Project Management Professional (PMP) Training &NEW

Project Management Professional (PMP) Training & Certification Mohammad Amawi, PMP, PMOC Orange – Amman May 19th- 30th, 2013

Getting Acquainted • Name • Title • Why are you here? • What do you want to learn from this

course? • A little known fact

Ground Rules • Material & Book(s) • Time & Breaks • Smoking • Mobile Phones • Side Talks • Respect • Ask, ask, ask

How This Training is Delivered • Lectures • Exercises • Group Work • Discussions • Quizzes

Basic definitions PMI • Non-for-profit Professional Association • Started in 1969 • Over 400,000 members worldwide • In more than 160 countries

PMI’s Membership

PMPs Certified

What is PMP®? • A Credential initiated by PMI in 1984 “Project

Management Professional” • Demonstrate to employers, clients and colleagues

that project managers possess project management knowledge, experience and skills to bring projects to successful completion • The most recognized credential in project

management worldwide

Getting Certified Title

CAPM®

PMP®

Full Name

Certified Associate in Project Management

Project Management Professional

Project Role

Contributes to project team

Leads and directs project teams

Eligibility Requiremen ts

Candidate holds a baccalaureate university degree.

Candidate holds a baccalaureate university degree.

25 contact hours of Project Management training including all nine knowledge areas of project management.

4,500 hours of Project Management Experience. 36 non overlapping months of Project Management Experience. At least three years of project experience within last six years of experience. 35 contact hours of Project Management training including all nine knowledge areas of project management

PMP Exam

• 4 Hours Web-Based • 200 Questions • 175 Questions Counted • Passing Score: 107

PMP Exam Structure Area

No. of Questions

%

Initiation

26

13

Planning

48

24

Execution

60

30

Monitoring & Controlling

50

25

Closing

16

8

PMP Exam • Exam tests: • • • •

1234-

Theoretical Knowledge (PMBOK) Personal Skills Practical Experience Ethics & professional responsibility

Project Management Body of Knowledge (PMBOK) • Identifies that subset of the PMBOK that is

generally recognized as a good practice • “Generally Recognized” means the

knowledge and practice described are applicable to most projects most of the time. There is consensus about their value and usefulness. • “Good Practice” means there is a general

agreement that the application of these skills, tools, and techniques can enhance the chances of success over a wide range of projects.

Part I Project Management Fundamentals

What is a Project?

“A Temporary endeavor undertaken to create a unique Product, service, or result”

At Orange “A TTM project is a temporary endeavour undertaken to create a unique product or infrastructure or revamp of existing product or infrastructure ”

1- Temporary • Definite Beginning (T-1)& End (T4) • End reached when: • Objectives reached • Objectives cannot be met • Need for project no longer exists • Projects are not “ongoing” efforts • Does not generally apply to outcomes

2- Unique • Products • Capability • Results • Repetitiveness does not change the

fundamental uniqueness of the project

At Orange

• Unique means that the product or infrastructure is

different, in some distinguishing way from all other products or infrastructures.

3- Progressively Elaborative • Developing in steps, and continuing by

increments. • Plans get improved and clearer as more

information is obtained and estimates are more accurate.

Example: Progressive Elaboration

3- Progressively Elaborative EXAMPLE: BEFORE CONCEPT PHASE Concept

Project Design Implementation Testing Handover

Testing Phase Design Phase Concept Phase

3- Progressively Elaborative EXAMPLE: BEFORE DESIGN PHASE Concept

Project Design

Handover

Testing Phase

Design Phase Concept Phase

3- Progressively Elaborative EXAMPLE: AFTER DESIGN PHASE Concept

Project Design

Handover

Testing Phase

Design Phase Concept Phase

3- Progressively Elaborative EXAMPLE: FINALLY Project Project Handover Project Concept Design Concept Design Implementation TestingHandover Concept Design Handover

Testing Phase

Design Phase Concept Phase

Projects Vs. Operation Operation

Project

Repeating process

One of a kind, temporary process

No clear beginning or ending

Clear beginning and ending

Same output created each time the work is performed

Output is unique

Everyone in work group Requires multi-disciplined performs similar functions team

27

Exercise 1

 Project or Operation

What is Project Management? • Project management is the application of

knowledge, skills, tools and techniques to project activities to meet project requirements. It includes:  Identifying requirements  Establishing clear & achievable objectives  Balancing the competing demands for quality,

scope, time and cost  Adapting the specifications, plans & approach

What Project Management is Not? •

Managing or buying a software.

• Preparing a schedule or a bar chart • Preparing progress reports showing

accomplishments

• Coordinating work and communicating with

stakeholders

• For Engineers ONLY • Project Management is a science and art

Project Management Context • Programs & Program Management • Portfolios & Portfolio Management • Project Management Office - PMO

Program Management • A program is a group of related projects

managed in a coordinated way to obtain benefits and control that cannot be achieved from managing them individually.

• Program Management is the centralized

coordinated management of a program to achieve the program’s strategic objectives and benefits.

Program Management

Proje ct A

Proje ct B

Objective (s)

Projec tC

Proje ct D

Portfolio management • A portfolio represents a collection of active

programs, projects and other that are grouped together to facilitate effective management of that work to meet strategic business objectives. • Portfolio management, therefore, is the centralized

management of one or more portfolios in order to achieve specific strategic business objectives. • Focuses on ensuring that projects and programs

are reviewed to prioritize resource allocation, and that the management of the portfolio is consistent with and aligned to organizational strategies.

Portfolio Management

Projec t (E)

Program A

Projec t (F)

Operations

Project Management Offices (PMOs) • An organizational unit to centralize and coordinate •

the management of projects under its domain

• The PMO can be understood as : • “The organizational entity, staffed with skilled professional

personnel, that provides services in core and supporting areas during the planning and execution of a project/Program” • Can have a wide range of authorities and responsibilities • Takes one of 3 roles: •

1- Providing policies, methodologies and templates

•

2- Provide support and guidance

•

3- Provide managers for projects, and coordinate managing them

PMO Types •

There are Three types of PMOs that may exist in an organization:

 Supportive PMO  Controlling PMO  Directive PMO

Supportive PMO •

The most common type of PMO

•

Its purpose is to empower project managers and teams to deliver their projects more successfully

•

It doesn't control or direct projects, instead it focuses on supporting projects through training, mentoring, administration and reporting.

Controlling PMO •

Offers controlling services (such as project reviews, audits, assessments and governance), in addition to the supporting services to get project back on track

•

Can influence project delivery

•

It can also enforce standards, implement processes and manage overall project risk

Directive PMO •

This is the least common, but sometimes most effective type of PMO

•

It offers directive services, where it does not just support and control projects, but also responsible for actually running them

•

Each of the Project Managers report to the PMO Director as their supervisor. This helps to “corral” all of the project work within an organization, to one department

Project Management Offices (PMOs) •

The PMO may:

 Manage the interdependencies between projects  Help provide resources  Terminate projects  Monitor compliance with organizational processes  Help gather lessons learned  Be more heavily involved during the project initiation  Be part of the change control board  Be a stakeholder

PMOs-Requirements for Success 1. Role should be clearly defined 2. Only one role, don’t try to do it all 3. Commitment and support of top management 4. All should be PMPs 5. Improve project performance through the use of

proper processes and techniques 6. The repercussions of failure!!

The Role of Project Manager

Knowledge

 What the Project Manager knows about

Project Management.

Performance

 What the Project Manager is able to

do or accomplish while applying his/ her project management knowledge

Personal  How the Project Manager behaves

when performing the project or related work.  Encompasses:  Attitude  Core personality characteristics  Leadership

Project Manager Interpersonal Skills

Discussion  What Makes Great Project Managers-

The Alpha Project Managers

A Joke!

PMBOK Reading  Chapter 1

PART II Project Management Framework

Project Lifecycle  A collection of generally sequential and sometimes

overlapping project phases  Phases name and number are determined by:  Management  Nature of the project  Control requirements  Area of application  Can be determined or shaped by the unique

aspects of the organization, industry or technology  Can be documented by a methodology •

Provides the basic framework for managing the

Project Lifecycle Vs. Product Lifecycle  Product lifecycle outlives project

lifecycle  Project lifecycle is part of product lifecycle

Orange Projects Lifecycle Time To Go

T-1 T-1

Time To Market

T0 T0

Opportunity study

T1 T1

T2 T2

Detailed design Development Deployment

No impact analysis in Super Fast Track

T T 4 4

T3 T3 Launch

T1 & T2 in Full Track only

 Market animation with no IT impact => Super Fast Track  Market animation with IT impact => Fast Track  Innovation => Full Track

In Life Management New product launched

T T 4 4

T5 => Performance review on product cluster

TT1 1 T T 5 5

New product idea or a revamp for the existing product is studied

Product killed

T T 6 6

T6 => End of life review per product

Cost & Staffing Level

The project through its lifecycle

Project Phases •

Divisions within a project where extra control is needed to effectively manage the completion of a major deliverable.

•

A deliverable is a measurable, verifiable work product.

•

Each phase ends with a deliverable

•

Number and structure of phases is determined by the organization’s control requirements

•

Some organizations have established policies that standardize all projects.

Project LifecycleSequential Phases Define

Design

Develop

Deploy

Project LifecycleOverlapping Phases

Project LifecycleThe Spiral Model

TTM deliverables •

Marketing Deliverables

•

Customer Journey Deliverables

• Financial & regulatory Deliverables • ITN Deliverables • Business processes Deliverables • Sourcing Deliverables • Project Deliverables

Stakeholders • Persons or organizations who are actively involved in

the project, or whose interests maybe positively or negatively affected by the performance or completion of the project  Project Stakeholders:  Sponsors  Customers/ Users  Vendors/ Suppliers  Project Manager  Project Management Team  Project Team

Stakeholders

5 Steps to Managing Stakeholders • Identify ALL of them • Determine ALL their requirements • Determine their expectations • Communicate with them • Manage their influence

Organizational influence Projects don’t operate in vacuum, they are influenced by organizational: • Culture • Style • Structure

Organization’s degree of project management maturity and systems can influence the project

Functional Organization  Also known as “Silo” organization  Functional managers control resources  Communication happens “vertically”  Good for operation-oriented organizations,

such as banks, government

Functional Organization

Advantages & Disadvantages

Projectized Organization  Also known as “No home”  Systematic approach to project

management  Well defined project management

methodology & lifecycle  Does not support learning & career

development

Projectized Organization

Advantages & Disadvantages

Matrix organization  Also known as “Two Bosses”

 Has three types:  Weak matrix  Balanced matrix  Strong matrix

Weak Matrix

Balanced Matrix

Strong Matrix

Advantages & Disadvantages

Project Management Process Groups &Monitoring Controlling Processes Planning Processes Initiation Processes

Closing Processes

Execution Processes

Project Management Process Groups  A version of Deming’s Cycle  Plan – Do – Check- Act (PDCA)

Interaction Between Process Groups

Level of Process Interaction

Initiatio PlanningExecutionMonitoring & n Process ProcessControl ProcessClosing Process Process Group Group Group Group Group

The Project Life Cycle

Project Management Knowledge Areas  Project Integration Management  Project Scope Management  Project Time Management  Project Cost Management  Project Quality Management  Project Human Resources Management  Project Communication Management  Project Risk Management  Project Procurement Management  Project Stakeholder Management

Project Integration Management  Includes the processes needed to identify, define,

combine, unify & coordinate the various processes and project management activities within the Project Management Process Groups

Project Scope Management  The processes required to ensure that the project

includes all the work required, and only the work required, to complete the project successfully.

Project Time Management  The processes required to manage timely

completion of the project.

Project Cost Management  The processes involved in estimating, budgeting &

controlling costs so that the project can be completed within the approved budget

Project Quality Management  Processes and activities of the performing

organization that determine quality policies, objectives and responsibilities so that the project will satisfy the needs for which it was undertaken.

Project Human Resources Management  Processes that organize, manage, and lead the

project team.

Project Communication Management  Processes required to ensure timely and

appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information.

Project Risk management  Processes of conducting risk management

planning, identification, analysis, response planning, and monitoring and control of the project.

Project Procurement Management  Processes necessary to purchase or acquire

products, services or results needed from outside the project team.

Project Stakeholder Management  The processes required to identify people,

groups, or organizations that could impact or be impacted by the project, to analyze stakeholders expectations and their impact on the project, and develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.

Project Management Process Groups Initiating Process Group

close project 4.6 or phase

monitor and 4.4 control project work perform 4.5 Integrated Change control validate 5.4 scope control scope 5.5

Control 6.6 Schedule

Planning Process Group

direct and 4.3 Manage project work

Executing Process Group

develop 4.2 Project Management plan Plan Scope 5.1 Management collect 5.2 requirements define scope 5.3 create WBS 5.4 6.1Plan Schedule Management Define 6.2 Activities Sequence 6.3 Activities 6.34stimate Activity resources 6.5Estimate Activity durations Develop 6.6 Schedule

Monitoring & controlling Process Group

develop 4.1 Project charter

Knowledge Areas Closing Process Group

Project.4 Integration management

Project scope. 5 management

Project time. 6 management

Project Management Process Groups Initiating Process Group

Planning Process Group

Control 10.3 Communications

Knowledge Closing Areas Process Group

7.1 Plan Cost Management Estimate 7.2 costs Determine 7.3 Budget

Project cost. 7 management

perform 8.2 Quality Assurance

Plan Quality 8.1 Management

Project quality. 8 management

Acquire 9.2 Project Team Develop 9.3 project Team Manage 9.4 Project Team

Plan Human 9.1 Resource Management

Project. 9 Human Resource Management

Manage 10.2 Communication s

Plan 10.1 Communication s Management

Project. 10 Communications Management

Control Costs 7.3

Control 8.3 Quality

Executing Process Group

Monitoring & controlling Process Group

Project Management Process Groups

Initiating Process Group

Planning Process Group

Control 11.6 Risks

12.4 Close Procurements

Executing Process Group

Monitoring & controlling Process Group

Closing Knowledge Process Areas Group

Plan Risk 11.1 Management Identify 11.2 Risks Perform 11.3 Qualitative Risk Analysis Perform 11.4 Quantitative Risk analysis Plan Risk 11.5 Responses

Project risk.11 management

Project. 12 Procurement Management

Administer 12.3 Procurements

Conduct 12.2 Procurements

12.1 Plan Procurement Management

Control 13.4 Stakeholder Engagement

Manage 13.3 Stakeholder Engagement

13.2 Plan Stakeholder Management

Identify 13.1 Stakeholders

Project 13 Stakeholder Management

How do we define success?

 Scope integrity  Achieving quality

m Ti e

 Within budget

Co st

 On time

Quality Scope

Chaos Report

 31.1% of projects will be cancelled before they

ever get completed  52.7% of projects will cost 189% of their

original estimates  Only 16.2% of projects were completed

successfully

Why Projects Fail?

 A subject for discussion

The Opera House Project- Sydney  Original cost estimate (in 1957) was US$ 7

million.  The original completion date was 26 January

1963.  Finally, the Opera House was formally

completed in 1973, having cost $102 million.

•Quiz

The Three Main Ones  Among the following factors, which is the most

important contributor to project failure??!!

Reason 1  Lack of User Involvement – Correctly identify proper user – Develop and Maintain a quality relationship with the client – Create and maintain a platform for communication – Demonstrate results – Educate the client – Consider their feedback – Identify and recruit an evangelist – Conduct primary research – Show respect – Focus on real user needs

Reason 2  No Executive Management Support – Have a simple vision – Get clear commitment – Make fast decisions – Have a decision pipeline – Focus of education – Use measurements – Understand how and why you need to negotiate – Have a well thought plan – Have a “kill switch” – CELEBRATE

Reason 3  Absence of clear business objectives – Make sure everyone understands the project's objectives – Elevator pitch – Consider the big picture – Promote speed and clarity – Have a yardstick – Use RoI – Collaborate with team members – Use peer review – Avoid having “too many cooks” – Do your homework

The Three Pillars  The first three reasons cause the failure of around

50% of failed projects.  They are also the simplest to implement, assess,

and test.

“So Why Projects Still Fail?!”

The Five Deadly Sins of Project Management 1- Ambition Trying to do too much, too fast, and without sufficient resources. 2- Arrogance Ignoring and overriding user input, and forcing implementation of one’s perception of how things should work. 3- Ignorance Do everything that the old system did. 4- Fraudulence Misleading or incomplete information. 5- Abstinence When key people don’t participate

The Seven Dwarfs 1. Poor Scope Management 2. Use of improper tools 3. Lack of project management expertise and skills 4. Poor financial management 5. Incompetent staff 6. No formal methodology/ process 7. Improper process

Poor Scope Management 1. 2. 3. 4. 5. 6. 7. 8.

Optimize Scope Use stepping-stones, not milestones Consider the use of time boxing Clarify crucial rules Manage expectations, it’s crucial Optimize scope through the use of index cards Use role models for guidance Assess project requirements by their yield or gain 9. Consider the risk of each requirement 10. Consider cost, risk and gain collectively in your decision-making

Use of Improper Tools 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Use iterative development style Also, use collaborative development process Collect rapid feedback Test code quality early and often Consider which business medium is the most effective for your organization Break the cycle of releases Consider Extreme, RUP, or Scrum Agile process makes it easy for users Know how to give and receive feedback Do the easy stuff first

Lack of project management expertise 1. Follow project management fundamentals and skills 2. 3. 4. 5.

6. 7. 8. 9. 10.

Keep track of the details Project managers should have basic PM skills Project manager should also be a good leader Project managers should be able to establish and maintain connections Foster sense of pride and accomplishment Make the team feel their contribution matters Embrace basic business skills Always, try to have good judgment The more experience, the better

Poor Financial Management

1. Create accurate estimates 2. Projects are marathons not sprints, use Scrum to make it easier 3. Express the benefits of the project in the best possible financial light 4. Create your budget with stakeholder input 5. Find the break-even point 6. Manage changes well and systematically 7. Build an incentive system to finish the project on time and on budget 8. If the project no longer makes sense, pull the plug 9. Prune your code 10. Create a pipeline of projects, features and functions

And remember… Time is the enemy of all projects, and money is the root of all evil!!!

The 6 Key Success Factors at Orange One process

Project mode

common vocabulary for all projects go from concept to market in phases closed with deliverables quality checks at gates

Board governance

formal, traceable, easy go/no go of stakeholders at gates with commitment on capex & opex simple multi-country governance

Customer advocates

work in multi-department transversal project teams with common objective & management

TT TT M M

interaction with customers to optimize customer journey of products

Integrated roadmap

product & infrastructure roadmap with phased go to market (seasonal launches, fast track cycles)

Common tools

Instantis (documentation, planning, gating) & roadmap builder (business intelligence)

Enterprise Environmental Factors  The Internal and External environmental factors

surrounding and/or influencing the project negatively or positively.  Are Inputs to most of the Project Management

Processes.  Can be categorized into Internal and External

Enterprise Environmental Factors  Culture & structure  Regulations & Standards  Infrastructure  Existing human resources  Personnel administration  Political climate  Commercial databases  Information systems  Stakeholders risk tolerance  Marketplace Conditions

Organizational Process Assets  Include all process related assets in addition to the

organization’s knowledge bases  Input to most of the project management

processes  Outputs of many processes may include updating

or adding to these process assets  Can be categorized into:  Processes and procedures  Corporate knowledge base

Processes and Procedures  Standard Processes.  Templates.  Communication Requirements.  Financial Controls Procedures.  Issue and Defect Management Procedures.  Change Control Procedure.  Risk Control Procedures.  Approval Procedures.

Corporate Knowledge  Process Measurement Database.  Project Files.  Historical Information and Lessons Learned.  Issue and Defect Management Database.  Configuration Management Knowledge Base.  Financial Database.

Role of Project Manager as Integrator- The Alaskan Pipeline  Why was Frank Moolin a big part of the project

success?

Quiz 1

PMBOK Reading  Chapters 2 & 3

PART III INITIATION “Projects don’t fail at the end, “they fail at the beginning” Anonymous

Why projects start?  A market demand,  An Organizational need,  A customer request,  A technological advance,  A legal requirement,  A social demand,  An Ecological impact.

At Orange – Projects Start To…

Get

Acquisition of new customers (increase customer base, new market shares, etc.)

Keep Keep your customer base (loyalty offers, retention, market share defence, etc.)

Increase Increase the ARPU expected You can have a combination of more than one objective, select the predominant one.

What did the Cheshire Cat say?

"If You Don't Know Where You're Going, Any Road Will Get You There."

Initiation Processes Integration Develop Project Charter

Communication Identify Stakeholders

Develop Project Charter  The process of developing a document that

formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholders needs and expectations.

What is a Project Charter?  A document that formally authorizes a project or a

phase and documents initial requirements that satisfy the stakeholders needs and expectations  Projects are chartered and authorized external to

the project

Why a charter is needed?  Defines the reason of the project  Assigns the project manager and his/ her authority

level  Linking the project to the strategy and ongoing

work of the organization  Helps in starting the planning for the project

Facts about the project charter  A must for all projects and/ or phases  Communicate the project purpose or justification,

high level objectives, project and product requirements and initial risks.  Should be clear enough, yet broad to a level that

the charter doesn’t change over the project’s life.

Develop Project Charter Inputs Project Statement of Work (SOW) Business Case Agreements

Tools & Techniques

Expert Judgment Facilitation Techniques

Enterprise Environmental Factors Organizational Processes Assets 

Outputs Project Charter

Project Statement of Work  A narrative description of products or services to be

supplied by the project.  References:  Business need.  Product scope description.  Strategic plan.  For external projects, provided by customer as part of a bid document.  For internal projects, provided by sponsor or initiator.

Business Case  A document that provides necessary information

from a business perspective on whether or not the project is worth the investment

Agreements  MoUs  SLAs  Letters of Agreement  Letters of Intent

Expert Judgment  Stakeholders.  Consultants.  Industrial groups.  Professional and technical associations.  Other units within organization.  Subject matter experts (SMEs)  Project management office (PMO)

Facilitation Techniques  Brainstorming  Conflict Resolution  Problem Solving  Meetings

Contents of project Charter  Purpose or justification  Project Description  Project and Product Requirements  Acceptance Criteria  Initial Risks  Summary Milestones  Estimated Budget  Project Manager Authority Level  Approval Requirements  Name & authority of the person(s)

authorizing the project charter

At Orange- Pre-Project Objectives  Take GO/NO GO decision for design and market

launch  Validate the objectives, business plan, project plan, expected results until T3  Allocate resources and budget to realize project objectives  Validate the main ITN, business process, and customer journey orientations.  Establish and commit (all contributors) on T3 objectives (market lunch review)  Confirm process (TTM full track, fast track, or super fast track )

Project Charter

 Read the Attached Project Charter Sample

Exercise 2  Project Charter

Identify Stakeholders Integration Develop Project Charter

Communication Identify Stakeholder s

Identify Stakeholders Inputs

Tools & Techniques

 Project Charter

Stakeholder Analysis

 Procurement Documents

Expert Judgment

 Enterprise Environmental Factors

Meetings

 Organizational Process Assets

Outputs Stakeholder Register

Stakeholder Analysis  The process of systematically gathering and

analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the projects.

3 Steps to Managing Stakeholders 1. Identify Your Stakeholders 2. Prioritize Your Stakeholders 3. Manage Your Stakeholders

Step1- Identify Stakeholders  Identifying all stakeholders impacted by the project

and documenting relevant Information regarding their interests, involvement, and impact on the project success.  It is essential to identify all stakeholders to increase the likelihood of project success.  Should be done as early as possible.

Identify Stakeholders Purpose  Enables the project manager to focus on the

relationships necessary to ensure the success of the project.

Stakeholder Register  The Stakeholder Register is used to identify those people

and organizations impacted by the project and document relevant information about each stakeholder.  Includes all details related to the identified stakeholders .

 Identification information: Name, organizational position, location, role in project, contact information.  Assessment information: Major requirements, main expectations, potential influence, phase.  Stakeholder classification: Internal/ external, supporter/ neutral/ resistor, etc.

Step2- Prioritize Your Stakeholders  Identify the potential impact or support each

stakeholder could generate  Classify them according to:

1. 2. 3. 4.

Power/Interest Grid Power/ Influence Grid Influence/ Impact Grid Salience Model

Power/ Interest Grid High

Keep

Manage

Satisfied

Closely

Power

Monitor Low

(Minimum Effort)

Keep Informed

Low Interest High

Step3: Assess Your Stakeholders  Anticipate how key stakeholders react in

different situations, in order to plan how to influence them to enhance their support and mitigate potential negative impact.

Exercise 3  Stakeholder Analysis

PMBOK Reading  Chapter 4

- Section 4.1  Chapter 13 - Section13.1

Quiz 2

PART IV PROJECT PLANNING “The Victorious military is first victorious and after that does battle. The defeated military first does battle and after that seeks victory.” Sun Tzu- Art of War

Develop Project Management Plan  Documenting the actions necessary to define,

prepare, integrate, & coordinate all subsidiary plans into a project management plan.

Develop Project Management Plan Tools & Inputs Inputs

 Project Charter  Outputs from Planning Processes  Enterprise Environmental Factors  Organizational Process Assets

Techniques

 Expert Judgment

Outputs  Project Management Plan

Project Management Plan  Integrates and consolidates all of the subsidiary

management plans and baselines from the planning processes.  Includes but not limited to:  Project management processes selected by the project management team.  Level of implementation of each selected process.  Descriptions of tools & techniques  How the selected processes will be selected to manage the specific project  How work will be executed to accomplish objectives  A change management plan

Project Management Plan contents  Subsidiary Plans          

 Baselines

 Schedule Project Scope Management Plan  Cost performance Requirements Management  Scope Plan Schedule Management Plan Cost Management Plan Quality Management Plan Process Improvement Plan Staffing Management Plan Communication management Plan Risk Management Plan Procurement Management Plan

Project Management Plan Vs. Project Documents Project Management Plan

Project Documents

Change Management Plan

Activity Attributes

Project Staff Assignment

Communications Management Plan

Activity Cost Estimates

Project Statement of Work

Configuration Management Plan

Activity Duration Estimates

Quality Checklists

Cost Baseline

Activity List

Quality Control Measurements

Cost Management Plan

Activity Resource Requirements

Quality Metrics

Human Resource Management Plan

Agreements

Requirements Documentation

Process Improvement Plan

Basis of Estimates

Requirements Traceability Matrix

Procurement Management Plan

Change Log

Resource Breakdown Structure

Scope Baseline

Change Requests

Resource Calendars

Quality Management Plan

Forecasts

Risk Register

Requirements Management Plan

Issue Log

Schedule Data

Risk Management Plan

Milestone List

Seller Proposals

Schedule Baseline

Procurement Documents

Source Selection Criteria

Schedule Management Plan

Procurement Statement of Work

Stakeholder Register

Scope Management Plan

Project Calendars

Team Performance Assessment

Stakeholder Management Plan

Project Charter

Work Performance Reports

 • • •

Orange’s Integrated Roadmap roadmap fed by marketing / technical strategy & budget clear view of priorities & development capacity before individual T-1 opportunity studies help finalize selection of best opportunities roadmap is compatible with resources of all contributors

TT M  • • • •

 roadmap based on TTM project information • T3 objectives are project commitments approved by board • “roadmap builder” tool interfaced with Instantis will enable real-time integrated roadmap based on project information

roadmap synchronises product & infrastructure infrastructure modifications often embarked in product development infrastructure projects for large & multi-product infrastructure traced product dependencies Seasonal launches & fast track cycles are best practice

PMBOK Reading  Chapter 4

- Section 4.2

PART V PROJECT SCOPE PLANNING

Planning Processes

Scope Planning Plan Scope Management

Collect Requirements

Define Scope

Create WBS

Project Scope Vs. Product Scope  Project Scope: The work that needs to be

accomplished to deliver a product, service, or result with the specified features and functions  Product Scope: The features and functions that characterize a product, service, or result

Plan Scope Management Plan Scope Management

Collect Requirements

Define Scope

Create WBS

Plan Scope management  The process of creating a scope management plan

that documents how the project scope will be defined, validated and controlled.  It provides guidance on how scope will be

managed throughout the project.

Plan Scope Management Inputs  Project Management Plan  Project Charter  Enterprise environmental factors  Organizational Process Assets

Tools & Techniques  Expert Judgment  Meetings

Outputs  Scope Management Plan  Requirements Management Plan

Project Scope Management Plan  Part of Develop Project Management Plan  The outcome of a planning effort that precedes

performing the processes of project scope management  Documents how the scope will be defined, verified,

controlled, and how the work breakdown structure (WBS) will be created and defined.  Can be formal or informal depending on needs of

the project.

It Includes:  Processes for:

– Detailing the project scope statement. – WBS creation, maintenance, and approval. – Formal verification and acceptance of the completed project deliverables. – Control how requests to change the detailed project scope statement will be processed.

Requirements Management Plan (RQM)  A Plan that documents how requirements will be

analyzed, document and managed (tracked, reported, prioritized…) throughout the project life cycle.

Requirements Management Plan (RQM) Components  How Requirement activities will be planned, tracked

and reported  Configuration Management Activities  Requirements Prioritization Process  Product Metrics  Traceability Structure

Collect Requirements Plan Scope Management

Collect Requirements

Define Scope

Create WBS

Collect Requirements  The process of defining and documenting

stakeholders’ needs to meet project objectives.  Requirements include the quantified and documented needs and expectations of the sponsor, customer, and other stakeholders.  WBS, cost, schedule and quality planning are all built upon these requirements.  Need to be elicited, analyzed, and recorded in enough detail to be measured once project execution begins

Collect Requirements  Project Requirements include business

requirements, project management requirements, delivery requirements, etc.  Product Requirements include information on technical requirements, security requirements, performance requirements, etc.

Collect Requirements Inputs  Scope Management Plan  Requirements Management Plan  Stakeholder Management Plan  Project Charter  Stakeholder Register

Tools & Techniques  Interviews  Focus Groups  Facilitated Workshops  Group Creativity Techniques  Group Decision Making Techniques  Questionnaires and Surveys  Observations  Prototypes  Benchmarking  Context Diagram  Document Analysis

Outputs  Requirements Documentatio n  Requirements Traceability Matrix

Interviews  Talking to stakeholders directly.  Asking questions and recording answers  “One-on-one”, or multiple interviewers and/ or

interviewees.  Interviewing:  Experienced participants  Stakeholders  Subject matter experts

Focus Groups

 Bring together prequalified stakeholders and

subject matter experts.  Trained moderator guides the group through an interactive discussion.  More conservational than one-on-one

Facilitated Workshops  Focused sessions that bring key cross-functional

stakeholders together to define product requirements  Helps in building trust, foster relationships, and improve communication.  Reveal and resolve issues more quickly than individual sessions.  Examples: Joint Application Development (JAD) & Quality Function Deployment (QFD)

Group Creativity Techniques  Brainstorming  Nominal group Technique  Delphi Technique  Idea/ Mind Mapping  Affinity Diagram

Mind Map Example

Group decision Making Techniques  Unanimity  Majority  Plurality  Dictatorship

Questionnaires & Surveys  Written sets of questions.  Aim to quickly accumulate information from a broad

group of respondents.  Most appropriate with broad audience, when quick turnaround is needed, and where statistical analysis is appropriate.

Observations  Viewing user performance  Also called “Job shadowing”  Helpful for detailed processes when people that use

the product have difficulty or reluctant to articulate their requirements  Can uncover hidden requirements

Prototypes  Provide a working model of the expected product

before actually building it.  Support the concept of progressive elaboration through use of iterative cycles of mock-up creation, user experimentation, feedback generation and prototype revision.

Benchmarking  Involves comparing actual or planned practices,

such as processes and operations, to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measuring performance.  Compared organizations can be external or internal.

Context Diagrams  Visually depict the product scope by showing a

business system (process, equipment, computer system…etc.), and how people and other systems (actors) interact with it.  Context diagrams show inputs to the business

system, the actor(s) providing the input, the outputs of the business system, and the actor(s) receiving the output.

Context Diagrams

Requirements Documentation  The document including the stakeholders’

requirements to meet the business need for the project.  Usually starts at a high level and then gets elaborated within the life cycle of the project and according to the RQM

Requirements Documentation Elements  Business need or opportunity  Functional requirements and non functional

requirements  Quality requirements  Acceptance criteria  Business rules  Impacts to other organizational areas, and other entities inside or outside the performing organization  Support and training requirements  Requirements assumptions and constraints

Requirements Traceability Matrix  A tool that links project objectives to requirements to

deliverables to product features.  The structure and level of details of the traceability matrix to be used shall be documented in the RQM as different projects can use different structures of traceability.   This tool can be as simple as a table or as complex as a software program.

Requirements Traceability Matrix Contents  Business needs, opportunities, goals, and

objectives  Project objectives  Project scope, WBS deliverables  Product design  Product development  Test strategy and test scenarios  High level requirements to more detailed requirements

Example of Requirements Traceability Matrix

Define Scope Plan Scope Management

Collect Requirements

Define Scope

Create WBS

Define Scope  The process of developing a detailed description of

the project and the product  Critical to project success.  Builds upon the major deliverables, assumptions, and constraints documented in the project initiation.

Define Scope Inputs  Scope Management Plan

Tools & Techniques  Expert Judgment

 Project Charter

 Product Analysis

 Requirements Documentation

 Alternatives Identification

 Organizational Process Assets

 Facilitated Workshops

Outputs  Project Scope Statement  Project Document Updates

Product Analysis  Translating high-level product description into

tangible deliverables  Includes techniques such as:  Product breakdown  System analysis  Requirements analysis  System engineering  Value engineering  Value analysis

Alternatives Identification  A technique to generate different approaches to

execute and perform the work of the project.  Includes techniques such as:  Brainstorming  Lateral thinking  Pairwise comparison

Project Scope Statement  The project scope statement describes in details

the project deliverables, and the work required to create those deliverables.    

Common understanding among stakeholders, Enables more detailed planning, Guides the project team’s work during execution, Provides the baseline for evaluating changes.

Project Scope Statement Contents  Product scope description  Product acceptance criteria  Project deliverables  Project exclusions  Project constraints  Project assumptions

Constraints  Applicable restrictions that will affect the

performance of the project.  Factors that affect a scheduled activity or when an activity can be scheduled.

Assumptions  Are factors that, for planning purposes, are

considered to be true, real, or certain.  Affect all aspects of project planning.  Part of the project’s progressive elaboration.  Generally involve a degree of RISK.  Must be identified, documented and validated.

Exercise 4  Scope Statement

Create WBS Plan Scope Management

Collect Requirements

Define Scope

Create WBS

Create WBS  The process of subdividing project deliverables and

project work into smaller, more manageable components.  WBS is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives, and create the required deliverables.  Each descending level represents an increasingly detailed definition of the project work.  Organizes and defines the total scope of the project.

WBS Types

 Phases- Deliverables  Deliverables-Phases  Combination of both

Example: WBS (Phases – Deliverables)

Example: WBS (Deliverables–Phases)

Create WBS Inputs  Scope Management Plan  Project Scope Statement  Requirements Documentation  Enterprise Environmental Factors  Organizational Process Assets

Tools & Techniques

Outputs

Decomposition Expert Judgment

Scope Baseline  Project Document Updates

Decomposition  Subdivision of project deliverables into smaller,

more manageable components until the work and deliverables are defined to the work package level.  The level of composition varies per deliverable/ phase with the size and complexity of project.

Work Package

 The “Work Package” level is the lowest level in the

WBS.  Work Package is the point at which the cost and activity duration can be reliable, estimated and packaged.

Decomposition Involves  Identifying deliverables and related work.  Structuring and organizing the WBS.  Decomposing upper levels into lower level detailed

components.  Developing and assigning identification codes.  Verifying that the degree of decomposition is

necessary and sufficient.

WBS Dictionary Contents  Code of account identifier  Statement of work  Responsible organization  Schedule milestones  Associated activities  Resources required  Cost estimates  Quality requirements  Acceptance criteria  Technical references  Contract information

Scope Baseline  Scope statement  WBS  WBS dictionary

WBS Dictionary  A document generated by the “Create WBS”

process that supports the WBS.  Provides more detailed description of the components in the WBS., including work packages and control accounts.

WBS is not  Organizational Breakdown Structure (OBS)  Bill Of Materials (BOM)  Risk Breakdown Structure (RBS)  Resource Breakdown Structure (RBS)

A Video

 Why is WBS important?

Exercise 5

 Create WBS

Quiz 3

PMBOK Reading

 Chapter 5

- Sections 5.1-5.4

PART VI PROJECT TIME MANAGEMENT Planning Processes

Project Time Planning Plan Schedule Management

Sequence Activities

Estimate Activity Resources

Define Activities

Estimate Activity Durations

Develop Schedule

Plan Schedule Management Plan Schedule Management

Sequence Activities

Estimate Activity Resources

Define Activities

Estimate Activity Durations

Develop Schedule

Plan Schedule Management  The process of establishing policies, procedures,

and documentation for planning, developing, managing, executing, and controlling the project schedule.  The key benefit of the process is that it provides

guidance and direction on how the project schedule will be managed throughout the project.

Plan Schedule Management Inputs  Project Manageme nt Plan  Project Charter  Enterprise Environme ntal factors  Org. Process Assets

Tools & Techniques  Expert Judgment  Analytical Techniques  Meetings

Outputs  Schedule Manageme nt Plan

Analytical Techniques  Scheduling Methodology  Scheduling Tools & Techniques  Estimating Approaches  Formats  Project Management Software

Schedule Management Plans  A component of the project management plan.  Establishes the criteria and activities for

developing, monitoring, and controlling the schedule.  Can be formal or informal  Can be highly detailed or broadly defined based on the needs of the project

Schedule Management Plans  Can include the following:  Project schedule model development  Level of accuracy  Units of measure  Organizational procedures links  Project schedule management maintenance  Control schedule  Rules of performance measurement  Reporting formats  Process description

Define Activities Plan Schedule Management

Sequence Activities

Estimate Activity Resources

Define Activities

Estimate Activity Durations

Develop Schedule

Define Activities  The process of identifying the specific actions to be

performed to produce the project deliverables.  Decomposed from the “work packages” at the WBS.  Activities are the smaller components that represent the work necessary to complete the work package.  Activities provide basis for estimating, scheduling, executing, and monitoring and controlling the project work.

Define Activities Inputs  Schedule Managem ent Plan  Scope Baseline  Enterprise Environm ental factors  Org. Process Assets

Tools & Technique s  Decomposit ion  Rolling Wave Planning  Expert Judgment

Outputs  Activity List  Activity Attributes  Milestone List

Rolling Wave Planning

 Progressive detailing of the project management plan

Activity List  A comprehensive list including all schedule

activities required for the project.  Includes:  Activity identifier  Description of each activity

Sequence Activities Plan Schedule Management

Sequence Activities

Estimate Activity Resources

Define Activities

Estimate Activity Durations

Develop Schedule

Sequence Activities

 Identifying & documenting dependencies among

schedule activities  Can be done using software or manually.

Precedence Diagramming Method (PDM)  Also known as Activity-On-Node  Activities are represented in boxes (Nodes),

and arrows show dependencies

Dependencies Relationships A

 Finish-to-Start

B

 Finish-to-Finish

A

 Start-to-Start

B A

 Start-to-Finish

A B

B

Dependencies Relationships  Use the following Rule of Thumb to understand the

relationships better:  Activity A should _ _ _ _ _ _

Before activity B can _ _ _ _ _ _

Types of Dependencies  Mandatory  Discretionary  External  Internal

Applying Leads & Lags

 Lead: The overlapping time  Lag: The waiting time  Float/ Slack: The time an activity can be delayed

(wait) without affecting the project finish date

Sequencing Activities Inputs  Schedule Management Plan  Activity List  Activity Attributes  Milestone List  Enterprise Environmenta l Factors  Project Scope Statement  Organizationa l Process Assets

Tools & Technique s  Precedenc e Diagramm ing Method (PDM)  Dependen cy Determina tion  Applying Leads and Lags

Outputs  Project Schedule Networkin g Diagram  Project Documents Update

Estimate Activity Resources Plan Schedule Management

Sequence Activities

Estimate Activity Resources

Define Activities

Estimate Activity Durations

Develop Schedule

Estimate Activity Resources  Estimating the type and quantities of resources

required to perform each schedule activity

Types of Resources  Material  People  Equipment

Estimate Activity Resources Inputs

 Schedule Managemen t Plan  Activity List  Activity Attributes  Resource Calendars  Risk Register  Activity Cost Estimates  Enterprise Environmen t Factors  Org. Process Assets

Tools & Technique s  Expert Judgment

 Alternatives Analysis  Published Estimating Data  Bottom-up Estimating  Project Managemen t Software

Outputs  Activity Resource Requiremen ts  Resource Breakdown Structure (RBS)  Project Document updates

Estimate Activity Durations Plan Schedule Management

Sequence Activities

Estimate Activity Durations

Define Activities

Estimate Activity Resources

Develop Schedule

Estimate Activity Durations  Approximating the number of work periods needed

to complete individual activities with estimated resources.  Uses information on:  Activity scope of work  Required resource types  Estimated resource quantities  Resource calendar  Progressively elaborative  Takes elapsed time into account

Estimate Activity Durations Inputs

 Schedule Management Plan  Activity List  Activity Attributes  Activity Resource Requirements  Resource Calendars  Project Scope Statement  Risk Register  Resource Breakdown Structure  Enterprise Environment Factors  Org. Process Assets

Tools & Techniques  Expert Judgment  Analogous Estimating  Parametric Estimating  Three Point Estimates (PERT)  Group DecisionMaking Techniques  Reserve Analysis

Outputs  Activity Duration Estimates Project Document Updates

Schedule Uncertainty & Risk Analysis Process  Schedule risk analysis uses information about the

 

 

uncertainty of activity durations to help answer the following questions: What is the likelihood of finishing project as scheduled? How much contingency is needed to establish a completion date with a probability of success that is acceptable to the stakeholders? Which activities are the most likely to delay the project? What actions can be taken to control risks in the schedule?

Schedule Uncertainty & Risk Analysis Process  If estimating activity duration involves a great deal of

uncertainty, a commonly used technique is the application of probabilistic estimates

Three Point (PERT) Estimates  Time Expected (te)= (to+4xtm+tp)/6  to: Optimistic Estimate  

tm= Average Estimate tp= Pessimistic Estimate

 Based on a the assumption of Beta distribution

Beta Distribution

Activity Optimistic Duration  The total number of work periods in calendar

units assigned to perform the schedule activity, considering all of the variables that could affect performance, and is determined to be the shortest possible activity duration  It is determined by answering the question  How long will it take in the best case scenario?

Activity Pessimistic Duration  The total number of work periods in calendar

units assigned to perform the schedule activity, considering all of the variables that could affect performance, and is determined to be the longest possible activity duration  It is determined by answering the question  How long will it take in the worst case scenario?

Activity Most Likely Duration  The total number of work periods in calendar

units assigned to perform the schedule activity, considering all of the variables that could affect performance, and is determined to be the most probable activity duration  It is determined by answering the question:  How long will it most likely take?

Standard Deviation & variance  Activity Std. Deviation (σactivity) = P – O

6  Variance =

(P – O)2 6

 Project Std Deviation (σ project)=

√ ∑ Variance Critical Path Activities

Estimates Certainty  Confidence level in the value is approximately 50%  Confidence level in the value + SD is approximately

85%  Confidence level in the value + 1.645 × SD is approximately 95%  Confidence level in the value + 2 × SD is approximately 98%  Confidence level in the value + 3 × SD is approximately 99.9%

Critical Path  The longest path from the beginning to the end of

the project. Activities on the critical path cannot be delayed without delaying the project.  There can be more than one critical path (riskier)  Project Manager should focus on critical path.

Network Diagram B 3 A 2

C 1

H 2

D 4 E 3

F 2

G 4

Calculating Critical Path  Specify the individual activities.  Determine the sequence of activities.  Draw the network diagram.  Estimate activity completion time.  Identify critical path.

Start & Finish Dates  ES: Earliest start time.  EF: Earliest finish time.  LF: Latest finish time.  LS: Latest start time.

Forward Pass  Schedule Calculations That Identify The Early Start and

Finish Dates of Tasks and The Project.  ES = EF of Preceding Task (latest if more than one).  EF = ES + Duration.

Backward Pass  Schedule Calculations That Identify The Late Start

and Finish Dates of Tasks and The Project.  LF = LS of succeeding Task (earliest if more than

one).  LS = LF - Duration

Float  Float or slack is the amount of time that a task in

a project network can be delayed without causing a delay to:  Subsequent tasks (free float)  Project completion date (total float)  Total Float = LF – EF  OR

LS - ES  Free Float = Min ES (Succeeding Task) – EF 

Critical Path B 3 A 2

C 1 H 2

D 4 E 3

F 2

G 4

Critical Path 3

B 3

3

5

6

5

15

C 1

6

15

16 1

1

A 2

2

6

2

6 3

7

E 3

D 4

9 16 9

5

10

9

10

F 2

11

12

11

12

G 4

15

15

H 2

17

17

Develop Schedule Plan Schedule Management

Sequence Activities

Estimate Activity Durations

Define Activities

Estimate Activity Resources

Develop Schedule

Develop Schedule

 The process of analyzing activity sequences,

durations, resource requirements, and schedule constraints.  Provides specific start and end dates for activities.  Iterative process.

Develop Schedule Inputs

 Schedule Management Plan  Activity List  Activity Attributes  Project Schedule Network Diagrams  Activity Resource Requirements  Resource Calendars  Activity Duration Estimates  Project Scope Statement  Risk Register  Project staff assignment  Resource Breakdown Structure  Org. Process Assets  Enterprise Environmental Factors

Tools & Techniques  Schedule Network Analysis  Critical Path Method  Critical Chain Method  Resource Optimization Techniques  Modeling techniques  Leads & Lags  Schedule Compression  Scheduling Tool

Outputs  Project schedule  Schedule baseline  Schedule data  Project Calendar  Project Management Plan (updates)  Project document (updates)

Resource Optimization Techniques  Resource Leveling  Resource Smoothing

Resource leveling

 Used when shared or critical resources are only

available at certain times, or in limited quantities, or to keep resource usage at a constant level.  Usually changes the critical path.

Modeling Techniques  What-If Scenario Analysis  Simulation

What-If Scenario Analysis  An analysis of the question “what if the situation

represented by scenario ‘X’ happens”.  Can be used to assess the feasibility of the schedule under adverse conditions, and in preparing contingency and response plans.

Exercises 6 & 7

 Critical Path Calculations

Quiz  For the project in Exercise 7-a:

1- What is the Standard Deviation of the Project? 2- How much would you estimate the duration of the project? If you want to be: a. 85% confident b. 95% confident c. 98% confident

Schedule Compression

 Fast Tracking  Crashing

Fast Tracking

 A schedule compression technique in which phases

or activities normally performed in sequence are performed in parallel.  Can result in rework and increased risks.

Crashing

 A schedule compression technique in which cost

and schedule tradeoffs are analyzed to determine how to obtain the greatest amount of compression for the latest incremental cost.  Can result in increased cost.

Exercise 8

 Crashing

A Subject for Discussion

 After all of this, why do projects take more time to finis

Student Syndrome  Student syndrome refers to the phenomenon that

many people will start to fully apply themselves to a task just at the last possible moment before a deadline. This leads to wasting any buffers built into individual task duration estimates

Parkinson Law

 Work expands so as to fill the time available for its

completion

Multi-Tasking

Critical Chain Method  A schedule network analysis technique that

modifies the project schedule to account for limited resources (according to PMBOK…).  Combines deterministic and probabilistic

approaches.

Project schedule

 Milestone Chart  Bar Chart  Project schedule network chart

Schedule Baseline

 Project schedule with baseline start dates and

baseline finish dates.

PMBOK Reading

 Chapter 6

- Sections 6.1 – 6.6

PART VII PROJECT COST MANAGEMENT Planning Processes

Project Cost Management Plan Cost Management

Estimate Costs

Determine Budget

Control Costs

Project Cost management  On smaller projects, cost estimating and cost

budgeting are so tightly linked that they can be done together and by one person.  The work done in cost management is preceded by a cost planning effort by the project management team.  Techniques such as Life-Cycle Costing & Value Engineering can improve decision making and reduce cost while improving quality and performance of project deliverables.

Life-Cycle Costing  A decision making tool that involves tradeoffs

between short term project costs and long term product or service operational costs.  It examines the effects of project decisions not only on project activities, but also on the cost of maintaining, using and supporting of the product, service, or result of the project.

Plan Cost Management Plan Cost Management

Estimate Costs

Determine Budget

Control Costs

Plan Cost Management  The process of establishing policies, procedures,

and documentation for planning, managing, expending, and controlling project costs.  The key benefit of the process is that it provides

guidance and direction on how the project schedule will be managed throughout the project.

Estimate Costs Inputs  Project Management Plan  Project Charter  Enterprise Environmenta l Factors  Org. Process Assets

Tools & Techniques  Expert Judgment  Analytical Techniques  Meetings

Outputs  Cost Management Plan

Cost Management Plan  Part of Develop Project Management Plan  The outcome of a planning effort that precedes

performing the processes of project cost management  Sets out the format and establishes the criteria for

planning, structuring, estimating, budgeting, and controlling project costs.  Documents cost management processes and their

associated tools and techniques

Cost Management Plan Establishes  Level of accuracy  Level of precision  Units of measure  Organizational procedures links  Control thresholds  Rules of performance measurement  Reporting formats  Process descriptions  Additional details

Estimate Costs Plan Cost Management

Estimate Costs

Determine Budget

Control Costs

Cost Estimating Vs. Cost Budgeting  Cost Estimating: Developing an approximation of the

costs of the resources needed to complete project activities  Cost Budgeting: Aggregating the estimated costs of

individual activities of work packages to establish a cost baseline

Estimate Costs Inputs  Cost Management Plan  Scope Baseline  Project Schedule  Human Resource Plan  Risk Register  Enterprise Environmenta l Factors  Org. Process Assets

Tools & Techniques  Expert Judgment  Analogous Estimating  Parametric Estimating  Bottom-up estimating  Three-Point Estimates  Reserve analysis  Cost of Quality  Project Management Estimating Software  Vendor Bid Analysis  Group DecisionMaking

Outputs  Activity Cost Estimates  Basis of Estimates  Project Document Updates

Analogous Estimating

 Using cost of previous similar projects as basis for

estimating.  Less Costly BUT less accurate.  Used when information is limited (early phases).  Reliable when previous projects are similar in fact, not just in appearance.

Parametric Estimating

 Uses relationship between historical data and

certain parameters (cost per square meter, cost per meter, etc).

Bottom-Up Estimating  A method for estimating a component of work.  The cost is estimated for individual work packages

or activities, and they are then summarized or “rolled-up” to higher levels.  Cost and accuracy are influenced by the size and complexity of the individual package or activity.

Vendor Bid analysis

 Includes analysis of what the project should cost,

based on responsive bids from qualified vendors.

Activity Cost Estimates

 A quantitative assessment of the likely costs of the

resources required to complete project activities.

Basis of Estimates

 Documentation of basis of estimates (how it was

developed).  Documentation of assumptions made.  Documentation of any known constraints.  Indication of range of estimates.  Indication of confidence level of the final estimate.

Cost Elements  Human Resources – Labor  Hour rate, fringe benefits, overtime, overhead, per

diem  Equipment & Software  Depreciation, purchase cost, support & Maintenance  Facilities  Rent, depreciation, utilities, admin overhead  Supplies  Stationary, food, leisure, gas for cars, tickets  Special expenses

Cost Can Be…  Direct.  Indirect.  Fixed.  Variable.

Determine Budget Plan Cost Management

Estimate Costs

Determine Budget

Control Costs

Determine Budget

 The process of aggregating the estimated costs to

individual activities or work packages to establish an authorized cost baseline.

Determine Budget Inputs

 Cost Managemen t Plan  Scope Baseline  Activity Cost Estimates  Basis of Cost Estimates  Project Schedule  Risk Register  Resource Calendars  Agreements  Organization al Process Assets

Tools & Techniques  Cost Aggregation  Reserve Analysis  Expert Judgment  Historical Relationships  Funding Limit Reconciliatio n

Outputs  Cost Performance Baseline  Project Funding Requirement s  Project Document Updates

Funding Limit Reconciliation  The expenditure of funds should be reconciled with

any funding limits on the commitment of funds for the project.  Variance between the funding limits and the planned expenditures sometimes necessitate the rescheduling of work to level out the rate of expenditures.  Can be accomplished by placing imposed date constraints for work into the project schedule.

Cost Performance Baseline  Time-phased budget at completion (BAC) used as

basis against which to measure, monitor, and control overall cost performance.

Cost Performance Baseline

Contingency Reserves

 Contingency reserves is usually percentage of total

estimate or based on risk analysis, to account for the risks that are “known unknowns” of the project.  Under the control of the project manager.

Management Reserves

 Budgets reserved for unplanned, but potentially

required changes to project scope. These are the risks that are “unknown unknowns”.  Under the control of organization’s management.

Cost Budgeting 8.Cost Budget

$104 0

7.Manageme nt Reserve

$140

6.Cost Baseline

$900

5.Contingenc y Reserve

$225

4. Project 3. Control Account 2. Work packages 1. Activities

$675 $400

$275

$75

$100

$25 $25 $25

$100

Net Present Value

 The present value of total benefits (income or

revenue) minus the cost over many time periods.  Allows for comparison of many projects, to select the best to initiate.  If NPV is +ve: the investment is a good choice.  The project with highest NPV is the best.

Net Present Value

 NPV=  (FV/ (1+i)n)  Where FV= Future Value  i= Interest Rate  n= Number of period intervals

Internal Rate of return (IRR)  Is the interest rate at which the costs of the

investment lead to the benefits of the investment.  The project with highest IRR is the best.

Payback Period

 The period of time required for the return on an

investment to "repay" the sum of the original investment.  For example, a $1000 investment which returned $500 per year would have a two year payback period.  The project with lowest payback period is the best

Quiz 4

PMBOK Reading

 Chapter 7

- Sections 7.1 - 7.3

PART VIII PROJECT QUALITY MANAGEMENT Planning Processes

What is Quality?  Conformance to Requirements  Fitness of use  According to PMBOK  “The degree to which a set of inherent

characteristics fulfill requirements.”

Project Quality Management Plan Quality Management

Perform Quality Assurance

Control Quality

Quality Management & Project Management  Both disciplines recognize the importance of:  Customer Satisfaction  Prevention over inspection  Management Responsibility  Continuous Improvement

Quality Concepts

 Quality vs. Grade  Precision vs. Accuracy  Quality Assurance vs. Quality Control

Quality Vs. Grade  Quality is the “Degree to which a set of inherent

characteristics fulfill requirements”  Grade is “ Category assigned to products or services having the same functional use but different technical characteristics”.  Low grade does not necessarily cause a problem, but low quality does.

Precision vs. Accuracy

 Precision is consistency that the value of repeated

measurements are clustered and have little scatter.  Accuracy means that the measured value is very close to the true value.  Precise measurements are not necessarily accurate. A very accurate measurement is not necessarily precise.

Quality Assurance vs. Quality Control  Quality Assurance is applying the planned,

systematic quality activities to ensure that the project employs all processes needed to meet requirements.  Quality Control is the action of monitoring specific

project results to determine whether they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance.

Project Quality Management Plan Quality Management

Perform Quality Assurance

Control Quality

Plan Quality Management  Identifying which quality Standards are relevant to

the project and determining how to satisfy them  Scope statement  Quality policies  Quality standards & regulations in the company, industry.  Quality is planned, designed and built in- not

inspected in.

Plan Quality Inputs

 Project Management Plan  Stakeholder Register  Risk Register  Requirements Documentatio n  Enterprise Environmental Factors  Org. Process Assets

Tools & Techniques Cost/ Benefit Analysis Cost of Quality (COQ) Seven Basic Quality Tools Benchmarking Design of Experiments Statistical Sampling Additional Quality Planning Tools Meetings

Outputs  Quality Management Plan  Quality Metrics  Quality Checklists  Process Improvement Plan  Project Document Updates

Seven Basic Quality Tools 1. Cause & Effect Diagram 2. Flowcharts 3. Checksheets 4. Pareto Diagrams 5. Histograms 6. Control Charts 7. Scatter Diagrams

Cause & Effect Diagram

 Also known as “Fish-Bone Analysis” or “Ishikawa

Analysis”  Used to identify the problem, discover the underlying causes leading to it, and develop solutions and preventive actions.

Cause & Effect Diagram

Flowcharting  Diagram that shows the relationship between

different elements in a system of processes  Used to assist team efforts in identifying potential quality problems and the possible affects of those problems.  Cause & Affect Diagram  Process flowcharts

Checksheets Category Attribute 1

Attribute 2

Attribute 3

Attribute 4

Strokes

Frequency

Control Charts  Graphic display of results, over time, of a process.  Used to determine if the process is “in control”.

When a process is “in control” it should not be adjusted.  “Rule of Seven”

Histogram  A vertical bar chart showing how often a particular

variable state occurred.

Histograms

Pareto Diagrams  Histogram, ordered by frequency of occurrence, that

shows how many results were generated by type or categories of identified cause.  Rank ordering is used to guide corrective actions – fix the problems that are causing the greatest number of defects first.  Relates to Pareto’s Law & Principle of 80/20

Pareto Diagram

Scatter Diagram

 A Scatter diagram shows the relationship between

two variables.  Allows to study and identify the possible relationship between changes observed in two variables.

Scatter Diagram

BENCHMARKING  The evaluation of a groups’ business or project

practices in comparison to those of other groups or projects.  Includes a number of quantitative or qualitative attributes that can be assessed in both the benchmark and the subject.

Cost of Quality  Prevention costs – up front costs to design and plan

for quality.  Appraisal costs – associated with evaluation of

results to make sure that they conform to quality.  Internal Failure costs – Cost of re-work associated

with items that did not pass the appraisal.  External Failure costs – Cost of failures found by the

customer.

Cost of Quality  Conformance:  Training.  Research.  Surveys.  Nonconformance:  Scrap.  Rework.  Warranty.  Inventory.

Check Lists  Job aid that prompts employees to perform

activities according to a consistent quality standard.  Could be for quality assurance or quality control.  Two types of Checklists:  Imperative  Interrogative

Design of Experiments

 A structured, organized method that is used to

determine the relationship between the different factors affecting a process and the output of that process.  It involves designing a set of ten to twenty experiments, in which all relevant factors are varied systematically.  The results of these experiments are analyzed, to help identify optimal conditions

Quality Management Plan  Describes how the project team will implement the

performing organization’s quality policy

Quality Management Plan Contents  Purpose  Quality Policy/ Standards  Quality Assurance Procedures & Test  Quality Control Procedures & Tests  Roles & Responsibilities

Process Improvement Plan  Process Boundaries  Process Configuration  Process Metrics  Targets for Improved Performance

PMBOK Reading

 Chapter 8

- Section 8.1

PART IX PROJECT HUMAN RESOURCE MANAGEMENT Planning Processes

Project Human resource Management Plan Human Resource Management

Acquire Project Team

Develop Project Team

Manage Project Team

Project Human resource Management Plan Human Resource Management

Acquire Project Team

Develop Project Team

Manage Project Team

Plan Human Resource Management  Identifying, documenting, and assigning project

roles, responsibilities, required skills and reporting relationships, as well as creating the staffing management plan.  Identifying who we want, at which skill level, when, and for how long. Specifying their roles, and responsibilities and interactions.

Develop Human Resource Plan Inputs  Project Management Plan  Activity Resource Requirement s  Enterprise Environment al Factors  Org. Process Assets

Tools & Techniques  Organization Charts & Position descriptions  Networking  Organization al Theory  Expert Judgment  Meetings

Outputs  Human Resource Management Plan

Organizational Charts & Position Descriptions  Hierarchical- type Charts  Matrix-based Charts  Text-Oriented Formats

Organizational Charts & Position Descriptions

Responsibility Assignment Matrix (RAM) Activity

Ann

Ben

Carlos

Dina

Ed

Define

A

R

I

I

I

Design

I

A

R

C

C

Develop

I

A

R

C

C

Test

A

I

I

R

I

R= ResponsibleA=Accountable C=Consult I=Inform

Organizational Theory

 Provides information regarding the ways that

people, teams and organizational units behave.

Halo Effect  The tendency to rate high or low on all factors due

to the impression of a high or low rating on some specific factor.

Maslow’s Hierarchy

Hertzberg Theory  Hygiene Factors:  Working conditions.  Salary.  Personal life.  Relationships at work.  Security.  Status.  Motivating Agents:  Responsibility.  Self Actualization.  Professional Growth.  Recognition.

McClelland AcquiredNeeds Theory  Also called:  Three Need Theory  Learned Needs Theory.  “An individual's specific needs are acquired over

time and are shaped by one's life experiences”.  A person's motivation and effectiveness in certain job functions are influenced by these three needs.  Most of these needs fall under:  Achievement.  Affiliation.  Power.

Expectancy Theory  High performers remain loyal and motivated as long

as rewards meet expectations.

Theory X-Theory Y  Describes how managers deal with subordinates.  Describe two opposing sets of assumptions about

employees.

Theory X  Employees:  Dislike work and try to avoid it.  Lack ambition, creativity, and problem solving skills.  Prefer direction and avoid responsibility.  Are motivated by Maslow’s lower needs.  Are self centered and don’t care about organization.

Theory Y  Employees:  Meet expectations with proper motivation.  Are committed to organization goals.  Are creative and innovative.  Can take responsibility.  Are motivated by higher levels of Maslow .

Theory Z  Supplements Theory Y.  Assumes that trust and commitment on part of

organization will yield higher motivation and performance by employees.  Rooted in Japanese culture.

Human Resource Plan  Provides guidance on how project human resources

should be defined, staffed, managed, controlled, and eventually released.

Human Resource Plan Contents  Roles and Responsibilities  Project Organization Charts  Staffing Management Plan

Staffing Management Plan  Staff acquisition  Resource Calendars  Staff Release Plan  Training needs  Recognition & Rewards  Compliance  Safety

At Orange Teamwork in multidisciplinary project  • • • • •

one TTM project manager product manager for product Fast Track & Super Fast Track trained project manager for Full Track & Fast track cycles authority on project team & project steering committee manages project budget commits on T3, quality & value creation

TTM  • • • • •

one TTM project team teamwork to achieve objectives every deliverable has an owner collocation when feasible departments contribute within project one sponsor per project

 one objective • project team incentive based on it

Exercise 9

 Prepare RAM/RACI

PMBOK Reading

 Chapter 9

- Section 9.1

PART X PROJECT COMMUNICATION MANAGEMENT Planning Processes

Project Communications Management Plan Communications Management

Manage Communications

Control Communications

Plan Communications Management Plan Communications Management

Manage Communications

Control Communications

Consequences of Miscommunication

Plan Communication  The process of determining the project stakeholder

    

information needs and defining a communication approach. Who needs what information, When will they need it, In which format, How will it be given to them, How frequently.

Communication Body of Knowledge  Communication Process  Choice of Media  Documentation Skills  Presentation Skills  Meeting Management  Clutter, Noise, & Barriers

Effective Communication  Effective Communication  Non Verbal  Para lingual  Feedback  Effective Listening  Feedback  Active Listening  Para lingual

Communication Methods Method

When Used

Formal Written

Complex Problems, PM Plans, Charter, Long Distance Communication

Formal Verbal

Presentations, Speeches

Informal Written

Memos, e-mails, notes

Informal Verbal

Meetings, Conversations

Plan Communications Management Inputs  Project Management Plan  Stakeholder Register  Enterprise environment al factors  Organization al Process Assets

Tools & Techniques  Communicati on Requirements Analysis  Communicati on technology  Communicati on Models  Communicati on Methods  Meetings

Outputs  Communicatio ns Management Plan  Project Documents Updates

Communication Requirements Analysis  Determining the communication requirements of the

project stakeholders.  Defined by combining the type and format of information needed with an analysis of the value of that information.  Project resources are expended only on communicating information that contribute to success, or where a lack of communication can lead to failure.

Number of Communication Channels  N (N-1)/2

Communication technology  Factors that affect the project communication     

technology: Urgency of the need for information. Availability of technology Expected project staffing Duration of the project Project Environment

Communication Models Message

Encode Sender

Decode Noise

Acknowledge Message

Medium Noise

Decode

Noise

Feedback – Message

Receiver Encode

Communication Models  Interactive  Push  Pull

Communication Management Plan  Stakeholder communication requirements  Information to be communicated  Reason for distribution  Responsibility  Recipients  Methods and technologies used  Frequency  Resources allocated for communication (including time

and budget)  Escalation process  Method for updating  Glossary of terminology  Information flow in the project (flow chart)  Communication constraints

Communication Matrix What

Why

By Whom

Recipie nt

When

How

Status report

Performan ce reporting

PM

Sponsor/ Steering Committe e

Weekly basis

Email

Minutes of meeting

Reporting decisions

PC

Steering Committe e

After each meeting

Email

Risk forms

Report & document risks

Any PM stakeholde r

As needed

Email

Risks log

Updating risks log

Risk Manager

Every two weeks

Meeting & email

Steering Committe e

A Video  Do you communicate effectively?

Exercise 10

 Develop A Communication Matrix

PMBOK Reading

 Chapter 10

- Section 10.1

PART XI PROJECT RISK MANAGEMENT Planning Processes “There are risks and costs to a program of action. But they are far less than the longrange risks and costs of comfortable inaction” John F. Kennedy

Is Risk Good Or Bad?

Risk…

Risk ‫مجازفة‬ Negative

Positive

Threat

Opportunity

Risk Definition  Risk: an uncertain event that, if it occurs, has a

positive or negative effect on a project’s deliverables.

Project Risk Management  The systematic process of identifying, analyzing,

and responding, monitoring, and controlling project risks

Project Risk Planning Plan Risk Management

Identify Risks

Plan Risk Responses

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Plan Risk Management Plan Risk Management

Identify Risks

Plan Risk Responses

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Plan Risk Management  Deciding how to conduct risk management

activities for a project.

Plan Risk Management Inputs  Project Management Plan  Project Charter  Stakeholder Register  Enterprise Environment al factors  Org. Process Assets

Tools & Technique s  Analytical Techniques  Expert Judgment  Meetings

Outputs  Risk Managemen t Plan

Risk Management Plan

 Describes how risk management will be structured

and performed on the project.  A subset of the project management plan.

Risk Management Plan  Methodology.  Roles and responsibilities.  Budgeting.  Timing.  Risk categories.  Definitions of risk probability and impact.  Probability and impact matrix.  Revised stakeholders’ tolerances.  Reporting formats.  Tracking.

Risk Categories

Definition of Risk Probability & Impact

Impact Scale  Cardinal  Linear  Non-Linear  Ordinal

Impact Scale  Cardinal Linear (0.1, 0.3, 0.7, 0.9)  Cardinal Non-Linear (.05, .1, .2, .4, .8).  Cardinal Non-Linear is used to reflect focus on high

risks.  Ordinal (Very Low, Low, Medium, High, Very High)

Probability Scale

 Cardinal Linear (0.05, 0.1,0.2…etc.)  Ordinal (Very unlikely, unlikely, moderate, likely,

very likely, almost certain)

Probability-Impact Matrix  Each risk is rated on its probability of occurring and

impact on an objective if it does occur.  The matrix shows low, moderate or high risks.  Risk Score= risk probability x risk impact

Probability-Impact Matrix (Cardinal)

Probability-Impact Matrix (Ordinal)

Identify Risks  Determining which risks may affect the project and

documenting their characteristics.

Identify Risks Plan Risk Management

Identify Risks

Plan Risk Responses

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Identify Risks Inputs  Risk Management Plan  Activity Cost Estimates  Activity Duration Estimates  Scope Baseline  Stakeholder Register  Cost Management Plan  Schedule Management Plan  Quality Management Plan  Human Resource Plan  Project Documents  Procurement Documents  Enterprise Environmental Factors  Org. Process Assets

Tools & Techniques

Outputs  Risk Register

 Documentation Review  Information Gathering Techniques  Checklist Analysis  Assumptions analysis  Diagramming Techniques  SWOT Analysis  Expert Judgment

Documentation Review  Structured review of project documentation,

including plans, assumptions, previous project files, contracts and other information at project level and detailed scope levels.

Information Gathering Techniques

 Brainstorming  Delphi Technique  Interviewing  Root cause analysis

Brainstorming

 A group creativity technique designed to generate

a large number of ideas for the solution of a problem.  Everyone is allowed to express ideas freely and without criticism.

Delphi Technique  A way to reach a consensus of experts who

participate anonymously.  A facilitator uses a questionnaire to solicit ideas about the important risks.  Eliminates biasness and influence of individuals

Interviewing  Interviewing experienced project participants,

stakeholders, and subject matter experts to identify risks.

Root Cause Analysis  Also known as “Fish-Bone Analysis” or “Ishikawa

Analysis”  Used to identify the problem, discover the underlying causes leading to it, and develop solutions and preventive actions.

Root Cause Analysis

Checklist Analysis  Based on historical and project information.  Must be exhaustive (very difficult).  Important to review at project closure to improve on

the checklist for future projects.  One of the easier more common first steps.  Can be grouped into categories.

Assumptions Analysis  Review project assumptions.  Explores the validity of assumptions as they apply

to the project.  Identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions.

SWOT Analysis  Internal Factors  Strengths.  Weaknesses.  External Factors  Opportunities.  Threats.

Risk Register  A document that contains the outcomes of risk

planning.  At this stage includes:  List of identified risks.  List of potential scenarios.  Risk triggers

Perform Qualitative Risk Analysis  Prioritizing risks for further analysis or action by

assessing and combining their probability of occurrence and impact.  Assesses the priority of identified risks using their relative probability or likelihood of occurrence.

Perform Qualitative Risk Analysis Plan Risk Management

Identify Risks

Plan Risk Responses

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Perform Qualitative Risk Analysis Inputs  Risk Management Plan  Risk Register  Risk Management Plan  Project Scope Statement  Organizational Process Assets

Tools & Techniques

 Risk Probability and Impact Assessment  Probability and Impact Matrix  Risk Data quality assessment  Risk Categorization  Risk Urgency Assessment  Expert Judgment

Outputs  Project Documents Updates

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 responses in the near-term.  List of risks for additional analysis and responses.  Watchlists of low-priority risks.  Trends in qualitative risk analysis results.

Perform Quantitative Risk Analysis  The process of numerically analyzing the effect of

identified risks on overall project objectives.  Performed on risks that have been prioritized by the qualitative analysis.

Outcomes of Quantitative Risk Analysis  Quantify possible outcomes and their probability.  Assess probability of achieving a specific objective.  Identify risks requiring most attention.  Identify realistic and achievable targets.  Determine best decision under uncertainty.

Perform Quantitative Risk Analysis Plan Risk Management

Identify Risks

Plan Risk Responses

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Perform Quantitative Risk Analysis Inputs  Risk Register  Risk Management Plan  Cost Management Plan  Schedule Management Plan  Enterprise Environment al Factors  Organization al Process Assets

Tools & Techniques  Data Gathering and Representati on Techniques  Quantitative Risk Analysis and Modeling Techniques  Expert Judgment

Outputs  Project Documents Updates

Data Gathering and Representation Techniques  Interviewing.  Probability distributions.

Quantitative Risk Analysis and Modeling Techniques

 Sensitivity Analysis  Expected Monetary Value Analysis  Modeling and Simulation

Sensitivity Analysis  Helps to determine which risks have the most

potential impact on the project.  It examines the extent to which the uncertainty of

each project element affects the objectives being examined when all other uncertain elements are held at their baseline value.

Expected Monetary Value (EMV)  Statistical concept that calculates the average

outcomes when the future includes scenarios that may or may not happen (i.e. analysis under uncertainty).  The EMV of opportunities will generally be

expressed in positive values while those of threats in negative values.  Calculated by multiplying the value of each possible

outcome by its probability of occurrence, and adding them together.

Expected Monetary Value (EMV)  EMV = Σ Probability X Impact  All possible  outcomes  of a decision

Work Packag e

Probability

Impact

EMV

A

10%

-$ 20,000

-$2,000

B

30%

$45,000

$13,500

C

68%

-$18,000

-$12,240

Total

-$ 740

Decision Tree Analysis

 Graphical means of displaying all available options,

their probability, and their impact, to reach the final project objective.

Decision Tree Analysis EMV In house = (1000 – 150) * 0.5 + ( -30 – 150) * 0.5 = $ 335

$335

$550

EMV out source = (1000 – 250) * 0.8 + ( 0 – 250) * 0.2 = $ 550

Modeling & Simulation  Uses Monte Carlo Technique  A computerized technique that uses sampling from a

random number sequence to simulate characteristics or events or outcomes with multiple possible values.  Used to generate probable outcomes based on estimates processed / iterated thousands of times.

Modeling & Simulation  Provides probable project results and information for

project decision-making.  For Cost Risk Analysis, use cost estimates.  For Schedule Risk Analysis, use the schedule network diagram and duration estimates.  Illustrates the likelihood of

achieving specific cost / schedule targets.

Monte Carlo Simulation

Monte Carlo Simulation Mean=$46.67m

Probability (Cumulative)

100% 75% 50% 25% 12% 0% $41m $50m Cost $30m $38.75m $47.5m $56.25m

$65m

Plan Risk Responses  The process of developing options and actions to

enhance opportunities an to reduce threats to project objectives.

Plan Risk Responses Plan Risk Management

Identify Risks

Plan Risk Responses

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Plan Risk Responses Inputs Risk Management Plan Risk Register

Tools & Techniques

Outputs

 Strategies for Negative Risks or Threats

 Project Management Plan updates

 Strategies for Positive Risks or Opportunities  Contingent Response Strategies  Expert judgment

 Project Documents Updates

Responses for Negative Risks (Threats)  Avoidance.  Transference.  Mitigation.  Acceptance.

Avoidance  Changing project plan to eliminate the risk or

condition or to protect the project objectives from its impact.

Transference  Shifting some or all of the negative impact, along

with ownership of the response to a third party.  Examples of transference:  Insurance  Warranties  Guaranties  Performance bonds  Transfers risk, but does not eliminate it.

Mitigation

 Reducing probability and/ or impact of risk to an

acceptable level.  Does not eliminate risk completely.  Mitigates probability and/ or impact.

Acceptance  Deciding not to change the project plan, to deal

with a risk, or being unable to identify suitable response strategy.  Includes active and passive acceptance:  Active acceptance: developing a contingency plan if risk occurs.  Passive acceptance: no action is taken until risk happens.

Responses for positive risks (Opportunities)  Exploit (vs. Avoid).  Share (vs. Transfer).  Enhance (vs. Mitigate).  Accept. (The same)

Outcomes From Risk Response Planning  Residual Risk: Those that remain after avoidance,

transfer or mitigation responses have been taken.  Secondary Risk: That arise as a direct result of

implementing a risk response.  Contingency reserve needed: The amount of buffer

needed to reduce the risk of over runs.

At Orange

Exercise 11

 Which Risk Response is This?

Exercise 12

 Risk Identification & Analysis

PMBOK Reading

 Chapter 11

- Section 11.1 - 11.5

Quiz 5

PART XII PROJECT PROCUREMENT MANAGEMENT Planning Processes

Project Procurement Management  The processes necessary to purchase or acquire

products, services or results from outside the project team.  Includes the contract management and change control processes required to develop and administer contracts.  Includes also administering any contracts issued by an outside organization (the buyer) that is acquiring the project from the performing organization (the seller).

Project Procurement Management  The organization, can be the buyer or seller of the

product, service or result under a contract.  Contract can be called:  Agreement.  Subcontract.  Purchase order.

Project Procurement Management  Seller can be called:  Contractor  Subcontractor  Vendor  Service provider  Supplier  Buyer can be called:  Client  Customer  Service requester  Purchaser

Seller in a project

Bidder

Selected Source

Contractor, Supplier or Vendor

Project Procurement Management Plan Procurement Management

Conduct procurements

Control Procurements

Close Procurements

Plan Procurements Management Plan Procurements Management

Conduct procurements

Control Procurements

Close Procurements

Plan Procurements  The process of documenting project purchasing

decisions, specifying the approach, and identifying potential sellers.  Should be accomplished during the scope definition effort to specify:  Whether to procure or not?  How to procure?  What to procure?  How much to procure?  When to procure?

Project Manager’s Authority in Procurement  It depends on the type of the contracting

environment:  Centralized Contracting Environment  There is a procurement department & a procurement manager who handle all procurements  The project Manager contacts the procurement manager when he/she needs help regarding procurement  Decentralized Contracting Environment  There’s no procurement department  The project manager hires a procurement manager to work full time on procurement & he will be reporting directly to the Project Manager

Centralized Contracting Environment

Disadvantages

Advantages



Because they are part of the procurement department that focuses only on procurement, they have high level of expertise



It provides its employees with continuous improvement, training & shared lessons learned



They are more efficient & helpful in understanding the manager’s requirement in procurement



Employees have clear & defined career path in procurement profession



One procurement manager may work on many projects, so the attention will be divided among many procurement projects



It may be more difficult for the project manager to obtain contracting help when needed



The project manager will not have a full authority in the procurement project

Decentralized Contracting Environment

Advantages

Disadvantages



The project manager has easier access to contracting expertise because the procurement manager is a member of the team



There is no “home” department for the procurement manager to return to after the project is completed



The procurement manager has more loyalty to the project



It’s more difficult to maintain a high level of contracting expertise in the company because there’s no procurement department



There may be an inefficient use of procurement resources in projects across the organization



There may be a little standardization of procurement practice from one project to the next



No career path as a procurement manager

Plan Procurements Inputs

 Project Management Plan  Requirements Documentation  Risk Register  Activity Resource Requirements  Project Schedule  Activity Cost Estimates  Stakeholder Register  Enterprise Environmental Factors  Organizational Process Assets

Tools & Techniques  Make-or-Buy Analysis  Expert Judgment  Contract Types

 Meetings

Outputs  Procurement Management Plan  Procurements Statement of Work  Make-or-Buy Decisions  Procurement Documents  Source Selection Criteria  Change Requests  Project Documents Updates

Make-or-Buy Analysis  A technique used to determine whether particular

work can best be accomplished by the project team or must be purchased from outside sources.  If buy: Purchase or lease?  Should consider all related costs; direct and indirect.

Contract Types  Fixed price  Cost reimbursable  Time and material

Fixed Price Contracts  The most common type.  A total lump sum price against a well-defined

product.  Three types:  Firm Fixed Price Contracts (FFP)  Fixed Price Incentive Fee Contracts (FPIF)  Fixed Price with Economic Price Adjustment

Contracts (FP-EPA)

Fixed Price Contracts Advantage s:  The most common type.  The buyer knows the price from the beginning.  Risk is on the seller

Disadvantag es:

 The buyer must prepare a detailed SOW ( more

work on the buyer)  The seller might try not to do everything according to the SOW if he started loosing money  More cost on the buyer

Cost reimbursable Contracts  Paying the seller the actual cost, plus a fee.  Three types:  Cost-plus-fixed-fee (CPFF)  Cost plus incentive fee (CPIF)  Cost plus award fee (CPAF).

Cost reimbursable Contracts Advantages:  No detailed SOW.  Less cost on the buyer than the FPC

Disadvantag es:

 Total cost is unknown  Risk is on the buyer  More work on the buyer ( since he has to audit the

seller’s invoices )

Time & Material Contracts  Hybrid type of contractual agreement.  Contain aspects of both cost-reimbursable and

fixed-price types.  They are open ended, but on certain rates.

Time & Material Contracts Advantages :

 Quick to create  Duration brief  Used when expat acquisition & staff augmentation

Disadvantag es:  Only good in small projects  Needs daily oversight & reports from the buyer

( more work)

Which Type is Better?  Depends on:  How well defined the contract statement of work is.  The amount and frequency of change expected.  The level of effort and expertise the buyer can

devote to managing the seller.  Industry standards for the types of contract used.  Amount of market competition.  Amount of risk.

Procurement Documents  A buyer-prepared formal request sent to each

Seller.  The Basis upon which a seller prepares a bid for the requested products.  RFP/ RFQ/RFI/IFB are used to solicit proposals to meet procurement needs.  Statement of Work (SOW): procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the item(s).  Statement of Objective (SOO): term used for a procurement item that is presented as a problem to be solved.

Procurement Documents (RFP/ RFQ/RFI/IFB ) & the procurement SOW Once the contract type is selected 









has been created, the buyer can put together the procurement documents that describe their needs Request for proposal (RFP): sometimes it’s called request for Tender, it requests a detailed proposal on how the work will be accomplished, who will do it, company experience, price, Technical requirements, etc & it allows the company to detect benefits & risks at early stage.. ( usually used with CR contracts) Invitation for Bid ( IFB, or request for bid RFB): just to request a total price to do all the work. (usually used with FP contracts) Request for Quotation (RFQ): request a price quote per item, hour, meter, or other unit of measure, used when price is the main factor ( usually used with T&M) Request for Information (RFI): is simply looking for information , it might be used before procurement documents are created, the received information could help the company to identify the required in order to send RFQ, RFP or IFB

(steps for preparing RFP) 1

Collect Requirement from all stakeholders 2

Procurement SOW must be as clear & concise as possible and it must describe all the work and activities the seller is required to complete

3

Define scope Of the project Prepare a detailed SOW

4

Prepare RFP

How to write (RFP)  RFP usually includes: Company Background

Project Definition

 which include a short company overview such as a brief

history , industry background, company size, etc..

 It is crucial for the vendor and project team to understand the underlying business case for the project; that is, why the project is being attempted. Also understand deliverables expected from the project by the vendor

Project Requirements

 which include Technical requirements, functional requirements, etc…

 Audience

  Information about the und users

(RFP Form-Example)

RFP Form-Example

Source Selection Criteria  Can be only price if an  off-the-shelf product.

 They are included in the

procurement documents to give the seller an understanding of the buyer’s needs

 Other selection criteria take  into consideration:  Understanding of needs.  Overall life-cycle cost  Technical capability  Risk  Management approach  Technical approach  Warranty  Financial capability  Production capacity  Past performance  References  IP rights



They help the seller on how to prepare the bid



They become the basis by which the buyer evaluates the bids

Quiz 6

PMBOK Reading

 Chapter 12

- Section 12.1

PART XIII PROJECT STAKEHOLDER MANAGEMENT Planning Processes

Project Stakeholder Management Identify Stakeholders

Plan Stakeholder Management

Manage Stakeholder Engagement

Control Stakeholder Engagement

Plan Stakeholder Management Identify Stakeholders

Plan Stakeholder Management

Manage Stakeholder Engagement

Control Stakeholder Engagement

Plan Stakeholder Management  The process of developing appropriate

management strategies to effectively engage stakeholders through the project life cycle, based on the analysis of their needs, interests, and potential impact on project success.  It provides a clear, actionable plan to interact with project stakeholders to support the project’s interests.

Plan Risk Responses Inputs Project Management Plan Stakeholder Register Enterprise Environmental Factors Organizational Process Assets

Tools & Techniques  Expert Judgment  Meetings  Analytical Techniques

Outputs  Stakeholder Management Plan  Project Documents Updates

Analytical Techniques The engagement level of stakeholders can be classified as follows:  Unaware Unaware of project and potential impacts  Resistant Aware of project and potential impacts and resistant to change  Neutral Aware of project yet neither supportive nor resistant  Supportive Aware of project impacts and supportive for change  Leading Aware of project impacts and actively engaged in ensuring the project is a success

Stakeholder Engagement Assessment Matrix Stakehold er

Unawar e

Stakeholder 1

C

Stakeholder 2

Stakeholder 3

Resistan t

Neutral

Supporti ve

D

C

D

DC

Leading

Stakeholder Management Plan  A component of project management plan  Identifies the management strategies required to

effectively engage stakeholders

Stakeholder Management Plan  It can also provide • Desired and current engagement levels of stakeholders • Scope and impact of change to stakeholders • Identified interrelationships and potential overlap between • • • • •

stakeholders Stakeholder communication requirements for the current project phase Information to be distributed to stakeholders, including language, format, content and level of detail Reason for the distribution of that information and expected impact to stakeholder engagement Time frame and frequency for the distribution of required information to stakeholders; and Method for refining and updating the stakeholder management plan as the project progresses and develops

PMBOK Reading

 Chapter 13

- Section 13.1

PART XIV

EXECUTION

The Execution Processes  Direct & Manage Project Execution  Perform Quality Assurance  Acquire Project Team  Develop Project Team  Manage Project Team  Manage Communications  Conduct Procurement  Manage Stakeholder Engagement

Direct & Manage Project Execution  The process of performing the work defined in the

project management plan to achieve project objectives.

Direct & manage Project Execution  Performing activities to accomplish project

requirements.  Creating project deliverables.  Staffing, training and managing the team members assigned to the project.  Obtaining, managing, and using resources including material, tools, equipment, and facilities.  Implementing the planned methods and standard .  Establishing and managing project communication channels, both external and internal to the project team.

Direct & manage Project Execution  Generating project data, such as cost, schedule,

technical and quality progress, and status to facilitate forecasting.  Issuing change requests and adapting approved changes into the project’s scope, plans and environment.  Managing risks and implementing risk response activities.  Managing sellers and suppliers; and  Collecting & documenting lessons learned, and implementing approved process improvement activities.

Direct & manage Project Execution Inputs  Project Management Plan  Approved Change Requests  Enterprise environmenta l Factors  Organizationa l Process Assets

Tools & Techniques  Expert Judgment  Project Management Information System  Meetings

Outputs  Deliverables  Work Performance Data  Change Requests  Project Management Plan Updates  Project Document Updates

Deliverables  Any unique and verifiable product, result, or

capability to perform a service that is identified in the project management planning documentation, and must be produced and provided to complete the project.

Perform Quality Assurance  The process of auditing the quality requirements

and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.

Perform Quality Assurance Plan Quality Management

Perform Quality Assurance

Control Quality

Perform Quality Assurance Inputs  Quality Management Plan  Process Improvement Plan  Quality Metrics  Quality Control Measurement s  Project Documents

Tools & Techniques  Quality Management and Control Tools  Quality Audits  Process Analysis

Outputs  Change Requests  Project Management Plan Updates  Project Document Updates  Organizationa l Process Assets Updates

Quality Audits  A structured, independent review to determine

whether project activities comply with organizational and project policies, processes, and procedures.  Can be scheduled or random.  Can be conducted by external or internal auditors.  Result in:  Reduced cost of quality.  Increase in sponsor or customer acceptance.

Objectives of Quality Audits

 Identify all the good/ best practices being implemented.  Identify all the gaps/ shortcomings.  Share the good practices introduced or implemented in

similar projects in the organization and/ or industry.  Proactively offer assistance in a positive manner to improve implementation of processes to help the team raise productivity.  Highlight contributions of each audit in the lessons learned repository of the organization.

Process Analysis

 Follows steps outlined in the process improvement

plan to identify needed improvements.

Organizational Process Assets Updates  Quality Standards.  Processes.

Project Management Plan Updates  Quality management plan.  Schedule management plan.  Cost management plan.

Project Document Updates  Quality audits reports.  Training plans.  Process documentation.

Gold Plating  Giving Extra  Bad and should be avoided

Acquire Project Team  The process of confirming human resources

availability and obtaining the team necessary to complete project assignments.

Acquire Project Team  The project management team may or may not

   

have direct control over team members selection because of: Collective bargaining agreements. Use of subcontractor personnel. Matrix project environment. Internal or external reporting relationships.

Acquire Project Team Plan Human Resource Management

Acquire Project Team

Develop Project Team

Manage Project Team

Acquire Project Team Inputs  Human Resource Management Plan  Enterprise Environmental Factors  Organizationa l Process Assets

Tools & Techniques  Preassignment  Negotiation  Acquisition  Virtual Teams  Multi-Criteria Decision Analysis

Outputs  Project Staff Assignments  Resource Calendars  Project Management Plan Updates

Pre-assignment  When project team members are known in

advance.  If the project is a result of:  Specific people being promised as part of a proposal.  The project is dependent on the expertise of particular persons.  Some staff assignments are defined within the project charter.

Negotiation  Negotiating with:  Functional managers.  Other project management teams within the

organization.  External organizations, vendors, suppliers, contractors…etc.

Acquisition

 When the needed resources are not available in-

house.  Can involve hiring individual consultants or subcontracting work to another organization.

Virtual Teams  Groups of people with a shared goal who fulfill their

roles with little or no time spent meeting face-toface.  The ease of communication through electronic means made virtual teams more feasible.  Communication planning becomes increasingly important in virtual team environment.

Virtual Teams  Virtual teams make it possible to:  Form teams of people from the same organization     

who live in widespread geographic areas. Add expertise that can’t exist at the same location. Incorporate employees who work from home. Allow team members who work different shifts or hours to participate. Include people with mobility limitations or disabilities. Reduce travel expenses.

Multi-Criteria Decision Analysis  Criteria is developed and used to rate or score

potential team members  Examples Include – Availability – Cost – Experience – Ability – Knowledge – Skills – Attitude – International Factors

Develop Project Team  The process of improving competencies, team

interaction, and the overall team environment to enhance project performance.  Project managers should create an environment that facilitates teamwork.

Develop Project Team  Developing project teams include:  Improving skills of team members  Improving feelings of trust & cohesiveness  Creating a dynamic and cohesive team culture to

improve both individual and team productivity, team spirit and cooperation  Examples include assisting one another, and

communicate in ways that fit individual preference.

Develop Project Team Plan Human Resource Management

Acquire Project Team

Develop Project Team

Manage Project Team

Develop Project Team Inputs Project Staff Assignments Human Resource Management Plan Resource Calendars

Tools & Techniques  Interpersonal Skills  Training  Team Building Activities  Ground Rules  Co-location  Reward & Recognition  Personnel Assessment Tools

Outputs  Team Performance Assessments.  Enterprise Environmenta l Factors Update.

Interpersonal Skills  Sometime known as “Soft Skills”  Include:  Empathy.  Influence.  Creativity.  Group facilitation.

Training  Can be:  Formal  Informal  Training methods:  Classroom.  Online.  Computer-based.  On the job  Coaching  Mentoring.

Team Building Activities  Can vary from a five-minute agenda item to an off-

site, professionally facilitated experience to improve interpersonal relationships.  The objective is to help individual team members to work together effectively.  Particularly valuable when team members work from different locations.  Informal communication and activities can help in building trust and establishing good working relationships.

Team development Stages  Forming.  Storming.  Norming.  Performing.  Adjourning.

Forming  The team meets and learns about the project and

what their formal roles and responsibilities are.  Team members tend to be independent and open in this phase.  Team members are usually on their best behavior but very focused on themselves.  In this stage the members of the team get to know one another, exchange some personal information, and make new friends.

Storming  Team begins to address the project work, technical

decisions, and the project management approach.  If team members are not collaborative and open to differing ideas and perspectives the environment can become destructive.  In some cases, the team never leaves this stage.  The role of project manager is cruicial in this stage. Tolerance and patience will help in passing through it successfully.

Norming  Team members begin to work together and adjust

work habits and behaviors to support the team.  Team begins to trust each other.  Motivation increases as the team gets more acquainted with the project.  As team members get to know each other better, their views of each other begin to change

Performing  Teams should try to reach this stage as quickly as

possible.  Teams that reach this stage function as a wellorganized unit.  Teams at this stage are able to function as a unit as they find ways to get the job done smoothly and effectively without inappropriate conflict or the need for external supervision.

Adjourning  The team completes the work and move on from the

project.  Mourning over the dissolving of the team relationship, and begin preparing for change in individual work requirements.

Ground Rules  Establishing clear expectations regarding

acceptable and unacceptable behavior.  Examples include:  How team members should resolve conflicts.  Is interruption in meetings allowed or not.  Coming late to meetings.  Phone calls.  Smoking.  Who’s allowed to talk to senior management.  Who’s authorized to give directions to vendors/ subcontractors.  Work times.  Codes of dress.

Co-location  Involves placing many of the team members in one

physical location.  Can be temporary in some cases.  Can be used in conjunction with virtual teams.  Enhances ability to perform as a team.  War rooms.

Recognition and Rewards  For desirable behaviors only.  Through performance appraisal.  Should satisfy needs valued by individuals.  Should focus on win-win instead of win-lose.  Generally, money is viewed as a very tangible

aspect of a reward system.

Team performance Assessments  Formal or informal  Conducted by the project management team  The performance of successful team is measured

according to agreed upon project objectives  Evaluation indicators include:  Improvements in skills  Improvements in competencies  Reduced staff turn over rate  Increased team cohesiveness  Should trigger actions such as training, changes, recommendations, etc..

Manage Project Team  The process of tracking team performance,

providing feedback, resolving issues, and managing changes to optimize project performance.  The project management team:  Observes team performance.  Manages conflict.  Resolves issues.  Appraises team performance.

Manage Project Team Plan Human Resource Management

Acquire Project Team

Develop Project Team

Manage Project Team

Manage Project Team Inputs

 Project Staff Assignments  Human Resource Management Plan  Team Performance Assessments  Issue Log  Work Performance Reports  Organization al Process Assets

Tools & Techniques  Observation and Conversatio n  Project Performance Appraisals  Conflict Managemen t  Interpersona l Skills

Outputs  Enterprise Environment al Factors Updates  Organization al Process Assets Updates  Change Requests  Project Managemen t Plan Updates  Project Documents Updates

Observation & Conversation  Used to stay in touch with the work and attitudes of

project team members.  Project management team monitors progress towards:  Project deliverables.  Accomplishments.  Interpersonal issues.

Project Performance Appraisals  Can be formal or informal depending on the length

of the project, organizational policy, project complexity and the amount and quality of regular communication.  Objectives include:  Clarification of roles and responsibilities.  Constructive feedback to team members.  Discovery of unknown or unresolved issues.  Development of individual training plans.  Establishment of specific goals for future time periods.

Conflict Management  Should conflict be avoided?

Conflict Management

 Conflict in projects is inevitable…  Why?

Sources of Conflict in projects  Scarcity of resources.  Scheduling priorities.  Personalities.  Limited power of project manager.

Facts about Conflict  Natural and forces search for alternatives.  Is a team issue.  Openness resolves conflict.  Should focus on issues, not personalities.  Should focus on the present, not the past.

How Can Conflict Be Minimized?  Communication.  Planning  Ground rules.  Identification of root causes and resolving them.  Involving team members in resolution.

Conflict Resolution Techniques  Withdrawing/Avoiding.  Smoothing/ Accommodating.  Compromising.  Forcing.  Collaborating.  Confronting/ problem solving.

Withdrawing/ Avoiding  Retreating from an actual or potential conflict

situation.  A passive, stop-gap way of handling conflict.  Appropriate when a “cooling-off’ period is needed, and when the other party is unassertive and uncooperative.  A lose-lose technique  Generally fails to solve the problem.  Should not be used when the conflict deals with an issue that is of immediate concern or is important to the successful completion of the project.

Smoothing/ Accommodating  Emphasizing areas of agreement rather than areas

of difference.  An appeasing approach.  Appropriate to keep harmony and avoid outwardly conflictive situations.  Fails to provide permanent long-term solution to the underlying conflict.  Generally, conflict reappears in a different form.  A lose-lose technique

Compromising  Searching for a solution that bring some degree of

satisfaction to all parties.  Is primarily “bargaining”, receiving something in exchange for something else.  Appropriate when reached and accepted as a just solution by both parties involved in conflict.  Usually provides acceptable solutions.  Sometimes, important aspects of the project can’t be compromised to achieve personal objectives.

forcing  Pushing one’s view at the expense of others.  A win-lose situation.  Used when there is no common ground for

bargaining or negotiation.  Also used when both parties are uncooperative and strong-willed.  Appropriate when time is of essence, and issue is vital for the well-being of project.  Usually takes less time than other techniques, but leaves hard feelings.  Conflict resolved by forcing may develop again and haunt the enforcer.  Should be used only as a last resort.

Collaborating  Incorporating multiple view points and insights from

differing perspectives.  Leads to consensus and commitment.  Used when the situation is too important to be compromised.  Not very effective when more than a few players are involved and their viewpoints are mutually exclusive.

Confronting/ Problem Solving  Treating conflict as a problem to be solved by

examining alternatives.  Requires a give-and-take attitude and open dialogue.  Involves pinpointing the issue and resolving it objectively by defining the problem, gathering necessary information, generating and analyzing alternatives, and selecting the best alternative.  Requires open dialogue between participants, who must be mature, understanding, and competentboth technically and managerially.  Takes longer than other techniques.  Provides ultimate solutions.

Technique s Forcing

SUMMAR Y Description

forcing a solution – from one side, not the best solution. Smoothing attempting to / underestimate the Accommod conflict. ating Compromis brings some degree of ing satisfaction to both parties.

Solution Permane Winnt lose Tempora Losery lose

Permane nt: commitm ent Confrontati Treating conflict as a Permane on / problem; solving the real nt Problem problem, most often used Solving by project managers. Collaborati Incorporating multiple Permane ng viewpoints and insights nt from differing

Loselose

Winwin

Winwin

To Resolve a Conflict  Assure Privacy  Empathize than sympathize  Listen actively  Maintain equity  Focus on issue, not on personality  Avoid blame  Identify key theme  Re-state key theme frequently  Encourage feedback  Identify alternate solutions  Give your positive feedback  Agree on an action plan

Conflict Management Exercise

Manage Communications  The process of making relevant information

available to project stakeholders as planned.  Implementing the “Communications Management Plan”  Responding to unexpected requests for Information

Manage Communications  Effective information distribution includes:  Sender-receiver modules.  Choice of media.  Writing style.  Meeting management techniques.  Presentation techniques.  Facilitation techniques.

Manage Communications Plan Communications Management

Manage Communications

Control Communications

Manage Communications Inputs  Communicatio ns Management Plan  Work Performance Reports  Enterprise Environmental Factors  Organizational Process Assets

Outputs Tools & Techniques

 Project Communicatio ns

 Communicatio n Technology  Communicatio n Models  Communicatio n Methods  Information Management System  Performance Reporting

 Project Management Plan Updates  Project Documents Updates  Organizationa l Process Assets Updates

Communication Methods

 Individual and group meetings.  Video and audio conferences.  Computer chats.  Other remote communications methods.

Organizational Process Assets (update)  Stakeholder notifications.  Project reports.  Project presentations.  Project records.  Feedback from stakeholders.  Lessons learned documentation.

Distribute Information  Lost in translation…

Plan Procurements Management Plan Procurements Management

Conduct procurements

Control Procurements

Close Procurements

Conduct Procurements Inputs

 Project Management Plan  Procurement Documents  Source Selection Criteria  Seller Proposals  Project Documents  Make or Buy Decisions  Procurement Statement of Work  Organizational Process Assets

Tools & Techniques Bidder Conferences Proposal Evaluation Techniques Independent Estimates Expert Judgment Advertising Analytical Techniques Procurement Negotiations

Outputs Selected Sellers Agreements Resource Calendars Change Requests Project Management Plan Updates Project Documents Updates

Proposal  Seller-prepared Documents.  Describe the seller’s ability & willingness to provide

the requested products.  Constitutes a formal and technical offer in response to a buyer’s request.

Bidder Conference  Also called: Contractor Conferences, Vendor

Conferences, and Pre-Bid Conferences.  Meeting Prospective Sellers before bids preparation, to ensure clear and common understanding of procurement.  All potential sellers are given equal standing during the conference.

Advertising  Placing advertisements in general and specialty

publications.

Proposal Evaluation Techniques  Can involve subjective and objective components.  Multiple reviewers.

Develop Qualified Sellers List  List of sellers asked to submit a proposal.  Developed from the organizational assets.  Or project management team can develop from

own sources.

Select Sellers  Lowest price is not necessarily lowest cost.  Price might be the only factor in off the shelf items.  Proposals are split into commercial and technical

sections.  Multiple sources may be required.

Select Seller  Weighed System: method for quantifying qualitative

data to minimize the personal prejudice on source selection  Independent Estimates: An estimate of what the seller should price the service/ product  Screening System: establishing minimum requirements of performance for one of more of the evaluation criteria  Contract Negotiation: Clarification & mutual agreement on contract aspects

Independent Estimates  The procuring organization may either prepare its

own independent estimates, or have an estimate of cost prepared by an external professional estimator.  “Should-be” price.  Significant difference between seller price and estimates might happen as a result of:  Statement of work is unclear.  Prospective seller didn’t understand or fully respond.  Change in market condition.

Select Seller  Weighed System: Method for quantifying qualitative

data to minimize the personal prejudice on source selection

Example

Criteria

Weight

Rate (1-100 scale)

Score

5%

50

2.5

Understanding of needs

25%

80

20

Technical Ability

15%

30

4.5

Number of years in business

Total

27

Conduct Procurements  The process of obtaining seller responses, selecting

a seller, and awarding a contract.

Select Seller  Independent Estimates: An estimate of what the

seller should price the service/ product  The procuring organization may either prepare its own independent estimates, or have an estimate of cost prepared by an external professional estimator  Should-be” price.  Significant difference between seller price and estimates might happen as a result of:  Statement of work is unclear.  Prospective seller didn’t understand or fully respond.  Change in market condition.

Select Seller  Screening System: Establishing minimum

requirements of performance for one of more of the evaluation criteria  Eliminates sellers who don’t meet the minimum

requirements of the source selection criteria

Select Seller  Contract Negotiation: Clarification & mutual

agreement on contract aspects, main items to negotiate on are:  Scope  Schedule  Price & terms of payment  After Sales/After service

 Obtain a fair & reasonable price

 Develop a good relationships with Objectives of Negotiations the seller

Select Seller Negotiations Tactics Attacks

Personal Insults

Good guy/bad guy

Deadline

 “ if your organization can’t manage

the details of the operations perhaps it should get out of the business”  “ if you don’t understand what you

are doing perhaps you should find another job”  “ One person is helpful to the other

side while the other is difficult to deal with ”  “ We have a flight at 5pm and we

must finish negotiations before that time”

Select Seller Negotiations Tactics Limited Authority

 I can’t shorten the schedule I’m not

authorized, limited authority statements are not necessary true”

Missing man

 “ Only my boss can agree on that

Withdrawal

&my boss is not here, lets only agree on this”  “ To show that there’s a less interest”

Fair & Reasonable

Fait accompli

 “ Lets be reasonable just accept that

offer as it stands”  “ This is a done deal”

Seller Rating Systems

 Uses information on:  Seller’s Past Performance  Quality Ratings  Delivery Performance  Contractual Compliance

Selected sellers

 Those sellers who have been judged to be in a

competitive range based upon the outcome of the proposal or bid evaluation, and who have negotiated a draft contract that will become the actual contract when the award is made.

Agreements

 Includes terms and conditions, and may incorporate

other items that the buyer specifies regarding what the seller is to perform or provide.  Mutually binding legal agreement:  Obligates the seller to provide.  Obligates the buyer to pay.  Legal relationship subject to remedy in courts.

Agreements  Components can include:  Statement of work or deliverables  Schedule baseline  Performance reporting  Period of performance  Roles and responsibilities  Pricing  Payment terms  Place of delivery  Others …

 Murder on the Orient Express

Manage Stakeholders Engagement

 The process of communicating and working with

stakeholders to meet their needs and addressing issues as they occur.  Increases the likelihood that project will not veer off track due to unresolved stakeholders issues and unmatched expectations.  Key benefit is that it allows project manager to increase support and minimize resistance from stakeholders.

Manage Stakeholders Expectations  Involves communication activities directed towards

project stakeholders to influence their expectations, address concerns, and resolve issues. Such as:  Actively managing the expectations of stakeholders to increase the likelihood of project acceptance by negotiating and influencing their desires to achieve project goals.  Addressing concerns that have not become issues yet.  Clarifying and resolving issues that have been identified.

Manage Stakeholder Engagement Identify Stakeholders

Plan Stakeholder Management

Manage Stakeholder Engagement

Control Stakeholder Engagement

Manage Stakeholders Engagement Inputs  Stakeholder Management Plan  Communicatio nsManagemen t Plan  Change Log  Organizational Process Assets

Tools & Techniques  Communicatio n Methods  Interpersonal Skills  Management Skills

Outputs  Issue Log  Change Requests  Organization al Process Assets Updates  Project Management Plan Updates  Project Document Updates

Issue Logs

 Also called action item log.  Tool to document and monitor the resolution of

issues.  Addressed in order to maintain good, constructive working relationships.

Interpersonal Skills

 Building trust.  Resolving conflict.  Active listening.  Overcoming resistance to change.

The 8 Steps for Leading Change*  Establishing a sense of urgency.  Creating the guiding coalition.  Developing a vision and strategy.  Communicating the change vision.  Empowering employees for broad-based action.  Generating short-term wins.  Consolidating (accumulating) gains and producing

more change.  Anchoring new approaches in the culture.  * Leading Change- John P. Kotter

Management Skills

 Facilitate consensus toward project objectives  Influence people to support the project  Negotiate agreements to satisfy the project needs,

and  Modify organizational behavior to accept the project outcomes

Project Document (Update)  Stakeholder management strategy.  Stakeholder register.  Issue log.

What Makes Great Project Managers?

Shackleton Story

Expedition Mission: Crossing Antarctica and coming back

"All the money that was ever minted would not have bought that biscuit and the remembrance of that sacrifice will never leave me". Frank Wild- A companion

Newspaper Advertisement “MEN WANTED: FOR HAZARDOUS JOURNEY. SMALL WAGES, BITTER COLD, LONG MONTHS OF COMPLETE DARKNESS, CONSTANT DANGER, SAFE RETURN DOUBTFUL. HONOUR AND RECOGNITION IN CASE OF SUCCESS.” - SIR ERNEST SHACKLETON

Would You Go?

"For scientific leadership, give me Scott (Robert Falcon); for swift and efficient travel, Amundsen; but when you are in a hopeless situation, when there seems to be no way out, get on your knees and pray for Shackleton.“ - Sir Raymond Priestley

Why was Sir Ernest Shackleton that successful?

EQ vs. IQ

What is Emotions? “A mental state that arises spontaneously rather than through conscious effort, and is often accompanied by physiological changes; a feeling: the emotions of joy, sorrow, reverence, hate and love” - The American Heritage Dictionary

Emotions

‫‪Can we Control Our‬‬ ‫?‪Emotions‬‬ ‫•‬ ‫•‬ ‫•‬ ‫•‬

‫”ليس الشديد بالصرعة‪ ،‬إنما الشديد الذي يملك نفسه عند‬ ‫الغضب“‬ ‫”ل تغضب“‬ ‫”والكاظمين الغيظ‪ ،‬والعافين عن الناس‪ ،‬وال يحب‬ ‫المحسنين“‬ ‫”ل تحزن“‬

What is Emotional Intelligence? “The ability to monitor one’s own and others’ feelings and emotions, to discriminate among them and use this information to guide one’s thinking and action” - Peter Salovey and John D. Mayer

“The abilities to recognize and regulate emotions in ourselves and in others” - Daniel Goleman and Gary Cherniss

Goleman’s Framework of Emotional Competencies Self

Other

(Personal Competence) ( Social Competence) Self Awareness

Recognition

Regulation

-Emotional self awareness - Accurate selfassessment - Self confidence

Self – Management -

Emotional self control Transparency Adaptation Achievement Initiative Optimism

Social Awareness -Empathy -Organizational awareness -Service

Relationship Management -

Inspirational leadership Influence Developing others Change catalyst Conflict Management Building bonds Teamwork and collaboration

  EMOTIONAL INTELLIGENCE   FRAMEWORK FOR PROJECT MANAGEMENT     5.Team Leadership -Communication -Conflict Management -Inspirational Leadership

3.Social Awareness -Empathy -Organizational awareness - Emotional Boundaries

1.Self Awareness -Emotional self awareness - Accurate selfassessment - Self confidence

4. Relationship Management

-

Stakeholder Relationship Developing others Truth Telling

• •

2.Self – Management

-

-Self -Control

Emotional Intelligence Framework for Project Management 5.Team Leadership -Communication -Conflict Management -Inspirational leadership 3.Social Awareness -Empathy -Organizational awareness - Emotional Boundaries

1.Self Awareness -Emotional self awareness - Accurate selfassessment - Self confidence

4. Relationship Management

-

Stakeholder Relationship Developing others Truth Telling

• •

2.Self – Management

-

-Self -Control

Emotional Intelligence Framework for Project Management 5.Team Leadership -Communication -Conflict Management -Inspirational leadership 3.Social Awareness -Empathy -Organizational awareness - Emotional Boundaries

1.Self Awareness -Emotional self awareness - Accurate selfassessment - Self confidence

4. Relationship Management

-

Stakeholder Relationship Developing others Truth Telling

• •

2.Self – Management

-

-Self -Control

Self Awareness  Accurate Self-Assessment

– Aware of Strengths & Weaknesses – Reflective, learning from experience – Open to Candid Feedback – Able to show a sense of humor and perspective about oneself.

Self Awareness  Self Confidence

– Present self with self-assurance; have “presence” – Can voice views and express opinion even if unpopular. – Decisive. – Able to make decisions despite uncertainties and pressure

Self Awareness  Emotional Self-Awareness (red flags)

– Inappropriate Humor – Use of Sarcasm – Passive Aggressive Behavior – Playing the Victim – Hostility

Emotional Intelligence Framework for Project Management 5.Team Leadership -Communication -Conflict Management Inspirational Leadership 3.Social Awareness -Empathy -Organizational awareness - Emotional Boundaries

4. Relationship Management -

Stakeholder Relationship Influence Developing others Truth Telling

1.Self Awareness

2.Self –Management

-Emotional self awareness - Accurate selfassessment - Self confidence

-

Self -Control

Self- Control  Self-control is the ability to remain composed in

spite of emotional state.  Self-control is for all emotions.

Hot Buttons

Techniques to Improve Self-Management  1- Identify the feeling  2- Determine the underlying cause  3- Take action to get clear

Additional Techniques  1- Reduce your stress level  2- Conduct an Inner-Dialogue  3- Take it out with someone  4- Give yourself a time out  5- Write a letter or email you will not send  6- Take care of yourself

– And Remember: It’s not worth dying for!!!

Emotional Intelligence Framework for Project Management • • • •

5.Team Leadership -Communication -Conflict Management Inspirational leadership

3.Social Awareness -Empathy -Organizational awareness - Emotional Boundaries

4. Relationship Management -

1.Self Awareness -Emotional self awareness - Accurate selfassessment - Self confidence

Stakeholder Relationship Influence Developing others Truth Telling 2.Self –Management

-

Self -Control

Social Awareness  Empathetic Listening

– Let others speak – Maintain eye contact – Give the speaker your full attention – Playback and summarize – Try on their shoes – Suspend our judgment

Social Awareness • Organizational Awareness  “The ability to read the currents of emotions and

political realities in groups” - Cary Cherniss and Daniel Goleman

Social Awareness

 Emotional Boundaries  “Good fences make good neighbors”

Emotional Intelligence Framework for Project Management • • •

5.Team Leadership -Communication -Conflict Management -Inspirational leadership

•

• • •

3.Social Awareness • -Empathy -Organizational awareness -Emotional Boundaries

1.Self Awareness -Emotional self awareness - Accurate selfassessment - Self confidence

• • • • •

4. Relationship Management -Stakeholder Relationship -Influence -Developing others -Truth Telling

2.Self –Management -Self –Control

Emotional Intelligence Framework for Project Management44 • • •

5.Team Leadership -Communication -Conflict Management -Inspirational leadership

3.Social Awareness • -Empathy -Organizational awareness - Emotional Boundaries

•

• • •

• • -

1.Self Awareness -Emotional self awareness Accurate selfassessment Self confidence

4. Relationship Management -

Stakeholder Relationship Influence Developing others Truth Telling

•

•

2.Self – Management

-Self –Control

Quiz 7

PMBOK Reading  Chapter 3

– Section 3.5  Chapter 4

– Section 4.3  Chapter 8

– Section 8.2  Chapter 9

– Sections 9.2 - 9.4  Chapter 10

– Sections 10.2  Chapter 12

– Section 12.2  Chapter 13

– Section 13.3

PART XV MONITORING & CONTROLLING

Monitor & Control Project Work  The process of tracking, reviewing, and regulating

the progress to meet the performance objectives defined in the project management plan.  It includes collecting, measuring, and distributing

performance information, and assessing measurements and trends to effect process performance.

Monitor & Control Project Work  Comparing actual work performance against the

project management plan.  Assessing performance to determine whether any corrective or preventive actions are indicated, and then recommending those actions as necessary.  Identifying new risks and analyzing, tracking, and monitoring existing project risks to make sure the risks are identified, their status is reported, and that appropriate risk response plans are being executed.

Monitor & Control Project Work  Maintaining an accurate, timely information base

concerning the project’s product(s) and the associated documentation through project completion.  Providing information to support status reporting, progress measurement, and forecasting.  Providing forecasts to update current cost and current schedule information; and  Monitoring implementation of approved changes as they occur.

Monitor & Control Project Work Inputs  Project Management Plan  Schedule Forecasts  Cost Forecasts  Validated Changes  Work Performance Reports  Enterprise Environmental Factors  Organizational Process Assets

Tools & Techniques Expert Judgment

Outputs  Change Requests

Analytical Techniques

 Work performance reports

Project management information software

 Project Management Plan Updates

Meetings

 Project Document Updates

Change Requests  Needed because change is inevitable.  Happen as a result of comparing actual results with

planned results  May:

– Expand – Adjust – Reduce – Project and product scope

Changes May Include  Corrective Actions: A documented direction for

executing the project work to bring expected future performance of the project work in line with the project management plan.  Preventive Actions: A documented direction to perform an activity that can reduce the probability of negative consequences associated with project risks.  Defect Repairs: The formally documented identification of a defect in a project component with a recommendation to either repair the defect or completely replace the component.

Perform Integrated Change Control  The process of reviewing all change requests,

approving changes and managing changes to the deliverable, organizational process assets, project documents, and the project management plan.  Conducted from project inception through completion.

Perform Integrated Change Control  Influencing the factors that circumvent integrated

change control so that only approved changes are implemented.  Reviewing, analyzing, and approving change requests promptly, which is essential, as a slow decision may negatively affect time, cost or the feasibility of the change.  Managing the approved changes.  Maintaining the integrity of baseline by releasing only approved changes for incorporation into the project management plan and project documents.

Perform Integrated Change Control  Reviewing, approving, or denying all recommended

corrective and preventive actions.  Coordinating changes across the entire project (e.g., a proposed schedule change will often affect cost, risk, quality, and staffing); and  Documenting the complete impact of change requests.

Facts About Integrated Change Control  Change control is necessary because projects

seldom run exactly according to project management plan.  Changes are incorporated into a revised plan.  Corrective and preventive actions are taken to control the project performance.  Monitoring gives insight on project health & areas that require special attention.

Steps for Integrated Change Control  Prevent the root cause of change.  Identify change.  Create a change request.  Assess the change.  Assess impact.  Perform integrated change control.  Look for options.  Approve or reject change.  Adjust the project management plan and baseline.  Notify stakeholders.  Manage the project to new project management plan.

Perform Integrated Change Control Inputs  Project Management Plan  Work Performance Reports  Change Requests  Enterprise Environmenta l Factors  Organizationa l Process Asset

Tools & Techniques

Outputs

 Expert Judgment

 Approved Change Request

 Meetings

 Change Log

 Change Control Tools

 Project Management Plan Updates  Project Document Updates

Configuration Management System  A configuration management system with

integrated change control provides a standardized, efficient and effective way to centrally manage approved changes and baselines within a project.  Configuration control is focused on the specifications of both the deliverables and processes,  While change control is focused on identifying, documenting and controlling changes to the project and product baselines.

CONFIGURATION MANAGEMENT SYSTEM  Configuration management with integrated change

control processes achieve the following objectives; – Establishes an evolutionary method to consistently identify and request changes to established baselines, and to assess the value and effectiveness of those changes – Provides opportunities to continuously validate and improve the project by considering the impact of each change, and – Provides the mechanism for the project management team to consistently communicate all approved and rejected changes to the stakeholders

Configuration Management Activities  Configuration Identification  Configuration Status Accounting  Configuration Verification and Audit

Configuration Identification  Selection and identification of a configuration item

provide the basis for which product configuration is defined and verified, products and documents are labeled, changes are managed, and accountability is maintained.

Configuration Status Accounting  Information is recorded and reported as to when

appropriate data about the configuration item should be provided. The information includes a listing of approved configuration identification, status of proposed changes to the configuration, and the implementation status of approved changes.

Configuration Verification and Audit  Configuration verifications and configuration audits

ensure the composition of a project’s configuration items is correct and that corresponding changes are registered, assessed, approved, tracked and correctly implemented. This ensures the functional requirements defined in the configuration documentation can be met.

Validate Scope  The process of formalizing acceptance of the

completed project deliverables.  Includes reviewing deliverables with the customer or sponsor to ensure that they are completed satisfactorily and obtaining formal acceptance of deliverables by the customer or sponsor.

Validate Scope Vs. Quality Control  Verify scope is concerned with acceptance of work

results while perform quality control is concerned with the correctness of the work results.  Quality control is generally performed before scope verification, but the two processes can be performed in parallel.

Validate Scope Plan Scope Management

Collect Requirements

Define Scope

Control Scope

Create WBS

Validate Scope

Validate Scope Inputs  Project Management Plan  Requirements documentatio n  Requirements traceability matrix  Verified deliverables  Work performance data

Tools & Techniques  Inspection  Group decisionmaking techniques

Outputs  Accepted Deliverables  Change Requests  Work performance information  Project Document Updates

Control Scope  The process of monitoring the status of the project

and product scope and managing changes to the scope baseline.  Controlling project scope ensures all requested changes and recommended corrective or preventive actions are processed through the Perform Integrated Change Control process.

Control Scope  Project scope control is also used to manage the

actual changes when they occur and is integrated with the other control processes.  Uncontrolled changes are often referred to as “project scope creep”

Control Scope Plan Scope Management

Collect Requirements

Define Scope

Control Scope

Create WBS

Validate Scope

Control Scope Inputs  Project Managemen t Plan  Work performanc e data  Requiremen ts documentat ion  Requiremen ts traceability matrix  Organizatio nal Process Assets

Tools & Technique s  Variance Analysis

Outputs

 Work Performanc e Information  Organizatio nal Process Assets Updates  Change Requests  Project Manageme nt Plan Updates  Project Document Updates

Variance Analysis  Project performance measurements are used to

assess the magnitude of variation from the original baseline.  It determines the cause and degree of variance relative to the scope baseline, and decides whether corrective or preventive action is required.

Control Schedule  The process of monitoring the status of the project

to update project progress and manage changes to the schedule baseline.  Schedule control is concerned with:

– Determining the current status of project schedule. – Influencing the factors that create schedule changes. – Determining that the project schedule has changed, and – Managing the actual changes as they occur.

Control Schedule Plan Schedule Management

Define Activities

Sequence Activities

Develop Schedule

Estimate Activity Resources

Estimate Activity Durations

Control Schedule

Control Schedule Inputs  Project Management Plan  Work performance data  Project Schedule  Project calendars

Tools & Techniques  Performance Reviews  Project Management Software  Resource Optimization Techniques

 Schedule data

 Modeling Techniques

 Organizational Process Assets

 Leads & Lags  Schedule Compression  Scheduling Tool

Outputs  Work Performance Information  Schedule Forecasts  Organizational Process Assets Updates  Change Requests  Project Management Plan Updates  Project Document Updates

Control Cost  The process of monitoring the status of the project

to update the project budget and managing changes to the cost baseline.  Involves recording actual costs spent to date.  Important to determine:

– Cause of a variance, whether positive or negative. – Magnitude of the variance. – Decide if variance requires corrective action.

Control Cost Includes  Influence the factors that create changes to the cost

baseline.  Ensuring requested changes are agreed upon.  Managing the actual changes when they occur.  Assuring that potential cost overruns do not exceed the authorized funding periodically and in total.  Monitoring cost performance to detect and understand variances from the cost baseline.  Recording all appropriate changes accurately against the cost baseline.  Preventing incorrect, inappropriate, or unapproved changes from being included in the reported cost or resource usage.  Informing appropriate stakeholders of approved

Control Costs Plan Cost Management

Estimate Costs

Determine Budget

Control Costs

Control Costs Inputs  Project Management Plan  Work performance data

Tools & Techniques  Earned Value Management  Forecasting

 Project Funding Requirements

 To-complete Performance Index

 Organizational Process Assets

 Performance Reviews

Outputs  Work Performance Information  Cost Forecasts  Organizational Process Assets Updates  Change Requests

 Reserve Analysis

 Project Management Plan Updates

 Project Management Software

 Project Document Updates

Earned value Management (EVM)  Methodology that measures project progress by

comparing actual schedule & cost performance against planned performance as laid out in the schedule & cost baseline.  Work does not earn value until it is completed.

Earned value Management (EVM)  Relates Three Values:

– Planned Value (PV) – Earned Value (EV) – Actual Costs (AC) – Budget At Completion (BAC).

Planned Value (PV)  Budgeted Cost of Work Scheduled (BCWS)

Earned Value (EV)  Budgeted Cost of Work Performed (BCWP)

ACTUAL COSTS (AC)  Actual Cost of Work Performed (ACWP)

Budget At Completion (BAC)  Project Estimated Budget

Schedule Variance  Any difference between the scheduled completion

of an activity and the actual completion of that activity.  Schedule Variance is the earned value minus the planned value  Schedule Variance = Earned Value - Planned Value  SV = EV - PV

Cost Variance  Any difference between the budgeted cost of an

activity and the actual cost of that activity.  Cost Variance is the earned value minus the planned value  Cost Variance = Earned Value – Actual Cost  CV = EV - AC

Variance Values  Schedule Variance:

– If SV= 0, then schedule is on track. – If SV 0, then project is ahead of schedule – If SV 0, then project is behind schedule  Cost Variance

– If CV= 0, then project is on budget. – If CV  0, then project is below budget (Cost Saving) – If CV  0, then project is above budget (Cost Overrun

Schedule Performance Index (SPI)  SPI = EV / PV

Cost Performance Index (CPI)  CPI = EV / AC

Performance Index Values  Schedule Variance:

– If SPI= 1, then schedule is on track. – If SPI 1, then project is ahead of schedule – If SPI 1, then project is behind schedule  Cost Variance

– If CPI= 1, then project is on budget. – If CPI 1, then project is below budget (Cost Saving) – If CPI 1, then project is above budget (Cost Overrun)

Forecasting  Estimate To Complete (ETC)  Estimate At Completion (EAC)

Estimate To Complete (ETC)  When current variances are seen as atypical and

similar changes will not continue to happen in the future

• ETC= BAC-EV  When current variances are seen as typical of

future variances

• ETC= (BAC-EV)/CPI  When past performance show that the original

estimating assumptions were fundamentally flawed, estimates to completion has to be re-calculated

• ETC= BTC

Estimate At Completion (EAC)  When past performance show that the original

estimating assumptions were fundamentally flawed:

– EAC = AC + BTC  When current variances are seen as atypical and

similar changes will not continue to happen in the future:

– EAC = AC + (BAC – EV)  When current variances are seen as typical of

future variances

– EAC = AC + [(BAC –EV)/CPI]

Variance At Completion (VAC)  How much over or under budget do we expect  to be at the end of the project  VAC = Budget at Completion - Estimate at Completion  = BAC - EAC

Exercises 13 & 14

 Earned Value Calculations

To-Complete Performance Index (TCPI)

 This helps in determining the efficiency that must

be achieved on the remaining work in order for the project to meet a specified end point such as Budget at Completion (BAC) or Estimate at completion (EAC)  TCPI= Work Remaining/ Funds Remaining  TCPI based on the BAC:

– TCPI = (BAC-EV) / (BAC-AC)  TCPI based on the EAC:

– TCPI = (BAC-EV) / (EAC-AC)

Control Quality  The process of monitoring and recording results of

executing the quality activities to assess performance and recommend necessary changes.  Quality control activities identify causes of poor

process or product quality and recommend and/or take action to eliminate them.

Quality ControlRelated Terms  Prevention (keeping errors out of the process) and

inspection (keeping errors out of the hands of the customer).  Attribute sampling (the result either conforms or

not) versus variable sampling (the result is rated on a continuous scale that measure the degree of conformity).  Special causes (unusual events) and common

causes (normal process variation).  Tolerances (specified range of acceptable results)

and control limits (range of process in control).

Control Quality Plan Quality Management

Perform Quality Assurance

Control Quality

Control Quality

Inputs

 Project Management Plan

Tools & Techniques

Outputs

 Quality Control Measurements  Validated Changes

 Quality Metrics

 Seven basic Quality Tools

 Quality Checklists

 Statistical sampling

 Work Performance data

 Inspection

 Work Performance Information

 Approved Change Requests Review

 Organizational Process Assets Updates

 Approved Change Requests  Deliverables  Project documents  Organizational Process Assets

 Validated Deliverables

 Change Requests  Project Management Plan Updates  Project Document Updates

Control Communications  Monitoring & controlling communications throughout

the entire project lifecycle to ensure the information needs of the project stakeholders are met.  It ensures an optimal information flow among all

communication participants, at any moment of time.

Plan Communications Management Plan Communications Management

Manage Communications

Control Communications

Control Communications Inputs  Project Management Plan  Work Performance Data  Project Communicatio ns  Issue Log  Organizationa l Process Assets

Tools & Techniques  Information Management System  Expert Judgment  Meetings

Outputs  Work Performance Information  Organization al Process Assets Updates  Change Requests  Project Management Plan Update  Project Document Updates

Control Risks  The process of implementing risk response plans,

tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

Control Risks  It determines if:  Project assumptions are still valid.  Analysis shows an assessed risk has change or

can be retired.  Risk Management policies and procedures are being followed.  Contingency reserves of cost or schedule should be modified in alignment with the current risk assessment.

Control Risks Plan Risk Management

Identify Risks

Plan Risk Responses

Perform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Control Risks

Control Risks Inputs  Risk Register  Project Management Plan  Work Performance Data  Performance Reports

Tools & Techniques  Risk Reassessment  Risk Audits  Variance & Trend Analysis  Technical Performance Measurement  Reserve Analysis  Meetings

Outputs  Work Performance Information  Organizational Process Assets Updates  Change Requests  Project Management Plan updates  Project Document Updates

Risk Reassessment  Should be scheduled regularly.  Should be an agenda item at project team status

meetings.

Risk Register Updates

 Outcomes of risk reassessments.  Actual outcomes of risks and risk

responses.

Control Procurements  The process of managing procurement relationships,

monitoring contract performance, and making changes and corrections as needed

Control ProcurementsHighlights  Reviewing and documenting how a seller is

performing or has performed to establish required corrective actions and provide a basis for future relationships with the seller  Managing contract related changes  When appropriate managing the contractual relationship with the outside buyer of the project.  Can include managing interfaces across providers.  For some organizations, might be separate from project organization. In this case a contract administrator on the project team reports to a different department.

Control Procurements Plan Procurements Management

Conduct procurements

Control Procurements

Close Procurements

Control Procurements Inputs  Project Management Plan  Procurement Documents  Agreements  Work Performance Reports  Approved Change Requests  Work Performance Data

Tools & Technique s

• Contract change control system • Procurement performance reviews • Inspections and audits • Performance reporting • Payment systems • Claims administratio n • Records management system

Outputs  Work Performance Information  Organization al Process Assets Updates  Change Requests  Project Management Plan Updates  Project Documents Updates

Procurement Performance Review  A structured review of seller’s progress to deliver

project scope and quality within cost and on schedule, as compared to contract.  It can include a review of seller-prepared documentation and buyer inspections, as well as quality audits conducted during seller’s execution of the work.  Objectives are:  Identify performance success or failure.  Identify progress compared to contract statement of work.  Identify contract non-compliance to determine seller’s ability or inability to deliver.

Payment Systems  Processed by the “Accounts Payable” system of the

buyer  After certification of satisfactory work by an authorized person on the project team.  All payments are made in accordance with contract terms.

Claims Administration  The process of documenting, processing, managing,

and monitoring claims throughout the contract lifecycle, in accordance with terms of contract.  Contested changes and potential constructive changes are those requested changes where the buyer and seller cannot reach an agreement on compensation for the change.  If parties involved cannot resolve claims, it maybe handled in accordance with Alternative Dispute Resolution (ADR) or through negotiation.

Records Management System  Used by project manager to manage contract

documents and records.  It consists of a specific set of processes, related control functions, and automation tools that are consolidated and combined into a whole, as part of the project management information system.  The system contains a retrievable archive of contract documents and correspondence.

Control Stakeholder Engagement  The process of monitoring overall project stakeholders

relationship and adjusting strategies and plans for engaging stakeholders.  It maintains and increases the efficiency and

effectiveness of stakeholder engagement activities as the project evolves and its environment changes.

Control Stakeholder Engagement Identify Stakeholders

Plan Stakeholder Management

Manage Stakeholder Engagement

Control Stakeholder Engagement

Control Stakeholder Engagement Inputs

Tools & Techniques

 Project Management Plan

 Information Management System

 Issue Log

 Expert Judgment

 Work Performance Data  Project Documents

 Meetings

Outputs  Work Performance Information  Change Requests  Organization al Process Assets Updates  Project Management Plan Updates  Project Document Updates

Quiz 8

PMBOK Reading  Chapter 3  Section 3.6  Chapter 4  Section 4.4,

4.5  Chapter 5  Section 5.5, 5.6  Chapter 6  Section 6.7  Chapter 7  Section 7.4

 Chapter 8  Section 8.3  Chapter 10  Sections 10.3  Chapter 11  Section 11.6  Chapter 12  Section 12.3  Chapter 13  Section 13.4

PART XVI

CLOSING

Closing Processes

Integration

Procurement

Close Project Or Phase

Close Procurements

Close Project or Phase  The process of finalizing all activities across all of

the Project Management Process Groups to formally complete the project or phase.  When closing a project, project manager reviews all prior information from the previous phase closure to ensure all project work is completed and that the project has met its objectives.  Formally establishes that the project or project phase is finished.  Also establishes the procedures to investigate and document the reasons for actions taken if a project is terminated before completion

Close Project or Phase

Integration

Procurement

Close Project Or Phase

Close Procurements

Close Project or Phase  Completing the project scope doesn’t mean that

the project is done.  What remains is:  Collecting & finalizing paperwork.  Verifying that project product is acceptable.  Transferring completed project product to those who will use it & return resources back.

Activities taken to Close a Project or Phase  Confirm all requirements are met.  Verify and document that project or phase

meet exit criteria.  Obtain formal (legal) sign-off from customer.  Prepare final payments & cost reports.  Update records.  Finish lessons learned.

Activities taken to Close a Project or Phase (Cont’d)  Update procedures and templates based on lessons learned.  Analyze and document project success and effectiveness.  Prepare final report.  Index & archive records.  Measure customer satisfaction.  Hand off completed project deliverables to user(s)  Release resources

Final Report  The final report is a report that summarizes what

happened in the project .  It is prepared for all projects , irrespective of weather the project has been completed successfully or not.  Includes:  Overview of the project.  Evaluation of the team's performance.  List of issues encountered.  A summary of what went right and what wrong.  Deviations from the original plan and budget.  Summary of major accomplishments.  Recommendations for future projects.  Is made available to the senior management,

stakeholders, and other project managers.

How to Create a Final Report  Make a summary of how the project was carried

out.  Evaluate the performance of the project team.  Explain the issues encountered.  Provide recommendations for future projects.  Example: A project to create a website for a client.  The final report includes:  An overview of the project's initial objectives and specification.  Key changes to the objectives.  Recommendations for similar projects.

What Else?

---------

Why?

Close Project or Phase Outputs

Inputs  Project management plan

Tools & Techniques

 Accepted deliverables

 Expert Judgment

 Organization al process assets

 Analytical Techniques  Meetings

 Final product, service, or result  Organization al process assets updates

Close procurements  The process of completing each project

procurement.  It supports the “Close Project or Phase” process, since it involves verification that all work and deliverables were acceptable.

Close procurements  For all procurements and contracts.  Happens when:  A contract ends.  A contract is terminated before work

completion.  All contracts must be closed, no matter what.  Closing a contract provides a formal written verification that work and deliverables were accepted.

Close Procurement Vs. Close a Project or Phase  Closing procurement occurs first.  Closing a project or phase maybe done at the end

of project or phase, while closing a procurement happens at the end of the contract.  Closing contracts require more record keeping due to legal implications.

Close Project or Phase

Integration

Procurement

Close Project Or Phase

Close Procurements

Contract Terminations  Contracts are terminated usually by buyers

due to:  Cause (seller doesn’t perform)  Convenience (work no more needed)  Contracts should have provisions for stopping work before completion.  Rights and responsibilities of parties in early termination are contained in a termination clause in the contract

Close Procurements Inputs  Project management plan  Procurement Document

Tools & Techniques  Procurement Audits.  Procurement Negotiations  Records Management System

Outputs  Closed Procurement s  Organization al process assets updates

Activities taken to Close a Procurement  Verify Product.  Close financial records.  Update records.  Prepare final contract performance report.  Close contract file.  Perform procurement audit.  Finalize lessons learned.  Final acceptance and closure.

Contents of Contract File  Contract.  Change requests.  Seller performance reports.  Financial information.  Inspection (audit) results.  Lessons learned.

PMBOK Reading  Chapter 4  Section 4.6  Chapter 12  Section 12.4

PART XVII

PROFESSIONAL RESPONSIBILITY CODE OF ETHICS AND PROFESSIONAL CONDUCT

Code of Ethics and Professional Conduct Describes the expectations that we have of

ourselves and our fellow practitioners in the global project management community It articulates the ideals to which we aspire as well

as the behaviors that are mandatory in our professional and volunteer roles

Purpose & Target Group  Purpose  Instil confidence in the project management

profession  Help individuals become better practitioners  Target Group All PMI members All PMI credential holders Individuals in the process of application for

PMI credentials PMI volunteers

Structure  4 Values Responsibility Respect Fairness Honesty Each value has: Mandatory Conduct Aspirational Conduct

Mandatory Vs. Aspirational Conduct  Mandatory  Establish firm requirements, and in some cases,

limit or prohibit practitioner behavior.  Aspirational  Describe the conduct that we strive to uphold as

practitioners  Although adherence to the aspirational standards is not easily measured, conducting ourselves in accordance with it is not optional  The conduct covered under the aspirational

standards and conduct covered under the mandatory standards are not mutually exclusive

Responsibility

 Definition

Our duty to take ownership for the decisions we make or fail to make, the actions we take or fail to take, and the consequences that result.

ResponsibilityAspirational Standards  We make decisions and take actions based on the

best interests of society, public safety, and the environment  We accept only those assignments that are consistent with our background, experience, skills, and qualifications  We fulfill the commitments that we undertake – we do what we say we will do.  When we make errors or omissions, we take ownership and make corrections promptly.  When we discover errors or omissions caused by others, we communicate them to the appropriate body as soon they are discovered.  We protect proprietary or confidential information that

Responsibility – Mandatory Responsibility  We report unethical or illegal conduct to

appropriate management and, if necessary, to those affected by the conduct.  We report unethical or illegal conduct to appropriate management and, if necessary, to those affected by the conduct.  We bring violations of this Code to the attention of the appropriate body for resolution  We only file ethics complaints when they are substantiated by facts.  We pursue disciplinary action against an individual who retaliates against a person raising ethics concerns.

Respect  Description

Our duty to show a high regard for ourselves, others, and the resources entrusted to us

Respect- Aspiriational Standard  We inform ourselves about the norms and

customs of others and avoid engaging in behaviors they might consider disrespectful.  We listen to others’ points of view, seeking to

understand them.  We approach directly those persons with whom

we have a conflict or disagreement.  We conduct ourselves in a professional manner,

even when it is not reciprocated.

Respect – Mandatory Standard  We negotiate in good faith.  We do not exercise the power of our expertise or

position to influence the decisions or actions of others in order to benefit personally at their expense.  We do not act in an abusive manner toward others.  We respect the property rights of others.

Fairness  Description

Our duty to make decisions and act impartially and objectively. Our conduct must be free from competing self interest, prejudice, and favoritism.

Fairness- Aspirational Responsibility  We demonstrate transparency in our decision-

making process.  We constantly reexamine our impartiality and

objectivity, taking corrective action as appropriate.  We provide equal access to information to those

who are authorized to have that information.  We make opportunities equally available to

qualified candidates

Fairness – Mandatory Responsibility  We proactively and fully disclose any real or

potential conflicts of interest to the appropriate stakeholders.  When we realize that we have a real or potential conflict of interest, we refrain from engaging in the decision-making process or otherwise attempting to influence outcomes  We do not hire or fire, reward or punish, or award or deny contracts based on personal considerations, including but not limited to, favoritism, nepotism, or bribery.  We do not discriminate against others based on, but not limited to, gender, race, age, religion, disability, nationality, or sexual orientation.

Honesty 

Description Our duty to understand the truth and act in a truthful manner both in our communications and in our conduct.

Honesty – Aspirational Responsibility  We earnestly seek to understand the truth.  We are truthful in our communications and in

our conduct.  We provide accurate information in a timely

manner.  We make commitments and promises, implied

or explicit, in good faith.  We strive to create an environment in which

others feel safe to tell the truth.

Honesty – Mandatory Standard  We do not engage in or condone behaviour that is

designed to deceive others, including but not limited to:  Making misleading or false statements  Stating half-truths,  Providing information out of context, or  withholding information that, if known, would render our statements as misleading or incomplete.  We do not engage in dishonest behaviour with the

intention of personal gain or at the expense of another

At Orange We are direct and easy to understand. We keep things simple. We focus only on what’s important.

We are passionate, confident and focused on the future. We push the boundaries. We make a difference to people’s We take the time to listen. lives. We treat everyone as individuals. We enjoy working and succeeding together

Orange Values

We are brave. We dare to do things differently, to find a better way. We give colour to all that we do.

We are open. We say what we do and we do what we say. We are happy to share

At Orange Confidentiality  We use code names for TTM projects, we communicate

and discuss projects using code names  We keep our desks clan, we don’t keep sensitive TTM information on our desks  We don’t discuss TTM projects in open areas, we meet and discuss TTM projects in isolated areas  We don’t send sensitive TTM information such as deliverables and presentations by email, we use instantis as a communication tool  We use shredders to get rid from sensitive TTM documents  We determine who should review what on instantis, we mark sensitive information as confidential on instantis and we give access to selected team members

THANK YOU

PROJECT MANAGEMENT PROFESSIONAL TRAINING AND CERTIFICATION PROGRAM (PMP) MOHAMMAD AMAWI-PMP,PMOC

GETTING STARTED  The Certificates  About the exam    

Applying to take the exam Preparing for the exam How does the exam look like Taking the exam

 Take a sample exam

THE CERTIFICATES  There are a number of project management

certificates, taking this course qualifies you to take one of the following certificates:  Project Management Professional – PMP®  Certified Associate in Project Management –

CAPM®

THE CERTIFICATES Code of Conduct

Time of Exam

Questions

Yes

3 hours

150

4 hours

200

Yes

PM PM Education Certificate Experience Training

None

25 hours Bachelor Degree

4500 hour 35 hours (3 years)

Bachelor Degree

CAPM

PMP

ABOUT THE EXAM % of Questions

# of Questions

PMI Process

13%

26

Initiation

24%

48

Planning

30%

60

Execution

25%

50

Control

8%

16

Closing

ABOUT THE EXAMS

 PMI exams require certain procedures to qualify for tak

the exam – eligibility  Eligibility letters can be acquired online.  The exam measures the following:  Project Management knowledge  Practical experience  Common sense  Ethics & principles

Applying for the Exam  Apply for the Eligibility Online  Visit PMI’s website

https://certification.pmi.org/  Log in using username and password  You have 3 months to complete the process  Fill all the required information:  Address  Education  Experience  Details of completed projects  Contact Information for Managers and Supervisors  Project management education 

Applying for The Exam

 In the experience section: fill in all the information about

your project management related experience.  Project Title  Role in project  Primary Industry  Time spent on the project  Summary of tasks  Only Project-related work counts, operational work is

not considered part of the required experience.

Applying for The Exam  Contact Prometric® Center to schedule for

the exam.  Specify a time, date, and exam center  Make sure you know where the exam center is ahead of time, visit before the day of the exam

Application Rules  A new and improved online application.  Collection of project contact information.  Instant audit notification.  One-year eligibility period.  Limit on the number of times candidates will be

permitted to test. Candidates will have three opportunities to take and pass the PMP® examination within their one-year eligibility period. If candidates do not succeed on the third attempt, candidates will have to wait one year from their third unsuccessful attempt before being permitted

Few Tips  The exam measures the capability of using

knowledge and experience in real life, therefore most of the questions are situational  Only few questions require that you MEMORIZE the inputs, outputs, tools and techniques.  Don’t waste your time trying to memorize inputs, outputs, tools and techniques. It’ll do you no good.  Time of the exam is enough, no one ever complained about time.  You might use the same data for more than one question

Few Tips  Expect 18-22 formula based questions (CPM, EVM

and others)  The length of the question does not indicate that it’s a difficult one. And the length of the answer does not necessarily indicate that it’s the right one.  Many questions have more than one right answer, you have to choose the BEST.  A right statement does not make it the right answer to the question.  The questions jump from one topic to another without a specific sequence.

TYPES OF QUESTIONS  Situational questions  You received Notification that a major item you are

purchasing for a project will be delayed, what is the BEST Thing to do?  Ignore it, it will go away  Notify your boss  Let the customer know about it and talk over options  Meet with the team to identify alternatives.

TYPES OF QUESTIONS  Two or more right answers  Extraneous information  Questions using made up terms  Where understanding is important  New approach to known topic  Questions with more than one item in each

choice  Excessively wordy questions

Extraneous information  Your company is a major manufacturer of doors,

and has received numerous awards for quality. As the head of manufacturing department, you have 230 people reporting to you on 23 different projects. Experience shows that each time you double the production of doors, unit costs decrease by 10 percent. Based on this, the company determines that production of 3,000 doors costs $ 21,000. This case illustrates:  Learning cycle  Law of diminishing return  80/20 rule  Parametric estimating

Questions Using Made Up Terms  A form of project organization where power is

evenly shared between the functional manager and the project manager is called:  A tight matrix  A weak matrix  A balanced matrix  A strong matrix

Where Understanding is Important  The process of decomposing deliverables into

smaller, more manageable components is complete when:  Project justification has been established  Change requests have occurred  Cost and duration estimates can be developed for each work element at this detail  Each work element can be found in the WBS Dictionary

New approach to know topic  In a matrix organization, information dissemination

is MOST likely to be effective when:  Information flows both horizontally and vertically  The communications flows are kept simple  There is an inherent logic in the type of matrix shown  Project managers and functional managers socialize

Questions with more than one item in each choice  The seller on the project has presented the project manager with a

formal notification that the seller has been damaged by the buyers activities. The seller claims that the buyer’s slow response to sending the seller approvals has delayed the project, and has caused the seller unexpected expense. The FIRST things the project manager should do are:  Collect all relevant data, send the data to the company lawyer, and consult with him about legal actions  Review the contract for specific agreed-upon terms that relate to the issue, see if there is a clear response, and consult with the lawyer if needed  Review the statement of work for requirements, send a receipt of claim response, and meet to resolve the issue without resorting to legal actions if possible  Hold a meeting with the team to review why the acceptances have been late, make a list of the specific reasons, and resolve those reasons

STUDYING FOR THE EXAM  Reading the material  Reviewing PMBOK® - Project Management

Body of Knowledge  Processes in each knowledge area  Inputs, tools & techniques, outputs of processes  Review code of professional conduct  Solve a lot of practice questions

STUDYING FOR THE EXAM  Rule of Threes  Test-taking mode  Step-by-step     

Take a comprehensive exam Go back to the areas you scored less in, and study them in concentration Review other areas Review answers Retake the entire exam

BEFORE THE EXAM

 Review material  Eat a good meal, see some TV, go out with friends  Get a good night sleep (don’t study material, don’t stay

up all night)  Take the day of the exam off work (or at least the morning)  Eat a good meal, drink some coffee, juice.

THE DAY OF THE EXAM  Schedule the exam between 9-10  Wear comfortable cloths, shoes  Leave the house at least 45 minutes before the

exam starts  Take two Identification cards and the eligibility letter  No calculator, no cell phone, no review notes, no smoking  Take a snack (they might allow it)

DURING THE EXAM  Watch the time regularly  Skip questions you can’t answer instantly  Use “Mark” function  At the middle mark of the exam, stand up, and

do some exercise  Use your time wisely  Control your frustration

REFERENCES 1- My Life is Failure. By: Jim Johnson 2- The Alpha Project Manager. By: Andy Crowe 3- The Lazy Project Manager. By: Peter Taylor 4- How to win friends and influence people. By: Dale Carnegie 5- Critical Chain. By: Elyahu Goldratt 6- The One Minute Manager. By: Kim Blanchard. 7- The Goal. By: Elyahu Goldratt. 8- Who moved my cheese. By: Spencer Johnson. 9- Emotional Intelligence. By: Daniel Goleman. 10- Leading Change. By: John Kotter