PMP 5th Edition Course3 - Maysarah PDF

WELCOME
Name : Maysarah Al-Alami,

MBA,PMP, TOGAF9.0, EFQM Quality Expert, ISO/IEC 20000
Consultant.
E-mail : maysarah@hotmail.com
Class Duration :. 6:00 10:00
Breaks
To Be Discussed
Presentation Style:
- PP Presentation
- Discussions
- In - Class Practice ( Review Questions & Case Studies).
I hope you will have a fruitful course and wish you all good luck
Thank you
OV 1 - 1
Welcome
Please identify :
-Name
-Current role /previous experience
-Project management experience
-Why are you pursuing PMP certification ?
- What are your Expectations from this
course?
OV 1 - 2
The Project Management Institute - PMI

Project Management Institute (PMI) is the worlds leading not-forprofit membership association for the project management
profession.
Headquartered outside Philadelphia, Pennsylvania in the USA
More than 800,000 members and credential holders in more than
185 countries.
Concerned with the advancement of the project management
profession through globally recognized standards and certifications,
collaborative communities, an extensive research program
Issued & developed the PMBOK guide.
Making project management indispensable for business

results
OV 1 - 3
Whats a PMBOK Guide?
Known as A Guide to the Project Management Body of

Knowledge (PMBOK) which is developed by the Project
Management Institute (PMI).
Describes the concepts, skills, and techniques unique to

the project management profession
Identifies the knowledge that project managers should

have to effectively manage projects
Became the ultimate standard for Project Management.
Provides a number of best practices in project

management which proved over the years that when
combined with the right personal skills, it enhances the
chances of projects success.
OV 1 - 4
Course Outline
Examining Professional Project Management

Initiating a Project
Planning Project Work
Developing Project Schedules
Developing Cost Estimates and Budgets
Planning Project Quality, Staffing, and Communications
Analyzing Risks and Planning Risk Responses
Planning Project Procurements and Stakeholders management
Executing Project Work
Managing Project Procurement & stakeholders Engagement.
Monitoring and Controlling Project Work
Monitoring and Controlling Project Schedule and Costs
Monitoring and Controlling Project Performance and Quality
Monitoring and Controlling Project Risks , Procurements and
Stakeholders engagement
Closing the Project
OV 1 - 5
Lesson 1 :- Examining Professional Project

Management
Introduction to project Management.
Identify Project Management Processes
Identify the Interpersonal Skills for a Project Manager
OV 1 - 6
What is a Project?
A project is a temporary endeavor , undertaken to create a unique
product, service, or result within clearly specified time, cost and
quality constraints
Designed to Meet business objectives.
Temporary: Has a definite beginning and a definite end, not an
ongoing effort.
Unique: Doing something that has not done before , different in
some distinguishing way from all other products or services
A project ends when its objectives are met, or the project has been
terminated (Objectives cannot be met , need for the project no
longer exists ).
Example: Creating an intranet website that displays employee
information
OV 1 - 7
Projects and Strategic Planning
Why Do we need projects ??

- Meet business objectives S.M.A.R.T. ( Strategy).
Market demands
Organizational needs
Customer requests
Technological advances
Legal requirements
Social needs
Objectives
Projects
OV 1 - 8
Subprojects
An independently manageable component of an existing project.
Can have smaller subprojects.
Subprojects can be contracted:
External enterprise.
Another functional unit in the organization.
Example: Creating interior design for a solar powered car.

Subprojects contracted to vendors:
Designing of seats.
Air-conditioning system.
OV 1 - 9
Programs
A group of related projects that have a common objective.
Offer great control over constituent projects and deliver benefits that
the organization can use to meet its goals.
Larger, more comprehensive than projects.
No definite endpoint
Managed by a Program manager.
Example: A company expanding its retail chain.
Projects include:
Conducting market research to establish demand.
Constructing new stores.
Selecting franchise.
Designing the marketing campaign.
Consolidating customer base by establishing loyalty programs.
**** e-Gov program.
OV 1 - 10
Portfolio
A collection of projects, programs, and other work to achieve the
strategic business objectives of an organization.
Generally managed by a senior manager or senior management
teams.
The projects or programs in the portfolio may not necessarily be
interdependent or directly related. (PMBOK)
OV 1 - 11
Portfolio Management
OV 1 - 12
Relationships Among Project, Program, and

Portfolio Management
Projects are generally managed through programs and portfolios.
Sub Projects are at the lowest level, Projects , programs in the next level, and
portfolios at the top of the hierarchy.
Information flows from higher to lower levels during initial phases and from lower
to higher levels during later phases.
Relationships among individual projects and programs and portfolios
are interrelated with the organizational strategies and priorities.
OV 1 - 13
Operations
Are ongoing and repetitive tasks that produce the same outcome
every time they are performed.
Purpose of operations include:
Carrying out day-to-day organizational functions.

Generating income for to sustain the business.
Increasing the value of organizational assets.
Example: Operations in a new oil refinery.

Operations include:
Daily production.
Routine maintenance of the plant.
Employees wages.
Purchase of raw materials.
Grievance-handling.
Logistics.
Supply of finished products to the market.
OV 1 - 14
Projects Vs. Operations

Operation
Project
Repeating process
One of a kind, temporary process
No clear beginning or ending
Clear beginning and ending
Same output created each time the

work is performed
Output is unique
Everyone in work group performs

similar functions
Requires multi-disciplined team
Examples
Examples
Writing and publishing a book
Implementing a LAN
Hiring a salesman
Arrange for a conference
Opening a new shop
Producing the annual report
Writing a letter to a prospect

Hooking up a printer to a computer
Meeting with an employee
Attending a conference
Opening the shop
Writing a progress update memo
OV 1 - 15
Project Management Office (PMO)

A project management office (PMO) is a management structure that
standardizes the project-related governance processes and facilitates the
sharing of resources, methodologies, tools, and techniques.
The responsibilities of a PMO can range from providing project
management support functions to actually being responsible for the direct
management of one or more projects.
The specific form, function, and structure of a PMO are dependent upon
the needs of the organization that it supports.
The PMO may be involved in the selection, management, and
deployment of shared or dedicated project resources.
OV 1 - 16
Project Management Office (cont.)
A primary function of a PMO is to support project managers in a variety of

ways which may include :
Managing shared resources across all projects administered by the PMO;
Identifying and developing project management methodology, best
practices, and standards;
Coaching, mentoring, training, and oversight;
Developing and managing project policies, procedures, templates, and
other shared documentation.
Monitoring compliance with project management standards, policies,
procedures, and templates by means of project audits;
Coordinating communication across projects.
OV 1 - 17
Project Management Office (cont.)

There are several types of PMO structures in organizations, each varying
in the degree of control and influence they have on projects within the
organization, such as:
PMO Type
Description
Supportive
Provide a consultative role to projects by supplying templates, best

practices, training, access to information and lessons learned from
other projects.
This type of PMO serves as a project repository.
The degree of control provided by the PMO is low.
Controlling
Provide support and require compliance through various means.

Compliance may involve adopting project management
methodologies, using specific templates, forms and tools.
The degree of control provided by the PMO is moderate
Directive
Take control of the projects by directly managing the projects

The degree of control provided by the PMO is high.
OV 1 - 18
How do you Define project Success?
On Time
Within Budget
Scope Integrity
Maintaining Quality
Project constrains are :
Quality
Scope
Scope, Time, Cost, Quality, Resources, and risk.
It is the project managers duty to balance these often-competing

goals.
- Traditional project management theory stresses the Iron Triangle of
project success depends on (time, cost, and scope of project outputs)
OV 1 - 19
Project Management
The application of knowledge, skills, tools, and techniques to
project activities to meet project requirements. (According to the PMBOK)
Managing projects typically involves:
Scheduling.
Identifying requirements.
Establishing objectives.
Balancing quality, scope, time, and cost.
Addressing the concerns and expectations
of the stakeholders.
Example: Project manager responsibilities include:
Communicate cross-functionally.
Manage people who do not report directly.
Deliver the work on time, within specified budget
and quality specifications.
OV 1 - 20
Funny Project Definition
OV 1 - 21
Areas of Expertise for Project Managers

The project manager is the person assigned by the performing organization to lead
the team that is responsible for achieving the project objectives.
Project Management
Body of Knowledge
PMBOK Guide
Interpersonal
Skills
Application Area
Knowledge,
Standards
& Regulation
OV 1 - 22
Funny Project Definition
OV 1 - 23
Project Stakeholders
Person or Organization who has a business interest in the outcome
of a project or who is actively involved in its work.
Stakeholders may have competing interests , needs, priorities.
PM must identify the stake holders , their needs , secure their
participation as early as possible. Why ?
OV 1 - 24
Example: The New York Yankees proposed $800 million

Bronx stadium, 2006.
Stakeholders:
Staff, management, and owners of the New York

Yankees
Chambers of commerce
Engineers, architects, and construction
workers
Local residents
Major League Baseball

Local and statewide elected officials
Fans
- Positive stakeholders benefit from the successful outcome of a

project.( Business leaders , economists)
- Negative Stakeholders are keen on the negative outcome of a
successful project ( environmental groups , labor unions..)
OV 1 - 25
Types of Project Stakeholders

Project
Stakeholder
Description
Customer/User
Defines the needs for the project output.

Approves the project output.
Pays for the project output.
Sponsor
Provides financial resources for the project.

Is responsible for the project's success.
Authorizes the team to use resources.
Champions and supports the project manager and team.
Reviews progress and quality.
Project manager
Works with stakeholders to define the project.

Plans, schedules, and budgets project activities with team input.
Monitors performance and takes corrective action.
Acts as a liaison between the project team and other
stakeholders.
OV 1 - 26
Types of Project Stakeholders ( Cont.)

Project Stakeholder
Description
Project management
team
The project management team comprises members who are responsible

for managing project activities. ( Coordinators , secretary )
Project team
Contains people from different groups who possess knowledge on specific

subjects or have unique skill sets to carry out project work.
Sellers and business

partners
Sellers are external parties who provide components or

services needed for the project.
Business partners are external to the company and provide
specialized support to tasks such as installation,
customization, training, or support.
Society and government

(influencers)
Includes the public at large, the cultural values of a community,

and the overall quality of life of that community.
Includes the government which might be giving subsidies and
therefore wants to know what is happening.
Positive stakeholders benefit from the successful outcome of a project.( Business

leaders , economists)
- Negative Stakeholders are keen on the negative outcome of a successful
project ( environmental groups , labor unions..)
OV 1 - 27
Group PRACTICE
Define potential stakeholders and their types, For the following
projects :
1- Developing a new web site for your organization.

2- Building ( constructing a tower).
3- Organize a Medical conference.
4- Organizing an Educational trip to London.
5- Opening a new Supermarket.
6- Organizing a Basketball championship for West Asia countries.
7- Building a new cement factory.
OV 1 - 28
The Project Life Cycle

In order to improve management control , projects are broken down
into manageable sequential phases of work activities
A project life cycle is a collection of project phases that defines:
What work will be performed in each phase.

What deliverables will be produced and when.
Who is involved in each phase.
How management will control and approve work produced in each
phase.
A deliverable is a product or service produced or provided as part of a project.
OV 1 - 29
General Characteristics of a Project Life

Cycle
Projects differ and display certain common characteristics.
At the beginning, cost and staffing levels are low.
Reaches the peak once work is carried out.
Drops rapidly upon project completion.
Stakeholder influences, uncertainties,

and risks are:
High at project start.
Low at project end.
OV 1 - 30
Project Governance
A comprehensive Methodology carried throughout the life cycle of a
project to control it and ensure its success.
Contains project phase reviews.
Management review is done at the start of every phase.
OV 1 - 31
Governance Activities in the Project Life

Cycle
At the beginning of each phase:
Verify and validate the former assumptions.

Analyze risks.
Explain in detail the processes required to achieve a phases'
deliverables.
Phase-end review is necessary to ensure completeness and

acceptance.
Phase-end review signifies the start of the subsequent phase.
OV 1 - 32
Phase-to-Phase Relationships in a Project

Projects that are multi-phased follow sequential process.
Phase-to-phase relationship types:
Sequential ( consecutive phases , Phase starts only when previous

phase is complete , reduces level of uncertainty , long schedule)
Overlapping ( Phases can start prior to the completion of its preceding

phase , Increases level of risk , may cause rework)
OV 1 - 33
Progressive Elaboration
Successive layers of detail are added to the plans.
Throughout project life cycle , outputs of one phase are inputs for the
next phase.
Progressive detailing of the project management plan is often called
rolling wave planning
Project characteristics will be broadly defined in the early stages of the

project , but will becoming progressively more explicit and detailed as the
project team develops a better and more complete understanding of the
project.
Detail is added to plans in progressive elaboration
OV 1 - 34
Project Management Processes

A process
Is a sequence of activities performed to bring about a specific result in
response to a business need
Are All the activities that underlie the effective practice of project
management.(Good practices Improve success)
These processes ensure the effective flow of the project throughout its
life cycle..
There are 47 project management processes identified in the PMBOK
Guide .
- Define & Scoping ,

- Identify stakeholders
- Building a team
- Budgeting
- Scheduling
- Other Planning
- Working the plan

- Adapting
Specifications to
requirements
- Monitoring Progress
- Balancing Cost,
Time, Quality
- Tracking & Reporting
-Handing Off
-Closing Operations
Tailoring is determining which processes are appropriate for a given project

OV 1 - 35
Project Management Processes Inputs,

Tools and Techniques, and Outputs
Project management processes are implemented through using Inputs,
Tools & Techniques , and Outputs.
Input to
Process 2
Inputs
Info., Data,
New, Old
Tools and
Techniques
Methods ,
templates,
approaches, S.W
Outputs
End results,
deliverables
OV 1 - 36
Project Management Process Groups

The 47 Project management processes are organized into five groups:
Which One is the longest ?????

Process Group
Description
Initiating
Those processes performed to define a new project or a new phase of an

existing project by obtaining authorization to start the project or phase.
Planning
Used to create the project scope, refine objectives, and develop a strategy
to accomplish the work in the project or phase.
Executing
Involves carrying out the work mentioned in the project management plan
in order to meet project specifications.
Monitoring and
controlling
Includes regular monitoring of project performance and tracks progress

that was made in the project or phase. They also include changes that are
to be made to the plan when required and make corrective actions needed
to get back on track.
Closing
Involves finalizing the project activities, handing off the project or phase
output, gaining formal acceptance, tying up administrative and contractual
loose ends, and finally closing the project or phase.
OV 1 - 37
Project Management Process Group

Interactions
Process Groups Interact in a Project
Level of
Process
Interaction
Initiation
Process
Group
Planning Execution Monitoring &

Process Process Control Process Closing
Group
Group
Process
Group
Group
OV 1 - 38
Project Management Process Group

Interactions
Project management process groups interact with each other and
are not discrete (one-time) events.
These Groups interact with each other,

not discrete , processes repeatedly
overlap throughout the project
life cycle.
Monitoring &
Controlling Processes
Planning
Processes
Initiation
Processes
Closing
Processes
Execution
Processes
OV 1 - 39
P-D-C-A Cycle
.
Plan-Do-Check-Act
The Basic of TQM
The result from one part of the cycle turns into the input for another.
It is also known as Deming Cycle.
Act
Check
Plan
Do
OV 1 - 40
Group Practice
Specify some of the potential INPUTS, TOOLS & TECHNIQUES, and OUTPUTS
for the following processes :
1- Sending invitations to All Directors in your organization to attend
the Board meeting.
2- Painting the living room in your house .
3- Interviewing a new Candidate for a Project manager position in
your Organization.
4- Arranging the Hotel Booking In your country for three
consultants coming to your Organization.
5- Preparing to arrange for a PMP course.
6- Preparing to issue the annual report for your organization.
7- Arranging for a medical conference.
OV 1 - 41
Project Management Knowledge Area

Project Management Knowledge Area.
The 47 project management processes identified in the PMBOK Guide are
further grouped into ten separate Knowledge Areas.
A Knowledge Area represents a complete set of concepts, terms, and
activities that make up a professional field, project management field, or area of
specialization
Project management Knowledge area is an identified area of project
management defined by its knowledge requirements and described in terms of
its processes, practices, inputs, outputs, tools, and techniques
OV 1 - 42
Project Management Knowledge Areas

The TEN knowledge areas identified in the PMBOK Guide are :
1. Project Integration Management, describes the processes and activities that
integrate the various elements of project
2. Project Scope Management, describes the processes involved in ascertaining
that the project includes all the work required, and only the work required
3. Project Time Management, describes the processes concerning the timely
completion of the project. ( Project Schedule)
4. Project Cost Management, describes the processes ensuring that the project
is completed within the approved budget
5. Project Quality Management, describes the processes involved in assuring
that the project will satisfy the objectives for which it was undertaken
OV 1 - 43
Project Management Knowledge Areas

6. Project Human Resource Management, describes the processes that
organize and manage the project team.
7. Project Communications Management, describes the processes concerning
the timely and appropriate generation, collection, dissemination, storage and
ultimate disposition of project information.
(Who needs what , when , How and by whom )
8. Project Risk Management, describes the processes concerned with identifying,
analyzing and responding to project risks.
9. Project Procurement Management, describes the processes that purchase or
acquire products, services or results, as well as contract management
processes
10. Project Stakeholder Management, describes the processes required to
identify project stakeholders, analyze their expectations and their impact on the
project, and to develop appropriate management strategies for effectively
engaging them in project decisions and execution.
OV 1 - 44
Process Group and Knowledge Areas Mapping

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Collect Requirements
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 45
Process Group and Knowledge Areas Mapping

(cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management
Acquire Project Team

Develop Project Team
Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management
Plan Risk Management

Identify Risks
Perform Qualitative Risk
Analysis
Perform Quantitative Risk
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan Procurement Management
Conduct Procurements
Plan
Stakeholder
Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 46
Why do projects fail ?

- There are numerous studies that have quantified project failure rates
ranging from 40-60% which considered to be a really high percentage.
Unclear Objectives ( Must be SMART).
Lack of Planning
Unrealistic budgets, schedules, teams skills
Unrealistic Expectations
Lack of leadership, communication , definition of roles and responsibilities
Lack of top management support ( Frequent Changes).
Lack of Project Management culture ( Types of organizations)
OV 1 - 47
OV 1 - 48
Organizational Cultures and Styles

Projects are greatly influenced by the various cultures followed by
the organization.
Following are some of the Factors that form a part of organizational
culture:-
Factor
Description
Policies
The organizational policies and procedures influence the projects the

company undertakes.(how to implement a new strategy , HR policy, etc..)
Values
The values, beliefs, and expectations of an organization have a major impact

on the organizational culture. ( decision making , tolerance, preferences )
Management style
The management style of the organization is another factor that affects the
organizational culture. (View of leadership, hierarchy, and authority
relationships)
Work environment
The work ethics followed by the organization also constitute the organizational
culture. ( working hours flexibility , Nationality mix )
OV 1 - 49
Nationality Mix
OV 1 - 50
Enterprise Environmental Factors
Internal or external factors.

Have positive or negative influence on projects.
Support or limit the project management options.
Act as inputs for planning processes.
Examples include:
Organizational culture and structure.

The human resources pool.
Organizational infrastructure.
Marketplace conditions.
Stakeholder risk tolerances.
Political situations.
Project management information systems.
OV 1 - 51
Organizational Process Assets

Organizational process assets are the plans, processes, policies, and
knowledge bases specific to and used by the organization.
Assets can influence project success.
Act as inputs for planning processes.
Two categories of organizational process assets:
Processes and procedures.

Policies.
Procedures.
Guidelines.
Formal and informal plans.
Corporate knowledge base.
Lessons learned documents and templates.
Historical information.
Completed schedules.
Risk data.
OV 1 - 52
Risk Management !!!!!!!!
OV 1 - 53
Interpersonal Skills
Ability to work harmoniously and efficiently with others.
Being a project manager, it is important to develop a balance of
conceptual, technical, and interpersonal skills.
Interpersonal skills include:
Leadership.
Team building.
Motivation.
Communication.
Influencing.
Decision making.
Political and cultural awareness.
Negotiation.
OV 1 - 54
Leadership Skills
Ability to guide and inspire others to achieve results.
Ability to lead include:
Learning from one's mistakes.
Building relationships.
Taking initiatives.
Inspiring others through positive influence.
Leadership capabilities are critical at the beginning of a project or phase.
Motivate and inspire team members for higher project performance.
OV 1 - 55
Team Building Skills

Ongoing process of helping the project team to work collaboratively
rather than individually .
Cultivate a work environment that fosters teamwork.
Create a sense of ownership across the team.
Help in building mutual trust.
Exchange high quality information.
Effective project control.
OV 1 - 56
Motivation Skills
Improve team performance.
Accomplishes goals with high level of quality.
PM must understand that every team member is unique and has his
own expectations , values and objectives.
Motivational factors include:
Job satisfaction.
Challenging work.
A sense of accomplishment, achievement, and growth.
Financial compensation.
Rewards and recognitions.
OV 1 - 57
Communication Skills
Ensure everyone is kept informed, knows exactly what to do, and
has all of the information to do their jobs.
Clear expression of ideas.
A study revealed that Body language carries 55%, and Tone of Voice carries 38%,
while the words are only 7% of the impact of the message you send.
Effective communication enhances the ability to:
Motivate.
Delegate.
Organize.
Solve problems.
Obtain information.
Use effective listening techniques to:
impact of the message
Body
language,
55%
Tone Of
Voice, 38%
Words, 7%
Manage conflicts.
Take appropriate decisions.
Provide suitable solutions.
OV 1 - 58
Influencing Skills
Influential managers use persuasion instead of coercion.
Influence is based on:
Credibility.
Trust.
Support.
Collaboration.
Managers influence by demonstrating:
Good listening and responding skills.

Good sense of humor.
Ability to express oneself.
Being sociable and optimistic.
An obvious enthusiasm for their work.
OV 1 - 59
Decision Making Skills
Decisions are the result of collaboration and negotiation.

Establish credibility to affect the decision-making process.
Employ sound decision making skills.
Engage in active collaboration.
Foster critical thinking when interacting with project team.
OV 1 - 60
Six Phases of Decision Making
Phase
Involves
Define the problem
Exploring and clarifying the problem or situation.
Generate solutions or
alternatives for the problem
Brainstorming ideas, solutions, or alternatives for the problem.
Put ideas into action
Evaluating the pros and cons of the discussed alternative and selecting
the best solution for implementation.
Plan for solution action
Contributor's acceptance and commitment to make the solution work.
Plan for solution evaluation
Evaluation, post-implementation audit, and lessons learned.
Evaluate the outcome and

process
Evaluating how well the problem was solved and project goals
achieved.
OV 1 - 61
Political and Cultural Awareness Skills
Required to build an environment of trust.

Create a win-win atmosphere.
Cultural differences can either be individual or corporate.
When cultural differences (different backgrounds) are
misunderstood, it:
Impacts project progress.

Affects the decision making process.
Leads to unnecessary stress in the work environment.
Affects project performance.
Design a suitable communication planning method.
OV 1 - 62
Negotiation Skills
Approach used by individuals or organizations with mutual or
opposite interests to come together to reach a final agreement.
Negotiate successfully by:
Analyzing the situation.

Differentiating the needs and wants of both the parties.
Focusing on issues and interests rather than on positions.
Being realistic when making proposals.
Ensuring a win-win situation for both parties.
Communicating in an appropriate manner.
OV 1 - 63
Initiating a Project
Examine the Project Management Context

Examine Project Selection
Prepare a Project Statement of Work
Create a Project Charter
Identify Project Stakeholders
OV 1 - 64
The Project Management Framework

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 65

(Cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management
Develop Human Resource Plan

Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management

Identify Risks
Analysis
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan
Stakeholder
Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 66
Project Selection - Business Requirements
Business requirements are the pressing organizational needs or

market stimuli that drive decision-makers to sponsor projects and
prioritize competing projects.
Also referred to as ( problems ) or (opportunities).--- SWOT ??
May Include :
Market demands
Customer requests
Legal requirements
Social needs
OV 1 - 67
Identify Business needs

SWOT Analysis
Strengths

Weaknesses

SWOT
Opportunities
Threats
OV 1 - 68
Practice SWOT analysis
Each member in your group is working in an Organization

Select one Organization from your Group.
Perform a Simple SWOT analysis on the selected Organization.
Choose a Group representative(s) to present the analysis.
10 minutes
OV 1 - 69
Project Selection Criteria

Project Selection : Is the act of choosing a project from among competing
proposals. (Limited Resources (HR , financial ))
Project Selection Criteria : The standards and measurements an
organization uses to select and decide projects priority.
- Selected project Must be clearly linked to one or more strategic goals.
- Qualitative criteria deal with the projects fit with org. capabilities .
- Quantitative criteria specify financial targets that the project must meet.
Example: Proposed integration for Customer and
financial databases
Criteria:
Links to the strategic goal of increased
technological advantage
Can be produced using only internal resources ( Qual. or Quan. ?)
Meets goal of increasing new sales revenue by 10% ( Qual. or Quan. ?)
OV 1 - 70
Project Selection Criteria
As a professional project manager , you will

typically not be responsible for selecting the
project that your organization will pursue , but
you need to understand the methodologies that
decision makers use when choosing which
projects pursue, prioritize , and fund.
OV 1 - 71
Project Selection Decision Methods

1-Capital Budgeting
Method of quantitative analysis.
Helps senior executives make determinations about when and
whether to make significant investments in capital expenditures
such as:
New equipment
Machinery
Facilities
Usually used in large projects , purchase of fixed assets
OV 1 - 72

2-Scoring and Rating Systems
A scoring and rating system Uses Mathematical modeling
to find the best Available Outcome
System
Description
Decision tree
Selection criteria arranged along the branches of a tree

flowchart. Project moves as long as it meets criteria
Weighted factor
Different criteria may be weighted and scored for

comparison
Q-sorting
Groups of people rate the relative priority of a number of

projects. Sorting projects Cards
Delphi
technique
Experts are located remotely , Consensus is achieved

through group ranking on a 0-10 scale. Individuals remain
anonymous.
OV 1 - 73

- Scoring and Rating Systems
Weighted factor
Different criteria may be weighted and scored for comparison
Criteria (Variable)
Weight (5)
Project1 (Product1)
Score (10)
Project2 (Product2)
Score (10)
Project3 (Product3)
Score (10)
Total
OV 1 - 74

3- Feasibility Analysis
- An analysis that provides technical and operational data
to management to help determine if a project will work.
- Usually Based on Expert Judgment .
Includes:
Description of the problem
Summary of historical data
Evaluation of available technologies
Evaluation of organizations technical capabilities
Cost and time estimates .
Assumptions and constraints
Recommendations on best alternative to pursue.
Statement of project goals and milestones. (Define??)
A milestone indicates a significant event in the project. It
Indicates the beginning or ending of major phases. -Excellent
reporting & Tracking tool
OV 1 - 75

4- Cost-Benefit Analysis
A comparison of the predicted costs versus the predicted benefits of a
project.
- Costs include : current operation costs , expected project costs.
- Benefits include: Quantifiable Benefits (Increase Sales , Reduce cost)
Intangible Benefits (enhanced image , brand awareness

Example: Increased e-commerce capability for retail organization
Predicted cost = $25,000
Predicted increase in sales: 5% of $1 million = $50,000
Predicted net benefit = $25,000
Intangible Benefits (enhanced image)
OV 1 - 76
Group Practice - Weighted factor

Using the Weighted Factor method .
Select the best Available option from the following set of options.
List at least 4 to 5 different criterias.
G1 : Working in the Private or the Government Sector .
G2 : Having mobile Services from Provider 1 or Provider2.
G3 : Travelling to France or Malaysia in your summer vacation.
G4 : Buying Which smart phone Samsung S4 Or i-phone 5
G5 : Buying a New salon or a 4X4 car .
G6: studying in Private or government universities
OV 1 - 77
Project Charter
A document that provides a clear, concise description of the business needs
that the project is intended to address.
It Makes
a Project Official.
It Authorizes the project manager to lead the project and draw on organizational
resources as needed.
Who Issues the Project Charter ??? Who Creates it ???
A project initiator (Internal) , or sponsor (external) to the project organization
issues the project charter. Usually the PM creates it. (PMBOK)
OV 1 - 78
Project Charter
A document that provides a clear, concise description of the
business needs that the project is intended to address.
Project charter for the OGC PM Training Roll-Out project

OV 1 - 79
The Develop Project Charter Process

The process of developing a document that formally authorizes the
existence of a project .
Provides the project manager with the authority to apply organizational
resources to project activities.
OV 1 - 80
Project Statement of Work - Input

SOW is a document that describes the products or services that the
project will supply.

SOW Specifies the work that will be done during the project and
defines the business needs that it is designed to meet.
For Internal projects , SOW may be supplied by the projects
sponsor in response to an organizational need.
For External projects , SOW may be supplied by a potential customer
as part of a bid document ( part of RFP , RFI , Contract).
OV 1 - 81
Project Statement of Work (SOW)
OV 1 - 82
Business Case - Inputs

A document that:
Justifies investments made for a project and determines the
benefits expected from the project.
Describes how a particular investment is in accordance to the
organization's policy.
Reasons of creating a business case include:
Market demands
Customer requests
Legal requirements
Social needs
OV 1 - 83
Agreements - Inputs
Agreements are used to define initial intentions for a project.

Agreements may take the form of contracts, memorandums of
understanding (MOUs), service level agreements (SLA), verbal
agreements, email, or other written agreements.
Typically, a contract is used when a project is being performed for an
external customer.
OV 1 - 84
Enterprise Environmental Factors - Input
Internal or external influences that affect project success.

Include but not limited to:
Company culture
Governmental or industry standards,
Stakeholders risk tolerance
Human resources
Information Systems
Organization infrastructure, and
Marketplace conditions.
OV 1 - 85
Organizational Process Assets - Input
Organizational standard processes, policies, and standardized

process definitions for use in the organization;
Templates (e.g., project charter template)
Historical information and lessons learned knowledge base.
OV 1 - 86
Expert Judgment & Facilitation Techniques

- T&T
Expert Judgment is the Knowledge provided base upon expertise
in a knowledge area , an application area , an industry , or subject
relevant to the project.
Internal & External Sources for EJ:
Other units within the organization,

Consultants,
Stakeholders, including customers or sponsors,
Professional and technical associations,
Industry groups,
Subject matter experts (SMEs) , and
Project management office (PMO).
Facilitation Techniques
Brainstorming, problem solving, and meeting management are

examples of key techniques used by facilitators to help teams and
individuals accomplish project activities.
OV 1 - 87
Project Charter - output

Includes:
Project purpose or justification.
Measurable project objectives.
High-level requirements,
High-level project description,
High-level risks,
Summary milestone schedule,
Summary budget
Project approval requirements (what constitutes project success,
who decides the project is successful, and who signs off on the
project),
Assigned project manager, responsibility, and authority level, and
Name and authority of the sponsor or other person(s) authorizing
the project charter.
OV 1 - 88
The Identify Stakeholders Process

A process where the project manager:
Identifies all stakeholders (people or Organizations ) that could impact or

be impacted (Directly or Indirectly) by the project outcomes.
Documents relevant information regarding stakeholder interests,

involvement, and impact on project success.
OV 1 - 89
The Identify Stakeholders Process - Inputs

Project Charter
Provides information about Internal & External Parties .(Project Sponsor ,
Customers , Key team members , groups and departments)
Procurement Documents
If a project involves procurement activity or is based on an established
contract, the parties in that contract are key project stakeholders.
Other relevant parties, such as suppliers, should also be considered as
part of the project stakeholders list.
Enterprise Environmental Factors

Culture and Structure of the Organization.
Government or Industry Standards
Availability of PM system.
Organizational Process Assets:
Stakeholder register templates
Lessons learned and Stakeholder registers from previous projects.
OV 1 - 90
Stakeholder Analysis = T&T

The formal process of identifying all of the stakeholders of a project.
Systematically gathering and analyzing their information to
determine whose interests should be taken into account throughout
the project.
It identifies the interests, expectations, and influence (Impact ,
Support) of the stakeholders .
It also helps identify stakeholder relationships that can be leveraged
to build coalitions and potential partnerships to enhance the projects
chance of success.
The stakeholder analysis process

enhance their support and
mitigate potential negative
impacts
OV 1 - 91
Meetings = T&T
Profile analysis meetings are project meetings designed to develop
an understanding of major project stakeholders.
Can be used to exchange and analyze information about roles,
interests, knowledge, and the overall position of each stakeholder
facing the project.
OV 1 - 92
Stakeholder Register - output

This Document contains all details related to the identified
stakeholders including, but not limited to:
Identification information. Name, organizational position, location,
role in the project, contact information;
Assessment information. Major requirements, main expectations,

potential influence in the project.
Stakeholder classification. Internal/external,
supporter/neutral/resistor, etc.
The stakeholder register should be updated on a regular basis, as

stakeholders may change or new ones identified throughout the life
cycle of the project.
OV 1 - 93
Stakeholder Register
Stakeholder register for the OGC PM Training Roll-Out project

OV 1 - 94
Stakeholder Classification
Power/interest grid is a classification model used for stakeholders
analysis :
Grouping the stakeholders based on their level of authority (power)
and their level of concern (interest) regarding the project outcomes.
Key Players
OV 1 - 95
Planning Project Work

With Your project defined at a high level and formally authorized by the
sponsor, your are ready to begin planning your project:In This lesson : Identify the Elements of a Project Management Plan Develop
Project Management Plan
Document Stakeholder Requirements ( Collect requirements)
Plan Scope management
Create a Scope Statement ( Define Scope)
Develop a Work Breakdown Structure (WBS)
As a Project Manager , It is up to you to define how the project will
be carried out. You will also be responsible for identifying the
stakeholders needs Satisfaction.
OV 1 - 96

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 97
The Project Management Plan

The project management plan is the document that describes how the project
will be executed, monitored, and controlled. It integrates all of the subsidiary
plans and baselines from the planning processes
The subsidiary plans may be formal or informal , highly detailed or broadly
framed and are created base on project requirements.
Subsidiary Plan
Description
Scope management plan
Provides guidance on the project scope.
Requirements management plan
Specifies the planning for requirements of the project.
Schedule management plan
Describes the plan to control the project schedule.
Cost management plan
Describes the plan to control project costs.
Quality management plan
Describes the implementation of the performing organization's

quality policy throughout the project.
Process improvement plan
Analyzes processes to identify activities that enhance their value.
Human resource plan
Provides guidance on effective human resource management.
Communications management plan
Documents the approach to communicate efficiently and effectively

with the stakeholders.
Risk management plan
Describes how risk management is structured and performed on

the project.
Procurement management plan
Describes how the procurement processes will be managed.
OV 1 - 98
The Develop Project Management Plan

Process
Develop Project Management Plan is the process of defining, preparing,
and coordinating all subsidiary plans and integrating them into a

comprehensive project management plan.
OV 1 - 99
The Plan Scope Management Process

Plan Scope Management is the process of creating a scope
management plan that documents how the project scope will be

defined, validated, and controlled
OV 1 - 100
The Plan Scope Management Process Outputs

Scope Management plan :
The scope management plan is a component of the project or program
management plan that describes how the scope will be defined, developed,
monitored, controlled, and verified.
Requirements Management Plan

The requirements management plan is a component of the project
management plan that describes how requirements will be collected ,
analyzed, documented, and managed
OV 1 - 101
The Collect Requirements Process

Collect Requirements is the process of determining, documenting,
and managing stakeholder needs and requirements to meet project

objectives
The collected requirements ; form the basis for planning the cost ,
schedule, and quality of the projects.
OV 1 - 102

Tools & Techniques
Interviews :
An interview is a formal or informal approach to discover information from
stakeholders by talking to them directly.
Focus Groups :
A trained moderator guided interactive discussion that include
stakeholders & SMEs to obtain their expectations and attitudes towards
the proposed product , service, or result of the project
Facilitated Workshops :
Group focused sessions that bring key cross-functional stakeholders
together to define product requirements.
OV 1 - 103
Group Creativity Techniques

Group activities organized within organizations to identify project or
product requirements for a project.
Group Creativity Technique
Description
Brainstorming
Used to generate and create multiple ideas related to

project and product requirements.
Nominal group technique
A voting process is used in this technique to rank the most

useful ideas obtained through brainstorming.
Idea or mind mapping
A technique in which ideas created brainstorming sessions

are consolidated into a single map to reflect commonality
and differences in understanding, and generate new ideas.
Affinity diagram
A technique that allows large numbers of ideas to be

classified into groups for review and analysis.
OV 1 - 104
Brain Storming
OV 1 - 105
Mind Mapping
OV 1 - 106
Affinity Diagram
OV 1 - 107
Group Decision Making Techniques T & T

These techniques:
Are assessment processes that assess multiple alternatives to arrive at
an expected outcome.
Are used to generate, classify, and prioritize project or product
requirements.
Various methods are adopted to reach a group decision.
Method
Description
Unanimity
Everyone in the group agrees on a single course of action.
Majority
Requires support from more than 50% of the members of the group
to indicate the selected decision.
Plurality
The largest batch in the group decides for the group even if a
majority is not achieved.
Dictatorship
One individual makes the decision for an entire group.
OV 1 - 108

Tools & Techniques
Questionnaires and Surveys :
Questionnaires and surveys are written sets of questions designed to quickly
accumulate information from a wide number of respondents
Observations
Observations provide a direct way of viewing individuals in their environment
and how they perform their jobs or tasks and carry out processes .
Prototypes
Prototyping is a method of obtaining early feedback on requirements by
providing a working model of the expected product before actually building it.
Context diagrams
visually depict the product scope by showing a business system (process,
equipment, computer system, etc.), and how people and other systems
(actors) interact with it.
OV 1 - 109
Prototype
Prototype
OV 1 - 110
Context diagrams
Online Shopping System Context diagram

OV 1 - 111
Requirements Documentation - output

Describes how individual requirements meet the business
requirements of the project.

Requirements may start out at a high level and become
progressively more detailed as more about the requirements is known.
The requirements documented must be:
Unambiguous
Traceable
Complete
Acceptable to key stakeholders
**
See Sample requirement Document.
OV 1 - 112
Requirements Documentation (Cont.)
A sample requirements documentation
OV 1 - 113
The Requirements Traceability Matrix output

A tabular document that links the project or product requirements to
their origin and deliverables that satisfy them , and traces them
throughout the project life cycle.
Links each requirement to
Requirements to business needs, opportunities, goals, and objectives;

Requirements to project objectives;
Requirements to project Scope;
Requirements to product design;
Requirements to test strategy and test scenarios; and
High-level requirements to more detailed requirements.
OV 1 - 114
The Requirements Traceability Matrix

(Cont.)
A sample requirements traceability matrix
OV 1 - 115
The Project Scope Statement

Without a strong scope statement , you could end up spending valuable time
and resources on work that is not even supposed to be part of your project.
A scope statement Defines the project and what it does and does not
need to accomplish.
Created at an early stage in the project. Why ??
Reflects the stakeholders common understanding of major activities
to be performed and what should and should not be included in the
project.
Typically includes:
Project objectives, deliverables, and requirements.

Project constraints and assumptions.
Product acceptance criteria.
OV 1 - 116
The Project Scope Statement (Cont.)
A sample project scope statement

OV 1 - 117
Components of the Scope Statement
Content
Description
Project objectives
The measurable success criteria for the project. (SMART).
Product description
The characteristics of the product, service, or result of the project

undertaken.
Project requirements
The conditions or capabilities the deliverables of the project must

meet.
Project deliverables
Any tangible, measurable result or outcome required to complete

a project or portion of a project.
Project boundaries
The parameters of what is and what is not included within a

project.
Product acceptance
criteria
The process and criteria for accepting finished products or

services resulting from a project.
Project constraints
Factors that limit the way that the project can be approached.
Project assumptions
Statements that must be taken to be true in order for the planning

to begin.
OV 1 - 118
The Define Scope Process

Define Scope is the process of developing a detailed description of
the project and product.
It describes the project, service, or result boundaries by defining which
of the requirements collected will be included in and excluded from the
project scope
OV 1 - 119
Product Analysis - T&T

Used in projects that have a product as a deliverable.
Used for translating high-level product descriptions into tangible

deliverables.
Product analysis includes techniques such as product breakdown,
systems analysis, requirements analysis, value analysis.
OV 1 - 120
Alternatives Generation - T&T

Alternatives generation is a technique used to develop as many
potential options as possible in order to identify different approaches to

execute and perform the work of the project.
Technique
Description
Lateral thinking
A creative approach to define alternatives in which the team

attempts to think about options in new ways and generate a fresh
solution. ( Out of the Box)
Brainstorming
A general creativity technique for generating possible alternatives.

The goal is to generate as many ideas as possible from as many
team members as possible.
Delphi technique
A group technique that extracts and summarizes anonymous

group input to choose among various alternatives.
OV 1 - 121
Work Breakdown Structure (WBS)

WBS is a logical grouping of project deliverables , arranged in a hierarchical
structure. Can be grouped by (Major Deliverables , Phases, Responsibility ,
Geography)
It defines the total scope of work required to complete the project.
The deliverables and their component sub-deliverables are represented on
the WBS in levels of descending order.
The smallest deliverable that cannot be further subdivided is called a
Work Package
A work package must describe a deliverable that can be Scheduled ,
budgeted and assigned to an individual or group.
A WBS is a deliverable-oriented grouping of the work involved in a project
that defines the total scope of the project (PMBOK)
The goal is to eventually break the work out/down to the point where
responsibility and accountability can be assigned to a specific person or
team of people for each unit of work.
OV 1 - 122
Work Breakdown Structures (WBS)
Maps to
project
scope
statement
Subdivides
project
work into
smaller
pieces
Helps to identify deliverables

OV 1 - 123
Work Breakdown Structure

WBS is a hierarchy of tasks in a project. It is represented by
alphanumeric codes that identify the unique place of each task in the
structure.
OV 1 - 124
Work Breakdown Structure (WBS)
OV 1 - 125
The Create WBS Process

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

It provides a structured vision of what has to be delivered.
OV 1 - 126
Create WBS Tools & Techniques Decomposition

Subdivision of project deliverables into smaller, more manageable
components until the work and deliverables are defined to the work
package level. (manageable , measurable ,assignable)
It involves the following activities :
Identifying and analyzing the deliverables and related work,
Structuring and organizing the WBS,
Decomposing the upper WBS levels into lower level detailed
components,
Developing and assigning identification codes to the WBS components,
Verifying that the degree of decomposition of the work is necessary and
sufficient.
OV 1 - 127
Code of Accounts ( Identification Codes)

Any system for numbering the elements in a WBS.
Helpful in performance, reporting, cost.
Example: School districts uniform code of accounts.
Record, track, document revenues and expenditures
Consistent in every school
32 / 101 / 417
Function / Category / Program
(Consultant Fees)
(Special Education)
(Professional Expenditures)
Sample code of accounts
*** Bank Account no. code of identification example

OV 1 - 128
Create WBS outputs - Scope Baseline
Includes
Project scope statement. The project scope statement includes

the product scope description, and the project deliverables, and
defines the product user acceptance criteria.
WBS. The WBS defines each deliverable and the decomposition

of the deliverables into work packages.
WBS dictionary. The WBS dictionary has detailed description

of work and technical documentation for each WBS element.
OV 1 - 129
Information in the WBS Dictionary

Code of account
identifier,
Description of work,
Responsible
organization,
List of schedule
milestones,
Associated schedule
activities,
Resources required,
Cost estimates,
Quality requirements,
Acceptance criteria,
Technical references, and
Contract information.
OV 1 - 130
Group Practice. - create WBS

As a Project manager Create a simple ( 4 Levels ) WBS for one of
the Following projects:
G1 : Developing a new website for your organization.
G2 : Organizing a Conference about higher education in your
country
G3 : Organizing an Educational Trip to London
G4 : Preparing and publishing the Annual report for your
Organization.
G5:
Moving your Office to a new location.
G6 : Preparing a marketing campaign for your product.

OV 1 - 131
Developing Project Schedules
Plan Schedule Management.

Create an Activity List
Create a Project Schedule Network Diagram
Estimate Activity Resources
Estimate Duration for Project Activities
Develop a Project Schedule
Identify the Critical Path
Optimize the Project Schedule
Establish a Schedule Baseline
OV 1 - 132

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 133
The Plan Schedule Management Process

The process of establishing the policies, procedures, and documentation
for planning, developing, managing, executing, and controlling the project
schedule.
It provides guidance and direction on how the project schedule will be
managed throughout the project
OV 1 - 134
The Plan Schedule Management Process

Tools & Techniques :
Analytical Techniques
strategic options to estimate and schedule the project such as:

scheduling methodology, scheduling tools and techniques,
estimating approaches, formats, and project management software.
Output:
Schedule Management Plan
A component of the project management plan that establishes

the criteria and the activities for developing, monitoring, and
controlling the schedule.
It may be formal or informal, highly detailed
or broadly framed, based upon the needs of the project.
OV 1 - 135
Activities
The first step in developing a project schedule is to accurately define project
Activities
To make sure that Activities are tied to project scope , and can Mitigate
Scope Creep ??
Scope creep refers to uncontrolled changes in a project's scope. This
phenomenon can occur when the scope of a project is not properly defined,
documented, or controlled. It is generally considered a negative
occurrence, and thus, should be avoided.
OV 1 - 136
Activities
Element of project work that requires an action to produce a
deliverable.
Have an expected duration.( Begin & end / Start & Finish))
Consume budget and/or human resources.
S
Activity
Are named in verb-noun format.
Example: Activities in a company project.

Revise user manual.
Noun (Deliverable)
Verb (Action)
Make a sales presentation.
Revise user manual
Reserve conference room.
OV 1 - 137
The Define Activities Process

The process of identifying and documenting specific activities that
must be performed to produce the project's deliverables.
Activities are usually defined by decomposing the work packages.
OV 1 - 138
The Define Activities Process - T&T

Decomposition
Subdividing the project work packages into smaller, more
manageable components called activities.
Rolling Wave Planning

A form of progressive elaboration planning where the work to be
accomplished in the near term is planned in detail and future work is
planned at a higher level .
OV 1 - 139
The Define Activities Process - Outputs

Activity List
A comprehensive list including all schedule activities required on
the project
Activity List is a fundamental building block for effective project
schedule and budget.
Activity Attributes.
Activity attributes extend the description of the activity by
identifying the multiple components associated with each activity

( Duration , cost , resources..etc.)
. The components for each activity evolve over time.
Milestone List
List of all significant points or events in the project.
OV 1 - 140
Activity List
OV 1 - 141
Completed Activity List
Work Package WBS#: 1.1.3.1
Title: Initial Web site Design
Work package assigned to: Amy Phillips

Description: Approved color online comps of home page and at least one other page of
company Web site. Design should include interface elements and proposed functionality.
WBS#
Activity
1.1.3.1.1
Research requirements
1.1.3.1.2
Produce paper comps

of 3 designs
1.1.3.1.3
Review comps & select

design
1.1.3.1.4
Produce online comps

of selected design
1.1.3.1.5
Review and approve

online comps
Responsible
Party
Estimated Duration
(Hours)
Attributes
OV 1 - 142
The Sequence Activities Process

After Creating Activity List , you can sequence project activities and define
relationships. (Network Diagram)
Sequence Activities is the process of identifying and documenting
relationships among the project activities.
It defines the logical sequence of work to obtain the greatest efficiency
A
S
t
a
r
t
F
i
n
i
s
OV 1 - 143
h
Activity Dependencies
A logical relationship that exists between two project activities.
Relationship indicates whether the start of an activity depends
on an event or input from outside the activity
All Activities , except the first and the last , have
at least one predecessor and successor.
.
OV 1 - 144
Types of Activity Dependencies

Types of dependencies include:
Dependency
Description
Mandatory
Inherent to the work itself and are usually affected by physical

constraints.
Discretionary
Defined by the project and project management team at their

discretion.
External
Depends on inputs from outside the project activities.
Mandatory : Books cant be bound before they are printed. (Restricted)

Discretionary : ( Flexible - Unrestricted) The sponsor decides to see the cover first
, the project manager decides to finish the book cover design first.
External : The book cant be printed before the paper shipment arrives. (Restricted)
OV 1 - 145
Precedence Relationships
The logical relationship between two activities that Indicates the
sequence in which activities are to be performed .(Which one should be
performed first and which one should be performed later)
S
Activity
Each activity has two open point ; Start and Finish points
The Activity which should come first is called Predecessor Activity (A),
and the Activity that should come later is called the Successor Activity (B)
Relationship
Description
Finish-to-start (FS)
Activity A must finish before activity B can start.

Ex.: The awards ceremony (B) cannot start until the race (A) has finished
Finish-to-finish (FF)
Activity A must finish before activity B can finish.

Ex.: Writing a document (A) is required to finish before editing the document
(B) can finish
Start-to-start (SS)
Activity A must start before activity B can start.

Ex.: Level concrete (B) cannot begin until pour foundation (A) begins.
Start-to-finish (SF)
Activity A must start before activity B can finish.

Ex.: The first security guard shift (B) cannot finish until the second security
guard shift (A) starts.
OV 1 - 146
Precedence Relationships
***see practice 3
OV 1 - 147
Lag
A delay in the start of a successor activity.
The modification in a logical relationship that delays the start of a
successor activity.
Is determined by an external or mandatory dependency.
Considered as a positive value since it adds time to the overall
duration of the project.
EX :The permit application takes six weeks to process.
FS relationship with lag

OV 1 - 148
Lead
A change in a logical relationship that allows the successor
activity to start before the predecessor activity ends in an FS
relationship.
Implemented when a successor activity needs to be
accelerated in order to shorten the overall project schedule.
Can Be Called ???
Overlap
EX:-Programmer starts 4 days
before the design is approved
( Risk)
FS relationship with lead

OV 1 - 149
Project Schedule Network Diagrams- output

Graphical representation of the sequence of project activities and
the dependencies among them.
Read from left to right or top to bottom.
May include the entire project or specific parts of it.
Very detailed or more High level.
Generated Manually or with Software
A project schedule network diagram
OV 1 - 150
Precedence Diagramming Method (PDM)

Produces a project schedule network diagram that uses rectangular
boxes, or nodes, to represent activities and arrows to represent
precedence relationships between activities.
Activity
Characteristics:
Read from left to right.
Shows duration in nodes.
Created manually or with software.
Predecessors
A
B
C
A,B
E
F
D,F
D ,G
OV 1 - 151
How to Create a Project Schedule Network

Diagram
To create a PDM project schedule network diagram:
1. Determine the dependencies among project activities using your
activity list and product descriptions.
2. Identify predecessor and successor activities.
3. Create nodes for all activities with no predecessor activities or
dependencies.
4. Create nodes for all activities that are successor activities.
5. Draw arrows from the predecessor activities to the successor activities.
Continue drawing the network diagram, working from left to right until all
activities are included on the diagram and the precedence relationships are
indicated by arrows.
Include any known lags or leads.
6. Verify the accuracy of your diagram.
OV 1 - 152
Precedence Diagramming Method (PDM)

(Practice.)
Activity
Predecessors
A
B
B,F
C, G
F
G
A project schedule network diagram using the precedence diagramming method

OV 1 - 153
Summary Activities
A group of related schedule activities that, for reporting purposes, is
shown as a single aggregate activity in a bar chart or graph.
Also called hammock activity.
A summary activity in a network diagram
OV 1 - 154
Project Resources
Any useful material, object, or person needed for project completion
Labor, materials, facilities, equipment, consultants, services,
supplies, utilities
Vary in size , cost and function.
Resources determines the duration and the cost details for each
Activity. Why?
Almost always limited in quantity , and therefore require thoughtful
allocation
Example : Health and Wellness Seminar Project Resources:
Conference room
Brochures, pamphlets, materials
Viewing consultants
Vendors
OV 1 - 155
The Estimate Activity Resources Process

The process of estimating the type and quantities of material, human
resources, equipment, or supplies required to perform each activity
Estimate should include the quantities & availability of each resource.
OV 1 - 156

- Inputs
Resource Calendars
Information on which resources (such as people, equipment, and

material) are potentially available during planned activity period.
Resource calendars specify when and how long identified project
resources will be available during the project.
Risk register ( To be discussed later)
Risk events may impact resource selection and availability.
Activity Cost Estimates ( To be discussed later)
The cost of resources may impact resource selection
OV 1 - 157

T &T
Alternatives Analysis
Identifies different ways of accomplishing activities and the

different resources ( types , quantity , Skills) required by each
method.
Published Estimating Data
Studies and commercial publications about production rates

,resource cost, and labor requirements , for different countries
and regions.
Bottom-Up Estimating
When an activity cannot be estimated with a reasonable degree of

confidence, the work within the activity is decomposed into more
detail. The resource needs are estimated. These estimates are
then aggregated into a total quantity of the activitys resources.
Project management Software

A software that has the capability to help plan, organize, and
manage resource pools and develop resource estimates.
OV 1 - 158

output
Activity Resource Requirements
Description of identified resources (and quantities) necessary to

complete project activities.
Resource Breakdown Structure
A hierarchical structure of the identified resources by resource

category and resource type. Examples of resource categories
include labor, material, equipment, and supplies , resource type
includes skills and grade level.
OV 1 - 159
The Estimate Activity Durations Process

The act of estimating the quantity of work that is required to complete
individual project activities using the available resources.
Without task durations , your project plan would be nothing more than a To-Do
list. ( No Schedule).
Duration : - The time interval between the start and end time of an activity
Duration estimation is performed by the PM in consultation with the project
team members , SMEs , Historical data and Similar projects
Range of variance.+ _ (Days , %)
Duration estimation Calculates the amount of effort ( work) and resources
required to arrive at an estimate of time to complete each activity.
Activity Duration = Total Work / Resource Units

OV 1 - 160

The process of estimating the quantity of work that is required to complete
individual project activities using the available resources.
OV 1 - 161

Tools and Techniques
Tool or Technique
Description
Analogous Estimating
A Top Down estimating using durations of previous similar activities to

estimate future activities
Parametric Estimating
Algorithm is used to calculate cost or duration based on project

parameters ( Dimensions , size , performance)
Three Points Estimates
uses Most likely , Optimistic , Pessimistic estimations (PERT)

(Optimistic +(4*most likely)+Pessimistic)/6
Reserve Analysis
Extra time added that can serve as buffer ( Contingency reserve)
Three Points Estimates

Program Evaluation and Review Technique (PERT) analysis calculates an
Expected (E) activity duration using a weighted average of these three
estimates:
E = [O + P+ (4*M)] /6 ,
where M= Most likely , O = Optimistic , and P = Pessimistic .
OV 1 - 162
Project Schedules
Project schedule includes a planned start date and planned finish date for
each activity.
It is an output of a schedule model that presents linked activities with
planned dates, durations, milestones, and resources.
. Used to:
Coordinate activities into a master plan.
Track schedule performance., used us a progress reporting tool.
OV 1 - 163
Project Schedules
OV 1 - 164
The Develop Schedule Process

Develop Schedule is the process of analyzing activity sequences,
durations, resource requirements, and schedule logical relationships to
create the project schedule model.
OV 1 - 165
Schedule Network Analysis - Input

Schedule network analysis is a technique that generates the project
schedule model.
Three methods:
Critical Path Method (CPM).

What-if scenario.
Resource Optimization.
OV 1 - 166
The Critical Path
OV 1 - 167
The Critical Path

Path with the longest total duration.
Determines the shortest time possible to complete the project
Has no scheduling flexibility. ( Any delay on critical path activities will
delay the whole project)
1[6W] + 2[4W] + 4[3w] + 6[1W] = 14 Weeks

1[6W] + 3[5W] + 5[4w] + 6[1W] = 16 Weeks
Critical Path
A network diagram showing the critical path of activities
OV 1 - 168
Float (Slack)
The amount of time an activity can be delayed from its ES without
delaying the project finish date .
*** Only in activities that ARE NOT ON THE CRITICAL PATH
Float = 0 on the critical Path activities.
A network schedule showing float

OV 1 - 169
Critical Path (Cont.)
OV 1 - 170
OV 1 - 171
OV 1 - 172
OV 1 - 173
OV 1 - 174
Resource Optimization Techniques T&T

Examples of resource optimization techniques that can be used to
analyze and adjust the schedule model:
1- Resource Leveling :
It Allows you to readjust the work as appropriate so that resources are not
over allocated.(assigned to two or more activities during the same time
period)
Addresses scheduling conflicts when critical resources are only available at
certain times.
Can Change the Critical path. Why ?
** MS Project :-- Resource leveling is the process of clearing up resource conflicts
and over allocations by delaying tasks or splitting tasks until the necessary
resources are available to complete them.
** leveling will often increase the duration of an activity , and in so doing increase
the length of the project as a whole.
OV 1 - 175
Resource Optimization Techniques T&T

2- Resource Smoothing:
A technique that adjusts the activities of a schedule model such that the
requirements for resources on the project do not exceed certain
predefined resource limits.
Projects critical path is not changed and the completion date may not
be delayed.
Activities may only be delayed within their float.
OV 1 - 176
The What-If Scenario Analysis T&T

One of the schedule modelling techniques.
Used to consider different situations that might occur and influence
the schedule.
Computes different schedules based on potential delays.
Example: What-if scenario for planned move of headquarters.
What if the contractor finishes late?
What if key decision makers are elsewhere during planning?
What if a union strike affects construction workers?
OV 1 - 177
Schedule Compression
Used to optimize the project Schedule
It is The shortening of the project schedule without affecting the
project scope.
Two methods:
Fast-tracking
Crashing
OV 1 - 178
Fast-Tracking
Compress total project duration
Perform sequential activities concurrently
Generates High Risk
Normal
Develop Product
Write Manual
Fast-tracked
Example: New Product Launch

Fast-track activities
Developed concurrently
Develop Product
Write Manual
User manual
Product development
OV 1 - 179
Crashing
Analyzes cost and schedule trade-offs to determine how to
obtain the greatest amount of schedule compression for the
least incremental cost.
Involves allocating more resources to activities on the critical
path.
Formula = (Crash cost Normal Cost) / (Normal time Crash time)
Activity
Normal
Time
(wk)
Crash
Time
(wk)
Normal
Cost
($)
Crash
Cost
($)
Crash
Cost/WK
($/wk)
10
15,000
23,000
4,000
12
11
10,000
14,500
4,500
5,000
8,000
1,500
6,000
7,500
500
12,000
18,000
2,000
Totals
45
34
48,000
71,000
Totals
OV 1 - 180
Schedule Formats
Bar chart:
Shows start and end dates, duration, order.

Can show precedence relationships.
Can show percentage completion; actual progress.
Used to present project status to management.
A bar chart
OV 1 - 181
Schedule Formats (Cont.)

Milestone chart:
Provides summary level view of projects milestones.

Uses icons or symbols.
Shows the projects overall schedule.
A milestone chart
OV 1 - 182
Schedule Baselines
The management-approved version of the project schedule.
Drawn from the schedule network analysis.
Provides basis for measuring and reporting schedule performance.
A chart showing a schedule baseline
OV 1 - 183
Developing Cost Estimates and Budgets
Plan Cost Management

Estimate Project Costs
Estimate the Cost Baseline
Reconcile Funding and Costs
OV 1 - 184

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 185
The Plan Cost Management Process
Project Cost Management is primarily concerned with the cost of the

resources needed to complete project activities.
Plan Cost Management is the process that establishes the policies,
procedures, and documentation for planning, managing, expending,
and controlling project costs
OV 1 - 186
Plan Cost Management Process

Analytical Techniques T&T
Developing the cost management plan may involve choosing strategic
options to fund the project such as:
Fund the project such as : self-funding, or funding with debt.
Finance project resources such as making, purchasing, renting, or
leasing
Cost management plan - Output

is a component of the project management plan and describes how the
project costs will be planned, structured, and controlled.
The cost management processes and their associated tools and
techniques are documented in the cost management plan
OV 1 - 187
Cost Estimates
An assessment of the likely costs of all resources required to complete an activity.
Involves identifying risks that might affect the cost required to perform activities.
Historical cost information of similar projects can help project manager in
estimating cost.
Identification and consideration of costing alternatives to complete the project,,
such as make versus buy, buy versus rent, outsourcing VS In-house work , and
Overtime elimination.
The accuracy of a project estimate will increase as the
project progresses through the project life cycle. WHY?
OV 1 - 188
The Estimate Costs Process

Estimate Costs is the process of developing an approximation (
Estimation) of the monetary resources needed to complete project
activities.
It determines the amount of cost required to complete project work.
OV 1 - 189
Common Estimate Types

A Different type of cost estimate and level of accuracy may be required for
different phases of project life cycle.
Type or Level of Accuracy
Description or Accuracy Rating
Rough Order of Magnitude

(ROM)
Developed without basis of detailed data and often based on very high
level historical data, expert judgment. Accuracy:
-50 percent to +100 percent. ( ($1000) - $500 $2000)??
Approximate estimate
Based on more information than ROM estimates, but still lacks the
detail required for high accuracy. Used if the project is similar to a
previous one . Accuracy: 15 percent.
Definitive estimate (or

control or detailed)
Developed by estimating the cost for each work package in the WBS.
Accuracy: - 5 percent to + 10 percent.
OV 1 - 190
The Estimate Costs Process - inputs

Human Resource Plan ( to be discussed later)
Includes Project staffing attributes, personnel rates, and related
rewards/recognition are necessary components for developing
the project cost estimates.
Risk register ( to be discussed later)
The risk register should be reviewed to consider risk mitigation
costs.
Risks typically have an impact on both activity and overall
project costs.
OV 1 - 191
The Estimate Costs Process T & T

Analogous Estimating
A method of cost estimating uses the cost of previous similar
projects in scope and activities..
Managers use experience, historical information, expert
judgment.
Determines a total project cost or time estimate.
Used when:
Only a limited amount of detailed information is available.

Similar project is available for comparison.
Estimators have appropriate experience.
OV 1 - 192

Bottom-Up Estimating
Estimates the cost for each work package.
Estimates are then rolled up or aggregated.
Used when:
More detail is available about the work packages.

More accurate estimates are needed.
There is time to invest in making the estimates.
Three points estimate

uses Most likely , Optimistic , Pessimistic estimations (PERT)
(Optimistic +(4*most likely)+Pessimistic)/6
OV 1 - 193

Parametric Estimating
A technique used to predict total project costs by using the project's
characteristics and parameters in a mathematical model.
A sample parametric estimating
Vendor Bid Analysis

Cost estimating methods may include analysis of what the project
should cost, based on the responsive bids from qualified vendors.
Cost of Quality
The total cost of efforts needed to achieve an acceptable level of quality
in the projects product or service. (Q-Planning , Q-control , Q-Assurance)
OV 1 - 194
Estimating Techniques Advantages and

Disadvantages
Technique
Advantages and Disadvantages
Analogous estimating
Accuracy is not high , Can sometimes be difficult for lower-level

managers to apportion cost estimates.
Bottom-up estimating
Is very accurate and gives lower-level managers more responsibility.

May be very time consuming and can be used only after the WBS has
been well-defined.
Parametric estimating
Is not time consuming. May be inaccurate, depending on the integrity

of the information used.
OV 1 - 195
The Estimate Costs Process Outputs

Activity Cost Estimates ( A document includes : )
Quantitative assessments of the expected costs required to complete project
work.
Can be presented in summary form or in detail.
Costs are estimated for all resources that are applied to the activity cost
estimate (direct labor, materials, equipment, services, facilities and information
technology).
Special cost categories such as an inflation allowance or a cost contingency
reserve.
Basis of Estimates
Documentation of the basis of the estimate (i.e., how it was developed).
Documentation of all assumptions made.
Documentation of any known constraints.
Indication of the confidence level of the final estimate.
OV 1 - 196
The Determine Budget Process

Aggregating the estimated costs of individual activities or work
packages to establish an authorized cost baseline against which
project performance can be monitored and controlled.
OV 1 - 197
The Determine Budget Process T & T

Cost Aggregation
Cost estimates are aggregated by work packages in accordance with the
WBS. The work package cost estimates are then aggregated for the higher
component levels of the WBS and ultimately for the entire project.
Historical Relationships
Any historical relationships that result in parametric estimates or analogous
estimates involve the use of project characteristics (parameters) to develop
mathematical models to predict total project costs.
They are most likely to be reliable when:
Historical information used to develop the model is accurate.
Models are scalable, such that they work for a large project, a small
project, and phases of a project.
OV 1 - 198
The Determine Budget Process T & T

Funding Limit Reconciliation
A method of adjusting spending, scheduling, and resource allocation
in order to bring expenditures into alignment with budgetary constraints.
If there are existing funding limits set by the organization or customer , the
budget must be mapped accordingly.
Example: A customer wants to spread project costs over two quarters.

$250,000 during Q1.
$350,000 during Q2.
Contingency Allowances reserve analysis

Are Additional funds that are sometimes built into
cost estimates to allow for unanticipated events.
Q1: $250,000Q2: $350,000
OV 1 - 199
Cost performance Baselines - output

A time-phased budget , monitors and measures and control cost performance
Developed by adding the estimated costs of project components by period.(PM
must try to mach cost baseline)
A summation of the approved budgets by time period and is typically displayed
in the form of an S-curve
Total funding requirements and periodic funding requirements (e.g., quarterly,
annually) are derived from the cost baseline.
A generic cost baseline shown as

an S-curve
OV 1 - 200
Planning Project Quality, Staffing, and

Communications
Create a Quality Management Plan
Document the Project Roles, Responsibilities, and Reporting
Relationships
Create a Communications Management Plan
OV 1 - 201

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 202

(Cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management

Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management

Identify Risks
Analysis
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan
Stakeholder
Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 203
Quality
After we developed project Schedule (Time) and (Cost) , it is time to
focus on (Quality)
Quality is the Totality of features and characteristics of a product or
services that bear on its ability to satisfy stated or implied customer
needs.
In Business : Quality should be feasible , modifiable , and
measurable.
OV 1 - 204
Quality VS Grade
Quality is "the totality of characteristics of an entity that bear on its ability to satisfy
stated or implied needs".
-Grade is "a category or rank given to deliverables (products) having the same
functional use but different technical characteristics"
-. Low quality is always a problem; low grade may not be
Example : BMW - 7th series VS 3rd Series .
OV 1 - 205
Quality Management Plans

Project Quality Management, describes the processes involved in assuring
that the project will satisfy the objectives for which it was undertaken. It consists
of the Plan Quality management (Planning), Perform Quality Assurance
(executing) , and Control Quality( Monitoring & controlling).
Quality management plan is a component of the project management plan that

describes how the organizations quality policies will be implemented. It
describes how the project management team plans to meet the quality
requirements set for the project.
OV 1 - 206
Total Quality Management (TQM)

An approach to improving business results through an emphasis on customer
satisfaction, employee development, and processes .
Long term , On going process , Every one involved.
Different quality theorists who implemented total quality management are:
Theorist
Approach
W. Edwards Deming
Continuous improvement. The plan-do-check-act cycle is

the basis for quality improvement
Joseph Juran
Breaks Quality management into Planning , Control and

Improvement
Philip Crosby
1.Quality is conformance to requirements

2. Prevention rather than Inspection
3. Every one is Involved
4. Can be measured by Cost of Quality
Genichi Taguchi
Quality in design , Extreme conditions.
Six Sigma (Bill Smith)
Improve processes by systematically removing defects (3 per

million)- Motorola
OV 1 - 207
Standards and Regulations

Standards:
Non-mandatory guidelines or characteristics that have been
approved by a recognized body of experts such as the
International Organization for Standards (ISO).
Regulations:
Compliance-mandatory characteristics for specific products,
services, or processes.
Standards may later become Regulations
Example:
2007 US recall of toys with lead-based paint.
Stricter federal regulations, with criminal penalties.
US toy retailers forced their suppliers to meet tougher
standards than the government required.
OV 1 - 208
The ISO 9000 Series

A quality system standard that is applicable to any product, service,
or process in the world.
Developed by ISO (International Organization for Standards)., a
consortium of approximately 100 of the worlds industrial nations.
Simply confirms that appropriate systems are in place.
OV 1 - 209
The Plan Quality Management Process

Plan Quality Management is the process of identifying quality requirements
and/or standards for the project and its deliverables, and documenting how
the project will demonstrate compliance with relevant quality requirements.
It provides guidance and direction on how quality will be managed and
validated throughout the project.
OV 1 - 210
The Plan Quality management Process (T & T )

Tool or Technique
Description
Cost Benefit Analysis
Consider the trade offs and the benefit of meeting quality

requirements of higher productivity and lower cost while increasing
stakeholder satisfaction
Benchmarking
Compare the quality of your projects processes and systems to

those of other groups , both internally and externally.
Designs Of
Experiments (DOE)
A statistical Method of identifying the factors that may influence

certain project variables.
Cost Of Quality (COQ)
Costs incurred by preventing non-conformance to requirements,

appraising for conformance , and non-conformance (failing to meet
requirements) (rework) , internal or external
Statistical sampling
A technique used to determine characteristics of an entire

population based on actual measurement of a representative
sample.
Additional quality
Planning tools
Brainstorming , context diagrams , flowcharts.

6 sigma ,
OV 1 - 211
Cost of Quality
Costs incurred by preventing non-conformance to requirements, appraising for
conformance , and failing to meet requirements (rework) , internal or external
OV 1 - 212
The seven basic quality tools (T & T )

Also known in the industry as 7QC Tools, are used to solve quality-related
problems
The seven basic quality tools are :
Cause-and-effect diagrams
Flowcharts
Checksheets ( tally sheets)
Pareto diagrams
Histograms
Control charts
Scatter diagrams
OV 1 - 213
The seven basic quality tools (T & T )
OV 1 - 214
Cause-and-Effect Diagram
A diagram that shows the relationships of various elements in a
system or process. Assists project team to Identify Quality Problems
*** Cause & Effect Fish Bone - Ishikawa
Example: Image printing Company.
The problem ( effect) is Poor (Rejected) Images
What are the possible causes.?
A cause-and-effect diagram
OV 1 - 215
Flowcharts
Shows the sequence of events and flow of inputs and outputs between
elements in a process or system.
Has a definite beginning and end.
A sample process flowchart
OV 1 - 216
Control Charts
Control charts are used to determine whether or not a process is
stable or has predictable performance.
They reflect the maximum (UCL- Upper control Limit) and minimum
values allowed.(LCL Lower control limit)
The control limits are generally = mean 3 sigma.
A process is considered out of control when a data point exceeds a
control limit or if seven consecutive points are above or below the
mean ( seven- run Rule).
OV 1 - 217
Control Charts
A process is considered out of control when a data point exceeds a control
limit or if seven consecutive points are above or below the mean ( seven- run
Rule)
Indicates Instability
UCL
UCL
LCL
LCL
Variability above the upper control limit (UCL)
OV 1 - 218
Control Charts (Cont.)

A process is considered out of control when a data point exceeds a control
limit or if seven consecutive points are above or below the mean ( seven- run
Rule)
UCL
UCL
X
X
LCL
Indicates Instability
LCL
Variability below the lower control limit (LCL)
OV 1 - 219
The Plan Quality Process (Outputs)

Quality Planning Process Outputs
Output
Description
Quality Management
Plan
Describes How the project management team will implement

the performing organizations quality policy
Quality Metrics
- What needs to be measured?

- How is it going to be measured?
- When is it going to be measured?
- Who is going to measure it?
- Quality metrics are used in the QA and QC processes.
Quality Checklists
A Job aid that prompts employees to perform activities a

according to a consistent standard.
Process Improvement
Plan
How to stream-line a process , Eliminating unnecessary

activities
OV 1 - 220
Checklists
A job aid that prompts employees to perform activities
according to a consistent quality standard.
Obtain a printout of the image specifications from the graphics database. Use this checklist
to ensure that the images are ready to be handed off to the programmer.
#
Item
Does the image match the description in the database?
Does the style meet the specifications for the course or lesson?
Does the quality of the image meet the standards set for the course?
Is the image size correct?
Is the correct border on the image?
Is the image in the correct palette?
Is the opacity correct (transparent or opaque)?
Is the bit-depth correct?

A checklist for printing image
Y/N
OV 1 - 221
The Plan Human Resource Management Process

The process of identifying, documenting, and assigning project roles,
responsibilities, and reporting relationships. and creating a staffing management
plan.
Commonly performed during early project phases. To make sure that everyone
working on the project knows what their roles , Duties and responsibilities.
Involves :
Documenting HR skills required.
Identifying training requirements , team building strategies, planning
recognition and rewarding systems.
OV 1 - 222
The Develop Human Resource Plan

Process ( T & T)
Human Resource Planning Process Tools & Techniques
Tool or Technique
Description
Organizational charts
and position
Descriptions
Various formats exist to document team member roles and

responsibilities. Most of the formats fall into one of three types
:hierarchical, matrix, and text-oriented.
Networking
The formal and informal interaction with others in an

organization, industry, or professional environment such as
Interviews , meetings to Understand how staffing issues can be
affected by interpersonal factors
Organizational Theory
Provides information about Org. Chart , Power , Culture, and

the way in which people, teams, and organizational units
behave.
OV 1 - 223
Organizational Structures
Dictates how the various groups and individuals within an
organization interrelate.
CEO
CFO
CIO
VP HR
Department Head
Department Head
Department Head
Employee
Employee
Employee
Employee
Employee
Employee
A sample organizational structure
OV 1 - 224
Organizational Structure Types
Org. type
Description
Functional organization
Each department carries out specific activities.

Reporting is hierarchical.
PMs authority is low, relative to functional manager.
Projectized organization
PM and core project team operate as a separate unit.

PM has significant authority and independence.
Matrix organization
Individuals report upwards and also horizontally.

Weak , Balanced , Strong ( Depends on PM
Authority)
OV 1 - 225
Functional Organization Chart

Each department carries out specific activities.
Reporting is hierarchical.
PMs authority is low, relative to functional manager.
A functional organization chart
OV 1 - 226
Projectized Organization Chart (Cont.)

PM and core project team operate as a separate unit.
PM has significant authority and independence.
A projectized organization chart
OV 1 - 227
Matrix Organization Chart (Cont.)

Individuals report upwards and also horizontally.
Weak , Balanced , Strong ( Depends on PM Authority)
A matrix organization chart
OV 1 - 228
Relative Authority in Organizational Structures

The project managers authority relative to the functional managers
authority over the project and the project team.
OV 1 - 229
Human Recourse Management Plan Components

The human resource management plan, a part of the project
management plan, provides guidance on how project human resources
should be defined, staffed, managed, and eventually released.
Item
Description
Staff acquisition
Consider whether you will use team members from within the organization
or from external sources, the costs associated with the level of expertise
required for the project, and physical location of resources.
Timetable
Release criteria
Training needs
Recognition and
rewards
Compliance
Safety
Optimize the use of people on the project to keep the project on time and
within budget.
Develop a method and timetable for releasing resources to help control
project costs by using team members expertise or skills as they are
needed.
A training plan can be developed for team members who need to improve
their competency levels or who may need to obtain certifications that will
benefit the project.
Create incentives for meeting milestones or other project deliverables,
which can have a positive effect on morale
Any compliance issues should be stipulated in the staffing management
plan, such as government regulations.
Projects performed where specific safety precautions must be taken can
have documented policies and procedures for the protection of team
members.
OV 1 - 230
Communications Management Plan

Describes the project teams approach to communicate project
information.
Describes what information must be communicated to whom, by
whom, when, and in what manner.
(Who needs what ,By whom, when and How)
Project communications may often have many potential dimensions :
Internal (within the project) and external (customer, vendors, other
projects, organizations, the public);
Formal (reports, minutes, briefings) and informal (emails, memos, ad-hoc
discussions);
Vertical (up and down the organization) and horizontal (with peers);
Official (newsletters, annual report) and unofficial (off the record
communications)
Written and oral, and verbal (voice inflections) and nonverbal (body
language).
OV 1 - 231
The Plan Communications Management Process
The process of developing an appropriate approach and plan for

project communications based on stakeholders information needs
and requirements, and available organizational assets.
It identifies and documents the approach to communicate most

effectively and efficiently with stakeholders
OV 1 - 232
Communications Requirements Analysis

T&T
Comm. Requirements are : the project stakeholders' documented communications
needs.
Include:
Relevant information that contributes to the success of a project.
An analysis of cost, time, and logistics.
Analysis should take the form of grid , questionnaire, or survey that document
communication need for each stakeholder.
Ask Detailed and Specific questions about communications
Example: Surveying stakeholders regarding their communications needs.
Questions asked may include:
How often would you like to receive status reports?
How would you prefer to receive information? By phone, by email, or in
face-to-face meetings?
What level of detail are you expecting to see?
What kinds of questions do you expect to have answered?
OV 1 - 233
Communications Requirements Analysis

Number
of communication channels
The total number of communication

channels is
n (n- 1) / 2 , where n = number of
stakeholders. (What about 10 stakeholders ?)
A project with 10 stakeholders has 45
potential communication channels.
OV 1 - 234
Communications Models T&T

Determine how information must flow from the sender to the receiver.
OV 1 - 235
Communication Methods
Interactive communication. (Multidirectional information exchange)
Meetings.
Phone calls.
Video conferencing.
Push communication.
Involves sending information to a receiver , does not guarantee that the

sent information has reached the receiver .
E-mail (outlook, B.B.) , SMS
Pull communication.
Involves receiver to access information when ever required.

Give example ??
E-mails , Intranet portals
OV 1 - 236
Analyzing Risks and Planning Risk

Response
Examine a Risk Management Plan

Identify Project Risks and Triggers
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Develop a Risk Response Plan
Plan
OV 1 - 237

(Cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management

Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management

Identify Risks
Analysis
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan
Stakeholder
Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 238
Risk
An uncertain event that, if it occurs,has a positive or negative impact (effect)
on the project.
Positive and negative risks are commonly referred to as opportunities and
threats
Risk identifying allows PM to be (Proactive) towards problems rather than
respond to problems (reactive).
You need to analyze risks so that they can be mitigated.
Risk events consist of three elements:
The event itself
The consequence (IMPACT) of the event occurring
The measure of likelihood (PROBABILITY) of the event occurring
Risk Rating = IMPACT X Probability
Example
Weather (rain)
Outdoor festival
Threat of cancellation or less revenue.(Negative)
(Positive) ???? How???
OV 1 - 239
Project Risk Management

Project Risk Management includes the processes of conducting risk
management planning, identification, analysis, response planning, and
controlling risk on a project.
The objectives of project risk management are to increase the likelihood
and impact of positive events, and decrease the likelihood and impact of
negative events in the project.
The project risk management process with the five main sub-phases
Evaluation of
probability and
impact of occurrence
of risk
Minimize Impact of
negative risk
Maximize Benefits of
positive risks.
OV 1 - 240
Business Risk vs. Insurable Risk

Risk can be classified in two Types :
Business risk:
Inherent ( natural) in business.

All projects have potential for loss or profit , success or failure.
Example: Purchasing inventory without guaranteed sales.

Insurable risk:
Only the potential for loss.

No potential for profit or gain.
Insurance may be purchased to offset losses.
Example: Loss of inventory due to fire.
OV 1 - 241
Types of Business Risks
Business Risk
Description
Competitive
Risks such as risk of increased competition in the marketplace and a rival

company developing a superior product.
Legislative
Risks such as risk of new laws or changes in regulations governing your

products, goods, or services requiring your company to spend more to
maintain compliance.
Monetary
Risks such as risk of increased prices for raw materials, increased taxes,
increased operating costs, and inflation..
Operational
Risks such as risk of fraud, theft, workplace accidents, and damage to

equipment.
OV 1 - 242
Types of Insurable Risks
Insurable Risk
Description
Direct property risk
Risk of property damage due to weather, fire, and so on.
Liability risk
Risk of needing to make good after causing damage to another.

(car accidents)
Personnel-related risk
Liability risk for damage to employees.
OV 1 - 243
The Plan Risk Management Process

Plan Risk Management is the process of defining how to conduct
risk management activities for a project.
The risk management plan is vital to communicate with and obtain
agreement and support from all stakeholders
OV 1 - 244
The Plan Risk Management Process ( T&T)

Analytical techniques are used to understand and define the overall risk
management context of the project.
Risk management context is a combination of stakeholder risk attitudes and
the strategic risk related decisions of the organization.
Meetings
Project teams hold planning meetings to develop the risk management plan.
Attendees may include:
Project manager.
Selected project team members and stakeholders.
Anyone in the organization with responsibility to manage the risk activities.
The meetings will address:
High-level plans.
Cost elements and schedule activities.
Contingency reserve application approaches.
Organizational risk templates will be generated
OV 1 - 245
Risk Management Plan - output

The risk management plan is a component of the project management
plan and describes how risk management activities will be structured
and performed.
Includes
Identifies methodology, approaches, and tools.

Documents roles and responsibilities.
Identifies budgeting and scheduling.
Identifies risk categories (Internal , External).
OV 1 - 246
RISK Management Plan
OV 1 - 247
Probability Scales
A graph showing the assignment of value to the likelihood of a risk
occurring.
Probability score ranges from 0.0 (no probability) to 1.0 (certainty).
No
Probability
.1
Certainty
.3
.5
.7
.9
1.0
A probability scale
OV 1 - 248
Impact Scales
Rating systems showing the assignment of a value that reflects the
magnitude of the Impact of a risk event on project objectives.
Impact Rating
Impact Level
Definition
Very low
If this risk occurs, the impact on the projects objectives

would be minor and not noticeable outside the project.
Low

would be minor but noticeable to customer or sponsor.
Moderate

would be significant and would create customer or
sponsor dissatisfaction with the project.
High
If this risk occurs, the impact on the project would be

significant and would create major customer or sponsor
dissatisfaction. The project would be in jeopardy.
Very high
If this risk occurs, the impact would be catastrophic.

The project would be cancelled.
OV 1 - 249
Levels of Risk Tolerance

Level of risk acceptable to a project manager or key stakeholder
when the investment is compared to the potential payoff (return).
Classification
Description
Risk-averter
Not likely to take a risk that is considered a high risk.
Risk-seeker
Accepts an uncertain outcome and may be willing to take a high

risk regardless of the consequences.
Risk-neutral
Tolerance to risk is proportional to the amount of money at

stake.
OV 1 - 250
Risk Tolerance ???????
OV 1 - 251
Triggers
Early warning signs or indications that risk will occur.
External factors include:
Changes in the legislation , technology.
Internal factors include:
Changes in staffing.
Changes in governance.
Changes in funding.
Example: For a documentary program production, a television writers

strike would be a trigger and involves positive and negative risks.
Negative risk (Treat): external resources unavailable
Positive risk (Opportunity) : networks demand for programs
increases
OV 1 - 252
The Identify Risks Process

An iterative process of identifying the risks and triggers facing a
project.
OV 1 - 253
The Identify Risks Process ( T & T)

Documentation reviews
Structure Reviews of project plans and related documents.
Information-Gathering technique
Data collection methods that the project team can use to assist in
Identifying risks , Following are some of these techniques:
Technique
Description
Brainstorming
Used to identify overall project risks or may focus in on

the risks within a particular project segment or work
package.
Delphi technique
Generates a consensus among project risk experts who

anonymously submit their risk list to a facilitator.
Interviewing
Used to get information from people with a wide

experience across many projects
Root cause identification
Used to find and group the risks by cause.
Strengths, weaknesses,
opportunities, and threats
(SWOT) analysis
Examines the project from the perspective of strengths,

weaknesses, opportunities, and threats.
OV 1 - 254
Risk Identification Tools & Techniques

Checklist analysis
Developed based on historical information as a standard risk

Identification method
Should be reviewed and updated during project closure
Assumptions analysis
Explore the validity of project assumption.
Diagramming techniques
Cause-and-effect diagram ?? Other names??

System or process flow charts
OV 1 - 255
SWOT Analysis
SWOT Analysis
Internal Factors
Strengths

Weaknesses

SWOT
Opportunities
Threats
External Factors
OV 1 - 256
Risk Registers - output

Identifies and categorizes risks, potential risk responses, triggers.
Updated as risk categories change.
Information in risk register are used in the risk response planning
process.
Updated risk register is provided to the project team members.
A sample risk register
OV 1 - 257
The Perform Qualitative Risk Analysis Process

The process of assessing, ranking, and prioritizing risks for subsequent
further analysis , using their probability of occurrence and impact.
Qualitative analysis should be conducted early in project life cycle
A technique to determine the probability of occurrence and the impact of
identified risk.
Provides the list of prioritized risks for further actions.
Risk
register
Updates
OV 1 - 258
The Perform Qualitative Risk Analysis Process

T&T
Risk probability (Likelihood) and impact (Effect) assessment
Interviews and/or meetings
Expert judgment
Described in very high , high , moderate , low , and very low
Probability and impact matrix
Risks are prioritized for further quantitative analysis
Illustrating risk rating as high , medium , or low priority.
Risk data quality assessment
Assessing the Accuracy, reliability, and integrity of available data
Risk categorization
Grouping risks by common root cause , sources of risk , and the
area of the project affected can lead to better risk response.
Risk urgency assessment
Identify Some risks that may require faster action - Priority
OV 1 - 259
Probability/Impact Risk Rating Matrix

Combines the probability and impact scales to prioritize risks and
Identify risks that are likely to require further analysis
0.9
Very High
1.0
1.4
5.0
8.6
.8
2.8
4.8
.6
1.0
0.5
Medium
0.33
0.1
Very Low
.2
Very High
9.5
10
Medium
5.5
6.66
Very Low
1.5
3.33
0
0
Probability
0.66
Impact
OV 1 - 260
Project Risk Ranking

Overall risk ranking for final deliverable.
Sum risk factor scores for individual risks divided by number of risks.
Example:
30 risks
Total of risk factor scores = 75
75 / total number of risks (30)
75 / 30 = 2.5
Risk ranking is 2.5
OV 1 - 261
The Ongoing Risk Assessment Process

An iterative process of identifying, analyzing, and documenting risks.
PMs outside the project, shadow and provide oversight.
OV 1 - 262
The Perform Quantitative Risk Analysis Process

Perform Quantitative Risk Analysis is the process of numerically analyzing
the effect (Impact ) of identified risks on overall project objectives.
Numerical technique used to:
Assess the impact of risk.

Measure the amount of damage that can take place.
Further refines and enhances the prioritization and scoring produced
during qualitative analysis.
Risk
register
Updates
OV 1 - 263
The Perform Quantitative Risk Analysis Process

(T & T)
Data Gathering and representation techniques:
Interviews , Delphi , brainstorming .
Quantitative Risk analysis and modeling techniques:
Method
Description
Sensitivity analysis
Sensitivity analysis helps to determine which risks have the most

potential impact on the project.
Expected monetary
value (EMV) analysis
A statistical concept that calculates the average outcome when the

future includes scenarios of risks that may or may not happen
Modeling and
simulation
A project simulation uses a model that translates the specified risks

of the project into their potential impact on project objectives.
Simulations are typically performed using the Monte Carlo
technique
OV 1 - 264
The Plan Risk Responses Process

Plan Risk Responses is the process of developing options and
actions to enhance opportunities ( Positive) , and to reduce threats
(Negative) to project objectives
OV 1 - 265
Negative Risk Strategies (Threats)
Strategy
Description
Risk avoidance
Involves changing the project plan to prevent a potentially

negative risk condition or event from happening.
Risk transference
Shifts the impact of a risk event and ownership of the risk

response to a third party. ( Insurance , Outsourcing)
Risk mitigation
Attempts to reduce the probability or impact of a potential risk

event to an acceptable level.
Risk acceptance
Involves accepting that a risk exists. The acceptance may be

passive or active. Passive do nothing except documentation or
Active where contingencies are developed
Example : Going to work ( Traffic Jam)
OV 1 - 266
Positive Risk Strategies (Opportunities)
Strategy
Description
Risk exploitation
Often used when a project team make sure that a positive risk is
fully realized.
Risk sharing
Entails partnering up with another party in an effort to give

your team the best chance of seizing the opportunity.
Risk enhancement
Attempts to increase the probability that an opportunity will

occur.
Risk acceptance
Involves accepting the risk and actively responding to it as it

comes, but not through pursuit.
OV 1 - 267
Contingent Response Strategies Contingency Plans

A risk-response strategy developed in advance.
Used in the event that identified risks become reality.
Example: A rain date for an outdoor event.
Example:
Rain date
Outdoor event
In case of inclement weather, event postponed one week ( declared
in advance)
OV 1 - 268
Planning Project Procurements and stakeholders

Management
In this lesson you will :
Examine Project Procurements

Plan procurement management
Identify types of Procurement Document
Plan Stakeholders management.
OV 1 - 269

(Cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management

Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management

Identify Risks
Analysis
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan Stakeholder Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 270
The Plan Procurement Management Process

Plan Procurement Management is the process of documenting project
procurement decisions, specifying the approach, and identifying potential sellers
Determines whether project needs will be met internally by project team , or
need to be acquired from outside the project organization ( externally).
PM & Team need to determine what to acquire , how to acquire ,how much to
acquire , and when to acquire project resources.
OV 1 - 271
The Plan Procurement Management Process T & T

Make-or-Buy Analysis
A general management technique used to determine whether particular

work can best be accomplished by the project team or should be
purchased from outside sources
Budget constraints may influence make-or-buy decisions
Impacts project time, cost, and quality. How ??
Consider if a product needs to be purchased, or rented, in case of a buy
decision.
Market Research
Market research includes examination of industry and specific vendor

capabilities.
OV 1 - 272
Factors in Make-or-Buy Decisions

Factor
Consideration
How will the options

affect project cost,
time, or quality?
(IMPACT)
For instance, if current personnel must be

retrained for services requiring a new skill set, it
may be less expensive to outsource those
services. (time ? Quality?)
Will this service be

an ongoing need for
the company?
(Ongoing need)
If the organization will continue to need a specific

skill seteven for future, unrelated projectsit
may be a worthwhile investment to train current
personnel to perform that service.
Do the project's time

constraints
accommodate the
learning curve
inherent to newly
trained personnel?
While it may make financial sense to develop an

in-house solution, there may not be enough time
to train personnel and/or implement the necessary
policies and equipment to produce that solution.
Cost-effectiveness
If the required resources are readily available

internally, organizations will usually use them. For
projects involving technology, skills, materials, or
resources that are beyond the organization's
capabilities, it may be cost-effective to hire outside
help.
OV 1 - 273
Rent, or Buy Decisions

Business analysis determines most cost-effective procurement option
Financial decision
Example:
High-speed copier needed
Relatively small, one-time project: Rent , (Lease)
Long-term, extensive use: buy
OV 1 - 274
The Plan Procurements Process Outputs

Procurement Management Plans
Outlines the specifications for procuring work from outside sources.

Specifies the types of contracts that will be used.
Describes the process for obtaining and evaluating bids.
Mandates the standardized procurement documents that must be used.
Describes how multiple providers will be managed.
States how procurement activities will be coordinated with other project
management activities.
Plan may be formal or informal; brief or highly detailed.
OV 1 - 275
The Plan Procurements Process Outputs

Procurement Statements of Work
The procurement SOW describes the procurement item in sufficient
detail to allow prospective sellers to determine if they are capable of
providing the products, services, or results.
Information included in a SOW can include specifications, quantity
desired, quality levels, performance data, period of performance,
work location, and other requirements
Serves as a basis to develop the procurement documents during the
solicitation process.
A project scope baseline is used to create the procurement SOW.
OV 1 - 276
Procurement Statements of Work (Cont.)
A sample procurement statement of work

OV 1 - 277
Outsourcing
Refers to moving beyond the organization to secure services and
expertise from outside sources on a contract or short-term basis.
Helps businesses to focus more on their core competencies.
Cost-savings measure ( Cost effectiveness)
Work can be kept in-house to maintain stricter quality controls.
Example: Outsourcing the button production by a New York clothing
manufacturer to a company in Mexico.
New York clothing manufacturer
Button production moved to Mexico
Less expensive labor, production
Cost savings
Focusing on Core competencies.( Shirts)
OV 1 - 278
Procurement Documents - output

Documents that are submitted to prospective sellers and service
providers to solicit their proposals for the work needed.
Document type used will depend on the type of project and the
product or service being procured.
Term
Description
Request for Bid (RFB)
Commonly used when deliverables are commodities for which there

are clear specifications, and when price will be the primary
determining factor. Formal bidding
Request for Quotation (RFQ)
Like an RFB, commonly used when deliverables are commodities for

which there are clear specifications, and when price will be the
primary determining factor. No formal bidding
Request for Proposal (RFP)
Commonly used when deliverables are not well-defined or when other

selection criteria will be used in addition to price.
Invitation for Bid (IFB)
Commonly used when deliverables are commodities for which there

are clear specifications and when the quantities are very large.
Request for Information (RFI)
Commonly used to develop lists of qualified sellers and to gain more

input for resource availability.
OV 1 - 279
Contracts
Mutually binding agreements that detail the obligations of both
parties in terms of procuring work.
Customized for each agreement.
Contract types:
Fixed price.
Cost-reimbursable.
Time and Material (T&M) contracts.
OV 1 - 280
Types of Contracts
Contract Type
Description
Notes.
Fixed Price.
- Maximum Protection to Buyers

- Long time to prepare & Bid
Lump Sum , Establishes total price of product - High Certainty in Parameters (Fixed cost)
or service , Including cost + profit +premium - FFP Firm Fixed Price Contracts.
- FPIF Fixed Price Incentive Fee Contracts.
(Reserve)
- FPEPA Fixed Price with Economic Price
Adjustment Contracts.
Cost Reimbursable
- CPFF, Cost-Plus-Fixed-Fee
Provides seller a refund of expenses incurred - CPPC (Cost-Plus-Percentage of Cost)
while providing the service , plus a fee
-CPIF, Cost-Plus-Incentive-Fee
representing seller Profit
-CPAF Cost Plus Award Fee Contracts.
- Parameters Uncertainty
Time &
Includes aspects of both , Buyer buys Hourly
Material (T&M) Rate ( Fixed) and full material cost.
OV 1 - 281
Source Selection Criteria - Output

The standards used to rate or score proposals, quotes, or bids and forms a
part of the procurement documents.
Objective criteria - Can be readily demonstrated and measured.
Subjective criteria - Open to different interpretations.
Objective criteria is much more specific than subjective criteria.
Example:
Subjective Criteria
Objective Criteria
Experienced laboratory chemist with strong Ph.D. chemist with at least five years
analytical skills.
experience in chromatographic research.
Ample square foot storage area near
Dallas-Fort Worth Airport.
80,00090,000 square-foot storage area

within three miles of the Dallas-Fort Worth
Airport.
Project Manager has documented

experience with similar projects
Project Manager must be a PMP certified
OV 1 - 282
The Plan Stakeholder Management Process

Plan Stakeholder Management is the process of developing management
strategies to effectively engage stakeholders throughout the project life cycle,
based on the analysis of their needs, interests, and potential impact on project
success.
It provides a clear, actionable plan to interact with project stakeholders to
support the project success.
Plan
OV 1 - 283
The Plan Stakeholder Management T&T

Engagement level of the stakeholders can be analyzed and classified as follows:
Unaware : Unaware of project and potential impacts.
Resistant : Aware of project and potential impacts and resistant to change.
Neutral
: Aware of project yet neither supportive nor resistant.
Supportive: Aware of project and potential impacts and supportive to change.
Leading
: Aware of project and potential impacts and actively engaged in
ensuring the project is a success.
C = current engagement, D = desired engagement

OV 1 - 284
The Plan Stakeholder Management Output

Stakeholder Management Plan
The stakeholder management plan is a component of the project

management plan and identifies the management strategies required to
effectively engage stakeholders.
The plan may include:
Desired and current engagement levels of key stakeholders;

Stakeholder communication requirements .
Information to be distributed to stakeholders, including language, format, content,
and level of detail;
Time frame and frequency for the distribution of required information to
stakeholders.
OV 1 - 285
Executing Project Work

You finished your project planning and integrated the outputs from
each of the planning processes into a comprehensive project
management plan.
Now your project transitions form planning to execution.
In this lesson we will :
Identify the Direct and Manage Project Work Process (Integration)

Perform Quality Assurance (Quality)
Acquire the Project Team (HR)
Develop the Project Team (HR)
Manage the Project Team (HR)
Manage Communications (Communication)
Manage Stakeholders Engagement (Stakeholders)
OV 1 - 286

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 287

(Cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management

Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management

Identify Risks
Analysis
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan
Stakeholder
Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 288
The Direct and Manage Project Work Process

Direct and Manage Project Work is the process of leading and performing the
work defined in the project management plan and implementing approved
changes to achieve the projects objectives
Build on the foundation that was laid during Project plan.
Long & complex iterative process.
OV 1 - 289
The Direct and Manage Project Work Process Inputs

Approved Change Requests
Include approved changes , which are ready to for implementation by the
project team.
Documented, authorized and controlled changes to expand or reduce
project scope. ( to avoid Scope creep)
Used to revise and may Modify project management plans , Policies ,
procedures, costs or budgets, and Adjusting schedules.
OV 1 - 290
The Direct and Manage Project Work Process

T&T
Project Management Information System (PMIS)
The project management information system, is part of the environmental
factors.
Provides access to: Tools, such as a scheduling tool, a work authorization
system, an information collection and distribution system, or interfaces to
other online automated systems.
Automated gathering and reporting on key performance indicators (KPI)
can be part of this system.
Example: Primavera , Microsoft Project
OV 1 - 291
Work Authorization System

A tool used to communicate official permission to begin working on
an activity or work package.
It is a function or component of the PMIS.
Smaller projects may need verbal authorization.
Ensures that work is done:
At the appropriate time.

By the appropriate individual or group.
Within a specific time.
In the proper sequence.
A contract work authorization system
OV 1 - 292
The Direct and Manage Project Work Process Outputs

Deliverables
A deliverable is any unique and verifiable product, result that is required

to be produced to complete a process, phase, or project.
Deliverables are typically tangible components completed to meet the

project objectives
Work Performance Data
Consists of periodically collected information about project activities.

Data Resides in the PMIS.
Includes:
Schedule progress with status information. (on, ahead , behind)

All Schedule activities and their start and finish dates.
Actual Costs and expenses..
Actual Durations
Number of change requests
Number of Defects
OV 1 - 293
The Perform Quality Assurance Process

Perform Quality Assurance is the process of auditing the quality
requirements to ensure that projects quality standards are applied.
Creates confidence that the project will employ the appropriate
processes and satisfy standards for quality.
QA is an Iterative process.
OV 1 - 294
The Perform Quality Assurance Process inputs

The process improvement plan
details the steps for analyzing project management and product
development processes to identify activities that enhance their value.
Quality Metrics
-What needs to be measured?
- How is it going to be measured?
- When is it going to be measured?
- Who is going to measure it?
Quality Control Measurements:

Quality control measurements are the results of quality control activities???.
They are used to analyze and evaluate the quality standards and processes
of the performing organization.
OV 1 - 295
The Perform Quality Assurance Process

T &T
Quality Management and control tools .
Quality Audits.
A Structured independent evaluation, inspection, or review of a project's
quality assurance, to identify inefficient and ineffective processes in use on the
project.
Internal and external auditors

It confirms that approved changes are implemented
Improves quality performance of a project.
Can be conducted at scheduled or random intervals.
Can Include Topics related to : Cost of Quality , Quality management Policy ,
collection and distribution of information
OV 1 - 296
Quality Auditor ??????????
OV 1 - 297
The Acquire Project Team Process

Involves making the identified HR resources ( In HR Plan) available to the project.
Confirming human resource availability and obtaining the team necessary to
complete project activities.
OV 1 - 298
The Acquire Project Team Process T & T

Pre-Assignment
When project team members are selected in advance they are considered
pre-assigned.
Cases :
Specific people being promised as part of a competitive proposal.
The project is dependent upon the expertise of particular persons.
Some staff assignments are defined within the project charter.
Negotiating
The project management team may need to negotiate with:

Functional managers.
Other project management teams within the performing organization,
External organisations, vendors , supplies , contractors , etc. To
make sure that needed resources are assigned at the right time.
Acquisition
When the performing organization is unable to provide the staff needed to
complete a project, the required services may be acquired from outside
sources..
This can involve hiring individual consultants or subcontracting work to
another organization.
OV 1 - 299
Virtual Teams T&T

Virtual Teams.
Teams that are distributed among multiple physical locations.
May be more difficult because:
Bonding and team identity may be hard to develop.
Various forms of communications technology used.

Difficult to monitor individual performance/progress.
Benefits
of virtual teams include:
Form
teams of people from the same company and live in widespread areas,
Incorporate employees who work from home offices,
Include people with mobility limitations or disabilities,
Move forward with projects that would have been ignored due to travel expenses.
Multi-Criteria Decision Analysis.

Are
often used as a part of acquiring the project team..

Some examples of selection criteria that can be Used:
Availability, Cost, Experience, Knowledge, Skills , Attitude and International
Factors.
OV 1 - 300
Project staff Assignments - output

The project is staffed when appropriate people have been assigned
through the previously described methods.
The documentation of these assignments can include:
A project team directory.

Memos to team members.
Project organization charts and schedules.
OV 1 - 301
The Develop Project Team Process

Develop Project Team is the process of improving competencies,
team member interaction, and overall team environment to enhance
project performance.
It results in improved teamwork, enhanced people skills and
competencies, motivated employees, reduced staff turnover rates,
and improved overall project performance.
OV 1 - 302
The Develop Project Team Process ( T & T)

Interpersonal skills,
soft skills, are behavioral competencies that include skills such as

communication skills, emotional intelligence, conflict resolution, negotiation,
influence, team building skills.
These soft skills are valuable assets when developing the project team
Ground Rules :
Setting clear expectations regarding acceptable behavior by Project team
members.
Early commitment to clear guidelines decreases misunderstandings and
increases productivity
Personnel Assessment Tools :
These tools help project managers assess the team preferences, how they
process and organize information, how they tend to make decisions, and
how they prefer to interact with people.
Various tools are available such as attitudinal surveys, specific

assessments, structured interviews, ability tests
OV 1 - 303
Training
An activity to acquire or enhance skills, knowledge, or attitudes.

Provided to teams, small groups, or individuals.
Covers management, technical, or administrative topics.
Types:
Multi-day, formal workshop.

Five-minute, informal on-the-job training.
Provided to team members when there is a need.
OV 1 - 304
Team-Building Activities
Specific functions or actions taken to develop a mature, productive
team.
Activities can be:
Formal or informal.
Brief or extended.
Conducted by the project manager or a facilitator.
Example: An outdoor team-building activity was initiated by the

manager, which involves all day, offsite rope climbing exercise
facilitated by a coach.
OV 1 - 305
Team Development Stages

The development of the project team generally proceeds in Five
stages.:
Stage
Description
Forming
The team members get to know each other and trust one another. (Worry ,
Polite conversations , Confusing Meetings )
Storming
Team members begin to assert themselves and control issues as they

emerge. They resolve conflicts and achieve consensus. ( Conflicts ,
Differences, )
Norming
The team begins to work productively, without worrying about personal

acceptance or control issues. (less worry , less conflict , Good Productivity)
Performing
The team is working at optimum productivity and are collaborating easily,

communicating freely, and solving its own conflict problems. ( Maximum
Productivity , Trust , Free communication )
Adjourning
The team members complete their assigned work and shifts to the next
project or assigned task. ( mourning)
OV 1 - 306
Co-location
Positioning team members in the same physical location:
Makes communication easier.

Enhance team performance.
Improves team spirit.
Both small and large projects benefit from co-location.
Co-located Teams
Virtual Teams
Improved communication
Shared team identity
Enhanced team performance
Enhanced team spirit
Hampered communication
Difficulty bonding
Lack of team identity
Lose sight of team members
contributions
OV 1 - 307
Reward and Recognition Systems

A formal system used to reinforce performance or behavior.
Helps in motivating the team to perform well.
Rewards include:
Monetary gifts.
Additional vacation time or other perks.
Company plaques or trophies.
Gifts.
Rewarding Individual Performance
Example: 10% salary increase to sales representatives who exceed quota by
25% for the year.
OV 1 - 308
Maslows Pyramid
Maslow's hierarchy of needs
Related to Human Resources management & Motivation.
A Theory of Human Motivation
OV 1 - 309
Team Performance Assessments - output

Formal or informal assessments of the project teams
effectiveness.(Key word is team).
The performance of a successful team is measured in terms of:
technical success according to meeting agreed-upon project objectives.

performance on project schedule (finished on time).
Performance on budget (finished within financial constraints).
OV 1 - 310
The Manage Project Team Process

Manage Project Team is the process of tracking team member
performance, providing feedback, resolving issues, and managing team
changes to optimize project performance.
It influences team behavior, manages conflict, resolves issues, and
appraises team member performance
OV 1 - 311
Issue Log - Input

A written log ; documents and helps monitor who is responsible for
resolving specific issues by a target date.
Issue resolution addresses obstacles that can block the team from
achieving its goals.
OV 1 - 312
The Manage Project Team Process ( T & T)
Observation and Conversation
Observation and conversation are used to stay in touch with the work
and attitudes of project team members.
Project Performance Appraisals
Objectives for conducting performance appraisals during the course of a

project can include:
Comparing performance to goals.

Re-clarifying roles and responsibilities.
Creating and monitoring training plans.
Establishing future goals.
OV 1 - 313
Conflict Management T&T

Application of one or more strategies to deal with disagreements.
Effective conflict management leads to improved understanding,
performance, and productivity.
Ineffective conflict management leads to:
Destructive behavior.
Animosity.
Poor performance.
Reduced productivity.
Use various conflict resolution methods.
OV 1 - 314
Causes of Conflict
Arises in most groups and working situations.
Causes of conflict include:
Competition.
Differences in objectives, values, and perceptions.
Disagreements about role requirements, work activities, and individual
approaches.
Communication breakdowns.
Factors that influence conflict resolution
Relative importance and intensity of the conflict,

Time pressure for resolving the conflict,
Position taken by players involved.
OV 1 - 315
Conflict Management Techniques

Handling Conflicts
Item
Description
Collaborate /
Problem
Solve.(Confronting)
Incorporating multiple viewpoints from differing perspectives;

requires a cooperative attitude and open dialogue that typically
leads to agreement and commitment. (Win-Win preferred)
Compromise/
Reconcile
Finding a middle ground that satisfies all parties to some

degree.
Lose Lose Situation
Smooth/
Accommodate.
De-emphasizes differences between points of view and

focuses on commonalities.
Force/Direct
Requires others to yield to the point of view of one side or

another. May increase conflict and lead to a Win-Lose
situation
Withdraw/Avoid.
Retreating from an actual or potential conflict situation;

postponing the issue to be better prepared or to be resolved
by others.
OV 1 - 316
The Manage Communications Process

Manage Communications is the process of creating, collecting,
distributing, storing, retrieving, project information in accordance to
the communications management plan.
It enables an efficient and effective communications flow between
project stakeholders
OV 1 - 317
The Manage Communications Process - Outputs

Project communications:
May include but are not limited to:
Performance reports, deliverables status, schedule progress, and cost

incurred.
Project communications can vary significantly and are influenced by

factors such as, the urgency and impact of the message, its method of
delivery, and level of confidentiality.
OV 1 - 318
The Manage Stakeholder Engagement

Process
Manage Stakeholder Engagement is the process of communicating and
working with stakeholders to meet their needs/expectations, address issues
as they occur, and encourage stakeholder engagement in project activities
It allows the project manager to increase support and minimize resistance
from stakeholders, significantly increasing the chances to achieve project
success.
OV 1 - 319
OV 1 - 320
Managing Project Procurement

After Planning project procurement , you are ready to manage it by
soliciting (requesting) bids from prospective sellers and making effective
choices among the bids received.
Determine which proposal is best meets projects Time , Cost , Quality.
Managing project procurement by obtaining seller responses and
selecting a seller.
In this lesson will :
Examine the Conduct Project Procurements Process

Obtain Responses from Sellers
Determine Project Sellers
OV 1 - 321

(Cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management

Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management

Identify Risks
Analysis
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan
Stakeholder
Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 322
The Conduct Procurements Process

Conduct Procurements is the process of obtaining seller responses,
selecting a seller, and awarding a contract.
Obtaining seller responses. (quotations, bids, proposals , or estimates)

from potential suppliers of good or services being procured
Selecting a seller. (External Supplier , Vendor)
Awarding contracts to identified seller.
OV 1 - 323
The Conduct Procurements Process - Inputs
Seller Proposals
Seller proposals prepared and submitted by a potential seller in

response to the procurement documents (RFP , RFQ, RFB, IFB) .
The proposal should demonstrate an understanding to the procurement
needs.
Describe the sellers ability to provide the requested product or service
and detail the price for delivering the requested goods.
OV 1 - 324

Tools &Techniques
Bidders conference
(Contractor conferences, vendor conferences or pre-bid conferences), Meetings
with prospective sellers prior to preparation of a proposal to allow them to ask
questions to :
Ensure all prospective sellers have a clear, common understanding of the
requirements.
Allow equal access to information and provide equal opportunities.
Independent Estimates
An organization either prepares its own independent estimate, or have an

estimate of costs prepared by an outside professional estimator, to serve as a
benchmark or a justification of proposed responses.
Proposal Evaluation Techniques

A formal evaluation review process to select a seller based on pre-defined
selection criteria.
Weighting system , Short-listing (screening) , independent estimates
OV 1 - 325

Tools &Techniques
Advertising:
Existing lists of potential sellers can often be expanded by placing
advertisements in general-circulation publications, such as
newspapers, or in specialty publications, such as journals.
Analytical techniques
Can help organizations identify the readiness of a vendor to provide

the desired end result, determine the cost expected to support
budgeting, and avoid cost overruns due to changes.
OV 1 - 326
Procurement Negotiations - T&T

The process of bargaining to come to a mutual agreement regarding
the terms and conditions of a contract. Negotiation Stages :
Stage
Description
Introduction
All parties become acquainted (Familiar) and the overall attitude

of the negotiation is established; this tone is largely set by the
buyers team leader - normally, the person with authority to sign
the contract will lead the contract negotiation team.
Probing
Each side attempts to learn more about the others real position.
Bargaining
Give and take discussions take place to arrive at the best

possible agreement for all. (Win Win)
Closure
The tentative agreement is revised and everyone has an

opportunity to tweak the results.
Agreement
The team tries to ensure that all parties clearly understand and
agree to all terms and conditions of the contract.
OV 1 - 327
The Conduct Procurements Process Outputs

Selected Sellers
sellers who have been judged to be in a competitive range based upon

the outcome of the proposal or bid evaluation, and who have negotiated
a draft contract that will become the actual contract when an award is
made.
Agreements
A procurement agreement includes terms and conditions, and may

incorporate other items that the buyer specifies regarding what the
seller is to perform or provide.
It is usually in a form of contract ; mutually binding agreement that

details the obligations of the buyer and the seller . One is given to each
selected seller.
OV 1 - 328
How to Obtain Responses from Sellers

Guidelines
Gather and review all procurement documents for accuracy and
completeness.
Obtain or develop a qualified sellers list.
Determine how and from whom seller responses will be requested.(
May need to advertise)
If necessary, hold a bidders conference.
OV 1 - 329
Term vs. Completion Contracts

Term contract:
Engages seller to deliver set amount of service over set period of time.
Completion contract:
Stipulates that work will not be considered complete until buyer

accepts the product.
Example: Contracts for sellers and service providers for the 2002
Winter Olympics.
Term contracts: Security services for duration of events.
Completion contracts: Construction of roads, light rails.
OV 1 - 330
Monitoring and Controlling Project Work

Effective project monitoring and control is essential to successful
project completion , to make sure that project will meet expectations.
Comparing actual project performance against the project
management plan ( Baselines )
Assessing performance to determine whether any corrective or
preventive actions ( Changes) are indicated, and then
recommending those actions as necessary
In this lesson :
Identify the Monitor and Control Project Work Process

Develop an Integrated Change Control System
Utilize the Integrated Change Control System
Review Deliverables and Work Results
Control the Project Scope
OV 1 - 331

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 332
The Monitor and Control Project Work

Process
Monitor and Control Project Work is the process of tracking, reviewing, and
reporting the progress to meet the performance objectives defined in the project
management plan.
Monitoring Includes collecting, measuring, and distributing performance
information.
Controlling involves identifying corrective or preventive actions , or re-planning ,
and tracking the execution of project plan.
OV 1 - 333
Change Categories
Project changes can be classified into three broad categories:
Corrective action. .
An intentional activity that re-aligns the performance of the project work

with the project management plan;
Preventive action.
An intentional activity that ensures the future performance of the project

work is aligned with the project management plan
Defect repair.
An intentional activity to modify a nonconforming product or product

component
OV 1 - 334

Process - Inputs
Schedule forecasts
The schedule forecasts are derived from progress against the schedule
baseline and computed time estimate to complete.
The forecast may be used to determine if the project is still within
defined tolerance ranges and identify any necessary change requests.
Cost forecasts
The cost forecasts are derived from progress against the cost baseline
and computed cost estimates to complete
May be used to see if the project is still within tolerance ranges or if a
change request is required
Work Performance Information, includes :
Current status,
Significant accomplishments for the period,
Scheduled activities,
Forecasts, and Issues
OV 1 - 335

Process - Outputs
Change Requests
Issued as a result of comparison between actual and planned
results ( Baselines)
Include approved changes , which are ready for implementation by
the project team.
Documented, authorized and controlled changes to expand or
reduce project scope. ( to avoid Scope creep)
Used to revise and may Modify project management plans ,
Policies , procedures, costs or budgets, and Adjusting schedules.
OV 1 - 336
Integrated Change Control

The process of identifying, documenting, approving or rejecting, and
controlling changes to the project baselines. (Cost ,Time , Quality , scope)
Reduces risk to a project by governing the execution of proposed changes
that will affect schedule and cost or other objectives.
Allows project managers to record requested changes.
Helps ensure that changes are implemented in a standardized and
approved manner..
Requires the PM along with a Change control board (CCB) to monitor ,
coordinate, and implement changes to all elements of project work.
Change control board (CCB)
Internal unit or department charged with monitor , coordinate, and
implement changes to all elements of project work affecting the original
scope, cost, Quality or schedule baselines
Accepting or rejecting changes.
operates closely with Sponsor, customers, key stakeholders
OV 1 - 337
Causes of Project Changes
Cause
Description
Inaccurate initial
estimates
Due to:
Lack of experience.
Lack of information.
Precedence to inaccurate data.
Excessive optimism.
Technological difficulties.
Unreliable resources.
Specification
changes
Broadening the project's scope to include new specifications and

deliverables.
New regulations
Accommodating new regulations may have an effect on the resource

needs, schedule durations, and quality specifications.
Missed
requirements
Complete and comprehensive information may not be captured when

interviewing stakeholders and end users. This may lead to slippages at
different phases in the project.
OV 1 - 338
The Perform Integrated Change Control

Process
Perform Integrated Change Control is the process of reviewing all
change requests; approving changes and managing changes to
deliverables, organizational process assets, project documents, and
the project management plan.
OV 1 - 339
The Perform Integrated Change Control

Process T & T
Meetings
A change control board CCB is responsible for meeting and reviewing

the change requests and approving or rejecting those change requests.
All decisions made must be communicated to the stakeholders.
Change Control Tools
In order to facilitate change management, manual or automated tools

may be used.
Tool selection should be based on the needs of the project
stakeholders.
Tools are used to manage and communicate the change requests and
the resulting decisions
OV 1 - 340
Change Management Advantages

Advantages of Change management ( Skills) Includes:
Faster response time.

Maximum traceability of changes.
Increased team awareness of change needs.
Increased engagement of team and stakeholders.
Organizational framework for moving forward effectively.
Recommended
Book
OV 1 - 341
The Validate Scope Process

It is Important To make sure that project deliverables meet project
requirements and stakeholders expectations , before you can gain formal
acceptance.(securing approval for completing the remaining project work)
Validate Scope is the process of formalizing acceptance of the completed
project deliverables.
It brings objectivity to the acceptance process and increases the chance of
final product, service, or result acceptance by validating each deliverable.
OV 1 - 342
The Validate Scope Process Inputs

Requirements Traceability Matrix
A table that links requirements to their source and traces them
throughout the project life cycle .
This also helps ensure that all approved requirements are delivered
at the end of the project.
Verified deliverables
Are project deliverables that are completed and checked for
correctness through the Control Quality process.
OV 1 - 343
The Validate Scope Process T & T

Inspection
An official examination of work results to verify requirements are met.

(Review , product review , audit , walkthrough)
May be conducted by an Internal or External team.
Group Decision-Making Techniques
These techniques are used to reach a conclusion when the validation is

performed by the project team and other stakeholders.
Unanimity, Majority, Plurality , Dictatorship
OV 1 - 344
The Control Scope Process

Control Scope is the process of monitoring the status of the project and product
scope and managing changes to the scope baseline.
It allows the scope baseline to be maintained throughout the project.

Controlling the scope changes helps you minimize the impact to project time, cost
and quality commitments.
OV 1 - 345
The Control Scope Process T & T

Variance Analysis
Project performance measurements that are used to assess the

magnitude of variation from the original scope baseline or expected
results.
Important aspects of project scope control include determining the cause
and degree of variance relative to the scope baseline , and deciding
whether corrective or preventive action is required.
OV 1 - 346
Monitoring and Controlling Project

Schedule and Costs
Control the Project Schedule
Control Project Costs
OV 1 - 347

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 348
The Control Schedule Process

Process of monitoring schedule status & performance and controlling changes to the
schedule baseline. ( PM & CCB ??)
In the Planning Phase , you developed a Schedule to serve as a baseline during the
execution , monitoring and control.
You need to determine how much variance exists between the actual work & the work
scheduled (Planned Work).
OV 1 - 349
The Control Schedule Process T & T

Performance Reviews
Measure, compare, and analyze schedule performance such as actual

start and finish dates, percent complete, and remaining duration for
work in progress. Some techniques :
Variance Analysis
Determines the cause and degree of variance compared to the
schedule baseline ,
Helps to decide weather Corrective / Preventive actions are required.
Trend analysis
Examines project performance over time to determine whether performance is
improving or worsening.
Schedule compression ( Types ?? )
1- Schedule Crashing ( Adding more resources to C.P. activities)

2- Fast Tracking . ( Overlap Activities)
Resource optimization
Resources Levelling , Resources Soothing

OV 1 - 350
Earned Value Management (EVM) , T&T

Variance Analysis
A method of measuring project performance.
Analyzes the project progress by comparing the actual schedule and cost
performance against the planned performance as laid in the cost and
schedule baselines.
By this method you can identify whether the project is on time and within the
budget .
Schedule Variance ( SV) results when work is not completed when it was
scheduled to be completed.
Important to understand the monetary value of work contribution. SV is
expressed in Monetary value.
OV 1 - 351
Earned Value Management (EVM)
Used to Answer : How much work should be done?

How much work was completed?
How much did the work cost?
How much is the task / project supposed to cost?
OV 1 - 352
EVM Variables
Calculates three independent variables to assess and monitor
project cost and schedule performance progress.
EVM variables include:
Planned Value (PV).

Earned Value (EV).
Actual Cost (AC).
Used to:
Provide measures of work accomplished as planned.

Forecast project cost at completion.
OV 1 - 353
EVM Variables
EVM involves calculating three independent variables to assess and
monitor schedule and cost performance progress
Term
Description
Planned Value (PV)
The approved budget assigned to the work to be accomplished for an

activity or work breakdown structure component. ( As Planned)
Budget At
Completion (BAC)
The total sum of the budget ( Planned value) for a project
Earned Value (EV)
The Budgeted value of work actually accomplished . It is calculated

by multiplying the percentage of work completed by the
budgeted cost for the activity .
EV = PV * % Completion
Actual Cost (AC)
The Actual total cost incurred in accomplishing a task within a period

of time.
OV 1 - 354
Basics PV
Project or a task baseline shows a cost of 240K (BAC) , and = 24

months. ( Now: PV=100 k) The task was planned to have
accomplished $100k worth of work in twelve months (PV)
355
OV 1 - 355
Basics EV
The task was planned to have accomplished $100k worth of work in

twelve months (PV) , but the real accomplishment was only (60%) worth
$60k (EV). (EV = PV * % Completion ) - The graph shows a "behind
schedule"
356
OV 1 - 356
EVM Basics
From the accounting system, we determine the actual costs (AC) for
performing the $60K work was $110K. ( Over Budget)
357
OV 1 - 357
PV (Cont.)
Example: Evaluating PV for a project to build a shed.
Three activities:
Flooring = Budget = $200 , Duration = 2 days
Drywalling = Budget = $800 , Duration = 4 days
Roofing = Budget = $600 , Duration = 3 days
Total budget at completion 9 days ( BAC):
$200 + $800 + $600 = $1,600
Total budget calculated for first six days:
2 days (flooring) + 4 days (drywalling) = $1,000
[$200]
+
[$800]
Therefore, PV (Planed Value ) for first six days = $1,000
OV 1 - 358
EV (Cont.)
Example: Evaluating EV for the shed building project.
Performance report for the three activities at the end of day six :
Flooring = $200 : 100% complete
Drywalling = $800 : 75% complete
Roofing = $600 : 0% complete
EV (Flooring) = (100% x flooring budget)
EV (Drywalling) = (75% x drywalling budget)
EV (at day Six) = (100% x 200) + (75% x 800)
EV = 200 + 600
EV (at day Six) = $800
Remember that PV (Planed Value ) for first six days = $1,000
OV 1 - 359
AC (Cont.)
Example: Evaluating Actual cost AC for the shed building project at the
end of day 6 .
Actual money spent on flooring is $180. ( budget was 200)
Actual money spent on drywalling is $700. ( Budget was 800)
Actual cost for the project for six days: $180 + $700 = $880.
( total budget was 1000 and EV =800)
OV 1 - 360
Schedule Performance Measurement

Any technique used to determine how the project is performing in
terms of time as compared to its planned performance.
Indicates how much variance exists between the actual work
completed and the work scheduled.
Performance measurement techniques include:
Schedule Variance (SV).

Schedule Performance Index (SPI).
Trend analysis.
Variance analysis.
Determines if the schedule variance is potentially harmful to the

project and if you need to take appropriate corrective actions.
OV 1 - 361
Schedule Variance (SV)

The measured difference between the actual completion of an activity
and the planned or scheduled completion of an activity.
SV = EV PV.
SV = EV PV (+ = Ahead of schedule)
Schedule variance
( 0 = On Schedule
( - = Behind schedule )
Example : Calculating schedule variance for a construction project plan.
Total project budget is $800,000. (BAC)

$500,000 has to be spent by the fourth reporting period. (PV 4th)
Only $425,000 worth of work is accomplished.(EV)
$425,000 (EV) - $500,000 (PV) =(-)$75,000 (SV).
Project is behind schedule.
OV 1 - 362
Scheduled Performance Index (SPI)

Measures schedule performance efficiency.
SPI is the ratio of work performed to work scheduled.
SPI = EV / PV. -- Result can be expressed in % format
SPI = EV / PV ( SPI > 1
Schedule performance index
( SPI = 1
( SPI < 1
- Ahead of Schedule)
- On Schedule)
- Behind Schedule)
PV= $500,000 , EV= $425,000

SPI = 425,000 / 500,000 = 0.85 ( Less than 1 , means 15 % Behind schedule
or Working at 85% efficiency)
OV 1 - 363
SPI Trend Analysis

SPI curve for a project with normal variance would show some
fluctuations on the graph but tends to remain within the range of SPI 1.0.
Schedule Status
SPI 1.0
Reporting Periods
A normal SPI curve

OV 1 - 364
SPI Trend Analysis (Cont.)

SPI graph could potentially start to fall below SPI 1.0 if there is a
schedule overrun.
Schedule Status
SPI 1.0
Reporting Periods
A potential SPI curve for a schedule overrun

OV 1 - 365
The Control Costs Process

Process of monitoring cost performance and controlling changes to
the cost baseline.
OV 1 - 366
Cost Variance (CV)

Any difference between the earned value and the actual cost incurred to
complete work.
CV = EV AC.
Cost variance
CV = EV AC (+ = Below Budget)
( 0 = On Budget )
( - = Over Budget)
An illustration of Cost Variance (CV)
OV 1 - 367
The Cost Performance Index (CPI)

A measurement of cost performance used to determine whether the project
is over or under budget.
CPI = EV / AC.
CPI = EV / AC ( CPI > 1 Under Budget)
( CPI = 1 On Budget)
( CPI < 1 Over Budget)
Cost performance index
Schedule Status
CPI 1.0
An illustration of the Cost Performance Index (CPI)

1
5
Reporting Periods
8
OV 1 - 368
Performance Measurement Analysis

Techniques
Forecasting.
Used to predict the future performance of the project based on its

currents performance.
Forecasting Methods
Category
Description
Time series methods
Estimation of future outcomes are based on historical data.

(EVM)
Casual or econometric
methods
Forecasting the factors that may influence the identified

variables, by combining economic theories and statistical
information. (econometrics . i.e. inflation )
Judgmental methods
Forecasting by intuitive methods and probability estimates.

(Delphi , surveys)
OV 1 - 369
EVM Measures
Performance Measurement Techniques
Most common used EVM Measures are :
EVM Measures
Equation
Earned Value
EV = PV X % Complete
SV = EV PV (+ = Ahead of schedule)
Schedule variance
( 0 = On Schedule
( - = Behind schedule )
Schedule performance index
SPI = EV / PV ( SPI > 1 Ahead of Schedule)

( SPI = 1 On Schedule)
( SPI < 1 Behind Schedule)
Cost variance
CV = EV AC (+ = Below Budget)
( 0 = On Budget )
( - = Over Budget)
Cost performance index
CPI = EV / AC ( CPI > 1 Under Budget)

( CPI = 1 On Budget)
( CPI < 1 Over Budget)
OV 1 - 370
Monitoring and Controlling Project

Performance and Quality
Control Quality
Control Communications
Control Stakeholders Engagement.
OV 1 - 371

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 372

(Cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management

Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management

Identify Risks
Analysis
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan
Stakeholder
Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 373
The Control Quality Process

Control Quality is the process of monitoring and recording results of executing
the quality activities to assess performance and recommend necessary
changes.
Include:
Identifying the causes of poor process or product quality and recommending and
taking action to eliminate them.
Validating that project deliverables meet the requirements specified by key
stakeholders .
Is often performed by a quality control Dept.
OV 1 - 374
Tolerances
The measurement values that determine if a product or service is
acceptable or unacceptable.
The standards against which data collected will be analyzed.
Typically expressed in ranges
Acceptable = Within range
Unacceptable = Out of Range
Example: Tolerance for a product weight.

Tolerance level: 5.8 grams + 0.2 grams.
Unacceptable level:
More than 6 grams.

Less than 5.6 grams.
OV 1 - 375
Control Quality Process (T & T )

Seven basic quality tools
The seven basic quality tools are (7QC) :
Cause-and-effect diagrams
Flowcharts
Checksheets ( tally sheets)
Pareto diagrams
Histograms
Control charts
Scatter diagrams
Statistical Sampling
A technique used to determine characteristics of an entire population
based on actual measurement of its representative sample.
Produces a process that does not require inspection of every item.
( Polling , surveying )
OV 1 - 376
Perform Quality Control: T&T

Histograms.
It is a bar chart showing a distribution of variables.
Each column represents an attribute or characteristic of a problem.

The height of each column represents the relative frequency of the
characteristic.
Histogram helps identify the cause of problems in a process by the shape and
width of the distribution.
377
OV 1 - 377
Perform Quality Control: T&T

Pareto Diagrams
Are histograms used to rank causes of problems in a hierarchical format.
Variables are ordered by frequency of occurrence.
The goal is to narrow down the primary causes of variance . AND
Focus energy and efforts on the real source of variance.
Cumulative Percentage of Failures
400
# Failures
320
240
160
80
100%
80%
60%
40%
20%
0%
A
C
D
Causes of Failure
A Pareto diagram
OV 1 - 378
The 80/20 Rule

General guideline with many applications.
Involved in controlling processes.
Contends that 80 percent of problems or defects are commonly due
to 20 percent of causes.
Highest Frequency
Lowest
Frequency
OV 1 - 379
The Control Communications Process

Control Communications is the process of monitoring and controlling
communications throughout the entire project life cycle.
Ensure that the information needs of the project stakeholders are met
It ensures an optimal information flow among all communication
participants, at any moment in time.
OV 1 - 380
The Control Communications Process T&T

Information Management Systems
An information management system provides a set of standard tools for
the project manager to capture, store, and distribute information to
stakeholders about the projects costs, schedule progress, and
performance.
Examples of distribution formats may include table reporting,
spreadsheet analysis, and presentations.
Graphic capabilities can be used to create visual representations of
project performance information.
Meetings ( Status Meetings) Benefits of meetings :
Analysis of schedule and budget
Feedback
Communication
Identification of variance
Implementation of corrective actions
OV 1 - 381
The Control Stakeholder Engagement Process

Control Stakeholder Engagement is the process of monitoring overall
project stakeholder relationships and adjusting strategies and plans for
engaging stakeholders.
The key benefit of this process is that it will maintain or increase the
efficiency and effectiveness of stakeholder engagement activities as the
project evolves and its environment changes.
OV 1 - 382
Monitoring and Controlling Project Risk and

Contracts
Control Project Risk
Control Project Procurements
OV 1 - 383

(Cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management

Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management

Identify Risks
Analysis
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan
Stakeholder
Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 384
Risk Management
Risk Management
Planning
Risk
Identification
Qualitative Risk
Analysis
Quantitative Risk
Analysis
Risk Response
Planning
Risk control
OV 1 - 385
The Control Risks Process

Control Risks is the process of implementing risk response plans,
tracking identified risks, monitoring residual risks, identifying new
risks, and evaluating risk process effectiveness throughout the
project.
It improves efficiency of the risk approach throughout the project life
cycle and continuously optimize risk responses..
OV 1 - 386
The Control Risks Process T & T

Risk Reassessment
Control Risks often results in identification of new risks, reassessment of

current risks, and the closing of risks that are outdated.
Project risk reassessments should be regularly scheduled.
Risk Audits: The project risk response audit process examines:
The team's ability to identify risks.
The effectiveness of risk response plans.
The performance of risk owners.
Audit may be performed by:
A third party.
The project's risk officer.
Qualified personnel.
****** A response to a risk event that was

not defined in advance of its
occurrence is called a:
Workaround response
Risk response audit for a project

OV 1 - 387
The Control Procurements Process
Control Procurements is the process of managing procurement

relationships, monitoring contract performance, and making changes and
corrections to contracts as appropriate.
It ensures that both the sellers and buyers performance meets

procurement requirements according to the terms of the legal agreement.
Controlling payments to the sellers.
OV 1 - 388
The Control Procurements Process T & T

Contract Change Control System
The process by which the procurement can be modified.
Includes paperwork, tracking systems, dispute resolution procedures, and
approval levels necessary for authorizing changes.
The contract change control system is integrated with the integrated
change control system.
Procurement Performance Reviews
A structured review of the sellers progress to deliver project scope and
quality, within cost and on schedule, as compared to the contract.
Inspections and Audits
Conducted during execution of the project to verify compliance in the
sellers work processes or deliverables.
Performance reporting
Provides management with information about how effectively the seller is
achieving the contractual objectives.
OV 1 - 389
The Control Procurements Process T & T

Payment Systems
Payments to the seller are typically processed by the accounts payable
system of the buyer after certification of satisfactory work by an authorized
person on the project team.
All payments should be made and documented in strict accordance with the
terms of the contract.
Claims Administration
Any changes to the contracts terms are usually called claims, disputes, or
appeals, where the buyer and seller cannot reach an agreement on
compensation for the change.
(if not resolved through negotiations(preferred) then must follow another path
(legal))
Records Management System
A system to manage contract and procurement documentation and records.
Part of the project management information system
OV 1 - 390
The Duties of the Procurements

Administrator
On a small project , the project manager plays the role of contract or
procurement Administrator
On Large projects , PM delegates this role to one or more team
members and monitor them.
The procurements administrators duties include:
Acting as compliance officer.

Interpreting contract specifications.
Monitoring seller performance.
Managing change requests.
Resolving disputes and managing payments.
Dealing with contract breach.
OV 1 - 391
Changes to Agreement (Contract) Terms
Either party can propose Agreement (contract) change requests for

any of the contract terms , including scope , cost , delivery date, or
Quality of goods or services.
Change
Description
Administrative
These are the non-substantive and most common changes to the way the
contract is administered. (Requires no payment adjustments)
Contract modification
This is a substantive change to the contract requirements such as a new

deadline or a change to the product requirements. ( May Cause claims for
payment adjustments )
Supplemental
agreement
This is an additional agreement related to the contract but negotiated

separately. (Separate Payment Schedule Attached)
Constructive
These are changes that the seller may have caused through action or inaction.
(Un -Agreed - Upon changes to certain specified requirements of the contract)
( May Cause claims for payment adjustments )
Termination of
contract
A contract may be terminated due to seller default or for customer

convenience. Defaults are typically due to non-performance such as late
deliveries, poor quality, or non-performance of some or all project
requirements.
OV 1 - 392
Legal Issues
Legal Issue
Description
Warranty
A promise, explicit or implied, that goods or services will meet a predetermined standard. The standard may cover reliability, fitness for use, and
safety.
Waiver (Give up)
The giving up of a contract right, even inadvertently.(by mistake)
Breach of contract
Failure to meet some or all of the obligations of a contract. It may result in

damages paid to the injured party, litigation, or other ramifications.
OV 1 - 393
Types of Warranties
Type of Warranty
Description
Express warranty
If the pre-determined standard for quality or performance is specified, either in

a formal warranty or in the manufacturer's description of the product, it is
considered an express warranty.
Implied warranty
If the pre-determined standard for quality or performance exists but is not

specified, it is considered an implied warranty.
Warranties of
merchantability
Implied warranties that require goods to be fit for ordinary usage. Any sale of
an item is subject to warranties of merchantability.
OV 1 - 394
Types of Waivers
Waiving contract rights includes:
Accepting a product that fails to meet quality or performance standards.

Accepting late deliveries.
Overlooking non-conformance to contractual obligations.
To Protect against losses incurred by an inadvertent waiver of

contract rights , some contracts are written to specifically exclude
the possibility of waiving a special right.
OV 1 - 395
Breaches of Contract
Type of Breach
Description
Anticipatory breach
An unavoidable indication that the other party will not be able to produce the
performance necessary to fulfill the contract. ( Late delivery)
Immaterial breach
The contract has breached in such a way that there is no resulting damage to
the injured party; since there are no damages, the injured party is not entitled
to receive compensation. ( Minor changes , different color s, different design)
Material breach
A serious breach that prevents the injured party from benefiting from the
contract. (Different specifications , affect performance)
Fundamental breach
A breach so serious that it negates the very foundation of the contract.

(permits the damaged party to terminate the contract)
OV 1 - 396
Closing the Project

Ending a project requires the same care and attention as starting a project.
Obtaining formal acceptance of projects final products , services or results
ensure that the project is properly closed.
Includes finalizing all activities completed across all Project Management
Process Groups.
Formally close the project or a project phase.(Multi Phase projects)
In this Lesson :
Close Project Procurements
Close the Project or Phase .
OV 1 - 397

Knowledge Areas
Project Integration
Management
Initiating Process
Group
Develop Project
Charter
Planning
Process Group
Develop Project
Management Plan
Executing
Process Group
Direct and Manage

Project Work
Monitoring &
Controlling Process
Group
Monitor and Control
Project Work
Perform Integrated
Change Control
Project Scope
Management
Plan Scope
Management
Define Scope
Create WBS
Validate Scope
Control Scope
Project Time
Management
Plan Schedule
Management
Define Activities
Sequence Activities
Estimate Activity
Resources
Estimate Activity
Durations
Develop Schedule
Control Schedule
Project Cost
Management
Plan Cost
Management
Estimate Costs
Determine Budget
Control Costs
Project Quality
Management
Plan Quality
Management
Perform Quality
Assurance
Closing
Process Group
Close Project
or Phase
Control Quality
OV 1 - 398

(Cont.)
Knowledge Areas
Initiating
Process Group
Planning
Process Group
Executing
Process Group
Project Human
Resource
Management
Plan Human Resource

Management

Manage Project Team
Project
Communications
Management
Plan Communications
Management
Manage
Communications
Project Risk
Management

Identify Risks
Analysis
Analysis
Plan Risk Responses
Project
Procurement
Management
Plan
Stakeholder
Management
Manage Stakeholder
Engagement
Project
Stakeholder
Management
Identify
Stakeholders
Monitoring &
Controlling
Process Group
Closing
Process Group
Control
Communications
Control Risks
Control
Procurements
Close
Procurements
Control
Stakeholder
Engagement
OV 1 - 399
The Close Procurements Process

The process of completing each project procurement by:
Ensuring that contractual obligations have been met on both sides.

Resolving any outstanding issues.
Involves:
Verifying that work was done and delivered as specified.

Updating contract records accordingly.
Arranging for final settlement of Agreement obligations.
OV 1 - 400
The Close Procurements Process T & T

Procurement Audits
A formal evaluation of both the seller's performance of the contract, and the
effectiveness of the procurement process itself.
Establishes a record that may be used to shape procurement practices in

other contracts for projects.
Negotiated Settlements
The primary goal is to arrive at a final equitable settlement of all outstanding

issues, claims, and disputes by negotiation .
Whenever settlement cannot be achieved through direct negotiation, some

form of Alternative Dispute Resolution (ADR) ( included in the contract)
including mediation or arbitration may be explored.
When all else fails, litigation in the courts is the least desirable option.
OV 1 - 401
Procurement Audit Lessons Learned

Can provide useful
information for future
contracts.
Helps others in the
organization apply the
learning to their
situations.
Procurement audit to evaluate second grade phonics textbook sellers

OV 1 - 402
Closed Procurements -output

Providing a formal written notice that the contract has been
completed from the buyer to the seller.
Requirements for formal procurement closure are usually defined in
the terms and conditions of the contract and are included in the
procurement management plan.
OV 1 - 403
The Close Project or Phase Process

Close Project or Phase is the process of finalizing all activities across
all of the Project Management Process Groups to formally complete the
project or phase.
It provides lessons learned, the formal ending of project work, and
the release of organization resources to pursue new projects.
OV 1 - 404
Administrative Closure
Involves:
Verifying and documenting project results to formalize project or phase

completion.
Gathering and updating project documentation and relevant records and
reports.
Ensuring that the phase or project requirements were met and formal
acceptance was granted.
OV 1 - 405
Project Records to Archive
Project management plan

Performance records
Contract documentation
Communications
Project databases
Staff evaluations
Lessons learned
Acceptance documentation
OV 1 - 406
Lessons Learned Reports

Documents that capture important and helpful information about the
work done in a project or a project phase.
Identify both the project team's strengths and areas for
improvement.
Compiled for the benefit of future project teams. Include:
Questioning the key team members and stakeholders about:
What went well on the project.
What they would do differently next time.
The project managers document includes:
Challenges that had been overcome.
Suggestions that were generated.
OV 1 - 407
Considerations of Lessons Learned

Scheduling lessons learned
Conflict management lessons learned
Sellers lessons learned
Customer lessons learned
Strategic lessons learned
OV 1 - 408
Closeout Meetings
Sessions held at end of project or phase.
Involves:
Discussing the work.

Capturing lessons.
May include stakeholders, team members, project resources, and

customers.
OV 1 - 409
How to Close the Project or Phase

To properly close a project or phase:
1. Use a project termination checklist, if available.
2. Gather and organize performance measurement documentation.
3. Release project resources.
4. Update records and resource pool database.
5. Analyze project success and effectiveness.
6. Prepare lessons learned reports and a final project report.
7. Obtain project approval from customer.
8. Archive indexed project records.
9. Celebrate the success of the project.
OV 1 - 410

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WELCOME

Name : Maysarah Al-Alami,

The Project Management Institute - PMI

Making project management indispensable for business

Whats a PMBOK Guide?

Known as A Guide to the Project Management Body of

Describes the concepts, skills, and techniques unique to

Identifies the knowledge that project managers should

Became the ultimate standard for Project Management.

Provides a number of best practices in project

Examining Professional Project Management

Lesson 1 :- Examining Professional Project

Projects and Strategic Planning

Why Do we need projects ??

Example: Creating interior design for a solar powered car.

**** e-Gov program.

Relationships Among Project, Program, and

Carrying out day-to-day organizational functions.

Example: Operations in a new oil refinery.

Projects Vs. Operations

One of a kind, temporary process

No clear beginning or ending

Clear beginning and ending

Same output created each time the

Everyone in work group performs

Requires multi-disciplined team

Writing a letter to a prospect

Project Management Office (PMO)

Project Management Office (cont.)

A primary function of a PMO is to support project managers in a variety of

Project Management Office (cont.)

Provide a consultative role to projects by supplying templates, best

Provide support and require compliance through various means.

Take control of the projects by directly managing the projects

How do you Define project Success?

Project constrains are :

Scope, Time, Cost, Quality, Resources, and risk.

It is the project managers duty to balance these often-competing

Example: Project manager responsibilities include:

Funny Project Definition

Areas of Expertise for Project Managers

Funny Project Definition

Example: The New York Yankees proposed $800 million

Staff, management, and owners of the New York

Major League Baseball

- Positive stakeholders benefit from the successful outcome of a

Types of Project Stakeholders

Defines the needs for the project output.

Provides financial resources for the project.

Works with stakeholders to define the project.

Types of Project Stakeholders ( Cont.)

The project management team comprises members who are responsible

Contains people from different groups who possess knowledge on specific

Sellers and business

Sellers are external parties who provide components or

Society and government

Includes the public at large, the cultural values of a community,

Positive stakeholders benefit from the successful outcome of a project.( Business

1- Developing a new web site for your organization.

The Project Life Cycle

A project life cycle is a collection of project phases that defines:

What work will be performed in each phase.