1.

Introduction
2.Quality management
3.Communication and stakeholder management
4.Risk management
 PM Framework
• What is a Project?
• A project is a temporary endeavor undertaken to create a unique product, service, or result.
• Temporary ( definite beginning and definite end)
• Most projects are undertaken to create a lasting outcome.
• Unique
• ( different location, different design, different circumstances, different contractors etc.)
• Progressive Elaboration
• Continuously improving and detailing a plan as more detailed and specific information and more
accurate estimates become available.
• Projects drive change: Projects drive change in organizations. From a business perspective, a project is aimed at moving an
organization from current state to future state in order to achieve a specific objective.
• Projects enable business value creation
 Business Value
 Business value is defined as :
• the net quantifiable benefit derived from a business endeavor.
• The benefit may be tangible, intangible, or both.
•
• Examples of tangible elements include monetary assets, fixtures, stockholder
equity, and utility.
•
• Examples of intangible elements include good will, brand recognition, public
benefit, and trademarks. Depending on the organization.
 ?What is Project Management

The application of knowledge, skills, tools and techniques to project

.activities to meet the project requirements
The Triple Constraints
Time

Scope
Cost
Quality

Risk
Resources
 The project life cycle

a project life cycle is a collection of generally

sequential and sometimes overlapping project
phases whose name and number are determined
by the management and control needs of the
organization or organizations involved in the
project, the nature of the project itself, and its
area of application.
 Project Management Process Groups
Mapped to the Plan-Do-Check-Act Cycle
Stakeholders
RELATIONSHIP OF PROJECT, PROGRAM, PORTFOLIO, AND
OPERATIONS MANAGEMENT
.Projects are often utilized as a means of achieving an organization’s strategic plan

Program management
A program is defined as a group of related projects managed in a coordinated way to obtain

.benefits and control not available from managing them individually

Portfolio management
 A portfolio is a collection of projects or programs and other work management of that work to meet strategic business objectives.

operations management
Operations are an organizational function performing the ongoing execution of activities that produce the
same product or provide a repetitive service.
 Projects and Operations
operation
Projects
Ongoing and Temporary
repetitive Unique output
Similar outputs
Resources on
Permanent
resources temporary
upon-need basis
Projects and Operations
Planned, executed & Controlled series of tasks and
activities
Constrained by limited resources
Produce output/product
 Project management office (PMO)
 A project management office (PMO) is an organizational structure that
standardizes the project-related governance processes and facilitates the
sharing of resources, methodologies, tools, and techniques. The
responsibilities of a PMO can range from providing project
management support functions to the direct management of one or more
projects
 Supportive. provide a consultative role to projects by supplying
templates, best practices, training, access to information, and lessons
learned from other projects. This type of PMO serves as a project
repository. The degree of control provided by the PMO is low.

 controlling. provide support and require compliance through

various means. The degree of control provided by the PMO is
moderate. Compliance may involve use of specific templates, forms,
and tools.
 directive. take control of the projects by directly managing the
projects. Project managers are assigned by and report to the PMO. The
degree of control provided by the PMO is high.
PROJECT BUSINESS CASE
 The project business case: is a documented
economic feasibility study used to establish the
validity of the benefits of a selected component
lacking sufficient definition and that is used as
a basis for the authorization of further project
management activities.
 A business case may include but is not limited
to documenting
the following:
1. Business needs(Identification of stakeholders
and the scope, what is prompting the need for
action..)
2. Analysis of the situation(capabilities needed
versus existing capabilities of the organization,
known risks, root cause..,)
3. Recommendation: Analysis
results ,Constraints, assumptions, risks,
Success measures, Milestones, Roles and
responsibilities.
 ENTERPRISE ENVIRONMENTAL
FACTORS(EEF)
 conditions, not under the control of the project team,
that influence, constrain, or direct the project.
 The following EEFs are internal to the organization:
1. Organizational culture, structure, and governance.
2. Infrastructure.
3. Information technology software.
4. Resource availability.
5. Employee capability.
 The following EEFs are external to the organization.
1. Marketplace conditions
2. Legal restrictions
3. Commercial databases
4. Financial considerations
5. Physical environmental elements
 Organizational process assets (OPAs) are
the plans, processes, policies, procedures,
and knowledge bases specific to and used
by the performing organization. They may
be grouped into two categories:

1. Processes, policies, and procedures; and

2. Organizational knowledge bases.

 Organizational Influences
• Since projects are typically part of an organization that is larger than the project, the project is
influenced by a number of aspects of the larger organizational structure:

• Organizational Systems
• Are management systems in place to support project needs efficiently and effectively.
• Organizational Cultures and Styles
• Most organizations have developed unique and describable cultures that often have a direct
influence on the project.
• Organizational Structure
• The structure of the performing organization often constrains the availability of resources.
• Role of the PMO in Organizational Structures
• PMO can exist in any organizational structures but are most likely to be found in projectized or
matrix organizations.
 Functional Organization
C.E.
O
Functional Functional Functional Functional
Manager Manager Manager Manager

Project coordination Staff Staff Staff

Staff

Staff Staff Staff Staff

These different departments are sometimes referred to as “silos”. This means the system is
vertical and disconnected. The communication flows through the department heads to the top
management
all authority (i.e. budget allocation, resource allocation, decision making, etc.) stays with the
functional manager. Usually, the position of the project manager does not exist in this type
of organization structure. Even if this position exists, the role of the project manager will be
very limited and he will need permission from the functional manager to fulfil his
requirements. The project manager may have the title of a coordinator or an expediter
 Weak Matrix Organization
C.E.O

Functional Functional Functional Functional

Manager Manager Manager Manager

Staff Staff Staff

Staff

Staff Staff Staff Staff

Project
coordination

In weak matrix organizations, the project manager will have limited power and authority.
He will have a part-time role and no administrative staff will report to him. His role will
be more like a coordinator or an expediter. Here, the functional manager controls the
 Balanced Matrix Organization

C.E.O

Functional Functional Functional Functional

Manager Manager Manager Manager

Staff Staff Staff

Staff

Project Staff Staff Staff

manager

Project coordination

power and authority are shared between the functional managers and the project managers. Although the
project manager has a full-time role, he will have a part time or otherwise limited project management
administrative staff under him. In this type of structure, both managers control the project’s budget.
 Strong Matrix Organization

C.E.O

Functional Functional Functional Manager of Project

Manager Manager Manager Managers

Staff Project
Staff
Staff manager

Staff Staff Staff

Project manager

most of the power and authority is held by the project manager. The project manager has a full-time role, has
a full-time project management administrative staff under him, and controls the project budget. The
strong matrix structure has a lot of the characteristics of a projectized organization
 Projectized Organization
C.E.O

Project Project Project Project

Manager Manager Manager Manager

Staff Staff Staff

Staff
Project coordination

Staff Staff Staff Staff

•The project manager has full power and authority over resources to be utilized in the project. He controls the budget, resources,
and work assignments.
•The project manager has full-time team members working under his control who directly report him.
•When the project is completed the team is disbanded. Team members and all other resources are released.
▰ DEFINITION OF A PROJECT
MANAGER: The project manager is the
person assigned by the performing
organization to lead the team that is
responsible for achieving the project
objectives.
▰ THE PROJECT MANAGER’S SPHERE
OF INFLUENCE Project managers fulfill
numerous roles within their sphere of
influence. These roles reflect the project
manager’s capabilities and are
representative of the value and
contributions of the project management
profession.
24
PROJECT MANAGER COMPETENCES

project managers need to have a balance of these three skill sets.

Project Quality Management
 Quality vs Grade
Quality
“the degree to which a set of inherent
characteristics fulfill requirements” (ISO 9000
[18].).

Grade
Grade is a category assigned to products or services
having the same functional use but different
technical characteristics

(While a quality level that fails to meet quality requirements

is always a problem, a low-grade product may not be a
problem.)
Customer satisfaction
Modern Quality Management
( conformance to requirements & fitness for use )

Prevention over inspection

(quality is planned, designed, and built in not inspected in)

Continuous improvement
( plan-do-check-act ) cycle

Management responsibility
( responsibility of management to provide the resources needed to succeed)

Mutually beneficial partnership with suppliers.

An organization and its suppliers are interdependent. Relationships based on partnership and cooperation
with the supplier are more beneficial to the organization and to the suppliers than traditional supplier
management. The organization should prefer long-term relationships over short-term gains.
A mutually beneficial relationship enhances the ability for both the organization and the suppliers to create
value for each other,
 Quality Management Gurus

CROSBY, Philip JURAN, J. Moses

DEMING, W. Edward  Performance standard is “Zero defect “ Fitness for use
Continuous improvement PDCA (Plan–Do–  Cost of quality is measured by cost of Technical / Statistical focus
Check–Act) non-conformance Juran’s Trilogy :
 Conformance to requirements Quality improvement, Quality planning and
Top down support ( top management  Quality comes from Prevention Quality Control
support )
 Just In Time (JIT)

 This is an approach to decrease the amount of inventory

that a company carries, thereby decreasing the investment
in inventory.
 A JIT philosophy directs a company to improve quality
(forces attention to quality) because extra material is not
available.
 Inventory costs money, thus, an increase in quality that lets
you use JIT can save your company money
 A methodology for improving cycle times and quality through elimination of
waste (muda).
 Differentiates between:
 Value-Added (VA) Activity:
 Any activity that increases the market form or function of the service.
(things customers are willing to pay for)
 Non-Value Added (NVA) Activity:
 Any activity that does not add market form of function or is not necessary.
(these activities should be eliminated, reduced or integrated)
 Lean is Customer/Market Driven
 Value Stream map is “core” of Lean analysis
 Lean=eliminating NVA Activities
(waste)
 Overproduction  Waiting Waste
 Making more, or earlier, or faster  Unbalanced workload, misuse of
than needed automation, process setup
 Inventory Waste  People Waste
 Any supply more than one-piece  Not using staff to their potential
flow  Motion Waste
 Defects  Any movement that does not add
 Quality improvement controls value
 Processing  Transportation Waste
 Effort that adds no value to the  Moving parts, materials (or patients)
service or product all over the facility

33
Project Communication & Stakeholder Management
36
We all can recognize an elephant .. “when we see one”, can’t
we?
38
And the elephant (project) became
…
Communication activities have many dimensions, including but not limited to:
Internal. Focus on stakeholders within the project and within the organization.
External. such as customers, vendors, other projects, organizations, government, the public, and
environmental advocates.
Formal. Reports, formal meetings (both regular and ad hoc), meeting agendas and minutes,
stakeholder briefings, and presentations.
Informal General communications activities using emails, social media, websites, and informal ad
hoc discussions
Hierarchical focus The position of the stakeholder or group with respect to the project team will affect the format
and content of the message, in the following ways:
Upward. Senior management stakeholders.
Downward. The team and others who will contribute to the work of the project.
Horizontal. Peers of the project manager or team.

Official Annual reports; reports to regulators or government bodies.

Unofficial. Communications that focus on establishing and maintaining the profile and recognition of the
project and building strong relationships between the project team and its stakeholders using
flexible and often informal means.

Written and oral. Verbal (words and voice inflections) and nonverbal (body language and actions), social media
and websites, media releases.
Sample interactive communication model.
 This model also describes communication as a process consisting of two parties, the sender and receiver, but
recognizes the need to ensure that the message has been understood.

 Key components of interactive communication model include:

 Encode ,Transmit message, Decode
 Acknowledge. Upon receipt of a message, the receiver may signal (acknowledge) receipt of the message, but this does not
necessarily mean agreement with or comprehension of the message—merely that it has been received.
 Feedback/response. When the received message has been decoded and understood, the receiver encodes thoughts and
ideas into a message and then transmits this message to the original sender. If the sender perceives that the feedback
matches the original message, the communication has been successful. In communication between people, feedback can
be achieved through active listening,
 the 5Cs of written communications

1. Correct grammar and spelling

2. Concise expression and elimination of excess
words
3. Clear purpose and expression directed to the
needs of the reader
4. Coherent logical flow of ideas
5. Controlling flow of words and ideas

No. of communication channels

=N*(N-1)/2
Meeting management
The following steps should be used
for meeting planning:

1. Prepare and distribute the agenda stating

the objectives of the meeting.
2. Ensure that the meetings start and finish
at the published time.
3. Ensure the appropriate participants are
invited and attend.
4. Stay on topic.
5. Manage expectations, issues, and
conflicts during the meeting.
6. Record all actions and those who have
been allocated the responsibility for
completing the action.
DATA REPRESENTATION

 displays gaps between current and desired engagement levels of individual stakeholders, it can be
further analyzed in this process to identify additional communication requirements (beyond the regular
reports) as a method to close any engagement level gaps.
DATA REPRESENTATION:
Stakeholder mapping and representation is
a method of categorizing stakeholders using
various methods such as:
Power/interest grid, power/influence
grid, or impact/influence grid.
These classification models are useful for
small projects or for projects with simple
relationships between stakeholders and
the project

1. level of authority (power),

2. level of concern about the project’s
outcomes (interest),
3. ability to influence the outcomes of
the project (influence),
4. or ability to cause changes to the
project’s planning or execution
(impact)
Project Risk Management
 Project Risk

• Individual project
+
Opportunit Risk
y Uncertain event or condition
that, if occurs, has an effect
Cause
(impact) on at any of the project
Impac objectives (Time, Cost, Quality,
Event
t Scope)
Impact could be +ve or –ve
)Condition(

-
Threat Overall Project Risk
The effect of uncertainty on
the project as a whole, Arising
 Risk
 Can never be totally eliminated.

 Greatest in the beginning of a

project.
 Risks will continue to emerge
during the lifetime of the
project, so Project Risk
Management processes should
be conducted iteratively.
 Should be addressed proactively
and consistently throughout the
project

49
 Project Risk Management
 Is the systematic process of Identifying, Analyzing, and
Responding to project risks

 Maximizing the probability and consequences of positive

events (Opportunities) to Project Objectives

AND
 Minimizing the probability and consequences of adverse
events (Threats) to Project Objectives
Organizations’ Risk Appetite
 Risk Categories

Provide a means for grouping individual project risks. A common way to structure
risk categories is with a risk breakdown structure (RBS), which is a hierarchical
representation of potential sources of risk.
 Definition of Risk Probability and Impact
+/– IMPACT ON PROJECT OBJECTIVES
SCALE PROBABILITY
TIME COST QUALITY

Very significant impact on overall

Very High >70% >6 months >$5M functionality

High 51-70% 3-6 months $1M-$5M Significant impact on overall

functionality

Medium 31-50% 1-3 months $501K-$1M Some impact in key functional areas

Low 11-30% 1-4 weeks $100K-$500K Minor impact on overall functionality

Very Low 1-10% 1 week <$100K Minor impact on secondary functions

Definitions of risk probability and impact levels are specific to the project context and reflect the risk
appetite and thresholds of the organization and key stakeholders
negative for threats (delay, additional cost, and performance shortfall )
positive for opportunities (early delivery or under budget)
Probability Impact
Very Low Low Moderate High Very High
0.05 0.10 0.20 0.40 0.80

Very High .045 .09 .18 .36 .72

90%
>70%

.035 .07 .14 .28 .56

High 70%
51-70%

.025 .05 .10 .20 .40

Moderate 50%
31-50%

.015 .03 .06 .12 .24

Low 30%
11-30%

.01 .01 .02 .04 .08

Very Low
10 %
1-10%
 P & I Matrix
Probability Impact
Very Low Low Moderate High Very High

Very High

High

Moderate

Low

Very Low
Identify Risks

 Involves determining which risk

events might affect the project and
documenting their characteristics.
 Everyone should be involved in
risk identification
▰ Identify Risks is an iterative
process, since new individual
project risks may emerge as the
project progresses through its life
cycle and the level of overall
project risk will also change.
Brainstorming

•Objective is to obtain a
LIST of project risks.
•Done by TEAM with
outside experts.
•Use RBS as a guideline
•An expert facilitator leads
the discussions.
 Risk Register
           
impact        

R id O --T Risk Discerption owner potential response Prob. time cost quality Score Strategy tactic
fallback
plan
 the probability of worker
Site
R1   T falls and injured
Engineer 
call ambulance  

                         

                         

                         

                         

                         

                         

                         

                         
 Perform Qualitative Risk Analysis

 Method for prioritizing the

identified risks for further actions.
 The process of assessing the
impact and likelihood of
identified risks.
 Should be revised during the
project life cycle.
 The key benefit of this process is
that it focuses efforts on high-
priority risks.
Probability Impact
Very Low Low Moderate High Very High

Very High R-4, R11, R13,

R-1, R-22 R-2, R-18 R-16

High

R-17 R-3, R-5 R-20

Moderate

R-6, R-12, R-15, R-7 R-9

Low R19

Very Low
 Risk Register
           
impact        

R id
O --T Risk Discerption owner potential response Prob. time cost quality Score Strategy tactic
fallback
plan
 the probability of worker
Site
R1   T falls and injured
Engineer 
call ambulance    M  VL H  L  M.H 

                         

                         

                         

                         

Watch list
                         

                         

                         

                         
 Perform Risk Quantitative Analysis
 It is the process of numerically assessing the probability and impact of each

risk and determining the extent of the overall project risk.

 This process is not required for every project, but where it is used, it is

performed throughout the project.

 Quantitative risk analysis usually requires specialized risk

software and expertise in the development and interpretation of

risk models
 Outputs of this process:

 Amount of contingency reserve needed to provide a specified level of

confidence.

 list includes those individual project risks that pose the greatest threat or

present the greatest opportunity to the project, as indicated by sensitivity

analysis

 Recommended risk responses

 60,000 , 80%

qu ality
Go od
51k

Bad Q
31k uality
i ne, 15,000 , 20%
h
ac
M 0K
w 2
Main Ne
Decision
????
up ac

18k
gr hin
M

40,000 , 60%
ad e
e ,1

lity
ex 0 K

qua
ist

o d
Go
in
g

28k Bad Q
uality
10,000 , 40%
 Plan Risk Response

 The process of developing

options and determining
actions to enhance
opportunities & reduce
threats to the projects
objectives.
 This process also allocates
resources and inserts
activities into project
documents and the project
management plan as needed
 Response strategies for threats

 Escalate
 Avoid eliminate the threat entirely,
reducing its probability of
occurrence to zero
 Transfer shifting ownership of a
threat to a third party to manage
the risk and to bear the impact if
the threat occurs
 Mitigate to reduce the probability
of occurrence and/or impact of a
threat
 accept Risk acceptance
acknowledges the existence of a
threat, but no proactive action is
taken
Response Strategies for Opportunities
Escalae
Exploit
increasing the
probability of
occurrence to
100%.

Share Sharing involves

transferring ownership of an
opportunity to a third party so
that it shares some of the
benefit if the opportunity occurs

Enhance The
enhance strategy is used
to increase the probability
and/or impact of an
opportunity

Accept
 Risk Register
           
impact        

R id
O --T
Risk
Discerption
owner
potential
response
Prob. time cost quality Score Strategy tactic
fallback
plan
 the probability of sit engineer
Safety
worker falls and Site take him to
R1   T injured Engineer 
call ambulance    M  VL H  L  M.H   Mitigate procedures
hospital
 
 
                         
                         
                         
                         
                         

                         

                         

ce ce ive
an
                         

Ac ss
pt
Pa
Watch list
 Monitor Risks
 Is the process of monitoring the implementation of
agreed-upon risk response plans, It involves tracking
identified risk , identifying new risks , evaluating risk
response plans, and monitoring their effectiveness.
 Monitor Risks process uses performance
 information generated during project execution to
determine if:
 Implemented risk responses are effective,
 Level of overall project risk has changed,
 Status of identified individual project risks has changed,
 New individual project risks have arisen,
 Risk management approach is still appropriate,
 Project assumptions are still valid,
 Risk management policies and procedures are being
followed,
 Contingency reserves for cost or schedule require
modification, and
 Project strategy is still valid.