Project Management

Project Management
Dr. Anbang Qi
Prof. of International Business
School of Nankai University
The Resources of the Materials

The main content is from A Guide To The
Project Management Body Of Knowledge
(PMBOK).
The copyright belongs to the Project
Management Institute.
Its website is www.pmi.org
Chapter 1 Introduction
1. The history of project management
There are three different times
Old times-before 1940s
Traditional times-1940s-1980s
Modern times-1980s till now
There are two main association:

PMI-Project Management Institute
IPMA-International Project Management
Association, before called Internet.
2. Modern Project Management
There are two characteristics for MPM
Enlarged management area-from 3 to 9 areas
Expended to all projects not only the
construction and engineering projects.
Become a discipline of Management

Operation or routine management
Project and program management
3. The importance of learning MPM
All things start with project and then may
or may not transit into operations.
The project become the great means for a
company to make profit in the knowledge
economy since all innovations are realized
through projects.
The top management should deal with
exceptions and that need PMP.
4. The Definition of Project

Project temporary endeavor undertaken to
create a unique product or service
Has a definite beginning and end and
interrelated activities
Under the restriction of resources
For some purpose of a organization or even a
person.
5. Typical Projects
R & D projects
BPR and Reorganization
Information system integration
Construction and Engineering
Scientific research and Dissertation
Olympic Games and other sports games
Every kind shows and performance
6. The Characteristics of a Project
Products or Service are unique characteristics
are progressively elaborated
Progressively: proceeding in steps
Elaborated: worked with care and detail
The work is temporary.

Time limited
There are resource restriction.
Chapter 1 - Introduction
7. The Definition of Project Management
Project Management is the overall planning,
control and coordination of project from
inception to completion.
Project Management focus on completing
project on-time, within the allotted budget and
defined scope, and satisfying the required
quality standard.
8. The Methods and Tools of PM
Project Management should apply of knowledge,
skills, tools and techniques to project activities in
order to meet or exceed stakeholder needs and
expectations from a defined project balancing
and integrating the following:
Scope, time, cost, and quality
Stakeholders expectations
Requirements (needs) vs. unidentified requirements
(expectations)
9. The difference between Program and Project
Programs adopt new set of objectives and continue to
work; Projects cease when declared objectives have
been attained
Programs are groups of projects managed in a
coordinated way to obtain benefits not available from
managing the projects individually
Most programs have elements of ongoing operations
Series of repetitive or cyclical undertakings
Projects is no ongoing operation, are often divided into

subprojects for more manageability
Often contracted out to external organizations
10. Project Management Body of Knowledge
Project integration management
Project scope management
Project time management
Project cost management
Project quality management
Project human resource management
Project communication management
Project risk management
Project procurement management
All these make up a knowledge system of PM
Project Procurement
Management
Project Human
Resource Management
Project Risk
Management
Project Scope
Management
Project Cost
Management,
Project Time
Management,
Project Quality
Management
Project Communication
Management
Project Integration
Management
The System of PMBOK
PMBOK
Generally
accepted PM
knowledge
and
practices
General
management
knowledge
and practices
Application
area
knowledge
and practices
The relationship of the knowledge
Chapter 2 Project Management

Context
1. Project Life Cycle
Project Life Cycle defines or tells:

The phases of the project (time)
The work performed in each phase (work)
The input and output of each phase (result)
The milestone of each phase (end sign)
Common Characteristics of Project Life Cycles:
Cost and Staffing levels are low at start and move higher towards the
end
Probability of successfully completing project is low at beginning, higher
towards the end as project continues
Stakeholder influence is high at the beginning and progressively lowers
as project continues
Installation
substantially complete
Percentage
Complete
100%
Full operation
Major contract let

Project go decision
Phase 1
Feasibility
study
suggestion
feasibility
pre-design
approve
Phase 2
Planning &
Design
tech-design
cost estimate
scheduling
contracting
plan details
Phase 3
Execution
fabrication
construction
installation
trial
Phase 4
Turnover
final testing
maintenance
Phase 0
Phase 1
Phase 2
Phase 3
Phase 4
Milestone 3
Production
Approval
Milestone 4
Major
Modification
Approvals
Determi
-nation
Concept
Engineering
Production Operation
Demonsof the Exploration
and
and
and
tration
and
Mission
and
Manufacturing Development Supporting
Validation
Need
Definition
Development
Milestone 0
Concept
Study
Approval
Milestone 1
Concept
Demonstration
Approval
Milestone 2
Development
Approval
Project Life Cycle of DOD of USA for Acquisition

Context
2. Phases of a Project
Project Phases are marked by the completion of
a deliverable
Tangible, verifiable work product
Review of deliverables and approval/denial are
phase exits, stage gates, or kill points
Phases are collected into the Project Life Cycle

Set of defined work procedures to establish
management control

Context
3. Stakeholders of projects
Stakeholders: individuals and organizations who
are actively involved in the project
Often have conflicting expectations and objectives
In general, differences should be resolved in favor of
the customer individual(s) or organization(s) that will
use the outcome of the project
Stakeholder management is a proactive task
Project Mangers must determine all stakeholders and
incorporate their needs into the project

Context
3. Stakeholders of projects
Stakeholders are:
Owners
Sponsor
Customers
End User
Contractor (Performing Organizations)
Supplier
Project Managers
Project Teams
Society and Citizens
Others: government agent and so on
Supplier
Owners
Project
Manager
Sponsor
Others
Project
Teams
Customer
End User
Society,
Citizens
The relationship of stakeholders of projects

Context
4. The Hierarchy
of Project
Organization
Management
Stakeholders Management
Performing Org. Mana.
Project Team Mana.
Project
Manager

Context
5. Organizational Systems
The organizational system of Performing
Organization is an very important environment
factor for a project.
Project based vs. Non-Project Based

Project Based derive revenues from performing
projects for others (consultants, contractors),
management by projects
Non-Project Based seldom have management
systems designed to support project needs
(manufacturing, financial services)

Context
5. Organizational Systems
Organizational Cultures and Styles:
Entrepreneurial firms more likely to adopt
highly participative Project Manager accept
higher risk/reward
Hierarchical firms less likely to adopt
participative Project Manager take fewer
risks

Context
6. Organizational Structures
Functional Organization
More emphasis on functions, Specialists
1 supervisor No career path in PM
Projectized Organization
Efficient Organization
Lack of Professionalism
Effective Communication, Duplication of functions
Matrix Organization
Visible Objectives
PM Control More than 1 boss, Potential for conflict
More support More complex to control
Tough resource allocation,Information distribution
Coordination Policies & Procedures
Project
Coordination
Chief
Executive
Functional
Manager
Line Depart.
Director
STAFF P
STAFF P
STAFF
Line
Departmen
t
Line
Departmen
t
STAFF P
STAFF
STAFF
STAFF P
STAFF
STAFF P
STAFF
STAFF P
STAFF P
Functional and
Liner Organization
Functional
Manager
Chief
Executive
Project
Coordination
Functional
Manager
Project
Manager
Project
Manager
Project
Manager
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
STAFF
Chief
Executive
Functional
Manager
Functional
Manager
Functional
Manager
STAFF
P
STAFF
P
Project
Manager
STAFF
P
STAFF
P
STAFF
P
Project
Manager
STAFF
P
STAFF
P
STAFF
P
Project
Coordination
Matrix Organization
Line Department
STAFF
P
Line Department
Project
Manager
Line Depart.
Director
Chief
Executive
Line Depart.
Director
Line Department
Line Department
Project
Coordination
Functional
Manager
STAFF
P
STAFF
P
STAFF
P
Functional
Manager
STAFF
P
STAFF
P
STAFF
P
Composite
Organization
Functional
Manager
Manager of
Project
Managers
STAFF
P
Project
Manager
STAFF
P
Project
Manager
STAFF
P
Project
Manager
Project
Coordination

Context
7. Project Management Skills
General Business Management (consistently producing
results expected by stakeholders)
Leading (establishing direction, aligning resources, motivating)
Communicating (clear, unambiguous, and complete)
Negotiating (conferring with others to reach an agreement)
Problem Solving (definition and decision making)
Distinguish causes and symptoms
Identify viable solutions
Influencing Organization (understanding power and politics)

Context
8. Socioeconomic Influences
Standards document approved that provides
common, repeated use, rules and guidelines
Regulations document that identifies products,
services or characteristics
Standards often become actual regulations
Internationalization
Cultural Influences

Processes
Project Management requires active
management of Project Processes
Series of actions that achieve a result
Project Management Processes
Describing and organizing the work
Product-Oriented Processes
Specifying and creating the product

Processes
1. The Processes of Project Life Cycle
Production oriented process
Management oriented process
Total Project Life Cycle
Turnover
Production oriented process

Management oriented process
Project life cycle including the operation phases
General project LC
Operation phases

Processes
2. Management Process Groups:
Initiating processes: recognizing a project or phase
should begin
Planning processes: devising and maintaining a
workable plan
Executing processes: coordinating resources to execute
the plan
Controlling processes: ensuring project objectives are
met; monitoring, correcting and measuring progress
Closing processes: formalized acceptance

Processes
3. The Relationship of Process Groups

Process Groups are linked by the results each
produces
Process Groups are overlapping activities with
various levels of intensity
Process Group interactions cross phases
rolling wave planning
Individual processes have inputs, tools and
techniques, and outputs (deliverables)

Processes
Initiating Processes
Planning Processes
Executing Processes
Controlling Processes
Closing Processes
Links Among Process Groups in a Phase

Processes
Design Phase
Initiating
Processes
Planning
Processes
Executing
Processes
Controlling
Processes
Closing
Processes
Implementation Phase
Initiating
Processes
Planning
Processes
Executing
Processes
Controlling
Processes
Closing
Processes
Interaction between Phases of a project

Processes
Level of
Activity
Executing
Process
Initiating
Process
Phase Start
Planning
Process
Controlling
Process
Closing
Process
Phase Finish
Overlap of Process Groups in a Phase of a project

Processes
4. The Initiating Processes
Committing the organization to begin a project or
a phase of a project
Decision,
Initiation,
High-level planning,
Charter Making

Processes
5. Planning Processes
Core Planning
Scope Planning written statement
Scope Definition subdividing major deliverables into
more manageable units
Activity Definition determine specific tasks needed to
produce project deliverables
Activity Sequencing plotting dependencies
Activity Duration Estimating determine amount of
work needed to complete the activities
(continued)

Processes
Core Planning
Schedule Development analyze activity sequences, duration,
and resource requirements
Resource Planning identify what and how many resources are
needed to perform the activities
Cost Estimating develop resource and total project costs
Cost Budgeting allocating project estimates to individual work
items
Project Plan Development taking results from other planning
processes into a collective document

Processes
Facilitating (Planning) Processes
Quality Planning standards that are relevant to the
project and determining how to meet standards
Organizational Planning identify, document, and
assigning project roles and responsibilities
Staff Acquisition obtaining the human resources
Communications Planning determining rules and
reporting methods to stakeholders
(continued)

Processes
Facilitating (Planning) Processes
Risk Identification determining what is likely to affect
the project and documenting these risks
Risk Quantification evaluating risks and interactions
to access the possible project outcomes
Risk Response Development defining enhancement
steps and change control measures
Procurement Planning determining what to buy and
when
Solicitation Planning documenting product
requirements and identifying possible sources

Processes
The order of planning events :
Scope Statement
Create Project Team
Work Breakdown Structure
WBS dictionary
Finalize the team
Network Diagram
Estimate Time and Cost
Critical Path
Schedule
Budget
(continued)

Processes
The order of planning events (continued)
Procurement Plan
Quality Plan
Risk Identification, quantification and response development
Change Control Plan
Communication Plan
Management Plan
Final Project Plan
Project Plan Approval
Kick off

Processes
6. Executing Processes
Project Plan Execution performing the activities

Complete Work Packages
Information Distribution
Scope Verification acceptance of project scope
Quality Assurance evaluating overall project
performance on a regular basis; meeting
standards
Team Development developing team and
individual skill sets to enhance the project
Progress Meetings
(continued)

Processes
6. Executing Processes
Information Distribution making project
information available in a timely manner
Solicitation obtaining quotes, bids, order,
proposals as appropriate
Source Selection chooseing appropriate
suppliers
Contract Administration managing vendor
relationships

Processes
7. Controlling Processes
To regularly measure project performance and to
adjust project plan
Take preventive actions in anticipation of possible
problems
Overall Change Control coordinating changes across
the entire project plan
Scope Change Control controlling scope creep
Schedule Control adjusting time and project
schedule of activities
(continued)

Processes
7. Controlling Processes
Cost Control managing project budget
Quality Control monitoring standards and
specific project results; eliminating causes of
unsatisfactory performance
Performance Reporting status, forecasting, and
progress reporting schedule
Risk Response Control responding to changes
in risk during the duration of the project

Processes
8. Closing Processes
Administrative Closure generating necessary
information to formally recognize phase or project
completion
Contract Close-out completion and delivery of
project deliverables and resolving open issues
Procurement Audits
Product Verification
Formal Acceptance
Lessons Learned
Update Records
Archive Records
Release Team

Processes
9. The Skills for Process of Groups
Influencing the organization

Leading
Problem Solving
Negotiating
Communicating
Meetings
Project Selection Techniques
Comparative Approach (similar projects)
Constrained Optimization (mathematical approach)

Processes
10. Customizing Process Integration
Not all of the processes will be needed on
all projects, and not all of the interactions
will apply to all projects.
Key aspect of scope verification is
customer acceptance
Remember that only 26 % of projects are
succeed
Chapter 4 Project Scope

Management
1. Project Scope Management
It is the processes required to ensure that the project
includes all, and only, work required
It is used to define what is/is not included in the project
The project scope shows the work that must be done
and measured against project plan
The product scope defines features and functions
included in the product or service, and that is measured
against requirements
It is primarily concerned with defining and controlling
what is or is not included in the project.

Management
Owners
expectation
Defined
project
scope
Actual
result
The philosophy of project scope management

Management
There are 5 project scope management processes.
They are:
1. Initiation-committing the organization to begin the next phase of the
project.
2. Scope Planning-developing a written scope statement as the basis
for future project decisions.
3. Scope Definition-subdividing the major project deliverables into
smaller, more manageable components.
4. Scope Verification-formalizing acceptance of the project scope.
5. Scope Change Control-controlling changes to project scope.

Management
These processes interact with each other and
with the processes in the other knowledge areas
as well.
Each process may involve effort from one or
more individuals or groups of individuals based
on the needs of the project.
Each process generally occurs at least once in
every project phase.

Management
2. Initiation Process
A process of formally recognizing that a new
project exists, or an existing project continue to
next phase
It involves feasibility study, preliminary plan, or
equivalent analysis
Authorized as a result of:
Market Demand, Business Need;
Customer Request, Technological Advance;
Legal Requirement or others

Management
Inputs:
Product Description characteristics of the
product/service that the project was to create
Less detail in early phases, more comprehensive in latter
Initial product description is usually provided by the buyer
Strategic Plan supportive of the organization's goals

Project Selection Criteria defined in terms of the
product and covers range of management concerns
(finance, market)
Historical Information results of previous project
decisions and performance should be considered

Management
Tools & Techniques
Project Selection Methods:
Benefit measurement models comparative approaches,
scoring models, economic models
Constrained operation models programming mathematical
Decision models generalized and sophisticated techniques
Expert judgment
Business Units with specialized skills

Consultant
Professional and Technical Associations
Delphi Technique

Management
Outputs
Project Charter formally recognizes project, created
by senior manager, includes:
Business need/Business Case

Product description & title
Signed contract
Project Manager Identification & Authority level
Senior Management approval
Projects Goals and Objectives
Constraints factors that limit project management teams
options
Assumptions factors that are considered true for planning
purposes. Involve a degree of risk
(continued)

Management
3. Scope Planning
Scope Planning a process of developing a
written statement as basis for future decisions
Criteria to determine if the project or phase is
successful
Inputs:
Product description
Project Charter
Constraints
Assumptions

Management
3. Scope Planning
Tools & Techniques
Product Analysis - - developing a better
understanding of the product of the project
Cost/Benefit Analysis estimating tangible/intangible
costs and returns of various project alternatives and
using financial measures to assess desirability
Alternatives Identification generate different
approaches to the project; brainstorming
Expert Judgment

Management
3. Scope Planning
Outputs
Scope Statement documented basis for making project
decisions and confirming understanding among stakeholders.
Includes:
Project justification evaluating future trade-offs

Project Product summary of project description
Project Deliverables list of summary of delivery items
Project Objectives quantifiable criteria met for success.
Supporting detail includes documentation of all assumptions

and constraints
Scope Management Plan how project scope is managed,
change control procedure, expected stability, change
identification and classification
Control what is/is not in the project; prevents delivering extra
benefits to the customer that were not specified/required

Management
4. Scope Definition
Subdividing major deliverables into smaller,
manageable components
Improve accuracy of cost, time, and resource
estimates
Define a baseline for performance measurement
Clear responsibility assignments
Critical to project success reduces risk of higher
cost, redundancy, time delays, and poor productivity
Defines what you are doing; WBS is the tool

Management
4. Scope Definition
Inputs:
Scope Statement
Constraints consider contractual provisions
Assumptions
Other Planning Outputs
Historical Information

Management
4. Scope Definition
Tools & Techniques
Work Breakdown Structure Templates
Decomposition
The main works in scope definition

Major project deliverables and management approach
Decide cost and duration estimates
Tangible and verifiable results to enable performance
management, how the work will be accomplished
Verify correctness of decomposition- All items necessary and
sufficient? Clearly and completely defined? Appropriately scheduled,
budgeted, assigned?

Management
4. Scope Definition
Outputs
Work Breakdown Structure (WBS)
a deliverable-oriented grouping of project assignments that
organizes and defines the scope of the project
Each descending level represents further detail; smaller and more
manageable pieces
Each item is assigned a unique identifier collectively known as
code of accounts
Work Breakdown Structure Dictionary (WBSD)

All work element descriptions included in a WBSD (work, schedule
and planning information)
Other formats:Contractual WBS, Organizational (OBS) , Resource

(RBS) , Bill of Materials (BOM) , Project (PBS) similar to WBS
Software Development Project
Project
Management
Time
Product
Requirement
System
Design
Construction
& Integration
Training and
Transmitting
Owners
Requir.
Logic Sys
Design
Programming
User Documentation
quality
End Users
Requir.
Physic
Sys design
Integrating
Training
Program
Cost
Analysis
Result
System
Design
Testing
Transmitting
Program
Scope
An illustration of the WBS for a software development project

Management
5. Scope Verification
Inputs
Scope Definition Work Results WBS, WBSD
Product Documentation description available for
review (requirements)
Tools & Techniques

Inspection measuring, examining, testing to
determine if results conform to requirements
Outputs
Formal acceptance documentation identifying client
and stakeholder approval, customer acceptance of
efforts

Management
6. Scope Change Control

Influencing factors to ensure that changes
are beneficial
Determining scope change has occurred
Managing changes when they occur
Thoroughly integrated with other control
processes

Management
Scope Change Control Inputs:
Work Breakdown Structure
Performance Reports- issues reported
Change Requests expansion/shrink of scope
derived from :
External events (government regulations)
Scope definition errors of product or project
Value adding change new technology
Scope Management Plan

Management
Scope Change Control Tools & Techniques
Scope Change Control System defines procedures
how scope change can occur
All paperwork, tracking systems, approval levels
Integrated with overall change control procedures
Performance Measurement determine what is

causing variances and corrective actions
Additional Planning

Management
Scope Change Control Outputs:
Scope Changes fed back through planning
processes, revised WBS
Corrective Actions
Lessons Learned cause and reasoning for
variances documented for historical purposes
Chapter 5 Project Time

Management
1. Project Time Management
It includes the processes required to ensure timely
completion of the project.
The major processes are:
Activity Definition-identifying the specific activities that
must be performed to produce project deliverables.
Activity Sequencing-identifying and documenting
interactivity dependencies.
Activity Duration Estimating-estimating the work periods
needed to complete individual activities.
Schedule Development-analyzing activity sequences,
durations,and resource requirements for the schedule.
Schedule Control-controlling changes to the schedule.
WBS
interactivity
dependencies
Activity Definition
identifying the specific activities
Activity Sequencing
identifying and documenting
interactivity dependencies
Activity Breakdown
Analysis
Activity
Sequencing
estimating work
periods needed
Activity Duration Estimating

estimating work periods needed
to complete individual activities
Critical Path
Analysis
Arrange activity
time schedule
Schedule Development
analyzing sequences, durations,
and resource requirements
Measures for
time management
Actual change
control
Schedule Control
-controlling
changes to the schedule
Change requirement
control

Management
2. Activity Definition
Identifying and documenting specific
activities to produce project deliverables
identified in the WBS
Must be defined to meet the project
objectives

Management
Inputs
WBS primary input
Scope Statement project justification &
project objectives
Constraints
Assumptions

Management
Tools & Techniques
Decomposition outputs are expressed as
activities rather than deliverables
Templates reuse from previous projects
Plant construction project
Building subproject
Design subproject
Design management
Design work
Integration M.
Construction work
Architecture
D.
Structure D.
Scope M.
Time M.
Shop Drawing
Cost M.
Installation D.
Construction M.
Site preparing
Integration M.
Construction
Scope M.
Installation
Time M.
Hand over
Cost M.
The illustration of activity definition of a construction project
Changing
Executing
planning
a component
Framework
Foundation
a component
Framework
Foundation
Settlement
Control
Payment
Budget
Estimate

Management
Outputs
Activity List all to be performed; extension to the
WBS and includes description to ensure team
members understand work to be performed
Supporting Detail organized as needed and include
all assumptions and constraints
WBS Updates identify missing deliverables and
clarify deliverable descriptions. WBS updates often
called refinements; more likely using new
technologies in project

Management
3. Activity Sequencing
Identifying and documenting interactive
dependencies among activities.
Support later development of a realistic
schedule

Management
Inputs:
Activity List
Product Description
Mandatory Sequencing
physical limitations, hard logic, inherent in nature of work being done
Discretionary Dependencies
defined by project management team; best practices or unusual
aspects of project soft logic, preferred logic, preferential logic
External Dependencies
relationship between project activities and non-project activities
Constraints
Assumptions

Management
Tools & Techniques
Precedence Diagramming Method (PDM)
constructing network diagram using Activity On Node (AON) or
Arrow Diagramming Method (ADM), to indicate dependencies
Includes 4 types of dependencies:
Finish to Start from activity must finish before to activity can begin
Finish to Finish from activity must finish before the next may finish
Start to Start from activity must start before next to activity can start
Start to Finish task must start before next activity can finish
Project Time Management Software

Network Templates standardized networks be used.

Management
Outputs:
Project Network Diagram
schematic display of project activities and
relationships (dependencies).
Should be accompanied by a summary narrative
that describes the diagram approach
Activity List Updates
Start
End
D
Project Network Diagram with Activity On Node (AON)
B
A
Start
End
D
Project Network Diagram with Arrow Diagramming Method (ADM)

Management
4. Activity Duration Estimating
Involves assessing number of work
periods needed to complete identified
activities
Requires consideration of elapsed time,
calendars, weekends, and day of week
work starts

Management
Inputs:
Activity Lists
Constraints
Assumptions
Resource Requirements
Resource Capabilities
human and material resources, expertise
Previous Project Files,
Commercial Duration Estimates,
Project Team Knowledge

Management
Tools & Techniques
Expert Judgment
guided by historical information should be used whenever possible;
high risk without expertise avail.
Simulation
using different sets of assumptions (Monte Carlo Analysis) to drive
multiple durations
Analogous Estimating
top down estimating use actual, similar, previous known
durations as basis for future activity duration.
Used when limited knowledge is available.
Form of expert judgment
Time 1--Optimistic time
Probability
Time 2- Most Likely time

Time 3-Pessimistic time
An activity
Critical path
Time 1
Time
Time 2
Time 3
Time 1
Time 2
Time 3
Illustration of the duration simulations
Path No.1
A
5 days
B
5 days
C
5 days
Path No.3
Start
End
D
10 days
E
5 days
F
5 days
Path No.2 (critical path)

Project Network Diagram with time duration estimate
using Activity On Node (AON)

Management
Outputs:
Activity Duration Estimates
Quantitative assessments of work periods to
complete an activity.
Should indicate a range +/- of possible results
Basis of Estimates
all assumptions should be documented
Activity List Updates

Management
5. Schedule Development
Determining start and finish dates for
project activities
Schedule development process often
repeat as more information becomes
available (process inputs)
Without realistic dates, project unlikely to
be finished as scheduled

Management
Inputs:
Project Network Diagram

Resource Pool Description
Calendars
Project Calendars and Resource Calendars
Constraints
Imposed Dates, Key Events or Milestones that are required
Assumptions
Lead and Lag Time
dependencies may specify time in order to satisfy relationship
(example 2 weeks to receive order)

Management
Tools & Techniques
Critical Path Method
One time estimate per task (Most Likely)
Emphasis on controlling cost and leaving schedule flexible
Graphical Evaluation and Review Technique (GERT)

probabilistic treatment of network and activity duration estimates
Program Evaluation and Review Technique (PERT)

Sequential network and weighted average duration.
Using 3 Time estimates per activity:Optimistic, Pessimistic and Most
Likely time.
Using weighted average duration( (T1+4T2+T3)/6) to calculate
project duration
(continued)

Management
Tools & Techniques
Monte Carlo Simulation It tells:
Probability of completing a project on any specific day
Probability of completing a project for any specific amount of cost
Overall Project Risk
Resource Leveling Heuristics

leveling resources that apply to critical path activities
resource constrained scheduling or Resource Based Method
Project Management Software

Project Mangers role
Provide the team with necessary information to properly estimate the task
Complete a right check of the estimate and formulate a reserve
Project Team should be involved in determining task estimates with:

Historical Records, Personal Guesses and Judgments.

Management
Outputs:
Project Schedule Usually in following formats:
Project Network Diagrams (with date information added)
Bar or Gantt charts activity start and end dates, expected durations
Supporting Detail all assumptions and constraints. Also include:

Resource requirement by time period (resource histogram)
Alternative schedules (best/worst case)
Schedule reserve/risk assessments
Schedule Management Plan how updates are managed

Resource requirement updates leveling and activity impact

Management
6. Schedule Control
Influencing factors which create schedule
changes to ensure changes are beneficial
Determining that schedule has changed
Managing actual changes as they occur

Management
6. Schedule Control
Inputs
Project Schedule
baseline approved, measure against project
performance
Performance Reports
planned dates met, issues
Change Requests
Schedule Management Plan

Management
6. Schedule Control
Tools & Techniques
Schedule Change Control System
defines procedures for schedule changes,
paperwork, approval, tracking systems
Performance Measurement
assess magnitude of variations to baseline;
determine if corrective action is needed
Additional Planning
Project Management Software

Management
6. Schedule Control
Outputs:
Schedule Updates
for any modifications or stakeholder notification
Revisions change scheduled start and finish dates
Re-baseline may be needed in drastic situations
Corrective Action
re-align performance with project plan
Lessons Learned

Management
7. General Comments
Projects can have more than 1 critical path (increases risk)
and can involve dummy tasks
Resource Leveling involves possibly letting schedule and
cost slip
Schedules are calendar based makes this different than
a time estimate
To shorten project schedule with the critical path
add more resources to the critical path tasks--usually results in
increased cost
performing tasks in parallel--can result in re-work and
increased risk
Best to select method that has least impact on the project

(is the importance on cost, risk or schedule?)

Management
7. General Comments
Different techniques have different advantages and disadvantages

Bar (Gantt) Charts
Weak Planning Tool, effective progress and reporting tool
Does not show interdependencies of tasks
Does not help organize the project more effectively
Network Diagrams (PERT, CPM, PDM)

Shows task interdependencies
Aids in effectively planning and organizing work
Provides a basis for project control
Milestone Charts
Only shows major events
Good for reporting to management and customer
Flow Charts
tell workflow and not commonly used for project management
Chapter 6 Project Cost

Management
1. Project Cost Management
Project Cost Management :
Ensure that the project is completed within budget
Concerned with cost of resources needed to complete
activities;
Consider effect of project decisions on cost of using
product life-cycle costing
Most prospective financial impact of using the product
is outside the project scope
Consider information needs of stakeholders,
controllable and uncontrollable costs (budget
separately for reward and recognition systems)

Management
Project Cost Management:
Estimating should be based on WBS to improve accuracy

Estimating should be done by the person performing the work
Having historical records is key to improving estimates
Costs (schedule, scope, resources) should be managed through
estimates, budgeting and controlling
A cost (schedule, scope, baseline) should be kept and not
changed
Plans should be revised as necessary during completion of work
Corrective action should be taken when cost problems
(schedule, scope and resources) occur.

Management
Project Cost Management consists of:
Resource Planning
Cost Estimating
Cost Budgeting
Cost Controlling
Earned Value Analysis

Management
2. Resource Planning
Determining what physical resources and quantities
are needed to perform work
Inputs :
Work Breakdown Structure and Activity List

Network Diagram
Schedule and Risks
Scope Statement
justification & objectives
Resource Pool Description

what resources are potentially available for resource planning
Organizational Policies
staffing, procurement

Management
2. Resource Planning
Tools & Techniques

Expert Judgment
Alternatives Identification
Outputs:
what type & how many resources are needed for
each activity in the Work Breakdown Structure

Management
3. Cost Estimating
Develop approximate costs of resources
Distinguish estimating from pricing
Estimating likely amount
Pricing business decision
Identify alternatives and consider realigning

costs in phases to their expected savings

Management
3. Cost Estimating
Inputs:

Resource Rates (if known)
Historical Information project files, commercial cost
databases, team knowledge
Chart Of Accounts coding structure for accounting;
general ledger reporting

Management
3. Cost Estimating
Tools & Techniques
Analogous Estimating top down; using actual costs
from previous project as basis for estimate
Quick - Less Accurate
Parametric Modeling uses project characteristics in

mathematical models to predict costs (e.g.building
houses)
2 types: Regression analysis, Learning Curve.
Bottom Up Estimating rolling up individual activities

into project total with quantity survey and its list.
More Accurate, Requires that project be defined and understood
Computerized tools spreadsheets, software

Management
3. Cost Estimating
Outputs
Cost estimates quantitative assessments of likely costs of resources
required to complete tasks
For all resources (labor, materials, supplies, inflation allowance, reserve)
Expressed in units of currency
Supporting Detail
Description of scope (reference to the WBS)

Documentation how estimate was developed
Indication of range of possible results
Assumptions
Cost Management Plan
how cost variances will be managed
Cost Risk
Associated to seller for Fixed Price;
Associated to buyer for Time and Materials budget (cost plus profit)

Management
3. Cost Estimating
Accuracy of Estimates
Cost Estimate: -25% - 75%; usually made
during Initiation Phase
Budget Estimate: -10% - 25%; usually made
during the Planning phase
Definitive Estimate: -5% - 10%; usually made
during the Planning phase

Management
4. Cost Budgeting
Involves allocation of total estimate to individual work
to establish a cost baseline to measure performance
Inputs
Cost Estimate
Project Schedule includes planned start and finish
dates for items costs are allocated to
Needed to assign costs during the time period when the
actual cost will be incurred

Management
4. Cost Budgeting
Tools & Techniques
Same as Cost Estimating Tools and Techniques
Management Reserve Contingency for all risks
Outputs
Cost Baseline time phased budget to measure and
monitor cost performance
Developed by summing estimated costs by period (S curve
of values vs. time)
Larger projects have multiple baselines to measure different
aspects of cost performance
C1
Unexpected
Situation
Project Budget
Baseline
C2
C3
Expected
Situation
S3
S2
The illustration of project budgeting
S1
Schedule
calendars

Management
5. Cost Control
Concerned with influencing factors that create
changes to the cost baseline that are beneficial
Determining that the cost baseline has changed
Monitor cost performance to detect variances
Record all appropriate changes accurately
Preventing incorrect, unauthorized changes being included in the
cost baseline
Informing stakeholders of authorized changes
Determine the whys of positive and negative variances
Integrated will all other control processes (scope, change, schedule,
quality)

Management
5. Cost Control
Inputs
Cost Baseline
Performance Reports with 3 methods:
50/50 Rule task is considered 50% complete when it
begins and gets credit for remainder 50% only when
completed
20/80 Rule - task is considered 20% complete when it
begins and gets credit for remainder 80% only when
completed
0/100 Rule task only credited when fully completed
Change Requests
Cost Management Plan

Management
5. Cost Control
Tools & Techniques
Cost Change Control System
defines the procedures by which the cost baseline may be
changed
Performance Measurement
assess magnitude of cost variations (Earned Value Analysis)
and what is causing the variance
Additional Planning
examine alternatives
Computerized Tools
forecast planned costs, track actual costs, forecast effect of
cost changes

Management
5. Cost Control
Outputs
Revised Cost Estimate
Modifications to cost information; require stakeholder approval and
adjustments to other project areas
Budget Updates
changes to approved cost baseline; revised in response to scope changes
Corrective Action
Estimate at completion (EAC) forecast of total expenditures
Actual to date plus remaining budget modified by a factor (cost performance
index)
Current variances are seen to apply to future variances
Actual to date plus new estimate for remaining work

Original estimates are flawed, or no longer relevant
Actual to date plus remaining budget

Current variances are typical and similar variances will not occur in the future
Lessons Learned

Management
6. Earned Value Analysis
Integrates cost and schedule
Better that comparing projected vs. actual because
time and cost are analyzed separately
Terms:
BCWS Budgeted Cost of Work Scheduled (Plan Value)
BCWP Budgeted Cost of Work Performed (Earned Value) [(Work
actually Performed) (Budgeted Cost of that work)
ACWP Actual Cost of Work Performed (Actual Cost)
BAC Budget at Completion (total budget for the whole job)
EAC Estimate at Completion (what do we expect the total project to
cost); EAC refers to when job is completed.
ETC Estimate to Completion (how much more do we expect to
spend to finish the job), ETC refers to this point on
VAC Variance at Completion (how much over/under budget do we
expect to be)

Management
6. Earned Value Analysis
Earned Value Analysis Formulas
Variance (Plan Actual)
Cost Variance (CV): BCWP ACWP; negative is
over budget
Schedule Variance (SV): BCWP BCWS; negative
is behind schedule
Cost Performance Index (CPI): BCWP
ACWP
--I am only getting x out of every $.
(continued)

Management
Formulas
Schedule Performance Index (SPI): BCWP
BCWS
I am only progressing x % of the planned rate
Estimate at Completion (EAC): BAC

CPI
As of now we expect the total project to cost x$
Estimate to Complete (ETC): EAC ACWP;

how much will it cost from now to completion
Variance at Completion: BAC EAC;

when the project is over how much more or less did we spend
(most common way of calculating EVA)
Negative is bad; positive results are good
Cost
Work performed
ETC=
EAC
ACWP
Time Variance
Variance at Com:
BAC EAC
Actual Cost
Budget
Baseline
Earned Value
CV= EV-AC
E
A
C
P
V
E
V
A
C
= BCWP ACWP
SV=EV-PV
= BCWP BCWS
Actual time spend

2 years
The illustration of EV Analysis
4 years
Schedule
calendars
Chapter 7 Project Quality

Management
1. Quality Definition
Quality is the totality of characteristics of an entity
that bear on its ability to satisfy stated or implied
needs
Critical aspect is to turn implied needs into stated
needs through project scope management
Customer satisfaction conformance to specifications
(must produce what is stated) and fitness for use
(must satisfy real needs)
Management responsibility requires participation of
team; responsibility of management to provide
resources
Quality objectives are approved in conceptual stage by
project owner

Management
1. Quality Definition
Responsibility to project quality
Entire organization
Ultimate employee or owner
Overall or Primary Project Manager
Design and Test Specifications engineer
Prevention over inspection

Quality must be planned in not inspected in
Quality attributes
can be subjective, objective and are specific characteristics
for which a project is designed and tested

Management
2. Project Quality Management
Processes required to ensure that the project
will satisfy the needs for which it was
designed
Includes all activities of the overall
management function that determine the
quality policy, objectives, and responsibilities.
These are implemented by quality planning,
quality control, quality assurance, and quality
improvement

Management
2. Project Quality Management
3 major processes:
Quality Planning
identifying quality standards that are relevant to the project (Plan),
by Project Manager, Project Owner
Quality Assurance
evaluating overall project performance to provide confidence that
project will satisfy relevant quality standards (Implement or
Execution); by Project Team
Quality Control
monitoring specific results to comply with quality standards and
eliminating unsatisfactory performance causes (Check or Control);
by Project Manager, Project Team
Must address(do) the management of the project and the product of
the project

Management
3. Quality Planning
Identifying which standards are relevant to
project and how to satisfy done during Project
Planning Phases
Inputs
Quality Policy
the overall intentions and direction of an organization with regard to
quality as expressed by management
Scope Statement
Product Description
Standards and Regulations
Other Process Outputs
processes from other knowledge areas (procurement planning)

Management
3. Quality Planning
Tools &Techniques
Benefit/Cost Analysis
consider trade-offs, benefit is less rework; cost is expense of project
management activities
Benchmarking
comparing actual or planned practices to those of other projects
Flowcharting
Cause and effect diagramming (fishbone diagrams) illustrate how
causes relate to potential problems or effects
System or Process flowcharts show how various elements of the
system interrelate
Design of Experiments
analytical technique which defines what variables have most
influence of the overall outcome
C
Cost
Quality L1
Quality L2
Total Quality Cost
Quality Assurance Cost
C0
Economic Quality Cost
Quality Failure Cost
Q
Economic Quality
Illustration of Benefit/Cost Analysis
Quality

Management
3. Quality Planning
Outputs
Quality Management Plan
describes how team will implement its quality policy; describes the
project quality system organizational structures, responsibilities,
procedures, processes and resources needed to implement quality
management
Operational Definitions
defines how an item is measured by the quality control process.
Checklists
structured tool used to verify that a set of required steps has been
performed
Inputs to other processes

may identify a need for further activity in another area

Management
4. Quality Assurance
All planned activities implemented within the
quality system to provide confidence that the
project will satisfy quality standards done
during Project Execution phases
Inputs
Results of quality control measurements (testing)
Operational definitions(how an item is measured by the
quality control process)

Management
4. Quality Assurance
Tools & Techniques
Quality planning tools & techniques
Quality Audits
structured review of quality management activities to identify
lessons learned
Outputs
Quality improvements
taking action to increase the effectiveness and efficiency of
the project to provide added benefits to the stakeholders
Most likely will involve change control

Management
5. Quality Control
Monitoring specific results to determine if they
comply with quality standards, and identifying
ways to eliminate causes of unsatisfactory
results, take corrective actions to keep the
compliancy of quality standards --done during
project Control phases
Process of monitoring specific project results to
determine if they comply with relevant quality
standards and identify ways of eliminating
unsatisfactory performance
Performance of the measurement or process

Management
5. Quality Control
Inputs
Work results
include process and product results

Operational Definitions
Checklists

Management
5. Quality Control
Tools & Techniques
Inspection
Control Charts (see the chart on next page)
Pareto diagrams
Statistical sampling
Flowcharting
Trend Analysis
forecast future outcomes based on historical results
Technical performance (# of errors identified; # of errors
that remain)
Cost and Schedule performance (activities per period
with significant variances)
Quality Specification
Upper Specification Limit

Upper Control Limit
Mean
Rule of 7
Lower Control Limit

Lower Specification Limit
Numbers of Sample
Illustration of Control Chart

Management
5. Quality Control
Outputs
Quality Improvement
Acceptance Decisions (accept/reject)
Rework
action to bring defective item into compliance
Completed checklists
Process Adjustments
immediate corrective/preventive actions
Most likely involves change control
Chapter 8 Project Integration

Management
1. Project Integration Management
Ensures that the project processes are properly
coordinated
It is needed for overall project management and the
communication within a project
It is needed to perform project management well and
systematically
There are three processes in PIM
Project Plan Development
Project Plan Execution
Overall Change Control
These processes may occur repeatedly over the

project duration
Project Cost
Project Time
Project
Scope
Project Quality
The interactive relationship of project factors for integration management

Management
2. Project Plan Development
Uses outputs from other planning processes to create
consistent document to guide project execution and
control
Iterated (repeated) several times
Documents planning assumptions
Documents planning decisions that are chosen
Facilitates communication
Defines key management reviews(point/time)
Provides a baseline to track progress measurement
and project control

Management
Inputs
Other planning outputs: primarily the planning process
outputs (WBS, base documents, application area
inputs)
Historical information verify assumptions, records of
past project performance
Organizational policies quality management,
personnel administration, Financial controls
Constraints factors that limit performance, contractual
provisions, budget
Assumptions risk factors

Management
Tools & Techniques
Project Planning Methodology any structured
approach (software, templates, forms, start-up
meetings
Stakeholder Skills & Knowledge tap into plan
development; use expertise for reasonableness
PMIS Out of the box approach to support all project
aspects through closure

Management
Outputs
Project Plan ( or PIP/master plan/main plan) is a collection that
changes over time as more information about the project
becomes available (see the details on next page)
Baseline (for performance measurement) will change only in
response to approved scope change
Supporting Details to the Project Plan
Outputs from planning processes
Technical documentation
Business requirements, specifications, and designs
Relevant standards
Additional information not previously known

Management
Project Plan includes some or all of the following:
Project Charter
Project Management approach or strategy
Scope statement
Work Breakdown Structure (WBS)
Key Staff, Major Milestones
Change Control Plan,
Communication Management Plan
Budget, scheduled and quality responsibility assignments
Required Staff
Risks, constraints and assumptions
Subsidiary management plans (scope, schedule)
Open Issues and Pending Decisions

Management
3. Project Plan Execution
Primary process for carrying out the project
plan
Most costly aspect of project management
Direction of organizational resources and
interfaces

Management
Inputs:
Project Plan
Supporting Detail
Corrective Action anything to bring expected
performance in line with the project plan

Management
Tools & Techniques
General Management Skills
Product Skills and Knowledge defined as part of
planning, provided by staffing
Work Authorization System formal procedure for
sanctioning work to ensure completion written or
verbal authorization
Status review meetings regular exchanges of
information
Project Management Information System
Organizational Procedures

Management
Outputs
Work results the outcome of activities
performed is fed into the performance
reporting process
Change Requests expand/shrink project
scope, modify costs and schedule estimates

Management
4. Overall Change Control
Influencing factors that create change to
ensure beneficial results; ensure that change
is beneficial
Determining that change has occurred
Evaluate impact of change
Meet with team to discuss alternatives
Meet with management to present decision

Management
Change control requires
Maintaining integrity of performance measurement
baselines (project plan)
Ensuring changes to scope are accurately recorded
Coordinating changes across knowledge areas
(scheduling, risk, cost, quality, etc.)
Determine all factors that control change and proactively preventing the occurrence; evaluate the
impact of change

Management
Inputs
Project Plan baseline performance
Performance Reports issue tracking, risk
management
Change Requests orally or written,
externally or internally initiates, legally
mandated or optional

Management
Tools & Techniques
Overall Change Control System collection of formal
procedures, paperwork, tracking systems, approval
levels. Including:
Change Control Board, Change Control Plan and Procedures,
Performance Statistics, Reports, Change forms
Specification reviews, Demonstrations, Testing, Meetings
Configuration Management documented procedure

to apply technical and administrative direction
ID and document functional and physical characteristics

Control changes to these characteristics
Record and report change and implementation status
Audit items and system to verify requirements

Management
Outputs
Project Plan Updates
Corrective Actions
Lessons Learned
variance causes and reasoning documented for
historical purposes
What have we done, how can we do it better
Technical Aspects of the project

Project Management (WBS, plans, etc.)
Overall Management (communications, leadership)
Best to have whole team complete and made available
Chapter 9 Project Risk

Management
1. Project Risk Management
Definition of risk: a discrete occurrence that

may affect the project for good or bad.
Definition of uncertainty: an uncommon state
of nature, characterized by the absence of any
information related to a desired outcome.
Definition of risk management: The process
involved with identifying, analyzing, and
responding to risk. maximizing results of
positive events and minimizing consequences
of negative events.

Management
1. Project Risk Management
Risk Management includes :
Risk Identification
Find out which are likely to affect the project
Risk Quantification
Evaluate the risk to assess the range of possible outcomes
Risk Response Development

define enhancement steps for opportunities and response.
Sometimes called response planning/mitigation
Risk Response Control

respond to changes in risk over course of project. May be
combined as risk management

Management
2. Risk Identification
Determine which risks are likely to affect the project
and documenting them
Performed on a regular basis; address internal and
external risks
Internal project team has control/influence over
External beyond project teams control
Identify cause and effect and effects and causes;

what could happen vs. what outcomes should be
avoided

Management
Inputs
Product Description
There are more risks associated with unproven technologies
(innovation/invention). Often described in terms of cost and
schedule impact
Other Planning Reports
WBS (any non-traditional approaches)
Cost/Duration Estimates aggressive schedules; limited
information
Staffing Plan hard to replace/source skilled persons
Procurement Management Plan market conditions
previous projects: Project Files, Commercial Databases,
Project Team Knowledge(members experiences)

Management
Tools & Techniques
Checklists
organized by source of risk, included project
context, process outputs, product and technology
issues, internal sources
Flowcharting
understand cause and effect relationships
Interviewing
conversations with stakeholders

Management
Outputs
Sources of Risk
categories of possible risk events, all-inclusive (Changes in
requirements, Design errors, omissions, misunderstanding,
poorly defined roles and responsibilities, Insufficiently staff)
Sources:
External: Regulatory, environmental, government
Internal: Schedule, cost, scope change, inexperience,
planning, people, staffing, materials, equipment
Technical: Changes in technology
Unforeseeable: small (only about 10%)
Risk I, Risk II
Include estimate of probability, range of possible outcomes,

expected timing, anticipated frequency
(continued)
Classified
by
probability
Classified
by risks
conjunction
Classified
by serious
of results
The Whole
Risks of
a Project
Classified
by Unforeseeing
Classified
by causes
of risks
Classified
by objects
of risks
Classification of the Risks

Management
Outputs
Potential Risk Events
Discrete (unusual) occurrences that may affect project
New technologies obsolete needed by product
Socio, Political and Economic events
Include estimate of probability, range of possible outcomes,
expected timing, anticipated frequency
Risk Symptoms
Early warning signs
Risk Tolerances
amount of risk that is acceptable
Input to other management process (time, cost ,quality etc.)

Management
Common Stumbling Blocks
Risk identification is completed without knowing enough about the
project
Project Risk evaluated only by questionnaire, interview or Monte
Carlo; does not provided a per task analysis of risk
Risk identification ends too soon
Project Risk identification and Evaluation are combined results
in risks that are evaluated when they appear; decreased total
number of risks and stops identification process
Risks are identified too generally
Categories of risks are forgotten (technology, culture)
Only 1 identification method is used
First risk response strategy is used without other consideration
Risks are not devoted enough attention during the Execution
phase

Management
3. Risk Quantification
Assess risks to determine range of possible
outcomes; which risk events warrant (must have ) a
response. This will involve:
Opportunities and threats can provide unanticipated results
(e.g. schedule delay is considered for a new strategy)
Multiple effects from a single event
Singular stakeholders opportunity may force suffering in
other areas
Reliance (based on ) on statistics and forecasting
Probability and Amount of Impact
Develop a ranking (priority) of risks
Qualitative take an educated guess
Quantitative estimation by calculation

Management
Inputs
Stakeholder risk tolerance
More capital to expend; perceptions of severity
Sources of Risk (from RI)

Potential Risk Events(from RI)
Cost Estimates

Management
Tools & Techniques
Expected Monetary Value
Product of 2 numbers PV
Risk Event Probability estimate that event will occur
Risk Event Value estimate of gain or loss
Statistical Sums
Calculate range of total costs from cost estimates for individual work
items with probabilities
Simulation
representation or model; provide statistical distribution of calculated
results (Monte Carlo, Critical Path, PERT techniques)
Decision Trees
Expert Judgment
Sensitivity Analysis
estimate the effect of change of one project variable on overall
project

Management
Outputs
Risk probability,
Range of possible outcomes,
Expected timing,
Anticipated frequency
Priorities of project risks
Opportunities to pursue and threats to respond
Opportunities to ignore and threats to accept
Develop PMIS for risk management

Collect all the information for risk identification
Analysis and judgment of project risk
Documents of
risk
identification
Yes
Risk
No.
Knowledge
and experience
of the team
End
Classification of project risks

Analyze and value project risk probabilities
Analyze and value risks & range of possible outcomes
Analyze and value the serious of project risks results

Analysis & value risks timing & causes
Report of Risk
Identification
End
Document the result of all analysis

Yes
No
Project end
The Process of Risk Assessment ( Risk Identification + Risk Quantification)

Management
4. Risk Response Development
Defining enhancement steps for opportunities and
responses to threats. Main responses are as follows:
Avoidance eliminating threat by eliminating the cause
Mitigation reducing expected monetary value of event by
reducing the probability of occurrence
Acceptance accept the consequences (active contingency plan - or passive response)
Determine what will be done, how to make risk

smaller or eliminate (not all risks can be eliminated)

Management
Inputs
Opportunities to pursue
Threats to respond
Opportunities to ignore
Threats to accept

Management
Tools & Techniques
Procurement
acquire resources (exchange 1 risk for another)
Contingency Planning
defining action steps should a risk event occur
Alternative Strategies(change planned approach)
Avoidance eliminate the cause

Mitigation effect the probability or impact of risk
Acceptance do nothing
Deflection (transfer, allocate) make another party
responsible, outsourcing
Insurance

Management
Outputs
Risk Management Plan
documents risks identified and how they are addressed; non-critical
risks should be recorded to revisit during the execution phase
Addresses risk identification and quantification processes, personnel
responsible for managing areas of risk, maintenance of identification
and quantification process, implementation of contingency plans and
allocation of reserve
Inputs to other processes

alternative strategies, contingency plans, anticipated procurements
Contingency Plans
recommend total of 10% to account for known and unknown risks
Contractual Agreements
insurance, services and other functions to avoid and mitigate threats.

Management
5. Risk Response Control
executing and updating the Risk Management Plan in
order to respond to risk events during the project
Control and iteration (repeat) are required; not all risks can
be identified in one time.
Inputs
Risk Management Plan
Actual Risk Events
recognize occurrence
Additional Risk Identification (repeat)

surfacing of potential or actual risk sources

Management
Tools & Techniques
Workarounds
unplanned responses to negative risk events that were
unanticipated(response was not defined in advance)
Contingency Plans
Take planned responses according to contingency plans
Additional Risk Response Development

Do the risk response development once more
Three phases risk control method

Potential phase
Risk occurring phase
Reduce the risk impact phase

Management
Outputs
Corrective Action
performing the planned risk response
Updates to Risk Management Plan
Establish the risk control system according to the RI report

Determine the risk respond control activities needed for the project
Assign the responsibility of the risk control to specific persons
Make up Risk Management Plan and Contingency Plans
Execute the plans and change the plans

Take Corrective Action and do Workarounds
Return to RI&RQ
Monitoring the risk respond control result

No
Project end
yes
Risk control end
Project risk respond development and control process
Chapter 10 Human Resource

Management
1. Project Human Resource Management
Processes required to make the most efficient use of
people involved with the project (stakeholders)
3 major processes:
Organizational Planning
Staff Acquisitions
Team Development
Keep in mind of transient (time limited and only one

time) nature of projects for its HRM
Ensure HR compliance with project management
activities

Management
1. Project Human Resource Management
1,9 manager = good relationship with team
Project Organization
Conflict between PM and Functional Managers
Dual allegiance (two boss) of team members
Compromise =otherwise both sides will lose

Delegation
If there is a team of experts, PM decisions will
promote high satisfaction
Functional/Project Managers likely to exercise:Power,
Authority and Influence

Management
2. Organizational Planning
Identifying, documenting and assigning
project roles, responsibilities, and reporting
relationships
Individual and group assignments
Internal and external employees
Linked with communication planning

Management
Inputs
Project Interfaces
Organizational interfaces formal and informal reporting relationships
among organizational units (the enterprise)
Technical interfaces - formal and informal reporting relationships
among technical disciplines,Engineers, manufacturers(stakeholder)
Interpersonal interfaces formal and informal reporting relationships
among individuals (project)
Staffing Requirements define skill sets for individual/group in

particular time frames
Constraints factors that limit project teams options
Organizational structure (strong vs. weak matrix)

Collective bargaining agreements contractual arrangements
Preferences of project management team
Expected staff assignments

Management
Tools & Techniques
Templates reuse a similar projects role and
responsibility definitions
Human Resource Management Practices corporate
policies, guidelines, and practices
Organizational Theory how organizations are
structured (functional, projectized,matrix)
Stakeholder Analysis needs of stakeholders are
ensured

Management
Outputs (continued)
Role and Responsibility Assignments
Utilizes a Responsibility Assignment Matrix (RAM) to define
responsibility for each item in the Work Breakdown
Structure/task or activity list
Roles and responsibilities
Project Manger plan, estimate and schedule of project
Team help prepare the WBS, Network Diagrams, and
estimate time for tasks, complete tasks
Senior Management approve Overall project plan,
budget and schedule and to approve any changes that are
made to those figures
The person experiencing the problem must try to solve it
themselves as long as means are in their control

Management
Outputs (continued)
Staffing Management Plan
when and how personnel are included and removed from the
project team.
Resource leveling, reduce transition periods, eliminate dead
time between assignments, sensitivity to morale
Organizational Chart
Organization chart can display the project reporting
relationships.
An Organizational Breakdown Structure (OBS) is a specific
type of organization chart that shows which organizational
units are responsible for which work items.
Supporting Detail
Organizational impact,Job descriptions,Training needs

Management
3. Staff Acquisition
Ensure labor and human resources are available for project work
Involve getting the human resources needed (individuals or
groups) and assigned to or working on the project.
Inputs
Staffing Pool Description
Previous experience
Personal interests
Personal characteristics
Availability
Recruitment Practices

Management
Tools & Techniques
Negotiations with functional managers and other
teams (Staff utilization and corporate politics)
Pre-assignment result of a competitive proposal, or
an internal initiative
Procurement outside services are needed (lacking
internal skills or availability can not be met)

Management
Outputs
Project staff assigned
Project Team Directory contact list

Management
4. Team Development
Enhancing stakeholders to contribute along
with maintaining the project teams
functionality
Personal development is the foundation
Team members often balance responsibilities
to a functional manager and project manager
Critical to success of project

Management
4. Team Development
Inputs
Project Staff
Project Plan
Performance Reports
External Feedback
Periodic measurements of performanc

Management
4. Team Development
Tools & Techniques
Team-building activities
General Management Skills
Reward and recognition systems
Promote desired behavior
Must be achievable; apply to the project
Cultural differences recognition
Co-location place members in physical location

Training enhance skills, knowledge, and capabilities
of project team
Must be factored in cost analysis of project

Management
4. Team Development
Outputs
Performance Improvements
Individual skills
Team Behavior
Identify more efficient methods of work
Input for performance appraisals

Management
5. Other things for HRM
Conflict
Inevitable consequence of organizational interactions
Can be beneficial
Resolved by identifying the causes and problem solving by
people that are involved & their immediate manager
Nature of project
Limited power of the project manager
Necessity for obtaining resources from functional managers
Conflict Sources (in order of frequency)

1)Schedules, 2)Project Priorities, 3)Resources,4)Technical
opinions, 5)Administrative Procedures,6)Cost,7)Personality

Management
5. Other things for HRM
Conflict Avoiding
Informing the team
Clearly assigning tasks without ambiguity
Challenging and interesting work assignments
Leadership Skills
Directive, Facilitating, Coaching, Supportive
Conflict between PM and Functional Managers
Dual Allegiance of team members
Complex prioritization of resources
Loss of developed procedures on project dissolution
Chapter 11 Project
Communications Management
1. Project Communications Management
Processes to ensure timely and proper generation,
collection, dissemination and disposition of project
information
General communications management
Communications Planning determining informational
needs, who needs what and when; 90% of PMs time is spent
on communicating
Information Distribution making information available
Performance Reporting collecting and disseminating
project information
Administrative Closure formalize project/phase completion
(continued)
Chapter 11 Project
1. Project Communications Management
Communication Methods
Pick the form of communication that is best for the
situation
Formal Written complex problems, all plans,
communicating over long distances
Formal Verbal presentations, speeches
Informal Written memos, e-mail, notes
Informal Verbal meetings, conversations
Communication Blockers
Noise, Distance, Improper en-coding, bad idea, Hostility,
Language, Culture
Chapter 11 Project
2. Communications Planning
Determining information requirements of stakeholders
Tightly linked with organizational planning
There are 5 directions of communication
Top down
Bottom up
The peer
Internal
External
Complex messages need oral, written and non verbal

methods
Least effective form of communication for complex
situations is verbal and formal
Chapter 11 Project
Inputs
Communication requirements
Internal and External communication needs (media)
Communication Technology used to transfer

information
Immediacy of need for information
Availability of technology
Expected project staffing
Constraints
factors that limit project teams options
Assumptions
Chapter 11 Project
Tools & Techniques
Stakeholder analysis
informational needs should be analyzed to develop methodology
suited for the project; eliminate unnecessary information or
technologies
Communications modelfeedback
Send process
idea
encode
Transit proce.
Info.Transit
Receive
proce.
receive decode
noise
Illustration of Communication Model
Unders
.
Chapter 11 Project
Outputs
Collection and filing structure to detail the gathering and
storage of information; updating and dissemination
Distribution structure who gets info in certain format;
compatible with project organization chart
Description of information included format, level of detail,
conventions
Production schedules of each type of communication
Methods for accessing information
Method for updating and refining communications plan
Chapter 11 Project
3. Information Distribution
making information available in a timely manner by
implementing the communications plan;
responding to requests for information by
stakeholders
Inputs
Work Results
Project Plan
Chapter 11 Project
3. Information Distribution
Tools & Techniques
Communication Skills
used to exchange information. Sender is responsible for
clarity; receiver is responsible for receipt and understanding
Information retrieval systems

filing systems, software
Information distribution systems

meetings, correspondence, networked databases,
video/audio conferencing
Outputs
Project Records
maintained in an organized fashion
Chapter 11 Project
4. Performance Reporting
Collecting and disseminating performance indicators
to provide stakeholders information how resources
are achieving project objectives
Status reporting
Progress reporting
Forecasting
Variance Report (actual results vs. planned)
Earned Value
Project scope, schedule, cost and quality, risk and
procurement
Chapter 11 Project
Inputs
Project Plan
Work Results deliverables completed, %
completed, costs incurred
Other Project records
Chapter 11 Project
Tools & Techniques
Performance review meetings(to assess status)

Variance Analysis (comparing actual results to planned)
Trend Analysis (to determine future performance)
integrates scope, cost and schedule measures
calculate 3 keys:
Budgeted Cost of Work (BCWS)
Actual Cost of Work Performed (ACWP)
Earned Value (Budgeted Cost of Work Performed BCWP)
Cost Variance (CV) = BCWP ACWP

Schedule Variance (SV) = BCWP BCWS
Cost Performance Index (CPI) = BCWP/ACWP
Information Distribution Tools & Techniques
Chapter 11 Project
Outputs
Performance Reports organize and
summarize information gathered and present
results
Bar charts, Gantt charts, S-curves, etc.
Change Requests handled as part of

change control
Chapter 11 Project
5. Administrative Closure
Projects/phases after achieving results or
terminated require closure
Verifying and documenting project results to
formalize acceptance
Collection of project records, analysis of
effectiveness, reflect final specifications and
archiving of material
Chapter 11 Project
Inputs
Performance Measurement Documentation
includes planning docs;
all information that records and analyzes
performance
Documentation of product and project
Other project records
Chapter 11 Project
Tools & Techniques
Performance Reporting tools & techniques
Outputs
Product Archives
complete index of all records, database updates
Formal Acceptance
signoffs from client or sponsor
Lessons Learned
Chapter 12 Project Procurement

Management
1. Project Procurement Management
Processes required to acquire goods and services from outside
the organization
Processes including Procurement Planning, Solicitation
Planning, Source Selection, Contract Administration and
Contract Close Out
Discussed from the perspective of the buyer
Terms and conditions of the contract is a key input to many
processes
Buyer is the customer, thus a key stakeholder
Sellers project management team must be concerned with all
processes of project management, not just their knowledge area
Most questions are from the buyers perspective

Management
2. Procurement Planning
Identify project needs that can best be met by
acquiring resources
Consideration whether to procure, how to,
how much, when to purchase
Subcontractor decisions may provide flexibility
Internal procurement does not involve formal
solicitation and contract

Management
Inputs
Scope Statement boundary for needs and strategies
Product Description broad technical issues, not to be confused
with a statement of work
Procurement Resources formal contracting group (RFP)
Market Conditions supply and demand, what services are
available
Other Planning Outputs preliminary cost and schedule, quality
management plans, cash flow, WBS, risks, staffing
Constraints factors that limit buying options
Assumptions

Management
Tools & Techniques
Make or Buy analysis determine if the service can
be provided from within
Include direct and indirect costs
Factor ongoing need for items vs. 1-time usage
Expert Judgment assess input

Contract type selection
Fixed Price (lump sum) incentives for meeting targets
Cost Reimbursable Contracts Time and Materials basis
Unit Price preset amount per unit of service

Management
Outputs from Procurement Planning
Procurement Management Plan describes how procurement
process will be managed. Including:
Type of contract
Independent estimates needed?
Autonomy of project team
Standardized documents
Multiple provider management?
Incorporate with other project aspects (scheduling and performance
reporting)
Statement of Work (SOW) describes the procurement in detail

clear, concise description of services
Can also be a Statement of Requirements for problem-solving
activities

Management
3. Solicitation Planning
To seek to obtain with enquiry, quotation, offer and
counteroffer
Preparing documents needed for procurement
Inputs
Procurement Management Plan
Statement of Work
Other Planning Outputs
Tools & Techniques

Standard Forms and Procedures for buying & bidding
Contract, bid documents standard descriptions of
procurement items
Expert Judgment

Management
Standard Procedures for Buying
enquiry
quotation
offer
counteroffer
accept
Standard Procedures for Bidding

Form a work
group for bid
Prepare bid
documents
Invitation for
Negotiation
Evaluate and
Choose
Invitation for
tendering
Discussion
of bids
Examine the
tenderers
Collect tendering
files and deposit

Management
3. Solicitation Planning
Outputs
Procurement Documents used to solicit proposals from
prospective sellers
Bids, Request for Proposal, Request for Quotation, Contractor Initial
Response, etc.
Structure to receive complete and accurate responses
Description of desired form of response and any required
contractual provisions (e.g. non-disclosure statements)
Flexible to allow seller suggestions
Evaluation Criteria rate proposals; objective or subjective
Price, Understanding of need by seller

Overall/Life Cycle cost (purchase plus operating cost)
Technical Capability, Management Approach
Financial Capacity
Statement of Work Updates

Management
4. Solicitation
Obtaining information(bids and proposals) from
prospective sellers
Inputs
Procurement Documents
Qualified Seller Lists preferred vendors
Tools & Techniques

Bidder Conferences mutual understanding meetings
Advertising primarily with Government projects
Outputs
Proposals seller prepared documents describing willingness and
ability to provide the service

Management
5. Source Selection
Apply evaluation criteria (seldom straight-forward)
Price (lowest price may not always result in lowest project
cost)
Technical (approach) vs. commercial (price)
Multiple sourcing may be needed for same service
Select the suppliers or contractors
Inputs
Proposals
Evaluation Criteria

Management
5. Source Selection
Tools & Techniques
Contract Negotiation clarification and mutual agreement on
structure and requirements of contract prior to signature
Responsibilities and authorities
Applicable terms and law
Financing and Price
Technical and business management
Weighting quantifying data to minimize personal prejudice of
source selection
Assign numerical weight to evaluation criteria
Rating sellers
Multiply weight by rating and totaling overall score
Screening System establish minimum performance criteria
Independent Estimates should cost estimates

Management
5. Source Selection
Outputs from Source Selection
Contract mutually binding agreement obligates
seller provide goods and services and buyer to make
payment.
It may be called, among other names, a contract, an
agreement, a subcontract, a purchase order, or a
memorandum of understanding
That establish:
Legal relationship
Legal review is most often necessary

Management
6. Contract Administration
Ensuring that the sellers performance meets
contractual requirements
Project Team must be aware of legal affaires of all actions
taken
Apply project management processes to contractual
relationships and integrate outputs within the project
Project Plan Execution (authorize work)

Performance Reporting (monitor cost, schedule)
Quality Control (verify contractors output)
Change Control
Financial Management

Management
Inputs to Contract Administration
Contract, centralized vs. decentralized contracting
Work Results sellers deliverables, quality standards,
actual costs
Change Requests modify contract, or description of
product/service
May result in disputes, claims, appeals
Seller Invoices
The seller must submit invoices from time to time to request
payment for work performed.
Invoicing requirements, including necessary supporting
documentation, are usually defined in the contract.

Management
Tools & Techniques
Contract Change Control System defines how a
contract may be modified
Includes paperwork, tracking system, dispute resolution
procedures and approval levels
Performance Reporting
provides management with information about how effectively
the seller is achieving the contractual objectives.
Payment System Accounts Payable

Payments to the seller are usually handled by the accounts
payable system of the performing organization or the owner.
The system must include appropriate reviews and approvals
by the project management team.

Management
Outputs
Correspondence
Contract terms and conditions of written documentation of
certain aspects of buyer/seller communications.
Contract changes
Changes (approved and unapproved) are fed back through the
appropriate project planning and project procurement processes,
and the project plan or other relevant documentation is updated
as appropriate.
Payment requests or payments

Payment requests for when using an external payment system,
payments. for when using own internal system.

Management
7. Contract Close Out
Similar to administrative closure; involves product
verification and administrative paperwork
The contract terms and conditions may prescribe
specific procedures for contract close-out.
Early termination is a special case
Inputs
Contract Documentation
the contract itself along with all supporting schedules,
requested and approved contract changes, any sellerdeveloped technical documentation, seller performance
reports, financial documents such as invoices and payment
records, and the results of any contract-related inspections.

Management
7. Contract Close Out
Tools & Techniques
Procurement Audits structured review of entire
procurement process; identify successes and failures
that warrant transfer to other procurement items
All documentation must be preserved and filed
Outputs
Contract File complete index of records
Formal Acceptance and Closure
contract administration responsibility to provide a formal
notice that contract has been completed
Requirements for formal acceptance and closure are usually
defined in the contract.

Management
8. Other things related to Procurement
What forms a contract
An offer, counteroffer,
An acceptance
Consideration - something of value,V=F/C
Legal Capacity separate legal parties, competent
parties
Legal Purpose can not perform illegal goods or
services

Management
Project Managers role for procurement
Risk identification and evaluation
Work within the procurement process
Contract Type Selection reasonable risk between the

buyer and seller and greatest initiative for sellers
efficient and economic performance
Scope well defined?
Amount or frequency of changes expected after start date
Amount of effort and expertise the buyer can devote to
manage the seller
Industry standards

Management
Cost Reimbursable (CR) contracts; sellers
cost are reimbursed; buyer bears highest risk.
CPFF cost plus fixed fee, buyer pays all costs
fee (profit) established(fixed)
CPPC cost plus percentage of costs; bad for
buyers (seller not motivated to control costs)
CPIF cost plus Incentive Fee; seller costs + fee +
bonus for meeting/exceeding target (incentive
clause)

Management
Cost based on Time and Materials; priced on per hour
basis, elements of fixed price contract and cost
reimbursable contracts buyer has medium risk
Fixed Price (lump sum, or firm fixed price) - most
common (1 price for all work), risk of costs is upon
seller
FPIF Fixed Price Incentive Fee
FPEPA Fixed Price Economic Price Adjustment long
duration projects
Incentives help bring sellers objectives in line with

buyers

Management
Incentive Fee and Final Price Calculations
Must Have:
Target Cost
Target Fee
Target Price
Sharing Ratio (buyer/seller)
Actual Cost
Fee = (Target Cost Actual Cost) x Seller Ratio (%) (incentive fee)
Total Fee = Fee + Target Fee
Final Price = Actual Cost + Total Fee

Management
Solicitation
Bidders Conference
Benefit both buyer and seller
Can be used for watching out the Collusion
Negotiation Objectives
Obtain a fair and reasonable price
Development a good relationship with seller
Project manager must be involved
Main Terms to negotiate
Responsibilities, Authority, Applicable Law
Technical and Business Management approaches
Contract Financing, Price

Management
assure sellers performance meets contractual
requirements
Project Managers must understand the contract and manage
its completion
Sometimes contract is in conflict with Scope of Work
Only the contracting officer (CO) can change contract
language
It is often a source of conflict
Need to deal with a different companys set of procedures
It is not as easy to see problems
Greater reliance on reports to determine if a problem
exists
Greater reliance on relationships between buyer and
sellers project managers
Supplement Professional
Responsibility
1. Understand Project Management Professional
Code of Conduct
Ethics
Legal Issues
Cultural Sensitivity
Managing conflicts of interest
Responsibility
2. Integrity(honesty) and Professionalism
Understand the legal requirements surrounding the
practice of projects
Know ethical standards that should govern the
behavior of project managers
Comprehend the values of the community and the
various project stakeholders
Practice proper judgment in the pursuit of successful
project work
Compliance with all organizational rules and policies
Upon a reasonable and clear factual basis report violations
Responsibility to disclose circumstances that could be
construed as a conflict of interest or appearance of impropriety
Responsibility
2. Integrity and Professionalism
Provide accurate and truthful representation to the
public
Maintain and satisfy the scope and objectives of
professional services
Maintain the confidentiality of sensitive information
Ensure a conflict of interest does not compromise
legitimate interests of client/customer or interfere with
professional judgment
Refrain from accepting gifts, inappropriate payments,
compensation for personal gain unless in conformity
with applicable laws or customs
Responsibility
3. Contribute to advancing the project
management profession
Overall understanding of project management
principles
Understand the community and media surrounding
projects
Knowledge of research strategies available and
proper communication techniques
Learn to communicate and transfer knowledge
effectively as a coach and mentor and to use
available research strategies
Respect and recognize intellectual property
Responsibility
4. Enhance Individual Competence
Understand the project managers strengths and
weaknesses and learning style become aware of
instructional processes and tools
Know the useful competencies for project managers
and possible training
Be able to perform self-assessment and
competencies development plan
Ability to apply lessons learned
Responsibility
5. Balance Stakeholders Objectives
Understand the various competing
stakeholders interests and needs
Comprehend the conflict resolution
techniques useful in handling differing
objectives
Be able to resolve conflicts in a fair manner
Exercise negotiation skills based on proper
information
Responsibility
6. Interact with team and stakeholders in a
professional and cooperative manner
Understand cultural diversity, norms and
stakeholders communication styles
Show flexibility towards diversity, tolerance
and self control
Becoming empathetic to differences
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Project Management

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Project Management

The Resources of the Materials

There are two main association:

Become a discipline of Management

4. The Definition of Project

The work is temporary.

Projects is no ongoing operation, are often divided into

The System of PMBOK

The relationship of the knowledge

Chapter 2 Project Management

Project Life Cycle defines or tells:

Major contract let

Project Life Cycle of DOD of USA for Acquisition

Chapter 2 Project Management

Phases are collected into the Project Life Cycle

Chapter 2 Project Management

Chapter 2 Project Management

The relationship of stakeholders of projects

Chapter 2 Project Management

Performing Org. Mana.

Project Team Mana.

Chapter 2 Project Management

Project based vs. Non-Project Based

Chapter 2 Project Management

Chapter 2 Project Management

Chapter 2 Project Management

Chapter 2 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Production oriented process

Chapter 3 Project Management

Chapter 3 Project Management

3. The Relationship of Process Groups

Chapter 3 Project Management

Links Among Process Groups in a Phase

Chapter 3 Project Management

Interaction between Phases of a project

Chapter 3 Project Management

Overlap of Process Groups in a Phase of a project

Chapter 3 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Project Plan Execution performing the activities

Chapter 3 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Chapter 3 Project Management

Influencing the organization

Chapter 3 Project Management

Chapter 4 Project Scope

Chapter 4 Project Scope

The philosophy of project scope management

Chapter 4 Project Scope

Chapter 4 Project Scope

Chapter 4 Project Scope

Chapter 4 Project Scope

Strategic Plan supportive of the organization's goals

Chapter 4 Project Scope