Pmpstudynote 1234677397158703 1

1 PROJECT MANAGEMENT FRAMEWORK
Definition of a Project : Temporary endeavour with a beginning and an end. Creates a unique product, service or result. Is pro re!!i"e#y elaborated-distinguishing characteristics of each unique project will be progressively detailed as the project is better understood $o% Temporary & Has a 'efinite (e innin an' en' and not an ongoing effort. Cea!e! when objective has been attained. ea! is 'i!(an'e' upon project co!pletion. $o% )nique & "roduct c*aracteri!tic! are progressively elaborated. he product or service is different in so!e way fro! other product or services. E+amp#e #uilding a road is an e$a!ple of a project. he process of building a road ta%es a finite a!ount of ti!e, and produces a unique product. &perations on the other hand are repetitive. 'enerating bills every !onth, and broadcasting news everyday are e$a!ples of operations. Pro re!!i"e e#a(oration is a characteristic of projects that acco!panies the concepts of temporary and unique. !eans developing in !tep!, and continuin (y increment!. !*ou#' not (e confu!e' %it* !cope creep. needs to be carefully coordinated with proper project ,cope Definition, particularly if the project is perfor!ed under contract. (or e$a!ple, ite!s !ight be described in broad ter!s at the start of the project but be defined in detailed ter!s by the conclusion of the project ) fro! the "reli!inary "roject *cope *tate!ent to the "erifie' "roject *cope *tate!ent supported by a 'etai#e' W-,. +anaging a project includes 1, identifying require!ents -, establishing objectives ., balancing scope, ti!ing and cost /, adapting the plan to different concerns of sta%eholders. "roject !anagers or the organi0ation can divide projects into above p*a!e! to provide better !anage!ent control with appropriate lin%s to the ongoing operations of the perfor!ing organi0ation. Collectively, these phases are %nown as the project #ife cyc#e. Product Life Cycle : 1 collection of generally !equentia#, nono"er#appin product phases whose na!e and nu!ber are deter!ined by the !anufacturing and control needs of the organi0ation. he last product life cycle phase for a product is generally the product2s deterioration and death. 'enerally, a project life cycle is contained within one or !ore product life cycles. he product life cycle is 3above4 the project life cycle ) it includes operation! 5 'e"e#opment 6which occur AFTER the project has been co!pleted, and include the business plan, which starts -EFORE the project begins. Project Life Cycle : 1 collection of generally !equentia# project phases whose na!e and nu!ber are deter!ined by the control needs of the organi0ation or organi0ations involved in the project. 1 life cycle can be docu!ented with a met*o'o#o y. he project life cycle includes the phases necessary to wor% a project from (e innin to en'. he transition fro! one phase to another is generally recogni0ed by so!e %ind of a 'e#i"era(#e or *an'off. hese phases generally define 1, wor% to be done that phase -, when deliverables are generated ., resources used in each phase /, control of each phase Project Phase : 1 collection of logically re#ate' project acti"itie!, usually cul!inating in the co!pletion of a !ajor deliverable. "roject phases 6also called phases, are !ainly comp#ete' !equentia##y, but can o"er#ap in so!e project situations. "hases can be subdivided into sub-phases and then
the reason for the ris% process group is to en*ance opportunitie! and re'uce t*reat! to the project objectives things that could negatively i!pact the project objectives, such as ris% and sta%eholders7 influence should be %atc*e' an' trac/e' projects often require trade-off between the project require!ents and the project objectives project objectives are 'etermine' in t*e 0nitiatin process group and refine' in t*e P#annin process group one of the purposes of the develop project !anage!ent plan process is to 'etermine *o% %or/ %i## (e accomp#i!*e' to !eet project objectives
Difference between Project! an' Operation! &perations are on oin and repetiti"e where as "rojects are unique and nonrepetitive. 8or!al operations would produce !tan'ar' pro'uct or service where as "rojects would produce unique pro'uct or service "rojects are temporary and have defined start and end where as operations are in'efinite and don7t have a defined start and end. Project! are e+ecute' (y a *etero eneou! team! %*ere a! operation! may (e e+ecute' (y *omo eneou! team!. Con!traint or 1Trip#e Con!traint!1 "roject constraints are ti!e, cost, ris%, scope, or any other factors that li!it options. riple constraints include cost, scope, ti!e, quality, ris%, 5 sta%eholder satisfaction. "roject !anager !et! t*e priority of eac* of t*e component of riple Constraints throughout the project. 9uality, cost, schedule, scope, ris%, 5 other factors !ay be prioritised 'ifferent#y on each project. It is the project !anager7s re!pon!i(i#ity to analyse the Change :equests fro! sta%eholders, !anagers, 5 others, and identify the i!pacts to all co!ponents of the ;triple constraint; through 0nte rate' C*an e Contro#. Area of E+perti!e 1 %ey area of e$pertise for a project !anager is un'er!tan'in t*e project en"ironment. his can involve %nowing who the sta%eholders are, why the project is being done and what is the strategic plan of the perfor!ing organi0ation 6the co!pany or division of the co!pany doing the project,. ,ta/e*o#'er2 ,ta/e*o#'er Mana ement 1 sta%eholder is so!eone whose interests !ay be po!iti"e#y or ne ati"e#y i!pacted by the project. <ey sta%eholders include: the project !anager, custo!er, perfor!ing organi0ation, project tea!, project !anage!ent tea!, sponsor, and the "+&. =hat should we do with sta%eholders : i'entify 1>> of the!, to help create a better organi0ed project that !eets all the sta%eholders7 interests. deter!ine 1>> of their requirement2 -EFORE the wor% begins. deter!ine their e+pectation, that can be converted into require!ents. communicate with the! !anaging their influence 6 *i *e!t in the (e innin and progressively lower over ti!e ,. *ta%eholders !ust be in"o#"e' and their involve!ent !ust be mana e' by the project !anager. Conflict of interests between sta%eholder ? +ust be resolved in fa"our of t*e cu!tomer. "roject sta%eholders are individuals and organi0ations that are actively involved in the project or whose interests !ay be positively or negatively affected as a result of project e$ecution or project co!pletion. Key !ta/e*o#'er! on a project include: Project Mana er - the individual responsible for !anaging the project Cu!tomer - the individual or organi0ation that will use the project7s product. Project Team mem(er! - the group that is perfor!ing the wor% of the project Project mana ement team ) those who are involved in project !anage!ent activities. ,pon!or - the individual or group within or e$ternal to the perfor!ing organi0ation that provides the financial resources Performin or ani!ation 0nf#uencer - "eople or groups that are not directly related to the acquisition or use of the project2s product, but due to an individual2s position in the custo!er organi0ation or perfor!ing organi0ation, can influence, positively or negatively, the course of the project, I.e. CEO. PMO Or ani!ationa# ,tructure Functiona# he organi0ation is grouped by areas of !pecia#i3ation within different functional areas 6e.g., accounting, !ar%eting and !anufacturing,. he "roject +anager has #ea!t power 6 compare to !tron 4 %ea/ matri+ , and all !anage!ent is ta%en care by functiona#
co!ponents@ this hierarchy, if the project or portions of the project are divided into phases, is containe' in t*e W-,. 1 project phase is a co!ponent of a project life cycle. A project p*a!e i! not a project mana ement proce!! roup. 1 project phase generally concludes with a re"ie% of the deliverable and to deter!ine whether the deliverables are accepted or if !ore wor% needs to be done. 1fter each phase is co!pleted, authori0ation is generally needed to begin the ne$t phase of the project 6i.e. 3/i## point4 , 3p*a!e e+it4, or 3p*a!e ate4,. Definition of a Pro ram : a group of projects Pro ram Mana ement 1 progra! consists of a re#ate' group of projects and "rogra! +anage!ent is the process of !anaging !ultiple on going projects. 1n e$a!ple would be that of designing, !anufacturing and providing support infrastructure for an auto!obile !a%er. In so!e cases "roject +anage!ent is a !u(!et of "rogra! +anage!ent. he project !anager !ay report to the progra! !anager in such cases. 1 portfolio consists of mu#tip#e pro ram!. Portfo#io Mana ement 1 portfolio is a co##ection of projects or progra!s and other wor% that are grouped together to faci#itate effecti"e mana ement of that wor% to !eet strategic (u!ine!! o(jecti"e!. &rgani0ations !anage their portfolios based on specific goals. *enior !anagers or senior !anage!ent tea!s typically ta%e on the responsibility of portfolio !anage!ent for an organi0ation. Projecti!e' 1ll organi0ation is by projects. he project !anager has tota# contro# of projects, full authority to assign priorities, apply resources, and direct the wor% of persons assigned to the project. "ersonnel are assigned and report to a project !anager. Advantages Afficient project organisation. >oyalty to the project. +ore effective co!!unications than functional. Disadvantages 8o 3ho!e4 when project is co!pleted. Buplication of facilities and job functions. >ess efficient use of resources. mana er 5 #ine mana er 6 li%e !ar%eting engineer, sales engineer. Advantage Aasier !anage!ent of specialists. ea! !e!bers report to only one supervisor. *i!ilar resources are centrali0ed, the co!pany is grouped by specialities. Clearly defined career paths in areas of wor% speciali0ation. Disadvantages "eople place !ore e!phasis on their functional speciality to the detri!ent of the project. 8o career path in project !anage!ent . "roject !anager has little or no authority.
Matri+ his for! is an atte!pt to ma+imi3e the strengths and wea%nesses of both the functional and project for!s. he tea! !e!bers report to two bosses: the project !anager and the functional !anager 6e.5., C" Angineering, etc.,. Advantages Disadvantages
Highly visible project objectives A$tra ad!inistration required Project M mt Office 5 PMO or Pro ram Office 6 : an I!proved project !anager control over +ore than one boss for project tea!s organisational structure 6 a dept , that centra#i!e the resources +ore co!ple$ to !onitor and control !anage!ent of projects. Its role : +ore support fro! functional ougher proble!s with resource providing the po#icie!, met*o'o#o ie!, 5 temp#ate! for organisations allocation !anaging projects within the organisation. +a$i!u! utili0ation of scarce resources 8eed e$tensive policies and procedures providing !upport and ui'ance to others in the #etter coordination (unctional !anagers !ay have different organi0ation on how to !anage projects, training others in #etter hori0ontal and vertical priorities than project !anagers project !anage!ent or project !anage!ent software, disse!ination of infor!ation than Higher potential for conflict and assisting with specific project !anage!ent tools. functional providing project !anagers for different projects, and ea! !e!bers !aintain a ;ho!e; being re!pon!i(#e for the results of those projects 6all projects, or projects of a certain si0e, type or influence, are !anaged by this office,. In a !tron matri+, power rests with the project !anager. In a %ea/ matri+, power defined by its parent organi0ation, can vary fro! an rests with the functional !anager. he power of the project !anager is co!parable to a'"i!ory capacity to fu## aut*ority over projects. that of a coordinator or e$pediter. In a (a#ance' matri+, the power is shared between the functional !anager and the project !anager. "+& !ay : mana e the inter'epen'encie! between projects In a wea% !atri$, the project !anager7s role !ight be !ore of a : help pro"i'e re!ource! Project E+pe'iter, the project e$pediter acts pri!arily as a !taff a!!i!tant and terminate projects communication! coor'inator. he e$pediter CANNOT personally !a%e or help gather lessons learned and !a%e the! available to enforce decisions. other projects Project Coor'inator2 si!ilar to the project e$pediter e$cept the coordinator has provide temp#ate! 6i.e., for =#*, 5 ui'ance so!e power to ma/e 'eci!ion!, so!e aut*ority, and reports to a higher-level provide enterprise project !anage!ent software !anager. be !ore *ea"i#y in"o#"e' during project 0nitiatin than later in the project 0nterper!ona# ,/i##! he !anage!ent of interpersonal relationships includes: Project o(jecti"e! : Effecti"e communication : he e$change of infor!ation project objectives are contained in the Pre#iminary 0nf#uencin t*e or ani3ation : he ability to ;get things done; Project ,cope ,tatement and Project ,cope ,tatement 7ea'er!*ip : Beveloping a vision and strategy, and !otivating people to achieve projects are considered comp#ete when the objectives that vision and strategy have been met Moti"ation : Anergi0ing people to achieve high levels of perfor!ance and to a reason for terminatin a project before co!pletion is overco!e barriers to change that the project objectives cannot be !et Ne otiation an' conf#ict mana ement : Conferring with others to co!e to a !ore co!plete understanding of the objectives is ter!s with the! or to reach an agree!ent achieved over the length of the project Pro(#em !o#"in : he co!bination of proble! definition, alternatives it is the project !anager7s role to acco!plish the project identification and analysis, and decision-!a%ing. objectives
objectives should be clear and achievable the reason for qua#ity acti"itie! is to !a%e sure the project !eets its objectives
MAPP0NG
0nitiatin Proce!! Group 0nte ra Bevelop "roject Charter P#annin Proce!! Group Bevelop "roject +g!t "lan E+ecutin Proce!! Group Birect 5 +anage "roject Monitorin 8 Contro##in Proce!! Group C#o!in Proce!! Group
+onitor 5 Control "roject =or% Close "roject
.
tion ,cope Bevelop "reli!inary "roject *cope *tate!ent *cope "lanning *cope Befinition Create =#* 1ctivity Befinition 1ctivity *equencing 1ctivity :esource Asti!ating 1ctivity Buration Asti!ating *chedule Bevelop!ent Cost Asti!ating Cost #udgeting 9" H: "lanning Co!!unications "lanning 91 1cquire "roject ea! Bevelop "roject ea! Infor!ation Bistribution A$ecution Integrated Changed Control *cope Cerification *cope Control *chedule Control
Time
Co!t 9ua#ity $R Comm unicati on! Ri!/
Cost Control 9C +anage "roject ea! "erfor!ance :eporting +anage *ta%eholders :is% +onitoring 5 Control
:is% +g!t "lanning :is% Identification 9ualitative :is% 1nalysis 9uantitative :is% 1nalysis :is% :esponse "lanning "lan "urchases 5 1cquisitions :equest *eller "lan Contracting :esponses *elect *ellers
Procur ement
Contract 1d!inistration
Contract Closure
Project 0nte ration Mana ement :

+a%ing trade-off a!ong co!peting objectives 5 alternatives +a%ing c*oice! about where to concentrate resources 5 effort, anticipate 5 'ea#in with potential issues, coor'inatin wor% for overall project Mana in e+pectation *uccessfully meetin custo!er 5 sta%eholder requirement! Dnify, consolidate, articulate, 5 integrate actions for project co!pletion 1 group of processes required to ensure that the various ele!ents of the project are properly coor'inate'. are sa!e for all the processes 6 "roject +anage!ent +ethod, "roject +I*, 5 A$pert Eudge!ent ,, e+cept Bevelop "roject Charter has ;Project ,e#ection Met*o'!; and +onitoring and Control "roject =or% has ;Earne' ;a#ue Tec*nique;. 8o E+pert Ju' ement in Direct 8 Mana e Project E+ecution 6 this is because we are e+ecutin the "roject +anage!ent "lan ,.
his process involves Project Mana ement P#an 'e"e#opment2 Project Mana ement P#an e+ecution and 0nte rate' C*an e Contro#. In order to integrate the project co!ponents into a cohesive whole 6integration,, communication is %ey when one activity will interface with another, one tea! !e!ber will interface with another, and any other for! of interfacing. 1 project !anager !ust !anage a project. If A77 activities are 'e#e ate' 6 heFshe serves as an occa!iona# referee 5 coor'inator of activities ,, c*ao! ensues and tea! !e!bers will spend !ore ti!e joc%eying for position than co!pleting activities. 1 single *i *<#e"e# e+ecuti"e can en' an entire project if he or she is not satisfied with the results, even if that person has, by choice, been only tangentially involved in the project. It is critical to ensure that A77 of the fina# 'eci!ion ma/er! have been identified early in a project in order to ensure that their concerns are addressed. 1s the new project !anager who ta%e over a project fro! another project !anager, the (I:* thing to do if to 'e"e#op t*e mana ement !trate y.
0N0T0AT0NG
Bevelop "roject Charter Bevelop "reli!inary "roject *cope *tate!ent
P7ANN0NG
Bevelop "roject +g!t "lan
E=EC)T0NG
Birect 5 +anage "roject A$ecution
MON0TOR0NG 8 CONTRO770NG
+onitor 5 Control "roject =or% Integrated Changed Control
C7O,0NG
Close "roject
Project ,cope Mana ement :

Befine 5 control %*at i! an' i! not inc#u'e' in the project Constantly chec%ing to !a%e sure you are COMP7ET0NG A77 the wor% 8ot letting people rando!ly add to the scope of the project %it*out a structured C*an e Contro# ,y!tem +a%ing sure all changes fit within the Project C*arter Pre"entin e$tra wor% or gold plating *cope Befinition is 1"A* 6 1lternatives Identification, "roduct 1nalysis, A$pert Eudge!ent and *ta%eholder 1nalysis , *cope Cerification has only one which is 0n!pection. he only other place where you will find Inspection as is in 9ua#ity Contro# process.
Pro'uct !cope : the feature! 5 function! that c*aracteri!e a product. service, or result its co!pletion is !easured against the pro'uct requirement! !ay be supplied as a result of a pre"iou! project to deter!ine require!ents, or !ay be created as part of the project.
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results in a single product, but that product can include subsidiary co!ponents, each with its own separate, but interdependent, product scope. (or e$a!ple, a new telephone syste! would generally include four subsidiary co!ponentsGhardware, software, training, and i!ple!entation
Project !cope : the %or/ that needs to be acco!plished to 'e#i"er a product, service, or result with the specified features 5 functions its co!pletion is !easured against the Project Mana ement P#an 5 meetin !2 report!2 ana#y!i! 6, the Project ,cope ,tatement, 5 its associated W-, and W-, Dictionary. ,cope -a!e#ine 5 output of Create W-, 6 , is the Project ,cope ,tatement2 t*e W-, an' t*e W-, 'ictionary.
0N0T0AT0NG
P7ANN0NG
*cope "lanning *cope Befinition Create =#*
E=EC)T0NG
*cope Cerification *cope Control
C7O,0NG
Project Time Mana ement :

1cco!plish ti!ely co!pletion of the project Bocu!ented in the *chedule +anage!ent "lan, which is contained in, or is a subsidiary plan of, "roject +anage!ent "lan. 1ctivity 1ttributes is updated in all the process e$cept in Acti"ity Definition where it is created. +e!ori0e for *chedule Bevelop!ent 1ctivity Befinition are "A: B 6 "lanning co!ponent, A$pert Eudge!ent, :olling wave planning, e!plates, Beco!position , *chedule Control are "* "* "C 6 "rogress reporting, *chedule Change control *yste!, "erfor!ance +easure!ent, *chedule co!parison #ar charts, "+ software Cariance analysis ,
T*in ! a(out E!timatin : Asti!ating should be (a!e' on a W-, to i!prove accuracy and should be 'one (y t*e per!on 'oin t*e %or/ whenever possible i!e esti!ates for the activities should be create' (y t*e team and !*ou#' not (e a''e' 6 !ome acti"itie! may ta/e p#ace concurrent#y , $i!torica# information fro! past projects is a %ey to impro"in esti!ates 1 schedule baseline 6 and ti!e, scope, quality, 5 resource baselines , should be %ept and not changed e$cept for appro"e' project changes he schedule should be !anaged to the schedule baseline for the project Changes are approved in the 0nte rate' C*an e' Control Asti!ates are !ore accurate if !ma##er !i3e' %or/ component! are e!timate' Correcti"e 8 Pre"enti"e Action! should be recommen'e' when schedule proble!s 6 and cost, scope, quality, 5 resource proble!s , occur 1 project !anger should never just accept require!ents fro! !anage!ent, but rather ana#y!e the needs of the project, co!e up with hisFher own e!timate! and reconci#e any differences to produce realistic objectives 1 project !anager !ay continually calculate the esti!ate to co!plete for the project in order to !a%e sure there is adequate ti!e 6 and cost ,etc. , available for the project "lans should be revised 'urin co!pletion of the wor% "adding 6 adding so!e ti!e to the project esti!ate , is not an acceptable project !anager practice "roject !anager !ust !eet any agreed upon esti!ates ,c*e'u#e Mana ement P#an his plan includes: Astablish!ent of a !c*e'u#e (a!e#ine for !easuring against during the +onitoring 5 Controlling process group. Identification of performance mea!ure!, to identify variances early and identification of !c*e'u#e c*an e contro# procedures. "lanning for how !c*e'u#e "ariance! will be !anaged. his plan can help to : !a%e the schedule esti!ating process fa!ter by providing ui'e#ine! on how esti!ates should be !ade 6 hourly F daily esti!ation ,. deter!ine if a variance is over the allowable threshold and therefore !ust be acted upon 6 during Birect 5 +anage "roject A$ecution process , deter!ine the type! of report! required on the project relating to schedule.
,c*e'u#e (a!e#ine : the approved project schedule. &utput of *chedule Bevelop!ent he role of project !anager in esti!ating is to : provide the tea! with enou * info to properly esti!ate each activity let those doing the esti!ating %now how refined their esti!ates !ust be co!plete a sanity chec% of the esti!ates formu#ate a re!er"e 6 Contingency and +anage!ent , !a%e sure a!!umption! !ade during esti!ating are recor'e' for later review
Re!ource Ca#en'ar! - holiday, vacation, nor!al shift, etc. Input for 1ctivity Buration Asti!ates, *chedule Bevelop!ent and Cost #udgeting 1ctivity :esource Asti!ates have :esource Calendars as outputs. Project Ca#en'ar - it !ay not be possible to wor% on the site during certain periods of the year because of weather. is updated in *chedule Bevelop!ent.
0N0T0AT0NG
P7ANN0NG
1ctivity Befinition 1ctivity *equencing
E=EC)T0NG
*chedule Control
C7O,0NG
H
1ctivity :esource Asti!ating 1ctivity Buration Asti!ating *chedule Bevelop!ent
Project Co!t Mana ement :

"lan, esti!ate, budget, 5 control costs so that the project can be co!pleted %it*in t*e appro"e' (u' et. +ainly concerned with the co!t of t*e re!ource! nee'e' to co!plete schedule activity. *hould consider the effect of project decision on the cost of u!in 2 maintainin 2 an' !upportin the product, service, or result of the project. Considers the info require!ent of the project !ta/e*o#'er, which !easure the project costs in different ways and at different ti!es. &n a s!aller scope project, Cost Asti!ating 5 Cost #udgeting are so tightly #in/e' that they7re viewed as a !in #e proce!!. he ability to influence cost is reate!t at the early stages of the project, and this is why ear#y !cope 'efinition is critical. +e!ori0e (or Cost Asti!ating. :e!e!ber that this o"er#ap! with 1ctivity Buration Asti!ate process. Cost #udgeting has (unding >i!it :econciliation as which produces output "roject (unding :equire!ents Cost +anage!ent "lan is updated in Co!t E!timatin process
he i!e chapter tal%ed about the creation of acti"itie! 6 or !c*e'u#e acti"itie! , as s!aller co!ponents of wor% pac%ages. 'enerally, it is these that are co!t e!timate'. However, in a larger project, costs !ight be !ore practical to esti!ate and control at a higher level. his is called a contro# account and is one level higher than the wor% pac%age in the =#*. Co!t (a!e#ine: a ti!e-phased budget. &utput of Cost #udgeting. T*in ! a(out E!timatin : Asti!ating should be (a!e' on a W-, to i!prove accuracy and should be 'one (y t*e per!on 'oin t*e %or/ whenever possible $i!torica# information fro! past projects is a %ey to impro"in esti!ates 1 cost baseline 6 and schedule, scope, quality, 5 resource baselines , should be %ept and not changed e$cept for appro"e' project changes #udget should be !anaged to the cost baseline for the project Changes are approved in the 0nte rate' C*an e' Contro# Asti!ates are !ore accurate if !ma##er !i3e' %or/ component! are e!timate' Correcti"e 8 Pre"enti"e Action! should be recommen'e' when cost proble!s 6 and ti!e, scope, quality, 5 resource proble!s , occur 1 project !anger should never just accept require!ents fro! !anage!ent, but rather ana#y!e the needs of the project, co!e up with hisFher own e!timate! and reconci#e any differences to produce realistic objectives 1 project !anager !ay continually calculate the esti!ate to co!plete for the project in order to !a%e sure there are adequate funds 6 and ti!e ,etc , available for the project "lans should be revised 'urin co!pletion of the wor% "adding is not an acceptable project !anager practice "roject !anager !ust !eet any agreed upon esti!ates If the cost esti!ates is too *i * and need to be 'ecrea!e', the project !anager can loo% to cut qua#ity2 'ecrea!e ri!/2 cut !cope or u!e c*eaper re!ource! , and at the sa!e ti!e closely !onitoring the i!pact of changes on the project !c*e'u#e. 0nput to E!timatin : Project ,cope ,tatement, including any cost constraints W-, 8 W-, 'ictionary 6 the wor% to be done , Net%or/ 'ia ram 6 costs cannot be esti!ated until it is %nown how the project will flow fro! beginning to end , ,c*e'u#e Mana ement P#an 6 as it contains the type and quantity of resources needed to co!plete the wor% , OPA 6 policies on esti!ating, te!plates, processes, procedures, lessons learned, 5 historical infor!ation , EEF 6 co!pany culture 5 e$isting syste!s, !ar%etplace conditions, co!!ercial cost databases , Project Mana ement costs ,taffin Mana ement P#an 4 Re!ource Poo# Ri!/ Mana ement P#an, because it includes a budget for ris% Ri!/ re i!ter, a list of ris%s uncovered to date I 1 full ris% analysis of the details of the project will not have been co!pleted before costs are esti!ated J Co!t Mana ement P#an : "ri!arily concerned with the co!t of t*e re!ource! needed to co!plete schedule activities *hould also consider the effect of project decisions on the cost of u!in , maintainin , 5 !upportin the product, service, or result of the project -K life cycle cost I #oo/in at t*e co!t of t*e %*o#e #ife of t*e pro'uct2 not ju!t t*e co!t of t*e project J. 7ife Cyc#e Co!tin 5 ;a#ue En ineerin can : o i!prove 'eci!ion<ma/in o used to re'uce co!t and e+ecution time o i!prove the qua#ity 5 performance of the project deliverable Help !a%e the cost esti!ating process faster by specifying : o how esti!ates !*ou#' (e !tate', i.e. hours, days o what #e"e# of t*e W-, esti!ates will be !ade, i.e. Control 1ccount Help deter!ine if a variance is over the allowable threshold 5 the ways Aarned Calue can be calculated ;a#ue Ana#y!i! 4 ;a#ue En ineerin : find a c*eape!t way to do the !ame %or/. It requires the !y!tematic use of techniques to identify the required project functions, assign values to these functions and provide functions at the lowest overall cost without loss of perfor!ance. If a tea! is loo%ing at 'ecrea!in project co!t but maintainin t*e !ame !cope, they are perfor!ing Calue 1nalysis. Cost :is% Cost +anage!ent "lan can establish : Preci!ion #e"e# )nit! of mea!ure2 such as staff hours F days, wee%s, etc. for each of the resources. Or ani!ationa# proce'ure! #in/! I the =#* co!ponent used for the project cost accounting is called Contro# Account 6 C1 ,. Aach C1 is assigned a code F account nu!ber that is lin%ed directly to the perfor!ing organisation7s accounting syste!. If the cost esti!ates for planning pac%age are inc#u'e' in the C1, then the !ethod for budgeting planning pac%age is inc#u'e'. J. Contro# t*re!*o#'! I variance thresholds, such as person-days, volu!e of product, at designated ti!e points over the duration of the project can be defined to in'icate t*e a ree' amount of "ariation a##o%e'.
L
Earne' ;a#ue ru#e!, for e$a!ple : o Aarned Calue +anage!ent co!putation for!ulas, to 'etermine t*e e!timate to co!plete are defined o Aarned Calue Credit criteria are e!ta(#i!*e' o Befine the =#* level at which Aarned Calue technique analysis will be perfor!ed Reportin format! Proce!! 'e!cription!
he Cost +anage!ent planning effort occurs ear#y in the project planning and sets the fra!ewor% for each of the Cost +anage!ent process, so that perfor!ance of the process will be efficient and coor'inate'. Type! of Co!t : Cariables Costs I costs that c*an e with the a!ount of production or wor%, i.e. costs of !aterial, supplies, wages J. (i$ed Costs I costs that 'o not c*an e as production changes, i.e. set-up, rental, etc J. Birect Costs I costs that are directly attributable to the %or/ on t*e project, i.e. tea! travel, tea! wages, recognition J. Indirect Costs I overhead ite!s F costs incurred for the (enefit of more t*an one project, i.e. ta$es, fringe benefits 5 janitorial services J. ;aria(#e Co!t! 8 Direct Co!t! allows the project !anager to DECREA,E costs. Co!t -enefit he co!parison of the cost versus the benefit e$pected 6of a project, usually for purposes of evaluating alternative for!s of invest!ent Contin ency Re!er"e 1 provision held by t*e project !pon!or for possible changes in Project ,cope or 9ua#ity. *cope and 9uality changes constitute changes in the project !anager7s !andate and will affect the project7s cost and schedule. Net Pre!ent ;a#ue 6 NP; , 8"C is an indicator of how !uch value an invest!ent or project adds to the value of the fir!. Mou would choose the project that provides the !ost value. NP; > EP; 5 E+pecte' Pre!ent ;a#ue 6 of a## t*e (enefit! 5 ca!* inf#o% 6 o"er time ? EP; of a## t*e co!t 5 ca!* outf#o% 6 o"er time. 0f 8"C K N 8"C O N 8"C P N 0t mean! the invest!ent would add value to the fir! the invest!ent would subtract value fro! the fir! the invest!ent would neither gain nor lose value for the fir! the project !ay be accepted the project should be rejected =e should be indifferent in the decision whether to accept or reject the project. his project adds no !onetary value. Becision should be based on other criteria, e.g. strategic positioning or other factors not e$plicitly included in the calculation. T*en
0nterna# Rate of Return 6 0RR , It is si!ilar to the interest rate you get fro! the ban%. he higher the rate is, the better the return. Pay(ac/ Perio' he paybac% period is how long it will ta%e the co!pany to recoup the invest!ent in the project. -enefit Co!t Ratio he lowest benefit cost ratio should be selected for ter!ination. Opportunity Co!t he cost of investing in a particular project and, therefore, forgoing the potential benefits of other projects. ,un/ Co!t Contingency Reserve I&utputFInputJ : he a!ount of funds, budget, or ti!e needed above the esti!ate to reduce the ris% of overruns of project objectives to a level acceptable to the organi0ation.
0N0T0AT0NG
P7ANN0NG
Cost Asti!ating Cost #udgeting
E=EC)T0NG
Cost Control
C7O,0NG
Project 9ua#ity Mana ement :

"erfor! organi0ation2s quality policies, objectives, and responsibilities 9uality is the 'e ree to %*ic* t*e project fu#fi#! requirement!. 'rade is a cate ory assigned to products or services having the sa!e functional use but 'ifferent tec*nica# c*aracteri!tic 6 low grade P a li!ited nu!ber of features, high grade P nu!erous features ,. 9uality +anage!ent includes creatin 5 fo##o%in policies 5 procedures and processes of 9P2 9A2 8 9C, in order to ensure that a project !eets the defined needs it was intended to !eet. 9uality +anage!ent !eans comp#etin the project with no deviations fro! the project require!ents. 1 critical ele!ent of 9uality +anage!ent is to turn sta%eholder needs, wants, 5 e$pectations into requirement! through ,ta/e*o#'er Ana#y!i!, perfor!ed during Project ,cope Mana ement. 9uality "lanning creates . plans in output and . other outputs which start with 9uality. for 9uality "lanning is 1#CBC 9C has all the outputs of 91 Q L !ore outputs. here are 1N for 9C. &ut of which there are R ools for 9C. :e!e!ber 0n!pection appears as here and only other place it appears is in ,cope ;erification
9ua#ity (a!e#ine : the quality objectives of the project. &utput of 9uality "lanning.
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he following are "+I-is!s related to quality : the project !anager should recommen' impro"ement! to the perfor!ing organi0ation7s standards, policies and processes. *uch reco!!endations are e$pected and welco!ed by !anage!ent. quality should be considered %*ene"er t*ere i! a c*an e to any co!ponent of the ;trip#e con!traint.; quality should be chec%ed -EFORE an activity or wor% pac%age is co!pleted. the project !anager !ust spend ti!e trying to i!prove quality. the project !anager !ust deter!ine metric! to be used to !easure quality -EFORE the project wor% begins. the project !anager !ust put in place a plan for continua##y impro"in proce!!e!. the project !anager !ust !a%e sure aut*ori3e' approac*e! an' proce!!e! are followed. so!e of the quality activities could be done by a 9uality 1ssurance or 9uality Control depart!ent Preci!ion is consistency that the value of repeate' mea!urement! are clustered and have little scatter. Accuracy is correctness that the !easured value is very close to the true "a#ue. "recise !easure!ents are not necessarily accurate. 1 very accurate !easure!ent is not necessarily precise. +odern 9uality +anage!ent comp#ement "roject +anage!ent, that recognise the i!portance of : cu!tomer !ati!faction : understanding, evaluating, defining, 5 !anaging e$pectations so that custo!er require!ents are !et. his requires a co!bination of conformance to requirement! 6the project !ust pro'uce %*at it !ai' it %ou#' pro'uce, and fitne!! for u!e 6the product or service !ust !ati!fy rea# nee'!,. pre"ention o"er in!pection : the cost of preventing !ista%es is less than the cost of correcting the!. 9)A70T@ M),T -E P7ANNED 0N2 NOT 0N,PECTED 0NA mana ement re!pon!i(i#ity : it7s the !anage!ent7s responsibility to provide the resource needed to succeed. continuou! impro"ement : the P#an<Do<C*ec/<Act cyc#e i! t*e (a!i! for qua#ity impro"ement. T*e Co!t Of 9ua#ity 5 CO9 6 :efers to the TOTA7 co!t of a## effort! re#ate' to qua#ity. It includes the testing, ti!e spent writing standards, reviewing docu!ents, !eeting to analyse the root causes of defects, rewor% to fi$ the defects once they2re found by the tea!. Co!t of Conformance 5 COC 6 he total cost of ensuring that a product is of good S9ualityS. It includes costs of S9ua#ity A!!uranceS activities such as !tan'ar'!, trainin , and proce!!e!@ and costs of S9ua#ity Contro#S activities such as re"ie%!, au'it!, in!pection!, and te!tin . Co!t of Non<Conformance 5 CONC 6 he total cost to the organisation of fai#ure to achieve a good S9ualityS product. C&8C includes both in-process costs generated by quality failures, particularly the cost of SRe%or/S@ and post-delivery costs including further S:ewor%S, re-perfor!ance of lost wor% 6for products used internally,, possible loss of business, possible legal redress, and other potential costs. Go#' P#atin It refers to i"in the custo!er e+tra! 6e.g., e$tra functionality, *i *er<qua#ity component!, and e$tra scope or better perfor!ance,, that was not reque!te' by the sponsor or client. Not recommen'e'. Continuou! 0mpro"ement 5or Kai3en6 ,ma## impro"ement! in products or processes to reduce costs and ensure consistency of perfor!ance of products or services. Ju!t 0n Time 5J0T6 +any co!panies are finding that holding goods in inventory is too e$pensive and unnecessary. Instead, they have their suppliers deliver !aterials just when they are needed or just before they are needed, thus decreasing inventory to close to 0ero. 1 co!pany using EI !ust have *i * qua#ity, otherwise there will not be enough supplies or raw !aterial to !eet production require!ents. 1 EI syste! forces attention on quality. Tota# 9ua#ity Mana ement 5T9M6 1 philosophy that encourages co!panies and their e!ployees to focu! on fin'in %ay! to continuou!#y impro"e t*e qua#ity of their business practices and products. Re!pon!i(i#ity for 9ua#ity he entire or ani3ation has responsibilities relating to quality. he project !anager has the u#timate re!pon!i(i#ity for t*e qua#ity of t*e pro'uct of t*e project, but each tea! !e!ber !ust chec% his or her %or/-!e#f-in!pection. *enior !anage!ent has the u#timate re!pon!i(i#ity for qua#ity in t*e or ani3ation a! a %*o#e. =or% should !eet the project require!ents and testing should be done whenever appropriate before sub!ission. 0mpact of Poor 9ua#ity : rewor%, increased costs, schedule, and ris% low !orale and low custo!er satisfaction 0ncrea!e! in qua#ity can result in : #e!! re%or/ 8 'ecrea!e' co!t ri!/. increa!e' pro'ucti"ity an' co!t effecti"ene!! 9ua#ity P#annin Beter!ine a plan for quality 9ua#ity A!!urance Beter!ine if the project is comp#yin with organi0ational and project policies and processes 9ua#ity Contro# Mea!ure specific project results against !tan'ar'!
(ind e$isting qua#ity !tan'ar'! for product and project !anage!ent Create additional project-specific standards Beter!ine what wor% you will do to !eet the standards Beter!ine how you will !easure to !a%e sure you !eet the standards #alance the needs of quality with scope, cost, ti!e, ris% and satisfaction Create a 9ua#ity Mana ement P#an and add it to the "roject +anage!ent "lan
"erfor! Continuou! 0mpro"ement Beter!ine if project activities co!ply with organi0ation and project policies, processes and procedures - qua#ity au'it Correct 'eficiencie! Identify i!prove!ents the co!pany needs to !a%e Recommen' C*an e! and Correcti"e Action! to 0nte rate' C*an e Contro#
+easure specific project results against qua#ity !tan'ar'! I!ple!ent 1pproved Changes to the qua#ity (a!e#ine Identify qua#ity impro"ement! Repair 'efect! Recommen' C*an e!2 Correcti"e and Pre"enti"e Action! and Defect Repair to 0nte rate' C*an e Contro#
T
+ostly done during Project P#annin +ostly done during Project E+ecution +ostly done during Project Monitorin 8 Contro##in
0N0T0AT0NG
P7ANN0NG
9uality "lanning 6 9" ,
E=EC)T0NG
"erfor! 9uality 1ssurance 6 91 ,
"erfor! 9uality Control 6 9C ,
C7O,0NG
Project $R Mana ement :

&rgani0e 5 !anage the project tea! to !a%e the !ost effective use of the people involved with the project "roject +anage!ent tea! 6 core, e$ecutive, or leadership tea! , is responsible for planning, controlling, 5 closing "roject sponsor assists project fun'in , c#arify scope questions, inf#uencin others for the benefit of the project, pre"ent unnece!!ary c*an e! 6 rea!!i nment of a tea! !e!ber ,
0nteraction with other process that require a''itiona# p#annin after initial tea! !e!bers create a =#*, additional tea! !e!bers !ay need to be acquire'. as additional tea! !e!bers are acquired, their e$perience level could increase F decrease project ris%, creating the need for additional ri!/ p#annin . when 1ctivity Burations are esti!ated before all project tea! !e!bers are %nown, actual co!petency levels of the acquired tea! !e!bers can cause the Acti"ity Duration! and schedule to c*an e. T*e Ro#e of t*e Project ,pon!or 4 0nitiator : one who provides the financial resources for the project. 1. Buring or prior to Project 0nitiatin Has require!ents that !ust be !et Is a project sta%eholder "rovide fun'in , ,OW, and infor!ation for Pre#iminary Project ,cope ,tatement +ay 'ictate !ilestones, %ey events, or project end date Issue the Project C*arter 'ive the project !anager aut*ority as outlined in the Project C*arter Help organise wor% into appropriate projects *et prioritie! between projects Beter!ine the prioritie! between the 3trip#e con!traint4 co!ponents Ancourage the finalisation of require!ents and scope by the sta%eholders -. Buring Project P#annin "rovide the project tea! with ti!e to plan +ay re"ie% the =#* *upply #i!t! of ri!/! Beter!ine the reports needed by !anage!ent to oversee the project "rovide E+pert Ju' ement Help evaluate tradeoffs during cra!*in , fa!t trac/in 2 8 re<e!timatin Appro"e t*e fina# Project Mana ement P#an .. Buring Project E+ecutin an' Project Monitorin 8 Contro##in Appro"e c*an e! to t*e Project C*arter "rotect the project fro! outside influences and changes Enforce quality policies "rovide E+pert Ju' ement Help evaluate tradeoffs during cra!*in 2 fa!t trac/in 2 8 re<e!timatin :esolve conf#ict! that e$tend beyond the project !anager2s control +ay direct that a 91 review be perfor!ed 1pprove or reject changes or authorise so!eone representing the! to do so 6 C*an e Contro# -oar' , C#arify scope questions /. Buring Project C#o!in "rovide forma# acceptance of the deliverables ,upport the collection of historical records fro! past projects T*e Ro#e of t*e Team : a group of people who will co!plete wor% on the project, and !ay have so!e project !anage!ent responsibilities. Help plan to create W-, and time e!timate! for their wor% pac%ages or activities. Co!plete wor% pac%ages or activities 6 during Project E+ecutin an' Monitorin 8 Contro##in , Help loo% for 'e"iation! fro! Project Mana ement P#an Identify and involve sta%eholders A$ecute the Project Mana ement P#an to acco!plish wor% defined in the Project ,cope ,tatement 1ttend project tea! !eetings 5 enforce Groun' Ru#e! "rocess impro"ement Co!ply with 9ua#ity an' Communication! P#an! he following !ay help the project !anager to : Befine the product of the project 5 require!ents Identify 5 analyse Con!traint! 8 A!!umption! Beter!ine the 'efinition of qua#ity on the project and how it will be !et Beco!pose wor% pac%age they are responsible for into !c*e'u#e acti"itie! Identify 'epen'encie! and create the net%or/ 'ia ram, as well as i'entify ri!/! "rovide time and co!t e!timate! "erfor! 9ua#itati"e 8 9uantitati"e Ri!/ Ana#y!i!2 an' Ri!/ Re!pon!e P#annin Beter!ine ti!e and cost reserve for the project
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"roduce Project Performance Report! 5 !easure Project Performance Beter!ine the need for Correcti"e Action Close out phases of the project *elect appropriate processes
T*e Ro#e of t*e ,ta/e*o#'er! : anyone who can positively or negatively influence the project. +ay be involved in the creation of the Project C*arter and the Pre#iminary and the Project ,cope ,tatement! #eco!e ri!/ re!pon!e o%ner Involved in : o Project Mana ement P#an develop!ent o 1pproving project changes and being on the C*an e Contro# -oar' o *cope Cerification o Identify constraints o :is% !anage!ent T*e Ro#e of t*e Functiona# Mana er : who !anages and 3owns4 the resources in a specific depart!ent, i.e. I , !ar%eting, etc. In matri+ organisation, the responsibility to direct the wor% of individuals is !*are' with the project !anager. In projecti!e' organisation, the project !anager does a## of t*e 'irectin . he role +1M include : 1ssign specific individuals to the tea! and negotiate with the project !anager regarding resources >et the project !anager %now of other projects that !ay i!pact the project "articipate in the Initial "lanning until wor% pac%ages or activities are assigned 1pprove the final "roject +anage!ent "lan during "roject +anage!ent "lan develop!ent 5 the final schedule during *chedule Bevelop!ent :eco!!end corrective actions 1ssist with proble!s related to tea! !e!ber perfor!ance 5 i!prove staff utilisation T*e Ro#e of t*e Project Mana er he project !anager : Is assigned to the project no #ater than Project 0nitiatin Is in charge of the project, but not necessarily the resources 7ea'! and 'irect! during the project P#annin efforts +ust realise that unrealistic schedule is his fault, and %now how to handle those situations Dnderstand and enforces professional and social responsibility Beter!ine 5 delivers required levels of quality 1ssist the tea! 6 coac*in , and other sta%eholders during Project E+ecutin Create a C*an e Contro# ,y!tem +aintains control over the project by mea!urin performance, deter!ining if Corrective 1ction is needed, reco!!ending corrective actions, preventive actions and defect repair +ust have the aut*ority and accounta(i#ity to acco!plish the project !anage!ent wor% 5 !ust say V8&2 when necessary Is the only one who can inte rate the project co!ponents into a cohesive whole that !eets the custo!er2s needs *pend !ore ti!e being proactive than in dealing with proble! 6 reacting , Is accountable for project failure "erfor!s or delegates !ost of the activities he list of responsibilities : Create a project tea! directory 8egotiate with resource !anagers for the best available resources Create project jo( 'e!cription! for tea! !e!bers and other sta%eholders Dnderstand the tea! !e!ber2s needs for training and !a%e sure they get it Create a for!al plan covering such topics as how the tea! will be involved in the project and what role they will perfor! 6 ,taffin Mana ement P#an , Insert reports of tea! !e!ber2s perfor!ance into their official co!pany e!ploy!ent record *end out #etter! of commen'ation to tea! !e!bers and their bosses +a%e sure tea! !e!ber2s needs are ta%en care of Create re%ar' !y!tem! : o *ay 3 han% you4 !ore often 5 award prices or cash prices for perfor!ance o *end notes to their !anagers about great perfor!ance o "lan !ilestone parties or celebrities o 1cquire training paid fro! the project budget for tea! !e!bers o 1djust the project to assign people to requested activities or to re!ove the! fro! disli%ed activities o =or% with the boss to have a tea! !e!ber re!oved fro! the project if they request it, and it is possible o 1ssign a tea! !e!ber to a non-critical path activity so that he can gain !ore %nowledge in that area 7ea'er! Focu! On Cision *elling what and why >onger range "eople Be!ocracy Anabling Beveloping Challenging &riginating &bjectives elling how and when *horter range &rgani0ation and structure 1utocracy :estraining +aintaining Confor!ing I!itating Mana er Focu! On
1N
Innovating Birecting "olicy (le$ibility :is% 6opportunity, op line 'ood >eaders : 'o t*e ri *t t*in ! 1d!inistrating Controlling "rocedures Consistency :is% 6avoidance, #otto! line 'ood +anagers : 'o t*in ! ri *t
Authority : he right to apply project resources, e$pend funds, !a%e decisions, or give approvals.
0N0T0AT0NG
P7ANN0NG
H: "lanning
E=EC)T0NG
1cquire "roject ea! Bevelop "roject ea!
+anage "roject ea!
C7O,0NG
Project Communication Mana ement :

Ansure ti!ely 5 appropriate generation, co##ection, 'i!tri(ution, storage, retrieval, 5 ulti!ate disposition of project infor!ation "rovide a lin% a!ong people and infor!ation "roject !anagers co!!unicate with project team2 !ta/e*o#'er!2 cu!tomer2 8 !pon!or he art of communication includes : sender-receiver !odels ) feedbac% loops 5 barriers to co!!unication. choice of !edia ) writing vs. oral, infor!al !e!o vs. for!al report, face-to-face vs. e-!ail writing style ) active vs passive voice, sentence F word choice. presentation techniques ) design of visual aids !eeting !anage!ent techniques 6 preparing an agenda and dealing with conflict ,
1 basic !odel of co!!unication : encode F decode !essage !ediu! noise ) anything that interferes, i.e. distance, !ay compromi!e the original !eaning of the !essage I a brea%down in co!!unications can negatively impact the project J. Communication! Met*o'! In order to have clear, concise co!!unications, the project !anager !ust handle co!!unications in a !tructure' manner by selecting the for! of co!!unication that is best for the situation. Co!!unications occur interna##y and e+terna##y to the core project tea! and vertically and hori0ontally within the organi0ation. Type of Communication! Met*o'! : for!al written : "roject Charter, +anage!ent "lan 6this is the best type of co!!unication !ethod to use when there are cu#tura# 'ifference! and 'i!tance between tea! !e!bers,, project status reports. infor!al written : notes, !e!os, e-!ails for!al verbal : presentations, speeches infor!al verbal : conversations, !eetings Effecti"e Communication he sender should encode a !essage carefu##y, deter!ine the communication! met*o' used to send it, and confirm that the !essage is un'er!too' : non"er(a# ) a !ajor i!portance para#in ua# - pitch and tone of voice also helps to convey a !essage. fee'(ac/ - saying things li%e, ;Bo you understand what I have e$plained?; Effecti"e 7i!tenin he receiver should decode the !essage carefully and confirm the !essage is understood. his includes watching the spea%er to pic% up physical gestures and facial e$pressions, thin%ing about what you want to say before responding, as%ing questions, repeating and providing feedbac% : fee'(ac/ - saying things li%e, ;I a! not sure I understand, can you repeat what you have said?; acti"e #i!tenin - the receiver confir!s she is listening, confir!s agree!ent or as%s for clarification. para#in ua# Acti"e 7i!tenin in a nutshell : 1ttention 6reduce distractions, Concern 6for the person, the process, and project objectives 1ppropriate ti!ing 6choose a ti!e when neither party is preoccupied, Involve!ent 6!ental and e!otional, Cocal tones 6represent .T percent of !essage, Aye contact 6shows that you are paying attention, >oo% 6observe body language, Interest 6ta%e interest in other person as a hu!an being, *u!!ari0e 6play bac% to confir! and verify real !eaning of the !essage, erritory 6!anage the space appropriately@ lean forward to reduce distance, A!pathy 6listen ;between the words; to understand feelings,
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8od 6to show that you understand, *top tal%ing *how the spea%er that you7re ready to listen *ilence (ew distractions 1 receptive attitude he W-, allows co!!unication "ertica##y and *ori3onta##y within the or ani3ation as well as out!i'e the project. he !ajor result of co!!unication bloc%ers and !isco!!unication as a whole is conf#ict. 7e!!on! 7earne' : create' t*rou *out the project and then fina#i3e' during "roject Closing or "roject "hase Closing. !ight be sent out a! t*ey are create', as part of 0nformation Di!tri(ution activities on the project. the project !anagers have an obligation to con'uct lessons learned sessions for all projects with %ey interna# 5 e+terna# !ta/e*o#'er!. a project cannot (e con!i'ere' comp#ete unless the lessons learned are comp#ete'. Continuous i!prove!ent of the project !anage!ent process cannot occur %it*out lessons learned. one should not wait until the project is over to share lessons learned with other projects. to be as valuable as possible, lessons learned should cover three areas: o Tec*nica# a!pect! of the project o Project Mana ement 6How did we do with =#* creation, ris%, etc.?, o Mana ement 6How did I do with co!!unications and leadership as a project !anager?, O(jecti"e! of a Kic/off Meetin 'et to %now each other, discuss Groun' Ru#e!, set tea! goals 5 objectives , and obtain co!!it!ents :eview project status 5 project plans Identify proble! areas 5 establish responsibilities and accountabilities Ru#e! for meetin ! : *et a ti!e li!it and %eep to it. *chedule recurring !eetings in advance. +eet with the tea! regularly, but not too often. Have a purpo!e for each !eeting. Create an a en'a with tea! input. Bistribute the agenda beforehand. *tic% to the agenda, not a ran'om 'i!cu!!ion! >et people %now their re!pon!i(i#itie! in advance. #ring the right people together. Chair and lead the !eeting with a set of rules. 1ssign deliverables and ti!e li!its for all wor% that results fro! !eetings. Bocu!ent and publish !eeting !inutes.
-arrier! to Communication! 5%*ic* #ea' to conf#ict6 >ac% of clear co!!unication channels "hysical or te!poral distance Bifficulties with technical language Bistracting environ!ental factors Betri!ental attitudes -ui#'in Effecti"e Team Communication! #e an effective co!!unicator and be a co!!unications e$pediter 1void co!!unication bloc%ers Dse a ;tight !atri$; 6single office space, +a%e !eetings effective 6!eeting during e$ecution is the best for!at to co!!unicate,
0N0T0AT0NG
P7ANN0NG
Co!!unications "lanning
E=EC)T0NG
Infor!ation Bistribution
"erfor!ance :eporting +anage *ta%eholders
C7O,0NG
Project Ri!/ Mana ement :

Concerned with conducting ris% !anage!ent planning, identification, analysis, responses, 5 !onitoring and control Concerned with identifying, analysing, and responding to uncertainty. he !ost li%ely cause of poor ris% !anage!ent is #ac/ of prioriti!e' #i!t of ri!/!. o increa!e probability 5 i!pact of po!iti"e events o 'ecrea!e probability 5 i!pact of ne ati"e events 1nalyse the proble! -EFORE you alert the sponsor of potential i!pacts to costs, scope, or schedule. (irst / processes have only one output. :is% :egister is updated in all the processes after it7s created.
Ri!/ Mana ement he process whereby decisions are !ade to accept %nown or assessed ris%s and For the i!ple!entation of actions to reduce the consequences or probability of occurrence. he project !anager to spend !ore ti!e on ris% !anage!ent, such as Ri!/ 0'entification, for project that he has ne"er (een 'one (efore and there will be a large cost outlay. Ri!/ Matri+ he presentation of infor!ation about ris%s in a !atri$ for!at, enabling each ris% to be presented as the cell of a !atri$ whose rows are usually the stages in the invest!ent life-cycle and whose colu!ns are different causes of ris% . 1 ris% !atri$ is useful as a c*ec/#i!t of different types of ris% which !ight arise over the life of a project but it !ust always be supple!ented by other ways of discovering ris%s.
1Ori in of ri!/! : uncertainty in the project, i.e. wor% that needs to be done, the cost, the ti!e, the quality needs, co!!unications needs, etc. Dncertainty is a lac% of %nowledge about an event that reduces confidence in conclusion drawn fro! the data. he investigation of uncertainties !ay help to i'entify ris%s Kno%n ri!/! : those that have been identified, analysed, 5 planned. )n/no%n ri!/! : cannot be !anaged proactively. #ad ris%s P threat @ 'ood ris% P opportunity hreshold is an a!ount of ris% that is acceptable Ri!/ factor! : o :is% probability - the probability that it2ll occur 6 what , o he range of possible outco!es 6 i!pact or a!ount at sta%e , o :is% event - e$pected ti!ing in the project life 6when, - 1 discrete occurrence that !ay affect the project for (etter or %or!e. 1fter a ris% event, the project !anager2s role is to rea!!e!! t*e ri!/ ran/in . he ris% owner is re!pon!i(#e to ta%e action when an identified ris% occurs. o 1nticipated frequency of ris% events fro! that source 6 how often , :is% averse is so!eone who doesn2t want to ta%e ris%s :is% "ortfolio - ri!/ 'ata a!!em(#e' for the !anage!ent of the project =or%around - unp#anne' response to negative ris% events 6requires to be i!pacted by the ris% first, A$pected +onetary Calue P "robability S +onetary I!pact 6used in Becision ree 1nalysis, o be successful, the organisation should be co!!itted to addressing the !anage!ent of ris% proacti"e#y and con!i!tent#y throughout the project. Ri!/ To#erance! olerance is an area of ris% that is 6un,acceptable. If we %now the tolerances of the sta%eholders, we can deter!ine how they !ight react to different situations and ris% events. =e use this infor!ation to help a!!i n #e"e#! of ri!/ 5 ran/ of ri!/ 6 on eac* %or/ pac/a e or acti"ity. Ri!/ Tri er 1 sy!pto! of ris%@ indirect !anifestation of actual ris% event@ output of Ri!/ 0'entification@ e$a!ple is poor !orale. *o!ething that happens that i!plies that a ris% event !ight happen. Eust because a trigger occurs, it doesn7t auto!atically assu!e that a ris% will happen. Common Ri!/ Mana ement Error :is% Identification is co!pleted %it*out %nowing enough about the project 6 see inputs to :is% +anage!ent ,. "roject :is% is evaluated using only a questionnaire, interview, or +onte Carlo analysis, so 'oe! not pro"i'e !pecific ri!/!. :is% Identification ends too !oon, so it produces only a fe% #i!t! :is% Identification through 9n :is% 1nalysis are blended, resulting in ris%s that are evaluated or judged as they co!e to light. his decrease the nu!ber of total ris%s identified and causes people to stop participating in :is% Identification. :is% Identification is general rather than !pecific. W*o#e cate orie! of ris%s are !issed, such as technology, cultural, or !ar%etplace. :is% Identification using only by one !ethod instead of a com(ination of met*o'!. he first ris% response strategy identified is selected without loo%ing at other options and finding the best option or com(ination of option!. :is% +anage!ent is not given enough attention during Project E+ecutin . "roject !anagers do not e$plain the Ri!/ Mana ement to their tea! during Project P#annin . Contracts are usually signed long -EFORE "roject :is%s are discussed. he project !anager is not dealing with reserves in the actions he is ta%ing, and is wor%ing to !a%e a positive i!pact 6 opportunities , on the project !ore li%ely to occur.
0N0T0AT0NG
P7ANN0NG
:is% +anage!ent "lanning :is% Identification 9ualitative :is% 1nalysis 9uantitative :is% 1nalysis :is% :esponse "lanning
E=EC)T0NG
:is% +onitoring 5 Control
C7O,0NG
Project Procurement Mana ement :

#uy F sell the product, service, or results under a contract 6 a legal docu!ents, !utually binding agree!ent, between the buyer 5 the seller , #uy .rd party product Contract !anage!ent and change control process required to ad!inister contracts or purchase orders issued by authori0ed project tea! !e!ber 1d!inistering any contract issued by the buyer that buy the seller product 1d!inistering contractual obligations placed on the project tea! by the contract It is the project mana ement teamB! responsibility to help tai#or the contract to the specific needs of the project.
Remem(er : Contract! are #e a##y (in'in 2 t*u! require! forma#ity 1ll product and project !anage!ent require!ents should be specifically stated in the contract 0f it i! not in t*e contract2 it can on#y (e 'one if a c*an e i! i!!ue' 0f it i! in t*e contract2 it mu!t (e 'one or a c*an e or'er2 !i ne' (y (ot* partie! i!!ue' Changes !ust be in writing Contracts should help 'imini!* project ri!/ or miti ate' +ost govern!ents bac% all contracts by providing a court syste! for dispute resolution 1 contract is one !ethod of a##ocatin t*e re!pon!i(i#ity for mana in or a!!umin potentia# ri!/!. Contracts should include procedures to acco!!odate changes. :easons to ter!inate a contract : breach 5 !aterial breach. Project Mana er1! Ro#e in Procurement he project !anager !ust be involved in the creation of contract! and fu#fi#! the following %ey roles:
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<now the procure!ent process Dnderstand contract ter!s and conditions +a%e sure the contract contains all the project !anage!ent require!ents such as attendance at !eetings, reports, actions and co!!unications dee!ed necessary Identify ris%s and incorporate !itigation and allocation of ris%s into the contract Help tailor the contract to the unique needs of the project (it the schedule for co!pletion of the procure!ent process into the schedule for the project #e involved during Contract 8egotiation to protect the relationship with the seller "rotect the integrity of the project and the ability to get the wor% done Dphold the entire contract, not just the contract *&= =or% with the Contract +anager to !anage changes to the contract
he project !anager !ust be assigned (efore a contract is signedW his allows the project !anager to comp#ete a ri!/ ana#y!i! (efore a contract i! !i ne'
0N0T0AT0NG
P7ANN0NG
"lan "urchases 5 1cquisitions "lan Contracting
E=EC)T0NG
:equest *eller :esponses *elect *ellers
C7O,0NG
Contract Closure
0N0T0AT0NG
0nitiatin Proce!! Group 0nte ra Bevelop "roject Charter tion Bevelop "reli!inary "roject *cope *tate!ent ,cope P#annin Proce!! Group Bevelop "roject +g!t "lan E+ecutin Proce!! Group Birect 5 +anage "roject A$ecution Monitorin 8 Contro##in Proce!! Group +onitor 5 Control "roject =or% Integrated Changed Control *cope Cerification *cope Control *chedule Control C#o!in Proce!! Group Close "roject
*cope "lanning *cope Befinition Create =#* 1ctivity Befinition 1ctivity *equencing 1ctivity :esource Asti!ating 1ctivity Buration Asti!ating *chedule Bevelop!ent Cost Asti!ating Cost #udgeting 9" H: "lanning Co!!unications "lanning 91 1cquire "roject ea! Bevelop "roject ea! Infor!ation Bistribution
Time
:is% +g!t "lanning :is% Identification 9ualitative :is% 1nalysis 9uantitative :is% 1nalysis :is% :esponse "lanning
Procur ement
"lan "urchases 5 1cquisitions :equest *eller :esponses Contract 1d!inistration "lan Contracting *elect *ellers
Contract Closure
Assentially, the initiating processes for!ally start a new project or project phase by incorporating all the needs of the organi0ation into the Project C*arter and Pre#iminary Project ,cope ,tatement. +ain Inputs : #usiness need "roduct description or product scope description describes the product require!ents as they are %nown up to this point. In other words, what is the project being as%ed to do? How the project fits into or supports the co!pany7s strategic plan =ho are li%ely to be sta%eholders Contracts, if the wor% is done under a contract
Industry standards Co!pany change process How the co!pany does business@ defined processes and procedures "ast relationships with the sponsor of the project, li%ely sta%eholders and tea! e!plates fro! past projects Historical =#* 5 Historical esti!ates =hat is going on in the co!pany today? =hat are the !ajor projects? =hat !ight their i!pact be on this project? he co!pany7s future 5 culture "eople who !ay be good tea! !e!bers
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De"e#op Project C*arter :
(or!ally aut*ori3e F reco ni!e a project 6 a project 'oe! not e+i!t %it*out a Project C*arter , Issued by Project 0nitiator or ,pon!or "rovide the "roject +anager with the aut*ority to !pen' money and to apply organi0ational re!ource! to project activities 1 project is not for!ally chartered 5 initiated until comp#etion of a nee'! a!!e!!ment2 fea!i(i#ity !tu'y2 pre#iminary p#an, etc. is pri!arily concerned with 'ocumentin the business needs, project justification, current understanding of the custo!er2s require!ents, and the new product, service, or result that is intended to satisfy those require!ents "rovides the *i *<#e"e# requirement! for the project. 7in/! the project to the ongoing wor% of the organi0ation. 1ny change to the "roject Charter should call into question %*et*er or not the project should continue. Project C*arter is input for only following: o "reli!inary *cope *tate!ent o *cope "lanning 5 *cope Befinition.
,tatement Of Wor/ for internal projects, the project 0nitiator or ,pon!or provides the *&= based on business needs, product, or service require!ents. for e$ternal projects, the state!ent of wor% can be received fro! the custo!er as part of a (i' 'ocument, for e$a!ple, request for proposal, request for infor!ation, request for bid, or as part of a contract. may not (e comp#ete when received as an input to develop "roject Charter. It is further defined in the Pre#iminary Project ,cope ,tatement and Project ,cope ,tatement it indicates 6 -P, , : o -u!ine!! nee' 6 training, !ar%et de!and, technological advance, legal require!ent, or govern!ental standard , o Pro'uct !cope 'e!cription 6 docu!ents the product require!ents and characteristics of the product or service that the project will be underta%en to create , o ,trate ic p#an EEF 5 Enterpri!e En"ironmenta# Factor! 6 : co!pany structure, co!pany standards 5 regulations, co!pany %or/ aut*ori!ation !y!tem, sta%eholder ris% tolerance, web interface, personnel ad!inistration, !ar%et conditions, project !anage!ent software, etc PK ;Co!pany culture and e$isting syste!s that the project will have to deal with or can !a%e use of.; ,. OPA 5 Or ani3ationa# Proce!! A!!et! 6 It7s : ;processes, procedures and historical infor!ation.; : "rocesses, "rocedures and "olicies Corporate <nowledge #ase the creation of a corporate %nowledge database of historical infor!ation and lessons learned is an organi0ational responsibility that can result in continuous i!prove!ent. Historical Infor!ation - historical infor!ation 6or data, is a record of past projects. It is used to plan and !anage future projects, thereby i!proving the process of project !anage!ent. Historical infor!ation can include: o 1ctivities o >essons learned o =#* o #ench!ar%s o :eports o :is%s o Asti!ates o :esources needed o "roject !anage!ent plans o Correspondence Project ,e#ection Met*o'! here are two broad categories : #enefit !easure!ent !ethods 6 Comparati"e approac* , : o +urder board - a panel of people who try to shoot down a new project idea o "eer review o *coring !odels - different projects are given scores based on certain defined criteria. "roject with higher score is selected. o Acono!ic !odels o #enefit Cost :atio - this technique involves co!puting benefits to cost ratio 6#C:, for a project. "roject with higher #C: is selected. 1 #C: of -.1 !eans the paybac% is -.1 ti!es the costs. o Biscounted Cash (low - this technique ta%es into account the interest earned on the !oney. he (uture Calue 6(C, of projects is co!pared. (CP"C61Qi,n "C is the present value of the project. 1 project with higher present value is better. o Internal :ate of :eturn 6I::, - a project that has higher I:: is better, as it is giving higher return on !oney. o "aybac% period - this technique involves considering how long it ta%es bac% to ;pay bac%; the cost of the project. Inflation or interest earned in not considered in this technique. 1 project with lower pay bac% period is better. Constrained opti!i0ation !ethods 6 Mat*ematica# approac* , : o >inear progra!!ing o Integer progra!!ing o Byna!ic progra!!ing o +ulti-objective progra!!ing Constraints and assu!ptions are i'entifie' and then mana e'. he sponsor, the tea! and other sta%eholders can identify Con!traint! an' A!!umption! in the 0nitiatin Proce!! group and t*rou *out the project. Con!traint! an' A!!umption! are also reviewed for validity throughout the life of the project. 0f t*e Con!traint! c*an e or t*e A!!umption! are pro"en %ron , the Project Mana ement P#an may nee' to c*an e. A!!umption! ana#y!i! i! part of t*e Ri!/ Mana ement proce!!. T*e Project C*arter : the project mana ement team !ay help to write it the approval and funding are handled e+terna# to the project boundaries. authori0ed e+terna# to the project by the organi0ation, a progra! or portfolio !anage!ent body, a govern!ent agency, a co!pany. issued by a project initiator or !pon!or e$ternal to the project organisation, at a level that is appropriate to fun'in t*e project.
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!ay include so!e !taff a!!i nment! should have the following infor!ations : o :equire!ents that satisfy custo!er, sponsor, and other sta%eholder needs, wants and e$pectations o #usiness needs, high-level project description, or product require!ents that the project is underta%en to address o "roject purpose or justification o 1ssigned "roject +anager and authority level o ,ummary (u' et 8 mi#e!tone !c*e'u#e o *ta%eholder influences o (unctional organi0ations and their participation o &rgani0ational, environ!ental and e$ternal A!!umption! 8 Con!traint! o -u!ine!! ca!e 8 fea!i(i#ity !tu'ie! justifying the project, including Return On 0n"e!tment
Constraint IInputJ : he state, quality, or sense of being re!tricte' to a given course of 6in,action. 1n app#ica(#e re!triction or #imitation, either internal or e$ternal to the project, that will affect the performance of the project or a process. (or e$a!ple, a schedule constraint is any li!itation or restraint placed on the project schedule that affects when a schedule activity can be scheduled and is usually in the for! of fi$ed i!posed dates. 1 cost constraint is any li!itation or restraint placed on the project budget such as funds available over ti!e. 1 project resource constraint is any li!itation or restraint placed on resource usage, such as what resource s%ills or disciplines are available and the a!ount of a given resource available during a specified ti!e fra!e. 1nd even union contract! 6 if the project involves union ,. 1ssu!ptions I&utputFInputJ : 1ssu!ptions are factors that, for planning purposes, are considered to be true, real, or certain without proof or de!onstration. 1ssu!ptions affect all aspects of project "lanning, and are part of the "rogressive Alaboration of the project. "roject tea!s frequently identify, docu!ent, and validate assu!ptions as part of their planning process. 1ssu!ptions generally involve a degree of ris%. 1ssu!ptions are educated guesses !ade on the project about ite!s that are not %nown.
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Contract 6 if applicable , *&= AA( &"1 Project ,e#ection Met*o'! "roject +anage!ent +ethodology
TT
Project C*arter
"roject +I* : Configuration +anage!ent *yste! : Eira Change Control *yste! : "CC*, log A$pert Eudge!ent 6 Consultants, *ta%eholders, technical associations, etc ,
De"e#op Pre#iminary Project ,cope ,tatement :

Bocu!ent %*at mu!t (e 'one to acco!plish the project objectives. Beveloped fro! infor!ation provided by the 0nitiator or ,pon!or. +a%ing sure the project !anager and the sponsor have a !imi#ar un'er!tan'in or a !eeting of the !inds about project scope -EFORE planning begins. Interviewing the sponsor, for the purposes of obtaining a clearer understanding of what needs to be done to acco!plish the require!ents I more 'etai# on t*e requirement!2 *o% !ucce!! %i## (e mea!ure'2 an' any information from t*e !pon!or re ar'in ri!/!2 (u' et! an' !c*e'u#e! J he project !anage!ent tea! in the ,cope Definition process further refine! the Pre#iminary Project ,cope ,tatement into the Project ,cope ,tatement.
Pre#iminary Project ,cope ,tatement, produce: "roject 5 product objectives "roduct F service require!ents "roduct 1cceptance Criteria "roject require!ents and deliverables "roject (oun'arie!2 Con!traint!2 8 A!!umption! Initial project organi0ation Initial defined ris%s *chedule !ilestones Initial 6 high level , =#* Cost esti!ates "roject Configuration +anage!ent require!ents 1pproval require!ents
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Project Charter *&= AA( &"1
TT
"++ "roject +I* A$pert Eudge!ent
O
Pre#iminary Project ,cope ,tatement
1L P7ANN0NG
Time
Procur ement
Contract Closure
It entails wal%ing through the project and getting it organi0ed before it is actually done. It is during "roject "lanning, in addition to when the wor% is being done, that resources, ti!e and !oney can (e !a"e'. "roject "lanning deter!ines if the "roject Charter can or cannot be done, as well as how the project will be acco!plished@ addressing all appropriate project !anage!ent processes and %nowledge areas. his !eans that the project !anager and the project tea! will deter!ine what processes in the "+#&<; 'uide are appropriate for the needs of the project, to avoid wasting project resources on activities that are not relevant to the particular project. he result of the planning processes is a Project Mana ement P#an. "roject planning is iterati"e. Aach process above !ay use the results of the previous process, and each process !ay affect or cause changes to the previous processes. he idea, in the real world, is to follow these processes in the planning process group, atte!pting to co!plete each one as fully as possible. hen, after Ri!/ 0'entification, 9ua#itati"e and 9uantitati"e Ri!/ Ana#y!i! , and Ri!/ Re!pon!e P#annin , go bac% to finali0e all the co!ponents of the "roject +anage!ent "lan.
his process of planning saves ti!e and is efficient. Can you guess why iterations start after Ri!/ Mana ement ? #ecause it is only after Ri!/ Mana ement i! comp#ete' t*at t*e fina# Co!t an' ,c*e'u#e can (e 'etermine'. :is% +anage!ent could also result in changes to the resources, when they are used, in what sequence activities are perfor!ed, and al!ost all other parts of the planning process group. 1nother i!portant aspect of planning is that the a!ount of ti!e spent in the planning process group should be related to the needs of the project. 1 project where the schedule needs to have a high level of confidence will require !ore planning. 1 project with a low priority will require less planning. I!agine that you have chosen to organi0e the project by phases 6test phase, install phase, etc., 0t mi *t not (e po!!i(#e to p#an eac* p*a!e to a 'etai#e' 'e ree unti# t*e p*a!e (efore i! a#mo!t comp#ete'. his is called ;ro##in %a"e p#annin .; Aven though each part of the ;project; is called a phase, each phase could be, and !aybe should be, planned as a project with its own charter, scope state!ent, =#*, etc. E"eryone i! in"o#"e' in t*e p#annin proce!!e! W he "roject +anage!ent "lan is co!piled by the project !anager with input fro! sta%eholders. Historical records fro! previous projects, co!pany policies, !aga0ine articles about projects and other such infor!ation !ay also be utili0ed in planning the project.
De"e#op Project Mana ement P#an :

1ctions necessary to 'efine, inte rate, and coor'inate all subsidiary plans into "roject +anage!ent "lan. It contains all the !anage!ent plans and the Performance Mea!urement -a!e#ine! that will be used to !easure the progress and co!pletion of the project. Is the process of creating a "roject +anage!ent "lan that is agreed to by everyone, for!ally approved, everyone believes it can be done according to plan 6realistic, and re!ains a for!al docu!ent that is controlled and used throughout the project.
"roject +I*, an auto!ated syste! that is used by the project !anage!ent tea! to : support generation of the "roject +anage!ent "lan facilitate feedbac% the as doc is developed control changes to the "roject +anage!ent "lan released the approved docu!ent I A$a!ples of +I* :
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Confi uration Mana ement ,y!tem, a process for !u(mittin proposed changes, trac%ing syste!s fro reviewing 5 approving proposed changes, defining approval levels for aut*ori!in changes, 5 providing a !ethod to validate approved changes. C*an e Contro# ,y!tem, a co##ection of for!al, docu!ented procedures, paperwor%, trac/in !y!tem! and approval levels for aut*ori!in changes. his !ay includes @ 1 change control plan included in the "roject +anage!ent "lan outlining how changes will be !anaged Creation of a Change Control #oard to approve A77 changes Change control procedures 6how, who, "erfor!ance statistics 6e.g., ti!eFsyste!, ti!eFdrawing, :eports 6e.g., software output, !ilestone charts, resource usage, Change for!s J Wor/ Aut*ori!ation ,y!tem 1 subsyste! of the overall "roject +anage!ent *yste!. It7s a collection of for!al docu!ented procedures that define how project wor% will be authorised 6 co!!itted , to ensure that the wor% is done by the identified organisation, at t*e ri *t time and in t*e proper !equence 5 notifyin team mem(er! or contractor! t*at t*ey may (e in %or/ on a project %or/ pac/a e. 6 . It includes the steps, docu!ents, trac%ing syste!, and defined appro"a# #e"e#! needed to i!!ue wor% authorisation. 1 =or% 1uthori0ation *yste! is used to coor'inate %*en and in %*at or'er the wor% is perfor!ed so that wor% and people !ay properly interface with other wor% and other people. Project -a!e#ine 1 way to trac% project progress by comparin ori ina# plan esti!ates against actua# progress. 1 baseline contains original ,c*e'u#in , Re!ource and Co!t esti!ates. #aselines are used during "roject E+ecutin to !easure perfor!ance and to help control the project. (orecasts of final cost and schedule should be co!pared to the baselines. "rojects that deviate far fro! their baselines should have their ris% !anage!ent process reviewed. "roject baselines !ay be changed by for!ally approved changes, but the evolution of the baselines should be docu!ented. Project Mana ement P#an Appro"a# he "roject +anage!ent "lan, create' (y t*e team, !ust receive forma# appro"a# 5 !i n<off or !i nature! 6 by mana ement, the !pon!or the project tea! and other !ta/e*o#'er!. Kic/off meetin is held at the end of the "lanning process group just -EFORE beginning wor% on the project or each phase.
Project Mana ement P#an 1 for!al, approved docu!ent that defines how the projected is e$ecuted, !onitored and controlled, !ay be su!!ary or detailed and !ay be co!posed of one or !ore subsidiary !anage!ent plans and other planning docu!ents, which include : "roject *cope +anage!ent "lan *chedule +anage!ent "lan Cost +anage!ent "lan 9uality +anage!ent "lan "rocess I!prove!ent "lan *taffing +anage!ent "lan Co!!unication +anage!ent "lan :is% +anage!ent "lan "rocure!ent +anage!ent "lan +ilestone list :esource calendar *chedule, Cost, 5 9uality baseline :is% register Performance Measurement Baseline : 1n appro"e' p#an for the project wor% against which project e$ecution is co!pared and deviations are !easured for !anage!ent control. he perfor!ance !easure!ent baseline typically integrates !cope, !c*e'u#e, and co!t para!eters of a project, but !ay also include tec*nica# and qua#ity parameter!.
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Preliminary Project Scope Statement "roject +anage!ent "rocesses AA( &"1 "++ "roject +I* A$pert Eudge!ent
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Project Mana ement P#an
,cope P#annin :
C$o% %i## 0 'o t*i! &D Creating a Project ,cope Mana ement P#an that docu!ents how the project scope will be 'efine', "erifie', contro##e', 5 how the W-, %i## (e create' 8 'efine'. Project ,cope Mana ement P#an : guidance on how project scope will be defined, docu!ented, "erifie', !anaged, 5 controlled (y t*e project mana ement team, based on Pre#iminary Project ,cope ,tatement how =#* will be created 5 defined for each project will be unique but !ay cover topics that for the co!pany or the type of project can be standardi0ed. once co!pleted, it beco!es part of t*e Project Mana ement P#an and is used to guide and !easure the project until the C#o!in Proce!! group. is contained in or is subsidiary of "roject +anage!ent "lan Its co!ponent includes process : to prepare a detailed Project ,cope ,tatement based on the Pre#iminary Project ,cope ,tatement to create W-, fro! "roject *cope *tate!ent, 5 establishes how the =#* will be maintaine' and appro"e' that specifies how forma# "erification 5 acceptance of the co!pleted project deliverables will be o(taine' to control how :equest Changes will be processed 6 this is lin%ed to the Integration Change Control ,.
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AA( &"1 Project Charter Preliminary Project Scope Statement Project Management Plan A$pert Eudge!ent e!plates, (or!s, 5 *tandards
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Project ,cope Mana ement P#an
,cope Definition :
"ri!arily concerned with %*at i! an' i! not inc#u'e' in the project. Beveloping a 'etai#e' "roject *cope *tate!ent as the (a!i! for future project 'eci!ion!. ,ta/e*o#'er nee'!2 %ant!2 8 e+pectation! are ana#y!e' 8 con"erte' into requirement!. he Constraints 5 1ssu!ptions are analysed for comp#etene!!..
Pro'uct Ana#y!i! : to analyse 6 by using techniques such as product brea%down, syste!s analysis, syste!s engineering, Calue Angineering F Calue 1nalysis , the o(jecti"e! stated by the custo!er or sponsor and turn the! into tangible requirement! ,ta/e*o#'er Ana#y!i! : !e#ect!, prioriti!e!, 5 quantifie! the sta%eholder needs, wants, 5 e$pectations to create require!ents. Project ,cope ,tatement 1 narrative description which includes : "roject objectives : o +easurable success criteria o #usiness, cost, schedule objectivity o Cost 5 quality targets "roduct scope description 6 the characteristics of the product, service, or result , "roject require!ents 6 fro! ,ta/e*o#'er Ana#y!i! , "roject boundaries 6 what is included or e$cluded within the project , "roject deliverables "roduct 1cceptance Criteria "roject Constraints 5 1ssu!ptions 6 !ore detailed than those listed in the "roject Charter , Identify project tea! !e!bers, organi0ation, 5 %nown ris%s *chedule !ilestones (und li!itation 5 Cost esti!ate "roject configuration !anage!ent require!ents "roject specification 1pproval require!ents ,cope ,tatement - is input to A77 T$E P7ANN0NG PROCE,,E, after it7s created e+cept 1ctivity :esources Asti!ating H: "lanning :is% :esponse "lanning "lan Contracting up'ate' in 0nte rate' C*an e Contro#2 Create W-, and ,cope Contro#
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&"1 Project Charter Preliminary Project Scope Statement Project Management Plan 1pproved Change :equests 6 !ay cause a change to "roject *cope, "roject 9uality, esti!ated Costs, or "roject *chedule , Pro'uct Ana#y!i!
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,ta/e*o#'er Ana#y!i! 1lternative Identification 6 brainstor!ing and lateral thin%ing , A$pert Eudge!ent
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Project ,cope ,tatement :equested Changes "roject *cope +anage!ent "lan 6 Dpdates ,
Create W-,
W-, : is a 'e#i"era(#e-oriente' *ierarc*ica# 'ecompo!ition of the wor%, into %or/ pac/a e!, to be e$ecuted by the team organises and defines the tota# !cope of the project represents the wor% specified in the current appro"e' Project ,cope ,tatement its co!ponent assists sta%eholders in viewing the deliverables of the project where the top level is the project tit#e Is a graphical picture of the *ierarc*y of the project . Identifies a## t*e %or/ to (e performe'2 a## 'e#i"era(#e! to (e inc#u'e' - if it is not in the =#*, it i! not part of t*e project Is the foun'ation upon which the project is built Can be reu!e' for other projects Boes NOT show dependencies *hould not be confused with : o &rgani0ational #rea%down *tructure 6 &#* , o #ill of +aterial - a docu!ented for!al hierarchical tabulation of the physical asse!blies, subasse!blies, and co!ponents needed to fabricate a product. o :is% #rea%down *tructure
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o :esource #rea%down *tructure =hen co!pleted, the =#* can be used any ti!e the project needs to re<e"a#uate t*e !cope of t*e project, for e$a!ple: o when there is a scope change to the project o as part of 0nte rate' C*an e Contro# to evaluate any impact! of other changes on scope o as a way to contro# !cope creep by re!inding everyone %*at %or/ i! to (e 'one o as a co!!unications tool to help new tea! !e!bers see their ro#e!
|----> Activities WBS ----> Control Accounts ----> Work Packages ----| |----> WBS Dictionary he benefits of =#* : Helps prevent wor% fro! slipping through the crac%s "rovides the project tea! with an understanding of %*ere t*eir piece! fit into t*e o"era## "roject +anage!ent "lan and gives the! an indication of the i!pact of their wor% on the project as a whole (acilitates communication and cooperation between and a!ong the project team and other !ta/e*o#'er! Helps pre"ent c*an e! (ocuses the tea!7s e$perience on %*at nee'! to (e 'one, resulting in higher quality and a project that is easier to !anage "rovides a (a!i! for e!timatin :esource, Cost, and i!e, and PROOF of need for staff, cost and ti!e 'ets tea! buy-in and builds the tea! Helps people et t*eir min'! around the project =#* Bictionary, a co!panion docu!ent to the =#* : can be used as part of a Wor/ Aut*ori3ation ,y!tem to infor! tea! !e!bers of %*en t*eir %or/ pac/a e i! oin to !tart, schedule !ilestones and other infor!ation can be used to control %*at %or/ i! 'one %*en, to prevent !cope creep and to increase understanding of the effort for each wor% pac%age. contains: o 1 Code of 1ccount identifier o :elated Control 1ccount 6for cost, o 1 ,tatement Of Wor/ to be done o =ho is re!pon!i(#e for doing the wor% o 1ny !c*e'u#e mi#e!tone! W-, an' W-, 'ictionary are inputs to *cope Control 1ctivity Befinition Cost Asti!ating Cost #udgeting "lan "urchases and 1cquisitions Decompo!ition : Involves the following activities : o Identify the deliverables 5 related wor% 6 requires a degree of E+pert Ju' ement to analyse the detailed "roject *cope *tate!ent , o *tructuring 5 organi0ing the =#* 6 by !eans of W-, temp#ate! , o Beco!posing the upper =#* levels into lower level detailed co!ponents, which represent "erifia(#e products, services, or results o Beveloping and assigning identification codes to the =#* co!ponents o Cerifying that the degree of deco!position of the wor% is necessary and sufficient #uild a %or/ pac/a e 6 in which where the co!t 5 !c*e'u#e for the wor% can be re#ia(#y e!timate' and ri!/ i'entifie' - wor% pac%ages are divided further into !c*e'u#e acti"itie! , Is i!possible if the deliverable or sub-project is not clarified 6 ro##in %a"e p#annin , oo !uch detail can lead to non-productive !anage!ent effort, inefficient use of resources, 5 decreased efficiency in the perfor!ing the wor%. One can 'ecompo!e t*e project u!in a W-,. Activity : 1 co!ponent of wor% perfor!ed during the course of a project. Schedule Activity : 1 discrete scheduled co!ponent of wor% perfor!ed during the course of a project. 1 schedule activity nor!ally has an esti!ated duration, an esti!ated cost, and esti!ated resource require!ents. *chedule activities are connected to other schedule activities or schedule !ilestones with logical relationships, and are deco!posed fro! wor% pac%ages. Deliverable I&utputFInputJ : 1ny unique and "erifia(#e product, result, or capability to perfor! a service that !ust be produced to co!plete a process, phase, or project. &ften used !ore narrowly in reference to an e$ternal deliverable, which is a deliverable that is subject to approval by the project sponsor or custo!er. or! Pac!age : 1 deliverable or project wor% co!ponent at t*e #o%e!t #e"e# of eac* (ranc* of t*e W-,. he wor% pac%age includes the schedule activities and schedule !ilestones required to co!plete the wor% pac%age deliverable or project wor% co!ponent.
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&"1 Project Scope Statement Project Scope Management Plan 1pproved Change :equests Beco!position
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=#* e!plates 6 fro! previous project ,
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"roject *cope *tate!ent 6Dpdates , "roject *cope +anage!ent "lan 6Dpdates , W-,8 W-, Dictionary ,cope -a!e#ine :equested Changes
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Acti"ity Definition :
Identify the specific !c*e'u#e acti"itie!2 by 'ecompo!in the =#*, to provide a (a!i! for e!timatin , scheduling, e$ecuting, and !onitoring 5 controlling the project wor%. hese activities are !equence' into t*e net%or/ 'ia ram. Ro##in Wa"e P#annin Cost and *chedule planning where details are developed for the near ter! and general allocations are !ade for the out periods. Betail is developed for the out periods as infor!ation beco!es available to do so. In the early strategic planning, the infor!ation is less defined, activities !ight be %ept at the !ilestones level. Acti"ity 7i!t Is used in the ,c*e'u#e Mo'e# 5 is a co!ponent of the "roject +anage!ent "lan, includes : all schedule activities that are planned to be perfor!ed the activity identifier 5 a scope of wor% description for each schedule activity in sufficient detail Acti"ity Attri(ute! Includes activity identifier, activity codes, activity description, predecessor 5 successor activities, leads 5 lags, i!posed dates, Con!traint 5 A!!umption, person responsible for e$ecuting the wor%, geographic area or place of the wor%place. hese are used for project schedule develop!ent and for selecting, or'erin 2 an' !ortin t*e p#anne' !c*e'u#e acti"itie! %it*in report!. Progressive "laboration I echniqueJ : Continuou!#y impro"in and 'etai#in a P7AN as !ore detailed and specific infor!ation and !ore accurate esti!ates beco!e available as the project progresses, and thereby producing !ore accurate and co!plete plans that result fro! the successive iteration! of the p#annin proce!!. Rolling ave Planning I echniqueJ : 1 for! of Progressive "laboration planning where the wor% to be acco!plished in the near term is planned in detail at a #o% #e"e# of t*e W-,, while the wor% far in the future is planned at a relatively *i * #e"e# of t*e W-,, but the detailed planning of the wor% to be perfor!ed within another one or two periods in the near future is done as wor% is being co!pleted during the current period.
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AA(, i.e. "roject +anage!ent Info *yste! 5 scheduling software. &"1 Project Scope Statement 6Constraints 5 1ssu!ptions, and input fro! the !pon!or , WBS & WBS Dictionary, the main input to schedule activities Project Management Plan Beco!position
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e!plates 6 fro! previous project, 5 can be used to identify typical schedule !ilestones , :olling =ave "lanning A$pert Eudge!ent "lanning Co!ponent
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Acti"ity 7i!t Acti"ity Attri(ute! Mi#e!tone! 7i!t :equested Changes
Acti"ity ,equencin :
Identify 5 docu!ent 'epen'encie! a!ong schedule activities 6 put into !equence t*e !c*e'u#e acti"itie! , into how the wor% will be performe'. he result is a net%or/ 'ia ram 6or project !c*e'u#e net%or/ 'ia ram,. If Acti"ity Duration E!timate! 6esti!ates, are added, the networ% diagra! could also show the Critica# Pat*. If plotted out against time 6or placed against a calendar-based scale,, the networ% diagra! would be a time-!ca#e' !c*e'u#e net%or/ 'ia ram. Project ,cope ,tatement is an input for this process as it contains the pro'uct !cope 'e!cription, which includes pro'uct c*aracteri!tic! that !ight affect activity sequencing. =hile these effects are often apparent in the acti"ity #i!t, the product scope description is generally re"ie%e' to ensure accuracy. Prece'ence Dia rammin Met*o' 6 "B+ , or Acti"ity<on<No'e 6 1&8 , is a !ethod of constructing a project schedule networ% diagra! that uses rectan #e! 6 nodes , to represent activities and arrows show activities dependencies. here are / types of dependencies between activities : finish-to-start, an activity +D* finish before the successor can start 6 !ost co!!on ,. start-to-start, an activity +D* start before the successor can start. finish-to-finish, an activity +D* finish before the successor can finish. start-to-finish, an activity +D* start before the successor can finish 6 rarely used ,. Arro% Dia rammin Met*o' 6 1B+ , or Acti"ity<on<Arro% 6 1&1 , is a !ethod of constructing a project schedule networ% diagra! that uses circ#e! 6 nodes , to represent activities and arrows show activities dependencies. his !ethod : uses only fini!*<to<!tart. !ay use 'ummy acti"itie!, represented by a dotted line. ype of Bependencies 6 Depen'encie! Determination , : +andatory dependencies 6 hard logic ,, i.e. you M),T design before you can construct. Biscretionary dependencies 6 "referred, "referential, or *oft >ogic ,, based on %nowledge of (e!t practice or previous e$perience. A$ternal dependencies, based on the needs of a party outside the project, i.e. gov, supplier, etc.
Mi#e!tone! are significant events within the "roject *chedule. +ilestones can be impo!e' by the sponsor in the Project C*arter and Pre#iminary Project ,cope ,tatement. 1dditional !ilestones can be impo!e' by the project !anager during Acti"ity ,equencin or ,c*e'u#e De"e#opment, as c*ec/point! to help control the project. If the chec%point in the schedule arrives and all the wor% planned has been co!pleted, then the project !anager has a !easure that the project !ay be progressing as planned. 1 list of !ilestones beco!es part of the "roject +anage!ent "lan and is inc#u'e' in the Project ,cope ,tatement and W-, Dictionary. 7ea'! 8 7a ! : 1 lead !ay be a''e' to start an activity before the predecessor activity is co!pleted, i.e. coding !ight be able to start H days before the design is finished. 1 lag is inserted %aitin time between activities, i.e. you !ust wait . days after pouring the concrete before you can construct the fra!e of the house.
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T*e purpo!e of net%or/ 'ia ram! i! to : *how inter'epen'encie! of A77 activities 6 a deco!position of =#* , *how wor% flow so the tea! will %now what activities nee' to happen in a specific sequence 1id in effectively planning, organi0ing and controlling the project Compre!! the schedule in planning and throughout the life of the project *how project pro re!! if used for schedule control and reporting Help ju!tify your ti!e esti!ate for the project
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Project Scope Statement Activity List Acti"ity Attri(ute! Milestones List 1pproved Changes :equests
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"recedence Biagra!!ing +ethod 6 "B+ , 1rrow Biagra!!ing +ethod 6 1B+ , *chedule 8etwor% e!plates Bependency Beter!ination 1pplying >eads 5 >ags
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Project ,c*e'u#e Net%or/ Dia ram! 1ctivity >ist 6 Dpdates , 1ctivity 1ttributes 6 Dpdates , :equested Changes
Acti"ity Re!ource E!timatin :

Asti!ating the type 5 quantitie! of re!ource! 6 persons, equip!ent, or !aterial , required to perfor! eac* !c*e'u#e acti"itie!. his activity is closely coordinated with the Co!t E!timatin process. A#ternati"e! Ana#y!i!, i.e. various levels of resource capability or s%ills, different si0e or type of !achines, different tools 6 hand vs. auto!ated ,, !a%e-orbuy decisions regarding the resource. Acti"ity Re!ource Requirement!, i.e. types of resources are applied, their availability, 5 what quantity are used. Re!ource -rea/'o%n ,tructure is a hierarchical structure of resources by resource category and resource type used in Re!ource 7e"e##in schedules and to develop resource-li!ited schedules, and which !ay be used to identify and analyse project hu!an resource assign!ents
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AA( &"1, i.e. policies regarding staffing, rentalFpurchase of supplies, 5 equip!ent. Activity List Activity Attributes :esource 1vailability, i.e. where and when Project Management Plan
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A$pert Eudge!ent, i.e. consultants A#ternati"e! Ana#y!i!
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Acti"ity Re!ource Requirement! 1ctivity 1ttributes 6 Dpdates ,
"ublished Asti!ating Bata, !ostly in !edia Re!ource -rea/'o%n ,tructure 5 R-, 6 "roject +anage!ent *oftware -ottom<up E!timatin :esource Calendar 6 Dpdates , I wor%ing 5 nonwor%ing days, holidays 5 availability periods J. :equested Changes
Acti"ity Duration E!timatin :

Asti!ating the nu!ber 6 quantitati"e a!!e!!ment , of %or/ perio'! that will be needed to co!plete eac* !c*e'u#e acti"itie!. his process uses infor!ation on : schedule activity scope of wor% required resources types esti!ated resource quantities resource calendars with resource availability his process requires that the : a!ount of wor% effort required to co!plete the schedule activity is e!timate'. assu!ed a!ount of resource to co!plete the schedule activity is e!timate'. nu!ber of wor% periods needed to co!plete the schedule activity is 'etermine'. he accuracy can be i!proved by con!i'erin t*e amount of ri!/ in t*e ori ina# e!timate. Ana#o ou! E!timatin : uses the actual duration of a pre"iou! 5 !imi#ar schedule activity as the basis. is used when there is a #imite' amount of detailed infor!ation, in the early phases of a project. uses *i!torica# information a for! of E+pert Ju' ement. Parametric E!timatin , uses !athe!atical !odel to calculate projected ti!es for an activity based on historical records and other infor!ation : :egression analysis 6 scatter diagra! , >earning curve Parametric "stimating #$echni%ue& : 1n esti!ating technique that uses a !tati!tica# re#ation!*ip between *i!torica# 'ata and ot*er "aria(#e! 6e.g., square footage in construction, lines of code in software develop!ent, to calculate an esti!ate for activity para!eters, such as !cope, co!t, (u' et, and 'uration. his technique can produce *i *er #e"e#! of accuracy depending upon the sophistication and the underlying data built into the !odel. 1n e$a!ple for the cost para!eter is !ultiplying the planned quantity of wor% to be perfor!ed by the historical cost per unit to obtain the esti!ated cost. $hree'Point "stimate #$echni%ueJ 6 ri!/ re#ate' , : 1n analytical technique that uses three cost or duration esti!ates to represent the Optimi!tic, Mo!t #i/e#y, and Pe!!imi!tic scenarios. his technique is applied to i!prove the accuracy of the esti!ates of cost or duration when the underlying activity or cost co!ponent is uncertain.
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AA(, i.e. historical reference data or co!!ercial data. &"1, i.e. previous project results Project Scope Statement Activity List Activity Attributes Activity esource e!uirements, because the resources assigned to the schedule activity 5 the availability of those resources, will influence the duration of !ost activities. esource Calen"ar, which includes the availability, capabilities, 5 s%ills of H:, as well as the type, qty, availability, 5 capability of both equip!ent 5 !aterial resources. Project Management Plan : :is% :egister 1ctivity Cost Asti!ates
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One<Time 5 E+pert Ju' ement 6 E Ana#o ou! E Parametric E F<Point E!timatin
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Acti"ity Duration E!timate!
1ctivity 1ttributes 6 Dpdate ,, which include the assu!ption !ade in :eserve 1nalysis : developing the 1ctivity Buration Contin ency reserves, ti!es reserves, Asti!ates and any contingency reserves. or buffers, which is docu!ented along with other data and assu!ptions. Mana ement reserves, is any e$tra a!ount of funds to be set aside to cover unforeseen ris%s.
,c*e'u#e De"e#opment :
1nalysing activity sequences, durations, resource require!ents, 5 schedule constraints to create t*e project !c*e'u#e. An iterati"e proce!!, deter!ines planned start 5 finish dates for project activities 6 ca#en'ar<(a!e' ,.
It can require that duration esti!ates 5 resource esti!ates are re"ie%e' an' re"i!e' to create an appro"e' project !c*e'u#e that can be served as a (a!e#ine against which progresses can be trac%ed. In order to develop a schedule, you need to have: 1n understanding of the wor% required on the project 6 Project ,cope ,tatement , Befined activities 6 W-,, W-, Dictionary, and Acti"ity 7i!t , he order of how the wor% will be done 6 Acti"ity ,equencin , 1n esti!ate of the resources needed 6 Acti"ity Re!ource E!timatin , 1n esti!ate of the duration of each activity 6 Acti"ity Duration E!timatin , 1 co!pany calendar identifying what are wor%ing and non-wor%ing days I!posed dates 5 !ilestones 1ssu!ptions 5 Constraints :is% !anage!ent plan-because it includes a schedule and budget for perfor!ing :is% Identification, 9ualitative :is% 1nalysis and other ris% !anage!ent activities :is% register-because it includes ris%s %nown to date >eads and lags here are - !ajor categories of ti!e constraints 6 Project ,cope ,tatement , during this develop!ent : impo!e' 'ate! on acti"ity !tart! or fini!*e! the project !pon!or, project cu!tomer, or other !ta/e*o#'er! often dictate %ey events or !ajor !ilestones affecting the co!pletion
PERT 1 !ethod to analyse the tas%s involved in co!pleting a given project, especially the ti!e needed to co!plete each tas%, and identifying the !ini!u! ti!e needed to co!plete the total project. (or!ula : 6 " Q /+ Q & , F L *tandard Beviation of an activity : 6 " ) & , F L I shows the a!ount of uncertainty or ris%s involved in the esti!ate for the activity J Cariances of an activity : I*tandard BeviationJ Critica# C*ain Met*o' his !odifies the project schedule to account for #imite' re!ource!, !i$es 'etermini!tic and pro(a(i#i!tic approaches, 5 puts !ore e!phasis on the re!ource!. If resources are always available in unli!ited quantities, then a project7s Critical Chain is identical to its Critical "ath. his technique involves a''in 'uration (uffer!2 %*ic* are not actua# acti"itie!. Critica# Pat* 'enerally, but not always, the sequence of schedule activities that deter!ines the duration of the project. 'enerally, it is the longest path through the project. However, a critical path can end, as an e$a!ple, on a schedule !ilestone that is in the !iddle of the project schedule and that has a finish-nolater-than i!posed date schedule constraint. Critica# Pat* Met*o' he essential technique for using C"+ is to construct a !odel of the project that includes the following: a list of A77 acti"itie! required to co!plete the project 6 =#* , the ti!e 6 'uration , that eac* acti"ity will ta%e to co!pletion the 'epen'encie! (et%een the acti"itie! Dsing these values, C"+ calculates t*e #on e!t pat* of p#anne' acti"itie! to t*e en' of t*e project, %it*out regard to resource li!itations, and the earliest and latest that each activity can start and finish without !a%ing the project longer. his process deter!ines which activities are ;critica#; 6i.e., on t*e #on e!t pat*, and which have ;tota# f#oat; 6i.e., can (e 'e#aye' %it*out ma/in t*e project #on er,. he Critical "ath is the longest duration path through a networ% diagra! and deter!ines the shortest ti!e to co!plete the project, which : Helps prove how long the project will ta%e Helps the project !anager deter!ine where best to focus her project !anage!ent efforts 6 prioriti!e , Helps deter!ine if an issue needs imme'iate attention "rovides a vehicle to compre!! the schedule during project planning and whenever there are changes "rovides a vehicle to deter!ine which activities have f#oat and can therefore be 'e#aye' %it*out 'e#ayin t*e project
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F#oat 5 ,#ac/ 6 1ctivities on the critical path al!ost always have 3ero f#oat. Critical path activities that are delayed or have dictated dates can result in ne ati"e f#oat. otal float 6slac%, - he a!ount of ti!e an acti"ity can be delayed %it*out 'e#ayin the project en' 'ate or and inter!ediary !ilestone. (ree float 6slac%, - he a!ount of ti!e an acti"ity can be delayed %it*out 'e#ayin the early !tart 'ate of its successor6s,. "roject float 6slac%, - he a!ount of ti!e a project can be delayed %it*out 'e#ayin the e$ternally i!posed project comp#etion 'ate required by the custo!er, !anage!ent, or previously co!!itted to by the project !anager. :e!e!ber : there can be !ore than one Critical "ath, which increa!e t*e ri!/!. a Critical "ath can change. the networ% diagra! does not change when the end date changes, but the project !anager should investigate options, such as fa!t trac/in and cra!*in the schedule, to !eet the new date and then, with approved changes, change the networ% diagra! accordingly. when a project has a ne ati"e f#oat, the project !anager should consider to compre!! t*e !c*e'u#e. ,c*e'u#e Compre!!ion : ,shorten the project schedule %it*out changing scope. It is done : during "roject "lanning to see if the desired co!pletion date can be !et, and what will have to change to !a%e that date during Integrated Change Control to loo% at the schedule i!pacts of changes to ti!e, cost, scope, and ris% before finali0ing the schedule he i!pacts of different schedule shortening options : (ast trac% Crash :educe scope Cut quality 1dd ri!/! and !ay add !anage!ent ti!e for the project !anager Involves re<!equencin of acti"itie! 6 put acti"itie! in para##e# , on the networ% diagra! 1dd co!t! and !ay add !anage!ent ti!e for the project !anager Involves putting more re!ource! on the Critical "ath 6 no changes in the networ% diagra! , Could save cost 5 ti!e and !ay negatively i!pact custo!er satisfaction Could save cost 5 resource, !ay increase ris%, and requires good !etrics
Monte Car#o Ana#y!i! a technique that compute! or iterate!, the project co!t or project !c*e'u#e !any ti!es using input values selected at rando! fro! pro(a(i#ity 'i!tri(ution! of po!!i(#e co!t! or 'uration!, to calculate a distribution of possible tota# project co!t or comp#etion 'ate!. is a !ethod of esti!ating uses a co!puter to !imu#ate t*e outcome of a project !a%ing use of the three ti!e esti!ates 6 Optimi!tic, Pe!!imi!tic and Mo!t #i/e#y , for each activity and the networ% diagra!. he si!ulation can tell you: o the o"era## project ris% o that an esti!ate for an activity nee'! to c*an e, but not what the activity esti!ates should be o the probability of co!pleting the project on any !pecific 'ay an' any !pecific amount of co!t o the probability of any activity actually being on the Critica# Pat* help deal with 3path convergence4, places in the networ% diagra! where !ultiple paths convergence into one or !ore activities, thus adding ris%. Re!ource 7e"e##in :efers to !aintaining the !ame num(er of re!ource! on the project for each ti!e period, and has nothing to do with assigning activities or !anaging !eeting. >evelling let schedule slip and cost increase in order to deal with a #imite' amount of re!ource, re!ource a"ai#a(i#ity, and other re!ource con!traint!. Mi#e!tone c*art! only shows !ajor events 6 less detail , have no duration, only the co!pletion of activities. part of the inputs to 1ctivity *equencing good tools for reporting to !anage!ent 5 custo!er 6 because less detail , -ar 4 Gantt c*art! it i! not a Project Mana ement P#an!. it is co!pleted AFTER a =#* 5 networ% diagra! in the project !anage!ent process. wea% planning tools, but effective tools for pro re!! reportin and contro#. it is designed to show a relationship of acti"itie! to time. his is best used when de!onstrating pro re!! or !tatu! a! a factor of time. !ore co!prehensive su!!ary activity, so!eti!es referred to as a $ammoc/ activity, is used between mi#e!tone! or acro!! mu#tip#e inter'epen'ent %or/ pac/a e! only represent part of the triple constraints of projects, because they focus pri!arily on !c*e'u#e !anage!ent. 'o not repre!ent t*e !i3e of a project or t*e re#ati"e !i3e of %or/ e#ement!, therefore the !agnitude of a behind-schedule condition is easily !isco!!unicated. If two projects are the sa!e nu!ber of days behind schedule, the larger project has a larger i!pact on resource utili0ation, yet the 'antt does not represent this difference. because the hori0ontal bars of a 'antt chart have a fi$ed height, they can !isrepresent the ti!e-phased wor%load 6resource require!ents, of a project. 1 co!!on error !ade by those who equate 'antt chart design with project design is that they atte!pt to define the project =#* at t*e !ame time that they define schedule activities. 1 related criticis! is that all activities of a 'antt chart show planned wor%load as constant. In practice, !any activities 6especially su!!ary ele!ents, have front-loaded or bac%-loaded wor% plans, so a 'antt chart with percent-co!plete shading !ay actually !isco!!unicate the true schedule perfor!ance status. Reque!te' C*an e! he process of creating a final schedule could cause changes to the =#*, "roject ,cope *tate!ent and other parts of the developing "roject +anage!ent "lan. (or e$a!ple, the scheduling process deter!ines that the desired project co!pletion date cannot be !et. he best option for that particular project is to cut !cope. hat scope change would li%ely affect the =#*.
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Project ,c*e'u#e, produces : 1 start 5 end date for each schedule activity Can be in the following graphic for!at : o 8etwor% diagra!s o #ar charts, i.e. 'antt Chart o +ilestone charts ,c*e'u#e -a!e#ine, specific version of the project schedule, accepted 5 approved by the project !anage!ent tea! as the project7s schedule baseline.
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&"1, i.e. project ca#en'ar. Project Scope Statement, Activity List Activity Attributes Project Sche"ule #et$or% Diagrams Activity esource e!uirements esource Calen"ar Activity Duration &stimates Project Management Plan, !ainly :is% :egister.
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*chedule 8etwor% 1nalysis, a technique that generates the project schedule, e!ploys various schedule !odels. Critical "ath +ethod *chedule Co!pression =hat-If *cenario 1nalysis, e$plore various scenarios using si!ulation tools 6 +onte Carlo , :esource >evelling Critical Chain +ethod "roject +anage!ent *oftware 1pplying project 5 resource Calendars 1djusting >eads 5 >ags *chedule +odel Project ,c*e'u#e
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*chedule +odel Bata, includes : schedule !ilestones schedule activities activity attributes 1ssu!ptions 5 Constraints ,c*e'u#e -a!e#ine :esource :equire!ents 6 Dpdate , 1ctivity 1ttributes 6 Dpdate , "roject Calendar 6Dpdate , :equested Changes "roject +anage!ent "lan 6Dpdate ,
Co!t E!timatin :
Beveloping an appro+imation of the costs of the resources needed to co!plete project activities. Includes i'entifyin and considering "ariou! co!tin a#ternati"e! 6 additional wor% ,, and whether the e$pected savings can offset the cost of the additional design wor%. A$pressed in units of currency 6 X, Auro, Men, etc , to faci#itate compari!on! (ot* %it*in 8 acro!! project!. A$pressed in units of mea!ure! 6 staff hours or staff days , to faci#itate appropriate mana ement contro#. =hen co!pleted, Cost Asti!ating should result in esti!ates 5 supporting detail on how the esti!ates were derived. It can also result in changes to resources, schedule, 5 other parts of the "roject +anage!ent "lan in order to decrease the project costs.
he costs for schedule activities are esti!ated for a## re!ource!, i.e. labour, !aterials, equip!ent, services, facilities, inf#ation a##o%ance, contingency cost, that will be charged to the project. his is a quantitati"e a!!e!!ment of the li%ely costs of the resources required to co!plete the schedule activity. =hat is esti!ated? 1ll the wor% needed to co!plete the project including: 9uality 5 :is% efforts he project !anager7s ti!e Costs of project !anage!ent activities Costs directly associated with the project, including training for the project, paper, pencils, needed labour &ffice e$penses for offices used directly for the project Profit, when applicable &verhead, such as !anage!ent salaries, general office e$penses 1ccuracy of Asti!ates : Rou * Or'er of Ma nitu'e 6 :&+ ,, !ade during the 0nitiatin Proce!!, and is in the range of <GHI to EJHHI fro! actual Definiti"e, the esti!ate could beco!e !ore refined to a range of <JHI to EJGI fro! actual Or'er of Ma nitu'e E!timate - 6 <KGI to ELG I , his is an appro$i!ate esti!ate !ade %it*out detailed data, that is usually produced fro! co!t capacity cur"e!, scale up or down factors that are appropriately escalated and appro$i!ate co!t capacity ratio!. his type of esti!ate is used during the for!ative stages of an e$penditure progra! for initia# evaluation of the project. Project ,cope ,tatement, such as : Con!traint! : specific factors that can li!it cost esti!ating options, i.e. li!ited project budget, delivery dates, available s%illed resources, 5 organisational policies. A!!umption! : factors that will be considered to be true, real, or certain Requirement!, with contractua# 5 #e a# i!plications, i.e. health, safety, security, perfor!ance, environ!ent, insurance, intellectual property rights, equal e!ploy!ent opportunity, licences, and per!its 1 #i!t of 'e#i"era(#e!, 5 Acceptance Criteria for the project 5 its products, services, 5 results. Project Mana ement P#an : Sche"ule Management Plan : o Acti"ity Re!ource E!timatin , deter!ine the availability 5 quantities required of staff, equip!ent, 5 !aterial needed to perfor! schedule activity. o Acti"ity Duration E!timatin affect cost esti!ates : &n any project where project budget includes an a##o%ance for the cost of financing, interest charges, 5 where resources are applied per unit of ti!e. hat have time<!en!iti"e costs Sta''ing Management Plan, staffing attributes and per!onne# rate!. is% register, where the co!t e!timator considers infor!ation on :is% :esponses
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Ana#o ou! E!timatin 5 empirica# ana#y!i! 4 top<'o%n 6 W*at Dsing the pre"iou! F !imi#ar projects Dses top<'o%n esti!ating techniques 8o detailed info about the project Dses E+pert Ju' ement >ess costly but less accurate he persons or group preparing the esti!ates have the needed e$pertise A'"anta e! 9uic% 1ctivities need not be identified >ess costly to create 'ives the "roject +anager an idea of the level of !anage!ent2s e$pectations &verall project costs will be capped Di!a'"anta e! >ess accurate Asti!ates are prepared with a li!ited a!ount of detailed infor!ation 5 understanding of the project :equires considerable e$perience to do well Infighting to gain the biggest piece of the budget without being able to justify the need A$tre!ely difficult for projects with uncertainty Boes not ta%e into account the differences between projects
-ottom<up E!timatin W*at *u! the cost of individual wor% pac%ages ypically !otivated by si0e 5 co!ple$ity of the individual schedule activityFwor% pac%age Betailed esti!ating is done for each activity 6 if available , or wor% pac%age 6 if activities are not defined ,, 5 the esti!ates are then rolled up into an o"era## project e!timate A'"anta e! +ore accurate 'ains buy-in fro! the tea! because the tea! creates esti!ates they can live with #ased on detailed analysis of the project "rovides a basis for !onitoring and controlling, perfor!ance !easure!ent 5 !anage!ent Di!a'"anta e! a%e ti!e 5 e$pense endency for the tea! to pad esti!ates unless taught about reserves :equires that the project be defined 5 well understood before wor% begins :equires ti!e to brea% the project down into s!aller pieces
Parametric E!timatin 5 !tati!tica# 6 Dses a !tati!tica# relationship between historical data 5 other variables 6 i.e. lines of codes, required labour hour, square footage in construction ,. "roduce high level of accuracy 6 uses mat*ematica# mo'e# , (or e$ : I planned quantity of wor% to be perfor!ed S historical cost per unit J Determine Re!ource Co!t Rate!, by : Gat*erin quote! to obtain the unit cost rates, i.e. staff costFhour, etc. &btaining data fro! commercia# 'ata(a!e! 5 seller published price #i!t!. ;en'or -i' Ana#y!i! In cases where projects are won under competiti"e proce!!e!, additional cost esti!ating wor% can be required of the project tea! to e$a!ine t*e price of in'i"i'ua# 'e#i"era(#e!, and derive a cost that !upport! t*e fina# tota# project co!t. Acti"ity Co!t E!timate!, a quantitati"e a!!e!!ment of the li%ely costs of the resources 6 i.e. labour, !aterials, equip!ent, services, facilities, info tech, inflation allowance, cost contingency reserve , required to co!plete schedule activities. Acti"ity Co!t E!timate! ,upportin Detai# 5 !*ou#' (e c#ear2 profe!!iona#2 8 comp#ete picture 6 , should include : Bescription of the schedule activity2s "roject *cope of =or% Boc of the basis for the esti!ate 6 i.e. how it was developed , Boc of any A!!umption! ma'e 8 Con!traint! Indication of the range of possible esti!ates or Rou * Or'er of Ma nitu'e 6 :&+ , Cost of (uality )C*(+ I echniqueJ : Beter!ining the costs incurred to en!ure quality. Pre"ention an' Apprai!a# Co!t! 6 Cost of Confor!ance , include costs for 9P2 9C2 an' 9A to ensure co!pliance to require!ents 6i.e., training, 9C syste!s, etc.,. Fai#ure co!t! 6 Cost of 8on-Confor!ance , include costs to rewor% products 6 poor quality , , co!ponents, or processes that are nonco!pliant, costs of warranty wor% and waste, and loss of reputation.
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AA( I !ar%etplace conditions 5 co!!ercial databases J &"1 : Cost esti!ating policies 5 te!plates >essons learned 5 historical infor!ation "roject tea! %nowledge 5 project files Project Scope Statement WBS & WBS Dictionary Project Management Plan
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Ana#o ou! E -ottom<up E Parametric E!timatin E Determine Re!ource Co!t Rate! "roject +anage!ent *oftware Cendor #id 1nalysis :eserve 1nalysis F Contingency 1llowances : Dsed at the discretion of the project !anager to deal with anticipated events 6 3/no%n un/no%n!4 5 part of Project ,cope 5 Co!t (a!e#ine ,. Co!t of 9ua#ity
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Acti"ity Co!t E!timate! Acti"ity Co!t E!timate! ,upportin Detai# :equested Changes, that !ay affect the Co!t Mana ement P#an, Acti"ity Re!ource Requirement, 5 other co!ponents of the Project Mana ement P#an. Cost +anage!ent "lan 6 updates ,
Co!t -u' etin :

1ggregating the esti!ated costs of in'i"i'ua# acti"itie! or %or/ pac/a e! to E,TA-70,$ a co!t (a!e#ine. "roject *cope *tate!ent provides the !ummary (u' et. he schedule activity or wor% pac%age cost esti!ates are prepare' PR0OR to t*e 'etai#e' (u' et reque!t! 8 %or/ aut*ori!ation.
Co!t A re ation 4 Co!t -u' etin !tep! : 1ctivities -K =or% "ac%ages -K Control 1ccount -K "roject -K Contingency :eserve -K Cost #aseline -K +anage!ent :eserve -K Cost #udget
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Re!er"e Ana#y!i!2 which establishes Contin ency Re!er"e! 6 is for the ri!/! remainin after :is% :esponse "lanning ,. I Mana ement Contin ency Re!er"e! are: budgets reserved for unp#anne' c*an e! 6 unfore!een ri!/! , to project scope 5 cost not a part of the project cost baseline, but inc#u'e' in the budget for the project not 'i!tri(ute' as budget, so they2re not a part of the Aarned Calue calculation. J Mana eria# Re!er"e! :eserve accounts under the sole authority of senior !anage!ent that can be used to allow for un(u' ete' e+pen!e! or tran!fer of fun'! between strategy areas lac%ing sufficient budgeted funds or to cover cost overruns. 1fter Co!t -a!e#ine 8 Co!t -u' et are comp#ete', e!timator! will co!pare these nu!bers to Parametric E!timate!, for a sanity chec% of the detailed 5 high-level esti!ates. he detailed esti!ate is chec%ed against these "ara!etric Asti!ates, 5 the difference are investigated and justified. he ne$t thing to be chec%ed is ca!* f#o% 6part of funding li!it reconciliation,. (unding !ay not be available when needed, causing changes to the other parts of the project and iterations of the project !anage!ent plan 6e.g., we will need XHNN,NNN to purchase the equip!ent on Eune 1, but the !oney will not be available until Euly 1. =e will have to !ove this activity to later in the schedule,. he co!t (a!e#ine therefore is time<p*a!e' and !ay be shown as an *-curve. #efore the proposed Cost #aseline 5 Cost #udget beco!es final, reconci#iation with any cost constraints in the Pre#iminary Project ,cope ,tatement is needed. *uch as !eeting with !anage!ent, justifying if their cost can be !et, 5 proposing options to 'ecrea!e costs. his is part of "roject +anager2s responsibility to reconci#e in this way. *uch reconciliation is part of 0nte ration. Parametric E!timatin It involves using project characteristics 6para!eters, in a mat*ematica# mo'e# to pre'ict tota# project co!t!. Cost 5 accuracy of para!etric !odel are reliable when : historical info used to develop the !odel is accurate para!eters used in the !odel are readily quantifia(#e mo'e# i! !ca#a(#e 5 %or/! for #ar e an' !ma## project 6 Contingency Reserve I&utputFInputJ : he a!ount of funds, budget, or ti!e needed a(o"e t*e e!timate to re'uce the ris% of overruns of project objectives to a level acceptable to the organi0ation. It should be a''e' to t*e (a!e co!t! of the project to account for ris%s.
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Project Scope Statement, i.e. fun'in con!traint! WBS & WBS Dictionary Activity Cost &stimates Activity Cost &stimates Supporting Detail Project Sche"ule, includes planned start 5 finish dates for the project2s schedule activities, schedule !ilestones, wor% pac%ages, planning pac%ages, 5 Control 1ccount. esource Calen"ars Contract, any info related to what products, services, or results have been purc*a!e' Cost Management Plan Co!t A re ation :eserve 1nalysis "ara!etric Asti!ating
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Co!t -a!e#ine is : a ti!e-phased budget used as a basis against which to !easure, !onitor, 5 control overall cost perfor!ance on the project developed by !ummin e!timate' co!t! (y perio' displayed as an *-curve !ust include a contin ency re!er"e for ris%s "roject (unding :equire!ents YYYY Cost +anage!ent "lan 6 updates , :equested Changes
(unding >i!it :econciliation, such as cash flow.
9ua#ity P#annin :
i'entifyin which qua#ity !tan'ar'! are relevant to the project 5 deter!ining how to satisfy the!. perfor!ed in parallel with other process, i.e. required changes in the product to !eet quality standard !ay require cost or schedule adjust!ent. delivering precisely %*at i! promi!e'. the "roject Charter and "roject *cope *tate!ent are needed -EFORE 9uality "lanning can begin. involves deter!ining %*at %or/ %i## nee' to (e 'one to meet t*e !tan'ar'!5 foun' or create' 6, in which wor% can be a''e' to t*e W-,, resources can be changed and e$tra actions by the project !anager a''e' to the "roject +anage!ent "lan. !ust be balanced with the other co!ponents of the ;trip#e con!traint;
9ua#ity i! p#anne'2 'e!i ne'2 an' (ui#t in ? not in!pecte' in. ,tan'ar' 1 standard is an agreed upon process to wor% or achieve a result. 1 standard is often strenuously tested before it is instituted, in order for it to beco!e the reco!!ended standard. *tandards co!e fro! within the organi0ation, or fro! govern!ent or professional associations. *tandards are invaluable to pre"ent rein"entin t*e %*ee# on the project, as they help get the wor% done faster and with higher quality. 9ua#ity Po#icy 1s endorsed by the senior !anage!ent, the 9uality "olicy is the intended direction with regard to quality, adopted 3as is4 for use by the project. T*re!*o#'! =hich are defined as Cost, i!e, or resource value used as para!eters, can be part of Project ,cope ,tatement. If these threshold values are e$ceeded, it will require action fro! the project !anage!ent tea!. Acceptance Criteria Includes perfor!ance requirement! 5 con'ition! that !ust be achieved before project deliverables are accepted.
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Forma# acceptance Calidates that all Acceptance Criteria have been !ati!fie'. Co!t<-enefit Ana#y!i! he main (enefit of !eeting quality require!ents is less rewor%, which !eans higher productivity, lower costs, 5 increased sta%eholder satisfaction. main co!t of !eeting quality require!ents is the e$pense associated with "roject 9uality +anage!ent activities. he
9ua#ity Mana ement P#an Includes the following : =hat are the standards for this project describe how the project !anage!ent tea! will imp#ement the perfor!ing organisation qua#ity po#icy. provides input to the overall "roject +anage!ent "lan 5 address 9C, 91, 5 continuous process i!prove!ent for the project =ho2ll be involved in !anaging quality, when 5 what will their specific duties :eview of earlier decisions 6 concept!2 'e!i n! 8 te!t! , to !a%e sure they2re correct, to pre"ent a re%or/ 6 thus reduce the costs 5 schedules ,. +eetings about quality :eports that address quality +etrics used to !easure quality =hat parts of project or deliverables will be !easured and when 9ua#ity Metric! a !etric is an operational definition that describes what so!ething is 5 how the 9C process !easures it. a !easure!ent is an actual value. is used in the 91 5 9C process, for e$, 'efect 'en!ity2 fai#ure rate2 a"ai#a(i#ity2 re#ia(i#ity2 8 te!t co"era e 9ua#ity C*ec/#i!t! is a structured tool to verify that a set of required steps has been perfor!ed !ay available fro! professional associations or co!!ercial service providers used in the 9C process Proce!! 0mpro"ement P#an, steps for analysing processes to e#iminate %a!tefu# acti"itie!, such as : proce!! (oun'arie!, describes the purpose, start 5 end of process, input 5 output, data required. proce!! confi uration, a flowchart of process to facilitate analysis. proce!! metric!, !aintain control over status of processes. tar et! for impro"e' performance.
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AA(, i.e. gov regulations, rules, standards, etc. &"1, i.e. quality policy 6 the project !anage!ent tea! is responsible for ensuring that the project sta%eholders are fully aware of the policy through the appropriate 0nformation Di!tri(ution ,
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Co!t<-enefit Ana#y!i!, i.e. cost-benefits trade-off #ench!ar%ing, to loo% at pa!t project to deter!ine ideas for i!prove!ent on the current project and to provide a basis to use in !easure!ent of quality perfor!ance. 9ua#ity Metric! 9ua#ity C*ec/#i!t!
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9ua#ity Mana ement P#an
Proce!! 0mpro"ement P#an Besign of A$peri!ents 6 B&A , : 9ua#ity -a!e#ine : a !tati!tica# !ethod to identify factors that !ay Project Scope Statement, which is a %ey records the quality objectives i!prove the quality or opti!ise the product. input since it docu!ents !ajor project provides a !tati!tica# frame%or/ for syste!atically is the basis for !easuring 5 reporting quality deliverables, objectives that serve to define changing all of the i!portant factors, instead of perfor!ance as part of the Performance require!ents, threshold, and Acceptance changing the factors one at a ti!e. Mea!urement -a!e#ine. Criteria. Co!t of 9ua#ity 5 CO9 6 "roject +anage!ent "lan 6 updates ,, Project Management Plan incorporation of the 9ua#ity Mana ement P#an 5 A''itiona# 9ua#ity P#annin Too#!, i.e. brainstor!ing, Proce!! 0mpro"ement P#an. affinity diagra!s, force fie#' ana#y!i!, no!inal group technique, !atri$ diagra!s, flowcharts, 5 prioritisation !atrices.
$R P#annin :
Identifying 5 docu!enting project ro#e!, re!pon!i(i#itie!, and reportin re#ation!*ip!, as well as creating the ,taffin Mana ement P#an. AA( needed as an input : organi0ational, i.e. depts involved 5 relationship a!ong the! technical, i.e. different s%ills, disciplines, 5 specialities involved interpersonal, i.e. re#ation!*ip a!ong tea! !e!bers, their job descriptions, supervisor-subordinate 5 supplier-custo!er relationship, cu#tura# 5 #an ua e differences that !ay affect wor%ing relationship, the level of trust 5 respect. logistical, i.e. eo rap*ica# #ocation, ti!e 0ones political, i.e. individual goals 5 agendas of the potential project sta%eholder, informa# po%er,5 a##iance!. Constraints that can li!it this process 6 CEO , : o Collective bargaining agree!ents, i.e. union! o Acono!ic conditions, i.e. hiring free0es, reduces training funds, or a lac% of travel budget o &rganisational *tructure, whose basic structure is a %ea/ matri+ 6 wea% role for the project !anager , &"1 needed as an input : e!plates, i.e. project organi0ation charts, position description, project perfor!ance appraisal, 5 a !tan'ar' conf#ict mana ement approac*. Chec%-lists, i.e. co!!on project role 5 responsibilities, training, co!pliance issues, re%ar' i'ea!
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Or ani3ation C*art! 8 Po!ition De!cription! 1ll roles and responsibilities on the project !ust be clearly a!!i ne' and closely lin%ed to the Project ,cope ,tatement I communication a!!i ne' re!pon!i(i#itie! J : $ierarc*ica#<type c*art!, i.e. &#*, :#*, 5 =#* o W-, : project deliverables are bro%en down into wor% pac%ages o O-, : project deliverables are bro%en down into depart!ents 6 I Bept, 1ccount Bept, etc ,, units, or tea!s o R-, : project deliverables are bro%en down by type of re!ource! helpful in trac/in project co!t! can be aligned with the organisation7s accountin !y!tem can contain re!ource cate orie! other than H: Matri+<(a!e' c*art! - (or e$ :1+ 6 Re!pon!i(i#ity A!!i nment Matri+ , - a structure, chart, or table : o that relates the project &#* to =#* to ensure that each co!ponent of the project7s scope of wor% is assigned to a responsible person 6 %*o 'o %*at , o to designate ro#e!, re!pon!i(i#itie!, and level of aut*ority for a specific activities 6 show who is participant, who is accountable, who handles reviews, who provides input and who !ust sign off on specific wor% pac%ages or project phases , 1 type of :1+ is called RAC0. Te+t<oriente' format! - a docu!ent which describe po!ition and ro#e<re!pon!i(i#ity<aut*ority of tea! !e!bers. &ther sections of the "roject +anage!ent "lan, such as ris% register lists ris% owners, the co!!unication plan lists tea! !e!bers responsible for co!!unication activities, and the quality plan for 91 5 9C activities.
Net%or/in his includes proactive correspondence, luncheon !eetings, infor!al conversations, 5 trade conferences, which will i!pact the effecti"ene!! of various *taffing +anage!ent options. Ro#e! 8 Re!pon!i(i#itie!, !ust address : Ro#e ) the label describing the portion of a project for which a person is accounta(#e, i.e. business analyst, testing coordinator, etc. Aut*ority ) t*e ri *t to app#y project re!ource!2 ma/e 'eci!ion!2 an' !i n appro"a#!. Re!pon!i(i#ity ) the wor% that a project tea! !e!ber is e+pecte' to perform in order to comp#ete the project7s activities. Competency ) the s%ill 5 capacity require' to co!plete project activities. ,taffin Mana ement P#an : a subset of "roject +anage!ent "lan a docu!ent which describes %*en 8 *o% tea! !e!bers will be a''e' to 8 re#ea!e' fro! the project2 an' %*at p#an to 'e"e#op team mem(er! ite!s to consider : o !taff acqui!ition, i.e. will the staff is e$ternal, internal, or contractor ? =ill the staff wor%ing fro! ho!e or office ? o time ta(#e 4 Re!ource $i!to ram 4 (ar c*art , that shows the nu!ber of resources used per ti!e period or ro#e o"er time. o staff re#ea!e criteria, when tea! !e!bers are released fro! a project at the optimum time, pay!ent !ade for people who are finished with their responsibilities can be eli!inated and the costs reduced. +orale is i!proved when !moot* tran!ition! to upco!ing projects are a#rea'y p#anne'. o trainin needs o Reco nition 5 Re%ar'!, part of De"e#op Project Team - to be effective, !ust !a%e the lin% between perfor!ance and reward clear, e$plicit and achievable 6 this is one of the best ways to gain cooperation ,. his !ay include team1! (onu! p#an. o co!pliance with laws, H: policies, union contract!. o !afety *a3ar'!
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AA( 5 &"1 Project Management Plan, i.e. Acti"ity Re!ource Requirement! 6 part of Project Time Mana ement , Net%or/in
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&rgani0ation Charts 5 "osition Bescriptions
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Ro#e! 8 Re!pon!i(i#itie! ,taffin Mana ement P#an
&rgani0ational heory, which provides "roject &rgani0ation Charts, which displays the infor!ation regarding the ways that people, tea!, tea! !e!ber 5 their reporting relationship. 5 organisational units behave. his will shorten the a!ount of ti!e needed to create the H: "lanning outputs 5 i!proves the li%elihood that the planning will be effective.
Communication! P#annin :
Beter!ining the information 8 communication! nee'! of t*e !ta/e*o#'er!2 ON7@ ,TAKE$O7ER,2 6 who needs what infor!ation, when they2ll need it, how it2ll be given to the!, how frequently, and by who! ,. Dsually it2s done as part of the ear#ie!t project phases. &ften entails creation of a''itiona# 'e#i"era(#e! that require additional ti!e 5 effort. hus, t*e project1! W-,2 project !c*e'u#e2 8 project (u' et are up'ate' accor'in #y.
Communication i! not comp#ete unti# t*e !en'er confirm! t*e recei"er *a! un'er!too' t*e inten'e' me!!a e. Communication! Tec*no#o ie! (actors that can affect the project : urgency of the need for infor!ation availability of technology the e$pected project staffing the length of the project the project environ!ent ) does the tea! !eet 5 operate on a face-to-face basis or in a virtual environ!ent ?
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Communication! Mana ement P#an ) *o% you %i## mana e 8 contro# communication!, is contained in or a subsidiary of "roject +anage!ent "lan, provides : ,ta/e*o#'er communication requirement! 5 !ta/e*o#'er requirement! 8 e+pectation! pro"i'e an un'er!tan'in of !ta/e*o#'er oa#!2 o(jecti"e!2 8 #e"e# of communication 'urin t*e project. T*e nee'! 8 e+pectation! are i'entifie'2 ana#y!e'2 8 'ocumente' in t*i! p#an 6 Info to be co!!unicated 6 for!at, content, 5 level of detail , "erson responsible for co!!unicating the info "ersonFgroups who will receive the info +ethods or technologies to convey the infor!ation (requency of co!!unication. Ascalation process-identifying ti!e fra!e and the !anage!ent chain for escalation of issues that can2t be resolved at a lower staff level +ethod for updating 5 refining the Co!!unication +anage!ent "lan as the project progresses 5 develops. 'uidelines for project status !eetings, project tea! !eetings, e-!eetings, 5 e-!ail. 1 sa!ple attributes of this plan can include : Co!!. ite!s 6 what info , "urpose 5 (requency *tartFAnd dates (or!at F !ediu! :esponsibility
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AA( &"1, i.e. lessons learned 5 historical infor!ation. Project Scope Statement ) provides a co!!on %nowledge of project scope a!ong sta%eholders I ,ta/e*o#'er ana#y!i! i! comp#ete' a! part of t*e ,cope Definition proce!! J Project Management Plan : Constraints, i.e. geographic locations, inco!patible co!!unication software, or li!ited co!!unications technical capabilities. 1ssu!ptions ) depend upon the particular project.
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Co!!unications :equire!ents 1nalysis : 'etermine 8 #imit who will co!!unicate with who! and who will recei"e what infor!ation. the total nu!ber of co!!unication channel is n(n-1)/2 , where nPnu!ber of sta%eholdersFpeople. Co!!unications echnologies
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Communication! Mana ement P#an
Ri!/ Mana ement P#annin :

Beciding how to approach, plan, 5 e$ecute the ris% !anage!ent activities for a project. *hould be comp#ete' ear#y during "roject "lanning, since it is crucial to successfully perfor!ing other process. Tai#ore' t*e ri!/ ratin ru#e! 1n input to the P#an Purc*a!e! an' Acqui!ition! and P#an Contractin Proce!!e! in Procurement Mana ement. 1n input to Co!t and Time E!timatin , ,c*e'u#e De"e#opment and Co!t -u' etin , because it contains (u' et! and !c*e'u#e! Ri!/! cate orie! are lists of co!!on areas or sources of ris% e$perienced by the co!pany or si!ilar project. hese help analyse 5 identify. (or e$a!ple : o A$ternal 6 gov, regu, !ar%et shifts , o Internal 6 ti!e, costs, H:, !aterial , o echnical or technology o Dnforeseeable o Custo!er ,suppliers ,custo!er7s custo!ers o "roject !anage!ent 6 lac% of or poor , o :esistance to change o *ta%eholder F sponsor-caused ris%s o Cultural ris%s o :is%s origin 6 schedule, cost, quality, perfor!ance, scope, resource, custo!erFsta%eholder satisfaction ,
Ri!/ Mana ement P#an It includes : Met*o'o#o y - how you7ll perfor! the ris% !anage!ent using different approaches, tools, 5 data sources. Ro#e! 8 Re!pon!i(i#itie! - who will perfor! and clarify their responsibilities -u' etin ) assigns resources 5 esti!ates cost for the ris% !anage!ent process for inc#u!ion in t*e project co!t (a!e#ine. Timin 6 when 5 how often the :is% +anage!ent process will be perfor!ed and e!ta(#i!*e! ri!/ mana ement acti"itie! to (e inc#u'e' in t*e Project ,c*e'u#e ,. :is% +anage!ent should start a! !oon a! you have the appropriate inputs, repeate' throughout the project #ife cyc#e. Ri!/ cate orie! or Ri!/ -rea/'o%n ,tructure 5 R-, 6 Befinitions 5 standards of Ri!/ Pro(a(i#ity 8 0mpact matri+ - helps !tan'ar'i3e these interpretations and also helps compare ri!/! 6 for use in 9ua#itati"e Ri!/ Ana#y!i! &&& , between projects : relative scale for probability : 3very unli%ely4 to 3al!ost certainty4. relative scale for i!pact : ran%-ordered descriptor 6 Vvery low2, Vlow2, Vhigh2, etc , linearFnon-linear scale for i!pact : to avoid high i!pact threats or to e$ploit high i!pact opportunities Pro(a(i#ity 8 0mpact Matri+ : ris%s are prioriti!e' 6 high, !oderate, or low , according to their potential i!plications for !eeting the project2s objectives, and re"ie%e' 5 tai#ore' to he specific project during the :is% +anage!ent "lanning process. Re"i!e' !ta/e*o#'er! to#erance! - tolerances !*ou#' not (e imp#ie', but uncovered in Project 0nitiatin and clarified or refined continually. Reportin format! - describes the content and for!at of the :is% :egister as well as any other ris% reports required 5 defines how the outco!es of the ris% !anage!ent processes will be 'ocumente', ana#y!e', and communicate'. Trac/in , i.e. auditing, docu!enting if ris%s occur
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Ri!/ Cate orie! :is% categories are lists of co!!on areas or sources of ris% e$perienced by the co!pany, or on si!ilar projects. he categories help analyse and identify ris%s on each project 6 Ri!/ 0'entification , . here are !any ways to c#a!!ify or cate ori3e ris%, such as: e+terna# - regulatory, environ!ental, govern!ent, !ar%et shifts interna# - ti!e, cost, scope changes, ine$perience, poor planning, people, staffing, !aterials,equip!ent tec*nica# - changes in technology unfore!eea(#e - only a s!all portion of ris%s 6so!e say about lo percent, are actually unforeseeable :is% categories !ay be re"i!ite' during the Ri!/ 0'entification process. 1 good practise is to re"ie% the! during the Ri!/ Mana ement P#annin process PR0OR to their use in the Ri!/ 0'entification. :is% categories based on prior project !ay need to be tai#ore', a'ju!te', or e+ten'e' to new situations before these categories can be used on the current project. ,ource of ri!/ or ris% categories, that can be organised into an R-, : !c*e'u#e ri!/ - ; he hardware !ay arrive earlier than planned, allowing wor% pac%age YMZ to start three days earlier.; co!t ri!/ - ;#ecause the hardware !ay arrive later than planned, we !ay need to e$tend our lease on the staging area at a cost of X-N,NNN.; qua#ity ri!/ - ; he concrete !ay dry before winter weather sets in, allowing us to start successor wor% pac%ages earlier than planned.; performance or !cope ri!/ - ;=e !ight not have correctly defined the scope for the co!puter installation. If that proves true, we will have to add wor% pac%ages at a cost of X-N,NNN.; re!ource! ri!/ - ;:i%i is such an e$cellent designer that he !ay be called away to wor% on the new project everyone is so e$cited about. If that occurs, we will have to use so!eone else and our schedule will slip between 1NN and -RH hours.; cu!tomer !ati!faction 5!ta/e*o#'er !ati!faction6 ri!/ - ; here is a chance that the custo!er will not be happy with the YMZ deliverable and not tell us, causing at least a -N percent increase in co!!unication proble!s.; Definition! 8 !tan'ar'! of Ri!/ Pro(a(i#ity 8 0mpact 'eneral definitions of probability levels and i!pact levels are tailored to the individual project during the :is% +anage!ent "lanning process for use in the 9ualitative :is% 1nalysis process. "robability scale : fro! 3very unli%ely4 to 3al!ost certainty4 nu!erical scale, i.e. N.1, N.., N.H, N.R, N.U degree of !aturity of the project design 0mpact !ca#e :eflects the significance of i!pact, either negative for threat or positive for opportunities. hey are specific to the objective potentially i!pacted, the type 5 si0e of the project, the organisation7s strategies 5 financial state, and the organisation7s sensitivity to particular i!pacts : ran%-ordered, i.e. 3very low4, 3low4, 3!oderate4, 3high4, and 3very high4 linear, i.e. N.1, N.., N.H, N.R, N.U non-linear, i.e. N.NH, N.1, N.-, N./, N.T I !ay represent the organisation7s desire to a"oi' *i *<impact t*reat! or e+p#oit *i *<impact opportunitie! J Probability and ,m-act Matri. #$ool& : 1 co!!on way to deter!ine whether a ris% is considered low, !oderate, or high by co!bining the two di!ensions of a ris%: its pro(a(i#ity of occurrence, and its impact on o(jecti"e! if it occur!
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AA( ) attitudes toward ris% 5 ris% tolerance &"1 ) predefined approaches to ris% !anage!ent, i.e. ris% categories, co!!on definition of concepts 5 ter!s, roles 5 responsibilities, and aut*ority #e"e#! for 'eci!ion<ma/in . Project Scope Statement Project Management Plan
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"lanning +eetings 5 1nalysis : Ri!/ Mana ement P#an ) describes how ris% !anage!ent will be !tructure' 5 performe' on the everyone is involved in the !eeting basic plan for conducting the ri!/ mana ement project. acti"itie! develop ri!/ co!t e#ement for project budget develop !c*e'u#e acti"itie! for project schedule to assign ri!/ re!pon!i(i#itie!
Ri!/ 0'entification :
(inding which ris%s !ight affect the project 5 docu!enting their characteristics E"eryone is involve in this process 6 to identify !ore ris%s, the input of other !ta/e*o#'er! is needed. , It2s an iterati"e process, because new ris%s !ay beco!e %nown as the project progresses. Cannot (e comp#ete' unti# a Project ,cope ,tatement an' W-, *a"e (een create' and the project tea! %nows ;what is the project.; >eads to 9ua#itati"e 5 9uantitati"e Ri!/ Ana#y!i! he sponsor !ay supply a list of ris%s in the Pre#iminary Project ,cope ,tatement his process happen at the onset of the project 6 during the 0nitiatin 5 P#annin process , =hen a project has 'e"iate' !o far fro! the baseline the best thing to do is to update :is% Identification and analysis.
=hen a new ris% is identified, it should go through the Ri!/ Mana ement process. Mou first need to 'etermine t*e pro(a(i#ity an' impact of the ris% and then try to 'imini!* impact t*rou * Ri!/ Re!pon!e P#annin . &nly after these efforts should you a'' re!er"e!, and it is better to deter!ine reserves based on a detailed analysis of ris%. Type! of Ri!/ : -u!ine!! - nor!al ris%s that offer gain and loss Pure F 0n!ura(#e - only loss, i.e. property da!age, indirect consequential loss, legal liability, and personnel. (or ris% we can outsource, we have contract. (or pure ris%s, we obtain insurance. 0nformation Gat*erin Tec*nique! 5 -0RD, 6 : -rain!tormin : a general data gathering 5 creativity technique used to identify ri!/!, i'ea!, or !o#ution! to issues by using a group of tea!
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!e!bers or *ubject +atter A$pert 6 *+A F faci#itator ,. Its session is !tructure' so that each participant7s ideas are recorded for #ater ana#y!i!. :is%s are then i'entifie' 5 cate ori!e' by type of ris% and their definitions are !*arpene' 5 R-, used as fra!ewor% ,. 0nter"ie%in - this consists of the tea! or project !anager interviewing project participants, sta%eholders or e$perts to identify ris%s on the project or a specific ele!ent of wor% Root cau!e i'entification, an inquiry into the essential cause of ris% De#p*i tec*nique : a technique used to build con!en!u! of e$perts who participate anonymou!#y. 1 request for infor!ation is sent to the e$perts, their responses are co!piled, and the results are sent bac% to the! for further review until con!en!u! i! reac*e'. his helps re'uce (ia! in the data 5 %eeps any one person fro! having un'ue inf#uence on the outco!e. his technique is !ost co!!only used to obtain e$pert opinions on tec*nica# i!!ue!2 t*e nece!!ary project or pro'uct !cope2 or t*e ri!/!. ,tren t*2 %ea/ne!!2 opportunitie!2 8 t*reat! 5 ,WOT 6 ana#y!i!
C*ec/<#i!t! Ana#y!i! 0t1! t*e c*ec/<#i!t (a!e' on *i!torica# info 8 /no%#e' e2 an' t*e #o%e!t #e"e# of t*e R-, 'e!cri(e' in Ri!/ Mana ement P#annin . he chec%-list can pro"i'e a!!i!tance in en!urin that certain steps that need to be co!pleted are done a! p#anne'. Chec%-list should be re"ie%e' during the Project C#o!ure for further project. Ri!/ Dia rammin Tec*nique! 5 C,0 6 : Cau!e<8<effect 4 0!*i/a%a 4 fi!*(one diagra! ) useful for identifying cau!e! of ri!/!. ,y!tem 4 Proce!! F#o% c*art! ) shows how various ele!ents of a syste! interre#ate. 0nf#uence 'ia ram! ) showing causal influences, ti!e ordering of events Ri!/ Re i!ter hin% of it as one 'ocument for t*e %*o#e Ri!/ Mana ement process that will be constantly updated with infor!ation as :is% Identification and :is% +anage!ent processes are co!pleted. he :is% :egister beco!es part of the "roject +anage!ent "lan and is also included in historical records which will be used for future projects. 0t i! t*e on#y output of many of t*e Ri!/ Mana ement proce!!e!. :is% :egister is the place where !ost of the ris% infor!ation is %ept. his produces : >ist of identified ris%s >ist of potential responses, added to the Ri!/ Re i!ter as they are identified, and analysed later as part of Ri!/ Re!pon!e P#annin . :oot causes of ris% )p'ate' ri!/ cate orie!2 t*e R-, 'e"e#ope' in t*e Ri!/ Mana ement P#annin proce!! may *a"e to (e en*ance' or amen'e'2 (a!e' on t*e outcome! of t*e Ri!/ 0'entification proce!!. Ri!/ a!!e!!ment : from Ri!/ 0'entification to 9uantitati"e Ri!/ Ana#y!i! Strengths/ ea!nesses/ *--ortunities/ and $hreats )S *$+ Analysis : his infor!ation gathering technique e$a!ines the project fro! the perspective of each project2s strengths, wea%nesses, opportunities, and threats to increa!e t*e (rea't* of t*e ri!/! considered by ris% !anage!ent.
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AA(, i.e. published info, bench!ar%ing, etc &"1, i.e. info fro! previous project, lessons learned.
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Bocu!entation :eviews I what is and what is not included in the Pre#iminary Project ,cope ,tatement, the Project C*arter and later docu!ents can help identify ris%s J.
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Ri!/ Re i!ter
Project Scope Statement, i.e. project 1ssu!ption I 0nformation Gat*erin Tec*nique! uncertainty in project A!!umption i! a potentia# cau!e! of ri!/ J Chec%-lists 1nalysis is% Management Plan, i.e. assign!ent of Ro#e! 5 Re!pon!i(i#itie!2 as specified in :#*. Project Management Plan, i.e. *chedule, Cost, 5 9uality +anage!ent "lan 1ssu!ptions 1nalysis : A$plores the "a#i'ity of assu!ptions Identifies ris%s fro! inaccuracy, incon!i!tency, or incomp#etene!! of assu!ption Ri!/ Dia rammin Tec*nique!
9ua#itati"e Ri!/ Ana#y!i! :

+ethods for prioriti!in t*e i'entifie' ri!/! 6 to avoid cost , ti!e, and resources , for 9uantitative :is% 1nalysis 5 :is% :esponse "lanning by assessing 5 com(inin their pro(a(i#ity of occurrence 8 impact. he activities of this process are pro(a(i#ity an' impact 'efinition2 a!!umption! te!tin an' pro(a(i#ity an' impact matri+ 'e"e#opment. 9ualifying the ris% will give you an in'ication of how great the ris% is. hat infor!ation will help you deter!ine how to proceed. his process is a !u(jecti"e analysis of the ris%s i'entifie' in Ri!/ 0'entification: t*e pro(a(i#ity of eac* ri!/ occurrin 5e. .2 7o%2 Me'ium2 $i * or J to JH6 the impact 6a!ount at sta%e, or consequences, positive or negative, of each ris% occurring 6e.g., >ow, +ediu!, High or 1 to 1N, his process : usually a rapi' 8 co!t<effecti"e !eans of establishing priorities for Ri!/ Re!pon!e P#annin lays the foundation for 9uantitative :is% 1nalysis requires output of the :is% +anage!ent "lanning 5 :is% Identification the project2s ris% can be co!pared to the o"era## ris% of other projects the project !ay be !e#ecte', continue', or terminate' lea' into 9uantitati"e Ri!/ Ana#y!i! or Ri!/ Re!pon!e P#annin 2 'epen'in on t*e nee' of t*e project 8 t*e performin or ani3ation.
Ri!/ ratin usually specified in advance of the project, and included in &"1. can be tailored in the :is% +anage!ent "lanning Ri!/ Pro(a(i#ity 8 0mpact A!!e!!ment : investigates the #i/e#i*oo' 6 probability , that each specific ris% will occur
. investigates the potentia# effect 6 i!pact , on a project objective 6 ti!e, cost, scope, quality, threats, 5 opportunities , ris%s are a!!e!!e' in inter"ie%! F meetin ! A$pert Eudge!ent and (acilitator are require' t*e #e"e# of pro(a(i#ity for each ris% 5 its impact on each objective is evaluated during the interview or !eeting ris% probabilities 5 i!pacts are rate' accor'in to t*e 'efinition! given in the :is% +anage!ent "lan I low rating of probability 5 i!pact so!eti!es will not be rated, but will be included on a %atc*#i!t for future monitorin J.
Ri!/ Pro(a(i#ity 8 0mpact Matri+ : ris%s can be prioriti!e' based on their ri!/! ratin ratings are assigned based on their a!!e!!e' pro(a(i#ity 5 impact used to !ort or rate ris%s to deter!ine which ones warrant a ri!/ re!pon!e
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&"1, i.e. 'ata about ris%s on past projects 5 lessons learned %nowledge base. Project Scope Statement, to help e"a#uate t*e 'e ree in identified ris%s. is% Management Plan, i.e. ro#e! 5 re!pon!i(i#itie! for conducting ris% !anage!ent, budgets, 5 schedule activities for ris% !anage!ent, ris% categories, definition of probability 5 i!pact, the probability 5 i!pact !atri$, 5 revised sta%eholders2 ris% tolerance. is% egister, i.e. 7i!t of i'entifie' ri!/!
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Ri!/ Pro(a(i#ity 8 0mpact A!!e!!ment 8 Matri+ :is% Bata 9uality 1ssess!ent : e$tent of the understanding of the ris% data available about the ris% quality of the data reliability 5 integrity of the data :is% Categori0ation, by : source of ris%, by using :#* area of the project affected, using =#* I grouping ris%s by common root cau!e! can lead to developing effective ris% response J. Ri!/ )r ency A!!e!!ment - urgent ris%s !ay then !ove, independently, right into Ri!/ Re!pon!e P#annin , or they !ay be si!ply the first ones for which you plan a response.
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:is% :egister 6 Dpdate , includes : :elative ran%ing or priority list of project ris%s :is%s categori0ation >ist of ris%s requiring ur ent response >ist of ris%s for a''itiona# analysis 5 response =atch lists of #o% priority ris%s 6 to be 'ocumente' for later revisit during Ri!/ Monitorin 5 Contro# , rends in 9ualitative :is% 1nalysis results
9uantitati"e Ri!/ Ana#y!i! :

1 numerica# analysis of the "robability 5 I!pact 6 amount at !ta/e or con!equence! , of the *i *e!t ri!/! 6 that have been prioriti!e' , on the project fro! 9ua#itati"e Ri!/ Ana#y!i!, to: Beter!ine which ris% events need re!pon!e! 2 deter!ine o"era## project ris% 6 ri!/ e+po!ure ,, 5 deter!ine cost 5 schedule reserves Beter!ine the quantifie' probability of !eeting project objectives, i.e. : o =e have TN[ chance to co!plete within the L !onths required o =e have RH[ chance to co!plete within the X1NN budget. Identify ris%s requiring the mo!t attention Create rea#i!tic 5 ac*ie"a(#e cost, schedule, or scope targets. 9uantitative :is% 1nalysis is not require' for all projects and may (e !/ippe' in favour of !oving on to :is% :esponse "lanning. "roceed with 9uantitative :is% 1nalysis only if it i! %ort* the ti!e and !oney on your project. his process should be repeate' after Ri!/ Re!pon!e P#annin , as well as part of Ri!/ Monitorin 8 Contro#2 to deter!ine if the overall project ris% has been satisfactorily 'ecrea!e'. Tren'! can indicate the need for !ore or less ris% !anage!ent action. It is an input to the :is% :esponse "lanning process. 9uantitative :is% 1nalysis includes: further investigation into the *i *e!t ri!/! on the project deter!ination of the type of probability distribution that will be used, e.g., triangular, nor!al, beta, unifor! or log nor!al distributions ,en!iti"ity Ana#y!i! - deter!ining which ris%s have the mo!t impact on the project deter!ining how !uch quantified ris% the project has through A$pected +onetary Calue or +onte Carlo analysis. 9uantitative probability 5 i!pact can be deter!ined : Interview Cost 5 ti!e esti!ating Belphi technique, use of historical records, 5 A$pert Eudge!ent A+C 6 A$pected +onetary Calue , analysis, used in quantifyin the o"era## ris% on the project +onte Carlo analysis : o E"a#uate! the o"era## project ris% o "rovide the pro(a(i#ity of co!pleting the project at any 'ay at any co!t o "rovide the pro(a(i#ity of any activity actually being on the Critica# Pat* o a%es into account path convergence o ranslate uncertaintie! into i!pact to the total project o Can be used to assess Co!t 8 ,c*e'u#e impact! o :esults in pro(a(i#ity 'i!tri(ution Data Gat*erin 8 Repre!entation Tec*nique! 5 P0E 6 : Pro(a(i#ity Di!tri(ution, i.e. triangular, nor!al, beta, unifor!, or log nor!al distributions - Continuous probability distribution represent the uncertainty in values. 0nter"ie% 5 further investigation - Dsed to quantify t*e pro(a(i#ity an' impact of ris%s. he infor!ation needed would be gathered on the Optimi!tic 6 low ,, Pe!!imi!tic 6 high ,, and Mo!t<#i/e#y scenario I t*ree<point e!timate! J. Bocu!enting the rationale of the ris% range is an i!portant, because it can provide infor!ation on re#ia(i#ity8 cre'i(i#ity of the analysis. E+pert Ju' ement, i.e. !tati!tica# e+pert!. 9uantitati"e Ri!/ Ana#y!i! 8 Mo'e##in Tec*nique 5 MED, 6 : +odelling 5 *i!ulation, i.e. Monte Car#o2 to : o 9uantify t*e po!!i(#e outcome!
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o A!!e! t*e pro(a(i#ity of ac*ie"in !pecific project o(jecti"e! o Identify rea#i!tic 5 ac*ie"a(#e Cost, *chedule, or *cope targets, given the project ris%s o Determine t*e (e!t project mana ement 'eci!ion %*en !ome con'ition! or outcome! are uncertain A$pected +onetary Calue 6 EM; , 1nalysis - a statistical concept that calculates the average outco!e 6 I pro(a(i#ity M impact J , Deci!ion Tree Ana#y!i! : o Dsed to !a%e decisions regarding individual ris% when there is uncertainty o Dsed to help !a%e !ore infor!ed decisions by ta%ing into account the ris%s, probability 5 i!pact o Ta/e! into account future e"ent! in tryin to ma/e a 'eci!ion to'ay o Calculates the A+C in !ore co!ple$ situation o Involves !utual e$clusivity o 0! a mo'e# of a rea# !ituation o u!e' to ma/e a 'eci!ion (et%een a#ternati"e capita# !trate ie!2 !uc* a! (ui#' or up ra'e. ,en!iti"ity Ana#y!i!, helps to deter!ine which ris%s have the mo!t potentia# impact 6 i.e. Torna'o 'ia ram, which is useful for co!paring relative i!portance of variables that have a high degree of uncertainty to those that are !ore stable. ,
(or a Co!t Ri!/ Ana#y!i!, a si!ulation can use =#* or Co!t -rea/'o%n ,tructure as its !odel. (or a ,c*e'u#e Ri!/ Ana#y!i!, the "recedence Biagra!!ing +odel 6 PDM , schedule is used. ".-ected Monetary 0alue )"M0+ Analysis : 1 statistical technique that calculates the average outco!e when the future includes scenarios that may or may not *appen. 1 co!!on use of this technique is within 'eci!ion tree ana#y!i!. +odelling and si!ulation are reco!!ended for co!t and !c*e'u#e ri!/ ana#y!i! because it is !ore powerful and less subject to !isapplication than e$pected !onetary value analysis.
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&"1 Project Scope Statement
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Data Gat*erin 8 Repre!entation Tec*nique! 5 P0E 6.
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:is% :egister 6 Dpdate , includes : Prioriti!e' #i!t of quantifie' ri!/! ) those that pose the greatest threat or present the greatest opportunity to the project. Amount of contin ency time 5 co!t re!er"e! nee'e', i.e. this project requires an additional ti!e and cost to acco!!odate the project ris%s "ossible realistic 5 achievable co!pletion dates 5 costs with confidence levels vs. the cost 5 ti!e objectives for the project, i.e. =e2re UH[ confident that we can co!plete this project on \ he quantifie' pro(a(i#ity of !eeting project objectives Tren'! in 9ua#itati"e Ri!/ Ana#y!i! re!u#t!
9uantitati"e Ri!/ Ana# 8 is% Management Plan, which include ro#e! 5 Mo'e##in Tec*nique 5 MED, 6 re!pon!i(i#itie! for conducting :is% +anage!ent, budget, and *chedule 1ctivities for :is% +anage!ent, ris% categories, the :#*, and revised sta%eholder ris% tolerances is% egister, which include the 7i!t of 0'entifie' Ri!/!, the relative ran%ing or priority list of project ris%, and the ris%s grouped by categories. "roject +anage!ent "lan, which are : Project ,c*e'u#e Mana ement P#an ) establishes criteria for developing 5 controlling the project schedule. Project Co!t Mana ement P#an- establishes criteria for planning, structuring, esti!ating, budgeting, 5 controlling project costs.
Ri!/ Re!pon!e P#annin :

to develop options 5 actions to en*ance opportunitie!, 5 to re'uce t*reat! to project objectives. to fo##o% 9ua#itati"e 8 9uantitati"e Ri!/ Ana#y!i! processes. includes the i'entification 5 a!!i nment of one or !ore person I ri!/ re!pon!e o%ner J to ta%e re!pon!i(i#ity addresses the ris%s by their priority, inserting re!ource! 5 acti"itie! into the budget, schedule, 5 "roject +anage!ent "lan. non<critica# ri!/ !*ou#' (e 'ocumente' in a %atc* #i!t an' re"i!it perio'ica##y
:esponses !ay include doing so!ething to : Ali!inate the threats (efore they happen Decrea!e the probability 5 i!pact of t*reat!, 5 increa!e the probability 5 i!pact of opportunitie! In preparing the :is% :esponse "lan, the !pon!or !ay have the #ea!t /no%#e' e of what will wor% to solve the proble!s. *ponsors need to be involved in the project and *e#p i'entify ri!/!. hey may e"en appro"e the response plans created by others, but they %ou#' not enera##y (e major contri(utor! to response plans. *o!e strategies involve c*an in the planned approach to co!pleting the project, e.g., changes to the =#*, 9uality +anage!ent "lan, :esources, Co!!unications, schedule or budget. &ther strategies 6 called Contin ency Re!pon!e! , involve si!ply co!ing up with a plan to be i!ple!ented when and if the ris% occurs. (or the re!aining 6 re!i'ua# , ris%s, do so!ething I( : :is% happens : Contin ency P#an! Contingency "lans not effective : Fa##(ac/ P#an *everal ris% response strategies are available. he !trate y or mi+ of !trate ie! !ost li%ely to be effective should be selected for eac* ri!/. :is% analysis tools, such as Deci!ion Tree Ana#y!i!, can be used to choose the mo!t appropriate re!pon!e!. hen, specific actions are developed to i!ple!ent that strategy. Primary and (ac/up !trate ie! !ay be selected. 1 fa##(ac/ p#an can be developed for i!ple!entation if the selected strategy turns out not to be fully effective, or if an accepted ris% occurs. &ften, a Contin ency Re!er"e is allocated for ti!e or cost. (inally, Contin ency P#an! can be developed, along with identification of the conditions that trigger their e$ecution. Re!pon!e! !trate ie! for t*reat! N ATMA O : A"oi'ance 6eli!inationFabate!ent, - e#iminatin cau!e e#iminate! ri!/ by c*an in the "roject "lan or protecting project objectives fro! its i!pact. :is%s that arise ear#y in the project can be avoided by c#arifyin requirement!2 o(tainin information2 impro"in communication2 or acquirin e+perti!e. Tran!fer < 'ef#ect or !*are 2 not e#iminate 5 e.g. 0n!urance2 %arrantie! 6. Contracts !ay be used to transfer liability for a specified ris%. Dse of Co!t<Type contract !ay transfer the cost ris% to the (uyer, while a Fi+e'<Price' contract !ay transfer ris% to the !e##er.
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Miti ation 6reduction, - reduce the E+pecte' Monetary ;a#ue 5 EM; 6, reduce the pro(a(i#ity an'4or impact of an adverse ris% event to an acceptable threshold. a%ing ear#y action to reduce the probability andFor i!pact of a ris% occurring on the project is often !ore effective than trying to repair the da!age after the ris% has occurred. . F#oat can be use to !itigate potential ris%s. Re"i!in the project7s scope, budget, schedule or quality, preferably without !aterial i!pact on the project7s objectives, in order to reduce uncertainty on the project. :is% !itigation is done to atte!pt to minimi3e t*e (a' ri!/ or ma+imi3e t*e oo' ri!/. In this case, !anage!ent is atte!pting to !ini!i0e the i!pact of a labour stri%e. +itigation actions, such as a'optin #e!! comp#e+ proce!!e!2 con'uctin more te!t!2 or c*oo!in a more !ta(#e !upp#ier, are more effecti"e than trying to repair the da!age after the ris% has occurred. +itigation !ay require prototypin . @ou cou#' not miti ate t*e ri!/ unti# you qua#ifie' t*e ri!/. =here it is not possible to reduce probability, a !itigation response !ight address the ris% i!pact by targeting lin%ages that deter!ine the severity. (or e$a!ple, 'e!i nin re'un'ancy into a !u(!y!tem !ay reduce the i!pact fro! a failure of the original co!ponent. Acceptance - accept or retain consequences. - types: Acti"e Acceptance 6develop a Contin ency P#an, or Pa!!i"e Acceptance 6no action,.
Re!pon!e! !trate ie! for opportunitie! N ,EE O : ,*are < sharing a positive ris% involves a##ocatin o%ner!*ip to a .rd party who is best able to capture opportunity for the benefit of the project. (or e$a!ple partner!*ip!, tea!s, special-purpose co!panies, or joint "enture!, which can be established with the e$press purpose of !anaging opportunities En*ance 5 oppo!ite of Miti ation 6 < !odifies the 3si0e4 of an opportunity by increa!in pro(a(i#ity an'4or po!iti"e impact!, and by identifying and ma+imi3in %ey drivers of these positive-i!pact ris%s, see%ing to facilitate or !tren t*en t*e cau!e of t*e opportunity, and pro actively targeting 5 reinforcing its trigger conditions, !ay increase probability. E+p#oit 5 oppo!ite of A"oi'ance 6 < directly e$ploiting responses include a!!i nin more ta#ente' re!ource! to reduce the ti!e to co!pletion, or to provide (etter qua#ity than originally planned. Re!pon!e! !trate ie! for (ot* : Acceptance : not to c*an e t*e Project Mana ement P#an to deal with a ris%, or is una(#e to i'entify any other suitable response strategy : o Pa!!i"e Acceptance - requires no action, leaving the project tea! to deal with the threats or opportunities. o Acti"e Acceptance - establishes a Contin ency P#an 6 the allocation of ti!e, cost, 5 resources , to handle. 1 decision to accept a ris% !ust be co!!unicated (ac/ to sta%eholders. A re!er"e fun' i! acceptance2 !o it %ou#' not re'uce t*e pro(a(i#ity or impact of ri!/!. :esponse planning 5 :is% +itigation so!eti!es called ;Re!pon!e 'e"e#opment;. W*et*er re!pon'in to t*reat! or opportunitie! : *trategies !ust be ti!ely he effort selected !ust be appropriate to the severity of the ris% &ne response can be used to address !ore than one ris% +ore than one response can be used to address the sa!e ris% 1 response can address a root cause of ris% Involve the tea!, sta%eholders, 5 e$pert in selecting a strategy Contin ency P#annin he develop!ent of !anage!ent plans to be invo%ed in the event of specified ris% events. A$a!ples include the provision and prudent !anage!ent of a Contingency 1llowance in the budget, the preparation of alternative schedule activity sequences, wor%arounds and e!ergency responses to re'uce the i!pacts of particular ris% events, and the evaluation of liabilities in the event of co!plete project shut down. Dpdates to :is% :egister : Re!i'ua# Ri!/! - ris%s which remain AFTER Ri!/ Re!pon!e P#annin , and those that have been accepte' for which Contin ency P#an! and Fa##(ac/ P#an! can be created. :esidual ris%s should be properly 'ocumente' and re"ie%e' throughout the project to see if their ran%ing has changed. Ri!/ Re!pon!e O%ner - a %ey concept in :is% :esponse "lanning is that the project !anager does not have to do it all and neither does the tea!. Aach ris% !ust be a!!i ne' to !omeone who !ay help develop the ris% response and who will be assigned to carry out the ris% response or ;own; the ris%. he ris% response owner can be a !ta/e*o#'er rather than a tea! !e!ber. ,econ'ary Ri!/! ) ne% ri!/! that arises as a direct result of i!ple!enting a Ri!/ Re!pon!e. (requently, %*at i! 'one to re!pon' to one ri!/ %i## cau!e ot*er ri!/! to occur. (or e$a!ple, a ris% of fire can be allocated to an insurance co!pany, potentially causing the ris% of cash flow proble!s. Cash flow should then be analysed and if appropriate, added to the :is% +anage!ent process. Ri!/ Tri er! - events that trigger the contingency response. 1 project !anager should identify the early warning signs 6indirect !anifestations of actual ris% events, for each ris% on a project so that they will %now when to ta%e action. Contract! - a project !anager !ust be involved -EFORE a contract is !i ne'. -efore t*e contract i! fina#i3e'2 the project !anager will have comp#ete' a ris% analysis and included contract ter!s and conditions required to !itigate or allocate threats and to enhance opportunities. Contin ency P#an! - plans describing the specific actions that will be ta%en if the opportunity or threat occurs. Fa##(ac/ P#an! - specific actions that will be ta%en if the Contingency "lan is NOT effective. hin% how prepared you will feel if you have plans for what to do if a ris% occurs and what to do if that original plan does not wor%. Contin ency Re!er"e! (irst, reali0e that having reserves for schedule and cost is a require' part of project !anage!ent. Mou cannot co!e up with a schedule or budget for the project without the!. :eserves are covered in the Cost chapter. here can be two %inds of reserves for ti!e and cost : Contin ency Re!er"e! an' Mana ement Re!er"e!. Contin ency Re!er"e! account for ;/no%n un/no%n!@; ite!s you identified in Ri!/ Mana ement. hey cover the re!i'ua# ri!/! in the project. Mana ement Re!er"e! account for ;un/no%n un/no%n!,; ite!s you 'i' not or cou#' not i'entify in :is% +anage!ent. "rojects can have both %inds. he Contingency :eserve is calculated and is !ade part of the Co!t -a!e#ine. +anage!ent :eserves are esti!ated 6e.g., H percent of the project cost, and are !ade a part of the project (u' et, not the baseline. herefore, mana ement appro"a# is nee'e' to !a%e use of +anage!ent :eserves.
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is% Management Plan, i.e. ro#e! 5 re!pon!i(i#itie!, ris% analysis definition, ri!/ t*re!*o#'! 6 for low, !oderate, 5 high ris%s ,, and ti!e 5 budget required to conduct "roject :is% +anage!ent
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,trate ie! for Ne ati"e Ri!/! 8 T*reat! : I ATMA J
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:is% :egister 6 Dpdate ,, see above.
"roject +anage!ent "lan 6 Dpdate ,, i.e. %or/ ,trate ie! for Po!iti"e Ri!/! 8 Opportunitie! pac/a e cou#' (e a''e'2 remo"e'2 or : I ,EE J a!!i ne' to 'ifferent re!ource!. :is%-:elated Contractual 1gree!ents, such as a reement! for in!urance 8 !er"ice!.
is% egister, include relative rating or priority list of ,trate ie! for -ot* T*reat! 8 Opportunitie! project ris%, a list of ris%s requirin re!pon!e in near term, a list of ris%s for a''itiona# analysis 5 Contingent :esponse *trategy response, tren'! in 9ualitative :is% 1nalysis results,
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root causes, ris%s categories, 5 %atc* #i!t of #o% priority ri!/!.
P#an Purc*a!e! 8 Acqui!ition! :

Involves consideration of %*et*er2 *o%2 %*at2 *o% muc*2 8 %*en to acquireFpurchase. Consideration to who is re!pon!i(#e for obtaining or holding relevant permit! 5 #icence! that !ay be required by legislation, regulation, or organisational policy in e$ecuting project. Re"ie%in the ris%s in Ma/e<or<-uy Deci!ion!. Re"ie%in the type of contract planned to be used with respect to miti atin 5 tran!ferrin ris%s to the seller. 0nf#uence' (y t*e project !c*e'u#e.
he decisions !ade in developing the Procurement Mana ement P#an can influence the project schedule and are integrated with ,c*e'u#e De"e#opment2 Acti"ity Re!ource E!timatin 2 an' Ma/e<or<-uy Deci!ion!. Requirement!, described by Project ,cope ,tatement! , with contractual 5 legal i!plications can include *ea#t*2 !afety2 !ecurity2 performance, en"ironmenta#2 in!urance2 inte##ectua# property ri *t!2 equa# emp#oyment opportunity2 #icence!2 an' permit!. Project ,cope ,tatement! : describes the project (oun'arie!, requirement!, Con!traint! 5 A!!umption! related to the project scope. Constraints !ay include a"ai#a(i#ity of fun'!, required delivery date, available s%illed resources, and organi0ational policies. provides a list of 'e#i"era(#e! 5 acceptance criteria for the project 5 its products, services, 5 results. provides info about any tec*nica# i!!ue! or concerns related to the products, services, 5 results of the project. Ma/e<or<-uy Ana#y!i! he cost savings to purchase !ay be out%ei *e' by the cost of !anaging the procure!ent. &ne of the !ain reasons to buy is to 'ecrea!e ris% to any co!ponent of the ;triple constraint.; It is (etter to ;!a%e; if: you have an i'#e plant or wor%force you want to retain contro# the wor% involves proprietary information or procedures Contract Type he goal of Contract ype *election is to have reasonable 'i!tri(ution of ri!/ between the buyer and seller and the greatest incenti"e for the seller7s efficient and econo!ical perfor!ance. he following factors !ay inf#uence the type of contract selected : how %e##<'efine' the Contract *tate!ent &f =or% is or can be the a!ount or frequency of c*an e! e$pected after project start the level of effort and e$pertise the buyer can devote to !anaging the seller in'u!try !tan'ar'! of the type of contract used a!ount of mar/et competition 5 a!ount of ri!/ he type of contracts : J. Co!t Reim(ur!a(#e 5 CR 6 the seller7s costs are rei!bursed, plus an additional a!ount 6 !e##er profit ,. T*e (uyer has the mo!t co!t ri!/ (ecau!e t*e tota# co!t! are un/no%n. 5 if t*e co!t! increa!e2 t*e (uyer pay! t*e a''e' co!t! 6. the buyer can only describe what is nee'e', rather than %*at to 'o 6e.g., when the co!plete Contract *tate!ent &f =or% or require!ents is un/no%n, as in situations of buying unique %nowledge,. he seller will therefore write the 'etai#e' Contract *tate!ent &f =or%. Costs are usually classified as direct costs or indirect costs. Direct co!t! are costs incurred for the e+c#u!i"e (enefit of the project, such as !a#arie! of full-ti!e project staff. Indirect costs, also called overhead and general and ad!inistrative cost, are co!t! a##ocate' to t*e project (y t*e performin or ani3ation as a cost of doing business, such as salaries of !anage!ent indirectly involved in the project, and cost of electric utilities for the office. Indirect costs are usually calculated as a percentage of direct costs. Cost-:ei!bursable contracts often include incenti"e c#au!e! where, if the seller !eets or e$ceeds selected project objectives, such as schedule targets or total cost, then the seller receives fro! the buyer an incenti"e or (onu! payment. :esearch 5 Bevelop!ent or infor!ation technology projects where the scope is un%nown are typical e$a!ples of Cost :ei!bursable contracts. Contract ,tatement Of Wor/ : describes only the performance or requirement! because we are buying the e+perti!e of 3*o% to 'o t*e %or/4, not 3what to do4 or 3when to do4 J.J Co!t P#u! Fee 5 CPF 6 or Co!t P#u! Percenta e of Co!t! 5 CPPC 6 he buyer pay for a## co!t! plus a percent of costs as a fee. *ellers are not !otivated to control costs because the seller will get paid profit on every cost without li!it. From !e##er1! per!pecti"e!2 t*i! i! t*e (e!t contract. (ro! the buyer7s perspective, this is the *i *e!t ri!/.. A$a!ple : Contract P Cost plus 1N[ of costs as fee. J.K Co!t P#u! Fi+e' Fee 5 CPFF 6 he buyer pay! a## co!t!, but the fee 6or profit, is fi+e' at a specific dollar a!ount. his helps to %eep the seller7s costs in line because a cost overrun will not generate any additional fee or profit. Fee! on#y c*an e %it* appro"e' c*an e or'er!. he seller could be charging the buyer for costs that should not be allocated to the buyer. #ecause of the si0e and dollar a!ount of these type of contracts and because the ri!/ to t*e (uyer i! reat, C"(( contracts need the mo!t au'itin . his fi$ed fee does not vary with the actual cost, un#e!! t*e project !cope c*an e!. A$a!ple : Contract P Cost plus a fee of X1NN,NNN. J.F Co!t P#u! 0ncenti"e Fee 5 CP0F 6 he buyer pay! a## co!t! and an agreed upon fee, plus an incenti"e 6 (onu! , for beating the perfor!ance objectives !tate' in t*e contract. 1n incentive helps bring t*e !e##er1! o(jecti"e! in #ine %it* t*o!e of t*e (uyer. =ith an incentive, both buyer and seller wor% toward the sa!e objective, such as comp#etin t*e project on time. J.P Co!t P#u! A%ar' Fee 5 CPAF 6 he buyer pay! a## co!t! and an apportion!ent of a bonus based on perfor!ance. his is very si!ilar to the CP0F contract e$cept the award a!ount is 'etermine' in a'"ance and apportione' out depending on perfor!ance. (or e$a!ple, the buyer !ight say that there is a XHo,ooo award fee available. It will be apportioned out at the rate of XH,NNN for every !onth production on the project is over a certain a!ount.
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Advantage ,imp#er Contract *tate!ent &f =or% :equires less wor% to write the scope than (i$ed "rice 'enerally #o%er co!t than (i$ed "rice because the seller does not have to add as !uch for ris% Disadvantage :equires au'itin !e##er1! in"oice! :equires !ore wor% for the buyer to !anage *eller has only a !oderate incentive to control costs Tota# price i! un/no%n
K. Time an' Materia# 5 T8M 6 or )nit Price contract is priced on a per *our or per item basis a hybrid between Cost-:ei!bursable 6 tota# co!t i! un/no%n , 5 (i$ed-"rice6 fi$ed price per hour , type contractual arrange!ents does not have a great ris%, so #e!! au'itin rese!ble Cost-:ei!bursable type arrange!ents in that they have no 'efiniti"e en', because the full value of the arrange!ent is not defined at the ti!e of the award 6 tota# co!t i! un/no%n , rese!ble (i$ed-"rice arrange!ents. (or e$a!ple, the unit rates are preset by the buyer and seller, when both parties agree on the rates for the category of senior engineers. Contract ,tatement Of Wor/ : can be any of the choices 6 perfor!ance, functional, or design ,, but it will be (rief, describing #imite' perfor!ance, functional, or design require!ents. A$a!ple : Contract P X1NN per hour plus e$penses or !aterials at cost or XH per linear !eter of wood. Advantage 9uic/ to create Contract duration is (rief 'ood choice when you are hiring ;bodies; or people to aug!ent your staff Disadvantage "rofit is in every hour billed *eller has no incentive to control costs 1ppropriate only for !ma## project! :equires the !ost day to day oversight fro! the buyer
F. Fi+e' Price 5 FP2 or 7ump ,um2 Firm Fi+e' Price2 or Purc*a!e Or'er 6 one price is agreed upon for a## t*e %or/ or for a %e##<'efine' product !ay include incenti"e! for meetin or e+cee'in selected project objectives, such as !c*e'u#e tar et!. t*e (uyer *a! t*e #ea!t co!t ri!/ 5 #e!! au'itin &&& 6 , provided the buyer has a comp#ete#y 'efine' !cope, /no% %*at t*ey nee', because the ris% of higher costs is borne by the !e##er. t*e !e##er i! mo!t concerne' %it* t*e Contract ,tatement Of Wor/. high ris% for the !e##er in a Fi+e' Price. 6 if t*e co!t! increa!e2 t*e !e##er pay! t*e co!t! an' ma/e! #e!! profit ,. !ost appropriate when the buyer can co!pletely describe the Contract *tate!ent &f =or%. Contract ,tatement Of Wor/ : !ust be e$traordinary co!plete because we are buying 3'o it4, not 3how to do it4. In order for the seller to fi$ the price, they nee' to /no%2 in a'"ance2 A77 t*e %or/ t*ey are require' to 'o. A$a!ple : Contract P X1,1NN,NNN. Advantage >ess wor% for buyer to !anage *eller has a strong incentive to control costs Co!panies have e$perience with this type #uyer %nows the total price at project start Disadvantage *eller !ay underprice the wor% and try to !a%e up profits on change orders *eller !ay not comp#ete so!e of the contract *tate!ent &f =or% if they begin to #o!e money +ore wor% for buyer to write the contract *tate!ent &f =or% Can be !ore e+pen!i"e than C: if the contract *tate!ent &f =or% is incomp#ete he seller will need to add to the price for their increased ris%
Contract ,tatement Of Wor/ he *&= for each contract is developed fro! the Project ,cope ,tatement, W-,, 5 W-, Dictionary. he contract *&= can be re"i!e' 5 refine' as required as it !oves through the Procurement process unti# incorporated into a !i ne' contract. ype of contract *&= : Performance - conveys what the fina# pro'uct should be able to acco!plish, rather than how it should be built or what its design characteristics should be 6e.g., ;I want a car that will go 0ero to 1-N %ilo!eters per hour in /.- seconds.;, Functiona# - conveys the en' purpo!e or re!u#t, rather than specific procedures, etc. It is to be used in the perfor!ance of the wor% and !ay also include a state!ent of the !ini!u! essential characteristics of the product 6e.g., ;I want a car with -. cup holders.; , De!i n - conveys preci!e#y %*at %or/ i! to (e 'one 6e.g., ;#uild it e$actly as shown on these drawings.;, It describes : %*at %or/ i! to (e comp#ete' un'er t*e contract. It !ust be as clear, co!plete, and concise as possible, and describe A77 t*e %or/ 8 acti"itie! the seller is required to co!plete. the 'etai# of procurement item, to allow prospective sellers to deter!ine if they7re capable of providing the!. pro'uct!2 !er"ice!2 or re!u#t! to (e !upp#ie' by the seller specification, quantity desired, quality levels, perfor!ance data, period of perfor!ance, wor% location. Performance Reportin or post-project operational support for the procured ite! Performance and Functiona# contract *tate!ents &f =or% are co!!only used for information !y!tem!2 information tec*no#o y2 *i *<tec*2 R8D, and projects that have NE;ER been done before. Besign is !ost co!!only used in con!truction, equipment purc*a!in and other types of projects. Co!ponents of a contract *tate!ent &f =or% can include drawings, specifications, technical and descriptive wording, etc. 8o !atter what it contains, you should reali0e that the contract *tate!ent &f =or% beco!es part of the contract. Point of Tota# A!!umption he point of total assu!ption 6" 1, is a price deter!ined by a Fi+e' Price p#u! 0ncenti"e Fee contract 6 FP0F , above which the !e##er (ear! a## t*e #o!! of a co!t o"errun 5 t*e !e##er a!!ume! t*e co!t! 6 . It is also %nown as the ;mo!t pe!!imi!tic co!t; because it represents the *i *e!t point (eyon' %*ic* co!t! are not e+pecte' to ri!e, given reasonable issues. If costs go beyond the " 1, they are assu!ed to be due to mi!<mana ement rather than a worst-case set of difficulties. he seller bears all of the cost ris% at " 1 and beyond. In addition, once the costs on an ("I( contract reach " 1, the !a$i!u! a!ount the buyer will pay is t*e cei#in price. 1ny ("I( contract specifies a target cost, a target profit, a target price, a ceiling price, and one or !ore share ratios. he " 1 is the difference between the ceiling and target prices, divided by the buyer7s portion of the share ratio for that price range, plus the target cost. " 1 P 66Ceiling "rice - arget "rice,Fbuyer7s *hare :atio, Q arget Cost (or e$a!ple, assu!e: arget Cost: -,NNN,NNN arget "rofit: -NN,NNN arget "rice: -,-NN,NNN Ceiling "rice: -,/HN,NNN *hare :atio: TN[ buyer)-N[ seller for overruns, HN[)HN[ for underruns
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" 1 P 66-,/HN,NNN - -,-NN,NNN,F N.TN, Q -,NNN,NNN P -,.1-,HNN
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AA1 I conditions of the mar/etp#ace 5 what products -services are available in the !ar%etplace, fro! who! and under what ter!s 5 conditions J. &"1 ) 6in,for!al procure!ent-related policies, procedures, guidelines, mu#ti<tier !upp#ier !y!tem of !e#ecte' 8 pre< qua#ifie' !e##er!. Project Scope Statements WBS & WBS Dictionary Project Management Plan, such as : :is% :egister 6 the identified ris%s, ris% owners, 5 ris% responses , :is%-related contractual agree!ents 6 a reement! for in!urance, services , Acti"ity Re!ource require!ents "roject schedule Acti"ity Co!t esti!ates Cost baseline
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Ma/e<or<-uy Ana#y!i! A$pert Eudge!ent Contract Type!
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Procurement Mana ement P#an ) describes how the procure!ent processes will be planned, !anaged, 5 e$ecuted fro! developing procure!ent docu!entation through Contract C#o!ure. It can includes : type! of contract to (e u!e' who will prepare independent esti!ates 5 if they7re needed as Avaluation Criteria i'entifyin pre<qua#ifie' ,e#ecte' ,e##er!, if any, to be used Contract ,OW Ma/e<or<-uy Deci!ion!, the docu!ented decisions of what project products, services, or results will be acquire' or will be 'e"e#ope' by the project tea!. :equested Changes
P#an Contractin :
Bocu!enting products, services, 5 results require!ents and i'entifyin potentia# !e##er!. "repare the docu!ents needed to support the Reque!t ,e##er Re!pon!e! and ,e#ect ,e##er! processes.
Procurement Document 5 -i' Document 6 he docu!ents put together by the buyer to tell the seller its needs, to see% proposals fro! prospective sellers. +ay ta%e one of the following for! : Reque!t for Propo!a# 6:(", so!eti!es called :equest for ender, - requests a price, but also a detailed propo!a# on *o% t*e %or/ %i## (e accomp#i!*e'2 %*o %i## 'o it2 re!ume!2 company e+perience2 etc. 0n"itation for -i' 6I(#, or :equest for #id, :(#, - requests one price to do a## t*e %or/ Reque!t for 9uotation 6:(9, - requests a price quote per ite!, hour or foot "rocure!ent Bocu!ents !ay include the following: Infor!ation for sellers : o #ac%ground infor!ation o "rocedures for replying or guidelines for preparation of the response o (or! of response required o E"a#uation Criteria o "ricing for!s Contract ,tatement Of Wor/ "roposed term! an' con'ition! of the contract 6legal and business, ri orou! enough to ensure con!i!tent,compara(#e responses, but f#e+i(#e enough to allow con!i'eration of seller suggestions for better ways to satisfy the require!ents. he ter!s and conditions of the contract are also %or/ t*at nee'! to (e 'one and have costs associated with the! 6%arrantie!, o%ner!*ip, etc.,. he seller !ust be aware of all the wor% that needs to be co!pleted to adequately understand and price the project. We##<'e!i ne' "rocure!ent Bocu!ents can have the following effects on the project: Ea!ier compari!on of sellers7 responses +ore comp#ete re!pon!e! and accurate pricin Becrease in the nu!ber of changes to the project he sellers cou#' ma/e !u e!tion! for changes to the "rocure!ent Bocu!ents, including the Contract ,OW and the Project Mana ement P#an.
Non<Di!c#o!ure A reement his is an agree!ent between the buyer and any prospective sellers stating %*at information or 'ocument! t*ey %i## *o#' confi'entia# an' contro#, and %*o in t*eir or ani3ation %i## ain acce!! to t*e confi'entia# information. =ith a non-disclosure agree!ent in place, the buyer can tal% !ore openly about its needs without fear that one of the buyer7s co!petitors will gain access to the infor!ation shared. ,tan'ar' Contract Co!panies frequently have standard, preaut*ori!e' contract! for the purc*a!e of oo'! or !er"ice!. hese types of standard contracts need no further legal review if used as they are. If signed without changes, they are legally sufficient. ,pecia# Pro"i!ion! 5,pecia# Con'ition!6 he project !anager !eets with the contract !anager to discuss the needs of the project and deter!ine the final contract ter!s and conditions. hese a''ition!, c*an e! or remo"a#! are so!eti!es called special provisions and are a result of: :is% analysis he require!ents of the project he type of project 1d!inistrative, legal or business require!ents Non<Competiti"e Form! of Procurement =hen would you award wor% to a co!pany %it*out competition? he following is a !ore co!plete list : he project is under e+treme !c*e'u#e pre!!ure. 1 seller has unique qua#ification!.
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here is only one !e##er. 1 seller *o#'! a patent for the ite! you need. &ther !echanis!s e$ist to ensure that the seller7s price! are rea!ona(#e.
Mou should be fa!iliar with the following for!s of non-co!petitive procure!ents: ,in #e ,ource - contract directly with your preferred seller W0T$O)T going through the procure!ent process. his !ight be a co!pany that you have wor%ed with before and, for various reasons, you do not want to loo% for another. ,o#e ,ource - there is ON7@ one !e##er. his !ight be a co!pany that o%n! a patent. opics !ust be addressed in creating a contract for non-co!petitive procure!ent that would not need as !uch attention in a co!petitive environ!ent : For ,in #e ,ource<Preferre' ,upp#ier *cope - +ore wor% will be needed to docu!ent all the ite!s received free in the past to !a%e sure you get the! now. &nly what is in the contract will be received. *cope - here could be a tendency for the perfor!ing organi0ation to say, ; he seller %nows us and we %now the!, we do not have to spend so !uch ti!e deter!ining our require!ents and co!pleting a contract state!ent of wor%. hey %now what we want.; 9uality he seller !ay never be as%ed to prove they have the e$perience, cash flow and !anpower to co!plete the new wor%. Cost i!e will need to be spent to co!pare previous costs to the new cost to chec% for reasonableness. *chedule 8ow that the seller %nows they have you as a longer ter! custo!er, they !ay not be as responsive to your needs. Custo!er satisfaction 8ow that the seller %nows they have you as a longer ter! custo!er, they !ay not be as responsive to your needs. :is% he ris% can be weighted !ore toward the buyer unless the above are investigated. For ,o#e ,ource<T*ere 0! On#y One ,upp#ier =hat if the seller owns a patent and goes out of business? If the seller owns a patent and goes ban%rupt, who owns the patent? 9uality Mou !ay have to ta%e what you get rather than request a certain quality level. Cost +ultiple year agree!ents will be required for the purchase of ite!s to prevent a price increase in the future. *chedule he seller has little incentive to agree to a schedule. *cope Mou !ay have to change the project to acco!!odate the procure!ent rather than change the procure!ent to acco!!odate the project. Custo!er satisfaction he seller has little incentive to be concerned with the buyer7s needs and desires. :is% he overall ris% can be weighted !ore toward the buyer unless the above are investigated and resolved. E"a#uation Criteria Dsed to developed 5 used to rate 4 !core proposals and to give the seller an understanding of the buyer7s needs and help the! decide if they should bid or !a%e a proposal on the wor%. Buring ,e#ect ,e##er!2 Avaluation Criteria beco!e the (a!i! by which the bids or proposals are evaluated by the buyer. If the buyer is purchasing a co!!odity li%e linear !eters of wood, the Avaluation Criteria !ay be just the lowest price. If they are buying construction services, the Avaluation Criteria !ay be price p#u! e+perience. If the buyer is buying services only, the Avaluation Criteria will be !ore e$tensive. In the latter case, such Avaluation Criteria !ay include: Dnderstanding of nee' O"era## or #ife cyc#e co!t 6see definition in the Cost chapter, Tec*nica# a(i#ity Mana ement approac* Financia# capacity Project mana ement a(i#ity 6I had to put this inW *houldn7t you require your sellers or vendors to use the project !anage!ent techniques you have learned? How about as%ing for a =#*, networ% diagra! and ris% analysis?, Bid Documents :equest for "roposal 6 :(" , Invitation for #id 6 I(# , :equest for 9uotation 6 :(9 , Contract $y-e Cost :ei!bursable (i$ed "rice i!e 5 +aterial or Dnit "rice Contract S* "erfor!ance or (unctional Besign 6 well-defined , 1ny Seller Selection ) based on + Tec*nica# !/i##! 4 approac* Price Price #uyer *eller #uyer5*eller Ris!
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Procurement Management Plan Contract S(W Ma%e)or)Buy Decisions Project Management Plan, such as : :is% :egister 6 the identified ris%s, ris% owners, 5 ris% responses , :is%-related contractual agree!ents 6 a reement! for in!urance, services , 1ctivity resource require!ents "roject schedule 1ctivity cost esti!ates Cost baseline
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*tandard (or!s, i.e. standard contracts, Procurement Document! 6 (i' descriptions of procure!ent ite!s, non-disclosure 'ocument! , agree!ents, proposal Avaluation Criteria chec%lists. E"a#uation Criteria A$pert Eudge!ent Contract *&= 6 updates ,
.U E=EC)T0NG
Time
Procur ement
Contract Closure
he purpose of the A$ecuting "rocesses 'roup is to comp#ete %or/ in the "roject +anage!ent "lan and to meet the project objectives. his is the ;do; step of the P#an<Do<C*ec/<Act cycle. he focus is on mana in peop#e, fo##o%in proce!!e! and 'i!tri(utin information. It is essentially a ui'in , proacti"e ro#e acco!plished by constant referral bac% to the "roject +anage!ent "lan. he processes of project !anage!ent are not always perfor!ed in the sa!e sequence. A$ecuting !eans e+ecutin t*e Project Mana ement P#an or t*e #ate!t re"i!e' "roject +anage!ent "lan. Mou are always e$ecuting to the "roject +anage!ent "lan, but the plan !ight have changed over ti!e.
Direct 8 Mana e Project E+ecution :

A$ecute the "roject +anage!ent "lan as defined in the Project ,cope ,tatement "roduce 'e#i"era(#e! Creates Wor/ Performance 0nformation his process requires imp#ementation of: Appro"e' Correcti"e Action! that will bring anticipated project perfor!ance into comp#iance F conformance with the "roject +anage!ent "lan Appro"e' Pre"enti"e Action! to reduce the probability of potential ne ati"e con!equence! of project ri!/! Appro"e' Defect Repair requests to correct product defects found during the 9ua#ity in!pection or the au'it process.
A'mini!trati"e C#o!ure Proce'ure he ad!inistrative closure procedure docu!ents all the activities, interactions, and related roles and responsibilities needed in e$ecuting the ad!inistrative closure procedure for the project. De#i"era(#e! 1ny unique and "erifia(#e product, result or capability to perfor! a service that is identified in the project !anage!ent planning docu!entation, and !ust be produced and provided to co!plete the project. Wor/ Performance 0nformation Infor!ation on the status of the project activities being perfor!ed to acco!plish the project wor% is routinely collected as part of the "roject +anage!ent "lan e$ecution. It7s fe' into t*e Performance Reportin process. his infor!ation includes, but is not li!ited to: *chedule progress showing !tatu! infor!ation Beliverables that have been 5 not 6 comp#ete' *chedule activities that have !tarte' and those that have been fini!*e' A$tent to which 9ua#ity standards are being !et Costs authori0ed and incurred Asti!ates to co!plete the schedule activities that have started "ercent physically co!plete of the in-progress schedule activities Bocu!ented lessons learned posted to the #e!!on! #earne' /no%#e' e (a!e :esource utili0ation detail.
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Project Management Plan Approve" Corrective & Preventive Actions Approve" Change" e!uests Approve" & *ali"ate" De'ect epair A"ministrative Closure Proce"ure
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"++ "roject +I* De#i"era(#e! :equested Changes
0mp#emente' C*an e Reque!t! 0mp#emente' Correcti"e 8 Pre"enti"e Action! 0mp#emente' Defect Repair Wor/ Performance 0nformation
Perform 9ua#ity A!!urance :

to 'etermine whether standards are being !et, the wor% is continuously impro"e' and deficiencies correcte'. includes i'entifyin impro"ement! 6 9ua#ity 0mpro"ement , that the organi0ation needs to !a%e.
9ua#ity Contro# Mea!urement 1re the results of 9C activities that are fed bac% to the 91 for use in re<e"a#uatin an' ana#y!in t*e qua#ity !tan'ar'! 5 proce!!e! for the project. 9ua#ity Au'it! Is a structured, in'epen'ent re"ie% to deter!ine whether project activities comp#y with organisational 5 project carried out by traine' in<*ou!e au'itor! or by Fr' partie!2 !ay be !c*e'u#e' or at ran'om. Is to identify inefficient and ineffecti"e policies, processes, 5 procedures in use on the project it confirm! the i!ple!entation of appro"e' C*an e Reque!t!2 Correcti"e 8 Pre"enti"e Action!2 an' Defect Repair! Proce!! Ana#y!i! part of continuous i!prove!ent A$a!ines proble! 5 constraints e$perienced, and non-value-added activities Includes root cau!e ana#y!i!, techniques to analyse a proble!Fsituation, deter!ine the underlying causes that lead to it. Create "reventive 1ctions for si!ilar proble!s. Correcti"e Action! 1n action that is recommen'e' 0MMED0ATE7@ as a result of 91 activities, such as au'it! and proce!! ana#y!i!.
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+uality Management Plan +uality Metrics Process ,mprovement Plan Wor% Per'ormance ,n'ormation Approve" Change" e!uests, i.e. !odifications to wor% !ethods, product require!ents, quality require!ents, scope, and schedule. +uality Control Measurements ,mplemente" Change e!uests ,mplemente" Corrective & Preventive Actions ,mplemente" De'ect epair
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9ua#ity P#annin Too#! 8 Tec*nique! 9ua#ity Contro# Too#! 8 Tec*nique! 9ua#ity Au'it! Proce!! Ana#y!i!
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:equested Changes 5 :eco!!ended Corrective 1ctions, for quality i!prove!ent. &"1 6 updates , "rocess I!prove!ent "lan 6 updates ,
Acquire 5 fina# 6 Project Team :

O(tainin the H: needed to co!plete the project, in which the project !anager !ay or !ay not have control over tea! !e!ber selected. his process involves : %now which resources are pre<a!!i ne' negotiate for the best possible resources hire new e!ployee outsourcing issues with virtual tea!
;irtua# Team! 1 tea! !ade up of people with little or no ti!e spent !eeting face-to-face, such as : tea! !e!bers, included specialised e$pertise, located in different geographic areas tea! !e!bers wor% fro! ho!e tea! !e!bers wor% in different shifts or hours people with !obility *an'icap! tra"e# e+pen!e! is an issues 1dditional ti!e !ay be needed to set clear e$pectations, develop protocols for confrontin conf#ict, include decision-!a%ing people, and share credit in successes.
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Ne otiation o negotiate for resources fro! within the organi0ation, the project !anager should understand the following: %now the nee'! of your project and its priority within the organi0ation. be able to e$press what is in it for the resource !anager to assist you. understand that the resource !anager has his own wor% to do and that he !ay not gain benefits fro! supporting your project. do not as% for the best resources if you do not need the!. be able to prove, by using the tools of project !anage!ent such as the net%or/ 'ia ram and project !c*e'u#e, why you need better resources if you need the!. use the negotiation as an opportunity to discover fro! the resource !anager what she will need fro! you in order to !anage her own resources. build a relationship so that you can call on the resource !anager7s e$pertise later in the project if necessary. wor% with the resource !anager to 'ea# %it* t*e !ituation
$a#o Effect is the assu!ption that because the person is good at a technology, he will be good as a project !anager.
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AA(, such as who is available, do they wor% well together, do they want to wor% on the project and how !uch do they cost. &"1, i.e. hiring procedures oles & esponsibilities
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"re-1ssign!ent, tea! !e!bers are %nown in advance, i.e. staff was i'entifie' in the Project C*arter. 8egotiation 1cquisition, i.e. con!u#tant! or !u(contractin wor% to third party Cirtual ea!s, needs Communication! P#annin
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"roject *taff 1ssign!ents, the appropriate people a!!i ne' to staff the project 6 %*o are on t*e team ,. Project Or ani!ation C*art! 8 ,c*e'u#e! are up'ate' %it* name!. :esource 1vailability, 'ocument t*e time perio'! each project tea! !e!ber can wor% on the project. *taffing +anage!ent "lan 6 Dpdate ,, updates to reflect changes, as specific people fill specific roles. his !ay include promotion!2 retirement!2 i##ne!!2 performance i!!ue!2 8 c*an in %or/#oa'!.
Project (rgani-ation Charts Sta''ing Management Plan
De"e#op Project Team :

I!proving the competencie! and interaction of tea! !e!bers to en*ance project performance. he ea! Bevelop!ent efforts have greater benefit when con'ucte' ear#y, but should ta%e place throughout the project life cycle. ea! Bevelop!ent !eans enhancing the ability of !ta/e*o#'er! to contri(ute as individuals enhancing the ability of the tea! to function a! a team &bjectives include: i!prove !/i##! of tea! !e!bers to increase their ability i!proves feelings of tru!t 5 co*e!i"ene!! to raise productivity through greater tea!wor% Effecti"e team%or/ includes: a!!i!tin one another communicatin in a way that fit individual preferences. !*arin infor!ation 5 resources. he project !anager : guide, !anage, 5 i!prove the interaction of tea! !e!bers. i!prove the trust 5 cohesiveness a!ong the tea!. incorporate tea! building activities into all project activities
Team -ui#'in ea! building is for!ing the project tea! into a co*e!i"e group wor%ing for the best interest of the project, in order to en*ance project performance. +a%e sure you %now: it is the job of the project !anager to guide, !anage and i!prove the interaction of tea! !e!bers. the project !anager should i!prove the tru!t and co*e!i"ene!! a!ong the tea!. project !anagers should incorporate tea! building activities into all project activities. tea! building requires a concerte' effort and continue' attention throughout the life of the project. the W-, creation is a tea! building tool. tea! building should start ear#y in the life of the project Team<-ui#'in Acti"itie! can include : build trust 5 establishing good wor%ing relationship 6 !ilestone parties, holiday, birthday celebrations, wor% trips , creating the =#* requires a concerted effort and continued attention throughout the project2s life planning the project by getting everyone involved in so!e way 6 start early in the life of the project , Groun' Ru#e! - establish a clear e+pectation! regarding accepta(#e (e*a"iour by tea! !e!bers, allows tea! !e!bers to 'i!co"er "a#ue! to one another. Co<7ocation or War Room, to place tea! !e!bers in the sa!e location, to : enhance communication decreases the i!pact of conf#ict 6since all parties are right there, i!proves project i'entity for the project tea! and for !anage!ent in a !atri$ organi0ation. Team Performance A!!e!!ment #y continually assessing the project tea!7s perfor!ance, actions can be ta%en to re!o#"e i!!ue!, mo'ify communication!, a''re!! conf#ict, 5 impro"e team interaction, analysis of how !uch tea! !e!bers7 !/i##! have i!proved, 5 reduce staff turno"er rate.
/Reco nition 8 Re%ar'! the original plans to reward people are developed during $uman Re!ource P#annin award decisions are !ade, for!ally or infor!ally, during the process of Mana in t*e Project Team t*rou * Performance Apprai!a#! rewarding %in<%in behaviour that E;ER@ONE can achieve, tends to increase support a!ong tea! !e!bers. recognition and rewards should consider cu#tura# 'ifference!.
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Project Sta'' Assignments, the #i!t of project tea! !e!bers. Sta''ing Management Plan, which identifies trainin !trate ie! 5 p#an for developing the project tea!. :ewards, feedbac%, additional training, 5 disciplinary actions are added to the plan. esource Availability, which identifies time! that project tea! !e!bers can participate in tea! develop!ent activities.
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'eneral +anage!ent *%ills, i.e. !oft !/i##! or interper!ona# !/i##!, such as e!pathy, influence, creativity, 5 group facilitation. raining ) !c*e'u#e' trainin ta%es place as stated in the *taffing +anage!ent "lan@ un!c*e'u#e' trainin ta%es place as a result of o(!er"ation, con"er!ation, 5 Project Performance Apprai!a#! conducted during the controlling process of !anaging the project tea!. ea!-#uilding 1ctivities 'round :ules Co->ocation or =ar roo! :ecognition 5 :ewards
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Team Performance A!!e!!ment
0nformation Di!tri(ution :
!a%ing infor!ation a"ai#a(#e to project ,TAKE$O7DER, in a ti!ely !anner. imp#ement Communications Management Plan re!pon'in to une$pected requests for infor!ation involves creating reports providing infor!ations that was not p#anne'.
Communication! ,/i##! !a%e sure that the ri *t per!on! get the ri *t info at the ri *t time. mana in !ta/e*o#'er requirement. ype of co!!unication : written and oral, listening and spea%ing internal 6 within the project , and e$ternal 6 custo!er, the !edia, the public , for!al 6 reports, briefings , and infor!al 6 !e!os, ad hoc conversations , vertical 6 up 5 down the organisation , and hori0ontal 6 with peers ,
0nformation Gat*erin an' Retrie"a# ,y!tem! Infor!ation can be gathered and retrieved through a variety of !edia including manua# fi#in !y!tem!, e#ectronic 'ata(a!e!, project mana ement !oft%are, and syste!s that allow access to tec*nica# 'ocumentation, such as en ineerin 'ra%in !, 'e!i n !pecification!, and te!t p#an!. 0nformation Di!tri(ution Met*o'! "roject infor!ation can be distributed using a variety of !ethods, including: Project meetin !, hard-copy docu!ent distribution, !anual filing syste!s, and shared-access electronic databases E#ectronic communication an' conferencin too#!, such as e-!ail, fa$, voice !ail, telephone, video and =eb conferencing, and =eb publishing E#ectronic too#! for project mana ement, such as =eb interfaces to scheduling and project !anage!ent software, !eeting and virtual office support software, portals, and collaborative wor% !anage!ent tools. 7e!!on! 7earne' Proce!! : provide : o Dpdate of the lessons learned <# o Input to %nowledge !g!t syste! o Dpdated corporate policies, procedures o 0mpro"e' (u!ine!! !/i##! o &verall product 5 service i!prove!ents o Dpdates to the Ri!/ Mana ement P#an create' t*rou *out the project and then fina#i3e' during "roject Closing or "roject "hase Closing. help reca## what went right, wrong, progress, etc. on the project. !ight be sent out a! t*ey are create', as part of 0nformation Di!tri(ution activities on the project. the project !anagers have an obligation to con'uct lessons learned sessions for all projects with %ey interna# 5 e+terna# !ta/e*o#'er!. a project cannot (e con!i'ere' comp#ete unless the lessons learned are comp#ete'. Continuous i!prove!ent of the project !anage!ent process cannot occur %it*out lessons learned. one should not wait until the project is over to share lessons learned with other projects. to be as valuable as possible, lessons learned should cover three areas: o tec*nica# a!pect! of the project o project mana ement 6How did we do with =#* creation, ris%, etc.?, o mana ement 6How did I do with co!!unications and leadership as a project !anager?, Project recor'! - corre!pon'ence, memo!, and docu!ents describing the project. Project report! ) for!al 5 infor!al reports detail project !tatu!, and include lessons learned, issues logs, project closure reports, and outputs fro! other <nowledge 1reas. ,ta/e*o#'er notification! 0nformation may (e pro"i'e' to !ta/e*o#'er a(out re!o#"e' i!!ue!2 appro"e' c*an e!2 an' enera# project !tatu!.
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Communications Management Plan
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Communication! ,/i##! 0nformation Gat*erin 8 Retrie"a# ,y!tem! 0nformation Di!tri(ution Met*o'! 7e!!on! 7earne' Proce!!
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&"1 6 updates , : >essons >earned docu!entation "roject records, reports, 5 presentations Fee'(ac/ from !ta/e*o#'er!, concerning project operation! ,ta/e*o#'er notification! :equested Changes, should trigger changes to the Project Mana ement P#an and the Communication! Mana ement P#an.
Reque!t ,e##er Re!pon!e! :

'etting the Procurement Document! into the hands of sellers answering the sellers7 questions and the sellers preparing the proposals.
-i''er Conference! 5 Contractor Conference!2 ;en'or Conference!2 Pre<-i' Conference! 6 are !eetings with prospective seller prior to preparation of a bid or proposal to ensure that A77 prospective sellers have a c#ear and common understanding of the procure!ent 6 i.e. technical 5 contract require!ents ,, so that no one (i''er i! i"en an unfair a'"anta e an opportunity for the buyer to discover anything that is !issing. hings the "roject +anager !ust %atc* out for in a #idder Conference : Collusion *ellers not as%ing their questions in front of their co!petition +a%ing sure all questions and answers are put in %ritin and i!!ue' to a## potentia# !e##er! by the buyer as a''en'a to the "rocure!ent Bocu!ents. his en!ure! that a## !e##er! are re!pon'in to t*e !ame contract ,tatement Of Wor/.
Procurement Document Pac/a e he procure!ent docu!ent pac%age is a (uyer<prepare' forma# reque!t !ent to eac* !e##er and is the basis upon which a seller prepares a bid for the requested products, services, or results that are defined and described in the procure!ent docu!entation. Propo!a#! - seller7s response, seller-prepared docu!ents that describe the seller7s a(i#ity 5 %i##in ne!! to provide the requested products, services, or results described in the Procurement Document!
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&"1 Procurement Management Plan Procurement Documents #idder Conference 1dvertising
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9ua#ifie' ,e##er! 7i!t
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Procurement Document Pac/a e Propo!a#!
Bevelop 9ualified *ellers >ist
,e#ect ,e##er! :
re"ie%in offers , c*oo!in a!ong potential sellers, and ne otiatin a written contract with each seller. receives and reviewing bids or proposals and selecting one or !ore sellers the E"a#uation Criteria identified in the P#an Contractin process are used to assess the potential sellers7 a(i#ity and %i##in ne!! to provide the requested products or services. #ecause they are !easurable, the criteria provide a basis for quantitati"e#y evaluating proposals to !ini!i0e the influence of personal prejudices. In this process: o 1 seller !ay si!ply be !e#ecte' and a!/e' to !i n a !tan'ar' contract o 1 seller !ay be as%ed to !a%e a presentation and then, if all goes well, go on to ne otiation! o he list of sellers !ay be narrowed down 6;!*ort<#i!te';, to a few o he short-listed sellers !ay be as%ed to !a%e presentations and the selected seller then as%ed to go on to ne otiation! o he buyer can negotiate with !ore than one seller o &r so!e co!bination of presentations and negotiations
Wei *tin ,y!tem a !ethod for quantifyin qua#itati"e 'ata to !ini!i0e the effect of per!ona# preju'ice on seller selection weighting the E"a#uation Criteria according to your prioritie!, and comparin sellers to choose the one who best !eets your criteria 0n'epen'ent E!timate! Co!paring the cost to an esti!ate created in<*ou!e or with outside assistance 6 referred to as 3!*ou#'<co!t4 esti!ate , . his allows the discovery of !i nificant 'ifference! between what the buyer and seller intend in the contract state!ent of wor%, which !eans : the Contract *&= was not a'equate the prospective seller either mi!un'er!too' or failed to re!pon' fu##y to the Contract *&= the !ar%etplace has c*an e' ,creenin ,y!tem Ali!inating sellers that do not !eet !ini!u! requirement! of the &valuation Criteria, and can e!ploy Wei *tin ,y!tem 8 0n'epen'ent E!timate! Contract Ne otiation Dsed to c#arify the requirement of the contract so that !utual agree!ent can be reached PR0OR to signing the contact. It concludes with a 'ocument that can be !i ne' by both the buyer and seller, that is , the CONTRACT. he fina# contract !eans A77 agree!ents are reached, but can be a re"i!e' offer by the seller or a counter offer by the buyer. *ubjects covered include responsibilities and authorities, applicable ter!s and law, technical and business !anage!ent approaches, proprietary rights, contract financing, technical solution, overall schedule, payment!, and price. he objectives of negotiation are to :
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obtain a fair and rea!ona(#e price develop a good re#ation!*ip with the seller he main item! to address while ne otiatin a contract are: :esponsibilities 1uthority 1pplicable law-Dnder whose law will the contract fall echnical and business !anage!ent approaches Contract financing *chedule "ay!ents and price
Contract 1 contract is a legally binding docu!ent : in which all term! an' con'ition! in that docu!ent !ust be met. that obligates the seller to provide the specified products, services, or results, and o(#i ate! t*e (uyer to pay t*e !e##er that any changes to it, are !ade forma##y in %ritin . include a Contract ,OW sign-off 6 i.e. acceptance , fro! both parties seller7s address is NOT required. awarded to each selected seller and i! a #e a# re#ation!*ip !u(ject to reme'y in t*e court!. Contract can (e amen'e' any time prior to Contract C#o!ure (y mutua# con!ent2 in accor'ance %it* t*e c*an e contro# term of t*e contract. o have a #e a# contract, you7ll need : an offer acceptance consideration - so!ething of value, not necessarily !oney legal capacity - separate legal parties, co!petent parties legal purpose - you cannot have a contract for the sale of illegal goods
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&"1 Procurement Management Plan &valuation Criteria Procurement Document Pac%age Proposals +uali'ie" Sellers List Project Management Plan, as above =eighting *yste! Independent Asti!ates *creening *yste! Contract 8egotiation
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,e#ecte' ,e##er! Contract
*eller :ating *yste!s, used in a''ition to the proposal evaluations ,creenin ,y!tem to select sellers. A$pert Eudge!ent "roposal Avaluation echniques, can e!ploy a ,creenin ,y!tem and use data fro! a ,e##er Ratin ,y!tem.
Contract Mana ement P#an, a plan specific to one contract , tal%s only about Contract2 and covers the Contract A'mini!tration activities throughout the life of the contract. :esource 1vailability "rocure!ent +anage!ent "lan 6 updates ,, address how all procure!ents on a project will be !anaged. :equested Changes, to the "roject +anage!ent "lan.
/H MON0TOR0NG 8 CONTRO770NG
Time
Procur ement
Contract Closure
0t1! mea!urin t*e performance of t*e project to t*e project mana ement p#an2 appro"in c*an e reque!t!2 pre"enti"e action! an' 'efect repair2 an' mana in c*an e!. he +onitoring and Controlling "rocess 'roup : consists of those processes perfor!ed to observe project e$ecution so that potential proble!s can be i'entifie' in a time#y manner and correcti"e action can be ta%en, when necessary, to control the e$ecution of the project. the project team should 'etermine which of the processes are require' for the tea!2s specific project. to o(!er"e the project perfor!ance and to mea!ure regularly to identify variances fro! the project !anage!ent plan. includes contro##in c*an e! and recommen'in pre"enti"e action in anticipation of possible proble!s. includes monitorin the on oin project activities against the project !anage!ent plan and the project performance (a!e#ine includes influencing the factors that could circum"ent Integrated Change Control so ON7@ approved changes are imp#emente'. in !ulti-phase projects, provides fee'(ac/ between project p*a!e!, in order to i!ple!ent corrective or preventive actions to bring the project into co!pliance with the project !anage!ent plan. =hen variances jeopardi0e the project objectives, appropriate project !anage!ent processes within the "lanning "rocess 'roup are revisited as part of the !odified P#an<Do<C*ec/<Act cycle. his review can result in recommen'e' up'ate! to the "roject +anage!ent "lan. (or e$a!ple, a !issed activity finish date can require adjust!ents to the current staffing plan, reliance on overti!e, or tradeoffs between budget and schedule objectives. A## Monitorin an' Contro# Proce!!e! e$cept 6 Integration +anage!ent 5 +anage *ta%eholders , will have following / outputs: :equested Changes :eco!!ended Corrective 1ctions "roject +anage!ent plan 6 Dpdates, 6 A$cept in "erfor!ance :eporting , &rgani0ational "rocess 1ssets 6 Dpdates,
Monitor 8 Contro# Project Wor/ :

It is concerned with: Comparin actua# project performance against the "roject +anage!ent "lan 1ssessing performance to deter!ine whether any Corrective or "reventive 1ctions are indicated, and then recommen'in those actions as necessary Ana#y!in , trac/in , and monitorin project ri!/! to !a%e sure the ris%s are i'entifie', their status is reporte', and that appropriate Ri!/ Re!pon!e P#an! are being e$ecuted +aintaining an accurate, time#y information base concerning the project2s product6s, and their associated docu!entation through project co!pletion "roviding infor!ation to !upport status reporting, progress !easure!ent, and forecasting "roviding foreca!t! to update current cost and current schedule infor!ation Monitorin imp#ementation of appro"e' c*an e! when and as they occur. Earne' ;a#ue Tec*nique 5 E;T 6 he AC !easures perfor!ance of the project as it !oves fro! "roject Initiation through "roject Closure. he Aarned Calue +anage!ent !ethodology also provides a !eans to forecast future perfor!ance based upon past perfor!ance.
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Correcti"e Action Documente' 'irection to bring e$pected future project perfor!ance in line with the "roject +anage!ent "lan or to deal with actua# 'e"iation! fro! the perfor!ance baselines 6 the docu!ents beco!e part of the *i!torica# recor'! database ,. o i!ple!ent it, you need: a focused attention proactive 6 loo% for proble!s rather than just waiting , !etrics created in the "lanning "rocess group that cover all aspects of the project a realistic "roject +anage!ent "lan to !easure against continued !easure!ent throughout the project the ability to %now when the project is off trac% the ability to identify the need for :eco!!ending Corrective 1ction the ability to find the root cause of the deviation !easure!ent of project perfor!ance after Corrective 1ction is i!ple!ented to evaluate the effectiveness of the Corrective 1ction a deter!ination of the need for reco!!ending further Corrective 1ction W*en =hen !eeting with the custo!er to obtain acceptance of deliverables =hen !easuring project perfor!ance against "erfor!ance +easure!ent #aselines =hen !a%ing sure people are using the correct processes =hen creating perfor!ance reports =hen wor%ing with the project tea! =hen you notice that there are !any unidentified ris%s occurring =hen you discover that the seller7s perfor!ance is not !eeting e$pectations =hen you discover that a tea! !e!ber is not perfor!ing *cope Cerification *cope, *chedule, Cost, "erfor! 9uality Control "erfor! 9uality 1ssurance "erfor!ance :eporting +anage project tea! :is% !onitoring and control Contract 1d!inistration +anage project tea! W*ere 5 Output of 6
Pre"enti"e Action Beals with anticipate' or po!!i(#e 'e"iation! fro! the perfor!ance baselines. A$a!ples : action to prevent the sa!e proble! fro! occurring again later in the project changing a resource because the resource7s last activity nearly failed to !eet its 1cceptance Criteria arranging for tea! !e!bers to gain training in a certain area because there is no one with the necessary s%ills to bac% up a tea! !e!ber who !ay une$pectedly get sic%. "reventive 1ction can be i!ple!ented at any time for any project mana ement proce!!, but Recommen'e' Pre"enti"e Action is only specifically !entioned in the "+#&<; 'uide as being an output of: Monitor an' contro# project %or/ 6Integration chapter, Perform qua#ity contro# 69uality chapter, Mana e project team 6Hu!an :esources chapter, Ri!/ monitorin 5 contro# 6:is% chapter, I >i%e Corrective 1ctions, "reventive 1ctions result in the creation of Recommen'e' C*an e Reque!t! which are approved or rejected in the 0nte rate' C*an e Contro# process and i!ple!ented during the Direct an' Mana e Project E+ecution process. J Defect Repair 1nother word for rewor% and is necessary when a co!ponent of the project does not !eet its specifications. Biscovered during the 9ua#ity Mana ement process, and for!ed into a Change :equest during the Monitor an' Contro# "roject wor% process, these changes are approved or rejected in the 0nte rate' C*an e Contro# process. Befect :epair relates to 9uality, so :eco!!ended Befect :epair is only specifically !entioned in the "+#&<; 'uide as being an output of: Monitor an' contro# project %or/ 6Integration chapter, Perform qua#ity contro# 69uality chapter, "arned 0alue Management )"0M+ : 1 !anage!ent !ethodology for integrating scope, schedule, and resources, and for objectively !easuring project perfor!ance and progress. Performance is !easured by deter!ining the budgeted cost of wor% perfor!ed 6i.e., Earne' ;a#ue, and co!paring it to the actual cost of wor% perfor!ed 6i.e., Actua# Co!t,. Pro re!! is !easured by co!paring the Earne' ;a#ue 5 E; 6 to the P#anne' ;a#ue 5 P; 6. "arned 0alue $echni%ue )"0$+ I echniqueJ : 1 specific technique for !easuring the perfor!ance of wor% for a =#* co!ponent, Control 1ccount, or project. 1lso referred to as the Earnin Ru#e! and Cre'itin !ethod. 1orecasts : Asti!ates or predictions of conditions and events in the project2s future based on infor!ation and %nowledge available at the ti!e of the forecast. (orecasts are updated and reissued based on Wor/ Performance 0nformation provided as the project is e$ecuted. he infor!ation is based on the project2s pa!t performance and e+pecte' future performance, and includes infor!ation that could i!pact the project in the future, such as Asti!ate 1t Co!pletion 6 EAC , and Asti!ate o Co!plete 6 ETC ,.
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Project Management Plan Wor% Per'ormance ,n'ormation :ejected Change :equests "++ "roject +I* E;T
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Pre"enti"e Action :equested Changes (orecast
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Recommen'e' Correcti"e Action 8 Defect Repair
A$pert Eudge!ent
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0nte rate' C*an e' Contro# :
he process of re"ie%in all change requests, appro"in changes, and contro##in changes to deliverables and organi0ational process assets. "erfor!ed throughout the project fro! Project 0nitiatin through Project C#o!ure Identify that a change nee'! to occur or *a! occurre' 0nf#uencin other factors so that on#y approved changes are i!ple!ented :eview 5 approve :equested Changes +anaging the approved changes when and as they occur, by regulating the f#o% of :equested Changes +anaging the inte rity of (a!e#ine! by releasing only approved changes :eview 5 approve Recommen'e' Correcti"e 8 Pre"enti"e Action!. Contro##in 8 up'atin t*e ,cope2 Co!t2 -u' et2 ,c*e'u#e2 Re!ource2 8 9ua#ity requirement! (a!e' on Appro"e' C*an e!2 (y coor'inatin c*an e! acro!! t*e entire project N impact on 1trip#e con!traint1 O Bocu!ent the i!pact of requested changes ;a#i'atin Befect :epair Contro##in project qua#ity to !tan'ar'! (a!e' on qua#ity report!
"roposed changes can require : ne% or re"i!e' cost esti!ates, schedule activity sequences, schedule dates, resource require!ents, and analysis of ris% response alternatives. a'ju!tment! to the "roject +anage!ent "lan, "roject *cope *tate!ent, or other project deliverables. A c*an e in any component of t*e Qtrip#e con!traintQ !*ou#' (e F0R,T e"a#uate' for impact! on a## t*e ot*er component! (or handling changes 6 change request , , generally, the project !anager should follow these steps: E"a#uate impact - evaluate 6assess, the i!pact of the change to the project N impact on 1trip#e con!traint1 O Create option! - this can include cutting other activities, crashing, fast trac%ing, etc., as described in the i!e chapter. 6e.g., we can decrease the effect of the change on the project by spending !ore ti!e decreasing project ris%, or by adding one !ore technician to the project tea!,. 'et interna# buy-in 5 cu!tomer buy-in 6if required, Proce!! for Ma/in C*an e! : Pre"ent t*e root cau!e of c*an e - he project !anager should pro actively eli!inate the need for changes, and the sponsor should prevent unnecessary changes to the project objectives 6 as project objectives is stated in the "roject Charter , 0'entify c*an e - Biscovering a change earlier will decrease the i!pact of the change. Create a c*an e reque!t ) see above. A!!e!! t*e c*an e - Boes the change fall within the "roject Charter? 0f not2 it !*ou#' not (e a c*an e to your project2 (ut may (e an entire#y 'ifferent project. Is the change beneficial to the project? Is it needed? If the answer to any of these questions is no, t*e c*an e !*ou#' not (e appro"e'. However, any change that already had a reserve created for it 6a pre"iou!#y i'entifie' ri!/ e"ent, should be handled as part of Ri!/ Mana ement. 7oo/ at t*e impact of t*e c*an e - If it is a scope change, how will it affect the scope of the project? If it is a ti!e change, how will it affect the schedule for the project? Perform 0nte rate' C*an e Contro# - How will the change affect all other co!ponents of the ;triple constraint?; 7oo/ for option! - &ptions include actions to decrease threats further, increase opportunities, co!press the schedule through crashing, fast trac%ing, changing how the wor% is perfor!ed, adjusting quality or cutting scope so that the effect of the change will be !ini!i0ed. #e careful, it is not wise to decrease the i!pact of every change. In doing so, the project !anager could decrease the overall probability of success on the project as a whole. *o!eti!es an additional two wee%s worth of scope added to the project should receive a two wee% e$tension of ti!e to the project, if the wor% occurs on the Critica# Pat*. C*an e i! appro"e' or rejecte' - 1ll the :eco!!ended Corrective 1ctions, "reventive 1ctions and :equested Changes feed into Integrated Change Control, but nowhere in the "+#&<; 'uide does it describe who approves changes? o If there is a change to the Project C*arter2 t*e !pon!or %*o !i ne' or appro"e' t*e Project C*arter *a! to ma/e t*e fina# 'eci!ion. he project !anager may pro"i'e option!. o If the change affects or changes the Performance Mea!urement -a!e#ine! or any project con!traint!2 t*e C*an e Contro# -oar' or !pon!or nee'! to (e in"o#"e'. he project !anager should ana#y!e t*e project to !ee if t*e (a!e#ine! or con!traint! can (e met. If not, then co!e up with option!, including cra!*in and fa!t trac/in . o If the change is within the Project Mana ement P#an2 or t*e project mana er can a'ju!t t*e project to accommo'ate t*e c*an e2 t*e project mana er can ma/e t*e 'eci!ion. He !ay, under certain circu!stances, get the sponsor involved to help protect the project fro! changes. *o, although a for!al change request !ust be created for all changes to the project, the project !anager could be the one to create and approve certain change requests without getting anyone else7s approval. o 0t i! important to rea#i3e t*e project mana er i! often i"en t*e aut*ority to appro"e mo!t c*an e! in emer ency !ituation!. A'ju!t t*e Project Mana ement P#an an' (a!e#ine! - 1pproved changes need to be incorporate' into the project baselines. he changes could affect other parts of the "roject +anage!ent "lan or affect the way the project !anager will !anage the project, so changes could be !ade to !anage!ent plans 6e.g., schedule !anage!ent plan, and the project !anage!ent plan as a whole. Notify !ta/e*o#'er! affecte' (y t*e c*an e - his could be thought of as Confi uration Mana ement, a for! of version control or a way to !a%e sure everyone is wor%ing off the sa!e project !anage!ent plan. +anage the project to the new project !anage!ent plan C*an e Contro# -oar' : a group of !ta/e*o#'er! responsible for re"ie%in , e"a#uatin , appro"in , 'e#ayin , or rejectin changes to the project, with all decisions 5 reco!!endations being recor'e' I if a project is being provided under a contract, then so!e proposed changes to be approved by the Cu!tomer J. he Configuration +anage!ent *yste!s acco!plishes . objectives : establishes a !ethod to identify 5 request changes to E,TA-70,$ED (a!e#ine!, and to assess the value 5 effectiveness of those changes. to continuously validate 5 i!prove the project by considering the impact of each change to communicate a## c*an e! to !ta/e*o#'er! he Configuration +anage!ent *yste!s with C*an e Contro# : provides a !tan'ar'i!e', effecti"e, 5 efficient process to centra##y mana e c*an e! within a project. includes i'entifyin 2 'ocumentin 2 an' contro##in changes to the (a!e#ine. he Configuration +anage!ent activities included in this process are : Configuration Identification Configuration *tatus 1ccounting
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Configuration Cerification 5 1uditing Change Control : Identifying, docu!enting, approving or rejecting, and controlling changes to the project (a!e#ine!. Change Control Board )CCB+ : 1 for!ally constituted group of sta%eholders responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, with A77 'eci!ion! and recommen'ation! being recor'e'. Change Control System I oolJ : 1 collection of for!al docu!ented procedures that define how project deliverables and docu!entation will be contro##e', c*an e', and appro"e'. In !ost application areas the Change Control *yste! is a subset of the Configuration Management System. Configuration Management System I oolJ : 1 subsyste! of the overall "roject +anage!ent *yste!. It is a collection of for!al docu!ented procedures used to apply technical and ad!inistrative direction and surveillance to: i'entify and 'ocument the functional and physical characteristics of a product, result, service, or co!ponent contro# any c*an e! to such characteristics recor' and report eac* c*an e and its imp#ementation !tatu! support the au'it of the products, results, or co!ponents to "erify conformance to require!ents. It includes the docu!entation, trac/in !y!tem!, and defined approval levels necessary for aut*ori3in and contro##in changes.
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Project Management Plan Deliverables Wor% Per'ormance ,n'ormation :eco!!ended Corrective 5 "reventive 1ctions :eco!!ended Befect :epair :equested Changes
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"++ "roject +I* A$pert Eudge!ent
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"roject +anage!ent "lan 6 Dpdate , "roject *cope *tate!ent 6 Dpdate , Appro"e' 4 Rejecte' C*an e Reque!t! Appro"e' Correcti"e 8 Pre"enti"e Action! Appro"e' 8 ;a#i'ate' Defect Repair De#i"era(#e!
,cope ;erification :
is the process of c*ec/in the wor% against the Project Mana ement P#an and the Project ,cope Mana ement P#an, W-, and W-, Dictionary, and then !eeting with the custo!er to o(tain forma# acceptance of t*e comp#ete' project 'e#i"era(#e! can be done at t*e en' of eac* project p*a!e in the project life cycle 6 to verify the phase deliverables along the way , and during the Monitorin an' Contro##in Proce!! roup in the "roject +anage!ent "rocess. if the project is terminate' ear#y, this process should establish and docu!ent the #e"e# and e+tent of comp#etion pri!arily concerned with the custo!er acceptance of 'e#i"era(#e! I while 9uality Control 6 9C , is pri!arily concerned with meetin t*e qua#ity requirement! specified for the deliverable and analysis of the correctne!! of the wor% J in general, 9C is perfor!ed -EFORE *cope Cerification 6 to !a%e sure the wor% !eets the quality require!ents (efore !eeting with the custo!er, only has W-, Dictionary as input NOT W-,.
1lternative ways to describe *cope Cerification: Re"ie%in wor% products and results to ensure that all are co!pleted according to !pecification! Conducting in!pection!, re"ie%!, au'it! Beter!ining whether results conform to require!ents and whether wor% products are comp#ete' correctly Bocu!enting co!pletion of deliverables Gainin forma# !i n<off Accepte' 5 ,ati!factory 6 De#i"era(#e! he *cope Cerification process docu!ents those co!pleted deliverables that have been accepted 6 satisfactory ,. hose co!pleted deliverables that have not been accepted are docu!ented, along with the reasons for non-acceptance 6 non-satisfactory ,. *cope verification includes supporting docu!entation received fro! the custo!er or sponsor and ac%nowledging sta%eholder acceptance of the project2s deliverables.
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Project Scope Statement =#* Bictionary Project Scope Management Plan Deliverables
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Inspection, such as : +easuring, e$a!ining, 5 verifying whether the wor% 5 deliverables !eet require!ent 5 product acceptance criteria 1<1 audit, wal%through, or reviews
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Accepte' De#i"era(#e! :equested Changes :eco!!ended Corrective 1ctions
,cope Contro# :
to control c*an e! to the "roject *cope. to mana e the actual changes when they occur 5 integrated with the other control process to !a%e sure A77 Reque!te' C*an e! 8 Recommen'e' Correcti"e Action! are processed through 0nte rate' C*an e Contro# to deter!ine t*e cau!e of "ariance relative to the scope baseline. o control scope 5 )ncontro##e' c*an e! are often referre' to a! project !cope creep 6 : one first needs to have a c#ear 'efinition of what is the scope on the project@ the Project ,cope ,tatement, W-, and W-, Dictionary. &ne then has to !easure scope perfor!ance against the !cope (a!e#ine. &nce that infor!ation is %nown, the ne$t step is to deter!ine if any updates to the "roject +anage!ent "lan or the co!ponents of the scope baseline are nee'e', and what corrective and preventive actions should be recommen'e'.
Performance Report! "erfor!ance reports provide infor!ation on project wor% perfor!ance, such as interi! deliverables that have been co!pleted. Appro"e' C*an e Reque!t! 1n approved change request i!pacting project scope is any !odification to the agreed-upon project !cope (a!e#ine, as defined by the approved Project
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,cope ,tatement, W-,, and W-, Dictionary. C*an e Contro# ,y!tem is the proce'ure (y %*ic* t*e Project ,cope an' Pro'uct ,cope can (e c*an e' 6 i.e. docu!entation, trac%ing syste!s, approval level, contractual provisions ,. ;ariance Ana#y!i! his analysis allows to deter!ine the cau!e of "ariance re#ati"e to t*e !cope (a!e#ine and deciding whether corrective action is required. Confi uration Mana ement ,y!tem 1 for!al Configuration +anage!ent *yste! provides procedures for the status of the deliverables, and assures that requested changes to the project scope and product scope are thoroughly considered and docu!ented -EFORE being processed through the 0nte rate' C*an e Contro# process. Sco-e Cree- : 1dding features and functionality 6project scope, without addressing the effects on ti!e, costs, and resources, or without custo!er approval.
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Project Scope Statement WBS & WBS Dictionary Project Scope Management Plan Per'ormance eports Approve" Change e!uests Wor% Per'ormance ,n'ormation
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C*an e Contro# ,y!tem ;ariance Ana#y!i! :eplanning Configuration +anage!ent *yste!
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"roject *cope *tate!ent 6Dpdates , =#* 6Dpdates , =#* Bictionary 6Dpdates , *cope #aseline 6Dpdates , :equested Changes :eco!!ended Corrective 1ctions &"1 6Dpdates , "roject +anage!ent "lan 6Dpdates ,
,c*e'u#e Contro# :
Is the process of effectively mana in c*an e! to the project schedule, then inte ratin those changes across the entire project through the 0nte rate' C*an e Contro# process. his process is concerned with: deter!ining the current !tatu! of the project schedule influencing the factors that create schedule changes deter!ining that the project schedule has changed !anaging the actual changes as they occur. adjusting future parts of the project for delays, rather than as%ing for a ti!e e$tension adjusting !etrics that are not giving the project !anager the infor!ation needed to properly !anage the project adjusting progress reports and reporting utili0ing the C*an e Contro# processes i'entifyin Reque!te' C*an e! an' Recommen'e' Correcti"e Action! Pro re!! Reportin 1 useful !ethod to control schedule and costs , which provide infor!ation on an e!timate of percent comp#ete for eac* %or/ pac/a e or acti"ity. &n projects where wor% cannot be !easured, this esti!ate is si!ply a ue!!. Performance Mea!urement! "roduce the ,c*e'u#e ;ariance 6 ,; , 5 ,c*e'u#e Performance 0n'e+ 6 ,P0 , to help deter!ine the severity of plan variances. Reque!te' C*an e! *chedule variance analysis, review of progress reports, results of perfor!ance !easure!ent, and !odifications to the project schedule !odel, can result in :equested Changes.
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*chedule +odel Bata 6 Dpdate ,, any 5 all !odifications to schedule !odel data *chedule #aseline 6 Dpdate ,, schedule revision resulting fro! 1pproved Change :equest "erfor!ance +easure!ents, the *C 5 *"I values for =#* co!ponents are communicate' to !ta/e*o#'er :equested Changes, to the project schedule baseline :eco!!ended Corrective 1ctions, actions ta%en to bring future !c*e'u#e performance into conformance with plan, requires analysis to identify the cause of the variations.
Sche"ule Management Plan, describes "rogress :eporting, infor!ation on actual how schedule changes will be !anaged startFfinish dates and re!aining durations. 5 controlled. *chedule Change Control *yste!, part of 0nte rate' C*an e Contro#. Sche"ule Baseline, which provides the basis for mea!urin 8 reportin Performance Mea!urement! !c*e'u#e performance as part of the "erfor!ance +easure!ent #aseline. "roject +anage!ent *oftware Per'ormance eports, such charts, tables, histogra!s, etc. that su!!arise !c*e'u#e performance. Approve" Change e!uests ;ariance Ana#y!i!, co!paring target objectives to actuals 6 schedule F cost ,, to identify need for Corrective 1ction.
*chedule Co!parison #ar Charts, bar charts that co!pare planned perfor!ance 5 actual &"1 6 Dpdate ,, schedule control related lesson learned progress. 1ctivity >ist 6 Dpdate , 1ctivity 1ttributes 6 Dpdate , "roject +anage!ent "lan 6 Dpdate ,, !ainly *chedule +anage!ent "lan.
Co!t Contro# :
Includes : Influencing the factors that create cost variances and controlling changes to the project budget. Determine t*e cau!e of a "ariance2 t*e ma nitu'e of t*e "ariance2 8 to 'eci'e if t*e "ariance require! Correcti"e Action!. Ansuring requested changes are agreed upon
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+anaging the actual changes when 5 as they occur A!!urin that potential cost overruns do not e$ceed the authorised funding periodically 5 in total for the project Monitorin cost perfor!ance to detect 5 understand variances fro! the cost baseline Recor'in all appropriate changes accurately against cost baseline Pre"entin incorrect2 inappropriate2 or unappro"e' c*an e! from (ein inc#u'e' in t*e reporte' co!t or re!ource u!a e 0nformin appropriate sta%eholders of approved changes 1cting to bring e$pected cost overruns within acceptable li!its (ollow C*an e Contro# ,y!tem +easure schedule perfor!ance against the Performance Mea!urement -a!e#ine! Mana e actual changes Control i!pact of cost changes :eco!!end Corrective 1ctions :equest changes 1nalyse variances Bocu!ent lessons learned )p'ate Project Mana ement P#an 8 Co!t (a!e#ine Reca#cu#ate the esti!ate at co!pletion 6 EAC , O(tain a''itiona# fun'in %*en nee'e' +anage the budget reserve Dse Aarned Calue 6 AC ,
E;T : a !ethod to mea!ure project performance a ain!t t*e project (a!e#ine indicates potentia# 'e"iation! of the project fro! cost 5 schedule baselines integrates Cost, i!e, 5 the wor% done 6 or *cope ,, and can be used to foreca!t future perfor!ance 5 project co!pletion dates 5 costs lead to new forecasted co!pletion costs, Change :equests, 5 other ite!s that will need to be communicate' 6 Co!!unication +anage!ent ,. involves developing these %ey values for each schedule activity, wor% pac%age, or Control 1ccount
Name "lanned Calue 6 "C , Aarned Calue 6AC, 1ctual Cost 61C, "ercentage co!plete Asti!ate o Co!plete 6A C, Asti!ate 1t Co!pletion 6A1C,
Meanin I IComp#ete + -AC J =hat is the esti!ated value of the wor% p#anne' to be done F !c*e'u#e & I IComp#ete + -AC J =hat is the esti!ated value of the wor% actua##y accomp#i!*e' ? =hat is the actual cost incurred for the wor% acco!plished ? I E; 4 -AC J I EAC ? AC J (ro! this point on, how !uch +&:A do we e$pect it to cost to finish the project ? he foreca!t amount remainin to co!plete the release. I -AC 4 CP0 J =hat do we currently e$pect the & 1> project to cost ? his is the foreca!t of tota# !pen' for the release, the anticipated total cost at project co!pletion. AC E ETC -- Initial Asti!ates are flawed AC E -AC < E; -- (uture variance are 1typical AC E 5-AC < E;6 4 CP0 -- (uture Cariance would be typical How !uch did we #DB'A for the & 1> project effort ? his is the planned budget. I -AC ? AEC J How !uch over or under budget do we e$pect to be at the end of the project? I E; ? AC J 8A'1 ICA is over budget, "&*I ICA is under budget I E; ? P; J 8A'1 ICA is behind schedule, "&*I ICA is ahead of schedule. I E; 4 AC J =e are getting X$$$ worth of wor% out of every X1 spent. (unds are or are not being used efficiently. 1 value less than 1.N indicates a cost overrun of the esti!ates. he C"I is the mo!t common#y u!e' co!t< efficiency in'icator. =idely used to foreca!t project co!t! at comp#etion I E; 4 P; J =e are 6only, progressing at $[ of the rate originally planned. he *"I is used : to predict the co!pletion date with the C"I to foreca!t the project co!pletion esti!ates.
#udget 1t Co!pletion 6#1C, Cariance 1t Co!pletion 6C1C, Cost Cariance 6CC, *chedule Cariance 6*C, Cost "erfor!ance Inde$ 6C"I,
Cu!ulative C"I 6 C"I c , *chedule "erfor!ance Inde$ 6*"I,
he "C, AC, 5 1C are used in co!bination to pro"i'e performance mea!ure! of whether or not wor% is being acco!plished as planned at any given point in ti!e. he values of CC and *C tend to decrease as the project reaches co!pletion due to the co!pensating effect of !ore wor% being acco!plished. hese two values can be converted to efficiency in'icator! to reflect the cost 5 schedule perfor!ance of any project. =hen C"I and *"I are #e!! t*an JHHI, !eans a Critical "ath activity too% #on er and needed more time 5 co!t to co!plete 6 #o%er > #o!er ,. If your C"I is below 1.N, then your project is over its budget. If the *"I is below 1.N, then the project is behind schedule. =hen -AC > EAC, all %or/ pac/a e! are comp#ete.
Foreca!tin (orecasts are enerate', up'ate', and rei!!ue' based on Wor/ Performance 0nformation 6 WP0 ,. ="I is about the project1! pa!t performance and any infor!ation that could i!pact the project in the future, such as ETC and EAC. (orecasting is a cost !onitoring tool that helps you predict how !uch !ore !oney you2ll need to spend on the project. (or that you7ll need ETC an' ;AC. Performance Mea!urement 1 !ethod used to relate physical pro re!! ac*ie"e' to co!t !tatu!. he !ethod identifies whether cost variances are due to differences in the value of the wor% being perfor!ed, i.e. too e+pen!i"e or un'er (u' et. (ro! this, it is possible to assess whether a project is a*ea', on or (e*in' budget and whether the trend is li%ely to continue. he calculated CC, *C, C"I, 5 *"I values for =#* co!ponents 6 wor% pac%age or Control 1ccount , are 'ocumente' 5 communicate' to sta%eholders.
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Project Performance Re"ie%! his !ethod co!pare costs perfor!ance over ti!e, schedule activities or wor% pac%age overFunder running budget 6P#anne' ;a#ue,, !ilestones due 5 !ilestones !et. "erfor!ance reviews are meetin ! held to assess schedule activity, wor% pac%age, or cost account !tatu! and pro re!!, by using : ;ariance Ana#y!i!, co!pares actual project perfor!ance to planned or e$pected perfor!ance 6 !ainly CC and *C ,. Tren' Ana#y!i!, e$a!ining project perfor!ance over ti!e to deter!ine if perfor!ance is impro"in or 'eterioratin E;T, co!pares planned perfor!ance to actual perfor!ance. Co!t E!timate! 5 up'ate! 6 sta%eholders are notifie' as needed !ay require a'ju!tment to other aspects of "roject +anage!ent "lan 6 such as e#iminate ri!/! in e!timate! an' re<e!timate , Co!t -a!e#ine 5 up'ate! 6 (u' et up'ate! are c*an e! to an appro"e' Co!t -a!e#ine2 an' on#y re"i!e' in re!pon!e to appro"e' c*an e! in Project ,cope cost variances can be so !e"ere that a re"i!e' co!t (a!e#ine is needed to provide a rea#i!tic (a!i! for perfor!ance !easure!ent Actual Cost )AC+ : Tota# co!t! actua##y incurre' and recor'e' in acco!plishing wor% perfor!ed during a given ti!e period for a schedule activity or =#* co!ponent. 1ctual Cost can so!eti!es be direct #a(our *our! alone, 'irect co!t! alone, or all costs including indirect costs.
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Cost Baseline Project .un"ing e!uirements Per'ormance eports Wor% Per'ormance ,n'ormation, such as : 6Dn,co!pleted deliverables Costs authorised and incurred Asti!ates to co!plete the schedule activities [ physically co!plete of the schedule activities Approve" Change e!uests, fro! the 0nte rate' C*an e Contro# process can include !odifications to the cost ter!s of the contract, "roject *cope, cost baseline, or Cost +anage!ent "lan. Project Management Plan
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Co!t C*an e Contro# ,y!tem 6 see Change Control System ,, defines by t*e proce'ure (y %*ic* t*e Co!t (a!e#ine can (e c*an e'. Performance Mea!urement! Ana#y!i!2 helps to assess the !agnitude of any variances that will invariably occur, see AC above. (orecasting, helps to assess A1C 5 A C, see above "roject "erfor!ance :eviews "roject +anage!ent *oftware Cariance +anage!ent
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Cost Asti!ates 6 updates , 5 Cost #aseline 6 updates , "erfor!ance +easure!ents (orecasted Co!pletion, either a calculated A1C value or A C value, is docu!ented 5 the value co!!unicated to sta%eholders. :equested Changes :eco!!ended Corrective 1ctions, involves a'ju!tin schedule activity budgets 6 special actions ta%en to (a#ance co!t "ariance! , &"1 6 updates , "roject +anage!ent "lan 6updates ,
Perform 9ua#ity Contro# :

Involves !onitoring specific project results to deter!ine whether they comp#y with relevant 9uality *tandards 6 9* , and i'entifyin %ay! 5 re%or/ 6 to e#iminate cau!e! of un!ati!factory performance. =here 91 loo%s at whether !tan'ar'! an' proce'ure! are (ein fo##o%e', 9C loo%s at specific !easure!ents to see if the project an' it! proce!!e! are in contro# 5 correctne!! of t*e %or/ 6. It is during 9C that the height of tables in a !anufacturing process will be !easured, where the nu!ber of bugs per !odule will be !easured. 9uality control helps answer the questions@ ;Is everything all right on the project?; ;Bo I have to spend any additional ti!e or change !y project !anage!ent activities?; ;=ill the project succeed?; 9* includes project proce!!e! 8 pro'uct oa#!. 9C includes ta%ing action to eli!inate causes of unsatisfactory project perfor!ance to meet 9, : Hold periodic in!pection! Ansure authori0ed approaches and processes are fo##o%e' Recommen'e' Correcti"e 8 Pre"enti"e Action +a%e changes or i!prove!ents to wor% and processes Co!plete re%or/ as needed to !eet require!ents +a%e decisions to accept or reject wor% E"a#uate t*e effecti"ene!! of imp#emente' correcti"e action! Rea!!e!! t*e effecti"ene!! of project contro# !y!tem! I!prove quality Repaire' 'efect AFTER appro"a# in 0nte ration C*an e Contro# he tea! need to %now the following ter!s : Pre"ention : %eeping errors out of process vs. 0n!pection : %eeping errors out of hands of the custo!er Attri(ute !amp#in : the result confor!s, or it does not vs. ;aria(#e! !amp#in : the result is rated on a continuous scale that !easures the degree of confor!ity ,pecia# cau!e! : unusual event vs. Common 4 ran'om cau!e : nor!al process variation To#erance! : the result is acceptable if it falls within the range specified by the tolerance vs. Contro# #imit! : the process is in control if the result falls within the control li!its Cau!e an' Effect 4 0!*i/a%a 4 Fi!*(one Dia ram : in 9C, it7s a creative way to loo% at the cau!e! or potentia# cau!e! of a proble! or to loo% bac%ward in 9P, it can be used to e$plore the factors that will result in a 'e!ire' future outcome or to loo% for%ar' helps sti!ulate thin%ing, organi0es thoughts and generates discussion
HContro# C*art! 5 contro# proce!! 6 : to deter!ine whether or not a proce!! is stable or has pre'icta(#e performance. help to deter!ine if a process is %it*in accepta(#e li!its. can be used to monitor project perfor!ance figures such as cost and schedule variances. helps !onitor production and other processes to see if the processes are within accepta(#e #imit! and if there are any actions required. would help the project !anager %now %*et*er to ta/e action or not. serve as a data gathering tool to show when a process is subject to 3!pecia# cau!e "ariation4, which create! an out<of<contro# con'ition i##u!trate *o% a proce!! (e*a"e! o"er time used to assess whether the application of process changes resulted in the desired i!prove!ents if a process is outside acceptable li!its, it should be adjusted the upper 5 lower control li!it are usually set at E4< F !i ma 6 !tan'ar' 'e"iation , for cost F schedule variances, is QF- 1N [ used to !onitor project perfor!ance, i.e. cost 5 schedule variances, volu!e 5 frequency scope changes, error in project docu!ents. has three i!portant lines on it: t*e mean 6or the average of all data points,, an upper contro# #imit and a #o%er contro# #imit. 1ny ti!e you find a data point that2s either above the upper control li!it or below the lower control li!it, that tells you that your process is out of control. ,e"en "a#ue! on one !i'e of t*e mean in a contro# c*art in'icate a pro(#em %it* t*e proce!! t*at i! (ein mea!ure'. F#o% C*art : help analyse *o% pro(#em! occur!, help anticipatin pro(#em! *hows how a processFsyste! flows 5 how the ele!ents interrelate In 9C to analyse qua#ity pro(#em In 9P to analyse potentia# future qua#ity pro(#em 8 'etermine 9, $i!to ram : in which each colu!n of a bar chart represents an attribute or characteristic of a proble!. helps to identify the cause of proble! in a process by the shape 5 width of the distribution Pareto C*art : a *i!to ram, ordered by frequency of occurrence, which shows how many 'efect! were generated by typeFcategory of i'entifie' cau!e used pri!arily to i'entify 5 e"a#uate non-conformitie! ran% ordering is used to ui'e Correcti"e Action helps focus attention on the mo!t critica# i!!ue! prioriti!e potentia# cau!e of the proble!s !eparate! t*e critica# fe% from t*e uncritica# many often represents the !ost co!!on !ource! of 'efect!, the highest occurring type of defect, or the !ost frequent reasons for cu!tomer comp#aint!, etc. focus on relatively s!all nu!ber of causes which typically produce a large !ajority of the proble!s or defects. his is co!!only referred to as the RH4KH princip#e, where TN percent of the proble!s are due to -N percent of the causes. "areto diagra!s also can be used to !ummari3e a## type! of 'ata for RH4KH ana#y!e!. Run C*art : shows the *i!tory 8 pattern of "ariation shows tren'! in a process, variation, declines, 5 i!prove!ents in a process over ti!e Tren' Ana#y!i! is perfor!ed using this chart, 5 used to !onitor : o Tec*nica# performance, i.e. how !any errors have been identified, how !any re!ain uncorrected ? o Co!t 8 !c*e'u#e performance, i.e. how !any activities per period were co!pleted with significant variances ? ,catter Dia ram *hows the pattern of relationship between - variables. Bependent variables versus independent variables are plotted. T*e c#o!er t*e point! are to a 'ia ona# #ine2 t*e more c#o!e#y t*ey are re#ate' 5 *a"e a !tron re#ation!*ip 6 and thus one !easure!ent has a strong relationship 6 correlation , to the other@ therefore, you would be able to prove that one ite! affects the other closely. If the points are far each other 6 no correlation , no relationship between the two ite!s ,, you need to review the ;Cause-and-Affect; Biagra! or ;brain-stor!ing; session. 0n!pection : is the e$a!ination of a wor% product to deter!ine whether it conform! to !tan'ar'! the result of this include !easure!ents also called re"ie%!2 peer re"ie%!2 au'it!2 %a#/t*rou *! used to "a#i'ate 'efect repair! Recommen'e' Correcti"e Action 1ctions ta%en, as a result of a 9C !easure!ents that indicates the process e$ceeds established para!eters, to bring e$pected perfor!ance in line with the "roject +anage!ent "lan. :eco!!ended Corrective 1ction is anything that needs to be done to (rin t*e !e##er in comp#iance %it* t*e term! of t*e contract. Recommen'e' Pre"enti"e Action 1ction ta%en to prevent a condition that !ay e$ceed established para!eters 6 thus negative consequences ,, to (rin t*e project into comp#iance %it* t*e project p#an. Defect is where a co!ponent 'oe! not meet its require!ents or specifications, and needs to be repaired or replaced I the repaired ite!s is reinspected and will be either accepted or rejected, and rejected ite!s !ay require further defect repair J. is identified 5 reco!!ended for repair by 9C depart!ent.
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+uality Management Plan
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Cau!e an' Effect 4 0!*i/a%a 4 Fi!*(one
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9ua#ity Contro# Mea!urement!, represent the
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+uality Metrics +uality Chec%)lists &"1 Dia ram Contro# E F#o% E Pareto E Run C*art! result of 9C activities that are fe' (ac/ to 9A. :eco!!ended 5 Calidated Befect :epair :eco!!ended Corrective 5 "reventive 1ction :equested Changes 9uality #aseline 6 updates , &"1 6 updates , : Co!pleted chec%-lists >essons learned doc Calidated Beliverables "roject +anage!ent "lan 6 updates ,
Histogra! Wor% Per'ormance ,n'ormation, i.e. technical perfor!ance !easures, project deliverables, ,catter Dia ram co!pletion status, and i!ple!entation of required corrective actions. *tatistical *a!pling, involves choosing part of a popu#ation of interest for inspection. Approve" Change e!uests, such as revised wor% !ethods and revised schedule. Inspection Deliverables Befect :epair :eview, to ensure that product defects are repaired 5 brought into co!pliance with require!ents or specifications.
Mana e Project Team :

Trac/in 4 mea!urin team mem(er performance2 pro"i'in fee'(ac/2 re!o#"in i!!ue!2 8 coor'inatin c*an e! to en*ance project performance. his process is dealing with conf#ict and moti"ation. his process is comp#icate' when tea! !e!bers are accountable to (ot* a functional !anager and the project !anager within a matri+ or ani3ation. he project !anager should : observes tea! behaviour !anage 5 resolve conflict. appraise tea! !e!ber perfor!ance update *taffing +anage!ent "lan. !aintain issue log.
Project Performance Apprai!a#! he project !anager can adjust the project to handle c*an e! in performance based on these apprai!a#!, to include input of co-wor%ers and subordinates as well as supervisors 6 FSH<'e ree fee'(ac/ principal ,. T*e project mana er %i## co##ect information from team mem(er!1 !uper"i!or! %*en Project Performance Apprai!a#! are comp#ete'. Team Performance A!!e!!ment i! 'one (y t*e project mana er in or'er to e"a#uate an' impro"e t*e effecti"ene!! of t*e team. &bjective of this process can include rec#arification of roles 5 responsibilities, individual trainin p#an, 5 to establish !pecific oa#! for future ti!e periods. Recommen'e' Correcti"e Action! his !ay include staffing issues, additional training, 5 disciplinary actions. *taff changes can include : !oving people to different assign!ents outsourcing so!e wor% replacing tea! !e!bers who leave the project !anager deter!ines how 5 when to give out recognition 5 rewards based on tea!7s perfor!ance. Recommen'e' Pre"enti"e Action! his process can be developed to reduce the probability andFor i!pact of proble! before they occur. cross-training in order to reduce proble!s during tea! !e!ber absences additional role clarification added personal ti!e in anticipation of e$tra wor% Po%er of t*e Project Mana er : 7e itimate 6 (or!al , - derived fro! for!al position 6 3Bo the wor% because I2! in charge W4 , Pena#ty 6 Coercive , - predicated on fear Re%ar' - involves positive reinforce!ent and ability to award so!ething of value. "roject often needs its own rewards syste! to affect e!ployee perfor!ance. Dsed correctly, bring the tea!2s goals and objectives in line with each other and with the project. Re%ar' !*ou#' (e %it*in t*e company1! ru#e. E+pert - held in estee! because of special %nowledge or s%ill 6requires ti!e, or e+perti!e 8 e+perience Referent - ability to inf#uence others through charis!a, personality, etc. 6 3 he C" has put this project at the top of his list W =e2ll do the wor% on this project first. 3 , his process can include :
T*e (e!t form! of po%er are enera##y Re%ar' an' E+pert >eadership style : Birecting 6 telling others what to do ,, during "roject Initiating (acilitating 6 coordinating the input of others , , during "roject A$ecuting Coaching 6 instructing others , , during "roject A$ecuting *upporting 6 providing assistance along the way , , during "roject A$ecuting 1utocratic 6 !a%ing decisions without input , Consultative 6 inviting ideas fro! others , Consensus 6 proble! solving in a group with decision-!a%ing based on group agree!ent , Conf#ict Mana ement Con'ition! #ea'in to conf#ict 1!biguous roles, wor% boundaries, responsibility and authority Inconsistent or inco!patible goals, when the individual or the units define and establish their own !issions and purposes within the organi0ation
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Co!!unication proble!s, !isinterpretation, !isunderstood, !issed delivery date, etc Bependence on another party 6 activities ,resources, etc , *peciali0ation or differentiation, due to professional egos 8eed for joint decision !a%ing, due to different opinions 5 point of views 8eed for consensus, when project tea!s having a diverse !i$ of tea! !e!bers with divergent talents, bac%grounds, and nor!s !ust agree a!ong the!selves #ehaviour regulations, as individuals tend to resist tight boundaries placed on their actions. *uch situations !ay involve safety and security concerns 6policies, rules and procedures, Dnresolved prior conflicts, the failure to !anage and deal with conflict quic%ly leads to !ore serious proble!s in the future
;a#ue of Conf#ict Po!iti"e A!pect! Biffuses !ore serious conflicts (osters change and creativity as new options are e$plored Anhances e$co!!unication if both parties are co!!itted to !utual gain Increases perfor!ance, energy, and group cohesion #alances power and influence if collaborative proble! solving techniques are e!phasi0ed Clarifies issues and goals Ne ati"e A!pect! Can lead to !ore hostility and aggression Besire to ;win; bloc%s e$ploration of new opportunities Inhibits co!!unication@ relevant infor!ation never shared Causes stress@ creates in unproductive at!osphere +ay cause loss of status or position power when both parties ta%e it as a contest of wills and strive for a win-lose outco!e :eal issues overloo%ed as positions beco!e confused with personalities
Conflict is unavoidable because of the 8ature of projects trying to address the needs and require!ents of !any sta%eholders >i!ited power of the project !anager 8ecessity of obtaining resources fro! (unctional +anagers Conflict can be a"oi'e' through the following techniques : 1. Infor!ing the tea! of : -. .. A$actly where the project is *ea'e' "roject constraints and o(jecti"e! he content of "roject Charter 1ll %ey decision and changes
Clearly assigning wor% %it*out a!biguity or o"er#appin responsibilities +a%ing wor% assign!ents intere!tin and c*a##en in
*ource of conflict in order of frequency : 1. schedules -. project priorities .. resources /. technical opinions H. ad!inistrative procedures L. cost R. personality - it beco!es personal if the root cause of the proble! is not resolved. Conflict is best resolved by those in"o#"e' in the conflict. he project !anager should generally try to resolve proble!s and conflict as long as he or she has aut*ority over those in conflict or the issues in conflict. If not, the !pon!or or functiona# mana er! !ay be called in to assist. here is one e$ception. In instances of professional and social responsibility 6brea%ing laws, policies, ethics, the project !anager !ust go over the head of the person in conflict. F !tep! of pro(#em !o#"in : 1nalyse the situation F docu!ent the situation Bevelop alternatives with the tea! 'o to !anage!ent Proce!! of !o#"in pro(#em! : Befine the cause of proble!s 1nalyse the proble! Identify solutions I!ple!ent a decision :eview the decision and confir! that the decision solved the proble! Conf#ict Mana ement Tec*nique! Conflict !anage!ent techniques include : 1. ,timu#atin conf#ict : 1ccept conflict as desirable on certain occasions. #ring new individuals into an e$isting situation.
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:estructure the organi0ation. Introduce progra!s designed to increase co!petition. Introduce progra!!ed conflict
-. Re!o#"in !tructura# conf#ict! - focus on the structural aspects of the project organisation that !ay be causing the conflict : "rocedural changes ) changing wor% procedures "ersonnel changes ) transfer individual into or out of the project 1uthority changes ) clarify or alter lines of authority 5 responsibility >ayout changes ) rearrange wor% space :esources changes ) increase resources .. 0nterper!ona# conf#ict re!o#ution tec*nique! - focus on the hu!an interaction in a conflict situation. he ;best; approach would be the one that both !ini!ise the obstacles to project co!pletion 18B helps to develop cohesive 5 effective project tea!s. L Conflict +anage!ent *tyles : ,ty#e (orcing De!cription "ushes one view-point at the e$pense of others@ offers only winlose solutions Effect Hard feelings !ay co!e bac% in other for!s I %in 4 #o!e J T*oma!<Ki#mann mo'e# when you7re sure that you7re right when an e!ergency situation e$ist 6 7do7 or 7die7 , when sta%es are high and issues are i!portant when you are stronger 6 never start a battle you can7t win , to gain a status or de!onstrate position power when the acceptance is not i!portant to reach an overarching goal to create obligation for a trade-off at a later date when sta%es are low and liability is li!ited to !aintain har!ony, peace, 5 goodwill when any solution will be adequate when you7ll lose anyway to gain ti!e when you can7t win or the sta%es are low when the sta%es are high but you aren7t ready yet to gain status or de!onstrate position power to gain ti!e to discourage your opponent to !aintain neutrality or reputation when you thin% the proble! will go away by itself for te!porary solutions to co!ple$ issues for bac%up if collaborations fails when both parties need to be winners when you can7t win or don7t have enough ti!e when others are as strong as you are to !aintain your relationship with your opponent when you7re not sure you are right when you get nothing if you don7t when goals are !oderately high when you both get at least what you want and !aybe !ore to reduce overall project costs to gain co!!it!ent 5 create a co!!on power base when there is enough ti!e, and s%ills are co!ple!entary when you want to preclude later use of other !ethods to !aintain future relationships when there is !utual trust, respect, and confidence *ee Collaborating
*!oothing F 1cco!!odating
A!phasi0es areas of agree!ent rather than areas of difference
"rovides only short-ter! solution
=ithdrawing F 1voiding
:etreats fro! an actual or potential Boes not solve the proble! conflict situation
Co!pro!ising
*earches for and bargains for "rovides definitive resolution I solutions that bring so!e degree of #o!e 4 #o!e J satisfaction to all parties
Collaborating
Incorporates !ultiple viewpoints and insights fro! differing perspectives@ leads to consensus and co!!it!ent
"rovides long-ter! resolution
Confronting F reats conflict as a proble! to be "roble! *olving solved by e$a!ining alternatives@ requires give-and-ta%e attitude and open dialogue
"rovides ulti!ate resolution I %in 4 %in J
/. C*oo!in a conf#ict re!o#ution approac*, which involves: a. 1nalysing and evaluating conflict resolution techniques ho!as-<il!ann !odel 6 see table above , : Forcin , Wit*'ra%a#, 5 ,moot*in are #e!! effecti"e because they fail to deal with the (a!ic cau!e of the conflict. #ut in so!e circu!stances, these !ay be useful because they i!pose a period of peace. (illey7s !odel 6 based on concern for personal goals and relationships ,: 1. %in<#o!e style F ;tough battler;6 high concern for personal goals and low concern for relationships , -. yie#'<#o!e style F ;friendly helper; 6 low concern for personal goals and high concern for relationships , .. #o!e<#ea"e style F ;conflict is useless, hopeless; 6 low concern for both personal goals and relationships , /. compromi!e style F ;try to find a position where each side benefits 5 ends up with so!ething; 6 !oderate concern for both personal goals and relationships , H. inte rate' style F ;proble! solver; 6 high concern for both personal goals and relationships , 1., -., and .. generally lead to project fai#ure. /. and H. generally lead to project !ucce!!. b. Dnderstanding the dyna!ics of handling two-party conflicts c. Choosing the best conflict resolution approach 6negotiating to solve proble!s by using %in<%in strategy, Forcin 2 !moot*in 2 %it*'ra%in 2 majority ru#e an' t*e !uperor'inate oa# techniques are generally not effecti"e in resolving conflicts because they fail to deal with the rea# cau!e of the conflict. #ut, so!eti!es, they !ay be appropriate when it is i!portant to create a period of peace and *armony. Compromi!e, me'iation and ar(itration are usually used in #a(our<mana ement disputes. In co!pro!ising, each party
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i"e! up !omet*in and neit*er et! e+act#y %*at it %ant!. In arbitration, both parties !ay be un*appy with the arbitrator or with the (in'in 'eci!ion. he best solution for !anaging project conflicts is the confrontin F pro(#em !o#"in , or ne otiation, which ai!s for a %in-%in !trate y, which is best for both the project and the partie! involved. Confrontin 4 Pro(#em ,o#"in 5Ne otiation6 Approac* Its goal is to arrive at an acceptable agree!ent that resolves conflicts or disagree!ents and helps !ove the project ahead. "roject !anagers !ay use the following si!ple three-step approach : 1. Befine the proble!, by following these steps : 1c%nowledge that conflict e$ists Astablish co!!on ground or shared goals through effective co!!unication *eparate the proble! fro! the people. -. A$plore and evaluate alternatives - the alternatives should be analysed and ran%ed by using an o(jecti"e criteria, not opinions and attitudes .. *elect 5 i!ple!ent the best alternative Tactic! for Minimi3in Conf#ict +ini!i0ing Conflict with *enior +anage!ent 6#oss, : "lace yourself in boss7s shoes - understand and be sy!pathetic to the challenges, proble!s and pressures of senior !anage!ent 1nalyse boss7s thin%ing pattern - try to be consistent with the boss7s way of thin%ing 6analytical or intuitive,. Bon7t ta%e only proble!s to the boss, ta%e solutions as well - e$plore alternatives and suggest reco!!endations@ try to !a%e the boss7s job easier. <eep the boss infor!ed of your progress and plans - it will help the boss be your effective !entor. 1lso you can get better support fro! your boss >isten to and observe your boss Consult the boss on policy, procedures and criteria - it will help clarify !anage!ent philosophy and your boundaries related to ad!inistrative issues Bon7t stea!roll the boss - be patient and give ti!e for thin%ing and evaluating your propositions@ ti!ing is vital +ini!i0ing Conflict with "roject ea! +e!bers 6*ubordinates, : Biscover professional and personal goals of your tea! !e!bers - !atch tas%s to their interests and personal goals. his is a %ey to !otivation. Clarify your e$pectations Befine contra1 para!eters Bevelop a tolerance for failure to encourage creativity 'ive positive feedbac% - avoid criticis!s. =hen you need to point out a !ista%e, balance your co!!ents with positive feedbac% 'ive ti!ely praise and recognition +ini!i0ing Conflict with Nther "roject and (unctional +anagers 6"eers, : Help your peers !eet their personal and professional goals Astablish a cooperative cli!ate - the law of reciprocity suggests that if you are cooperative with your peers, they are !ore li%ely to collaborate with you. 'ive advance notice of any help you need fro! peers Cultivate infor!al co!!unication channel - have lunch together, develop social encounters, and discuss topics other than daily wor% reat the! the way you want to be treated +ini!i0ing Conflict with Clients and Dsers 6Clients, : #e supportive towards the client representative +aintain close contact with the client 1void giving surprises <eep in touch at all levels Astablish infor!al relationships as well Conduct regular project status !eeting Moti"ation! L core phases in the !otivational process : identify the person7s needs create drives select goal-directed behaviour perfor! the tas% receive feedbac% reassess needs 5 goals Co!parisons 1!ong Content heories of +otivation Needs Theories Motivator-Hygiene Theories Achievement Motivation Theory Needs Hierarchy ( Maslow ) ER Theory ( Her!"erg ) ( Mc#lelland$s ) Self-Actualisation --| |--> Growt ------------> !otivators "stee# --------------| ( a$vance#ent% growt % ac ieve#ent ) ------> &ee$ for Ac ieve#ent | Social'Affiliation -----> (elate$ness --| |-----> &ee$ for Power |----> )ygienes Safety'Security -----| | ( *o+ security% salary% |--> ",istence ----| working con$itions% grou- #e#+ers i- ) --> &ee$ for Affiliation P ysiological -------| (actors upon which !otivation depends : project culture 6 openness, tea!wor%, effective co!!unication, clear understanding of plans 5 e$pectations , project reward syste! 6 recognition, pro!otions, re!uneration , wor% content environ!ent F wor%ing condition
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supervision 6 well-!anaged without being over-!anaged , previous success co!petition believing in what you do Moti"ationa# factor! re#ate' to project ta!/!4jo(! +anagers can design jobs with built-in potential !otivators by incorporating Her0berg7s essentials of a ;good; job : Birect feedbac% - pro!pt and objective infor!ation about individual perfor!ance in daily wor% Client relationship - an individual custo!er to be served inside or outside the organi0ation 8ew learning - continued opportunity for acquiring s%ills that are valued by the e!ployee *cheduling - opportunity to pace one7s own wor% and to ti!e one7s own wor% brea%s within the constraints set by !anage!ent deadlines Dnique e$pertise - so!e job aspects that leave roo! for doing one7s ;own thing; Control over resources - so!e degree of control, such as providing an independent !ini-budget. Birect co!!unications authority - an open co!!unications syste! with direct access to relevant infor!ation centers "ersonal accountability - personal inspection of output equates the level of accountability for wor% perfor!ance with personal co!petence. Moti"ationa# factor! re#ate' to per!ona# 'ri"e! (actors that play a positive or a negative role in !otivating participants in a project : QTurn On!Q &pportunities for intellectual growth and advance!ent *ense of acco!plish!ent or achieve!ent Cariety of projects F assign!ents &pen co!!unication and access to infor!ation :ecognition and rewards 6!onetary and otherwise, *tatus and fle$ibility Birection and support for !eeting project goals Anthusiastic project !anager Cohesive, har!onious tea!s High levels of trust and respect participants QTurn Off!Q >ac% of challenging assign!ents "ersonal acco!plish!ents not valued :outine, boring jobs F tas%s "oor co!!unication, infor!ation not readily accessible 8o recognition for good perfor!ance :estrictive co!pany policies and ad!inistration >ac% of supportFresources 8egative attitude by project !anager 8o tea! spirit >ac% of trust a!ong project
Moti"ationa# factor! re#ate' to project mana er! "roject !anagers play a very i!portant role in !otivating project tea! !e!bers and others involved in the project : Dse appropriate !ethods of reinforce!ent - recogni0e e!ployees when they do good wor%. Ali!inate unnecessary threats 5 punish!ents. 1ssign project personnel so!e responsibility and hold the! accountable - giving people appropriate responsibility is always a good !otivator. Ancourage e!ployees to set their own goals - people tend to %now their own capabilities and li!itations better than anyone else. :elate tas%s to personal and organi0ational goals - e$plain the ;big picture; to project sta%eholders and show the! how it relates to their personal goals. Clarify e$pectations and ensure that project tea! !e!bers understand the! - this avoids the frustration of not being sure what is e$pected. Ancourage project participants to engage in nove1 and challenging activities - provide opportunities for project participants to try new tas%s. his fosters creativity and innovation Bon7t eli!inate an$iety co!pletely - a certain leve1 of an$iety is funda!ental to !otivation. *o!eti!es the best wor% is done under pressure. Bon7t believe that ;li%ing; is always correlated with positive perfor!ance - a tas% can be intrinsically boring, yet the consequences are highly !otivating. Individuali0e your supervisor - to !a$i!i0e !otivation, treat people as individuals. "rovide i!!ediate and relevant feedbac% - this will help project tea! !e!bers i!prove their perfor!ance in the future. Infor! e!ployees how they !ight i!prove their perfor!ance with infor!ational feedbac%. A$hibit confidence in your project tea! - this results in positive perfor!ance. *how interest in each tea! !e!ber and their %nowledge - people need to feel i!portant and personally significant. Ancourage individuals to participate in !a%ing decisions that affect the! - this increases their acceptance and hence their co!!it!ent to i!ple!ent those decisions. "eople who have no control over their destiny beco!e passive. Astablish a cli!ate of trust and open co!!unication - lac% of trust and open co!!unication are co!!on obstacles to high !otivation. +ini!i0e the use of statutory position powers - try !anaging de!ocratically, encouraging input and participation. Inappropriate use of position power turns people off. >isten to and deal effectively with e!ployee co!plaints - handle proble!s before they beco!e blown out of proportion. "eople are !otivated when interests are loo%ed after. A!phasi0e the need for i!prove!ents in perfor!ance, no !atter how s!all - frequent encourage!ent to i!prove perfor!ance in the early stages and throughout the project life cycle will yield continuous i!prove!ent as confidence and proficiency are obtained. Be!onstrate your own !otivation through behaviour and attitude - be positive: it7s contagious. =al% your tal% and set e$a!ples. Critici0e behaviour, not people - this is !ore effective in resolving conflict. =hen critici0ed personally, people beco!e defensive, which reduces objectivity. Moti"ationa# factor! re#ate' to or ani!ationa# c#imate 4 en"ironment op !anage!ent !ust i!ple!ent policies li%e the following : +a%e sure that acco!plish!ent is adequately recogni0ed - people need to feel i!portant. 1lso re!e!ber that what gets rewarded gets done. "rovide people with fle$ibility and choice - per!it e!ployees to !a%e decisions when possible. "rovide an appropriate !i$ of e$trinsic rewards and intrinsic satisfaction - e!ployees need to obtain personal satisfaction in addition to e$trinsic rewards. Ansure that the reward syste!s are equitable to everyone wor%ing on the project. Besign tas%s and environ!ents to be consistent with e!ployees7 needs - different people need different activities. Dse good co!!on sense in
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!a%ing the proper ;fit.; +a%e sure that effort pays off in results - if effort does not result in acco!plish!ent, effort will be withheld. #e concerned with short-ter! and long-ter! !otivation - people should receive reinforce!ent in short-ter! and long-ter! assign!ents.
Moti"ationa# T*eory: Content 8 Proce!! T*eorie! Content: 3=hat4 energi0es, directs behaviour ) 1. +aslow2s Hierarchy of 8eeds heory 6"hysiological, *afety, *ocialF#elonging, Astee!, *elf-1ctualisation, -. Hert0berg2s +otivatorFHygiene heories 6+otivator: :esponsibility, *elf-1ctualisation, "rofessional growth, :ecognition @ Hygiene: =or%ing conditions, *alary, "ersonal life, :elationships at wor%, *ecurity , *tatus, "rocess: 3How4 personal factors influence behaviour 1. +c'regor2s heory Y and heory M 6Y: 1ssu!es people lac% a!bition, disli%e responsibility, are inherently self-centered and are not very bright@ !otivate by reward and punish!ent. M: 1ssu!es people beco!e la0y wFo recognition, will accept responsibility, can beco!e self-!otivated and e$ercise self-control@ !otivate by re!oving obstacles and providing self-directed environ!ent., -. &uchi2s heory ZFEapanese heory 6 focus on tea!, co!pany@ usually lifeti!e e!ploy!ent, collective decision !a%ing , +otivating people is best done by : :ewarding the! >etting the! grow Ot*er Moti"ationa# T*eorie!: -e*a"iouri!m ) people behaviour can be !odified through !anipulation of rewards and punish!ents E+pectancy T*eory ) +otivation is e$plained in ter!s of e$pectations that people have about 61, their a(i#ity to perform effecti"e#y on the job, 6-, the re%ar'! they !ight obtain if they do perfor! effectively and 6., the value or 'e ree of !ati!faction they anticipate fro! those rewards. M-O ) +ore support to tea!, not !ore power 6re!ain to "+, 7ea'er!*ip T*eorie!: McGre or ? heory Y 6 e!ployee lac% a!bition ,need to be watched all the ti!e , and heory M 6 org structure are responsible for !otivation , Tannena(aum<,c*mi't mo'e# ) Continuu! of leadership styles between the autocratic and participative styles -#a/e an' Mouton ) ref to !anagerial grid 6Concern for "eople Cs Concern for "roduction,, whereas 1,1 is laisse0 faire !anage!ent, 1,U is Country Club !anage!ent, U,1 is as% oriented !anage!ent, H,H is Co!pro!ise !anage!ent and U,U is tea! !anage!ent.
Mana ement ,ty#e! 1. 1uthoritarian : >ets individuals %now what is e$pected of the! -. Co!bative : Aager to fight or be disagreeable over any situation .. Conciliatory : (riendly and agreeable /. Bisruptive : ends to disrupt unity and cause disorder H. Athical : Honest and sincere L. (acilitating : Boes not interfere with day-to-day tas%s, but is available for help and guidance when needed R. Inti!idating : :epri!ands e!ployees for the sa%e of a ;tough guy; i!age T. Eudicial : 1pplies sound judge!ent U. "ro!otional : Cultivates tea! spirit@ rewards good wor%@ encourages subordinates to reali0e their full potential 1N. *ecretive : 8ot open or outgoing in speech, activity, or purpose Mana ement ,/i##! 1. >eading -. Co!!unicating .. 8egotiating /. "roble! *olving H. Influencing the &rgani0ation : Astablishing direction, aligning people, and !otivating and inspiring : he e$change of infor!ation in a variety of di!ensions : Conferring with others in order to co!e to ter!s or reach an agree!ent : 1 co!bination of proble! definition and decision !a%ing : he ability to get things done based on an understanding or the for!al and infor!al structures of the organi0ation Function! of t*e Project Mana er
Ro#e! of t*e Project Mana er
Integrator Co!!unicator ea! >eader Becision +a%er Cli!ate CreatorF#uilder
"lanning &rgani0ing >eading Controlling
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&"1, i.e. re%ar'in policies 5 procedures, bonus structures, certificates of appreciation, etc. Project Sta'' Assignments ) list of !e!bers to be e"a#uate'. oles & esponsibilities ) a list of staff7s roles 5 responsibilities used to monitor 5 e"a#uate performance. Project (rgani-ation Charts ) reportin re#ation!*ip chart. Sta''ing Management Plan ) lists the time perio'! that tea! !e!bers are e$pected to wor%, including info such as trainin p#an!2
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&bservations 5 Conversation 6 %eep in touch with :equested Changes, i.e. staffing changes. the %or/ 5 attitu'e! of tea! !e!bers ,, i.e. *taffing issues, that !ay cause !c*e'u#e F co!t 3*o% t*in ! are oin 4 to be e+ten'e', !ust be processed through 0CC "roject "erfor!ance 1ppraisals - e"a#uation of the perfor!ance of e!ployees by those that supervise the!. Issues >og - the objective of the log is to help the project tea! monitor i!!ue! unti# c#o!ure. he issue resolution can addresses these obstacles : differences of opinion situation to be investigated e!erging F unanticipated responsibilities that need to be assigned to so!eone on Recommen'e' Correcti"e Action!2 such as mo"in peop#e to 'ifferent a!!i nment!2 out!ourcin !ome %or/2 an' rep#acin team mem(er! %*o #ea"e2 'etermine! *o% an' %*en to i"e out reco nition an' re%ar'!. Recommen'e' Pre"enti"e Action!, such as cro!!<trainin 6 during tea! !e!ber absence ,, a''itiona# ro#e c#arification, 5 a''e' per!ona# time in anticipation of e+tra %or/. &"1 6 Dpdate , :
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certification requirement, 5 comp#iance i!!ue!. /eam Per'ormance Assessment ) 6in,for!al assess!ent. Wor% Per'ormance ,n'ormation ) collection of tea! !e!ber infor!ation : !eeting participation, follow-up on action ite!s, 5 co!!unication clarity. Per'ormance eports ) reports indicating tea! perfor!ance. hese perfor!ance include results fro! ,c*e'u#e Contro#2 Co!t Contro#2 9C2 ,cope ;erification2 8 Procurement Au'it!. the project tea!. Conflict +anage!ent - conflict should be addressed ear#y 5 usually in private, using a 'irect and co##a(orati"e approach. Input to &rgani0ational "erfor!ance 1ppraisals >essons learned docu!entation, can include: o "roject organisation charts o 'round rules, conflict !g!t technique o "roc for virtual tea!s, co-location o *pecial s%ills F co!petencies o Issues 5 solutions
"roject +anage!ent "lan 6 Dpdates , - this !ay include : new project tea! !e!ber roles additional training reward decision
Performance Reportin :
Collecting 5 distributing performance information, !tatu! reportin , pro re!! mea!urement!, 5 foreca!tin to !ta/e*o#'er!. Continually !easure project perfor!ance using variance or trend analysis, Aarned Calue Hold perfor!ance reviews Identify 5 analyse trends and variances
he %ey thing here is to reali0e that perfor!ance is reporte' a ain!t t*e Performance Mea!urement -a!e#ine! 5 PM- 6 set in the "roject +anage!ent "lan. :e!e!ber that you should have "erfor!ance +easure!ent #aselines that can be !easured, and that you are reporting on Cost, *chedule, *cope and 9uality, not just *chedule. :eports help the tea! %now where they need to recommen' and imp#ement correcti"e action. Included in "erfor!ance :eporting is the need to loo% into the future. (orecasts can help 'etermine recommen'e' correcti"e action needed from t*e team an' from t*e !pon!or. &ther reports !ay include ris% reserve reports and reports for other %nowledge areas. =hen co!pleted, infor!ation distribution should result in: he issuing of reports fro! other %nowledge areas (eedbac% fro! those who received the reports >essons learned :equested changes to the "roject +anage!ent "lan and Co!!unications +anage!ent "lan :eports, forecasts, requested changes and corrective actions and lessons learned docu!entation Performance Report!, which includes @ ,tatu! Report, describe where the project now !tan'! regarding "+# in cost, schedule, scope, 5 quality Pro re!! Report, what has been comp#ete', a regular report to senior personnel, sponsors or sta%eholders su!!ari0ing the progress of a project including %ey events, !ilestones, costs and other issues. Tren' Report, e$a!ining the project re!u#t o"er time to see if perfor!ance is i!proving or not Foreca!tin Report, predict future project status or perfor!ance 6 Asti!ate 1t Co!pletion and Asti!ate o Co!plete , ;ariance Report, co!paring actua# results to (a!e#ine Earne' ;a#ue, integrating scope, cost, 5 schedule !easures to assess project perfor!ance 7e!!on! #earne'
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Wor% Per'ormance ,n'ormation Per'ormance Measurements (orecasted Co!pletion +uality Control Measurements
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Infor!ation "resentation ools, i.e. software pac%age, "" , spreadsheets "erfor!ance Infor!ation 'athering 5 Co!pilation
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Performance Report! :equested Changes :eco!!ended Corrective 1ctions &"1 6 Dpdates ,
Project Management Plan, !ainly Performance *tatus :eview +eetings, a regular !eeting to e$change Mea!urement -a!e#ine 5PM-6 infor!ation about the project. Approve" Change Deliverables e!uests i!e 5 Cost :eporting *yste!s
Mana e ,ta/e*o#'er! :
+anaging communication! to !ati!fy t*e requirement! of2 an' re!o#"e i!!ue! %it*2 project !ta/e*o#'er!. Acti"e#y mana in !ta/e*o#'er! increase the li%elihood that the project will not veer off trac% due to unre!o#"e' !ta/e*o#'er i!!ue!, enhances the ability of persons to operate synergistically, and #imit! 'i!ruption! 'urin t*e project. he "roject +anager is re!pon!i(#e for sta%eholder !anage!ent. 0!!ue! 7o ! Issues DO NOT usually rise to the i!portance of beco!ing a project or activity, but are usually a''re!!e' in order to maintain oo'2 con!tructi"e %or/in re#ation!*ip! amon "ariou! !ta/e*o#'er!2 inc#u'in team mem(er!. 1n issue is c#arifie' and stated in a way that can be re!o#"e'. 1n owner is assigned and a target date is usually established for closure. )nre!o#"e' i!!ue! can (e a major !ource of conf#ict an' project 'e#ay!. Re!o#"e' 0!!ue! 1s sta%eholder require!ents are i'entifie' and re!o#"e' 5 fina# re!o#ution! 6 , the issues log will docu!ent concerns that have been addressed and closed. A$a!ples : Custo!ers agree to follow-on contract, which ends protracted discussion of whether requested changes to project scope are within or outside the scope of the current project. !ore staff is added to the project, thus closing the issue that the project is short on required s%ills.
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negotiations with functional !anagers in the organisation co!peting for scarce H: end in a !utually satisfactory solution before causing delays. issues raised by board !e!bers about the financial viability of the project have been answered, allowing the project to !ove forward as planned.
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Communications Management Plan &"1, i.e. the "roject +anager should address and resolve the project issues with the appropriate project sta%eholders.
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Co!!unications +ethods, i.e. !eeting, phone, e-!ail, etc. Issues >ogs : is a tool that can be used to 'ocument and monitor the resolution of issues. Re!o#"e' 0!!ue!
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1pproved Change :equests ) aut*ori!e' changes that !ay affect sta%eholder co!!unications. 1pproved Corrective 1ctions ) aut*ori!e' actions ta%en to align e$pected future project perfor!ance with the plan. &"1 6 updates , "roject +anage!ent "lan 6 updates ,
Ri!/ Monitorin 8 Contro# :

identifying, analysing, 5 planning for ne% ri!/! 5REMEM-ER: Ri!/ i'entification i! 'one 'urin Ri!/ 0'entification a! %e## a! Ri!/ Monitorin an' Contro##in A6 trac%ing i'entifie' 8 %atc* #i!t ri!/!, re-analysing e$isting ris%s, !onitoring trigger conditions for contin ency p#an !onitoring re!i'ua# ri!/!, e$ecuting :is% :esponse plans, 5 evaluating their effectiveness throughout the project life cycle. his process is to deter!ine if : "roject assu!ption is still "a#i' :is% has c*an e fro! its prior state "roper ris% !anage!ent policies 5 procedures are being fo##o%e' Contingency reserves of cost or schedule should be !odified in line with the ris% of the project
Can involve c*oo!in a#ternati"e !trate ie!, e+ecutin a contin ency or fa##<(ac/ p#an, ta%ing corrective action, 5 mo'ifyin Project Mana ement P#an Wor/aroun'! =hereas contingency responses are developed in a'"ance, wor%arounds are unp#anne' re!pon!e! developed to deal with the occurrence of unanticipated ris% events. Mou don7t develop a wor%around for an i'entifie' ri!/!, because a wor%around is an unplanned response to a ris% that is occurring. Ne% ri!/! =hen a ris% is identified that is NOT in the ris% register, first you need to deter!ine what the ris% entai#! and the impact to the project, then deter!ine what actions you will ta%e regarding the ris%. C*an e Reque!t In a Change :equest, first, you should e"a#uate t*e impact of t*e c*an e. 8e$t, 'etermine option!. hen go to mana ement and the cu!tomer. 0ariance Analysis I echniqueJ : 1 !ethod for resolving the tota# "ariance in the set of scope, cost, and schedule variables into specific co!ponent variances that are associated with defined factors affecting the scope, cost, and schedule variables. It7s also a technique used to mea!ure the project perfor!ance by comparin t*e actua# performance to t*e p#anne' performance in ter!s of scope, cost , 5 schedule. *o, C1 can be used in Co!t Contro#2 ,cope Contro#2 8 ,c*e'u#e Contro#. $rend Analysis I echniqueJ : 1n analytical technique that uses !athe!atical !odels to forecast future outco!es based on *i!torica# re!u#t!. It is a !ethod of 'eterminin t*e "ariance from a (a!e#ine of a budget, cost, schedule, or scope para!eter by using prior progress reporting periods2 data and projecting how !uch that para!eter2s variance fro! baseline !ight be at so!e future point in the project if no changes are !ade in e$ecuting the project.
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is% Management Plan, i.e. role 5 responsibilities, ris% owner. is% egister, i.e. %atc* #i!t of non< critica# ri!/
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Ri!/ Rea!!e!!ment : identification of ne% ris%s 5 rea!!e!!ment of ris%s -K ADD0T0ONA7 to 9# 8 9n Ri!/ Ana#y!i!2 an' Ri!/ Re!pon!e P#annin
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:is% :egister 6Dpdate ,, which contains : &utco!es of ris% reassess!ents, ris% audits, 5 periodic ris% reviews he actual outco!es of project2s ris%s, 5 ris% responses. Closing of ris%s that are no longer applicable Betails of what happened when ris%s occurred >essons learned :equested Changes, these changes are reviewed in 0nte ration C*an e Contro#, then i!ple!ented in Direct 8 Mana e Project E+ecution, and Ri!/ Monitorin 8 Contro# :eco!!ended Corrective 1ction, includes contin ency p#an an' %or/aroun' p#an :eco!!ended "reventive 1ction, used to bring the project into comp#iance with the "roject +anage!ent "lan. &"1 6 Dpdate ,, such as ris% te!plates, :#*, lesson learned I the fina# "er!ion! of the ris% register 5 the :is% +anage!ent "lan te!plates,
Ri!/ Au'it! : e$a!ine 5 docu!ent the effecti"ene!! of ris% responses in dealing with identified ris%s 5 their Approve" Change e!uests ) a## root causes, as well as the effectiveness of the ris%s c*an e! !*ou#' (e forma##y 'ocumente'2 !anage!ent process any "er(a##y 'i!cu!!e'2 (ut un'ocumente'2 c*an e! !*ou#' not (e Cariance 5 rend 1nalysis : the outco!es fro! these proce!!e' or imp#emente'. analysis !ay foreca!t potentia# 'e"iation of the project fro! cost and schedule targets. De"iation Wor% Per'ormance ,n'ormation, i.e. from t*e (a!e#ine p#an may in'icate t*e potentia# project deliverables status, corrective impact of t*reat! or opportunitie!. actions, 5 performance report! echnical "erfor!ance +easure!ents : co!pares Per'ormance eports ) infor!ation or tec*nica# accomp#i!*ment! during project e$ecution project wor% perfor!ance. to the project !anage!ent plan2s schedule of technical achieve!ent. De"iation can *e#p to foreca!t t*e 'e ree of !ucce!! in ac*ie"in t*e projectB! !cope. :eserve 1nalysis, !anaged by project !anager, to compare t*e amount of contin ency re!er"e! remainin to t*e amount of ri!/ remainin at any time2 in or'er to 'etermine if t*e remainin re!er"e i! a'equate.
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*tatus +eetings chec%-lists, and :#*s are included J. "roject +anage!ent "lan 6 Dpdate ,
Contract A'mini!tration :
Ito ensure that the performance of both parties to the contract !eets contractua# requirement! 4 o(#i ation!. to ensure that payment ter!s defined within the contract are !et and that seller co!pensation is lin%ed to seller progress. to re"ie% an' to 'ocument t*e !e##er1! performance, and established corrective actions to !anage any early termination of the contracted wor%ed 6 for cau!e2 con"enience2 or 'efau#t , in accordance with the termination c#au!e of the contract he project !anage!ent processes that are applied to this process are : Direct 8 Mana e Project E+ecution, to authorise the contractor7s wor% at the appropriate time Performance Reportin , to !onitor contractor co!t, !c*e'u#e, and tec*nica# performance Perform 9C, to inspect and verify the a'equacy of the contractor7s products 0nte rate' C*an e Contro#, to ensure that changes are properly appro"e', and that all those with a need to %now basis are aware of such changes Ri!/ Monitorin 8 Contro#, to ensure that ris%s are miti ate'
Contract can (e amen'e' any time prior to contract c#o!ure (y mutua# con!ent2 in accor'ance %it* t*e c*an e contro# term! of t*e contract. Contract A'mini!tration 8 Contract Type! Co!t Reim(ur!a(#e +a%e sure all the costs charged are applicable to the project 1udit every invoice +a%e sure the seller7s wor% is progressing efficiently =atch for the seller adding resources to your project that do not add value or perfor! real wor% =atch for resources being shifted fro! what was said in the original proposal 6 !ore e$perienced people proposed but less e$perienced used, but charged at the higher rate , =atch for seller charges that were not part of the original plan :e-esti!ate the cost of the project Time 8 Materia# "rovide day-to-day direction to the seller 1tte!pt to get concrete deliverables +a%e sure the project length is not e$tended and the nu!ber of hours spent on wor% is reasonable =atch for situations when switching to a different for! of contract !a%es sense 6Mou deter!ine the contract state!ent of wor% under a 5+ contract and then switch to a fi$ed price contract for co!pletion of the project, Fi+e' Price =atch for seller cutting scope 5 quality =atch for seller charging the buyer for costs they have not yet incurred 6unless allowable in the contract, =atch for overpriced change orders Chec% for scope !isunderstandings
Conf#ict T*e ON7@ per!on %*o i! aut*ori!e' to c*an e t*e contract i! t*e Contract Mana er or Contract A'mini!trator. How the project control is different in a contracted environ!ent : you need to deal with a different co!pany7s set of procedures it is not as easy to ;see; proble!s greater reliance on reports to deter!ine if a proble! e$ists greater reliance on relationships between the buyer7s and seller7s project !anagers Contract C*an e Contro# ,y!tem 1ll changes, such as paper%or/, trac/in !y!tem!, 'i!pute re!o#ution proce'ure!, 5 appro"a# #e"e#! necessary for aut*ori!in c*an e!, should be !ade forma##y. Changes are requested through the procurement proce!! and are handled as part of the project 0nte rate' C*an e Contro# efforts. A !e##er cannot i!!ue a c*an e or'er2 *e may reque!te' one. -uyer<Con'ucte' Performance Re"ie% to deter!ine and reco!!end needed Correcti"e and Pre"enti"e Action! and to reque!t forma# c*an e!. a !eeting to see if the seller is performin . a review of seller-prepared docu!entation and (uyer in!pection, as well as qua#ity au'it! conducted during seller7s e$ecution of the wor% to i'entify performance success or failures, progress with respect to the contract *tate!ent &f =or%, and contract non-co!pliance that allows the buyer to quantify the seller7s ability or inability to perfor! wor%. C#aim A'mini!tration Is an assertion that the buyer did so!ething that has hurt the seller and the seller as%ing for compen!ation.. Conte!te' c*an e! 5 con!tructi"e c*an e! are those requested changes where the buyer 5 seller cannot agree on co!pensation for the change or cannot agree that a change has even occurred. hese contested changes are also called c#aim!2 'i!pute!2 or appea#!. 1nother way of loo%ing at clai!s is that they are a for! of seller7s C*an e Reque!t!. Recor'! Mana ement ,y!tem used by the project !anager to !anage Contract Documentation and records I part of Project +I*, which !ay include in'e+in !y!tem!, arc*i"in !y!tem! and information retrie"a# !y!tem! for projects with e$tensive docu!entation. J Contract Documentation Includes : any seller-developed technical docu!entation and other WP0 6 =or% "erfor!ance Infor!ation ,, such as deliverables, seller perfor!ance reports, %arrantie!, financial docu!ents 6 in"oice! 5 payment recor'! ,, and the results of contract<re#ate' in!pection. the contract, with all supporting schedules, requested unapproved contract changes, and approved Change :equest ,e##er Performance E"a#uation Documentation his docu!ent can for! t*e (a!i! for ear#y termination of the seller7s contract, or deter!ining how contract pena#tie!, fee!, or incenti"e! are a'mini!tere'. It can also be included in the appropriate 9ua#ifie' ,e##er 7i!t!.
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Contract Contract Management Plan Selecte" Sellers Per'ormance eports ) seller perfor!ancerelated docu!entation. Approve" Change e!uests ) any !odification to the ter!s 5 conditions of the contract, including the contract *tate!ent &f =or%, pricing, and description of the products, services, or results to be provided. A## c*an e! are forma##y 'ocumente' in %ritin 8 appro"e' (efore (ein imp#emente'. Wor% Per'ormance ,n'ormation I which qua#ity !tan'ar'! are being !et, what costs have been incurred or co!!itted, !e##er in"oice J.
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Contract Change Control *yste! #uyer-Conducted "erfor!ance :eview Inspections 5 1udits, which can be conducted during e$ecution of the project to identify any %ea/ne!! in the seller7s wor% processes or deliverables. "erfor!ance :eporting, provides !anage!ent with info about how effecti"e#y the seller is ac*ie"in the contractual objectives. "ay!ent *yste! C#aim! A'mini!tration Recor'! Mana ement ,y!tem Infor!ation echnology Contract Documentation
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:equested Changes, any changes fro! the buyers 5 sellers for a constructive contract. :eco!!ended Corrective 1ctions, to bring the seller in comp#iance with the ter!s of the contract. &"1 6 updates , Correspondence "ay!ent schedules 5 requests ,e##er Performance E"a#uation Bocu!entation, prepared by the buyer, indicate 6 evaluate , if the seller can be a##o%e' to perform %or/ on future project "roject +anage!ent "lan 6 Dpdate , : "rocure!ent +anage!ent "lan, to reflect any appro"e' C*an e Reque!t! that affect procure!ent !anage!ent. Contract +anage!ent "lan, to reflect any appro"e' C*an e Reque!t! that affect Contract A'mini!tration.
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0nitiatin Proce!! Group P#annin Proce!! Group E+ecutin Proce!! Group Birect 5 +anage "roject A$ecution Monitorin 8 Contro##in Proce!! Group C#o!in Proce!! Group
0nte ration Bevelop "roject Charter Bevelop "roject +g!t "lan Bevelop "reli!inary "roject *cope *tate!ent ,cope *cope "lanning *cope Befinition Create =#* 1ctivity Befinition 1ctivity *equencing 1ctivity :esource Asti!ating 1ctivity Buration Asti!ating *chedule Bevelop!ent Cost Asti!ating Cost #udgeting 9" H: "lanning Co!!unications "lanning :is% +g!t "lanning :is% Identification 9ualitative :is% 1nalysis 9uantitative :is% 1nalysis :is% :esponse "lanning "lan "urchases 5 1cquisitions "lan Contracting
+onitor 5 Control "roject =or% Close "roject Integrated Changed Control *cope Cerification *cope Control *chedule Control
Time
Co!t 9ua#ity $R Communic ation! Ri!/
Cost Control 91 1cquire "roject ea! Bevelop "roject ea! Infor!ation Bistribution 9C +anage "roject ea! "erfor!ance :eporting +anage *ta%eholders :is% +onitoring 5 Control
Procureme nt
:equest *eller :esponses *elect *ellers
Contract Closure
It is during project Closing that the tea! co!piles the fina# "er!ion of the lessons learned and !a%es the! available to other projects and the "roject +anage!ent &ffice. In addition, a concerted effort !ust be !ade to inde$ and put all files, letters, correspondence and other records of the project into an or ani3e' arc*i"e which is stored for use on future projects. Forma# !i n<off is i!portant because it indicates the custo!er considers the project co!pleted and accepts the whole project. (or!al sign-off in a contracting situation constitutes #e a# acceptance. =ithout that acceptance, one cannot be sure the project was !ucce!!fu#.
In addition to obtaining for!al acceptance, another i!portant part of project closing is mea!urin cu!tomer !ati!faction. Eust li%e lessons learned, !easuring custo!er satisfaction should be ongoing throughout the project, but M),T occur during all parts of project closing. &nce ad!inistrative closure is comp#ete' and forma# !i n<off that the products of the project are acceptable is received fro! the custo!er, other sta%eholders andFor the sponsor, the project is c#o!e'.
C#o!e Project :
(or!ally en'in either the project or project phase 5 fina#i3in A77 acti"itie! comp#ete' across all "roject +anage!ent "rocess 'roup "erfor! the project closure portion of the "roject +anage!ent "lan Astablish procedures to coordinates activities needed to : o ;erify 5 'ocument the project 'e#i"era(#e o Forma#i3e deliverables by custo!er or sponsor o Investigate 5 docu!ent the reasons for actions ta%en if a project is ter!inated -EFORE co!pletion Beveloped - procedures : o 1d!inistrative Closure "rocedure o Contract Closure "rocedure
A'mini!trati"e C#o!ure Proce'ure : (ocus on closing t*e project or project p*a!e. Betails A77 activities, interactions, 5 related rolesFresponsibilities of the project tea! !e!ber 5 other sta%eholder involved in e$ecuting 1d! Clos. "roc for the project. Betail activities to verify that all 'e#i"era(#e! have been provided 5 accepted, and validate that comp#etion 5 e+it criteria have been !et. Integrated activities to co##ect project records, analyse project !ucce!! or fai#ure, at*er #e!!on! #earne'2 8 arc*i"e' project info for future u!e. 1ctions and activities to define the sta%eholder appro"a# requirement! for changes and A77 #e"e#! of 'e#i"era(#e! 1ctions and activities that are necessary to confir! that t*e project *a! met A77 !pon!or2 cu!tomer2 an' ot*er !ta/e*o#'er!B requirement!2 verify that A77 deliverables have been pro"i'e' and accepte', and validate that co!pletion and e$it criteria have been !et 1ctions and activities necessary to !ati!fy comp#etion or e+it criteria for the project. Contract C#o!ure Proce'ure : (ocuses on closing a contract t*at i! part of a project. 1ctivities 5 interactions needed to settle 5 close any contract agree!ent Pro'uct "erification 5 a## %or/ comp#ete' correct#y 8 !ati!factori#y 6 Dpdating of contract record and term! 8 con'ition! - !a%e sure that the contractB! term! are !ati!fie' forma##y c#o!e a## contact! a!!ociate' %it* t*e comp#ete' project If your project went well, then this !eans !a%ing sure that payment %a! ma'e and all of the clauses of the contract were adhered to. #ut even if the project got ter!inated, there !ay still be so!e contractua# o(#i ation! that need to be !et
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@ou a#%ay! c#o!e out a project no matter t*e circum!tance! un'er %*ic* it !top!2 i! terminate'2 or comp#ete'. Contract Documentation Contract docu!entation is an input used to perfor! the Contract Closure process, and includes the contract itself, as well as changes to the contract and other docu!entation 6such as the technical approach, product description, or deliverable acceptance criteria and procedures,. Fina# Pro'uct2 ,er"ice2 or Re!u#t (or!al acceptance and *an'o"er of the final product, service, or result that the project was authori0ed to produce. he acceptance includes receipt of a forma# !tatement t*at t*e term! of t*e contract *a"e (een met.
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AA(5 &"1 Project Management Plan Contract Documentation Wor% Per'ormance ,n'ormation Deliverables
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"++ "roject +I* A$pert Eudge!ent Fina# Pro'uct2 ,er"ice2 or Re!u#t
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A'mini!trati"e C#o!ure Proce'ure 5 Contract C#o!ure Proce'ure : &"1 6 Dpdate , : (or!al 1cceptance Boc 6by custo!er or sponsor ,. "roject (iles "roject Closure Bocu!ents 6 for!al doc indicating co!pletion or ter!ination , Historical infor!ation 6 project records, reports, etc ,
Contract C#o!ure :
Co!pleting 5 settling each contract, including the resolution of any open ite!s C#o!in eac* contract applicable to the project or a project phase ;erification of all wor% 5 'e#i"era(#e are acceptable. Dnresolved clai!s !ay be subject to #iti ation AFTER contract closure. "art of the C#o!e Project, described in Integration. Involves ad!inistrative activities, such as up'atin recor'! to reflect final results and archiving such infor!ation for future use.
Contract closure is done: when a contract en'! when a contract is ter!inated before the wor% is co!pleted 6 ear#y termination , If the seller co!pletes the wor% specified in the contract *tate!ent &f =or% 6 even if the buyer is not !ati!fie' with the result , , the contract is considered comp#ete. hat does not !ean the sa!e thing as contract closed. Contract C#o!ure mu!t !ti## occur. Difference between A'mini!trati"e C#o!ure and Contract C#o!ure : Contract Closure occur! fir!t. 1ll contracts !ust be closed out (efore the project is closed out. herefore, at the end of the contract, the project !anager perfor!s a procurement au'it for each contract, ad!inistratively closes out the contract, and then ad!inistratively closes out the project when the whole project is comp#ete'. 1d!inistrative closure !ay be done at t*e en' of each project phase and at t*e en' of the project as a whole. Contract closure is done only once, at the end of the contract. 1d!inistrative closure uses the ter! Q#e!!on! #earne'Q and Contract Closure uses the ter! Qprocurement au'it.Q Contract Closure requires more recor' /eepin and !ust be done !ore for!ally than is generally required for 1d!inistrative Closure, in order to !a%e sure to protect t*e #e a# intere!t! of (ot* partie!. Contract Fi#e 6"roject 1rchives in 1d!inistrative Closure, putting records of the contract into an organi0ed file. his file will be stored for use as *i!torica# recor'! and help protect the project in case of ar ument! or #e a# action regarding what was done and not done on the contract. he file should include: Contract Changes 6approved and rejected, *ub!ittal fro! the seller *eller perfor!ance reports (inancial infor!ation Inspection results >essons learned Forma# Acceptance an' C#o!ure &nce closure is comp#ete' and forma# !i n<off that the products of the contract are accepta(#e is received fro! the buyer, the contract is c#o!e'. In gaining for!al acceptance the seller is also wor%ing to !easure cu!tomer !ati!faction. &ften a for!al custo!er satisfaction survey !ay be included in Contract Closure. Termination he contract should have provisions for stopping wor% before co!pletion. er!ination can be for cau!e or for con"enience. he buyer !ay ter!inate a contract for cause if the seller breaches the contract 6e.g., 'oe! not perform,. he buyer can also ter!inate the contract because they no longer want the wor% done 6termination for con"enience,. It is rare to allow the seller to ter!inate a contract, but it could be appropriate on so!e projects. er!ination automatica##y puts the project into the C#o!in process group. Project Mana er1! ro#e in Contract : <now the "rocure!ent process Dnderstand contract ter!s and conditions +a%e sure the contract contains all the "roject +anage!ent require!ents such as attendance at !eetings, reports, actions and co!!unications dee!ed necessary Identify ris%s and incorporate !itigation and allocation of ris%s into the contract Help tailor the contract to the unique needs of the project
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(it the schedule for co!pletion of the "rocure!ent process into the *chedule for the project #e involved during Contract 8egotiation to protect the relationship with the seller "rotect the integrity of the project and the ability to get the wor% done Dphold the entire contract, not just the contract *tate!ent &f =or% =or% with the Contract +anager to !anage changes to the contract
If a question describes so!e activity and that activity is after the proposal is created and before the contract is signed, then it !ust be ta%ing place as part of ,e#ect ,e##er!. If is ta%ing place after the contract is signed, but before the wor% is substantially done, it !ust be occurring during Contract A'mini!tration. Procurement Au'it! : a structured review of the procure!ent process fro! the P#an Purc*a!e! 8 Acqui!ition! through Contract A'mini!tration. a #e!!on! #earne' of the procure!ent process that can help i!prove other procure!ents I the seller !ay be involved in procurement au'it! andFor lessons learned activities J. to i'entify !ucce!!e! or fai#ure! that %arrant recognition in the preparation or ad!inistration of other procure!ent contracts.
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Procurement Management Plan Contract Management Plan Contract Documentation Contract Closure Proce"ure
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Procurement Au'it! :ecords +anage!ent *yste!
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C#o!e' Contract! I the buyer provides the seller with forma# %ritten notice that the contract has been comp#ete' J. &"1 6 updates , : contract file deliverable acceptance lessons learned docu!entation
PROFE,,0ONA7 8 ,OC0A7 RE,PON,0-070T@
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"rofessional responsibility RE9)0RE, the project !anager to obtain the authority necessary to !anage the project. "rofessional and social responsibility RE9)0RE, the project !anager to handle an unrealistic schedule proble! upfront. "rofessional and social responsibility can be bro%en down into the following categories: Ansure individual integrity Contribute to the project !anage!ent %nowledge base Anhance personal professional co!petence "ro!ote interaction a!ong sta%eholders En!ure 0n'i"i'ua# 0nte rity his topic !ay require you to %now that a "roject +anager !ust: ell the trut* in project reports, conversations and other co!!unications Fo##o% copyright and other laws 8ot 'i"u# e co!pany data to unauthori0ed parties Calue and protect intellectual 6non-tangible, property 8ot put per!ona# ain over the needs of the project Pre"ent conflicts of interest or the appearance of conflicts of interest and deal with the! %*en t*ey 'o occur 8ot give or ta%e (ri(e! or inappropriate ift!2 e"en if itB! after t*e project *a! fini!*e'. reat everyone with re!pect (ollow "+I7s Code of "rofessional Conduct Bo the ri *t thing (ollow the ri *t process :eport "io#ation! of laws, business policies, ethics and other rules Contri(ute to t*e Project Mana ement Kno%#e' e -a!e his topic !ay require you to %now that a project !anager should: *hare lessons learned fro! the project with other project !anagers in the co!pany =rite articles about project !anage!ent *upport the education of other project !anagers and sta%eholders about project !anage!ent Coach or !entor other project !anagers and project tea! !e!bers "erfor! research to discover best practices for the use of project !anage!ent and share the results with others "erfor! research on projects done within the co!pany for the purpose of calculating perfor!ance !etrics En*ance Per!ona# Profe!!iona# Competence his topic !ay require you to %now that project !anagers: =or% to understand their personal strengths and wea%nesses Continue to learn to apply the science of project !anage!ent "lan their own professional develop!ent Constantly loo% for new infor!ation and practices that will help the co!pany or its projects Continue to learn about the industry or industries where they wor% Promote interaction amon !ta/e*o#'er! -a#ancin !ta/e*o#'er!1 intere!t! - it is an i!possible effort if you do not have clear project o(jecti"e!, if you have not previously identified A77 the sta%eholders and deter!ined A77 their require!ents. #eing able to balance their interests i!plies that you also %now the priority of their require!ents. Re!o#"e Competin 0ntere!t! - the project !anager should facilitate the resolution of co!peting interests by accepting those that best co!ply with the following: he reason the project was initiated 6!ar%et de!and, legal require!ent, etc., he "roject Charter he "reli!inary "roject *cope *tate!ent he "roject *cope *tate!ent he co!ponents of the ;triple constraint; In order to deal with co!peting interests, the project !anager would ta%e the following actions: Beter!ine and understand the interests of all sta%eholders 1ctively loo% for co!peting interests 'et !anage!ent involved when the tea! cannot resolve the co!peting interests Beter!ine options for fair resolution of conflict Dse conflict resolution, co!!unication, negotiation, infor!ation distribution, tea! building and proble! solving s%ills 6see those topics in this boo%, :eview the co!peting interests against those listed above 6 hose needs that are in line with the ite!s listed above !ay be accepted, those that are not are rejected and !ay beco!e a parts of a future project, >oo% for options including: !c*e'u#e compre!!ion, re<e!timatin , (rain!tormin and other project !anage!ent and !anage!ent-related techniques Hold !eetings, interviews and discussions to facilitate resolution of co!peting interests +a%e decisions and changes that do not i!pact the reason the project was initiated, the "roject Charter, the "reli!inary "roject *cope *tate!ent, the "roject *cope *tate!ent or the co!ponents of the ;triple constraint; -rin !u e!te' c*an e! to t*e Project C*arter to t*e ,pon!or1! attention for appro"a# Ascalate when a fair and equitable solution cannot be facilitated Dea# Wit* Pro(#em! an' Conf#ict! A! T*ey Ari!e 0nteract Wit* Team an' ,ta/e*o#'er! in a Profe!!iona# an' Cooperati"e Manner 1 project !anager !ust: :espect the needs of resource !anagers :eali0e that tea! !e!bers7 reputations can be negatively affected by the project Identify and understand cultural differences
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Dncover co!!unication preferences when identifying sta%eholders Dncover and respect different wor% ethics and practices of tea! !e!bers "rovide for!al and infor!al training to sta%eholders as needed for the! to effectively wor% on the project (ollow the practices in use in other countries as long as they do not violate laws
0'entify an' )n'er!tan' Cu#tura# Difference! he project !anager !ust : A!brace diversity. Cultural differences can !a%e a project !ore fun. "revent culture shoc%. he disorientation that occurs when you find yourself wor%ing with other cultures in a different environ!ent. raining and advance research about the different cultures will help prevent culture shoc%. A$pect cultural differences to surface on the project. Dse clear co!!unication to the right people and in the right for!, as outlined in the Co!!unications chapter, to prevent cultural differences fro! beco!ing a proble!. Dncover cultural differences when identifying sta%eholders. 1s% for clarification whenever a cultural difference arises. Biscuss the topic of cultural differences at tea! !eetings as needed. )nco"er Communication Preference! W*en 0'entifyin ,ta/e*o#'er! T*e PMP Co'e of Profe!!iona# Con'uct 1s a "+" you agree to support and adhere to the Code of conduct. It is described with two sections: :esponsibility to the "rofession and :esponsibility to Custo!ers and the "ublic Re!pon!i(i#ity to t*e Profe!!ion : Here you have si$ basic responsibilities #e truthful at all ti!es and in all situations :eport Code violations 6with factual basis, Bisclose conflicts of interest Co!ply with laws :espect other7s intellectual property rights *upport the Code Re!pon!i(i#ity to Cu!tomer! an' t*e Pu(#ic : Here you have five basic responsibilities #e truthful at all ti!es and in all situations +aintain professional integrity 6satisfy the scope of your professional services, :espect the confidentiality of sensitive infor!ation Refrain from ift or compen!ation i"in 4recei"in %*ere inappropriate Ansure conflicts of interest do not interfere with client7s interest or interfere with professional judge!ent -u!ine!! Et*ic! Athics in project !anage!ent involves learning %*at i! ri *t or %ron , and then 'oin t*e ri *t t*in . #ut in the real world, 7the right thing7 is not as straightforward as conveyed in lots of business ethics literature. Here are eight guidelines to help you establish a strong ethics foundation for your project. :ecogni0e that !anaging ethics is a process. Athics !anage!ent is the proce!! of ref#ection an' 'ia#o ue . that produces deliverables such as codes, policies and procedures. he goal of an ethics !anage!ent initiative is preferre' (e*a"iour in the project environ!ent. he best way to !anage ethical dile!!as, li%e negative project ris%s, is to a"oi' t*eir occurrence in t*e fir!t p#ace +a%e ethics decisions in team!, and !a%e decisions pu(#ic, a! appropriate. Integrate ethics !anage!ent with other project practices. Define preferre' et*ica# "a#ue! 'irect#y in t*e project p#an. Dse cro!!<functiona# team! to develop your ethics !anage!ent plan. #enefit fro! varied input. Calue for i"ene!! Help project personnel reco ni3e and address their mi!ta/e! and then !upport the! to continue to try to operate ethically 'ive yourself credit for trying. 1tte!pting to operate ethically and !a%ing a few !ista%es is (etter t*an not tryin at a##. 1ll projects are co!prised of people and people are not perfect. Dntil recently, ethics in business typically !eant philanthropy of so!e sort. However, in light of today7s corporate scandals, ethics has surfaced as an i!portant issue. 1s a result, values are increasingly beco!ing an integral part of effective project !anage!ent. How do project !anagers turn to values? Here are five areas to approach: Ri!/ Mana ement: his is fairly straightforward. Incorporating values into your project can help eli!inate ris%s associated with organi0ational and individual !isconduct. Or ani3ationa# functionin : "lanned-in values can build a well-functioning project organi0ation by encoura in cooperation, in!pirin commitment, nurturin inno"ation and ener i3in team mem(er! around a positive self-i!age. Ci"ic po!itionin : Calues can establish the project organi0ation7s standing in the co!!unity as a pro re!!i"e force for !ocia# (etterment and as a !o#i' contri(utin citi3en. Mar/et po!itionin : Calues can shape a project or ani3ation1! i'entity an' reputation. Calues can help build the organi0ation7s (ran'! and earn the trust of custo!ers, suppliers and partners ,imp#y a (etter %ay: 1lthough values do provide financial benefits, this should not be the justification for ethics. Calues are %ort*%*i#e and fun'amenta# principles of re!pon!i(i#ity, *umanity and citi3en!*ip. hey need NO J),T0F0CAT0ON. $o% to Face a Pu(#ic Cri!i! : Hopefully, you will never encounter the !isfortune of having to deal with a public crisis. #ut, as project !anager, you are the one that !ay be called upon to face the co!!unity. Here7s how to handle it: Dnderstand this is a for!ative e$perience and let these seven words be your guiding principle... ell the ruth and ell it (ast. Co!!unicate frequently, invite everyone, answer all questions willingly and truthfully.
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Cu#tura# Competencie! : 1s !odern business continues its evolution to beco!ing a world co!!unity, project !anagers increasingly find the!selves !anaging !ulticultural tea!s. +any projects today are even global in scope, with project tea!s wor%ing fro! different locations around the world. oday7s project !anagers !ust add 7cultural co!petency7 to their long list of general !anage!ent s%ills. o beco!e truly e$pert and fluent in cultural co!petencies, you could spend a lifeti!e studying and travelling. (or our purposes, !aintaining a professional sensitivity to cultural differences and %nowing a few basic 7rules7 should be adequate. here is no need to study this !aterial !eticulously. *i!ply read it to develop a general feel for the subject. Difference! : Bifferences e$ist, not only between countries, but within a country7s own borders as well. *o!e %ey differences between countries "hysical ti!e "erceived ti!e +onetary policies "rocure!ent practices 8egotiating practices >anguage #ody >anguage Aducation 'overn!ents +anage!ent styles rust 9uality *tandards :is% thresholds ravel constraints 6country infrastructure,
*o!e %ey cultural differences in perception and behaviour: *ocial groups :eligions :aces Class structure 'enders >ocal laws *o!e %ey cultural differences in perception and behaviour: Anviron!ent i!e 1ction Co!!unication *pace "ower Individualis! Co!petitiveness *tructure hin%ing Do! an' Don1t! in Mana in G#o(a# Project! : In !anaging global projects, it is essential to 'e"e#op cu#tura# !e#f<a%arene!!. he first, and !ost i!portant, step is beco!ing aware of your own cultural orientations and the i!pact they can !a%e in !anaging projects across cultures. Mou !ust prepare for cross-cultural project encounters with purpose and thoroughness. Here are a few dos and don7ts to consider. DO Bevelop your cultural self-awareness. *et realistic e$pectations for yourself and others. 1ccept that you will !a%e !ista%es, but re!ain confident. #e patient. *low down. +a%e relationships. <eep your sense of hu!our. <eep your integrity. *tay objective . !ini!i0e bla!e.
DON1T: 1ssu!e si!ilarity. ry to adopt the orientations of the other culture. A'aptation 'oe! not mean a'option. Bwell on co!paring the other culture with your own. Avaluate the other culture in ter!s of good or bad. 1ssu!e that just being yourself is enough to bring you cross-cultural success. $o% to De"e#op Mu#ticu#tura# E+ce##ence in G#o(a# Project! 1s we rapidly evolve into a global co!!unity, !any project !anagers find the!selves !anaging project tea!s across vast geographical landscapes. o i!prove your success probability in such environ!ents, it is essential to develop !ulticultural co!petencies. Here are few things you can do to help develop !ulticultural e$cellence: Mu#tip#e #an ua e!: :ecruit core tea! !e!bers who spea% !ultiple languages Mu#ticu#tura# e+perience: "rovide core tea! !e!bers with !ulticultural e$periences. Cro!!<cu#tura# e+perience: 1rrange cross-cultural e$periences for e$tended tea! !e!bers. Continuou! impro"ement: 1c%nowledge the continuous need to i!prove cross-cultural e$periences for all tea! !e!bers. Acro!! t*e Mi#e!2 Keep Team Mem(er! Fee#in Connecte' : It is i!portant to let offsite project tea! !e!bers %now they !ean !ore to the project than just deliverables, an e!ail address or a teleconference voice.
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1lthough personal events have little to do with wor%, !a%e it a routine practice to ac%nowledge events such as birthdays, weddings, births and graduations. his level of thoughtfulness sends a powerful !essage and helps to enhance overall tea! perfor!ance
,)MMAR@
0nitiatin Proce!! Group 0nte rat Bevelop "roject Charter ion Bevelop "reli!inary "roject *cope *tate!ent ,cope P#annin Proce!! Group Bevelop "roject +g!t "lan E+ecutin Proce!! Group Birect 5 +anage "roject A$ecution Monitorin 8 Contro##in Proce!! Group C#o!in Proce!! Group
+onitor 5 Control "roject =or% Close "roject Integrated Changed Control *cope Cerification *cope Control *chedule Control
Time
Co!t 9ua#ity $R Commu nicatio n! Ri!/
:is% +g!t "lanning :is% Identification 9ualitative :is% 1nalysis 9uantitative :is% 1nalysis :is% :esponse "lanning "lan "urchases 5 1cquisitions "lan Contracting :equest *eller :esponses *elect *ellers
Procure ment
Contract Closure
MEMOR@ A0D,
he following are co!!on for all the processes in the "roject Integration +anage!ent %nowledge area: "roject +anage!ent +ethodology and "+I* A$pert Eudge!ent 6 e+cept Birect and +anage "roject A$ecution ,
1fter the "roject +anage!ent "lan is developed, it is an input for A77 ,)CCE,,0;E PROCE,,E, in the Project 0nte ration Mana ement %nowledge area. Acti"ity Attri(ute! )p'ate! is a co!!on output for all the processes in the Project Time Mana ement %nowledge area e$cept the first process where activity attributes are created. Reque!te' C*an e! is a co!!on output for all the processes in the "roject Cost, i!e, 9uality 5 *cope +anage!ent %nowledge area e$cept the 1ctivity Buration Asti!ating "rocess , 9uality "lanning, and *cope "lanning. *even basic tools of 9uality: CC(:H"* 6 Cat Cat<Fi!* Run! on $or!e Pony ,ta##ion , : Cause and Affect Biagra!s. Control Charts. (low charting :un Chart Histogra! "areto Chart *catter Biagra! PAW *cope Control, Cost Control, :is% +onitoring 5 Control, and Contract 1d!inistration processes have "1= in Inputs :, . "1= stands for "erfor!ance :eporting, 1pproved Change :equests and =or% "erfor!ance Infor!ation. he other + 5 C "rocesses have two of "1= inputs e$cept 6 Integration +anage!ent 5 +anage *ta%eholders , Mou can re!e!ber this as *C:C has "1= Recommen'e' Pre"enti"e Action! his occurs in only / processes - +onitor 5 Control "roject =or%, :is% +onitoring and Control, 9uality Control and +anage "roject ea!. :eco!!ended "reventive 1ction is used to (rin t*e project into comp#iance %it* t*e project p#an. :eco!!ended Corrective 1ction is anything that needs to be done to (rin t*e !e##er in comp#iance %it* t*e term! of t*e contract.
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Recommen'e' Defect Repair is output of only two processes : + 5 C "roject =or% and 9uality Control Co!t of 9ua#ity - Input to 9uality "lanning and (or Cost Asti!ating.
Foreca!tin (orecasts are outputs of + 5 C "roject =or% and "erfor!ance :eporting (orecasted co!pletion is output of Cost Control and input to "erfor!ance :eporting (orecasting is for Cost Control Fi"e output! of Birect 5 +anage "roject A$ecution are inputs to 9uality 1ssurance na!ely I!ple!ented Change requests I!ple!ented Corrective actions I!ple!ented "reventive actions I!ple!ented Befect :epair. =or% "erfor!ance Infor!ation. Contract which is output of *elect *ellers process is input to Contract 1d!inistration and Cost #udgeting here is only one ool 5 echnique for :is% +anage!ent "lanning: "lanning +eetings 5 1nalysis.
Pre"ention is %eeping errors out of the process. 0n!pection is %eeping errors out of the hands of the custo!er. 1ttribute sa!pling is whether the result confor!s or not. In Cariables sa!pling, the result is rated on a continuous scale that !easures the degree of confor!ity. Co!!on causes 6a.%.a rando! causes, are nor!al process variations. *pecial causes are unusual events. he result is acceptable if it falls within the range specified by the tolerance control li!its. he process is in control if it falls within the control li!its.
T0P, 4 F7A,$CARD,
R1
=hen a new sta%eholder co!es in and affecting your project you7re !anaging, the best thing to do is to get his opinion incorporated in the project up front. It2s i!portant that A77 of the project sta%eholders understand the needs and objectives that the project is !eant to address. he worst case is to have the sta%eholder2s opinion incorporated at the end of the project -- that could !ean a lot of re-wor% or even an entirely unacceptable product. =hen handling a tea! !e!ber for poor behaviour affecting the project, punish!ent is the best choice of power. 1lways re!e!ber to do this one<on<one2 in per!on2 an' in pri"ateW "unishing so!eone in front of peers or superiors 6 (unctional +anager , is e$tre!ely e!barrassing, and will be really counterproductive. A+C Calculations I =hen you calculate A+C, anything that !a"e! your project money is counted as po!iti"e, and anything that co!t! it money is ne ati"e. +ultiply each by the probability and add the! togetherJ : he tea! esti!ates that there is a /N[ chance that the subcontractor will fail to deliver. If that happens, it will cost an additional X1H,-HN to pay your engineers to rewrite the wor%, and the delay will cost the co!pany X-N,NNN in lost business. 1nother tea! !e!ber points out an opportunity to save !oney an another area to offset the ris%: if an e$isting co!ponent can be adapted, it will save the project X/,HNN in engineering costs. here is a LH[ probability that the tea! can ta%e advantage of that opportunity. A+C P /N[ S 6 - X1H-HN - X-NNNN , Q LH[ S 6 QX/HNN , P -X1/1NN Q X-U-H P -X111RH =hen it co!es to sta%eholder e$pectations, nothing beats docu!entation W Get !ta/e*o#'er e+pectation! in %ritin A,AP W. <now that custo!ers can be interna# or e+terna#, but they all have the sa!e the!e: Custo!ers pay for, or use, the product deliverables. In so!e instances, they2ll pay for, and use, the deliverable. "roject !anage!ent processes are the processes you2ll want to study. "roduct-oriented processes, on the other hand, are unique to t*e or ani3ation creatin t*e pro'uct. 1ssu!ptions should be 'ocumente' whenever they are used. his includes esti!ates, planning, scheduling, and so on. 1ssu!ptions can be considered as ri!/! because fa#!e a!!umption! can a#ter t*e entire project. +oney already spent on a project is called !un/ co!t! and should not be ta%en into consideration when deter!ining if a project should continue. Instead, the cost of the wor% to co!plete is one of the ele!ents that should be ta%en into consideration when considering whether to %ill a project. "erhaps the !ost i!portant reason to include sta%eholders is that they can contri(ute to the project !anage!ent plan. *ta%eholders %now things that the project tea! doesn2t, thus you should use the sta%eholders to help the project succeed. he "roject Charter does not have to co!e fro! the project sponsor. It can co!e fro! a !anager out!i'e of the project or so!e other initiator. In addition, the "roject Charter doesn2t launch the projectGit authori0es the project !anager. Open i!!ue! are accepta(#e, as long as they are not related to !ajor issues that will prevent the project fro! !oving forward. (or e$a!ple, conflicting objectives and require!ents between sta%eholders CANBT (e an open issue. 1 resolution and agree!ent on project require!ents has to be in place before the project wor% can begin. $i''en !ta/e*o#'er! can influence the outco!e of the project. hey can also add cost, schedule require!ents, or ris% to a project. >eadership and !anage!ent are interre#ate'. Mou won2t have effective leadership without !anage!ent, and vice-versa. <now that leadership can also co!e fro! project tea! !e!bers, not just fro! the project !anager. If the scope has been co!pleted, the project is finished. #eware of e$a! questions that tell you the scope is co!pleted but that the custo!er isn2t satisfied. his is because if t*e !cope i! comp#ete2 t*e project i! comp#ete. =ith vendor disputes, refer to the contract since it2s the legal docu!ent for the client-vendor relationship. Historical infor!ation is pro"en and 'ocumente', and co!es fro! reliable sources, hence !ore i!portant than project tea! !e!bers2 opinions. "hases are unique to each project. "hases are not the sa!e as initiating, planning, e$ecuting, !onitoring and controlling, and closing. hese are the process groups, and are universal to all projects. =ith respect to negotiation, it is i!portant to !ove beyond cultural stereotyping and seeing people as individuals with unique personality traits and e$periences. here are NO rejected corrective actions and preventive actions. "+#&< i!plies that they are all approved. 1 #etter of cre'it is issued by a financial institution, guaranteeing pay!ent upon receipt of goods. It is the nor!al !eans of financing overseas ship!ents. he financial institution !ust be paid, either through cash settle!ent or a draw against credit, before releasing the ship!ent. 1 #etter of intent 6a, is a non-binding state!ent indicating a willingness to conduct business upon certain conditions being !et. 1 #ine of cre'it 6c, is a co!!it!ent fro! a lending institution to grant financing to a business, and could be the bac%ing for a letter of credit. 1 co!pletion bond is a type of perfor!ance bond used in the entertain!ent industry. he three major cau!e! of change on a project are: error! in the initial assess!ent of how to achieve the goal of the project ne% information about the project deliverable ne% man'ate
:e-baselining !ay be an output of Cost Control when CCs are !e"ere, and a rea#i!tic mea!ure of performance is needed. Mour project tea! identified si$ related projects with !ajor dependencies on your deliverables. *o!e of these projects have a very si!ilar scope and !ay overlap with your deliverables. In light of this, you should be +&* concerned about :is% :esponse "lanning. If there is a question in e$a! around delegation, try to watch for the options as follows Tec*nica# !tuff - 1ll technical stuff can be delegated =#* and si!ilar ite!s - :e!e!ber that =#* , esti!ation etc is best done by project tea! rather than "+ =or%ing with custo!ers on echnical details. "+ need not be involved. He can just be infor!ed. "+ should not delegate value added stuff which are !ainly responsibilities li%e +otivating tea! !e!bers 'iving out rewards. Mou can invite senior !anagers but not delegate
R =atch out for things in "+#&< where it says this is "+@s responsibility. he purchase order beco!es a ;contract; when it is accepted and signed by the vendor. =hen there is uncertainty associated with one or !ore aspects of the project, one of the first steps to ta%e is to increase the esti!ated cost. Co!!unication barriers are a !ore frequent source of conflict in !atri$ and projectised environ!ents than functional organi0ations for the following reasons : tea! !e!bers are often physically separated in a !atri$ or project environ!ent there are increased nu!bers of levels of authority in a !atri$ or projectised environ!ent tea! !e!bers are often separated in the ti!ing of their contributions to a !atri$ or project environ!ent tea! !e!bers with differing s%ills and bac%grounds can be as%ed to contribute to project results o deter!ine resource require!ents, a new project !anager should loo% to =#*. he !ajor difference6s, between ti!e-li!ited scheduling and resource levelling is that ti!e-li!ited scheduling reschedules activities according to resource availability while resource levelling atte!pts to s!ooth out resource require!ents by rescheduling. he legal contractual relationship that e$ists between the buyer and the seller is called contract pri"ity. :ando! variance in a process, as !easured by the standard deviation. can be directly reduced by identifying patterns of variance using Contro# C*art!. C"+ uses !ost li%ely time e!timate. "A: is superior to C"+ because it requires three ti!e esti!ates per tas%. "A: provides an opti!istic, pessi!istic and !ost li%ely esti!ate for each tas%. he project is not co!pleted until for!al acceptance is received, and any other require!ents for project closure as stated in the contract are !et. he custo!er on a project tells the project !anager he has run out of !oney to pay for the project. In this situation, the project !anager should enter the ad!inistrative closure.
I fro! http:FFprojectsteps.blogspot.co!F-NNRFNRFproject-!anage!ent-professional.ht!l J Mou are wor%ing in a country where it is custo!ary to e$change gifts between contractor and custo!er. Mour co!pany code of conduct clearly states that you cannot accept gifts fro! any client. (ailure to accept the gift fro! this client !ay result in ter!ination of the contract. he action to ta%e in this case would be to contact your project !pon!or an' 4or your #e a# or pu(#ic re#ation! roup for a!!i!tance. Buring your assign!ent as project !anager you add a new !e!ber to your project tea!. his new tea! !e!ber was recently hired fro! a co!petitor and offers to share a substantial a!ount of proprietary infor!ation fro! his previous co!pany. his infor!ation could put you and your tea! in a very strong position for future business. Mou are aware of a non co!pete clause in the new hire7s condition of e!ploy!ent. Mou should re"ie% t*e con'ition of emp#oyment %it* t*e ne% *ire an' a'"i!e *er to recon!i'er t*e offer. 1n e$a!ple of a conflict of interest would be as a public official you !a%e a decision about a contract award that will benefit you personally and 8& a disagree with a tas% cost esti!ate with a functional !anager In order to balance the needs of the !any sta%eholders involved in your project the !ost desirable !ethod to achieve resolution of conflicts would be confrontation. In order for the project !anager to fully and effectively understand a sta%e holder7s personal concerns or grievances it !ay necessary to attempt to empat*i3e with the sta%eholder instead of getting involve the project sponsor as an arbitrator. he integrity of the project !anager is often challenged by sta%eholders who atte!pt to use personal power or influence to change the scope of an agreed upon deliverable. In these situations the project !anager7s !ost appropriate response would be to refer t*e !ta/e*o#'er to t*e proce!! for c*an e 'ocumente' in t*e appro"e' contract. #efore reporting a perceived violation of an established rule or policy the project !anager should en!ure there is a reasonably c#ear and factua# (a!i! for reporting the violation. =hen no sta%eholders agree on the project objectives, this is a conf#ict i!!ue. he best course of action would be to perfor! a fea!i(i#ity ana#y!i! 6 as this is a proble! solving !ethod ,. If the sponsor has already reject the funding for an additional wor% requested by the sta%eholder, there is no need to !a%e a second request for an additional wor%, just tell the sta%eholders the scope CANNOT be added. I (1* rac% J ] I8I I1 I8' ^ #ecause orders are nu!erous and of short duration, this situation is a process, not a project. Beliverables are part of the project charter, which is created before the wor% is co!pletely defined and planning occurs. deter!ined in part by the custo!er defined at project onset with the input of project sta%eholders In a predo!inantly hierarchical organisation, the project Charter is #A* created jointly with !anage!ent for distribution to potential tea! !e!bers 5 sta%eholders. 'enerally, a difference in objectives is resolved in favour of the custo!er. However, it is the project !anager7s responsibility to infor! the custo!er of other options. *ta%eholders can be identified t*rou *out the project !anage!ent process groups. However, the earlier sta%eholders are identified, the better for the project. If all of the sta%eholders7 needs and require!ents are ta%en into account before plans are finali0ed and project wor% is begun, fewer changes will
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be needed later in the project, when they will be !ore costly. 1 feasibility study addresses whether the project should be done. +anufacturing is generally considered a process, not a project, as it is not te!porary. 1 project charter will not be appropriate here. 1 project is te!porary and unique. his is an e$a!ple of a business process that is ongoing and repeatable. *uch processes are best !anaged in a functional organi0ation. #ecause a project done in a !atri$ organi0ation involves people fro! across the organi0ation, co!!unications are !ore co!ple$. he "reli!inary "roject *cope *tate!ent should include how success will be !easured, where as the business needs are in the "roject Charter. ] (ra!ewor% ^ he project !anager !ust facilitate a fair and equitable solution, but the custo!er is the first of equals. he +&* appropriate things to do during the +onitoring 5 Controlling "rocess group is to facilitate conflict resolution using conflict resolution techniques, to deter!ine individual tea! !e!ber perfor!ance. +anufacturing is generally considered a process, not a project, as it is not te!porary. 1 project charter will not be appropriate here. &n !ost successful projects, the sta%eholders are actively involved in project !anage!ent plan creation. #y definition, ris% is the uncertainty of so!e aspect of the project. he +&* appropriate things to do during the "lanning "rocess group is the %ic%off !eeting. he "+& deter!ines whether a project supports the organi0ation7s strategic plan and can authori0e e$ceptions to projects not lin%ed to the strategic plan. :equire!ents !ust be !easurable to ensure they are understood and reachable. his is even !ore i!portant than resolving a difference of require!ents in favour of the custo!er, because you cannot !eet the custo!er7s needs if the require!ents are a!biguous. +anage!ent by objectives tries to focus all activities on !eeting the co!pany7s objectives. If the project7s objectives are not in line with the co!pany7s objectives, the project !ay be i!pacted or cancelled. ] Integration ^ he role of the "+& is defined by its parent organi0ation, can vary fro! an advisory capacity to full authority over projects. 1 lessons learned docu!ent describes !ore than just the decisions !ade. It should help recall what went right, wrong, progress, etc. on the project. &nce the change has been !ade, the project !anager need to update the docu!ents affected by the change, all of which are included in the project !anage!ent plan. hen, request CC# involve!ent. 1 project without a charter is a project without support. Integration is a %ey responsibility of the project !anager. &nly with for!al acceptance can the project !anager be sure the project wor% is really co!plete. Mou want the process to be for!al so changes don7t ;just happen.; Mou !anage the!. Mou want the! docu!ented for historical purposes so there is an audit trail indicating why you !ade the changes. his is why Change Control *yste! should be created. &nce the Integrated Change Control has already been done, any changes should go to the CC#. It is i!portant to reali0e that delays or cost increases do not auto!atically result in changes to baselines. Changes can be !ade to the baselines, but only when they are officially approved. Changes are not listed in the "roject *cope +anage!ent "lan or in the "roject Charter. he lessons learned can only be co!pleted after all the 6technical, wor% is co!pleted. I!agine the situation as a fire. (irst put it out, then find out why it occurred. =ho does each activity is !anaged with the schedule and :esponsibility 1ssign!ent +atri$. =hen each activity is done is !anaged with the project schedule. 1 =or% 1uthori0ation *yste! is used to coordinate when and in what order the wor% is perfor!ed so that wor% and people !ay properly interface with other wor% and other people. he detailed budget is created by the project !anager with input fro! the tea! so this cannot be best. Beter!ining that the project is following policies 5 procedures is 91, and accepting wor% results is *cope Cerification. he biggest proble! is retaining tea! !e!bers until closure of the project. "eople start loo%ing for their ne$t project and leave before ad!inistrative closure is co!plete. ] *cope ^ 1 good =#* identifies each wor% pac%age so that each can be properly assigned, thus reducing the possibility that the sa!e wor% will be done by !ore than one resource. he =#* helps ensure everyone understands the scope of the wor%. he rules of the Belphi echnique are: %eep the e$perts7 identities anony!ous, do not bring the e$perts together in the sa!e roo!, and build consensus. 1 tea! !e!ber should have fle$ibility at the wor% pac%age level to !a%e so!e changes as long as they are within the overall scope of the =#* dictionary 6 used to !a%e sure the tea! clearly %nows what wor% is included in each of their wor% pac%ages ,.
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he baseline can be changed with any approved changes. he =#* allows co!!unication vertically and hori0ontally within the organi0ation as well as outside the project. *cope verification focuses on custo!er acceptance of a deliverable while product verification is focused on !a%ing sure all the wor% is co!pleted satisfactorily. ] i!e ^ 'etting functional !anagers to approve will also, indirectly get tea! !e!bers7 approval. :e!e!ber that the boo% "+" A$a! "rep says to assu!e a !atri$ organi0ation. If functional !anagers %new what each of their people were doing, the ti!efra!e and when they were on the critical path, resource proble!s would not be as frequent. 1pproval of the schedule by functional !anagers provides the !ost benefits. If the project qill require redesign after co!pletion of testing, 'A: should be use, because 'A: is the only diagra!!ing technique that allows loops. If a project activity on the Critical "ath is delayed, then the best thing to do is to co!press the schedule. he activities co!!on to the critical paths are the !ost li%ely to change 6 to be co!pressed or re!oved ,. he critical path does not change if the scope is the sa!e. Critical "ath deals with schedule, "recedence Biagra!!ing deals with the relationship between activities. Mou would pic% the activity with the !ost float so that the ine$perienced tea! !e!ber would not delay the project as he is learning. +ilestone reports present the right level of detail for upper !anage!ent. 1dding a du!!y activities on the schedule networ%, would have no effect on the Critical "ath. #ut, it will add !ore dependencies on the project, hence !ore co!!unications. If there is a !ajor delay on a non-Critical "ath activity, there is no need to change the project schedule. Dnless, the delay is !ore than the activity7s float. ] Cost ^ >ife cycle costing loo%s at operations and !aintenance costs and balances the! with the project costs to try to reduce the cost across its entire life. he life cycle cost will provide the picture of the total cost of the project. he best !ethod to control cost is to esti!ate at the beginning of the project and then chec% costs against the baseline. he larger the #C:, *"I and C"I the better. (unding li!it reconciliation !ost li%ely will affect the project schedule, since wor% will need to be !oved to when funds will be available. he project !ust ta%e into account what will happen after the project is co!pleted. his !eans that the cost of !aintaining the product !ust be considered as part of the project. he i!pact of not doing this is the greatest. Aarned value analysis is a great reporting tool. =ith it, you can show where you stand on budget and schedule as well as provide forecasts for the rest of the project. he Cost +anage!ent "lan contains a description of the =#* level at which earned value will be calculated. he cost contingency reserves should be added to the base costs of the project to account for ris%s. Buring the ris% !anage!ent process, you deter!ine appropriate cost contingency reserves for ris% events. he su! of these reserves should be added to the total project esti!ate to cover the cost of ris% events happening. (inal funding li!it reconciliation would have been done after fast trac%ing. ] 9uality ^ Inspections !ay be conducted at any level including the project tea!, and at any ti!e throughout the product develop!ent. hey are used to prevent defects fro! being delivered to the custo!er. wo events that are !utually e$clusive cannot happen on the sa!e trial. *tatistical independence deals with two events not being lin%ed.
] "rocure!ent ^ 9uality is defined as confor!ance to require!ents. If inspection wor% is not perfor!ed as required in the contract, you are not !eeting the project7s quality standards. he only contract that li!its fees for large projects with li!ited scope definition is cost plus fi$ed fee. 1 procure!ent audit includes what went right and wrong for the purposes of creating historical records and i!proving future perfor!ance. Changes in resources used would generally not be part of a fi$ed price contract. If the ite! is called a co!!odity purchase, it !eans that it is readily available 6li%e purchasing paper for a copy !achine, therefore, it is unli%ely that the seller !isunderstood the Contract *&=. Arrors in calculations could always occur, but sellers are particularly careful about errors since errors can severely i!pact the!. he only way to change the cost plus fi$ed fee contract is to negotiate a change to the contract, nor!ally in the for! of change orders. 8o contract state!ent of wor% can be developed, and e$pertise cannot be found internally. C"I( would be an incentive to the vendor to perfor! on or
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ahead of schedule. It is best to first re!ind the seller that they are legally bound to continue. =hen the seller has !ore e$pertise than the buyer, the contract state!ent of wor% should describe perfor!ance or function rather than a co!plete list of wor%. In any case, the contract state!ent of wor% should be as detailed as possible. *ub!ittal is another na!e for deliverables that are sent during contract ad!inistration.
he only way to change the Co!t P#u! Fi+e' Fee 5 CPFF 6 contract is to ne otiate a c*an e to t*e contract, nor!ally in the for! of c*an e or'er!. Change orders should include an additional fee if a''itiona# %or/ i! a''e' to the contract. he intent of the contract can be deter!ined by re!e!bering that %or'! are more (in'in t*an num(er!. er!s and conditions should be the result of a ri!/ ana#y!i!. his !eans the project !anager has been assigned and has co!pleted the ris% !anage!ent process -EFORE the contract is drafted. Contract! are ri!/ miti ation too#!A 1 procure!ent audit includes %*at %ent ri *t an' %ron for the purposes of creatin *i!torica# recor'! and impro"in future performance. he contract change control syste! includes a !ethod for contro##in cost on the contract. he first thing you should do is refer to the contract ,OW to deter!ine what it states, then as% for a c*an e or'er if needed. (ro! the seller7s perspective, the status of a project when the project tea! has co!pleted 1>> the wor% specified in the contract *&= 5 the final deliverable has been sent to the custo!er is that the project is in the C#o!in Proce!! group. his is because for!al acceptance *a! not (een ac*ie"e' and other closure activities *a"e not (een performe'. *uch closure activities are so critical that a project cannot be finished without the!. &nce signed, a contract is legally binding D8>A** it is in "io#ation of applicable law. 1ll contracts, li%e all projects, have changes. he first step to handling changes that arise on the contracted project is to ana#y!e t*e impact! to t*e project, just as it would be on a project without contracts or purchase orders. he c*an e proce'ure! in the contract !ust also be fo##o%e' and all changes should be !ade forma##y. Changes are reque!te' through the Procurement process and are handled as part of the project 0nte rate' C*an e Contro# efforts. 1 project !anager 'oe! not *a"e t*e aut*ority to i!!ue c*an e or'er!, but !ust request the! fro! the contractin officer. 1 product or service fro! seller that !eets the project !anager7s needs, but not the quality specifications or other require!ents of the contract, should be refu!e' or send it bac% to the seller. If NO contract *&= can be developed and e$pertise cannot be found internally, then CP0F would be an incentive to the vendor to perfor! on or ahead of schedule. 8egotiations are !ore effectively centred on ri!/! to lower the price than on profit !argins. he best way for a cost esti!ate for the project, but it is early in the project creation process and there is very little project infor!ation, is to provide an Or'er of Ma nitu'e esti!ate. "erfor!ance reporting involves collecting and disse!inating infor!ation in order to provide sta%eholders with infor!ation about how resources are being used to achieve project objectives. his process includes status reporting and progress reporting and forecasting. It is not co!!on for alternatives to be discussed at the bidder conference. hey !ay be included in bids or proposals and discussed later. In the !iddle of the project, a seller tells you that he cannot get the resources to co!plete the project. In this situation, the seller has 8& breached the contract@ he has not failed to !eet a deliverable. It says he is having trouble !eeting it. Dntil a breach occurs, you do not need to ta%e legal action. he best thing to do would be to prevent the breach. Mou could help the seller find other resources. hey !ay be found internally, or you !ay have a better understanding of the availability of resources in your area. If you don2t have enough labour to audit invoices, you !ay want to use 5+, (", or (i$ed "rice Incentive (ee 6 ("I( , contract, but 8& Cost "lus (i$ed (ee 6 C"(( ,. In a C"(( contract the buyer pays all costs. he seller could be charging the buyer for costs that should not be allocated to the buyer. #ecause of the si0e and dollar a!ount of these type of contracts and because the ris% to the buyer is great, C"(( contracts need the !ost auditing. =hen the seller on your project abruptly goes out of business, the best thing of do is to hire a new seller i!!ediately under a 5+ contract. his is because a 5+ contract is usually quic% to e$ecute since the contract and scope are brief. he contract change control syste! includes a !ethod for controlling cost on the contract. 1 breach of contract occurs when part of the contract is not perfor!ed. he custo!er on a project tells the project !anager that he has run out of !oney to pay for the project. In this situation, the project !anager should enter ad!inistrative closure. 1 procure!ent audit is essentially a lessons learned. *ince all wor% and closure activities are co!pleted, any results will not change the status of the project fro! being co!plete. he project !anage!ent is not about !a%ing every decision with 1>> the tea! !e!bers, but rather involves !eeting with the appropriate 6 responsible , tea! !e!ber. he procure!ent process should lead toward for!al acceptance of the product of the project. 1 decision tree allows you to !a%e an infor!ed decision today based on probability and i!pact analysis. Mou can decide based on the e$pected !onetary
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value of each of your options. It allows you as well to ta%e into account future events for today2s choices. he only other factor to help deter!ine ris% reserves that would co!e after ris% response strategies would be the deter!ination of secondary ris%s. +onte Carlo analysis helps deter!ine the probability of co!pleting the project on any specific day, because it co!putes probabilities of events happening on specific days. :is% response planning !ust include the involve!ent of all ris% response owners and possibly others. :is% response owner does i!ple!ent contingency plans. he project !anager !ight be loo%ing for such a trigger and then !a%e sure everyone7s plans are in place. Dnderstand that NOT A77 ris% is transferred using a contract or the transference of a ris% does NOT remo"e a## i!pacts of the ris%. he best way to describe the outputs of :is% Identification is an un'er!tan'in of a #i!t of ri!/! 8 tri quantify the!. er! that are i!portant to be able to qua#ify andFor
he ris% response owner is assigned to carry out re!pon!e! and !ust %eep the project !anager informe' of AN@ changes. Contingency "lan is best describes as p#anne' re!pon!e! to ri!/ e"ent!. :is% !anage!ent cannot proceed W0T$O)T a prioriti0ed list of ris%s. he cause of poor ris% !anage!ent is because of #ac/ of a prioriti3e' #i!t of ri!/!. (unctional !anagers !*ou#' (e inc#u'e' in the Co!!unication +anage!ent "lan, require!ents gathering, ris% and other areas of project !anage!ent. 1 trend report shows perfor!ance over ti!e. 1 forecasting report loo%s only to the future. 1 status report is generally static 6relating to a !o!ent in ti!e,. he lac% of needed infor!ation is causing a !anager to suggest !ore !eetings. oo !any !eetings are a proble! on projects. he concept of infor!ation distribution is to deter!ine who needs what infor!ation and plan how to get it to the!. (or a new project !anager just hired, to gain the cooperation of others, the the best for! of power is for!al. &therwise is reward or e$pert. he rule of seven : if you have seven data points in a row on the sa!e side of the !ean, statistically the !ean has shifted, calling for action to correct the proble!. Inconsistency and nonpredictability are indications that the process is out of control.

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1 PROJECT MANAGEMENT FRAMEWORK

+onitor 5 Control "roject =or% Close "roject

Co!t 9ua#ity $R Comm unicati on! Ri!/

Project 0nte ration Mana ement :

Project ,cope Mana ement :

Project Time Mana ement :

Project Co!t Mana ement :

Project 9ua#ity Mana ement :

Project $R Mana ement :

Project Communication Mana ement :

Project Ri!/ Mana ement :

Project Procurement Mana ement :

Co!t 9ua#ity $R Comm unicati on! Ri!/

De"e#op Pre#iminary Project ,cope ,tatement :

Co!t 9ua#ity $R Comm unicati on! Ri!/

De"e#op Project Mana ement P#an :

Acti"ity Re!ource E!timatin :

Acti"ity Duration E!timatin :

Co!t -u' etin :

(unding >i!it :econciliation, such as cash flow.

Ri!/ Mana ement P#annin :

9ua#itati"e Ri!/ Ana#y!i! :

9uantitati"e Ri!/ Ana#y!i! :

Ri!/ Re!pon!e P#annin :

P#an Purc*a!e! 8 Acqui!ition! :

Co!t 9ua#ity $R Comm unicati on! Ri!/

Direct 8 Mana e Project E+ecution :

Perform 9ua#ity A!!urance :

Acquire 5 fina# 6 Project Team :

Project (rgani-ation Charts Sta''ing Management Plan

De"e#op Project Team :

Reque!t ,e##er Re!pon!e! :

Bevelop 9ualified *ellers >ist

Co!t 9ua#ity $R Comm unicati on! Ri!/

Monitor 8 Contro# Project Wor/ :

Cu!ulative C"I 6 C"I c , *chedule "erfor!ance Inde$ 6*"I,

Perform 9ua#ity Contro# :

Mana e Project Team :

A!phasi0es areas of agree!ent rather than areas of difference

"rovides only short-ter! solution

"rovides long-ter! resolution

"rovides ulti!ate resolution I %in 4 %in J

Ro#e! of t*e Project Mana er

Integrator Co!!unicator ea! >eader Becision +a%er Cli!ate CreatorF#uilder

"lanning &rgani0ing >eading Controlling

Ri!/ Monitorin 8 Contro# :

Co!t 9ua#ity $R Communic ation! Ri!/

:equest *eller :esponses *elect *ellers

PROFE,,0ONA7 8 ,OC0A7 RE,PON,0-070T@

Co!t 9ua#ity $R Commu nicatio n! Ri!/

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Cu!ulative C"I 6 C"I c , chedule "erfor!ance Inde$ 6"I,

:equest eller :esponses elect *ellers