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Process Framework
Definition of Project
Project Definition
Examples of Project
Building a Software
A Major Enhancement to the software
Filming a Motion Picture
Building a new office
Designing a new product or service
Creating an advertisement campaign
Creating a new process with a business unit
Moving from one building to another
Designing a space vehicle
Project vs Operation
PROJECTS OPERATIONS
Temporary Ongoing
Unique Repetitive
Project Constraints
Risk
Scope
Scope Cost
Budget PM Triangle
Quality
Resources
Schedule
Quality
Schedule
Source: A Guide to the Project Management Body of Knowledge, Fourth Edition (PMBOK Guide) 2008 Project
Management Institute, Inc. All Rights Reserved.
Process Groups
Project management processes have been bundled into 5 groups and these
groups are called project management process groups
Initiating
Planning
Executing
Monitoring and controlling
Closing
These process groups are common to most of the projects across various
domains construction, technology, IT, life sciences etc.
Process groups are different than the Phases
Process groups may overlap / repeat based on the activities in the project
Collect Requirements
Define Scope
Create Work Breakdown Structure
Define and Sequence Activities
Estimate Activity Resource Requirement and Duration
Creating Schedule
Estimate Cost and Determine Budget
Planning Human Resource, Quality, Communications
Identify, Analyze and Prepare Risk Response Plan
Planning Procurement
Level Planning
Processes
Of
Activity
Initiating
Closing
Processes
Controlling Processes Processes
Phase Phase
Start Time Finish
The project will have at least a beginning, intermediate and ending phase
The project life cycle defines the beginning and end of a project
Phase end reviews are also called phase exits, stage gates or kill
points
Project Stakeholders
Project Stakeholders
Communication Skills
Organizational and Planning skills
Budgeting Skills
Conflict Management Skills
Negotiation and Influencing Skills
Leadership Skills
Team Building and Motivating skills
Programs
Collection of related projects
Controls are implemented and managed in a coordinated way
Collective benefits are realized
Each project has a project manager
Portfolios
Collection of programs and projects
Projects meet a specific business goal or objective
Includes weighing the value of each project against the portfolios
strategic objective
Pankaj
Source: A Guide to the Project Management Body Sharma,Fifth
of Knowledge, 9810996356
Edition.
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Process Framework
Direct and Manage Project Workthe process of performing the work defined in the
project management plan to achieve the projects objectives.
Close Project or Phasethe process of finalizing all activities across all of the Project
Management Process Groups to formally complete the project or phase.
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Agreements
Enterprise environmental
factors
Organizational Process
Assets
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Project Charter
.
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Numeric Methods
Benefit Cost Ratio (BCR) or profitability Index . This is the ratio of project benefit
and the project cost.
PV = FV / (1+r) n
Net Present value (NPV) is the sum total of the Present Value of
Cash Inflows Cash Outflows
0 0 0 200 200
1 50 45 100 91
2 100 83 0 0
3 300 225 0 0
TOTAL 353 291
Internal Rate of Return (IRR): The rate of interest at which the revenues and
costs are equal.
Select the project with a higher IRR.
Return On Investment (ROI) A return ratio that compares the net benefits of
a project/ product, verses its total cost.
ROI = Operating Income / Investments
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Item
Weight Project A Project B Project C
Criteria
4 5 3
Good ROI 3 12 15 9 0 0
2 3 5
CEO Likes It 5 10 15 25 0 0
5 4 2
Provide
Better 4 20 16 8 0 0
Service
4 4 5
Match New
Initiatives of 3 12 12 15 0 0
Competition
Our Winner!!
0 0 0 0 0
(hmmmm)
Murder Board
Murder Board" is a term often used for the team created to see if
they can push hard on a project plan to see where it will break.
Scoring Model 17 20 B
Enterprise
environmental factor
Organizational
Process Assets
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Key management reviews for the content, the extent of, and
timing to address, open issues and pending decisions
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Staff, train, and manage the team members assigned to the project
Issue change requests and adapt approved changes into the projects
scope, plans, and environment
Enterprise environmental
factors
Organizational Process
Assets
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QUIZ !
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Organization process
assets
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Process that enables the creation of the WBS from the detailed
project scope statement
Product metrics that will be used and the rationale for using them;
and
Collect Requirements
(Planning Process Group)
Collect Requirements
Define Scope -
.
Inputs Tools and Techniques Outputs
Scope management Expert Judgment Project Scope
plan Statement
Product Analysis
Project Charter Project Document
Alternatives Identification Updates
Requirements
Documentation Facilitated Workshops
Organizational Process
Assets
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Create WBS
(Planning Process Group)
Create WBS -
(Planning Process Group)
Requirements
Documentation
Enterprise
environmental factors
Organizational Process
Assets
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Create WBS
Phase-Based WBS
Training Requirements
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Component-Based WBS
WBS Dictionary
Project Name: WBS Name: WBS Id: Parent Id:
WBS Detail:
Acceptance Criteria:
Assumptions:
Resources Assigned:
WBS dependencies:
Cost:
Scope Baseline
When finalizing scope baseline, the items that are eliminated from the project
must be formally documented as exclusions to the project.
If their exclusion is not properly documented, they may return again and
again as new requirements to be considered.
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Validate Scope
Validate Scope
This means getting approval of the delivered scope of the project from all of the
stakeholders.
A set of acceptance criteria is drawn up and the acceptance criteria are agreed to
when the project scope is accepted by the stakeholders.
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Validate Scope
Control Scope
(Monitoring and Controlling Process Group)
Control Scope
(Monitoring and Controlling Process Group )
2. The process where you write the project scope statement is called
_________ Scope
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1. Product Scope means the features or functions of the thing or service that
you are building
2. The process where you write the project scope statement is called Define
Scope
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QUIZ !
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Plan schedule management The process of establishing the policies, procedures and
documentation for planning, developing, managing, executing and controlling the project schedule
Define ActivitiesThe process of identifying the specific actions to be performed to produce the
project deliverables.
Sequence ActivitiesThe process of identifying and documenting relationships among the project
activities.
Estimate Activity ResourcesThe process of estimating the type and quantities of material, people,
equipment, or supplies required to perform each activity.
Estimate Activity DurationsThe process of approximating the number of work periods needed to
complete individual activities with estimated resources.
Control ScheduleThe process of monitoring the status of the project to update project progress
and managing changes to the schedule baseline.
The key benefit of this process is that it provides direction on how the
project schedule will be managed throughout the project.
Organization Process
Assets
Organizational procedures links. The WBS provides the framework for the
schedule
.
Project schedule model maintenance. The process used to update the status
and record progress of
Define Activities
The key benefit of this process is to break down work packages into
Activities that provide a basis for estimating, scheduling, executing,
Monitoring , and controlling the project work.
Define Activities
Organization Process
Assets
Schedule Management Plan - provides direction on how the project schedule will
be managed throughout the project.
Enterprise Environmental Factors that can influence the Define Activities process
include, but are not limited to, the project management information system (PMIS).
Organizational Process Assets that can influence the Define Activities process
include, but are not limited to:
Decomposition involves subdividing the project work packages into smaller, more
manageable components called activities.
Rolling Wave Planning is 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 of the WBS.
Activity List is a comprehensive list including all schedule activities required on the
project.
Activity attributes depicts the multiple components associated with each activity
Activity ID, WBS ID, Activity Name, activity description, predecessor activities,
successor activities, logical relationships, leads and lags, resource requirements,
imposed dates, constraints, and assumptions.
Activity attributes can be used to identify the person responsible for executing the
work, geographic area, or place where the work has to be performed, and activity type
such as level of effort (LOE), discrete effort, and apportioned effort (AE).
Milestone List identifies all milestones and indicates whether the milestone is
mandatory, such as those required by contract, or optional, such as those based upon
historical information.
Sequence Activities
The key benefit of this Process is that it defines the logical sequence of
Work to obtain the greatest efficiency given all project constraint.
Sequence Activities
Schedule Management Plan - provides direction on how the project schedule will be
managed throughout the project.
The relationship in the figure below represents that the Activity B is dependent on
Activity A. i.e. Activity B can only start after the completion of activity A
A B
Finish to Start (FS) This relationship means Task A must complete before Task
B can begin. This is the most common relationship.
Dependency Determination
External dependencies are external to the project and are not in projects control.
E.g. Deliverable from other project or expected new law etc
Schedule Management Plan Identifies the level of accuracy and the units of
measure for the resource to be estimated
Activity Attributes Provide the primary data input for use in estimating those
resources required for each activity in the activity list.
Resource Calendar Resource calendars specify when and how long identified
project resources will be available during the project
Organizational Process Assets that influence this process include but are not
limited to; Policies and Procedures related to staffing, policies and procedures related
to rental purchase of supplies and equipments, Historical information regarding types
of resources used for similar work on previous projects
Alternatives Analysis
Many schedule activities have alternative methods of accomplishment. They include
using various levels of resource capability or skills, different size or type of machines,
different tools (hand versus automated), and make-or-buy decisions regarding the
resource.
Project Documents may be updated include, but are not limited to:
Activity list,
Activity attributes, and
Resource calendars.
Schedule Management Plan defines the method used and the level of accuracy
along with other criteria required to estimate activity durations including the project
update cycle.
Activity List Defines activity list that will need duration estimates.
Resource Calendars - can include the type, availability, and capabilities of human
resources. The type, quantity, availability, and capability, when applicable, of both
equipment and material resources, which could significantly influence the duration of
schedule activities, are also considered. Examples such as Existing conditions,
Availability information and length of the reporting periods. Examples of constraints
include , Available skilled resources and contract terms and requirement.
Project Scope Statement- The assumptions and constraints from the project scope
statement are considered when estimating the activity durations. This includes
Existing conditions
Availability of information
Length of the reporting periods
Organization Process Assets that can influence the Estimate Activity Durations
process include but are not limited to: Historical duration information, Project
calendars, Scheduling methodology and Lessons learned.
Analogous estimating uses parameters such as duration, budget, size, weight, and
complexity, from a previous, similar project, as the basis for estimating the same
parameter or measure for a future project.
Optimistic (O). The activity duration is based on analysis of the best-case scenario
for the activity.
Pessimistic (P). The activity duration is based on analysis of the worst-case scenario
for the activity.
PERT analysis calculates an Expected (E) activity duration using a weighted average
of these three estimates:
Develop Schedule
Develop Schedule
Schedule Management Plan Identifies the scheduling method and tool used to
create the schedule and how schedule is to be calculated.
Activity List Identifies the activities that will be included in the schedule model
Activity attributes Provide the details used to build the schedule model.
Project schedule network diagram contains logical relationship between
predecessor and successor that will be used to build the schedule.
Activity resource requirements Identify the types and quantities of resources
required for each activity used to create the schedule model.
Resource calendars- specify when and how long identified project resources will be
available during the project
Activity duration estimates contain the quantitative assessment of the likely
number of work periods that will be required to complete an activity that will be used
to calculate the schedule.
Project scope statement- contains assumptions and the constraints that can impact
the development of the schedule.
Enterprise Environmental Factors that can influence the Develop Schedule process
include, but are not limited to, a scheduling tool that can be used in developing the
schedule.
Organizational Process Assets The organizational process assets that can influence
the Develop Schedule process include, but are not limited to:
Scheduling methodology and Project calendar.
The critical path method calculates the theoretical early start and finish
dates, and late start and finish dates, for all activities without regard for
any resource limitations, by performing a forward and backward pass
analysis through the schedule network.
Schedule Compression
Crashing. A schedule compression technique in which cost and schedule tradeoffs are
analyzed to determine how to obtain the greatest amount of compression for the least
incremental cost. Examples of crashing could include approving overtime, bringing in
additional resources, or paying to expedite delivery to activities on the critical path.
Crashing only works for activities where additional resources will shorten the duration.
Crashing does not always produce a viable alternative and may result in increased risk
and/or cost.
Project schedule displays the start and end dates of all the activities in the project
and the same for overall project. It can be represented in the form of Gantt Chart,
Milestone Chart or a project network diagram.
Schedule data is the data on the basis of which schedule was developed. It includes
resource requirements by time period, alternative schedules such as best-case or
worst case, not resource leveled or resource leveled with, or without imposed dates
and scheduling of contingency reserves
Project Calendars A project calendar identifies working days and shifts that are
available for scheduled activities. It distinguishes time period in days or part of days
that are available to complete scheduled activities from time period that are not
available.
Schedule baselines
Schedule management plan
For the network diagram below find Critical Path, float for activity A and E
For the network diagram below find Critical Path, float for activity A and E
Based on the portion of network diagram shown below find ES and LF for
activity F
Control Schedule
(Monitoring and Controlling Process Group)
Control Schedule
Control Schedule
Project Management Plan is a formal, approved document that defines how the
project is executed, monitored and controlled.
Project Schedule is the primary input to this process, since it is the source against
which the results are controlled.
Work Performance Data details the work that is being executed, recently
completed, and next steps. This information is gathered from the Direct and Manage
Project execution process.
Project Calendars - A schedule model may require more than one project calendar
to allow for different work periods for some activities to calculate the schedule
forecasts.
Schedule Data will be reviewed and updated in the Control Schedule process.
Critical path method Comparing the progress along the critical path can help
determine schedule status. The variance on the critical path will have a direct impact
on the project end data. Evaluating the progress of activities on near critical paths can
identify schedule risk.
Critical Chain method- Comparing the amount of buffer remaining to the amount
of buffer needed to protect the delivery date can help determine schedule status. The
difference between the buffer needed and the buffer remaining can determine whether
corrective action is appropriate.
Project Management Software automates the other tools and techniques in control
schedule
Modeling techniques are used to review various scenarios guided by risk monitoring
to bring the schedule model into alignment with the project management plan and
approved baseline.
Leads and lags have impact on the schedule and as the project progresses lead and
lags need to be adjusted to reflect reality so as to provide the most realistic view of
the schedule possible
Scheduling tool provides various features (Views, reports etc) that helps in
managing the schedule
Change Requests Any change in the schedule due to change in scope or due to
any other valid reason requires Change Request.
Project Document Updates This includes any project document (Other than
project management plan) that has changed as a result of Control Schedule. For
example Scheduled data such as revised planned start and finish dates, Project
schedule and the Risk register
QUIZ !
Estimate Costs
Types of Cost
Direct Cost- Any cost that is identified specifically with a particular final
cost objective.
Indirect Cost- Any cost not directly identified with a single, final cost
objective (more than one project)
Fixed Cost - Periodic charge that does not vary with business volume
Types of Cost
Project Management Plan component that is important for this process are
primarily the scope and cost baselines.
Project Charter provides the summary budget from which the detailed project costs
are developed . It also defines the project approval requirements that will influence
the management of the project costs.
Meetings - Project teams may hold meetings planning meetings to develop the cost
management plan. These meetings may include, project sponsor, project manager,
selected team members , selected stakeholders, anyone with responsibility for project
costs.
Level of precision The degree to which activity cost estimates will be rounded up
or down.
Estimate Cost
Estimate Costs
Cost management plan The cost management plan defines how project costs will
be managed and controlled . It includes the method used and the level of accuracy
required to estimate activity cost.
Human Resource Plan provides detail on Project staffing attributes, personnel rates,
and related rewards/recognition, these are necessary components for developing the
project cost estimates.
Scope baseline include inputs from scope statement, Work Breakdown Structure and
WBS dictionary.
Project Schedule provides detail on the type and quantity of resources and the
amount of time which those resources are applied to complete the work of the project,
all these factors directly impact the cost
Risk Register provides input related to costs associated with risk response
Bottom-up estimating produces a separate estimate for each scheduled activity. The
detailed cost is then summarized or rolled up to higher levels for subsequent reporting
and tracking purposes. The cost and accuracy of bottom-up cost estimating is typically
influenced by the size and complexity of the individual activity or work package.
Three-point estimates concept originated with the program evaluation and review
technique (PERT). PERT uses three estimates to define an approximate range for an
activitys cost:
Triangular Distribution
Beta Distribution
Reserve Analysis adds reserve amount (Contingency) to the cost. This is done to take
care of uncertainties in the project.
Vendor bid analysis may include analysis of what the project should cost, based on the
responsive bids from qualified vendors.
Activity Cost estimates details how much it would cost to complete each schedule
activity on the project
Project document updates include project risk register and cost management plan
1. You figure out a best case scenario and , a likely scenario and a worst
case scenario. Then you use a formula to come up with an expected cost
for the project. The tool used by you is ________
2. John creates a document with all the historical information from similar
project he had done in past and also takes input from a contractor who
provides his input. The tool used by John is_________
1. You figure figures out a best case scenario and , a likely scenario and a
worst case scenario. Then you use a formula to come up with an
expected cost for the project. The tool used by you is Three-point
estimate
2. John creates a document with all the historical information from similar
project he had done in past and also takes input from a contractor who
provides his input. The tool used by John is Expert Judgment
Determine Budget
Determine Budget
Cost Management Plan - describes how the project costs will be managed and
controlled
Scope baseline refers to collection of approved project scope statement and its
associated WBS and WBS dictionary.
Basis of estimate includes supporting detail for cost estimates contained in the basis
for estimates should specify any basic assumptions
Project Schedule helps in mapping the cost back to time for planning purpose
Resource Calendars along with Project schedule will help plan for when the costs will
be incurred
Reserve Analysis include contingency reserve and management reserves for the
project. Contingency reserves are allowances for response plan strategized for the
identified risks. These are also known as known unknowns . Management reserves
are allowance for unplanned changes to thee project scope and cost. The are also
known as unknown unknowns. Reserves are not the part of the project cost baseline.
Expert Judgment can be taken from experienced consultant in the project application
area. This can be from an internal organizational resource or external sources
Project funding requirements are derived from cost baselines. Total funding
requirement is sum of cost baseline and management reserve.
Project document updates include updates to risk register, cost estimates and
project schedule
Monika reads a newspaper article that says there has been sharp increase in steel
cost recently. She knows this was not in her contractors original plan and decides to
put a few hundred dollars aside to deal with the price hike if it should happen. The
tool used by Monika is
Parametric estimating
Reserve analysis
Cost aggregation
Fund Limit Reconciliation
Monika reads a newspaper article that says there has been sharp increase in steel
cost recently. She knows this was not in her contractors original plan and decides to
put a few hundred dollars aside to deal with the price hike if it should happen. The
tool used by Monika is
Parametric estimating
Reserve analysis
Cost aggregation
Fund Limit Reconciliation
Control Costs
Control Costs
Project Management Plan contains Cost management plan and Cost performance
Baseline, these are helpful in controlling the cost.
Work Performance Data provides information on the status and cost of project
activities and ensures that the project goals and objectives are met as per the project
management plan
Organizational Process Assets that can influence this process include cost
budgeting policies, procedures, guidelines , cost budgeting tools and reporting
methods
1. Planned Value (PV) is the authorized budget assigned to the scheduled work to be
accomplished for a schedule activity or work breakdown structure component. It is
also known as Budgeted Cost of Work Scheduled (BCWS)
2. Earned Value (EV) is the value of work performed expressed in terms of the
approved budget assigned to that work for a schedule activity or a WBS
component. It is also known as Budgeted cost of Work Performed (BCWP)
3. Actual Cost (AC) is the total cost actually incurred and recorded in accomplishing
work performed for an activity or work breakdown structure component.
Variance Analysis helps in analyzing the performance of the project vis--vis cost
and schedule baselines
Cost Performance Index (CPI) measures the cost efficiency for the work completed,
it is the ration of EV to AC. CPI = EV/AC.
EAC = AC + ETC
EAC forecast for ETC work considering both SPI and CPI factors.
AC + [(BAC EV) / (cumulative CPI x cumulative SPI)].
TCPI based on the BAC: Work Remaining (BAC EV) / Fund Remaining (BAC AC).
TCPI based on EAC : (BAC-EV)/(EAC-AC)
3. Earned value management compares the baseline plan to actual schedule and
cost performance.
Project management software is often used to monitor the three EVM dimensions
(PV, EV, and AC), to display graphical trends, and to forecast a range of possible final
project results.
Reserve Analysis During cost control, reserve analysis is used to monitor the status
of contingency and management reserves for the project to determine if these reserves
are still needed or if additional reserves need to be requested.
Work Performance Information includes the calculated CV, SV, CPI, and SPI
values for WBS components, in particular the work packages.
Project Management Plan Updates Elements of the project management plan that
may be updated include Cost performance baseline, Cost management plan.
Organizational Process Assets that may be updated include, but are not limited to :
Cause of variances
Corrective action choosen and the reasons
Financial databases
Other types of lesson learned from project cost control
Exercise 1 : EVM
1. BAC
2. EV, PV
3. SV, CV
4. SPI, CPI
3. SV = EV PV = $ 16,000
CV = EV AC = - $ 80,000
4. SPI = EV / PV = 1.05
CPI = EV / AC = 0.8
Exercise 2 : EVM
PV =
EV =
CV =
BAC =
AC =
SV =
SPI = , CPI =
Exercise - 3 : EVM
EAC =
ETC =
VAC =
QUIZ !
What is Risk?
Project risk is an uncertain event that can have a positive or a negative impact
on the result
Risk Vs Issue
Risk Issue
Risk is an uncertain event or event Issue is an event that has already
that might happen in future occurred
Most of the organizations address such risks through Business continuity and
Disaster Recovery plan
Project Management Plan . All approved subsidiary plans and baselines should be
taken into consideration in order to make the risk management plan consistent with
them. The project management plan provides baseline or current state of risk-
affected areas including scope, schedule and cost.
Project Charter can provide various inputs such as high level risks, high level
project descriptions and high level requirements.
Stakeholder Register , which contains all details related to the projects stakeholder
, provide an overview of their role.
Enterprise Environmental Factors include the company culture and existing systems
that are dealt with and used by the project manager to run the project. The other
factors that can influence this process are risk attitudes and tolerances that describe
the degree of risk that an organization will withstand
Organizational Process Assets that can influence this process include risk
categories, common definitions of concepts and terms, risk statement formats,
standard templates, roles and responsibilities, authority levels for decision making,
lessons learned and stakeholder register
Analytical Techniques
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 exposure of a given project based on the overall project
Context. Some of the examples of these techniques are , use of strategic risk scoring
Sheets, a stakeholder risk profile analysis may be performed to grade and qualify the
project stakeholder appetite and tolerance.
Expert Judgment
Risk management plan describes the various risk management processes that will
be implemented, monitored and controlled throughout the project lifecycle. It can
include the following
1. Methodology Defines the approaches, tools and the data sources that may be
used to perform risk management on the project
2. Roles and Responsibilities Defines the lead, support and risk management
team membership for each type of activity in the risk management plan, assigns
people to these roles and clarifies their responsibilities
3. Budgeting - Assigns resources and estimates costs needed for risk management
for inclusion in the project cost baseline
4. Timing Defines when and how often the risk management process will be
performed throughout the project life cycle and establishes risk management
activities to be included in the project schedule.
The risk categories may be revisited during the Identify risks process. A good practice
is to review the risk categories during the Risk Management Planning process prior to
their use in Identify risks process. Risk categories based on prior projects may need to
be tailored, adjusted or extended to new situations before those categories can be
used on the current project.
8. Revised stakeholders tolerance, based on the project may be revised in the risk
management process.
9. Reporting formats, define how the outcomes of the risk management process will
be documented , analyzed and communicated. It describes the content and format of
the risk register as well as any other risk report required.
10. Tracking. Tracking documents how risk activities will be recorded for the benefit
of the current project and how risk management processes will be audited.
Project Initiation
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io
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un
op
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e
Lifecycle and
om
Environment Variables
C
Ideas Expectation
Directives Feasibility
Data Accuracy
Resource
Human
Cost
Availability Project Requirement
Productivity Standards
Risk
Performance
Time Objectives
Services
Restraints
Materials
Restraints
Cost Objectives
Pr
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Q
en
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Time
Risk Identification process determines which risks may affect the project and
documenting their characteristics. It is an iterative process as risk can be identified at
any levels in the project. Irrespective of risks having positive or negative
consequences, all risks events and their consequences should be identified.
Identify Risks
Risk Management Plan provides inputs regarding the assignment of roles and
responsibilities, provision for risk management activities in the budget and schedule,
and categories of risk, which are sometimes expressed in a Risk Breakdown Structure.
Cost Management Plan provides processes and controls that can be used to help
identify risks across the project
Activity duration estimates are useful in identifying risks related to the time
allowances for activities or project as a whole, with the width of the ranges of these
estimates indicating the relative degree of risk.
Project Documents that may be useful while identifying risks are assumptions log,
work performance reports, network diagrams, baselines and other project information
that may be useful in identifying risks.
Enterprise Environmental Factors that can influence this process are published
information which consists of commercial database, academic studies, published
checklists, benchmarking, industry studies and risk attitudes.
Organizational Process Assets that can influence this process are project files,
organizational and project process controls, risk statement templates and lessons
learned
Information gathering techniques There are five key techniques for information
gathering
Root Cause identification involves identifying the causes of risks and improves
the understanding of the risk. It sharpens the definition of the risk and allows
grouping risks by causes. Effective risk response can be developed if the root
cause of the risk is addressed
Diagramming Techniques may include Cause and effect diagrams also known
as Ishikawa or fishbone diagrams, System or process flowcharts, and
influence diagrams, which are graphical representation of situations showing
causal influences
Risks Register The identified risks are mentioned in the document called a Risk
Register, which becomes a component of the project management plan. Following
items can be included in the Risk Register
List of identified risks The list can state the EVENT that may occur , the
IMPACT and if CAUSE, EVENT may occur , then listing of EFFECT. Root causes of
the risk events can also be listed
These inputs are documented during Perform Qualitative Risk analysis if not defined
during the risk management process.
Risk Register contains all the identified risks, its a component of the project
management plan
Enterprise Environmental Factors, may provide insight and context to the risk
assessment such as :
Organizational Process assets that can influence this process are information of
similar previous projects, studies of similar projects by risk specialists and risk
databases that may be available from industry or proprietary sources.
Risk probability and impact assessment examines the likelihood that each specific risk will
occur and evaluates the potential effect of any of the project objectives such as time, cost, scope
or quality. It also evaluates the positive opportunities and negative threats. To assess the
probability and impact of each risk, a meeting or interview with subject matter experts either
internal or external to the organization is conducted where levels are assigned to each risk and
also the potential effects of these risks is evaluated in case the risk occurs
Probability and impact matrix assigns ratings to each risk and classifies them for either
perform quantitative risk analysis or plan risk responses. Ratings are assigned to risks based on
the combination of probability and impact. The risk may guide in providing risk responses as
indicated below
Risks that have a negative impact on the project objectives if they occur (threats) and that are
in the high risk (black zone of the matrix), may require priority action and aggressive response
strategies.
Threats in low risk (medium gray zone) may not require proactive management action
beyond being placed on a watch list or adding a contingency reserve.
For opportunities, those in the high-risk (black zone) that can be obtained most easily and offer
the greatest benefit should, therefore be targeted first
Opportunities in the low-risk (Medium gray zone) should be monitored
Risk data quality assessment involves determining the quality or usefulness of the data collected
to evaluate the risk as per the risk management plan. It involves examining degree to which the risk
is understood, and the accuracy, quality, reliability and integrity of the data about risk. If data quality
is unacceptable, it may be
necessary to gather higher-quality data.
Risk categorization Project risks can be categorized by the source of risk (e.g., using the RBS),
areas of the project affected (e.g. ,using the WBS) or other useful category (e.g. , project phase,
etc.) to determine areas of the project most exposed to the effects of uncertainty. Grouping risks by
common root causes can lead to developing effective risk responses.
Risk urgency assessment determines how soon the potential risks may occur, and it also identifies
near- term responses for those risks.
Expert judgment is required to assess the probability and impact of each risk to determine its
location in the probability impact matrix
Risk Register Updates Risk register is initiated during identify risk process ,and is updated with
information from Perform Qualitative Risk Analysis.
Relative ranking or priority list of the project risks. The probability and impact matrix can be
used to classify risks according to their individual significance. The project manager can then use the
prioritized list to focus attention on those items of high significance to the project, where responses
can lead to better project outcomes. Risk may be listed by priority separately for cost, time, scope
and quality as organizations may value one objective over another. A description of the basis for the
assessed probability and impact should also be included for the assessed risks.
Risk grouped by categories can reveal common root cause of the risk or project areas requiring
particular attention.
List of risks requiring response in the near-term. Those risks that require an urgent response
and those that can be handled at a later date may be put into different groups.
List of risks for additional analysis and response. Some risks might warrant
more analysis , including perform qualitative risk analysis as well as response action
Watch-lists of low priority risks. Risks that are not assessed as important in the
Qualitative Risk Analysis process can be placed on a watch-list for continued
monitoring
Cost management plan contains baseline data related to cost, this may help to
determine the approach for Quantitative analysis for the project.
Schedule management plan contains baseline data related to schedule, this may
help to determine the approach for Quantitative analysis for the project.
Risk register is used as a reference point for performing quantitative risk analysis
Organizational process assets that can influence this process are information of
previous projects, studies of similar projects by risk specialists and risk databases that
may be available from industry or proprietary sources.
Enterprise Environmental Factors may provide insight and context to the risk
analysis, such as :
Industry studies of similar projects by risk specialists, and
Risk databases that may be available from industry or proprietary sources.
Organizational process assets that can influence this process are information of
previous projects, studies of similar projects by risk specialists and risk databases that
may be available from industry or proprietary sources.
Asymmetrical distribution depicts shape which are compatible with the data
typically developed during project risk analysis. Asymmetrical distributions are of two
types- Continuous probability distributions represent the uncertainty in values, such as
durations of schedule activities and costs of project components, whereas Discrete
probability distributions can be used to represent uncertain events, such as the
outcome of a test or a possible scenario in the decision tree.
Uniform distributions can be used if there is no obvious value that is more likely
than any other between specified high and low bounds
Sensitivity analysis. This aid in determining which risks have the most potential
impact on the project. It examines the extent to which the uncertainty of each project
element affects the objective being examined when all other uncertain elements are
held at their baseline values. Sensitivity analysis can be done by using the Tornado
diagram.
Expected monetary value (EMV) analysis is a statistical concept that calculates
the average outcome when the future includes scenarios that may or may not happen
(i.e. analysis under uncertainty). The EMV of opportunities will generally be expressed
as positive values while those of risks will be negative. EMV is calculated by
multiplying the value of each possible outcome by its probability of occurrence and
adding them together.
Modeling and simulation. A project simulation uses a model that translates the
uncertainties or potential risks specified at a detailed level of the project into their
potential impact on project objectives.
Simulation techniques compute the project model using the inputs such as cost or
schedule to determine the probability distribution. Simulation techniques should be the
preferred one for predicting schedule or cost risks as compared to other techniques
Simulations are typically performed using the Monte Carlo technique. In a simulation,
the project model is computed many times (iterated) with the input values randomized
from a probability distribution function (e.g. cost of project elements or duration of
schedule activities) chosen for each iteration from the probability distribution of each
variable. A probability distribution is then calculated.
Risk Register Updates The register initiated in the Identify Risks process and is updated in
Perform Qualitative Risk Analysis process. The risk register is a component of the
project management plan. Updates include the following components :
Probabilistic analysis of the project. Estimates are made of potential project schedule and
cost outcomes, listing the possible completion dates and costs with their associated confidence
levels. This output typically expressed as a cumulative distribution is used with stakeholder
risk tolerances to permit qualification of the cost and time contingency reserves
Probability of achieving cost and time objectives. With the project facing the risks, the
probability of achieving project objectives under the current plan can be estimated using
quantitative risk analysis results
Prioritized list of quantified risks. This list of risks includes those that pose the greatest
threat or present the greatest opportunity to the project. These include the risks that require
the greatest cost contingency and those that are most likely to influence the critical path.
Trends in quantitative risk analysis results. As the analysis is repeated a trend may
become apparent that leads to conclusions affecting risk responses
Risk management plan include roles and responsibilities, risk analysis definitions,
risk thresholds for low, moderate and high risks and the time and budget required to
conduct the project Risk Management Processes. Some components of the Risk
Management Plan that are important inputs to Plan Risk Responses may include risk
thresholds for low, moderate and high risks to help understand those risks for which
responses are needed, assignment of personnel and scheduling and budgeting for risk
response planning.
Risk register provides important inputs related to this process and this include the
relative rating or priority list of project risks, a list of risk for additional analysis and
response, trends in qualitative risk analysis results, root causes, risk grouped by
categories and a watch list of low priority risks.
Avoid. Risk avoidance involves changing the project management plan to eliminate the threat
posed by an adverse risk, to isolate the project objectives from the risks impact or to relax the
objective that is in jeopardy, such as extending the schedule or reducing scope. Some risks that
arise early in the project can be avoided by clarifying requirements, obtaining information, improving
communication or acquiring expertise.
Transfer. Risk transference requires shifting the negative impact of a threat, along with
ownership of the response to a third party. Transferring the risk simply gives another party
responsibility for its management, it doesnt eliminate it. Risk transference nearly always involves
payment of a risk premium to the party taking on the risk. Transference tools can be quite diverse
and can include but are not limited to the use of insurance, performance, bonds, warranties,
guarantees etc.
Mitigate. Risk Mitigation implies a reduction in the probability and impact of an adverse risk event
to an acceptable threshold. E.g. Conducting more tests, a more stable supplier etc
Accept. This includes passive or active acceptance. Passive acceptance requires no action , the
most common active acceptance strategy is to establish a contingency reserves, including amounts
of money or resources to handle known or unknown threats/ opportunities
Exploit .This strategy may be selected for risks with positive impacts where the organization
wishes to ensure that the opportunity is realized. This strategy seeks to eliminate the uncertainty
associated with a particular upside risk by making the opportunity definitely happen. Directly
exploiting responses include assigning more talented resources to the project to reduce time to
completion or to provide better quality than originally planned.
Share. Sharing a positive risk involves allocating ownership to a third party who is best able to
capture the opportunity for the benefit of the project. E.g. forming risk-sharing partnerships, teams,
special-purpose companies or joint ventures, which can be established with the express purpose of
managing opportunities.
Enhance . This strategy modifies the size of an opportunity by increasing probability and /or
positive impacts and by identifying and maximizing key drivers of these positive-impact risks.
Seeking to facilitate or strengthen the cause of the opportunity and proactively targeting and
reinforcing its trigger conditions, might increase the probability
Accept. Accepting an opportunity is being willing to take advantage of it if it comes along, but not
actively pursuing it.
Contingent response strategy. Some responses are designed for use only if certain
events occur. For some risks, it is appropriate for the project team to make a response
plan that will only be executed under certain predefined conditions, if it is believed
that there will be sufficient warning to implement the plan. Events that trigger the
contingency response such as missing intermediate milestones or gaining higher
priority with a supplier, should be defined and tracked
Project Management Plan Updates- Elements of the project management plan that
may be updated include
Project Document Updates. This include components of the Risk register such as
Identified risks their descriptions, areas of the project (e.g. WBS element) affected,
their causes (e.g. RBS element) and how they may affect project objectives
Output from the Perform Qualitative and Perform Quantitative Risk Analysis
processes, including prioritized lists of project risks and probabilistic analysis of the
project
Contingency reserves of time and cost designed to provide for stakeholders risk
tolerance.
Fallback plans for use as a reaction to a risk that has occurred and the primary
response proves to be inadequate
Residual Risks that are expected to remain after planned response have been taken
as well as those that have been deliberately accepted
Contingency reserves that are calculated based on the quantitative analysis of the
project and the organizations risk thresholds.
Control Risks
Control Risks
Project management plan consists of the risk management plan which includes the
assignment of people, time, and resources to the project risk management process.
Risk register which is a subset of the project management plan, includes a list of
identified risks agreed upon risk responses, specific implementation actions, symptoms
and warning signs of risk, residual and secondary risks, watch-list of low priority risks
and cost contingency reserves.
Work Performance reports gather and summarize the information required by the
stakeholders. This information is an analysis of the work performed during the
execution process vis--vis project baseline and is relevant to the risk management
process.
Risk reassessment indicates reassessing the identified risks and identification of new risks as
defined in the risk management plan. Project risk reassessment should be performed regularly and it
can be included as an agenda item at the project status meetings.
Risks audits are scheduled audits that document the effectiveness of risk responses with respect to
their dealing with identified risks and their associated root causes. This aids in determining the
effectiveness of the risk management process.
Variance and trend analysis Performance data provides the data for variance and trend analysis.
Using this data and applying the earned value analysis and similar methods of project variance and
trend analysis; it is possible to monitor the overall project performance.
Technical performance measurement. This involves identifying the variance in the technical
performance from the planned technical schedule. Any variance from the defined milestone(s) can
aid the project team to forecast the degree of success in achieving the projects scope.
Reserve analysis. During the planning phase, contingency reserves are defines as a part of risk
response plan. During execution some of the reserves get exhausted. This tool determines if the
remaining reserves are sufficient to tackle the remaining risks.
Change requests - During this process, there may be requested change due to
implementation of the contingency plans or workarounds. These changes are reviewed
and approved through the integrated change control process.
Project management plan updates may arise as a result of the approved change
requests
QUIZ !
What is Quality?
Standard Definition:
Quality is the degree to which a set of inherent
characteristics fulfil requirements PMBOK
Guide (Glossary)
Conformance of requirements of the customer
Philip Crosby
Fitness for use Joseph Juran
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What is Grade?
Importance of Quality?
Quality Principles
Identifying quality requirements and/or standards for the project and product, and
documenting how the project will demonstrate compliance.
This process is important to ensure that the resulting product is of acceptable quality.
This is performed in parallel with the development of the project management plan
and other planning process
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Project Management Plan The following contents of the project management plan
are useful in creating Quality management plan
Scope baseline include Project scope statement, Work breakdown structure and WBS
dictionary.
Schedule baseline contains the accepted schedule performance measures , including start and
finish dates
Cost Base line documents the accepted time interval being used to measure cost performance
Other management plans . These plans contribute to the overall project quality and may
highlight actionable areas of concern with regard to the project quality
Risk register will list all the risks that may have impact on the quality
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Cost-benefit analysis considers the cost benefit trade offs, the benefit of quality
activities must outweigh the costs e.g. higher productivity, less rework and lower cost.
Cost of quality (COQ) considers the expense of all the activities within a project to
ensure quality and is the sum of the following
Source : http://en.wikipedia.org/wiki/Control_chart
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Check sheets, which are also known as tally sheets and may be used as a checklist
when gathering data. Check sheets are used to organize facts in a manner that will
facilitate the effective collection of useful data about a potential quality problem.
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Quality Management Plan defines how the project team will implement the
organizations quality policy
Process improvement plan explains how quality activities will be streamlined and
improved. The areas to consider include process boundaries, process configuration,
process metrics and targets for improved performance
Quality Metrics define how the quality will be measured. Quality metrics is also called
as operational definitions
Quality Checklists ensures that a set of required steps have been performed and
they were performed in the proper sequence
Project document updates that may be updated as plan quality is performed are
Stakeholder register and responsibility assignment matrix.
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Auditing quality requirements and the results from quality control measurements to
ensure appropriate quality standards and operational definitions are used. This is
performed as an ongoing activity in the project life cycle
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Quality Management Plan describes the quality assurance and continuous process
improvement approaches for the project.
Quality control measurements are used to analyze and evaluate the quality
standards and processes of the performing organization
The perform Quality Assurance uses the tools and techniques of the Plan Quality
Management and Control quality process. In addition, other tools that are available
include
Affinity Diagram. Similar to mind-mapping techniques in that they are used to
generate ideas that can be linked to form organized patterns of thought about a
problem. The creation of WBS may be enhanced by using the affinity diagram to give
structure to the decomposition of scope.
Tree Diagrams. Also known as systematic diagrams and may be used to represent
decomposition hierarchies such as the WBS, RBS (Risk breakdown structure), and OBS
(Organizational breakdown structure ). As the tree diagrams permit the creation of
nested branches that terminates into a single decision point , they are useful as
decision trees for establishing an expected value for a limited number of dependent
relationships that have been diagrammed systematically.
Prioritization matrices. Identify the key issues and the suitable alternatives to be
prioritized as a set of decisions for implementation. Criteria are prioritized and
weighted before being applied to all available alternatives to obtain a mathematical
score that ranks the options.
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Matrix diagrams. A quality management and control tool used to perform data
analysis within the organizational structure created in matrix. The matrix diagram
seeks to show the strength of the relationships between factors , causes , and
objectives that exist between the rows and columns that form the matrix.
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Process Analysis - follows the steps outlined in the process improvement plan to
identify needed improvements . This analysis also examines problems experienced ,
constraints experienced , and non value added activities identified during process
operations. Process analysis includes root cause analysis a specific technique used
to identify a problem , discover the underlying causes that lead to it, and develop
preventive actions.
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Change Requests are the outcome of updating quality standards and processes to
improve organizations effectiveness and efficiency
Control Quality
Control Quality
Project management plan contains the quality management plan, which describes
how quality control will be performed within the project
Quality Metrics will be used to measure whether the work result meet quality
specification
Work Performance Data evaluate actual progress against the planned progress.
Approved change requests include modification such as defect repairs, revised work
methods and revised schedule
Project Documents such as Agreements , Quality audit reports and change logs
supported with corrective actions plans, Training plans and assessments of
effectiveness.
Organizational Process Assets that influence the control quality process include,
but are not limited to:
Validated changes involve inspection of any changed or repaired items and they will
be either accepted or rejected before notification of the decision is provided. Rejected
items may require rework.
Project documents that may be updated include, but are not limited to, quality
standards, Agreements , Quality audit report and change log supported with corrective
action plans.
QUIZ !
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Kinds of Communication
Formal vs Informal
Verbal vs Non-verbal
Official vs Non-official
Written vs Oral
Vertical vs Horizontal
Kinds of Communication
Communication Example
Type
Formal Written RFP, Project Charter
Additional Information
Nonverbal Communication
Means gestures, facial expressions, and physical appearance while you
are communicating your message
Feedback
Is when you respond to communication.
Active listening
When you give feedback to someone who is speaking
2. You sent an email to some of your team members to get more information about an
issue that has been identified on your project. This is an example of ___________ kind
of communication
A. Informal verbal
B. Informal written
C. Formal verbal
D. Formal written
1. The Project manager writes a requirement specification for your project. This is an
example of ___________ kind of communication.
A. Informal verbal
B. Informal written
C. Formal verbal
D. Formal written
2. You sent an email to some of your team members to get more information about an
issue that has been identified on your project. This is an example of ___________ kind
of communication
A. Informal verbal
B. Informal written
C. Formal verbal
D. Formal written
4 people 6 channels
6 people 15 channels
Communication Plan
Current Top 5 Risks Email and Intranet Weekly All internal stakeholders
Manage Communications
This process updates stakeholders on the progress of the project as per the
communications management plan. The information that gets distributed
includes status reports, review meetings etc
Manage Communications
Inputs Tools and Techniques Outputs
Communication Communication Project
management plan technology communications
Work performance Communication models Project
reports Communications method management plan
Enterprise Information management updates
environmental factors system Project
Organizational Performance reporting document updates
process assets Organizational
Process assets
updates
This process tracks how the project is progressing against the plan
and provide report to stakeholders on status, progress metrics
(Schedule and Cost variance) and forecasts
Communication Channels
Channels = n(n-1)/2
Where n is the number of people on the project
Communication Filtering
Ambiguous language
Predefined mindset
Hidden agenda in message content
Senders reputation
Senders status in the organization
Dysfunctional emotional behavior
Environmental Background
You are managing a project with five team members and one
sponsor. Draw all the channels of communication on this picture.
QUIZ !
Processes that organize, manage and lead the project team. Project team is comprised of the
people with assigned roles and responsibilities for completing the project.
Project Management Plan provides useful information such as , how work will
be executed to accomplish the project objectives, A change management plan that
documents how changes will be monitored and controlled, how integrity of the
project baselines will be maintained . Need and method of communication among
stakeholders.
Human Resource Plan has three components roles and responsibility, organization
charts and the staffing management plan.
Confirming human resource availability and obtaining the team necessary to complete
project assignments
Enterprise Environmental Factors that can influence this process are existing
information for human resources including who are available, competency levels,
prior experience personnel administration policies, processes and procedures
Organizational Process Assets that can influence the Acquire Project Team process
include, but are not limited to, organization standard policies, processes, and
procedures.
Acquisition is needed when specific skills are not available in the organization. This
can involve hiring individual consultants or subcontracting work to another
organization
Virtual teams can be defined as groups of people with a common goal who fulfill their
roles with little or no time spent meeting face to face. Communication is important in
such teams, the availability of electronic communication such as e-mail, audio
conferencing, web-based meetings and video conferencing has made such teams
feasible.
Multi Criteria Decision Analysis, Selection criteria are often used as a part of
acquiring the project team . By use of a multi- criteria decision analysis tool, criteria
are developed and used to rate or score potential team members. The criteria are
weighted according to the relative importance of the needs within the team. Some
examples of selection criteria that can be used to score team members are:
Resource Calendars documents the time periods that each project team member
can work on the project. This should be created keeping in mind each persons
schedule conflicts, involvement in other projects and his/her holiday
Project Management Plan Updates Elements of the project management plan that
may be updated include, but are not limited to the human resources plan.
Resource Calendars identify the times when the project team members can
participate in team development activities.
Interpersonal Skills also referred to as soft skills are very critical for team
development. It include skills such as empathy, influence, creativity, and group
facilitation, these are valuable assets when managing the project team.
Storming: Disagreement about mission, vision, and approaches combined with the
fact that team members are getting to know each other can cause strained
relationships and conflict.
Adjourning : In the adjourning phase, the team completes the work and moves on
from the project.
Ground Rules define the acceptable behavior by the project team members. This
allows team members to discover values that are important to one another
Co-Location involves placing many or all of the most active project team members in
the same physical location to enhance their ability to perform as a team. E.g. create a
war room where all the team members work, or co-locate the project team at the
customers site.
Recognition and Rewards helps in keeping the team motivated and to boost their
spirits. People are motivated if they feel they are valued in the organization and this
value is demonstrated by the rewards given to them.
McGregors Theory X
McGregors Theory Y
According to Theory Z, people who dont fit either Theory X or Theory Y are really a combination of the two.
As per this theory presence of hygiene factors doesnt motivate someone , however their
absence de-motivates. Motivation factors will motivate but they will not work without the
hygiene factors in place.
I. Motivating factors
I. Achievements
II. Recognitions
III. Work Itself
IV. Responsibility
V. Advancement
VI. Possibility for growth
Hygiene Factors are Company Policy, Paycheck, status, Relationship with co-workers
Ouchis Theory
2. Both Management and Workers need to be involved, and they should trust each
other
I. Skill Variety the number of job skills that the job holder has the opportunity
to exercise
II. Task Identity the degree to which your work and its result are identifiable as
belonging to you
III. Task Significance the degree to which your job has an influence on others
IV. Autonomy the discretion you have about the way that you do the job
V. Feedback the information that you get back about the result of your work
Forms of Power
Below are the five Kinds of Power that can help the project managers maximize his ability
to influence and manage the team
Reward the power to give a positive consequences, like promotions, salary rise
etc.
Referent power gained when team members admire, and willingly follow an
individual as a role model
Leadership Style
Following are the leadership style that managers can use to interact with organizational
members
Autocratic traditional figure of a boss who makes binding decisions
regardless of what subordinates think or desire
Laissez-Fare Other extreme of autocratic, the staff can pursue anything
they wish, enhances free thinking
Democratic participative, decisions made jointly by management and staff
Human Resource Management Plan contains the human resource plan which
includes roles and responsibilities, project organization and staffing management plan
Project staff assignments provide a list of team members assigned to the project
that needs to be evaluated under the appraisal process
Team Performance Assessment is done on continuous basis formally or informally
by the project management team. This helps in issues and conflict resolution
Issue Log, Issues arise in the course of managing the project team. An issue log can
be used t document and monitor who is responsible for resolving specific issues by a
target date.
Work Performance Reports provide information on project performance vis--vis
project management plan. It aids in determining the future resource requirements,
recognition and rewards and updates to the staffing management plan.
Organizational process assets that can influence this process include certificates of
appreciation, newsletters, website, bonus structure, corporate apparel and
organizational perquisites
Observation and Conversation are used to stay in touch with the team members
work and attitudes. The project management team monitors progress toward project
deliverables, accomplishments that are a source of pride for team members, and
interpersonal issues.
Project Management Plan Updates may include changes in the human resource
management plan
Change Requests due to change in staffing. The change request should be processed
and approved through integrated change control process
Figure out the conflict resolution technique that is being used in the cases
below:
1. I dont really have time to deal with this right now. Just figure it out and
get back to me.
2. Hold on a second. Lets sit down and figure out what the real problem is.
Figure out the conflict resolution technique that is being used in the cases
below:
1. I dont really have time to deal with this right now. Just figure it out and
get back to me - Withdrawal
2. Hold on a second. Lets sit down and figure out what the real problem is
Problem Solving / Confronting
Halo Effect
Exercise 3: HR Management
Exercise 3: HR Management
QUIZ !
Quiz Quarter
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Identify Stakeholders
The key benefit of Identify stakeholder process is that it allows the project
manager to identify the appropriate focus for each stakeholder or group of
stakeholders
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Identify Stakeholders
There are multiple classification models used for stakeholders analysis , such as :
Power /Interest grid, grouping the stakeholders based on their level of authority
(power) and their level or concern (interest) regarding the project outcomes
Power /Influence grid, grouping the stakeholders based on their level of authority
(power) and their active involvement (influence) in the project.
Influence/ Impact grid , grouping the stakeholders based on their active involvement (
Influence ) in the project and their ability to effect changes to the projects planning or
execution ( impact ).
Senior Management
Other units within the organization
Identified key stakeholders
Project managers who have worked on projects in the same area
Subject Matter Experts in the business project area
Industry groups and consultants
Professional and technical associations , regulatory bodies and non governmental
organizations (NGOs)
Assessment Information:
Stakeholders Category:
Life cycle selected for the project and the processes that will be
applied to each phase;
Description of how work will be executed to accomplish the project
objectives;
Description of how human resources requirements will be met and
how roles and responsibilities, reporting relationships, and staffing
management will be addressed and structured for the project;
Change management plan that documents how changes will be
monitored and controlled
Need and techniques for communicating among stakeholders
.
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Senior Management
Project Team Members
Other units or individuals within the organization
Identify key stakeholders
Project managers who have worked on the projects in the same
area
Industry groups and consultants
Professional and technical associations , regulatory bodies and non
governmental organizations.
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Meetings Should be held with experts and the project team to define
the required engagement levels of all stakeholders. This information
can be used to prepare the stakeholder management plan
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.
Manage Stakeholder Engagement Tools
and Techniques
Communication Methods The methods of communication identified for each
stakeholder in the communications management plan are utilized during stakeholder
engagement management. Based on the stakeholders communication requirements,
the project manager decides how, when, and which of these communication methods
are to be used in the project
Interpersonal skills - This include conflict management skills, communication
skills, ability to overcome resistance to the change.
Project documents updates - Project documents that may be updated include, but
are not limited to, the stakeholder register. This is updated
as information on stakeholders change, when new stakeholders are identified, or if
registered stakeholders are no longer involved in or impacted by the project, or other
updates for specific stakeholders are required.
Organizational process assets updates - The organizational process assets that may
be updated include,
Project records. Project records include correspondence, memos, meeting minutes, and
other documents describing the project.
2. Issue Log The issue log is updated as new issues are identified and current issues are resolved
4. Project Documents Multiple project documents originating from initiation , planning, execution
, or control processes may be used as supporting inputs for controlling stakeholder engagement.
These include
Project schedule
Stakeholder register
Issue Log
Change Log
Project Communications
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Issue log This is updated as new issues are identified and current issues
are resolved.
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Plan Procurements
Plan Procurements
Project Management Plan - describes the need, justification, requirements, and current
boundaries for the project. It consists of Scope statement, WBS and WBS dictionary.
Risk Register include risk-related information such as identified risk, risk owners and risk responses
Activity resource requirements state the type and quantities of resources needed for project
activities
Activity cost estimates are used to evaluate the price quoted in the bids or proposals received
from potential sellers
Stakeholder Register describes the details on the participants and their interest in the project
Enterprise Environmental Factors includes condition of marketplace, what product and service
are available in the market, who is the seller and what are his terms and condition
Types of Contract
Time & Material T & M The seller is paid for the amount of time it
takes to accomplish the work and he is
also reimbursed for the materials used for
the project
Firm Fixed Price - FFP The seller is paid a fixed price for an
agreed upon unit of work done by him
Fixed Price Incentive Fee FPIF The seller is paid a fixed price plus an
incentive amount for achieving pre-agreed
project metrics
Fixed Price with Economic Price The seller is paid a fixed price. The
Adjustment Contracts FP-EPA contract is reviewed at pre-defined
intervals in the project for adjustments to
the contract price based on certain
parameters
Types of Contract
Cost Plus Fixed Fee CPFF The contractor is reimbursed its cost plus
an additional fixed fee. Not desirable from
the buyers point of view
Cost Plus Incentive Fee - CPIF Seller is reimbursed for an agreed upon
performance cost along with a pre-
established fee plus an incentive bonus. In
this case, the buyer and seller share the
uncertainty to a certain degree
Cost Plus Award Fee Seller is reimbursed for an agreed upon
performance cost plus all legitimate cost
Make or buy analysis helps project management team to decide whether it is beneficial
(in terms of cost and quality) to procure a product or service or it can be produced within
the organization.
Source selection criteria are the set of guidelines on the basis of which a particular
seller is selected from among the proposals received. Some of the source selection
criteria are sellers understanding of need , overall- life-cycle cost, technical capability,
Risk, past performance of the seller, Financial capacity, Warranty etc
Change requests may be there during this process due to updates in the project plan
or its subsidiary plan and other components. These changes are reviewed and
approved through the integrated change control process.
1. 8 months
2. 16 months
3. 21 months
4. 25 months
Conduct Procurement
Conduct Procurement
Procurement Documents as explained earlier provide an audit trail for contracts and
other agreements
Source Selection criteria are set of guidelines, either subjective or objective, that
are used by the performing organization to select a particular contract/ vendor (seller)
from among the proposals received.
Seller proposals are responses to the procurement document package that will be
used for selection of the sellers by the organizations evaluation body
Project documents that are important inputs to this process include risk register and
risk related contract decisions.
Make- or -buy decisions as explained earlier is based on the outcome of Make or-
buy- Analysis. The factors that influence the decision making include , core
competencies of the organization, value delivered, risk associated with meeting the
need in a cost=effective manner and internal capability as compared to the vendor
community.
Specifications
Quantity desired
Quality levels
Performance data, period of performance, work location and other requirements
Organizational Process Assets that can influence this process include listings of
prospective and previously qualified sellers and information on relevant past
experience with sellers, prior agreements
Bidder conferences are meetings wherein the prospective supplier (sellers) are called
in to ensure that all the supplier have a clear understanding of the work defined in the
procurement documents.
Expert Judgment includes a team of experienced and skilled experts for evaluation of
proposals under various areas of expertise as mentioned in the procurement
documents and contract
Procurement negotiations between the buyers and the potential sellers are
performed with the goal of reaching mutual agreement on the contractual terms and
conditions. The goal is to reach a win-win scenario between the buyer and seller.
Selected Sellers are those who have met the evaluation criteria and negotiated a
draft contract with the buyer, which will become the actual contract when the contract
is awarded
Agreement is a formal document governing the relationship between the buyer and
the seller. The contract describes the work to be performed and perhaps the way in
which the work will be performed. An important to include with the contract is how
disputes will be resolved. Depending upon the application area, an agreement can also
be called an understanding , a contract, a subcontract, or a purchase order.
Regardless of the document complexity , a contract is a mutually binding legal
agreement that obligates the seller to provide the specific products, services, or
results and obligates the buyer to compensate the seller. The major component of
agreement are:
Penalties
Incentives
Insurance and performance bonds
Subordinate subcontractor approvals
Change request handling and
Termination clause and alternative dispute resolution (ADR) mechanism. The ADR
method can be decided in advance as a part of the procurement award.
Resource Calendar state the availability and the quantity of contracted resource and
the project period (dates) during which the resources are active or idle
Change Requests to the project management pan, its subsidiary plans and other
components are processed for review and disposition through the Perform Integrated
Change Control process.
Project Management Plan Updates, the elements of the project management plan
that may be updated include Cost baseline, Scope baseline, Schedule baseline,
Communication management plan, and Procurement management plan.
Project Document Updates, the project documents that may be updated include,
requirement documentation, requirement traceability documentation, risk register and
stakeholder register.
Selected Sellers are those who have met the evaluation criteria and negotiated a
draft contract with the buyer, which will become the actual contract when the contract
is awarded
Resource Calendar state the availability and the quantity of contracted resource and
the project period (dates) during which the resources are active or idle
Control Procurements
Control Procurement
Project Management Plan describes how the procurement process will be managed
from developing procurement documentation through contract closure.
Approved change requests include modifications to the terms and condition of the
contract including the procurement statement of work, pricing and the description of
the products , services or results.
Inspections and audits are done by the buyer and supported by the seller to identify
any non-compliance to the projects process or deliverables.
Payment system helps to ensure that invoices and payments match up and that the
right amount is being invoiced for the right deliverables at the right time.
Change requests, changes to the project management plan, its subsidiary plans, and
other components , such as the cost baseline, schedule baseline, and procurement
management plan may result from the control procurement process.
Close procurements
Close Procurement process closes the procurement applicable to that phase of the
project
Close procurements
Explain the risks from buyer and seller perspective in case of the following
types of contracts
Negotiations Techniques
Negotiations Techniques
Fait Accompli: a party may claim that what is being asked for has
already been accomplished and cannot be changed
QUIZ !