EV )

EAC (atypical) = AC + 𝐵𝐴𝐶 −𝐸𝑉

𝐶𝑃𝐼

ETC = EAC – AC

VAC = BAC – EAC

𝐶𝑃𝐼𝐶 = 𝐸𝑉𝐶

𝐴𝐶𝐶

Percent Complete = 𝐸𝑉

𝐵𝐴𝐶 * 100

Project Selection

PV = 𝐹𝑉

(1+𝑟)𝑛

FV = PV * (1 + 𝑟)𝑛

Highest NPV number wins.

Highest IRR number wins.

Highest ROI number wins.

Lowest Payback Period number wins.

Payback Period = 𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑒𝑑 𝐶𝑎𝑠𝑕 𝐼𝑛𝑓𝑙𝑜𝑤 − 𝐸𝑥𝑝𝑒𝑛𝑠𝑒𝑠𝑖=0

𝐵𝐶𝑅 = 𝐵𝑒𝑛𝑒𝑓𝑖𝑡

𝐶𝑜𝑠𝑡

C𝐵𝑅 = 𝐶𝑜𝑠𝑡

𝐵𝑒𝑛𝑒𝑓𝑖𝑡

Opportunity Cost = Value of project not being chosen

Communications

Number of Communication Channels = 𝑛 ∗ (𝑛−1)

2

Risk

Expected Monetary Value(EMV) = 𝑃 ∗ 𝐼

Procurement

Point of Total Assumption(PTA) =

𝐶𝑒𝑖𝑙𝑖𝑛𝑔 𝑃𝑟𝑖𝑐𝑒 −𝑇𝑎𝑟𝑔𝑒𝑡 𝑃𝑟𝑖𝑐𝑒

𝐵𝑢𝑦𝑒𝑟𝑠 𝑆𝑕𝑎𝑟𝑒 𝑅𝑎𝑡𝑖𝑜+ 𝑇𝑎𝑟𝑔𝑒𝑡 𝐶𝑜𝑠𝑡

PV – Present Value FV- Future Value r – Interest rate n – time period NPV – Net Present Value ROI – Return on Investment IRR – Internal Rate of Return BCR – Benefit Cost Ratio CBR – Cost Benefit Ratio

CV – Cost Variance SV – Schedule Variance AC – Actual Cost PV – Planned Value CPI – Cost Performance Index SPI – Schedule Performance Index EAC – Estimate at Completion BAC – Budget at Completion TCPI – To Complete Performance Index

ETC – Estimate to Complete EV – Earned Value VAC – Variance at Completion

C – Cumulative

P – Probability I – Impact

Armadillo Consultants

Benefit Cost Ratio BCR >1 Means Better Benefit Cost Benefit Ratio CBR <1 Means Better Benefit

Formula’s Snapshot

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Hard Values

1 sigma = 68.26%

2 sigma = 95.46%

3 sigma = 99.73%

6 sigma = 99.99% (3.4 Defects Per Million Opportunities)

Control Limits = 3 sigma from mean

Control Specifications = Defined by customer

Rough Order of Magnitude(ROM) estimate =

-25% to +75%

Preliminary estimate = -15% to + 50%

Budget estimate = -10% to +25%

Definitive estimate = -5% to +10%

Final estimate = 0%

Float on the critical path = 0 days

Pareto Diagram = 80/20

Crashing a project = Crash least expensive tasks on critical path

Time Project Manager Communicates >= 90%

Network Diagram

Activity Duration = EF – ES

OR

Activity Duration = LF – LS

Total Float = LS – ES

OR

Total Float = LF – EF

Free Float(FF) =

ES of following – ES of Present – DUR of Present

EF = ES + Duration

LF = LS + Duration

ES = EF of Predecessor

LS = LF – Duration

Arithmetic Calculations

Average(Mean) =

𝑆𝑢𝑚 𝑜𝑓 𝑡𝑕𝑒 𝑁𝑢𝑚𝑏𝑒𝑟𝑠

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝐼𝑡𝑒𝑚𝑠

Median = Arrange all the values in order and pick the middle number. In case of two middle number, take mean of two numbers.

Mode = Most occurring number in dataset

PERT(Program Evaluation and Review Technique) for Cost or Duration

3 Point Estimate for Cost or Duration = 𝑃 + 4𝑀+ 𝑂

6

Standard Deviation = 𝑃 −𝑂

6

Variance of an activity = * 𝑃 −𝑂

6 + 2

P – Pessimistic Value M – Most Optimistic Value O – Optimistic Value

EF – Early Finish ES – Early Start LF – Late Finish LS – Late Start

Formula’s Snapshot

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Acronyms AC Actual Cost

BAC Budget at Completion

BCR Benefit Cost Ratio

CBR Cost Benefit Ratio

CPI Cost Performance Index

CV Cost Variance

DUR Duration

EAC Estimate at Completion

EF Early Finish

EVM Earned Value Management

EMV Expected Monetary Value

ES Early Start

ETC Estimate to Complete

EV Earned Value

FV Future Value

IRR Internal Rate of Return

LF Late Finish

LS Late Start

NPV Net Present Value

PERT Program Evaluation Review Technique

PTA Point of Total Assumption

PV Planned Value

ROI Return on Investment

SPI Schedule Performance Index

SV Schedule Variance

TCPI To Complete Performance Index

VAC Variance at Completion

Sigma

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Chapter 15 - Debrief

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THIS BRINGS TO “PMP® EXAM PREPARATION ESSENTIALS” COMPLETION.

From what we have understood so far is:

Exam Preparation Strategy

Exam Taking Strategy

Exam Questions Answering

Chapter 15

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What is your take away from this 3 days of investment?

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Your key ―take‖ from 3 days of investment!

YOU ARE CHARGED AND

MOTIVATED IN

THE DIRECTION YOU

CHOSE RIGHT AND NOW HAVE A

GAME PLAN IN PLACE,

YOU WILL WORK TOWARDS IT

AND ACHEIVE YOUR

DEFINED SUCCESS.

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!Smile for Group Photo!

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One last action before you run to get your PMP certification!

PAT YOUR OWN BACK & PAT OTHER’S TOO!

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