Complete PMP Course Presentation 2016

Project Management. Professional

(PMP) [email protected] What's Up: +966558411183 Linked In: https://sa.linkedin.com/in/nasseribrahim

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Welcome  Introducing  Lecturer

 Attendance

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Project Management Institute (PMI) • Not-for-profit professional association. primary goal is to advance the practice, science and profession of project management. • Recognized since 1969 by working PMs – Nearly 550,000 members. • Headquartered in Pennsylvania USA. 130 * 550,000 = 71,500,000$/Year Not for Profit 3

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PMI Certification Programs • PMI® Certification Programs include PMP, PgMP, PMI-SP (Scheduling Professional) PMI-RMP (Risk Mgmt Professional). • Examination is offered via computer, worldwide. • Individual Benefits:  Professional/ personal recognition.

 Expedites professional advancement.  Create job growth/ opportunities within organizations.  Provides framework for standardized project management requirements. 5

PMI Certification Materials • To assist PMI candidates for completing the PMI certification exam administered by the Project Management Institute. • Content is based on “A Guide To The Project Management Body Of Knowledge” Fifth Edition (PMBOK), and others sources.

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The Exam • Exam Does test of: • Your knowledge of PMI’s processes. • Your understanding of the terms that are used. • Your ability to apply the processes in a variety of situations. • Your ability to apply key formulas to scheduling, costing, estimating, and other problems. • Your understanding of professional responsibility as it applies to project management.

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Continue The Exam • It is 200 pass/fail questions. • To pass, you have to answer 106 graded questions correctly out off 175. That translates to 61% *.

• The other 25 questions are considered experimental questions that PMI is evaluating for use on future exams. However, they do not count toward your grade and you will not know which questions count and which don’t.

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Requirements to Apply • To be eligible for PMP Certification, you will need to demonstrate that you meet certain minimum criteria as below:  With a College Diploma  A university Degree,  4,500 hours of project management experience,  35 hours of project management education.

 Without a College Diploma  A high school diploma or equivalent,  7,500 hours of project management experience,  35 hours of project management education.

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Validity • The credential is valid for 3 Years. ‘

• Candidates must recertify every 3 years by earning 60 Professional Development Units (PDUs).

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PMP Pay Scale

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Ethics in Project Management • For this reason, PMI offers guides for practitioners like the PMI Code of Ethics and Professional Conduct, and an avenue to report and resolve matters involving unethical behavior through the PMI Ethics Review Committee. • In-order to earn the PMP certification, applicants must agree to the PMP code of professional conduct.

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End

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Project Management Framework

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What Is A Project? • Project  A Project is a temporary endeavour undertaken to create a unique product, service or result.  End is reached when the objectives have been achieved, or when the project is terminated because it’s objectives will not or cannot be met, or when the need for the project no longer exists.  Projects require project management. 17

Project Management • What is a Project Management?  Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.  47 project management processes which logically categorized into five Process Groups.  It is both a science and an art.

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Portfolio, Program, and Projects • Portfolio refers to a collection of projects, programs, sub portfolios, and operations managed as a group to achieve strategic objectives. • program is a group of related subprogram, projects, and operations where doing them together to provides benefit or efficiency. Again What is Project, Project Management? 19

Project Management Office  A project management office (PMO) is a management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques.  A PMO may be delegated the authority to act as an integral stakeholder and a key decision maker.

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Types of PMO: Supportive. Supportive PMOs provide a consultative role to projects by supplying templates, best practices, training, access to information and lessons learned from other projects.

controlling. Controlling PMOs provide support and require compliance through various means. Compliance may involve adopting project management frameworks or methodologies, using specific templates, forms and tools, or conformance to governance. Directive. Directive PMOs take control of the projects by directly managing the projects. The degree of control provided by the PMO is high. 21

Operations  Are organizational function performing the ongoing execution of activities that produce the same product or provide a repetitive service.  Are permanent endeavors to produce repetitive outputs, with resources assigned to do basically the same set of tasks according to the standards institutionalized in a product life cycle.

 Operations require business process management or operations management.

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Projects Vs. Operational Work • Operations differ of: Are ongoing.

Produce repetitive products, services, or results. Operations work sustain the organization overtime.

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Role of the Project Manager • Leadership

• Team building

• Motivation

• Communication

• Influencing

• Decision making

• Political and cultural awareness • Negotiation • Conflict management

• Coaching

End

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Foundational Terms & Concepts

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Organizational influences on a Project Organizational cultures and Styles An organization’s culture and style affect how it conducts projects. Cultures and styles are known as cultural norms, which develop over time. Example: Shared visions, mission, beliefs, and Regulations, Policies, and reward systems;

Organizational communications Organizational communications capabilities have great influence on how projects are conducted.

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Organizational Process Assets  Organizational process assets are the plans,

processes, policies, procedures.  It include the organization’s knowledge bases such as lessons learned & historical info.

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Enterprise Environmental Factors  It may have a positive or negative influence on the outcome.  They are considered as inputs to most planning processes.

• Enterprise Environmental Factors include:  Organizational culture, structure, and processes.  Government regulations or industry standards.

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Organizational Structure • Organizational structure is EEF which affect the availability of resources and Influence how

projects are conducted . • Organizational structures range from functional to projectized, with a variety of matrix structures in between.

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Organizational Structure • Culture & Structure is EEF. so, a PM should understand the differences that may affect a project as it will have impact on the way the project is managed and even its ultimate success. • Three major types of organizations Structure 1. Functional Structure 2. Projectized Structure 3. Matrix Structure: Weak Matrix - Strong Matrix - Balanced Matrix

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Functional Organization

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Projectized Organization

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Weak Matrix Organization

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Balanced Matrix Organization

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Strong Matrix

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Organizational Structure • Project Manager’s Power

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Project Life Cycle a collection of generally sequential or overlapping project phases.

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Project Life Cycle Initiating

Planning

Monitoring & Controlling Executing

Closing

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Continue Project Life Cycle

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What is A Project Management Process? A package of inputs, tools and techniques, and outputs used together to do something on the project. There are 47 unique processes.

The output from process are often used as inputs into other processes.

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Essential Terms • Progressive Elaboration You don’t know all of the characteristics about a product or project when you begin. Instead, they may be revisited often and refined,

The characteristics of the product emerge over time, or “progressively”.

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Essential Terms • Baseline Baseline refers to the accepted and approved plans & their related documents. Baselines are prepared on triple constraints: Scope (Quality), Time, Cost.

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Essential Terms • Regulation Official document that provides guidelines that must be followed. Issued by government or another official organization. • Standard A document approved by a recognised body that provide a guidelines. It is not mandatory.

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Essential Terms • Policy Organization policy is an asset.  Gives guidance to your action as per local organization rule.  Save time later in the future by preventing you from doing something your company would frown upon. PMs should follow company policy.

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Essential Terms  Sellers. Sellers, also called vendors, suppliers, or contractors, are external companies that inter into a contractual agreement to provide components or services necessary for the project.

Business partners. Also external companies, but they have a special relationship with the organization. 47

Essential Terms • Project Coordinator. Weaker than a PM. Can't make overall project decisions. have some authority to reassign assign resources. Found in weak matrix or functional organization. • Project Expeditor . The weakest among all. Staff assistant with little or no formal authority. Do not have any authority of resources. Found in a functional organization.

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Essential Terms • The Triple Constraint

Scope

Quality

 Concept that scope, time, & cost are closely interrelated,  Expanded view of “triple” constrained could be represented as a hexagon.

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Stakeholders  Are persons or organizations who are actively involved in the project or whose interests may be positively or negatively affected by the performance or completion of the project.  The project management team must: - Identify both internal and external stakeholders.

- Determine stakeholders requirements and expectations.

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Continue Stakeholders

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So, we have  5 process groups,  10 knowledge areas,

47 project management processes,

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End

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‫• نشرت «عكاظ» بعدد الخميس ‪4/7/1436‬هـ تصريحا لرئيس الهيئة الوطنية لمكافحة الفساد «نزاهة» الدكتور‬ ‫خالد عبدالمحسن المحيسن كشف من خالله عن رصد ‪ 672‬مشروعا حكوميا متعثرا ومتأخرا بنسبة (‪ )%44‬من‬ ‫أصل ‪ 1526‬مشروعا وقفت عليها الهيئة‪ .‬كما يكشف معاليه عن أمر خطير بنص يقول‪« :‬الفتا إلى وجود شبهة‬ ‫فساد ومحسوبية»‪.‬وبالتأكيد أن الفساد والمحسوبية هما األخطر من بين أسباب تعثر المشاريع والتي عددها‬ ‫معالي الدكتور وهي‪« :‬غياب التخطيط‪ ،‬عدم وضوح الرؤية أثناء مرحلة الدراسات والتصميم‪ ،‬عدم االعتناء‬ ‫بإعداد وثائق المشروع قبل طرحها للمنافسة‪ ،‬القصور في دراسة طبيعة المشروع من حيث الموقع ومتطلبات‬ ‫التنفيذ‪ ،‬عدم االهتمام باستخراج التراخيص وتقارير التربة الالزمة للمشروع‪ ،‬عدم وضوح المتطلبات الالزمة لمن‬ ‫يتقدم للمنافسة‪ ،‬قصر المدة الزمنية لتقدير وتسعير قيمة المشروع من قبل المتنافسين‪ ،‬التركيز على التحليل‬ ‫المالي للعطاءات دون النظر للتحليل الفني وينتج عن ذلك الترسية على صاحب العطاء األقل دون مراعاة‬ ‫اإلمكانات الفنية‪ ،‬الترسية على مقاولين لديهم مشاريع أخرى متعثرة وتفوق إمكاناتهم المالية والفنية‪ ،‬استخدام‬

‫نفس كراسة الشروط والمواصفات ألكثر من مشروع رغم االختالفات بينها‪ ،‬ضعف (كفاءة جهاز اإلشراف‬ ‫الفني) التابع للجهة الحكومية‪ ،‬عدم مشاركة فروع الجهات الحكومية في المتابعة واإلشراف‪ ،‬ضعف كفاءة‬ ‫أعضاء لجان االستالم االبتدائي والنهائي للمشاريع‪ ،‬عدم وجود مكتب إلدارة المشروع ‪.PMO‬‬

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Project Management Processes

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PMI Framework • Framework Organized into:  10 knowledge areas: Integration, Scope, Time, Cost, Quality, HR, Communication, Risk, Procurement and Stakeholder Management.  5 process groups: Initiating, Planning, Executing , Monitoring and Controlling, and Closing. And

 47 Project Management Processes

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Process A process is a set of interrelated actions and activities performed to achieve a pre-specified product, result, or service.  47 unique processes composed of three elements: 1.Inputs 2.Tools and Techniques 3.Outputs

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To Project Success  Select appropriate processes required to meet the project objectives.

 Use a defined approach that can be adopted to meet requirements.  Comply with requirements to meet stakeholder needs and expectations.  Balance the competing demands.

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Organization Important Issues: Process groups are not completely linear. The scope is “progressively elaborated,” which means that some processes are performed iteratively.

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Integration Management

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Integration Management • Integration process cover all project Phases. • Takes a high-level view of the project from start to finish. • Why using the word “Integration”? Changes made in any one area of the project must be integrated into the rest of the project. • The PM must prioritize different objectives that are competing for time & resources & also keep the team focused on completing the work.

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Integration Management

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Developed Project Charter • The document that officially starts the project. • Work starts even before the project comes official, but it will not be real until the charter is issued. Inputs 1. Project Statement of Work (SOW) 2. Business Case 3. Agreements 3. Enterprise Environmental Factors 4. Organizational Process Assets

T&T

Outputs

1-Expert Judgment Project Charter 2-Facilitation Techniques

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Inputs • Statement Of Work (SOW)  a narrative description of products or services to be delivered by the project and is provided by the project initiator or customer. • Business Case A business case justification for doing the project in first place. (Include: ROI) • Agreements • Enterprise Environmental Factors • Organizational Process Assets

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Tools and Techniques • Expert Judgement  Used to assess the inputs to develop a project charter. Such judgement and expertise is applied to any technical and management details during this process. Ex: Other units within the organization, Consultant, subject matter experts, and • Facilitation techniques

 Facilitation techniques have broad application within project management processes and guide the development of the project charter. Ex: Agenda, Ground Rule, Brainstorming, Nominal Group 68

Outputs  Project Charter Documents the business needs, current understanding of the customer's needs, and the new product, service, or result that it is intended to satisfy, such as: Product purpose or justification. Measurable project objectives and related success criteria. High-level requirements. High-level risks.

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Project Charter Summery milestone schedule. Summery budget. Assigned PM, responsibility, and authority level, and Name and authority of the sponsor or other person(s) authorizing the project charter.  Project Goal & Scope Statement. Deliverables & Key Stakeholders. Assumptions & Constraints. Initial Risks & Schedule Estimates. Cost Estimates & Success Criteria “Signatures” 70

Develop Project Mgmt Plan • The process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans. • Specifies the who, what, when, where and how.

• Progressively elaborated, meaning that it is developed, refined, revisited, and updated. Inputs

T&T

1. Project Charter 1-Expert Judgment 2. Outputs from other Processes 2-Facilitation 3. Enterprise Environmental Factors Techniques

Outputs Project Mgmt Plan

4. Organizational Process Assets 71

Inputs  Project Charter.  Outputs from other Planning Processes. (from other knowledge area)

 Enterprise Environmental Factors.  Organizational Process Assets.

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T&T • Expert Judgement.

• Facilitation Techniques.

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Outputs • Project Management Plan  It is “A formal, approved document that defines how the project is managed, executed, and controlled”.  It may be Summary or detailed.  It composed of one or more subsidiary management plans and other planning documents.

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Project Management Plan and Project documents

Differentiation Between the Project Management Plan and Project documents 75

Direct & Manage Project Execution • This is where things get done!, • Most of the project’s time, cost, and resources are consumed her. Inputs 1. Project Management Plan 2. Approved Change Requests

T&T

Outputs

1. Expert Judgment 1. Deliverables 2. Meetings 2. Work Performance data

3. Enterprise Environmental Factors 3. PMIS 4. Organizational Process Assets

3. Change Requests 4. Project Mgmt Plan Updates 5. Project Document Updates

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Inputs • Approved Change Requests  It can modify policies, the project management plan, procedures, costs, or budgets, or revise schedules.  It may require implementation of preventive or corrective actions. • Enterprise Environmental Factors

• Organizational Process Assets

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T&T • Project Management Information System (PMIS)  Provides access to an automated tool, such as scheduling SW tool, a configuration management system, and information collection system.

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Meetings  Meetings tend to be one of three types: Information exchange; option evaluation or Decision making.

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Outputs • Deliverables  Any product, service, or result. • Work Performance data  Information from project activates collected as the project progresses. • Change Requests (not approved)  When issues are found, it may modify project policies, or procedures, project scope, project cost or budget,  It could be: Corrective Actions, Preventive Actions, Defect Repairs.

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Continue Outputs • Project management plan updates  Elements of project management plan. • Project Documents updates  Requirements documents.  project logs (issues, assumptions, etc.).  Risk register, and stakeholder register.

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Monitor & Control Project Work • Looks at all of the work that is being performed & makes sure that the deliverables themselves & the way in which they are being produced are inline with the plan.

• All M&C processes compare the work results to the plan & make whatever adjustments are necessary to ensure that they match and that any necessary changes in the work or the plan are identified and made.

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Monitor & Control Project Work Inputs 1. Project Management Plan 2. Schedule forecasts 3. Cost forecasts 4. Validated changes

T&T 1. Expert Judgment 2. Analytical Techniques 3. PMIS

5. Work performance Info 4. Meetings 6. Enterprise Environmental Factors 7. Organizational Process Assets

Outputs 1. Change Requests 2. Work performance reports 3. Project Management plan updates 4. Project Documents updates

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Inputs • Project Management Plan.

• Schedule Forecasts  This is expressed in a form of SV and SPI, variance between planned date and forecasted finish date.

• Cost Forecasts  Expressed in a form of CV, CPI, BAC and variance against planned and actual expenditure .

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Continue Inputs • Validated changes

 Approved changes that result from the Perform Integrated Change Control process require validation to ensure that the change was appropriately implemented. • Work Performance Information  Work performance information is circulated through communication processes. • Enterprise Environmental Factors • Organizational Process Assets

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Tools and Techniques • Expert Judgment

• Analytical techniques 

Analytical techniques are applied in project management to forecast potential outcomes based on possible variations of project or environmental variables and their relationships with other variables.

• Project Management Information System

• Meetings

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Outputs • Change Requests (not approved)

• Work performance reports  Should be prepared by the project team detailing activates, accomplishments, milestones, identified issues, and problems,  It can be used to report the key information including: Current status, Forecasts, and Issues.

• Project Management Plan Update • Project Document Updates  Forecasts, Performance reports, Issue log. 87

Perform Integrated Change Control • When change occurs in one area, it is SHOULD evaluated for its impact across the entire project. Inputs 1. Project Management Plan 2. Work Performance Reports 3. Change Requests 4. EEF 5. OPA

T&T 1.Expert Judgment 2.Meetings 3.Change Control Tools

Outputs 1. Approved Change requests 2. Change log 3. Project Mgmt Plan Updates 4. Project Document Updates

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Inputs • Project Management Plan. • Work Performance Reports. • Change Requests. • Enterprise Environmental Factors • Organizational Process Assets

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T&T • Expert Judgment.

• Meetings. • Change Control Tools  Manual or automated tools may be used.  Tools are used to manage the change requests and the resulting decisions.

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Outputs • Approved Change Requests  Approved change requests will be implemented through the Direct and Manage Project Work process.

• Change Log • Project management Plan Updates  Any subsidiary management plans.

• Project Document Updates

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Close Project or Phase • Is the process of finalizing all activates across all of the project management process group to formally complete the project or phase. • Creating the necessary documentation and archives, capturing the lessons learned, ensuring that the contract is properly closed, and updating all org process assets, • It can’t be completed until the project is finished.

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Close Project or Phase Inputs

T&T

Outputs

1. Project Management Plan

1.Expert Judgment

1. Final Product, Service,

2. Accepted Deliverables

2.Analytical techniques

or Result Transition

3. OPA

3.Meetings

2. Organizational Process Assets Update

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Inputs • Project Management Plan. • Accepted Deliverables  Those deliverables that have been accepted through the (Verify Scope process).

• Organizational Process Assets  Project/phase closure guidelines or requirements (project audits, project evaluations, and transition criteria), and

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T&T • Expert Judgment Expert judgment is applied when performing administrative closure activities. These experts ensure the project or phase closure is performed to the appropriate standards. • Analytical Techniques • Meetings

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Outputs • Final Product, Service, or Result Transition  The transition of the final product, service, or result that the project was authorised to produce (or in the case of phase closure, the intermediate product, service, or result),

• Organizational Process Assets Updates  Project Files.  Historical Information. Historical information and lessons learned information are transferred to the lessons learned knowledge base for use by future projects or phases.

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END

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Scope Management

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Scope Management • The overall goals of scope mgmt are to:

 Define the need, expectations, Manage changes, and Gain acceptance. • Include the processes required to insure that the project includes all the work required to complete the project successfully. • Scope changes should be handled in a structured, procedural, and controlled manner.

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Continue Scope Mgmt • Requirements should be documented with the acceptance criteria. • PMs should work proactively to identify and influence the factors that cause changes. • In the project context, the term scope can refer to:  Product Scope. The features and functions that characterize a product, service, or result.  Project Scope. The work that needs to be accomplished to deliver a product, service, or result with the specific features and functions. 101

Plan Scope Management Plan Scope Management is the process of creating a scope management plan that documents how the project scope will be defined, validated, and controlled. Inputs

T&T

Outputs

1. Project Management Plan

1. Expert Judgement. 1. Scope Management Plan

2. Project Charter 3. OPA 4. EEF

2. Meetings

2. Requirements Management Plan.

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Outputs Scope Management Plan  The components of a scope management plan include:

 Process for preparing a detailed project scope statement;  Process that enables the creation of the WBS from the detailed project scope statement;

 Process that establishes how the WBS will be maintained and approved;

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Continue Outputs Requirements Management Plan • The requirements management plan is a component of the project management plan that describes how requirements will be analyzed, documented, and managed. It include, but are not limited to:  How requirements activities will be planned, tracked, and reported.

 Requirements prioritization process;  Product metrics that will be used and the rationale for using them.

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Collect Requirements • Defining and documenting stakeholder’s needs, • The project success is directly influenced by the care taken in capturing and managing project and product requirements,

• It could categorize into:  Project requirements.  Product requirements.

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Collect Requirements Inputs

T&T

Outputs

1. Scope Management Plan

1. Interviews 2. Focus group

1. Requirements documentation

2. Requirement Management Plan 3. Stakeholder management plan

3. Facilitated workshops 4. Group creativity techniques 5. Group decision making techniques 6. Questionnaires and surveys

2. Requirements traceability Matrix

4. Project Charter 5. Stakeholder Register

7. Observations 8. Prototypes 9. Benchmarking 10. Context diagrams 11. Document analysis 106

Inputs • Stakeholders Management Plan • The stakeholder management plan is used to understand stakeholder communication requirements and the level of stakeholder engagement. • Project Charter • Stakeholder Register  Used to identify stakeholders that can provide information on detailed project and product requirements. 107

T&T • Interviews

 Formal or informal approach to discover info from stakeholders by talking to them directly. • Focus Groups  Bring together prequalified stakeholders and subject matter experts to learn about their expectations about a proposed project. • Facilitated Workshop  Primary technique for defining cross-functional requirements and reconciling stakeholder differences, focused sessions that bring key crossfunctional stakeholders together to define product requirements. 108

Continue T&T • Group Creativity Techniques  Brainstorming  Nominal Group Technique  Idea/Mind Mapping  Affinity Diagram  Multi criteria decision analysis

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Continue T&T • Group Decision Making Techniques  Assessment process for multiple alternatives with an expected outcome in the form of future actions resolution.  There are multiple methods for reaching a group decision, Ex:  Unanimity . Everyone agrees on a single course of action.  Majority . Support from more than 50% of the members of the group.  Plurality. The largest block in a group decides even if a majority is not a achieved.  Dictatorship . One individual makes the decision for the group. 110

Continue T&T • Questioners and Surveys

• Observations • Prototypes  Obtaining early feedback on requirements by providing a working model of the expected product before actually building it.  It supports the concept of progressive elaboration.

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Continue T&T Benchmarking  Benchmarking involves comparing planned practices to those of comparable organizations to identify best practices.

Context diagrams  Context diagrams show inputs to the business system, the actor(s) providing the input, the outputs from the business system, and the actor(s) receiving the output.

Document Analysis Document analysis is used to elicit requirements by analyzing existing documentation and identifying information relevant to the requirements. 112

Outputs • Requirements Documentation Requirements may start out at a high level and become progressively more detailed as more is known.

 Acceptance criteria.  Impact to other entities inside & outside the org.  Support & training requirements.

 Requirements assumptions & constraints.

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Continue Outputs • Requirements Traceability Matrix  Tables that links requirements to their origin and traces them throughout the project life cycle.

 It helps ensures that each requirement adds business value by linking it to the business and project objectives.  High-level requirements to more detailed requirements.  It helps identifying key info about the requirements.

114

Define Scope A detailed understanding of the requirements to be executed, verified, and delivered. It is this process where the requirements are gathered and documented.

Inputs

T&T

1. Scope Management Plan 2. Project Charter

1. Expert Judgment 2. Product Analysis

3. Req. Documentation 4. OPA

3. Alternatives Identification 4. Facilitated Workshops

Outputs 1. Project Scope Statement 2. Project Document Update

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Inputs • Scope Management plan • Project Charter • Requirements Documentation. • Organizational Process Asset

((Gold Plating concept))

116

Tools and Techniques • Expert Judgment • Product Analysis

 Detailed Analysis of the project’s product, service, or result, with the intent of improving the project team’s understanding of the product and the requirements. • Alternatives Identification

 To make sure that the team is properly considering all options as they relate to the project’s scope.  Techniques to generate creative thought are used. • Facilitated Workshops

117

Outputs • Project Document Updates

• Project Scope Statement  More detailed than the SOW.  It includes: Goal of the project. Product descriptions. Identified risk up to now. Acceptance criteria. Cost estimate. Project exclusions, assumptions, constraints.

118

Create WBS ((Team Work)) The process of sub dividing project deliverables and project work into smaller more manageable components.

Inputs 1. Scope Management Plan 2. Project Scope Statement 3. Requirements Documentation 4. Org Process Assets 5.Enterprise Env Factors

T&T 1. Decomposition 2. Expert Judgment

Outputs 1. Scope Baseline 2. Project doc updates

119

T&T • Decomposition  Breaking down the project deliverables into components (the work package level).  In the WBS, top layer is very general (just name), and each subsequent layer is more and more specific. Every level is the detailed explanation of the level above it.  To what level we decompose?  Are tour work packages small enough to be manage and estimated for time and cost. • Expert Judgment

120

Outputs • Scope Baseline Which include :

Project Scope Statement. Work Breakdown Structure. (WBS) WBS Dictionary .

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Continue WBS  Elements of a Good WBS It must be detailed down to a low level. The lowest level called work packages. Graphically, arranged, where each sub-level rills up to the level above it. The project team with the PM creates it. It can be means of team building. It helps define responsibilities for the team. It is a communicational tool.

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Continue WBS

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Continue Outputs • WBS Dictionary  A document that detail information to the contents (nodes) of the WBS.  WBS dictionary may include, but is not limited to: ○ Code of account identifier. ○ Description of work.

○ Assumptions and constraints. ○ Responsible organization. ○ Schedule milestones. ○ Associated schedule activities.○ Resources required. ○ Cost estimates.○ Quality requirements. ○ Acceptance criteria,○ Technical references. and ○ Agreement information. • Project Document Updates 124

Example • SAAD want to re-qualify his bed room; he decide to change his bed, paint walls, buy new sofa and Get rid of old furniture's. • Since he do not have enough budget; he also decide to keep some money from his monthly salary for three months.

125

Example “SAAD Room Re-qualify Project” Could you create WBS for this project?

126

Validate Scope Validate Scope is the process of formalizing acceptance of the completed project deliverables. • Scope Validation & Quality Control  Both inspect the product against the scope.  SV performed after QC & can be performed at the same time. • Difference:

 SV focuses on the completeness of the work, while QC focuses on the correctness of the work.

127

Validate Scope Inputs

T&T

1. Project Management Plan 2. Requirements Documentation 3. Requirements Traceability Matrix

1. Inspection 2. Group decision making techniques

4. Verified Deliverables 5. Work Performance data

Outputs 1. Accepted Deliverables 2. Change Requests 3. Work performance Info 4. Project Document Updates

128

Inputs • Project Management Plan • Requirements Documentation • Requirements Traceability Matrix • Verified Deliverables

• Work Performance data

129

T&T • Inspection  Includes activities such as measuring, examining and verifying to determine whether work and deliverables meet requirements and product acceptance criteria.  They are sometimes called reviews, product reviews, audits, and walkthroughs. • Group decision-Making techniques

130

Outputs • Accepted Deliverables Performed by the PM, the sponsor, the customer, and the functional managers. • Change Requests • Work Performance information  Work performance information includes information about project progress, such as which deliverables have started, their progress, which deliverables have finished, or which have been accepted. • Project Document Updates

131

Control Scope An on-going process that begins as soon as the scope baseline is created where each scope change request should be controlled and managed. Inputs 1. Project Mgmt Plan 3. Requirements Doc 4. Requirements Traceability Matrix 5.Work Performance data 6. Org Process Assets

T&T Variance Analysis

Outputs 1. Work Performance information 2. Change Requests 3. Project Mgmt Plan Updates 4. Project document Updates 5. Org Process Assets Updates

132

Inputs • Project Management Plan • Requirements Documentation. • Requirements Tractability Matrix. • Work Performance data  Work performance data can include the number of change requests received, the number of requests accepted or the number of deliverables completed, etc.

133

T&T • Variance Analysis  Used to measure differences between what was defined in the scope baseline and what was actually created.  A way to investigate and understand the root causes behind the differences.

134

Outputs • Work Performance Information • Change requests • Project Management Plan Updates • Project Document Updates  Requirements documentation.  Requirements traceability matrix.

135

End

13

Time Management

13

138

Time Management • The PM should be in control of the schedule. • Schedule is built from the ground up, derived from the scope baseline and other info, and rigorously managed throughout the life of the project.

• Most critical constraint, based of The Triple Constraint model.

Scope

Quality

139

Plan Schedule Management Plan Schedule Management is the process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.

Inputs 1234-

project management plan. project charter. EEF. OPA.

T&T 1-Expert Judgement. 2-Analytical Technique. 3-Meeting.

Outputs 1-Schedule Management Plan

140

Outputs • Schedule Management Plan  A component of the project management plan that establishes the criteria and the activities for developing, monitoring, and controlling the schedule. The schedule management plan may be formal or informal, highly detailed.  For example, the schedule management plan can establish the following:  Project schedule model development, Level of accuracy.  Control thresholds, and Process descriptions.

 Rules of performance measurement, reporting formats. 141

Define Activities Identifying the specific actions to be performed to produce the deliverables, WBS identifies the deliverables at the lowest level in the WBS, the work package.  Project work packages are decomposed into smaller components called activities that represents the work necessary to complete. Inputs 1. Schedule Mgmt plan 2. Scope Baseline 3. EEF. 4. OPA.

T&T 1. Decomposition 2. Rolling Wave Planning 3. Expert Judgment

Outputs 1. Activity List 2. Activity Attributes 3. Milestone List

142

Inputs • Schedule management plan • Scope Baseline  The project deliverables, WBS, constraints, & assumptions documented in the project scope baseline are considered explicitly when defining activities. • Enterprise Environmental Factors • Organizational Process Assets

143

T&T • Decomposition  Subdividing the work packages into smaller, more manageable components called activities.  Involving team members in the decomposition can lead to better and more accurate results.

• Rolling Wave Planning  A form of progressive elaboration that models project planning the way we see things in the real world.

144

Outputs • Activity List

 All of scheduled activities that need to be performed,  Finally, activities are used to create the project schedule. • Activity Attributes

 For planning, we need to have additional info about activities.  It is an expansion of the activity list and it will be seen with it. • Milestone List

 A significant point or event in the project.  Imposed, dates based on contractual obligation.  Optional, dates based on historical information.

145

Ex: Activity list

146

Ex: activity attribute

147

Sequence Activity Identifying and documenting relationships among the project activities. We can use project management software or using manual or automated techniques. Ex: MS Projects, primavera. Inputs 1. Schedule Mgmt plan 2. Activity List 3. Activity Attributes 4. Milestone List 5. Project Scope Statement 6. EEF 6. OPA

T&T 1. Precedence Diagramming Method (PDM) 2. Dependency Determination 3. Leads and Lags

Outputs 1. Project Schedule Network Diagrams 2. Project Document Updates

148

Inputs • • • • • •

Schedule Management plan. Activity List. Activity Attributes. Milestone List Project Scope Statement Organizational Process Assets

149

T&T • Precedence Diagramming Method (PDM) or (AON)  Used in Critical Path Method (CPM) for constructing a project schedule network diagram.  Activities are represented by the node (Rectangles), with arrows representing the dependencies between them.

150

PDM

151

Note: PDM is Activity on NODE (AON); it mean activity present by node. While Activity On Arrow(AOA); activity present by Arrow.

152

Continue T&T • PDM includes four types of dependencies or logical relations:

 Finish-to-start (FS): The initiation of the successor activity depends upon the completion of the predecessor activity.  Finish-to-finish (FF): The completion of the successor activity depend upon the completion of the predecessor activity.

 Start-to-star (SS): The initiation of the successor activity depends upon the initiation of the predecessor activity.  Start-to-finish: The completion of the successor activity depend upon the initiation of the predecessor activity. 153

Continue T&T • Dependency Determination

 Mandatory Dependencies: can’t be broken. Also know as hard logic.  Discretionary Dependencies: soft logic or preferred logic. Can be a result of best practices that means it is based on historical information,  External Dependencies.

 Internal Dependencies.

154

Continue T&T •

Leads and Lags

 A lead: One activity getting a jump start on another.  It allows the acceleration of the successor activity. Ex. Finish-to-Start Activity (mandatory)

155

Continue T&T  A lag : a waiting period that exists (must occur) between two activity.  It directs a delay in the successor activity.

 During this lag there is no work to performed.  Ex. Start-to-Start Activity (discretionary)

156

Outputs • Project Schedule Network Diagram

 No dates are assigned to the activities yet.  Include full representation of every activity with enough documentation so the flow of activity can be understood. • Project Document Updates

 Activity list.  Activity attributes.  Risk register.

157

Exercise1 Part of Activity List for retail Department development Project Activity Description A Review customer complaints B Review old process flow documents C Specify repeated procedures D Make short list of complaints E Make required change to satisfy customer F Approve for changes and delete repeated procedures G Update process flow H Inform interested party

Predecessors -

Duration-Month 2 3

B A D

1 1 4

C,E

1

F G

1 1

Draw PDM for above activity list 158

159

Estimate Activity Resource Analysing project activity to determine the type and quantities of material, people, logistics, or supplies required to perform each activity.

Inputs

T&T

Outputs

1. Schedule Management Plan 2. Activity List

1. Expert Judgment 2. Alternatives Analysis

1. Activity Resource Requirements

3. Activity Attributes 4. Resource Calendars 5. Risk Register 6. Activity cost Estimates

3. Published Estimating Data 4. Bottom-Up Estimating 5. Project Mgmt Software

2. Resource Breakdown Structure 3. Project Document Updates

7. EEF. 8. OPA. 160

Input • Schedule Management Plan • Activity List

• Resource Calendars  Information on which resources are potentially available (when and how) during the activity period, • Risk Register  Risk events may impact resource selection and availability. Updates to the risk register are included with project documents updates.  Risk Register Example

161

Continue Inputs • Activity cost Estimates  The cost of resources may impact resource selection.

• Enterprise Environmental Factors • Organizational Process Assets

162

T&T • Expert Judgement. • Bottom-Up Estimating • Alternative Analysis  Outsourcing an activity, purchasing a S.W. component rather than building it, or using a totally different approach to complete the activity. • Published Estimating Data  Data available through published, recognized sources that can help in estimating, • Project Management Software

163

Outputs • Activity Resource Requirements  The type & quantity of resources required for each schedule activity is the primary output. Ex. Two senior programmers are required for 4 months. • Resource Breakdown Structure (RBS)  Similar to WBS, is a hierarchical structure of the identified resources by resource category & resource type.  It is useful for organizing and reporting project schedule data with resource utilization information.

164

Continue Outputs • Project Document Updates  Activity list.  Activity attributes.  Resource calendar.

165

Estimate Activity Durations • Analyze each activity in the activity list to estimate how long it will take. It focuses on determining the duration. • It requires the amount of work effort required to complete is estimated and the amount of resources to be applied to complete the activity is estimated, these are used to approximate the number of work periods needed to complete the activity. • project management software can be used.

166

Estimate Activity Durations Inputs 1. Schedule Management Plan 2. Activity List 3. Activity Attributes 4. Activity Resource Requirements 5. Resource Calendar 6. Project Scope Statement 7.Risk Register 8.Resource Breakdown structure 9.EEF 10. OPA

T&T 1. Expert Judgment 2. Analogous Estimating 3. Parametric Estimating 4. Three-Points Estimates 5. Group Decision Making Techniques 6. Reserve Analysis

Outputs 1. Activity Duration Estimates 2. Project Document Updates

167

Inputs • • • •

Schedule Management Plan Activity List. Activity Attributes. Activity Resource Requirements  The resources assigned to the activity, and the availability of the resources will influence the duration of most activities. • Resource Calendars  The type, availability, & capabilities of human resources.  The type, quantity, availability, & capability when applicable, of both equipment & material resources.

168

Continue Inputs • Project Scope Statement • Risk Register  The risk register provides the list of risks, along with the results of risk analysis and risk response planning. • Resource Breakdown Structure  provides a hierarchical structure of the identified resources by resource category and resource type. • Enterprise Environmental Factors • Organizational Process Assets Duration estimating databases and other reference data, 169

T&T • Expert Judgement. • Analogous Estimating Top-Down Estimating use info from a previously performed project to estimate the current project. Uses parameters such as duration, budget, size, weight, and complexity as the basis for estimating. • Parametric Estimating It can produce a higher levels of accuracy. Uses statistical relationship between historical data and other variables.

170

Continue T&T • Three-Point Estimating (PERT) : PERT, use three data points for the duration instead of simply one.

 Pessimistic, Most Likely or realistic, and Optimistic estimates,  Formula: Pessimistic + 4XMost Likely + Optimistic 6  Standard Deviation for an Estimate: Sigma= Pessimistic – Optimistic 6 • Two commonly used formulas are triangular and beta distributions. The formulas are:

• Triangular distribution. tE = (tO + tM + tP) / 3 • Beta distribution

tE = (tO + 4tM + tP) / 6 171

Continue T&T • Group Decision-Making techniques • Reserve Analysis  Reserve time or Contingency and some time referred to as buffer into the overall project schedule to account for schedule uncertainty,  Revisited throughout the life of the project, being revised up or down as more info on schedule risk becomes available.

172

Outputs • Activity Duration Estimates

 Quantitative assessments of the likely number of work periods that will be required to complete an activity.  Contains an estimated duration for each activity in the activity list. • Project Document Updates  Activity attributes, and  Assumptions made in developing the activity duration estimate such as skill level and availability.

173

Develop Schedule • Analyzing activity sequences, durations. resource requirements, and schedule constraints to create the project schedule.

• Developing an acceptable project schedule, it determines the planned start and finished dates for the project activities and milestones. • Revising and maintaining a realistic schedule continues throughout the project as work progresses.

174

Continue Develop Schedule Inputs

T&T

Outputs

1. Schedule Management Plan 2. Activity List 3. Activity Attributes

1. Schedule Network Analysis 2. Critical Path Method (CPM) 3. Critical Chain Method

1. Schedule Baseline 2. Project Schedule 3. Schedule Data

4. Project Schedule Network Diagrams 5. Activity Resource Requirements 6. Resource Calendars

4. Resource Optimization techniques 5. Modeling Techniques 6. Leads and Lags

4.Project Calendars 5.Project Management plan updates

7. Activity Duration Estimates 8. Project Scope Statement 9.Risk Register 10.Project staff assignment

7. Schedule Compression 8. Scheduling Tool

6. Project Document Updates

11.Resource Breakdown Structure 12. Enterprise Environmental Factors 13. Org Process Assets 175

Inputs • Schedule Management Plan • Activity List.

• Activity Attributes. • Project Schedule Network Diagram. • Activity Resource Requirements.

• Resource Calendars. • Activity Duration Estimates. • Project Scope Statement. • Risk Register • Project Staff Assignment • Resource Breakdown structure • Enterprise Environmental Factors.

• Organizational Process Assets. 176

T&T • Schedule Network Analysis  The technique of identifying early and late start dates, as well as early and late finish dates, for the uncompleted portions of project schedule activities.

Slack Time : amount of time the Task can be delayed without delay project SL = LS – ES OR SL= LF-EF 177

Schedule Network Analysis

178

Continue T&T • Critical Path Method  The critical path method, used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model.

 Any delay of any activity locate on Critical Path, will effect direct of project finish dates.

179

Exercise

What Critical Path ? 180

Continue T&T • Critical chain method  It is an upgraded version of the critical path method, which is a more practical approach to developing the project schedule.  In critical chain method, the availability of resources is taken into consideration while drawing the network diagram.

181

Continue Critical Chain Method  PM should Add “buffers” between activities and make sure not to exceed your buffer.

 PM should Add “buffers” between activities and make sure not to exceed your buffer. 182

Continue Critical Chain Method  To achieve this, you first must perform the critical path analysis and then analyze resource constraints

and probabilities in order to build the schedule and the buffers.

 The size for each buffer should account for the uncertainty in the duration of the chain, of dependant tasks leading up to that buffer.

183

Continue Critical Chain Method

• Project Buffer This buffer is placed between the last task and the project completion date as a non-activity buffer.

• Feeding Buffers They are inserted between the last task on a non-critical chain and the critical chain.

• Resource Buffer These buffers are kept alongside the critical chain to make sure that they are available when they are required. 184

Continue T&T • CRITICAL PATH VS CRITICAL CHAIN  The critical path method (CPM) is a popular approach to project scheduling that considers the amount of float on project activities.  Critical chain takes CPM a step further by adding time buffers to account for limited resources.

185

Continue T&T • Resource Optimization Techniques 1.Resource Leveling

 A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resource with the available supply.  It often cause the original critical path to change.

((extend time to reduce resource load)) In case no more resource's 186

Continue T&T 2. Resource Smoothing

 A technique that adjusts the activities of a schedule model such that the requirements for resources on the project do not exceed certain predefined resource limits. ((Move work to other resources if the load is over))

187

Continue T&T • Modeling Techniques Examples of modeling techniques include, but are not limited to: 1. What-If Scenario Analysis.

2. Simulation Simulation involves calculating multiple project durations with different sets of activity assumptions, usually using probability distributions constructed from the three-point estimate. • Leads and Lags 188

Continue T&T • Schedule Compression  Fined ways to complete the project earlier without cutting the project’s scope:

1. Crashing: adding resources to the project activity. It almost always increase cost.

2. Fast Tracking: re-ordering the sequence of activities so that the some of the activities are performed in parallel, or at the same time. It does not necessary increase cost, but it increases risk.

189

Continue T&T • Scheduling Tool  Automated scheduling tools expedite the scheduling process by generated start and finish dates based on the inputs of activities, network diagrams, resources, resources and activity durations.

190

Outputs • Schedule Baseline

 A schedule baseline is the approved version of a schedule model that can be changed only through formal change control. • Project Schedule  Shows when each activity is scheduled to begin and end, as well as schedule start and finish for overall project.

 It may be presented in summery form, sometimes referred to as the master schedule or milestone schedule, or presented in detail,

191

Continue Outputs  Milestone Charts Similar to bar charts, but only

identify the scheduled start or completion of major deliverables or milestones and key external interfaces.  Provides general level of information.  Used for brief, high level presentations where a lot of schedule detail would be undesirable.

192

Continue Outputs  Bar Charts (Gant Chart) representing activities, show activity starts and end dates, durations. - Easy, and frequently used. Show percentage complete - Represents the activity on horizontal bars with calendars. - The length of the bar corresponds to the length of the time the activity should require.  Project Schedule Net. Diagram. show interdependencies, the sequences, and the critical path. - Can be presented in the activity-on-node diagram format, or presented in a time-scale schedule network diagram format, sometimes called a logic bar chart. 193

Continue Outputs • Schedule Data • Schedule Baseline

 It is accepted and approved by the project management team as the schedule baseline with baseline start dates and

baseline finish dates.

194

Continue Outputs • Project calendars Identifies working days and shifts that are available for

scheduled activities • Project Management Plan Updates • Project Document Updates

195

Control Schedule • Concept of any controlling process, is to compare the work results to the plan and ensure that they line up. • Schedule is controlled to make sure that time-related performance on the project is inline with the plan. • Determining the current status of the schedule. • Influencing the factors that create schedule changes. • Determining that the project schedule has changed.

196

Control Schedule Inputs

T&T

Outputs

1. Project Mgmt Plan 2. Project Schedule 3. Work Performance

1. Performance Reviews 2. Project Mgmt software 3. Resource optimization

1. Work Performance Information 2.Schedule Forecasts

data 4.Project Calendars 5.Schedule Data 6. Organizational

techniques 4. Modeling Techniques 5. Leads and Lags 6. Schedule Compression

3. Change Requests 4. Project Mgmt Plan updates 5. Project Document Updates 6.Organizational process assets

Process Assets

7. Scheduling Tool

update

197

Inputs • Project Management Plan • Project Schedule • Project Calendars

• Schedule Data • Organizational Process Assets • Work performance data

198

T&T • Performance Reviews 1.Trend Analysis 2.Critical path method. 3.Earned value management (cost management chapter). 4.Critical Chain Method

• Project Management Software

199

Continue T&T • Resource Optimization Techniques • Modeling Techniques • Leads and Lags

• Schedule Compression • Scheduling Tools

200

Outputs • Work Performance Information

• Change Requests. • Project Management Plan Updates • Project Document Updates

• Organizational Process Assets Updates

201

End

20

Cost Management

20

204

Cost Management • Second main project constraint, based of The Triple Constraint model.

Scope

Quality

• PM should have a well-defined WBS, an activity list with resource and duration estimates for all activities.

• PM should M&C cost against time, scope, quality, and risk to ensure that all projection remain realistic and clearly defined.

205

Plan Cost Management Plan Cost Management is the process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.

Inputs 1- project management plan. 2- project charter. 3.EEF. 4.OPA.

T&T 1-Expert Judgement. 2-Analytical Technique. 3-Meeting.

Outputs 1-Cost Management Plan

206

Outputs • Cost Management Plan  The cost management plan is a component of the project management plan and describes how the project costs will be planned, structured, and controlled. For example, the cost management plan can establish the following: - Units of measure.

- Level of accuracy

- thresholds(upper & lower limit) - Process descriptions - Rules of performance measurement

- Organizational procedures

- reporting formats 207

Estimate costs Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities.  Estimation become more mature and accurate while project progressing. Estimate Type Rough Order of Magnitude Estimate at project initiation

Range From -50% to +100%

Preliminary Estimate (Used for approvals)

From -20% to +30%

Definitive Estimate (Used for project control)

From -15% to +20%

Detailed Cost (Used for bid preparation)

From -10% to +15%

208

Estimate Costs Inputs

T&T

1.Cost management Plan 2.HR Management plan. 3. Scope Baseline 4. Project Schedule 5. Risk register 6. EEF 7. OPA

1. Expert Judgment 2. Analogues Estimating 3. Parametric Estimating 4. Bottom-up Estimating 5. Three-point estimates 6. Reserve analysis 7. Cost of quality 8. Project Management SW 9. Vendor Bid Analysis 10.Group decision making tech.

Outputs 1. Activity Cost Estimates 2. Basis of Estimates 3. Project Documents Updates

209

Inputs •

Cost Management Plan

•

Human Resources Management Plan  Provides project staffing attributes, personnel rates, and related rewards/recognition, which are necessary components for developing the project cost estimates. Human Resource Management Plan input on Estimate Costs?

•

Scope baseline :

Scope statement – WBS – and WBS dictionary

•

Project Schedule.

•

Risk Register.

•

EEF & OPA. 210

T&T • Expert Judgment: • Analogous Estimating (Top Down) • Parametric Estimating • Bottom-Up (Detailed) Estimating • Three point estimate:

211

T&T • Reserve Analysis  Reserve amount also called Contingency.  The reserved amount should be analyzed to ensure that the amount of reserve being planned reflects the risk associated with the project. • Cost of Quality (COQ) (During Product life cycle)  Refers to all of the costs that are incurred to (prevent defects) in products or costs that (result from defects) in the products.  Also used in the quality planning process.

212

T&T • Project Management Estimating Software:  Computerized applications like spreadsheets, simulations and statistical tools.

• Vendor Bid Analysis  Bids should be analyzed, to improve the project team’s understanding of cost. • Group decision-Making techniques

213

Outputs • Activity Cost Estimating  How much it would cost to complete each schedule activity.

• Basis of estimates    

Document of the basis of estimates. Document of all assumptions. Document of any known constrains. Confidence level of final estimates.

• Project Documents Updates

214

Determine Budget aggregating the estimated costs of work packages to establish an authorized cost baseline.  It distribute cost on time phases so that the performing org. will know how to plan for cash flow and likely expenses.  It should be performed after activity definition, activity duration estimate, and activity resource estimate have been performed.

215

Determine Budget Inputs 1.Cost Management Plan 2.Scope Baseline 3. Activity Cost Estimate 4. Basis Of Estimates 5. Project Schedule 6. Resource Calendars 7.Risk Register 8. Agreements 9. OPA

T&T 1. Cost aggregation 2. Reserve analysis 3. Expert judgment 4. Historical information 5. Funding limits reconciliation

Outputs 1. Cost baseline 2. Project Funding Requirements 3. Project Documents Updates

216

Inputs • Cost Management Plan • Scope Baseline • Basis of estimates

• Project schedule • Recourse calendar • Risk Register

• Agreements • OPA

217

T&T • Expert Judgment • Cost Aggregation  Costs are estimated at an activity level, these estimates should be aggregated to the work package level where they will be measured, managed, and controlled during the project. • Reserve Analysis  Related to risk.  Almost all projects maintain a financial reserve to protect them against cost overrun.  How much they keep, how they track it vary from project to another. These buffers go by various names such as management reserve, and Contingency reserve. 218

• Reserve Analysis

219

Continue T&T • Historical Relationship (Parametric Estimation) A good way to check the validity of your budget is to compare it with any historic data or industry data that show cost relationships. • Funding Limit Reconciliation The process of identify any variances between the funding limits and the planned expenditures.

220

Outputs • Cost Baseline  Provides Budget at completion.  Specifies what costs will be incurred & when.  Larger project may be divided into multiple cost baselines.

• Project Funding Requirements  Cost Baseline is used to determine the project’s funding requirements that are almost always related to the planning expenditures, but not identical to them.  They also should include any planned contingency or reserve funds, since these must be available to the project as soon as they are needed. • Project documents updates 221

222

Control Cost Inputs

T&T

Outputs

1. Project mgmt plan 2. Project funding Req. 3. Work Performance data 4. OPA

1. Earned value mgmt 2. Forecasting 3. To-complete performance index 4. Performance reviews 5. Project mgmt Software 6. Reserve analysis

1. Work performance Info. 2. Cost forecasts 3.Change requests 4.Project mgmt. plan updates 5.Project document updates 6. OPA update

223

Inputs • • • •

Project management plan Project Funding Requirements Work performance Data Organization process assets

224

T&T • Earned value management (EVM) It’s a method of performance measurement, it integrates project scope, cost and schedule to help measure project performance. EVM monitor, three monitory values: Planned value - Earned value - Actual cost • By EVM Project manager will know whether the project is: − ahead of / on / behind schedule − under / on / over budget

225

EVM Planned Value (PV):

 How much Work should have been completed at a point in time based on the plan.  The authorized budget assigned to be accomplished.  (Planned % complete X BAC)  Total PV for the project is also known as (BAC) Earned Value (EV) :

 The monitory value of work performed.  Delivered by measuring where you actually are in terms of work completed during a given period of time in the schedule. Actual Cost (AC):

 The actual cost incurred.  The money spent during a given period of time. 226

EVM EVM monitor, two variances  Cost Variance:

• The difference between what we expected to spend and what was actually spent. • CV= EV-AC  Schedule Variance:

• The difference between where we planned to be in the schedule and where we are in the schedule. •

SV=EV-PV.

227

EVM  •

•  •

•

Schedule performance index. It measures how efficiently the project team is using its time. SPI = EV/PV Cost performance index. The cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost. CPI = EV/AC 228

Exercise

Earned Value Management

Assume 4 equal sides, budget 200$ per side, schedule 1 side per day. Finish 4 days & cost 800$. Day1: side 1 complete, budget of 200$ spent. Day2: side 2 started but not complete, expected budget 220$ Day3: side 2 complete, and half of side 3 completed but team left early and only spent 140$

Where we are now? Ahead or Behind 229

4 equal sides, budget 200$ per side, 1 side per day. Finish 4 days & cost 800$. Day1:side 1 complete, budget of 200$ spent. Day2:side 2 started but not complete, expected budget 220$ Day3:side 2 complete, and half of side 3 completed but team left early and only spent 140$

230

EVM Example:

231

Continue T&T  Forecasting. − EAC forecast for ETC work performed at the budgeted rate. This EAC method Equation: EAC = AC + (BAC - EV) − EAC forecast for ETC work performed at the present CPI Equation: EAC = BAC / CPI − EAC forecast for ETC work considering both SPI and CPI factors. Equation: EAC = AC + [(BAC - EV) / (CPI x SPI)]

232

Exercise

Earned Value Management • Project of Highway Paving 100 Km; for each 10 Km we need a month with cost 100 k$, total project budget is 1 million and duration 10 Month. • MONTH1: 10 km complete, budget of 90k spent. • MONTH2: 15 km complete, budget of 150k spent.

• MONTH3: 15 km complete, budget of 110k spent. • MONTH4: 10 km complete, budget of 100k spent.

Where we are now? Ahead or Behind 233

Answer • PV ; EV ; AC ; • CV= EV-AC • SV=EV-PV

• CPI = EV/AC • SPI = EV/PV

234

Answer • PV = 100 + 100 + 100 + 100 = 400 k • EV = (10+15+15+10)=50 km * 100k = 500k • AC = 90 + 150 + 110 + 100 = 450 k • CV= EV-AC = 500 – 450 = 50 • SV=EV-PV = 500 – 400 = 100

• CPI = EV/AC = 500 /450 =

1.1

• SPI = EV/PV = 500 / 400 =

1.25

235

T&T • To-Complete Performance Index (TCPI) Is a measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal . TCPI = (BAC-EV)/(BAC-AC)

TCPI = (BAC-EV)/(EAC-AC)

236

T&T  EAC=AC+[(BAC-EV)/(cumulative CPIX cumulative SPI], this estimate introduce SPI as a factor in estimating EAC and we can add a weighting value (80/20 or 50/50) between SPI and CPI • To Complete Performance Index(TCPI)  If the BAC is no longer viable, the project manager develop a forecast estimate at completion. Once its approved TCPI will replace BAC.  

TCPI based on BAC: (BAC-EV)/(BAC-AC), If CPI false below the baseline (-ve value)TCPI based on EAC will be calculated and will be set as new target TCPI=(BAC-EV)/(EAC-AC). 237

Continue T&T

238

239

240

Continue T&T • Performance Reviews  Meetings held to measure actual performance against the plan. • Project Management Software  The software that will help in automating the generation of EVM variables, indexes and forecasts. • Reserve Analysis

241

Outputs • Work Performance Measurements  Show how the project is performing against the plan,  CV, SV, CPI, and CPI. • Cost Forecasts  Either a calculated EAC value or a bottom-up EAC value is documented and communicated to stakeholders. • Change requests (By Default)  Corrective actions.  Preventive actions. 242

Continue Outputs • Project management Plan updates • Project documents updates • Organization process assets update

243

End

24

Quality Management

24

246

Quality Management • Quality:  The degree to which a set of inherent characteristics fulfill requirements. • Differences between grade and quality  Grade: The same technical use, but different characteristics.  Quality: The degree of characteristics fulfill the requirements.

247

Terms and Definitions We must differentiate between quality control and quality assurance: Quality assurance: The planned and systematic activities implemented in a quality system so that quality requirements for a product or service will be fulfilled. Quality control: The observation techniques and activities used to fulfill requirements for quality.

248

Quality Pioneers and Philosophies • JURAN: Issue Pareto principle (80% of the problems are caused by 20% of the causes), He developed “Juran’s Trilogy”: quality planning, quality control, and quality improvement. • CROSBY: Zero Defect, which led to Six Sigma. • DEMING: Increase quality and reduce costs by continuous process improvement. (Plan-Do-Check-Act)

249

Continue Terms and Definitions  Just-In-Time (JIT): A manufacturing method that brings inventory down to zero (or near zero) levels. It forces a focus on quality, since there is no excess inventory on hand to waste.  Six Sigma: it focuses very high levels of quality by controlling the process and reducing defects.  It puts a primary focus on quantifying, measuring, and controlling the quality of products, services, and results.

250

Continue Terms and Definitions

251

Continue Terms and Definitions  Attribute sampling: Measures whether or not the results conform to specifications. (YES or NO)  Variable sampling: continuous scale that measures the degree of conformity. The result is rated on degree of conformity.  Control limits: identify the boundaries of common variation in a statistically stable process or process performance.  Tolerance: specified range of acceptable results.

252

Plan Quality Management It is the process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with relevant quality requirements and / or standards. Inputs

T&T

Outputs

1.Project Management Plan 2. Stakeholder register

1. Cost-Benefit-Analysis 2. Cost of Quality

1. Quality Management Plan 2. Process Improvement Plan

3. Risk register 4.Requirements Documentation

3.Seven Basic Quality tools 4. Benchmarking

2. Quality Metrics 3. Quality Checklists

5. EEF 6. OPA

5. Design of Experiments 6. Statistical sampling

5. Project document updates

7. Additional Quality Planning Tools 8.Meetings 253

Inputs • Project Management Plan • Stakeholder register • Risk register • Requirements Documentation • EEF • OPA

254

T&T • Cost-Benefit Analysis A cost-benefit analysis for each quality activity compares the cost of the quality step to the expected benefit. • Cost of Quality (COQ)  Looks at all of the costs that will be realized in order to achieve quality.

• Seven Basic Quality tools - Cause-and-effect diagrams

- Flowcharts

- Check sheets

- Pareto diagrams

- Histograms

- Control charts

- Scatter diagrams 255

256

T&T • Benchmarking  Project’s quality standards are compared to those of other projects which will serve as a basis for comparison. • Design of Experiments (DOE)  We need to know what is the predicted outcome of a systems under experiment (measure phase in 6sigma).  Uses data analysis to determine optimal conditions. • Additional quality planning tools  Like brain storming, force field analysis, nominal group techniques and Quality Management and control tools .

• Meetings 257

Outputs • Quality Management Plan: Describes how the quality policy will be met. • Process Improvement Plan: Deals with how quality activities will be streamlined and improved. Areas to consider:  Process boundaries,  Process configuration,  Process metrics,  Target to improve performance. • Quality Metrics : Define how quality will be measured. • Quality Checklists: (list of steps)To ensure that all steps were performed. and that they were performed in the proper sequence. • Project Documents Updates 258

Perform Quality Assurance The process of auditing the quality requirements and the results from quality control measurements ensure that appropriate quality standards are used.

Inputs 1. Quality Mgmt. Plan 2. Process Improvement Plan 3. Quality Metrics 4. Quality Control 5. Project Documents

T&T 1.Qulaity Management and control tools 2. Quality Audits 3. Process Analysis

Outputs 1.Changes Requests 2.Project Mgmt. Plan Updates 3.Project Document Updates 4. Org Process Assets updates 259

Input • Quality Management Plan • Process Improvement Plan • Quality Metrics

 The quality metrics provide the attributes that should be measured and the allowable variations.

• Quality control Measurements

 The results of control quality activities. They are used to analyze and evaluate the quality of the processes of the project.  Project documents 260

T&T • Quality Management and Control Tools  Tools and techniques from plan quality process. - Affinity diagrams - Process decision program charts (PdPc) - Interrelationship digraphs. - Tree diagrams. - Prioritization matrices - Activity network diagrams - Matrix diagrams.

261

T&T • Quality Audits  Review the project to evaluate which activities taking place on the project should be improved and which meet quality standards,  The goal is to improve acceptance of the product and the overall cost of quality.

• Process Analysis  Reviews the quality process to ensure that it is working efficiently & effectively.

262

Outputs • Change requests • Project management plan updates • Project document updates • Organization process assets updates

263

Control Quality Inputs

T&T

Outputs

1.Project Management 1.Seven Basic Quality Plan Control Tools

1. Quality Control Measurements 2. Validated changes

2. Quality Metrics 3. Quality Checklists 4. Work Performance Data

3. Verified Deliverables 4. Work performance info 5. Change requests 6. Project Mgmt Plan Updates

5. Approved Change Requests 6. Deliverables

2. Statistical Sampling 3. Inspection 4. Approved change requests Review

7. Project document updates 8. Org Process Assets Updates

7.Project Documents 8.Organizational process assets 264

Inputs • Project management plan • Work performance measurements • Approved change requests • Deliverables. • Project Documents • Organization process assets

265

T&T Seven Basic Quality Tools 1- Cause and Effect Diagram (Ishikawa or Fishbone)

 Show how different factors relate together & might be tied to potential problems.  Identifies quality problems and trying to uncover the underlying causes.

Example 266

T&T 2.Control Charts 3.Flowcharting  Show how various components relate in a system.  Can be used to predict where quality problems may happen.  Cause & effect diagrams are another type of flowcharting. 4.Histogram or Column Char  Shows how often something occurs, or its frequency,  Pareto chart is one example of a type of histogram.

5.Pareto Charts (80/20 rule)  Pareto Law: 80/20 Rule. 80% of problems come from 20% of the causes.  Shows defects ranked from greatest to least.

267

T&T Used to focus on the problems most likely to change results. It helps to determine the few root causes behind the majority of the problems on a project.

268

Continue T&T 6.Run Chart

 Taking a snapshot of the way things are at a point in time,  The PM can analyze how quality is trending over time. 7.Scatter Diagram  Powerful tool for spotting trends in data,  Uses two variables dependent and independent variable,

269

Continue T&T • Statistical Sampling • Inspection  An inspection is the examination of a work product to determine if it conforms to documented standards. Inspections may be called reviews, peer reviews, audits, or walkthroughs. In some application areas, these terms have narrow and specific meanings. • Approved change requests review  All approved change requests should be reviewed to verify that they were implemented as approved.

270

Outputs • Quality control measurements  resulting documents out from quality control activates. • Validated changes  Any changed or repaired items are inspected and either accepted or rejected (return for rework). • Verified deliverables

 Are inputs to verify scope process.

271

Continue Outputs • Work performance Information • Change requests • Project management plan updates • Project document updates • Organization process assets updates

272

Perform Quality Assurance & Control Quality

273

End

27

275

HR Management

27

277

Human Resource Management • The process that organize and manage the project team, • The project management team is a subset of the project team and called the CORE, EXECUTING, team • Managing the project team includes: 

Influencing the project team,



Professional and ethical behavior.

278

Terms and Definitions • Maslow's hierarchy need theory • Mcgregor - theory x y

• Herzberg's motivation-hygiene theory • McClelland's Human Motivation Theory

279

Maslow's hierarchy need theory

280

Mcgregor - Theory x, y

281

Herzberg's theory

282

McClelland's Human Motivation Theory

283

Develop human Resource Plan • This process defines 

Roles, required skills,



Responsibilities, reporting relationships, and



When to acquire and release project team. Inputs

1.Project Management Plan 2.Activity resource requirements 3.EEF 4.OPA

T&T 1. Org Charts & Position Descriptions 2. Networking 3. Organization al Theory

Outputs 1. Human resource Plan

4. Expert Judgment 5. Meetings 284

Input • Project Management Plan • Activity resource requirements • Enterprise environmental factors

• Organization process assets

285

T&T • Org Charts and Position Description

 Present who will be working on the project and what they will be responsible for doing, including Responsibility availability matrix hierarchical charts (WBS,OBS,RBS), text oriented formats.  Hierarchical type charts.

286

T&T  Matrix based charts (Ex. RAS)

 RACI (Responsible, Accountable, Consultant, Inform)

 Text oriented formats

287

T&T • Networking  Communicating with others within your “network” of contacts, like correspondence, meetings and information conversation.

• Organization Theory  Provides info regarding the way in which people, teams, and organizational units behave.

• Expert Judgement • Meetings

288

Outputs Human Resources Management Plan: It includes:  Roles and Responsibilities  Project Organizations Charts  Staffing Management plan  Staffing acquisition.  Resource calendar.  Staff release plan.  Training needs.  Rewards and recognition.  Compliance with governmental, union regulations.  Safety. 289

Acquire Project Team Inputs 1.Human Resource Mgmt plan 2. EEF 3. OPA

T&T 1. Pre-Assignment 2. Negotiation 3. Acquisition 4. Virtual Teams

Outputs 1. Project Staff Assignments 2. Resource calendars 3. Project management plan updates

5.Multi-Criteria decision analysis

290

Inputs • Human Resource Management Plan • Enterprise environmental factors • Organizational process assets

291

T&T • Pre-Assignment  Staffing done before the running of this process for the sake of project requirements or as a result of organization policy or politics. • Negotiation  It is an important skill for the PM, PM needs to negotiate with functional managers and with project team other project managers and external organizations. • Acquisition  Looking outside the org for resources when they cannot be provided by your organization. • Virtual Teams (tools)  Group of individuals who may or may not see each other in person.

292

T&T • Multi-criteria decision Analysis  Selection criteria are often used as a part of acquiring the project team. By use of a multi-criteria decision analysis tool, criteria are developed and used to rate or score potential team members

293

Outputs • Project Staff Assignments  Each role that was defined should have a resource assigned to it. • Resource calendar  The time they are assigned to work on activities should be documented. • Project management plan updates.

294

Develop Project Team Inputs

T&T

Outputs

1.Human Resources Management Plan

1. Interpersonal skills 2. Training

1. Team Performance Assessment

2. Project Staff Assignments 3. Resource calendars

3. Team-Building Activities 4.Ground Rules 5. Co-location 6. Recognition and Rewards

2. Enterprise environmental factors Update

7. Personnel Assessment Tools

295

Inputs • Human Resource Management • Project staff assignment • Resource calendars

296

T&T • Interpersonal skills  Or what is called “soft skills” like empathy, creativity, group facilitation, understanding and sentiments. • Training  formal or informal training.

• Team building activities  Building relationships among team members by participating in team problems solving.  In theory there are five stages of development a team might go through: 297

Team building activities (THE TUCKMAN MODEL)

298

T&T • Ground Rules • Co-location (War Room) • Recognition and Rewards  Desirable behaviors should be rewarded and recognized,  Win-win rewards is the best choices for team building,  Win-lose rewards such a contest where one team member wins and others do not, can be detrimental to the sense of team. • Personnel Assessment tools 299

Outputs • Team Performance Assessment  Measuring and evaluating how the team is doing, E.g., measure the work performance, the experience the team is acquire. • EEF updates

300

Manage Project Team • project manager can use five types of power to influence his team members as follows: − − − − −

Formal or Legitimate Power Reward Power Penalty Power Expert Power Referent Power

What is the best power of the project manager? 301

Manage Project Team Inputs

T&T

Outputs

1.Human Resource Mgmt Plan 1. Observation & 2. Project Staff Assignments Conversation 3. Team Performance 2. Project Performance

1. Change requests 2. Project Mgmt Plan Updates 3.Project Documents Updates

Assessment 4. Issue log 5. Work Performance Reports 6. OPA

4.EEF updates 5.OPA Updates

Appraisals 3. Conflict Mgmt 4. Interpersonal skills

302

Inputs • Human Resource management plans • Project staff assignments • Team performance assessment

303

Inputs • Issue log An issue log can be used to document and monitor who is responsible for resolving specific issues by a target date. • Work Performance reports • Organizational Process Assets

304

T&T • Observation and Conversation • Project Performance Appraisals PM and other personnel managers on the project meet the people who report to them on the project and provide feedback on their performance.

305

T&T • Conflict Management  Conflict occur between individuals or groups on the project, it could occurs between PMs and Functional Managers.  Methods of conflict Management:

306

Continue T&T • Interpersonal skills  Includes leadership, influencing, and effective decision making.

307

Outputs • Change requests • Project management plan update • Enterprise environmental factors updates

• Organizational Process Assets updates

308

End

30

Communication Management

31

Communication Management • All tasks related to producing, compiling, sending, storing, distributing, and managing project records.

• It is made up of 3 processes to determine what to communicate, to whom, how often, and when to reevaluate the plan. • PMs spend %90-70 of their time communicating with team members and other project stakeholders.

312

Communication Type • Internal and external • Formal (reports, memos) and informal (emails, ad-hoc discussions).

• Official (newsletter, annual report) and unofficial (off the record communications). • Vertical (up and down the organization) and horizontals (with peers). • Verbal and non-verbal (voice inflections, body language).

313

Plan Communication Management Plan Communications Management is the process of developing an appropriate approach and plan for project communications based on stakeholder’s information needs and requirements, and available organizational assets. Inputs

T&T

1.Project Management Plan. 2.Stackholders register. 3.EEF. 4.OPA.

1.Communication Requirement analysis. 2. Communication technology 3. Communication Model.

Outputs 1- Communication Management Plan

4. Communication Method 5. Meetings 314

Inputs • Project Management Plan • Stakeholder register • Enterprise Environmental Factors • Organizational Process Assets

315

T&T • Communication Requirements Analysis  PM should consider the number of communication Channels or paths as an indicator of the complexity of a project’s communication,  Channels = n(n-1)/2 where n=no. of people

316

317

T&T • Communications Technology

 The right tool should be selected for a given communications need.  Factors that can affect the project include: Urgency of the need for information. Availability of technology. Ease of Use. Project Environment. Sensitivity and confidentiality of the information.

318

T&T • Communication Models

319

 Communication Models  The sender is responsible for:  Encode the message clearly  Select a communication method  Send the message  Confirm that it was understood from the receiver

 The receiver is responsible for:  Decode the message  Confirm that the message was understood

320

T&T • Communication Methods Interactive communication: Phone, Meeting Push communications : Email Pull communications : Shared Files • Meetings

321

Outputs • Communications Management Plan In addition to what was described, the communication plan must Identify the project documents that will be created during the course of the project and define how these documents will be shared and archived,

322

Outputs • Communication Management Plan include:  Stakeholder communication requirements.  Information to be communicated, including language, format, content, and level of detail.  Reasons for the distribution of that information.  Time frame and frequency for the distribution of the required information.  Person responsible for communicating the information.

323

• Communication Management Plan include:  Methods or technology used to convey the information.  Escalation process.  Methods for updating and refining the communications management plan.

 Communication constraints.  It can also include guidelines and templates for project status meetings, project team meetings, e-meetings, and e-mail.

324

Outputs

• Project Document Updates  Project schedule,  Stakeholder register.

325

Manage communications  Manage Communications is the process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance to the communications management plan.

Inputs

T&T

1- Communication

1. Communication technology

Management Plan

2. Communication Model.

2.Work performance Reports

3. Communication Method

3.EEF.

4. Information Management Sys.

4.OPA.

5.Performance Reporting.

Outputs 1.Project Communications 2. Project Management Plan updates. 3. Project documents updates 4. OPA Updates

326

Inputs • Communication Management Plan • Work Performance Reports • Enterprise Environmental Factors

• Organizational Process Assets

327

T&T • communication technology • communication Models • communication Methods

• Information Management Systems • Performance reporting

328

Outputs • Project communications  The Manage Communications process involves the activities that are required for information to be created, distributed, received, acknowledged, and understood.

• Project Management Plan updates • Project documents updates • Organizational Process Assets updates

329

Control Communications Control Communications is the process of monitoring and controlling communications throughout the entire project life cycle to ensure the information needs of the project stakeholders are met. Inputs

T&T

Outputs

1. Project Management Plan.

1. Information Management Sys.

2.Comm. Management Plan.

2.Expert Judgement.

3.Issue Log.

3.Meeting.

1. Work Performance Information. 2. Change requests 3. Project Management Plan updates. 4. Project documents updates 5. OPA Updates

4.Work performance data.

5.OPA.

330

Inputs • Project Management Plan • Project communications • Issue Log  Or also called action item log can be used to document and monitor the resolution of issues.  Can be used to facilitate communication and ensure a common understanding of issues. • Work Performance data • Organizational Process Assets 331

T&T • Information Management Systems • Expert Judgment • Meetings

332

Outputs • Work Performance Information • Change Requests • Project Management Plan Updates

• Project Document Updates • Organizational Process Assets Updates

333

END

334

Risk Management

33

Risk Management • The PM is in control and proactively managing events, avoiding as many problems as possible, • The PM must understand how to anticipate and identify areas of risks, how to quantify and qualify them, and how to plan for them, • Risk has two characteristics:  It is related to an uncertain events.  May affect the project for good or for bad.

337

Risk Management •

The risk attitudes of both the organization and the stakeholders may be influenced by a number of factors, which are classified into three themes:

 Risk appetite which is the degree of uncertainty an entity is willing to take on in anticipation of a reward.  Risk threshold which refers to measures along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the

organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk.  Risk tolerance which is the degree, amount, or volume of risk

that an organization or individual will withstand. 338

Plan Risk Management Inputs

T&T

1.Project Management Plan

1. Analytical techniques

2. Project Charter 3. Stakeholder Register 4. Enterprise Environmental Factors 5. Org .Process Assets

2. Expert judgment 3. Meetings

Outputs 1. Risk Mgmt Plan

Again Analytical techniques Enable PM to examine complex relationships between variables 339

Inputs • Project Management Plan • Project Charter

• Stakeholder register • EEF • OPA

340

T&T • Analytical Techniques • Expert Judgment • Meetings

341

Outputs • Risk Management Plan  Methodology: define approach, tools and data sources used for risk management.  Roles and responsibilities: How risk will be managed and by whom.  Budgeting.  Timing.  Categorize:  Definition of Risk probability and impact.

342

Risk Management Plan Include also:

 Probability and impact matrix.  Revised stakeholders’ tolerances.

 Reporting formats.  Tracking

343

Identify Risks Inputs

T&T

1. Risk management Plan 2. Cost management Plan

1. Documentation Reviews 2. Info Gathering Techniques

3. Schedule management Plan 4. Quality management plan 5. Human Resource management plan 6. Scope baseline

3. Checklist Analysis 4. Assumptions Analysis 5. Diagramming Technique 6. SWOT analysis

7. Activity Cost Estimates 8. Activity duration estimates 9. Stakeholder register 10. Project documents 11.Procurements documents

7. Expert judgment

Outputs 1. Risk Register

12.Enterprise Environmental Factors 13. Org Process Assets 344

Inputs • Risk management plan • Cost management plan • Schedule management plan

• Quality management plan • Human resource management plan • Scope baseline

• Activity Cost estimates • Activity duration estimates • Stakeholder register 345

Continue Inputs • Project documents

• Procurement documents  If the project requires external procurement of resources, procurement documents become a key input to the Identify Risks process. • EEF • 0PA

346

T&T • Documents reviews

• Information Gathering Technique  Brainstorming , Delphi technique, Interviewing, Root Cause analysis. • Checklist Analysis  Risk identification checklists are developed based on historical information and knowledge that has been accumulated from previous similar projects and from other sources of information. • Assumptions Analysis  Assumptions should be analyzed and documented and challenged if necessary.

Continue T&T • Diagramming technique  Cause-and-effect or Ishikawa  System or process flow charts • SWOT Analysis (Strength, Weakness, Opportunity, and Threat)

 SWOT Analysis, used to measure each risk’s strengths, weaknesses, opportunities, and threats.  It helps specify the most significant project risk factor. • Expert Judgement

348

SWOT Analysis

349

Outputs • Risk Register  Provides a list of all identified risks on the project.  List of Potential response.  What the possible actions to this risk are.  What categories the risks fall into.  To update the RBS.

350

Risk Register

351

Inputs • Risk management plan • Scope Baseline • Risk Register • Enterprise Environmental factors • Organization process assets

352

T&T • Risk Probability and Impact Assessments/ Probability and Impact Matrix  To determine what the highest priorities, can be assesses by meetings or interviews with experts of risk categories.  Each risk in the risk register is evaluated for its likelihood of occurring and its potential impact on the project.

353

Risk Probability and Impact Assessments

354

T&T • Risk Data Quality Assessment

•

 The data used should be evaluated to determine whether or not it is accurate and of acceptable quality. Risk Categorization  Can be categorized in many ways (i.e:RBS or by project phases)

• Risk Urgency Assessment  Risks that cannot wait,  Determine which risks are the most urgent, requiring immediate attention. • Expert judgment

355

Outputs • Project Documents updates 1.Risk Register Updates.  Relative ranking or priority list of project risks,  Risks grouped by categories,

 Causes of risk or project areas requiring particular attention,  list of risks requiring response in the near-term,  List of risks for additional analysis and response,

 Watch lists of low-priority risks.

2.Assumptions log updates.

356

Perform Quantitative Risk Analysis • Assigns a projected value to (quantify) the risks that have been ranked by qualitative risk analysis. • This value is specified in terms of cost or time.

Inputs

T&T

1. Risk Mgmt Plan 2. Cost Mgmt plan 3. Schedule Mgmt plan 4. Risk Register

1. Data Gathering and Representation Techniques 2. Quantitative Risk Analysis and Modeling Techniques

5. EEF

3. Expert Judgment

Outputs 1. Project documents updates

6. OPA 357

Inputs • Risk management plan. • Cost management plan. • Schedule management plan

• Risk register • Enterprise Environmental Factors • Organization process assets

358

T&T • Data Gathering and Representation Techniques Interviewing - Experts Judgment - Probability distribution.

• Quantitative Risk Analysis & Modeling Techniques  Sensitivity Analysis: analyze the project and determine how sensitive it is to risk.

 Tornado Diagrams: analyse project sensitivity to cost or to other factors.

359

Impact Very low

Cost Variations manageable by virement against internal budget headings

Time Slight slippage against internal targets

Low

Requires some additional funding Slight slippage against key from organisation milestones or published targets

Failure to include certain ‘nice to have’ elements or ‘bells and whistles’ promised to stakeholders

Medium

Requires significant additional funding from organisation

Significant elements of scope or functionality will be unavailable

High

Requires significant reallocation of Failure to meet key deadlines in organisation funds (or borrowing) relation to the academic year or to meet project objectives strategic plan

Failure to meet the needs of a large proportion of stakeholders

Very high

Increases threaten viability of project

Project outcomes effectively unusable

Delay affects key stakeholders and causes loss of confidence in the project

Delay jeopardises viability of project

Quality Slight reduction in quality/scope with no overall impact on usability/standards

360

Tornado Diagrams

361

Quantitative Risk Analysis & Modeling Tech.  Expected Monetary Value Analysis EMV.  Decision Tree Analysis: used to show probability and arrive at a dollar amount associated with each risk.

362

Example

363

T&T  Modeling and Simulation Using Monte Carlo analysis,

Takes details and assembles a big picture, Performed by computer .  Expert judgment

364

Outputs • Project documents updates  Project documents are updated with information resulting from quantitative risk analysis.

365

Plan Risk Response Inputs 1. Risk Mgmt. Plan 2. Risk Register

T&T 1.Strategies for Negative Risks or Threats

Outputs 1. Project Mgmt Plan Updates 2. Project document updates

2. Strategies for Positive Risks or Opportunities 3. Contingent Response Strategies 4. Expert Judgment

366

Inputs • Risk management plan • Risk register

367

T&T • Strategies for Negative Risks or Threats  Avoid : appropriate for undesirable risk

Transfer : transfer it to another party (Transferee the loss associated with risks to a third party) and make him responsible (e.g. insurance),  Mitigate : make it less, minimizing the probability and impact of risks to acceptable level (e.g. construct outside rainy season). 368

T&T • Strategies for Positive Risks or Opportunities  Exploit: trying to remove any uncertainty. Finishing the project early, adding more people to complete early  Share : working with another party how can better utilize the opportunity.  Enhance: seek to increase the opportunity probability.

369

T&T • Contingent Response Strategy  The project team may make one decision related to risk, but make that decision contingent upon certain conditions.  E.g. mitigate a technology risk by hiring an outside firm with expertise, but that decision my be contingent upon the outside firm meeting intermediate milestones related to that risk. • Expert judgment.

370

Outputs • Risk Management Plan Updates • Project Document Updates.

371

Control Risk Inputs

T&T

Outputs

1. Project Mgmt Plan 2. Risk Register 3. Work Performance data

1. Risk Reassessment 2. Risk Audits 3. Variance and Trend Analysis

1. Work performance Info 2. Change requests 3. Project Mgmt Plan Updates 4. Project document updates

4. Performance Reports

4. Technical Performance Measurement 5. Reserve Analysis 6. Meetings

5. Org Process Assets Updates

372

Inputs • Project management plan. • Risk register • Work performance data • Work Performance reports

373

T&T • Risk reassessment  To identify new risks and closing risks that are outdated. • Risk Audits  Focused on overall risk management. • Variance and Trend Analysis  Variance Analysis, focus on the difference between what was planned and what was executed.  Trend Analysis, shows how performance is trending. It shows worst cost performance. 374

T&T • Technical Performance Measurement  Focus on functionality, looking at how the project has met its goals for delivering the scope over time. • Reserve Analysis  Project reserve or contingency can apply to schedule, time or cost. Periodically should be evaluated to ensure that it is sufficient to address the amount of risk the project expects to. • Meetings 375

Outputs • Work Performance Information • Change requests • Project management plan updates • Project document updates. • Organizational process assets updates

376

End

37

Procurement Management

37

Procurement Management Processes performed to obtain goods, services, or scope from outside the organization.

• There are two Procurement primary roles:  Buyer: the organization purchasing or procuring the goods or services from the seller.  Seller: the organization providing or delivering the goods or services to the buyer.

380

Procurement Management Contracts could take one of Three types: Firm Fixed Price Contracts Firm Fixed Price (FFP) Fixed Price Incentive Fee (FPIF) Fixed Price Economic Price Adjustment (FPEPA)

Cost Reimbursable Contracts (CR)  Cost Plus Fixed Fee (CPFF)

 Cost Plus Incentive Fee Contracts (CPIF)  Cost Plus Award Fee Contracts (CAF)

Time and Material Contracts (T&M) Marge of above two contracts types. 381

Procurement Management • Who bears the risk of each contract type? CONTRACT TYPE

WHO PEARS RISK

Firm Fixed Price Contracts

SELLER

Cost Plus Fixed Fee (CPFF)

BUYER

Cost Plus Incentive Fee Contracts (CPIF)

SELLER AND BUYER

Cost Plus Award Fee Contracts (CAF)

SELLER AND BUYER

Time and Material Contracts (T&M)

BUYER

382

Plan Procurement Inputs

T&T

Outputs

1. Project Management Plan 2. Requirements documentation

1. Make-or-Buy Analysis

1. Procurement Mgmt Plan 2. Procurement statements

3. Risk register 4. Activity resource requirements 5. Project schedule 6. Activity cost estimates

2. Expert Judgment 3. Market Research 4. Meetings

of work 3. Procurement documents 4. Source selection criteria 5. Make-or-Buy Decisions

7. Stakeholder Register 8. Enterprise Environmental Factors 9. Org Process Assets

6. Change requests 7.Project documents updates

383

T&T • Make-or-Buy Analysis Look at all of the factors that could sway the decision toward making internally or buying externally, including risk factors, costs, releasing proprietary info, and a host of other decision pointing. • Expert judgment • Market Research

• Meetings

384

Conduct Procurement Obtaining seller responses, selecting a seller, and awarding a contract. A short list of qualified sellers can be established based on preliminary proposal. Inputs

T&T

Outputs

1.Procurement Management plan

1. Bidder conferences

1. Selected sellers

2. Procurement documents

2. Proposal evaluation

2. Agreements

3. Source selection criteria

techniques

3. Resource colanders

5. Seller proposals

3. Independent

4. Change requests

6. Project documents

estimates

5. Project Mgmt plan

7. Make-or-Buy Decision

4. Expert Judgment

updates

8. Procurement Statement of work

5. Advertising

6. Project document updates

9. Org process assets

6. Analytical techniques 7. Procurement Negotiations 385

T&T • Bidder Conference.

• Proposal evaluation techniques Expert judgment. Advertising. Internet search. Procurement negotiations. •

Independent Estimates

• Expert Judgment • Advertising • Analytical techniques

• Procurement negotiations 386

Control Procurement Inputs

T&T

Outputs

1. Procurement Mgmt Plan

1. Contract change control system

1.Work Performance info

2. Procurement Documents

2. Procurement performance reviews

2.Change requests

3. Agreements 4. Approved change requests 5. Work Performance reports 6. Work performance Data

3. Inspections and audits

3. Project mgmt plan Updates

4. Performance reporting

4. Project documents updates

5. Payments systems

5. Org process assets Updates

6. Claims administration 7. Records mgmt system

387

T&T • Contract change control system. • Procurement performance reviews. • Inspections and audits. • Performance reporting. • Payments systems. • Claims administration. • Record management system.

388

Close Procurement Inputs 1. Project Mgmt Plan 2. Procurement Documentation

T&T

Outputs

1. Procurement Audits 2. Procurements negotiations 3. Records Mgmt System

1. Closed procurements 2. Org Process Assets Updates

389

T&T • Procurement Audits. • Procurements negotiations. • Record Management System.

390

End

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Stakeholders Management

39

393

Identify Stakeholders Inputs

T&T

1. Project Charter 2. Procurement Documents

1. Stakeholder Analysis 2. Expert Judgment

3. EEF 4. OPA

3. Meetings

Outputs 1. Stakeholder Register

394

T&T • Stakeholder Analysis  Influence/impact grid: Grouping the stakeholders based on their active involvement (“influence”) in the project and their ability to effect changes to the project’s planning or execution (“impact”) in the project.

395

Outputs • Stakeholder Register  Contains all details related to the identify stakeholders including, but not limited to:

Identification information: name, organizational position, location, role in the project, contact information Assessment information: major requirements, main expectations, potential influence in the project, phase in the life cycle with the most interest, and Stakeholder classification: internal/external, supporter, natural, resistor, etc. 396

Plan Stakeholder mgmt. Inputs 1. Project Mgmt Plan 2. Stakeholder Register 3. EEF 4. OPA

T&T 1. Analytical Technique 2. Expert Judgment 3. Meetings

Outputs 1. 2.

Stakeholder Mgmnt Plan Project Document updates

397

T&T • Expert Judgment

• Meetings • Analytical techniques The engagement level of the stakeholders can be classified as

follows:  Unaware.  Resistant.  Neutral.  Supportive.  Leading.

398

Manage Stakeholder Engagement Inputs 1. Project Mgmt Plan 2. Communication Mgmt Plan. 3. Change Log. 4. OPA

T&T 1. Communication methods 2. Interpersonal skills 3. Management skills

Outputs 1. 2. 3. 4. 5.

Issue Log Change Request Project Mgmt Plan updates. Project documents updates. OPA Updates

399

T&T • Communication Methods • Interpersonal Skills • Management Skills

400

Control Stakeholder Engagement Inputs

T&T

Outputs

1. Project Mgmt Plan

1. Information Management sys.

1. Work performance info.

2. Work performance data

2. Expert Judgement

2. Change Request

3. Change Log.

3. Meetings

3. Project Mgmt Plan

4. Project documents

updates.

4. Project documents updates. 5. OPA Updates

401

End

40