PMP Session Day 2

Project Time Management
Define Activities
Process of
Identifying the specific actions to be performed
to produce project deliverables at the lowest
level in WBS (work packages).
Therefore we decompose work packages into
activities needed to complete them!
32
0
Activities
Provide a basis for estimating, scheduling,

executing, and monitoring and controlling the
project work.
We should define and plan activities in order to
achieve project objectives.
32
1
Define Activities process overview
INPUTS TOOLS & OUTPUTS

Scope baseline TECHNIQUES
Enterprise Activity list
Decomposition Activity attributes
environmental factors
Templates Milestone list
Organizational process
Rolling wave planning
assets
Expert judgment
32
3
Define Activities DECOMPOSITION

The work packages are subdivided
TOOLS & into smaller and more manageable
TECHNIQUES
components (schedule activities).
Decomposition
Templates The process of decomposition is the
Rolling wave planning
Expert judgment same as we discussed during create
WBS, except that the output in this
case is activities instead of
deliverables.
32
7
The WBS, WBS dictionary, and activity list

can be developed either sequentially or
concurrently.
Involving team members can lead to better

and more accurate results!
32
8
Project Time Management “Define Activities”
TEMPLATES
an activity list or a portion of an activity list

from a previous project. Related activity
attributes info in the templates also helps.
Templates can help identify typical

schedule milestones!
32
9
Define Activities Rolling wave planning

Schedule activities exist at various
TOOLS & levels of detail in the project life
TECHNIQUES
cycle. More detailed for work
Decomposition
Templates packages to be accomplished in the
Rolling wave
planning
near term. They are less detailed for
Expert judgment the ones to be performed far in the
Planning component
future. This leads to progressive
detailing.During strategic planning,
activities kept a at milestone level due
33
to little information.
0
Define Activities Rolling wave planning

TOOLS &
Rolling wave planning is
TECHNIQUES “progressive elaboration
Decomposition
Templates
planning.” Work to be done in
Rolling wave
planning
near term is planned in details
Expert judgment
Planning component
at lower level of WBS. And the
one that is to be done far in
future is planned at higher
33 levels in WBS.
1
Define Activities Expert judgment

TOOLS &
Project team members/other
TECHNIQUES Experts (experienced and skilled
Decomposition
Templates in developing detailed scope
Rolling wave
planning statements, WBS and
Expert judgment
Planning component
schedules) provide expertise in
defining activities.
33
2
Define Activities process: Outputs
ACTIVITY LIST
Consists of all the schedule activities to be
performed to complete the project.
Includes the activity identifier and a scope of

work description for each activity in sufficient
detail to help team members understand what
work is required to be accomplished!
33
3
Activity attributes
Extend the description of each activity by
identifying multiple components associated with
each activity.
Please note: components for each activity evolve
over time. During initial stages of the project they
include: activity ID, WBS ID, and activity name.
33
4
Activity attributes
When completed they may include:
1) activity codes, activity descriptions,
2) predecessor, successor, logical relationships,
3) leads and lags,
4) resource requirements,
5) imposed dates,
6) Constraints, and assumptions.
33
5
Define Activities Milestone list

OUTPUTS
Identifies all milestones and indicates:
- Mandatory milestones (in contract)
Activity list
Activity attributes - Optional milestones (as per
Milestone list
project requirements/historical
information)
Milestones list is a component of
project management plan
33 Milestones are used in

9 schedule model.
Sequence Activities
IDENTIFYING AND DOCUMENTING

INTERACTIVITY LOGICAL RELATIONSHIPS
Among schedule activities
FOR DEVELOPMENT OF
A REALISTIC AND ATTAINABLE SCHEDULE
34 LATER
0
Sequence Activities
The schedule activities can be

logically sequenced with proper
precedence relationships
and leads and lags
for developing an achievable
34 and realistic schedule later.
1
Sequence Activities
Feeling uneasy about sequencing the whole host of

project activities?
Don’t worry, you don’t have to do it all manually!
You can choose to:
Use Project management software
Do it by manual method
Or use combination of both
34
2
Sequence Activities process overview

TECHNIQUES
Project scope statement Precedence Project Schedule
Activity list diagramming Network Diagrams
Activity attributes method (PDM) Project document
Milestone list schedule network updates
Organizational process templates
assets Dependency
determination
Applying leads and
lags
34
3
Precedence diagramming method (PDM)

1) Used in Critical Path Methodology (CPM).
2) Shows activities in rectangle boxes linked by
arrows showing dependencies.
3) These boxes are called nodes.
4) Therefore, this technique is also termed as
activity-on-node (AON).
34 5) Most software programs use it these days.
7
Precedence diagramming method (PDM)

ACTIVITY DEPENDENCY
Start
D Start
A Start
D E G H C
F D, A
E D START END
G F, E
B F
H G A F B
C H
End C, B
34
8
FS network (AOA) PDM is defined by four types

Precludes those activities which of precedence relationships:
can be started when their
predecessors are partially complete. Finish to start (FS)
PDM Finish to finish (FF)
Allows for various situations of
interactivity relationships.
It also allows for TIME LAGS in Start to start (SS)
these relationships:
- Lag between two starts Start to finish (SF)
- Lag between two finishes, or
34 - Lag between a start and a finish
9
PDM
Finish to Start
Finish to start
The successor activity
A B can begin only when
predecessor activity
Furniture Employee completes.
move-in move-in This is the most
commonly used
35 relationship.
0
PDM
Finish to Finish precedence relationships
Finish to finish
A B The successor activity can
complete only when
predecessor completes.
Lay asphalt Paint
parking
35 lines
1
Start to Start PDM

A B Start to start
The successor can start
only when predecessor
Furniture Employee
starts.
move-in move-in
35
2
PDM
Start to Finish precedence relationships
A B Start to finish
The successor can
finish only when
Test new Phase-out predecessor starts.
System Old system This relationship is
35 rarely used.
3
PDM
dependencies such as Start
to start, finish to finish, and
start to finish have not been
implemented consistently.
Therefore, if you use them on

your project management
35 software, they can result in
4 unexpected outcomes.
Schedule Network
TOOLS &
templates
TECHNIQUES SIMILAR networks from your past
Precedence projects can be used to expedite
diagramming preparing current project’s network
method (PDM)
Schedule network
MAY use it for the entire project or
templates for a portion of it. The companies
Dependency doing same type of projects over the
determination years have standardized the
Applying leads and
lags
networks based on their experience.
Portions of the such schedule
network diagrams are called
35 FRAGMENT NETWORK or
5 SUBNETWORK.
Schedule Network templates

When are Subnetwork templates especially useful?
Answer: When a project includes identical nearly identical
deliverables.
EXAMPLES
1) Coding program modules on a software project
2) Clinical trials on pharmaceutical project
35 3) Start-up phase of a development project
6 4) Floors on a high-rise building
1) Mandatory dependencies
TOOLS & (hard logic)
TECHNIQUES
determined by the type of work being
Precedence performed.
diagramming
method (PDM) offer physical limitations as the nature of
Schedule network work itself dictates the order of activities.
templates
Dependency
determination
In the Century Cotton Mills example,
Applying leads and
you can’t prime the walls until
lags scraping is done before.
In ECE Industries example, you can
not make control board until printed
35 circuit boards are populated and wave-
7 soldered.
TOOLS & 2) Discretionary dependencies (soft

TECHNIQUES logic, preferred logic, preferential logic)
Precedence
diagramming
method (PDM) DETERMINED by the project
Schedule network management team.
templates
THESE dependencies allow the activities
Dependency
determination
to happen in a preferred order because
Applying leads and of best practices in the application area.
lags
SOMETIMES, specific sequence is
desired due some unusual aspect of the
35 project, besides alternative sequences
8 being available.
3) External dependencies
TOOLS & are external to the project and
TECHNIQUES
depend on relationship between
Precedence
diagramming project activities and non-
method (PDM) project activities.
Schedule network
templates Examples
Dependency
determination 1) Testing schedule activity on a
Applying leads and
lags software project may depend
on delivery of hardware from
35 an outside source
9
3) External dependencies
TOOLS & are external to the project and
TECHNIQUES
depend on relationship between
Precedence
diagramming project activities and non-
method (PDM) project activities.
Schedule network
templates Examples
Dependency
determination 2) Governmental environmental
Applying leads and
lags forecasts may need to be
held before site preparation
36 on a construction project.
0
PROJECT Schedule
OUTPUTS NETWORK DIAGRAMS
Project Network Schematically show project
Diagrams activities along with their
Project documents dependencies
updates
May be drawn manually or on
computer, using PDM or ADM
May incorporate full project

details ,or just one or more
36 summary details- called
Hammocks.
4
Sequence Activities
PROJECT NETWORK DIAGRAMS
OUTPUTS A summary description of
Project Network sequencing approach accompanies
Diagrams them
Project documents
updates
Unusual sequences, if any, are
properly narrated
A network diagram is traditionally
known as PERT Chart, however
PERT (program evaluation and
review technique was a particular
type of network diagram using
36 weighted average.
5
Sequence Activities
Project document ACTIVITY LIST UPDATES
updated: While preparing network diagrams,
1) Activity list updates we may discover some instances
2) Activity attributes where certain activities must be
divided or refined in order to show
updates
3) Risk register correct logical dependencies.
updates
This leads to activity list updates to
36 include approved changes.
6
ACTIVITY attributes updates

Project document activity attributes are updated to
updated: Include:
1) Activity list updates 1) Defined logical relationships
2) Activity attributes
2) Associated leads and lags
updates
3) Risk register If approved change requests resulting from
updates activity sequencing affect the activity list,
then the related items in activity attributes
36 are also updated to include these approved
changes!
7
Risk register updates

Project document to document critical areas in the
updated: schedule like path of
1) Activity list updates convergence or divergence or
2) Activity attributes there may be more than one
updates critical paths!
3) Risk register
updates
36
8
WHAT TYPE
FOR EACH ELEMENT AT LOWEST LEVEL OF WBS OF PHYSICAL
RESOURCES
ARE
REQUIRED?
WHEN
ARE THEY
REQUIRED?
Estimate Activity Resources
IN WHAT
QUANTITIES?
TO PERFORM PROJECT ACTIVITIES
36
9 Closely coordinated with cost estimating!
Resources are a project’s most important assets.

The project managers are often
faced with the issue of limited resources
Management of resources is as
important as managing
37 time, cost, quality and scope
0
THE PROCESS OF DETERMINING
1. WHAT PHYSICAL RESOURCES (PEOPLE, EQUIPMENT, MATERIALS)

2. WHAT QUANTITY OF EACH RESOURCE (SHOULD BE USED)
3. WHEN THEY WOULD BE REQUIRED
TO COMPLETE PROJECT ACTIVITIES

37
3
Estimate Activity Durations
ESTIMATING FUNDAMENTALS?
You should have properly defined scope (WBS).
Many people do not take time to freeze complete

scope of work in the beginning and the scope keeps
getting defined till delivery of the product of the project!
You should have reliable Network Diagram

38 showing how project will flow from start to finish.
7
Estimate Activity
Durations
You should have full understanding of the capabilities of

both human and material resources you are going to use
for performing project activities.
38
9
You must be aware of all the potential risks that may
have negative or positive impact on your estimates. This
is a grey area in many organizations.
We seem to have enough time to do rework than to do it
right the first time. Risks are not fully identified in the
39 beginning. They are taken to be a way of life.
0
Who should provide inputs for estimates of
duration? In many organizations everybody seem to
offer them!
It is highly risky to accept them from just anybody.
They should be provided only by those people or the
group who are well conversant with the nature of the
39 concerned schedule activity.
2
ONLY the person or group (on the project team) who

is most knowledgeable about the particular activity
should develop or at least approve the estimate.
39
3
DURATION is the time required for completing an
activity. Estimating this duration is actually
approximating how many work periods (hours, days,
weeks, months), it will take.
In real life, while performing an activity, you have non-
work periods also, like Sundays and other holidays.
Your estimation should not ignore them. You need to
39 use both Project calendar and Schedule activity
5 resource calendar!
Using alternative work period calendar, almost all

scheduling software take care of this.
Total activity duration = work periods + non-work
periods.
39
6
Estimate Activity Durations process overview

Enterprise TECHNIQUES
environmental factors Expert judgment Activity duration
Organizational process Analogous estimates
assets estimating Project Document
Project scope statement Parametric updates
Activity list estimating
Activity attributes Three point
Activity Resource estimates
requirements Reserve analysis
Resource calendar
39
9
Estimate
Activity
Durations
Expert judgment
team members rely on their knowledge and
experience, but these estimates can be very
risky:
1) Many factors influence activity durations,
such as resource capability, resource
levels required/assigned, etc., that need to
be carefully considered.
2) May be subject to bias, not based on
scientific means.
40 3) Not based on documented data but simply
7 on recall.
“Estimate Activity Durations”
TOOLS & TECHNIQUES
Expert judgment
Therefore, expert judgment must be combined
with historical information and use as many
experts as possible.
Expert judgment, guided by historical information,
can provide:
1) Duration estimate or recommended maximum
activity durations from similar past projects.
2) Knowledge whether to combine methods of
40 estimating and how to reconcile differences.
8
TOOLS & TECHNIQUES
Analogous estimating
THE actual duration of a similar activity completed on
a previous project to determine the duration of same
type of activity on the current project.
USED only in early phases of the project (initiation)
when we don not have detailed information about the
project. Uses historical info and expert judgment!
When analogous estimating is most reliable?
• When previous projects activities are really similar, not
just apparently similar
• The people making this kind of estimate have
40 necessary expertise
9
TOOLS & TECHNIQUES
parametric estimating
Uses a statistical relationship between historical
data and other variables (square footage in
construction) to calculate an estimate for activity
parameters like cost, budget, and duration.
on a Design Project:
1) number of drawings X labor
hours per drawing
41 2) cable installation in meters X
1 labor hours per meter
TOOLS & TECHNIQUES
parametric estimating EXAMPLE

Total resource quantities are multiplied by labor hours
per unit of work.
Say, on a design project:
Number of drawings X Number of labor hours per
Drawing
On cable installation project:
Meters of cable X Number of labor hours per meter
41
3
Three-point estimates
Estimate Activity 1) Most likely: duration considering
Durations all resources with their
TOOLS & productivity, availability,
TECHNIQUES dependencies on their
participants, and interruptions.
2) Optimistic: best case of most
likely.
3) Pessimistic: worst case of most
41
likely.
5
TOOLS & TECHNIQUES
Three-point estimates
The concept originated with the Program Evaluation
and Review technique (PERT). PERT uses three
estimates to define an approximate range for activity
duration: Most Likely, Optimistic, and Pessimistic.
Then, calculates an EXPECTED (tE) activity
duration using a weighted average of three
estimates:
t E = tO + 4 tM + tP
41
6
6
Reserve analysis
Estimate Activity
an additional time (known as time
Durations buffer, reserve, or contingency)
TOOLS & added to the activity duration or
TECHNIQUES elsewhere in the schedule as
recognition of schedule risk:
1. A percentage of estimated activity
duration, a fixed number of work
periods, or
41 2. As developed by quantitative
7 schedule risk analysis (good)
Reserve analysis
Please remember!
Estimate
Activity A contingency reserve can be used
Durations completely or PARTIALLY , OR
LATER REDUCED OR
ELIMINATED as you progress and
get more precise information
about the project. Contingency
reserve is also documented with
41 other related data and
8 assumptions!!!
USING Reserve time (contingency)

TWO things prevail:
1. Parkinson's law
Work expends to the available time.
2. Student syndrome
Work is attended only when the deadline
41
dangles like Damocles’ sword over our
9 head.
USING Reserve time

(contingency)
Estimate
Activity HOW should the time buffers be
Durations used?
TOOLS & Use them too freely and too early
TECNIQUES and you have nothing left for later
when reserves might be critical.
Be too stingy and you stifle

progress, increase risk, and end
42 up with left over reserves that
0 might have to be put to better use.
USING Reserve time

(contingency)
Estimate
Activity HOW should the time
Durations buffers be used?
TOOLS &
TECNIQUES ANSWER
A guideline that must be adopted
for allocation of time reserves is
to set hard limits as to how much
to release in each period of the
42 project.
1
Estimate Activity duration estimates

Activity
Durations Activity duration estimates are
OUTPUTS quantitative assessments of the
likely number of work periods that
will be required to complete an
activity.
42
2
Develop Schedule
“THE KEY WORDS ARE START AND
FINISH DATES!”
Schedules show the timing for work elements
start and finish dates – and denote when events
and milestones take place.
Therefore, schedule development is the process
42 of determining start and finish dates for project
6 activities.
Develop Schedule Please remember this!

Schedule development is an iterative process
Requires that duration estimation and resource
estimates are reviewed and revised to create an
approved schedule
Continues throughout as:
1) project progresses,
2) project management plan changes, and
3) anticipated risk events occur or disappear as
42 new risks are identified Please remember this!
7
Schedule Development
But what if our start and end dates are unrealistic?
Well then, we will never finish

our project as scheduled
and
this by far is
the most common experience!
42
8
Develop Schedule
FREQUENT CAUSES OF PROJECT FAILURE

1. Scheduling and allocation of resources
are incorrect.
2. Assignments are not anticipated.
3. Resource skills and capabilities are
unknown.
42 4. Resources for back up are not available.
9
Project Time Management: Schedule Development
FREQUENT CAUSES OF PROJECT FAILURE

The problem emerges during planning and continues
through out the project:
Project staff are reassigned and turned over without
readjusting the schedule to allow for the lost time or
the learning curve.
Resource requirements are not anticipated and
scheduled, and resource issues are addressed only
as they occur.
43 There is generally no skill inventory indicating who
0 is available for the project.
Develop Schedule process overview

TOOLS & OUTPUTS
INPUTS TECHNIQUES
Organizational process Project schedule
assets Schedule network Schedule data
Project scope statement analysis Schedule baseline
Activity list Critical path method Schedule Data
Activity attributes Schedule compression Project Document
Project schedule What-if scenario Updates
network diagrams analysis
Activity resource Resource leveling
requirements Critical chain method
Resource Calendars Adjusting leads & lags
Activity duration Schedule Tool
estimates
Enterprise Environmental
43 Factors
1
Develop Schedule Schedule network analysis

TOOLS &
TECHNIQUES A technique to generate project
schedule.
Uses a schedule model and various
analytical techniques (CPM, CCM,
what-if-analysis, resource leveling) to
calculate early start and finish
dates, and scheduled start and
43 finish dates for uncompleted
9 portions of schedule activities.
Develop Schedule CPM

The Critical Path (CP)
In any project is the longest full path of activities
4 8 5 7 8
D E G H C
Start 6 7 5 End
A F B
D, E, G, H, C = 32 Weeks
A, F, B = 18 Weeks
Paths
44 D, F, B = 16 Weeks
D, F, G, H, C = 31 Weeks
6 A, F, G, H, C = 33 Weeks
PERT just need to know

Program Evaluation and Review
Technique (PERT)
PERT was developed for application in projects where there was
uncertainty in the nature and duration of the activities. It originated
in late 1950s during U.S. Navy’s Polaris Missile System program.
In complex Research and Development projects, there
are questions about the kind of research to be done,
how long it will take, what stages of development are
necessary, and how fast they can be completed- largely
because the nature of THE UNCERTAINITY about the
45 exact nature of the final outcomes.
2
PERT just need to know
PERT
Such projects are contracted as new developments unfold
and before problems in technology, materials, and processes
are identified and resolved.
Hence, the duration of the project is uncertain along with the

risk of overrun of target completion date.
So, PERT was developed as a solution to handling

uncertainties in estimating activity durations.
45 BY using three time estimates: Optimistic, Most likely, and
3 Pessimistic.
Understanding meaning of three time estimates:

OPTIMISTIC
is the minimum time an activity could take. It is a situation when
everything goes well. There is some hope of finishing earlier.
MOST LIKELY
is the normal time to complete the activity, and would occur most
frequently if the activity could be repeated.
PESSIMISTIC
is the maximum time an activity could take. The situation where
bad luck is encountered at every step.
The pessimistic time includes likely internal problems in
45 development or fabrication, but not environmental snags such as
5 fire, power shortages, bankruptcy, strikes, or natural disasters.
PERT: THREE TIME ESTIMATES

WHO GIVES THREE TMES ESTIMTES?
You get them from:
1. THE most knowledgeable people who know the
difficulties likely to occur and the potential variability in
time.
2. THE expert estimators
3. THOSE who will actually perform or manage the
activity.
45
6
PERT: THREE TIME ESTIMATES

Three time estimates are used to calculate the “expected time”
for each activity.
OPTIMISTIC = O
FORMULAS MOST LIKELY = M
1. EXPECTED TIME PESSIMISTIC =P
= O + 4M + P / 6
2. STANDARD DEVIATION of an activity duration (SD)
= (P – O) / 6
3. VARIABILITY IN THE ACTIVITY COMPLETION TIME (Activity Variance, V)
45 V = (P – O / 6 )^2
7
KEY:
PERT: THREE TIME ESTIMATES (0, M, P)
Exp. Time, V
ESTIMATING ACTIVITY DURATION

( 4, 11, 12 )
2 6
( 6, 15, 30 )
1 7 8
( 1, 4, 7 )
45 3 ( 3, 12, 21) 4 ( 3, 4, 5 ) 5
8
KEY:
PERT: THREE TIME ESTIMATES (0, M, P)
Exp. Time, V
ESTIMATING ACTIVITY DURATION

( 4, 11, 12 )
10, 1.78
2 6
( 6, 15, 30 )
16, 16.00
1 7 8
( 1, 4, 7 )
4, 1.00
45 3 ( 3, 12, 21) 4 ( 3, 4, 5 ) 5
9 12, 9.00 4, 0.11
PERT: points to remember
1. The higher the standard deviation for an activity,

the higher the risk.
2. Standard deviation measures the difference
between the pessimistic and optimistic times.
3. A greater spread between the two results in higher
standard deviation and therefore higher risk.
46 4. Hence, lower the standard deviation, lower the risk.
4
Develop Schedule Schedule compression

TOOLS & shorten project schedule without
TECHNIQUES changing the project scope, to meet
schedule constraints, imposed
dates, or other schedule objectives.
The techniques:
1. Crashing
2. Fast tracking
46
9

TOOLS & 1. Crashing
TECHNIQUES analysis of cost and schedule
tradeoffs to obtain greatest schedule
compression for least increase in
cost.
Crashing leads to adding more
resources to critical path activities
while maintaining scope.
It generally results in increased cost
and can not always promise a viable
47 alternative.
0

TOOLS & 2. Fast tracking
TECHNIQUES performing critical path activities in
parallel that are planned to be performed
in series.
Fast tracking trades of cost for time and
increases the risk of achieving the
shortened schedule. Often results in in
rework, increases risk, and needs
more attention to communications.
47
1
Duration compression example

HANDS-ON EXERCISE FOR STUDENTS
From data on two slides, please find out how much it will cost to crash the
schedule by 3 weeks!
Activities Dependencies Duration normal
A - 4
B A 6 THIS IS TO HELP
C A 2 YOU TO DRAW
D B 2 THE NETWORK
E C,B 7 AND FIND CP
F D,E 6
47 Slide 1
2
Duration compression example

HANDS-ON EXERCISE FOR STUDENTS
Data continues ( duration is in weeks, cost in rupees)
Activity Duration normal Crash duration Normal cost Crash cost Crash cost per week
A 4 2 10,000 14,000 2,000

B 6 5 30,000 42,500 12,500
C 2 1 8,000 9,500 1,500
D 2 1 12,000 18,000 6,000
E 7 5 40,000 52,000 6,000
F 6 3 20,000 29,000 3,000
47 Slide 2
3
“Develop Schedule”- Tools & Techniques
What-if scenario analysis

Calculating multiple project durations with
different set of activity assumptions with the use
of simulation techniques: Monte Carlo Analysis
(most common).
USES three time estimates like PERT but does

not use PERT formula.
Thus distribution of probable results is
determined for each activity and then utilized in
arriving at a distribution of probable results for
47 the whole project.
4
What-if scenario analysis

What-if Analysis
primarily used to understand the feasibility of
schedule under unfavorable conditions.
This method also helps in making contingency,
or response plans to tackle or lessen the effect
of adverse situations.
Here, different scenarios are made using
network logic, assuming instances like delay in
47 supply from an external source, new regulation,
5 etc.
Resource leveling
WE have a schedule of activities.
Now, it’s time to plug in resources
because :
Techniques like CPM and PERT did
not consider resource availability
and produced a preliminary early-
start schedule that needs more
resources during certain times than
available, or needs unmanageable
47 alterations in resource levels.
6
Resource leveling
WE have a schedule of activities.
Now, it’s time to plug in resources
because :
We will also have to adjust our
schedule if we find any resource
constraints to our schedule of
activities made so far using
mathematical analysis techniques.
47
7
Resource leveling
process of adjusting resource
utilization on your project to match
with real resource availability.
OFTEN INVOLVES:
Allocate scarce resources to critical
path activities first.
Move an activity in time to take
advantage of a period of under-
allocation elsewhere in the project.
47
8
Resource leveling
process of adjusting resource
utilization on your project to match
with real resource availability.
OFTEN INVOLVES:
Replace the resources that are not
over-allocated during the same
timeframe.
Increase the duration of an activity
while applying the same total effort.
47 Resource leveling generally extends
9 schedule. It can change CP.
Resource leveling
Other techniques in an event of
critical or limited resource
availability:
Utilization of extended hours
Productivity increase of resources
Fast tracking
Reverse resource allocation
Critical chain method modifies project
schedule to account for limited
48 resources.
0
Resource leveling
Some projects have can have a finite and critical
resource. In such cases, the resource is scheduled in
reverse from the project ending date. It is called
REVERSE RESOURCE ALLOCATION
SCHEDULING!
It may not result in an optimal project schedule.
48
1
Resource leveling
Resource leveling produces a
RESOURCE-LIMITED SCHEDULE, or
RESOURCE-CONSTRAINED SCHEDULE!
48
2
Critical chain method

Another network analysis technique
that modifies project schedule to
account for LIMITED RESOURCES.
Combines deterministic and
probabilistic approaches.
This method adds time buffers to
focus on planned activity durations.
48
3
THE STEPS: CRITICAL CHAIN METHOD

A) We find out CP making network diagram with non-
conservative estimates (taking required dependencies and
defined constraints as inputs).
B) Then, we enter resource availability and determine
resource-limited schedule. Resulting schedule often
has an changed CP.
C) Now we determine duration buffers and schedule
the planned activities TO THEIR LATEST POSSIBLE
START AND FINISH DATES.
D) Consequently, in lieu of managing the total float of
48 network paths, we focus on managing 1) the time
buffers, 2) the resources for schedule activities.
4
Applying leads and lags

Leads and lags are adjusted during
schedule network analysis to
develop a viable schedule.
This is particularly important as

improper use of leads and lags
distorts the schedule.
48
5
Scheduling Tool
Schedule data and information is
compiled into the schedule model
for the project.
We may use the schedule model
tool and its supporting data along
with manual methods or project
management software:
to perform schedule network
analysis for generating the project
48 schedule.
6
“Develop Schedule”- OUTPUTS
Project schedule
MAY be displayed in summary form for the whole project,
or in detailed form for various levels of WBS.
SCHEDULE FORMATS
1. Project network diagrams (display project
logic and critical path activities).
2. Bar charts or Gantt charts (depict activity
start and finish dates, estimated durations,
and occasionally dependencies).
48 3. Milestone charts (show start or finish of
7 major deliverables or key external interfaces).
Project Schedule FORMAT: Project network diagram WITH DATES

16 May 15 Jun 16 Jun 30 Jun
CODE UNIT
ENTRIES TEST
1 May 15 May
16 May 30 May 1 Jun 15 Jun 1 Jul 15 Jul
DESIGN CODE UNIT SYSTEM
UPDATE TEST TEST
16 May 23 May 24 May 30 May
CODE UNIT
QUERY TEST
16 May 15 Jun
48 WRITE
MANUAL
8
DETAILED SCHEDULE WITH LOGICAL RELATIONSHIPS

Activity Calendar Project Schedule Time Frame
Activity Description Units
identifier Period 1 Period 2 Period 3 Period 4 Period 5
1.1. MB Provide new product
Z deliverable- BEGIN 0
1.1.1 Work package 1- Develop comp 1 67 ss
1.1.1.D Design component 1 20
1.1.1. B Build Component 1 33
1.1.1.T TEST COMPONENT 1 14
1.1.1. M1 Component 1 – COMPLTED 0
1.1.2 Work package 2 – develop comp 2 53
1.1.2.D Design component 2 14
1.1.2.B Build component 2 28
1.1.2.T TEST COMPONENT 2 11
1.1.2M1 Component 2 – COMPLETED 0
1.1.3 Work package 3 – Integrate Comps 53
1.1.3.G Integrate component 1 & 2 14
1.1.3.T TEST INTEGRATED PRODUCT Z 32
1.1.3.P DELIVER PRODUCT Z 7
1.1.MF Provide New Product Z 0
deliverable- FINISHED
48 DATA DATE
9
Project Schedule FORMAT: Bar charts or Gantt charts
Activity A
Activity B
Activity C
Activity D
49 Jan Feb Mar Apr May Jun
0
Project Schedule FORMAT: Bar charts or Gantt charts
Calendar Project Schedule Time Frame

Activity Activity Description Units
1.1 Provide New Product Z

deliverable 120
1.1.1 Work Package 1 –
develop component 1 67
1.1.2 Work Package 2 –
develop component 2 53
1.1.3 Work Package 3 -
Integrate Components 53
Data date
49
1
Project Schedule FORMATS: Milestone charts
Calendar Project Schedule Time Frame

Activity Activity Description Units
1.1. MB Provide New Product Z

deliverable - BEGUN 0
1.1.1. M1 Component 1 - completed 0
1.1.2. M1 Component 2 - completed 0
1.1. MF Provide New Product Z

Deliverable - FINISHED 0
Data date
49
2
Schedule data
Supporting data for the project
schedule
Includes (at least)
Schedule milestones
Schedule activities
Activity attributes
All constraints and assumptions
49 Amount of additional data varies by
3 application area.
Schedule data
Supporting data for the project
schedule
Frequently supplied supporting
details:
Resource requirements by time period
as “Resource Histogram”
Alternative schedules (best case, worst
case, resource not leveled, resource
49 leveled, with/without imposed dates)
4 Schedule contingency reserves
Project Human Resource Management
HR HR
HR
HR
HR HR
49
8
HR
THE CHALLENGES
Most project managers have considerably more
responsibility than authority, so they need different
skills and approaches than traditional managers.
Stakeholders often have different needs and
perspectives, but project manager has to balance
them, and yet achieve project objectives.
Generally, project staff comes from various
functional areas and do not report to the project
49 manager, but he has to get work done by them.
9
HR
THE CHALLENGES
Project manger’s role is so central that without it
there would be no such thing as project
management. But he/she has to wear lot of different
hats, many at the same time. He/she has to be an
integrator, communicator, decision maker, motivator,
entrepreneur, and change agent.
The Project Manager has to make most effective use
of all project stakeholders- sponsor, customer,
functional managers, individual contributors, etc.
50 Look at his task!
0
HR
THE CHALLENGES
Managing people on projects involves:
Key General Management Skills, like leading,
communicating, negotiating, problem solving, and
influencing organization.
Dealing with individuals- delegating, motivating,
coaching, mentoring, etc.
Dealing with groups- team building, solving conflicts,
etc.
Administering the human resource function. May
also have the responsibility of HR redeployment and
50 release (depends on where they belong).
1
HR
THE CHALLENGES
The project manager and project team must know

administrative requirements to ascertain compliance,
even though HR Administration activities are not their
responsibility.
All this poses great managing problems for

the project manager and project team, and
they must understand things involved in
50 advance to address them properly.
3
HR
Consists of:
processes needed to organize and manage the project
team, the people who are assigned roles and
responsibilities for completing the project.
Apart from assigning roles, we must involve the team
members in planning and decision making. WHY?
Early involvement of team members ADDS
EXPERTISE DURING PLANNING PROCESSES
AND ALSO ENSURES COMMITMENENT!
50
4
HR
What’s the difference between project team

and project management team ?
Project team: All the project team members, including
project management team, the project manager and,
for some projects, project sponsor.
Project management team: A subset of project team.
The group is called core, executive, or leadership
team and is responsible for project management
activities like planning, controlling and closing.
50
5
HR
Develop Human
Project HR Management Resource Plan
Determines project roles, responsibilities, and reporting

relationships. Project roles can be assigned to persons
or groups, inside or outside the organization performing
the project.
The output is staffing management plan that describes:
1) How and when team members will be acquired
2) Criteria for releasing them
3) Training needs
4) Recognition & reward plans
5) Compliance considerations
50 6) Safety issues
7) Effect of staffing management plan on the organization
6
Develop Human Resource Plan process view

TECHNIQUES
Enterprise Human Resource Plan
environmental Organization charts
factors and position
Organizational descriptions
process Networking
assets Organizational
Activity Resource Theory
Requirements
50
7
HR
Project HR Management
Develop Human
Enterprise environmental
Resource Plan
INPUTS
factors
Definition of roles and responsibilities on the
project is evolved with an understanding of :
1) The ways that existing
organizations will be involved
2) How the technical disciplines will
interact with each other
3) How people currently will interact
50 with one another
8
HR
Develop Human Commonly occurring enterprise

Resource Plan environmental factors involving
INPUTS organizational culture and
structure
1) Organizational Interfaces
2) Technical Interfaces
3) Interpersonal Interfaces
4) Logistical
50 5) Political
9
HR
Develop Human Organizational interfaces

Resource Plan
INPUTS 1) which organizations /
departments will participate in
the project
2) what are present working
arrangements among them
3) what formal / informal
relationships prevail among
them (could be highly complex or
quite simple).
51
0
HR
Project interfaces
REAL LIFE SCENARIO
• DelhiMetro Project has engaged 38 contractors ( 33 Indian,

5 International) to work over several years. The reporting
relationships are pretty complex. Various technical disciplines
also interface.
• BSNL Voice Clarity Project at Greater Noida site was a simple

in-house project that did not offer such interface complexity.
51
1
HR
Develop Human Technical interfaces

Resource Plan
INPUTS 1) What are different technical
disciplines and specialties that
will be required to accomplish
the project
2) Are there various types of:
a) engineering approaches
b) software languages
c) equipments
THAT NEED TO BE COORDINATED!
51
2
HR
Develop Human
Technical interfaces
Resource Plan
INPUTS 3) Whether transitions from one
life cycle phase to another
pose unique challenges
TECHNICAL INTERFACES
EXIST BETWEEN
PHASES AS WELL AS WITHIN
PHASES
51
3
HR
Project interfaces
REAL LIFE SCENARIO
In L & T Cement Project, the site design made by civil

engineers needed to correspond with the superstructure
developed by structural experts.
In Honda- Siel Project, the fabrication design team passed
work results to construction team to begin plant
construction.
51
4
HR
Develop Human Interpersonal interfaces

Resource Plan 1) What types of formal and
INPUTS informal reporting relationships
obtain among the prospective
project team members
2) What are their superior-
subordinate relationships
3) What are their supplier-customer
relationships
4) What cultural and language
differences will impact working
relationships among them
5) What levels of mutual trust and
51 respect presently exists
5
HR
Develop Human Logistical

Resource Plan
INPUTS how much distance separates project
people and units
Are project people located in different:

1) buildings
2) time zones
3) countries
51
6
HR
Develop Human Political

Resource Plan
INPUTS 1) What are the individual goals and
agendas of Prospective project
stakeholders
2) Which groups and people posses

informal power in the areas
significant to the project
51 3) What informal alliances exist

7
HR
Develop Human In addition to these EEFs:

Resource Plan
INPUTS Constraints that limit flexibility of HR
Planning:
Organization structure
Collective bargaining agreements
Economic conditions
51
8
HR
Develop Human
ORGANIZATION STRUCTURE CONSTRAINTS
• If you work in a functional organization, you will face lot
of difficulties in acquiring resources from iron walls of
various functional departments.
• Here, the authority over resources lies with functional
managers. You are called project manager, but in fact
you just and an expeditor.
• You are more comfortable in strong matrix because you
51 have authority to direct and deploy resources for

9 project work.
HR
Develop Human
Resource Plan Collective bargaining
INPUTS
agreements
entered between the organizations and
labor/other employee groups detail
require certain roles and reporting
relationships.
Remember employee groups are

52 important stakeholders !
0
HR
Develop Human
Resource Plan
INPUTS
Economic conditions
Hiring, freezes, reduced training
funds, or lack of travel budget
are examples that can limit
staffing options. entered
between the organizations and
52
1
HR
Develop Human Organizational

Resource Plan
INPUTS
process assets
with the maturity of project
management methodology,
organizations have HR planning
experiences as ‘Lessons
Learned’ that helps HR planning
on our present project.
Templates and checklists save
time in the beginning and keep
52 us from missing important
2 responsibilities.
HR
Develop Human Organizational process

Resource Plan assets
INPUTS 1) Templates helps HR planning
and include:
i. Project organization charts
ii. Position descriptions
iii. Project performance
appraisals
iv. A standard conflict
52 management approach
3
HR
Develop Human Organizational process

Resource Plan assets
INPUTS 2) Checklists helps HR planning
and include:
i. Common project roles and
responsibilities
ii. Typical competencies
iii. Training programs
iv. Team ground rules
52 v. Compliance & safety issues
4 vi. Reward ideas
HR
Develop Human Activity Resource

Resource Plan Requirements
INPUTS
Provides activity resource
requirements and description of
other activities like quality
assurance, risk management
and procurement. For all this,
we need to do HR planning.
Initial requirements of people
and competencies are
52 elaborated and refined in HR
5 planning.
HR
Develop Human organization charts and

Resource Plan position
TOOLS & Mostly three types used to
TECHNIQUES document team member roles and
responsibilities:
1) Hierarchical
2) Matrix
3) Text-oriented
Objective: Each work package must have
52 an unambiguous owner and all team
member have clear roles and responsibilities!
6
HR
Organization chart
Project reporting relationships are
graphically displayed.
Depending on the project needs,
you can make it formal or
informal; broadly-detailed or
highly-detailed.
INR 2 billion Reliance Power Dadri
Project, has mind-boggling
organization chart for about 7000
people.
52
7
HR
Develop Human
OBS
Organization breakdown
Structure (OBS)
WBS shows how project deliverables
are broken down into work packages
and becomes one way to depict high-level
areas of responsibility. OBS looks similar
but arranged according to departments,
units, or teams: the project activities or
work packages listed under each
52 Department. This helps each operational
8 department to see its portion of OBS.
HR
Develop Human
RBS Resource breakdown Structure

Another hierarchical chart that breaks
down project by types of resources
Helps tracking project costs, aligned with

the organization’s accounting system
RBS of Delhi Metro Project shows all welders

(over 600) and welding machines (630) being
used in different areas of this massive even
though they are scattered in different branches
52 of Project OBS
9
HR
Develop Human
Sample RAM using RACI format

PERSON Vikas Rajiv Shasi Manas Mona Rahul RR.
PHASES
Excavation A I I I I R
Foundation I A R C C C
Frame I C A R I I
Walls and A R C C C C
ceilings
Interior R I C I I A
systems
53
R = responsible, A = accountable, C = consult, I = inform
0
HR
Text-oriented format
Text-oriented format
Role Team member responsibilities that
require detailed descriptions can be
written here in outline form:
Responsibilities
Responsibilities, authority,
Competencies, qualifications
This format is also called:
Position Descriptions and Role-
Authority Responsibility-Authority forms.
Make great templates if updated throughout
53 current project!
2
HR
Develop Human
Resource Plan
Other sections of project
INPUTS management plan
We consider team member
responsibilities detailed in other sections
of the project management plan:
1) Risk register lists risk owners
2) Communication management plan lists
people responsible for communication
activities
3) Quality plan lists people responsible for
quality assurance and quality control
53 activities
3
HR
Develop Human
Resource Plan
Networking
For effectiveness of staffing management
INPUTS plan options, we must understand
political and interpersonal factors that
may impact them. So, we need to use
networking, such as:
1) Proactive correspondence
2) Luncheon meetings
3) Informal conversations
4) Trade conferences
Networking pays from start of the project till
53 its completion!
4
HR
Develop Human
Resource Plan Organization theory (OB)
INPUTS Informs us on the ways people,
teams and organizations behave.
We must use proven principles to
shorten the time needed to arrive
at outputs of HR planning.
It makes planning more effective.
1) Goal-setting
2) Group Dynamics
53
5
HR
Develop Human Resource Plan- OUTPUTS
Human Resource Plan includes:-

1) Role and responsibility assignments
Role: portion of project for which a
person is accountable
Example Project Roles:
business analyst, civil engineer,
testing coordinator
Role clarity is vital for project success:
- authority
- responsibilities
- boundaries
53
6
HR
Role and responsibility

assignments
Authority:
- right to apply project resources
- make decisions
- sign approvals
Clarity about authority is necessary for
project success.
Examples of decisions requiring Clear
Authority:
- quality acceptance
53 - how to respond to project
variances
7
HR
Role and responsibility assignments

Responsibility:
the work team member is expected to
perform to complete project activities
53
8
HR
Role and responsibility assignments

Competency:
Skill and capacity needed to accomplish project
activities.
Project performance will be adversely affected if
team members do not have necessary
competencies.
Must identify mismatches and make up through:
53 training, hiring, schedule changes, or scope
changes.
9
HR
2) Project organization chart
Graphic display of project team member

and their reporting relationships.
We have already discussed it.
54
0
HR
3) Staffing management plan

Describes how and when HR requirements will be
met.
Updated regularly during the project to ONGOING
PROJECT TEAM ACQUISITION AND
DEVELOPEMNT.
Made as per the project needs:
- may be detailed or broad
- may be formal or informal
54
Subsidiary part of the project management plan
1
HR
Staffing management plan

Contents:
1) Staff acquisition: many questions need to be answered
when planning acquisition of team members:
Will they come from within the organization or outside?
Will they need to work at a central location or distant ones?
What costs are entailed with each level of expertise required?
How much help HR depart will extend to project management
team?
54
2
HR

Contents:
2) Timetable: necessary time frames
they will be used, plus when
recruitment should begin.
One tool: Resource Histogram: bar chart
showing number of hours that a person,
department, or whole project team will be
54 required each week or month during the
3 project.
HR

Contents:
Resource Histogram: may include a
horizontal line maximum number of hours
available from a particular resource.
If bars extend beyond the available resource
hours, we need to use resource leveling
54 (adding more resources or extending
4 schedule).
HR
Sample Resource Histogram
90
80
Staff hours
70
60
50
40
30
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
54
Resource Usage Staff hours
5
HR

Contents:
3) Release criteria: determining method and
timing. Benefits project and team members.
Special Attention should be paid to releasing
persons or groups when their work completes.
Benefits of proper reassignment procedures:

1. Lowers costs by reducing the tendency to make work to
fill the time between present and the next assignments
54 2. Boosts morale by eliminating uncertainty about future
6 employment
HR

Contents:
4) Training needs: if training members assigned
are not expected to have necessary
competencies, we need to develop a training
plan as part of the project and also help
them obtain certifications.
54
7
HR

Contents:
5) Recognition & rewards: Clear criteria and
planned system to encourage and reinforce
DESIRED BEHAVIORS. Must be based on
activities and performance under one’s control.
Example: If someone is to be rewarded for
meeting cost objectives, then he/she must be
given authority on matters that affect
54
expenses.
8
HR

Contents:
5) Recognition & rewards: Such a with defined
timeframes ensures that recognition doe take
place and not ignored!
Given as part of the Develop Project Team
process.
54
9
HR

Contents:
6) Compliance: strategies for complying with
applicable government regulations, union
contracts, and other HR policies.
7) Safety: policies and procedures to protect
team members from hazards. Include in Risk
Register also.
55
0
Project Planning continues!
Project
Procurement Management
55
1
Project Procurement Management
CONTRACT
Contract: Ushers a legal relationship between Buyer

and seller.
It obligates the seller to provide the contracted item,
and it obligates the buyer to pay for it.
Hence, contract is a legal document and must be
prepared by the buyer with due care. It is subject to
remedy in the courts.
55 Contract comes into force only after it is accepted
and signed by both the parties.
8
CONTRACT
Contract: Ushers a legal relationship between Buyer

and seller. It includes:
SOW of the contracted item (CSOW)
Terms and conditions.
Seller’s proposal
Seller’s marketing literature, and
Any other documentation buyer is relying upon to
55 establish what the seller is to perform or provide.
9
CONTRACT
Contract: is Also calledQ

An agreement
Subcontract, or
Purchase order
Any other documentation buyer is relying upon to
establish what the seller is to perform or provide.
56
2
CONTRACT
Contract: A seller can Also be calledQ

Contractor, vendor, service provider, supplier, or
subcontractor,
A buyer can Also be calledQ
Client, acquiring organization, customer, acquiring
organization, service requester, purchaser,
government agency, prime contractor, contractor.
56
3
CONTRACT
Contract: A complex project may involve multiple

contracts or subcontracts!
Each contract life cycle may complete during any
phase of the project life cycle.
Subcontract, or
Purchase order
56 Any other documentation buyer is relying upon to
establish what the seller is to perform or provide.
4
Plan Purchases and Acquisitions
Determines
WHICH project needs WHICH project needs

Can be accomplished by the Can be best met by
project team during Project acquiring products/
Execution services outside the
project organization
56 identified DURING PROJECT DEFINITION EFFORT

9
Plan Procurements
Plan Procurements
Considers
1. “whether to procure?” (make or buy!)
2. “how to procure?” (procurement methods)
3. “what to procure?” (description of products)
4. “how much to procure?” (quantity)
5. “when to procure?” (procurement schedule)
6. potential subcontractors (prospective sellers)
57
(Consideration of potential sellers gives some degree of
0 influence/ control to the buyer over contracting decisions)
Plan Procurements: PROCESS OVERVIEW

TECHNIQUES
Enterprise Procurement
environmental factors Make-or-buy Management Plan
Organizational process Analysis Procurement Statements
assets Expert Judgment of work
Scope baseline Contract Types Make-or-buy decisions
Requirements (Selection) Procurement documents
documentation Source selection criteria
Teaming agreements (evaluation criteria)
Risk register Change requests
Risk-related contract
decisions
Activity Resource
requirements
Project schedule
57 Activity cost estimates
Cost baseline
3
We consider following too while planning procurements:

- risk register
- Risk related contract decisions
- Activity resource requirements
- Project schedule
- Activity cost estimates
- Cost performance baseline
58
2
Plan procurements
Make-or-buy analysis
TOOLS & General management technique
TECHNIQUES used to decide whether a particular
Make-or-buy product/service can be produced
Analysis (COST EFFECTIVELY) by the project
Expert Judgment
Contract Type
team or need to be purchased
Selection
Budget constraints are factored in
Considers both direct and indirect
costs
58 example
3
Plan procurements
TOOLS & example
TECHNIQUES Buy-side of analysis includes actual
Make-or-buy
Analysis 1) Direct out-of-pocket costs to
Expert Judgment
Contract Type procure the product, and
Selection 2) Indirect costs of managing the
purchasing process.
58
4
Plan procurements
TOOLS &
TECHNIQUES
Reflects
Make-or-buy 1) Perspective of the performing
Analysis organization, and
Expert Judgment 2) Immediate project needs
Contract Type
Selection
3) Long range strategy
58 examples
5
example
TOOLS & Buying an item (say material
TECHNIQUES
handling equipments or computers)
Make-or-buy
or leasing it may or may be cost
Analysis
Expert Judgment effective on the current project.
Contract Type
Selection
But, if performing organization
Requires it on regular basis and
buys the item, then the part of the
purchase cost apportioned to the
58 project may be less than the leasing
6 cost. (Margin Analysis helps allocate
such costs)
Expert judgement
TOOLS & What expert judgment is needed?
TECHNIQUES 1) Expert technical judgment to access
Make-or-buy inputs and outputs from this process.
Analysis
2) Expert purchasing judgment to develop
Expert
Judgment or modify evaluation criteria.
Contract Type 3) Expert legal judgment to make terms and
Selection conditions for non-standard procurement
items.
4) Such technical, business and legal
judgment can also be applied to other
58 aspects of procurement management
8 processes.
Contract type selection

TOOLS &
TECHNIQUES
Make-or-buy Different contract types suit different
Analysis types of purchases
Expert
Judgment
Contract Type Degree of risk assessed by both buyer
Selection and seller decides the choice of a
Contract Type
58 Common contract types

9

TOOLS & Common Contract Types:
TECHNIQUES
Make-or-buy
Analysis 1) fixed-price or lump-sum
Expert
Judgment
Contract Type 2) Cost-reimbursable
Selection a) cost-plus-fee: CPF, or cost-plus-
percentage of cost: CPPC
b) cost-plus-fixed-fee: CPFF
c) cost-plus-incentive-fee: CPIF
59
3) time and material ( T & M )
0

TOOLS &
TECHNIQUES
Make-or-buy
fixed-price or lump-sum
Analysis 1) Fixed total price for a well-defined
Expert product
Judgment
Contract Type 2) Buyer at least cost risk as seller bears
Selection the risk of cost escalation
3) Seller most concerned about scope
4) Suitable if buyer can fully describe
scope
59 5) Also incentives for fixed-price
1 contracts Simplest form: Purchase Order

TOOLS &
TECHNIQUES
Make-or-buy
fixed-price or lump-sum
Analysis a) fixed-price
Expert Example Contract INR 5,500,00
Judgment
Contract Type
Selection Fixed-price-incentive-fee (FPIF)
Example
Contract INR 5,500,000
Incentive INR 50,000 for every month
59 for finishing contracted work early
2

TOOLS & Cost-reimbursable
TECHNIQUES
Make-or-buy 1) Buyer reimburses seller’s actual costs
Analysis
Expert
plus a fee as seller’s profit.
Judgment 2) Buyer at highest cost risk as complete
Contract Type scope is not clear and total contracted
Selection costs are unknown.
3) Such contracts are awarded when
buyers can only describe what they
need and not what to do.
59
4

TOOLS &
TECHNIQUES
Make-or-buy
Cost-reimbursable
Analysis include incentive clauses for:
Expert
Judgment
IF THE SELLER MEETS OR EXCEEDS
Contract Type
SELECTED OBJECTIVES (schedule/cost),
Selection
THE SELLER GETS
AN INCENTIVE / BONUS
PAYMENT
59
6

TOOLS &
TECHNIQUES Cost-reimbursable
Make-or-buy
Analysis
Expert b) Cost-plus-fixed-fee: CPFF (most common)
Judgment 1) Buyer reimburses all allowable costs and
Contract Type paid a fee ( profit) fixed at a specific rupee
Selection amount (as a percentage of estimated
project cost)
2) Fee is fixed: does not vary with cost
59 3) Advantage: keeps seller’s costs in line.

8 WHY?

TOOLS &
TECHNIQUES Cost-reimbursable
Make-or-buy
b) Cost-plus-fixed-fee: CPFF (most common)
Analysis
Expert
Judgment because a cost overrun will not get the
Contract Type seller any extra fee (profit)
Selection
Example:
Contract = cost plus INR 500,000 (fixed)
59
9

Cost-reimbursable
1) Buyer reimburses all allowable costs + an
agreed-upon fee + an incentive bonus,
based on achieving certain performance
objective levels
EXAMPLE
Contract = Costs + fee, say INR 500,000 + INR 50,000 (for
60 every month the project is earlier than agreed)
0

Cost-reimbursable
2) In some cases, if the final costs are less
than expected costs, then both buyer and
seller benefit from the savings, base on
mutually agreed sharing formula
HANDS-ON EXERCISE
60
1
HANDS-ON EXERCISE : COST REIMBURSABLE CASE 2
DATA
1) Estimate cost INR 630,000, fee INR 75,000
2) If seller performs better, savings sharing:

80% buyer, 20% seller
3) Actual costs INR 6,00,000
4) Find out final fee and final price
60
2
HANDS-ON EXERCISE : COST REIMBURSABLE CASE 2
SOLUTION
Step 1
Fee = INR 630,000 – INR 600,000
= INR 30,000 x 20%
= INR 6,000
Final fee = INR 75,000 target fee + INR 6,000
= INR 77,000
Step 2
Final price = INR 600,000 + 77,000
= INR 677,000
60
3
Plan purchases &

Acquisitions
time and material ( T & M )
1) Hybrid of cost-reimbursable and fixed-
price
- Cost-reimbursable portion: open ended
- Fixed-price portion : unit rates are
fixed
2) Full value and exact quantity of items to be
delivered are not defined by buyer, but unit
rate of the category of item is are set by
60 mutual agreement
4 3) Buyer has medium amount of cost risk

time and material ( T & M )
Example
Contract = INR 1000 per hour or material at cost

or INR 300 per linear foot of tiles
60
5
Procurement management
OUTPUTS
plan
Procurement Describes
Management Plan how the procurement processes shall
Procurement
Statements of work be managed from developing procurement
Make-or-buy decisions documents through contract closure
Procurement
documents Includes
Source Selection
1) Contract types for use
Criteria
Change requests 2) Who will make independent estimates
and if they are required as evaluation
60 criteria
7
Make-or-buy decisions
Are obvious output.
May also include: Decisions to buy
insurance policies, performance
bond contracts! WHY? Answer: To
address some of the identified risks.
May be simple (short justification)
May be complex (iterative as subsequent
procurement activities may require a
61 different approach)
8
Procurement documents
used to request proposals from
prospective sellers
Common names for different types of

procurement documents:
• invitation for bid (IFB), request for bid

(RFB)
• request for proposal (RFP)
• request for quotation (RFQ)
• invitation for negotiation,
61 • tender notice
• contactor initial response
9
Evaluation criteria
Source Developed and used to rate or
score Proposals
selection
1) FOR THE ITEMS READILY
criteria AVAILABLE FROM MANY
SELLERS
Evaluation Criteria limited to
purchase price. Purchase Price
means landed cost
62 ( cost of the item and ancillary
4 expenses, such as freight)
Evaluation criteria
Developed and used to rate or score
Source Proposals
2) FOR A MORE COMPLEX PRODUCT
selection OR SERVICE
1) Understanding of need
criteria 2) Overall life cycle cost
3) Technical capability
4) Management approach
5) Financial capacity
6) Production capacity and interest
7) Business size and type
8) References
62 9) Intellectual property rights
10) Proprietary rights
5
Project Quality Management
62
7
Processes include all activities of the

performing organization that determine:
Quality policy, objectives, and
responsibilities to ensure project satisfies
the needs for which it has been
undertaken
62
8
Implements the quality management system

through:
Quality policy, procedures and processes of Plan
Quality, Perform Quality Assurance, and
Perform Quality Control- WITH CONTINUOUS
PROCESS IMPROVEMENT ACTIVITIES
performed throughout!
62
9
Quality is delivering to satisfy the customer.
A quality-oriented project has two aims:
1) To produce the correct end-item
2) To produce it in the correct way
63
0
THE CONCEPT
Quality is “the totality of characteristics of an entity
that bear on its ability to satisfy stated or implied
needs”.
IN OTHER WORDS, it is the degree to which a set
of inherent characteristics fulfill requirements.
Stated or implied needs, therefore, needs guide us
in developing project requirements.
63
6
THE CONCEPT
In project context, the key issue is converting
IMPLIED NEEDS INTO REQUIREMENTS- through
project scope management.
Quality therefore is conformance to requirements and
fitness for use.
This means you must produce what you promised to
63 produce and the product must be fit for use for which it
is meant.
7
THE CONCEPT
Quality must be planned in,

not inspected in.
63
8
THE CONCEPT
No GOLD PLATING. No customer extras,
no extra functionality, no higher quality
components, no extra scope of work or
better performance.
63
9
THE CONCEPT
Low quality is a problem,

low grade is not.
64
0
THE CONCEPT
GRADE (a category assigned to product/services)
- same functional use
- different technical characteristics
Example: a software product
HIGH QUALITY: readable manual, no defects
64 LOW GRADE : limited features
1
THE CONCEPT
Example: a software product
LOW QUALITY : poorly organized manual, many defects
HIGH GRADE : numerous features
THE PROJECT MANAGEMENMT TEAM MUST
DETERMINE AND DELIVER THE REQUIRED
64 LEVELS OF BOTH: QUALITY, and GRADE.
2
THE CONCEPT
PROJECT QUALITY MANAGEMENT IS COMPATIBLE WITH:
ISO 9000 and 10000 series
Proprietary quality management approaches (Deming,
Juran, Crosby, and others)
Nonproprietary approaches (TQM, Six Sigma, FMEA,
Design Reviews, Voice of Customer, COQ,
64 and Kaizen (continuous improvement)
6
THE CONCEPT
Hence, Modern quality management complements
Project Quality Management. Both advocate the same
tenets:
Customer satisfaction
Prevention over inspection
64 Management responsibility
7 Continuous improvement
THE CONCEPT
CUSTOMER SATISFACTION
understanding, evaluating, defining, and managing
expectations to fulfill customer requirements
THIS NECESSITATES A COMBINATION OF
1) Conformance to requirements
64 the project MUST produce what it said it would
8
THE CONCEPT
CUSTOMER SATISFACTION
2) Fitness for use
the product/service MUST satisfy the REAL NEEDS
64
9
THE CONCEPT
PREVENTION OVER INSPECTION
THE COST OF PREVENTING MISTAKES IS
NORMALLY “MUCH LESS” THAN THE COST
OF CORRECTING THEM (DEMONSTRATED BY
INSPECTION)
65
0
THE CONCEPT
MANAGEMENT RESPONSIBILITY
success needs participation of all team members, but
it stays with the management to provide resources
required to succeed.
Deming suggested: as much as 85% of the cost of
65 quality is management problem
1
THE CONCEPT
Deming suggested: once the quality issue has hit the
floor, or the worker level, the workers have little control
65
2
THE CONCEPT REAL LIFE SCENARIO
A company had bid on the an Express Highway Project
and won it.
To earn more profits, management decided to use
inferior-grade asphalt. The workers laying the asphalt
65 have little control over its quality.
3
THE CONCEPT
CONTINUOUS IMPROVEMENT
PDCA (plan-do-check-act) Cycle, defined by Shewhart
and modified by Deming, forms the basis for quality
improvement
65
4
THE CONCEPT
CONTINUOUS IMPROVEMENT
Quality improvement initiatives (TQM, SIX SIGMA)
can contribute in improving the quality of both:
1) Project management, and
2) The project’s product
65 Process improvement models (Malcolm Baldrige,
5 CMM, CMMI) also provide useful guidance.
THE CONCEPT
Key difference project team MUST know:
Projects are too temporary to reap the rewards of
investments in product quality improvement (mainly
defection prevention, appraisal), hence performing
organization must bear these investments!
65
6
Plan Quality process overview

TECHNIQUES
Enterprise Quality Management
Environmental Cost-benefit Plan
factors Analysis Quality metrics
Organizational process Benchmarking Quality Checklists
assets Design of Process improvement
Scope Baseline Experiments plan
Stakeholder Register. Cost of quality Project document
Cost Performance Baseline. (COQ) updates
Schedule Baseline Additional quality
Risk Register planning tools
Control Charts
Statistical sampling
Flowcharting
Proprietary Quality
Management
65 Methodologies
7
Plan Quality - INPUTS
1. Enterprise environmental Factors

provide:
- Standards and regulations
- Rules, standards, and guidelines specific
to the application area, and
- Working/ operating conditions of the
project/ product which may affect quality.
65
8
2. Organizational process assets

provide:
a) Quality policy, procedures and guidelines,
b) historical database, and
c) lessons learned.
65
9
2. Organizational process assets

Quality policy sets the intended direction of a
performing organization with regard to quality.
Quality policy of the performing organization for
their products can be adopted “as is” for use on
the project. BUT if there is no quality policy or
multiple organizations are involved, then the
project management team should develop a
quality policy for the project with knowledge of the
66
stakeholders.
0
3. Scope Baseline.
- A. Scope statement: contains the product
description, major project deliverables, and
acceptance criteria. The product description contains
details of technical issues and other concerns that
can affect quality planning. The definition of
acceptance criteria can significantly increase or
decrease project costs and quality costs. Satisfying
acceptance criteria means the needs of the customer
have been met.
- B. WBS: identifies the deliverables, the work
66 packages and the control accounts used to measure
project performance.
1
Scope Baseline.
- C. WBS dictionary: defines technical information for
WBS elements and must be considered during quality
planning.
4. Cost Performance baseline
documents the accepted time phase used to measure
cost performance. Quality must be achieved within
this time-phased budget.
5. Risk Register
provides threats and opportunities that may impact
66 quality requirements
2
6. Schedule Baseline
accepted schedule within which quality parameters
should be achieved.
7. Stakeholder Register
identifies stakeholders with a particular interest , or
impact on quality.
66
3
Plan Quality – Tools & Techniques
1. Cost/Benefit analysis
analyze cost-benefits tradeoffs
Primary benefit of meeting Quality
Requirements:
BENEFITS
1. LESS REWORK
2. HIGHER PRODUCTIVITY
3. LOWER COSTS
4. INCREASED STAKEHOLDER
66 SATISFACTION
4
1. Cost/ Benefit analysis

PRIMARY COST OF PROJECT
QUALITY MANAGEMENT ACTIVITIES
COSTS
TRAINING
SURVEYS
STUDIES
APPRAISAL
DESIGN REVIEW
66
5
2. Benchmarking
Purpose: To generate ideas for improvements and
offer standards to measure performance.
Method: We compare the actual or planned project’s
practices to those of other projects.
Sources: These projects can be:
a) within performing organization or outside
b) Within same application area or in another
66 Application area
6
3. Design of experiments (DOE)

An analytical technique that identifies the elements,
or variables, that will have impact on overall project
outcomes.
Generally, this method is used concerning the product
of the project but can also be applied to project
management processes.
This process designs and sets up experiments to
determine the ideal solution for a problem utilizing a
66 Limited number of sample cases.
7
4. Cost of quality
Consists of all our costs on efforts to:
Achieve product / service quality
Ensure conformance to requirements
Work resulting from nonconformance to requirements
66
8
Plan Quality – Tools & TechniquesPlan Quality
Cost of quality
THREE TYPES OF COSTS

ARE INCURRED:
1. Prevention costs
2. Appraisal costs
3. Failure costs
66
9
Cost of quality
Prevention costs
Prevention means keeping defects
out of the hands of the customer.
These costs are associated with
producing a product/service without
defects in order to satisfy Customer
Requirements.
Example: quality planning, training,
design review, contractor and
supplier costs
67
0
Cost of quality
Appraisal costs
Expended to examine the product or
process and make certain that the
Requirements are being met.
Examples: inspection, testing
67
1
Cost of quality
Failure costs
Are the costs incurred when things
don’t happen according to the plan:
1) Internal failure costs
result when customer requirements
are not satisfied and the product
is still in the control of the
performing organization
Example: corrective action, rework,
scraping, and downtime
67
2
Cost of quality
Failure costs
Are the costs incurred when things
don’t happen according to the plan:
2) External failure costs
result when the product has
reached the customer and they
determine that their requirements
have not been met.
Example: inspections at customer’s site
returns, and customer service
costs
67
3 COST OF POOR QUALITY: FAILURE COSTS!
5. Flow charting
It is any diagram that shows logical steps that must be
performed to accomplish an objective.
It displays how individual elements of a System
interrelate.
In the case of quality management,two types of flow
charts are used:
Cause-and-effect diagrams (Ishikawa diagrams,
67 fishbone diagrams) show relationship between various
4 factors (causes) to potential problems/effects.
5. Flow charting
Cause-and-effect diagrams (Ishikawa
diagrams, fishbone diagrams) show
relationship between various factors (causes)
to potential problems/effects.
Process flow diagram
67
5
EXAMPLE:CAUSE-AND-EFFECT DIAGRAM
MACHINE PROCESS MATERIAL TIME
MAJOR
DEFECT
PROJECT
ENERGY ENVIRONMENT MEASUREMENT
TEAM
67
6
System or process flow

charts
Show the logical steps needed to
accomplish an objective and
interrelation of individual elements
of a system.
These charts assist project team
to assess the type and area where
quality problems may appear.
67
7
EXAMPLE: Process Flowchart
N = No 1. Project Request
Y = Yes
2. Compliance Copy
3. Develop Artwork
4. Artwork Approved N
Y 5. Change Control for Specs
6. Artwork out for Proofs

8. Package development
Review / Approval 7. Vendors make Proofs
N
Y N 10. Approved Proofs back to Vendor

9. QA Review /
Approval
11. SPSECS SIGNED
67 Y (PACKAGE AND QA)
8 12. ORDER MATERIAL

6. Control Charts
Used to determine whether or not process is stable
or has predictable performance.
Upper and lower specification i are set based on the
requirements, reflecting minimum and maximum
values allowed.
There may be penalties for crossing these limits.
For repeatable processes are generally +/- 3 sigma!
67
9
6. Control Charts
A process is out of control when data points cross
the limits or seven consecutive points are above or
below the mean, although inside the control limits.
Control charts are used to monitor various types of
variable outputs.
68
0
6. Control Charts
Generally, control charts are used to track

repetitive activities for producing manufactured
lots, but may also be used to monitor schedule
and cost variances, volume and frequency of
scope changes, other management results to
determine if management processes are in
control!
68
1
7. Statistical Sampling:-
It involves choosing part of a population of
interest for inspection.
Sample frequency and sizes should be
determined during the plan quality process
so the cost of quality will include the no. of
tests, expected scrap, etc.
68
2
8. Additional quality planning tools:

• Brainstorming
• Flowcharting
• Force field analysis
• Matrix diagrams
• Nominal group techniques
• Affinity diagrams
68 • Prioritization techniques
3
9. Proprietary Quality Management

Methodologies
- Six Sigma
- Lean Six Sigma
- Quality Function Deployment.
- CMMI, etc
68
4
Plan Quality – OUTPUTS
Quality management plan

describes how the project management
team will implement its quality policy
Details the project quality system that
Includes:
Responsibilities
Procedures
Processes, and
resources
PROJECT
QUALITY
68 REQUIRED TO IMPLEMENT
MANAGEMENT
6
Quality management plan

PROVIDES input to overall project plan
Addresses QC, QA, and CONTINUOUS

IMPROVEMENT for the project
68
7
Plan Quality - OUTPUTS
Quality Checklists
It is a component specific, structured tool used to
verify a set of required steps has been performed.
A ‘do this’ list, or ‘have you done this’ monitor!
These lists ascertain consistency in frequently
performed tasks.
Most organizations have it, or you can get one from
commercial service providers or professional
associations.
69
1
Process improvement plan

details steps for analyzing processes to identify activities
which enhance their value.
1) Process boundaries defining purpose, start and
end of processes, inputs, outputs, data required,
process owner, and process stakeholder.
2) Process configuration, a flowchart of process to
help analysis with identified interfaces.
3) Process metrics to maintain control over status of
processes.
4) Targets for improved performance, guides
process improvement activities.
69
2
Project Communications Management
COMMUNICATIONS
69
3
Communication
THE CONCEPT
1. Proper communication is one of the critical success factors.
2. There should be a structured approach to it.
3. Communication needs of all project stakeholders must be
identified in advance:
What they need to be communicated
How they are going to be communicated
When they will to be communicated
69
4
Communication
THE CONCEPT
4. This is a very proactive approach and must be adopted on all
projects to ensure smooth working, amicable relations, and
project success.
5. This is particularly more important due the fact that most
project managers do not know what this is, nor do they
realize that individual needs of each stakeholder must be
69 addressed.
5
Communication
Hence, project communications management employs

processes needed “to ensure timely and appropriate”:
1) generation
2) collection
3) distribution
4) storage
5) retrieval, and
6) ultimate disposition
69 OF PROJECT INFORMATION
6
Communication
project communications management provides:

CRITICAL LINKS AMONG PEOPLE AND INFORMATION THAT ARE
REQUIRED FOR SUCCESSFUL COMMUNICATIONS
Project managers spend about 90% time communicating:

1) With the project team
2) With the customer
3) With the functional managers
69 4) With the sponsor
7 5) With other stakeholders
Communication

MASTERING THE ART OF COMMUNICATION IS VERY IMPORTANT
IT INVOLVES:
1) Sender-receiver models
2) Choice of media
3) Writing style
4) Presentation techniques
5) Meeting management techniques
69
8
Communication

Sender-receiver model
MESSAGE FLOW
R
BRIDGE OF MEANING
S E
E C
N DEVELOP ENCODE TRANSMIT RECEIVE DECODE ACCEPT USE E
D IDEA I
E 1 2 3 4 5 6 7 V
R E
R
BRRIERS
MESSAGE FLOW
69
9 8 (FEEDBACK)
Communication

COMMUNICATION BARRIERS
1) Personal barriers:
- human emotions
- values
- poor listening habits
- differences in education, culture, sex,
socioeconomic status
2) Physical barriers:
- distance
- noise
70 - walls
- static that interferes with electronic
0 messages
Communication

Choice of media (depends on situation)
- in writing or orally
- informal memo or formal report
- face-to-face or email / video conference
Writing style:
- active or passive voice
- sentence structure
70 - word choice
1
Communication

Presentation techniques
- body language ( non-verbal 55%)
- visual aids
Meeting management techniques:

- set a time limit and keep it
- schedule and agenda in advance
- stick to agenda
- chair and lead with set rules
- assign deliverables and time limits for resulting tasks
70 - bring right people together
2
Communication

A BREAK DOWN IN COMMUNICATIONS
HAS
ADVERSE CONSEQUENCE ON THE PROJECT
THE PROJECT MANAGERS

MUST MASTER
THE ART OF COMMUNICATING
WITH
70 THE STAKEHOLDRES
3
Communication
Plan Communications
the process of
Determining the project stakeholders
information needs and defining a communication
approach.
Identifying information needs of stakeholders
and deciding suitable means of meeting them
70 are key factors for project success!
4
Communication
Plan Communications
This process responds to the information and

communication needs of the stakeholders.
EXAMPLE:
- Who needs what information
- When they will need it
- How it will be given
70 - By whom
5
Communication
Plan Communications process overview

TECHNIQUES
Stakeholder register Communications
Stakeholder Communication Management
management strategy requirements Plan
Enterprise Analysis Project Document
Environmental Communications Updates
Factors technology
Organizational Process Communication
Assets Models
Communication
Methods
70
6
Communication
Plan Communications – Tools & Techniques
Communication requirements analysis

Whom do we need to send Project Information?
• Customer
• Sponsor
• Senior management
• Functional managers
• Team members
• Other project managers
• Regulatory authorities
• Media
• Society
• Outside specific interest groups, organizations
71 • Any other stakeholder stakeholders
0
Communication
Communication requirements analysis

What do we need to communicate on our project?
1) Status
2) Performance baselines
3) Achievements (major milestones, intermediate milestones,
etc.)
4) Problems
5) Changes to scope, schedule, cost, etc.
6) Adherence to standards and regulations
7) New risks uncovered
8) Team members performance
71 9) Project phase deliverable’s acceptance, project’s product
1 acceptance, etc.
Communication
THROUGH
Status reports
Progress reports
Trend report
Forecasting report
Variance report
Earned value analysis reports
Compliance to regulations, and so on
71
2
Communication
Communication channels
The project manager needs to consider the number of potential
communication channels to grasp the complexity of a project’s
Communications: ( 20 PEOPLE, 190 CHANNEL! )
2 PEOPLE, 1 CHANNEL
4 PEOPLE, 6 CHANNEL
5 PEOPLE, 10 CHANNEL
71 Communication channels = n (n-1) / 2

3 PEOPLE, 3 CHANNEL
3 n = number of stakeholders

PMP Session Day 2

Uploaded by

Copyright:

Available Formats

You might also like

PMP Session Day 2

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PMP Session Day 2

Uploaded by

Copyright:

Available Formats

Project Time Management

Provide a basis for estimating, scheduling,

Define Activities process overview

INPUTS TOOLS & OUTPUTS

Define Activities DECOMPOSITION

The WBS, WBS dictionary, and activity list

Involving team members can lead to better

an activity list or a portion of an activity list

Templates can help identify typical

Define Activities Rolling wave planning

Define Activities Rolling wave planning

Define Activities Expert judgment

Includes the activity identifier and a scope of

Define Activities Milestone list

33 Milestones are used in

IDENTIFYING AND DOCUMENTING

The schedule activities can be

Feeling uneasy about sequencing the whole host of

Sequence Activities process overview

INPUTS TOOLS & OUTPUTS

Precedence diagramming method (PDM)

Precedence diagramming method (PDM)

FS network (AOA) PDM is defined by four types

Start to Start PDM

Therefore, if you use them on

Schedule Network templates

TOOLS & 2) Discretionary dependencies (soft

May incorporate full project

ACTIVITY attributes updates

Risk register updates

Estimate Activity Resources

Resources are a project’s most important assets.

Estimate Activity Resources

THE PROCESS OF DETERMINING

1. WHAT PHYSICAL RESOURCES (PEOPLE, EQUIPMENT, MATERIALS)

TO COMPLETE PROJECT ACTIVITIES

Estimate Activity Durations

Many people do not take time to freeze complete

You should have reliable Network Diagram

You should have full understanding of the capabilities of

Estimate Activity Durations

Estimate Activity Durations

Estimate Activity Durations

ONLY the person or group (on the project team) who

Using alternative work period calendar, almost all

Estimate Activity Durations process overview

INPUTS TOOLS & OUTPUTS

parametric estimating EXAMPLE

USING Reserve time (contingency)

USING Reserve time

Be too stingy and you stifle

USING Reserve time

Estimate Activity duration estimates

Develop Schedule Please remember this!

But what if our start and end dates are unrealistic?

Well then, we will never finish

FREQUENT CAUSES OF PROJECT FAILURE

FREQUENT CAUSES OF PROJECT FAILURE

Develop Schedule process overview