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Dr. Hassan AlsukhniDr. Hassan Alsukhni
© www.asia-masters.com

 Project – temporary endeavor undertaken to
create a unique product or service
 Has a definite beginning and end and
interrelated activities
 Programs adopt new set of objectives and
continue to work; projects cease when declared
objectives have been attained
Chapter 1 – Introduction
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
 Projects are unique – characteristics are progressively
elaborated
 Progressively: proceeding in steps
 Elaborated: worked with care and detail
 Scope of project should remain constant even as
characteristics are “progressively elaborated”
Chapter 1– Introduction
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
 Project Management: the application of
knowledge, skills, tools and techniques to
project activities in order to meet or exceed
stakeholder needs and expectations from a
defined project – balancing the following:
 Scope, time, cost, and quality
 Stakeholders’ expectations
 Requirements (needs) vs. unidentified
requirements (expectations)
Chapter 1 - Introduction
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
 Programs are groups of projects managed in
a coordinated way to obtain benefits not
available from managing the projects
individually
 Most programs have elements of ongoing
operations
 Series of repetitive or cyclical undertakings
 Projects are often divided into “subprojects”
for more manageability
 Often contracted out to external organizations
Chapter 1 - Introduction
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
 Project Phases are marked by the completion of a
deliverable
 Tangible, verifiable work product
 Review of deliverables and approval/denial are
“phase exits, stage gates, or kill points”
 Phases are collected into the Project Life Cycle
 Set of defined work procedures to establish
management control
Chapter 2 – Project
Management Context
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
 Project Life Cycle defines:
 Technical work performed in each phase
 Who is involved in each phase
 Project Phases can overlap – “Fast Tracking”
 Common Characteristics of Project Life Cycles:
 Cost and Staffing levels are low at start and move higher
towards the end
 Probability of successfully completing project is low at
beginning, higher towards the end as project continues
 Stakeholder influence is high at the beginning and
progressively lowers as project continues
Chapter 2 – Project
Management Context
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
 Stakeholders: individuals and organizations
who are actively involved in the project
 Often have conflicting expectations and objectives
 In general, differences should be resolved in favor
of the customer – individual(s) or organization(s)
that will use the outcome of the project
 Stakeholder management is a proactive task
 Project Mangers must determine all stakeholders and
incorporate their needs into the project
Chapter 2 – Project
Management Context
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
 Stakeholders are:
 Project Managers
 Customers
 Performing Organizations, owners
 Sponsor
 Team
 Internal/External
 End User
 Society, citizens
 Others: owner, funders, supplier, contractor
Chapter 2 – Project
Management Context
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
 Organizational Systems: Project based vs. Non-
Project Based
 Project Based – derive revenues from performing
projects for others (consultants,
contractors),”management by projects”
 Non-Project Based – seldom have management
systems designed to support project needs
(manufacturing, financial services)
Chapter 2 – Project
Management Context
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
 Organizational Cultures and Styles:
 Entrepreneurial firms more likely to adopt highly
participative Project Manager – accept higher
risk/reward
 Hierarchical firms less likely to adopt participative
Project Manager – take fewer risks
Chapter 2 – Project
Management Context
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
 Organizational Structures
 Functional (classical) marked by identifiable superiors.
Staff grouped by specialty . Perceived scope of project
limited by function (Engineering, HR). Typically have
part-time Project Manager
 Projectized Organization –blend functional and
projectized characteristics. Mix cross-department
personnel with full-time Project Manger
Chapter 2 – Project
Management Context
© www.asia-masters.com

 Project Management Skills
 General Business Management (consistently
producing results expected by stakeholders)
 Leading (establishing direction, aligning resources,
motivating)
 Communicating (clear, unambiguous, and complete)
 Negotiating (conferring with others to reach an
agreement)
 Problem Solving (definition and decision making)
 Distinguish causes and symptoms
 Identify viable solutions
 Influencing Organization (understanding power and
politics)
Chapter 2 – Project
Management Context
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
 Socioeconomic Influences
 Standards – document approved that provides
common, repeated use, rules and guidelines
 Compliance is not mandatory
 Regulations – document that identifies products,
services or characteristics
 Compliance is mandatory
 Standards often become “de facto” regulations
 Internationalization
 Cultural Influences
Chapter 2 – Project
Management Context
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
 Organization Structure Pro’s and Con’s
 Projectized
 Efficient Organization – No “home”
 Loyalty – Lack of Professionalism
 Effective Communication – Duplication of functions, less
efficient resource usage
 Matrix
 Visible Objectives – not cost effective
 PM Control – More than 1 boss
 More support – More complex to control
 Utilize scarce resources – Tough resource allocation
 Information distribution – Competition of priorities
 Coordination – Policies & Procedures
 Home based – Potential for conflict
Chapter 2 – Project
Management Context
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
 Functional Organization
 Specialists – More emphasis on functions
 1 supervisor – No career path in PM
Chapter 2 – Project
Management Context
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
 Project Management requires active
management of Project Processes
 Series of actions that achieve a result
 Project Management Processes
 Describing and organizing the work
 Product-Oriented Processes
 Specifying and creating the product
Chapter 3 – Project
Management Processes
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
 Process Groups:
 Initiating processes: recognizing a project or
phase should begin
 Planning processes: devising and maintaining a
workable plan
 Executing processes: coordinating resources to
execute the plan
 Controlling processes: ensuring project objectives
are met; monitoring, correcting and measuring
progress
 Closing processes: formalized acceptance
Chapter 3 – Project
Management Processes
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
 Process Groups are linked by the results each
produces
 Process Groups are overlapping activities
with various levels of intensity
 Process Group interactions cross phases –
“rolling wave planning”
 Provides details of work to complete current
phase and provide preliminary description of
work for subsequent phases
 Individual processes have inputs, tools and
techniques, and outputs (deliverables)
Chapter 3 – Project
Management Processes
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
 Initiating and Planning Processes
 Committing the organization to begin
 Initiation, High-level planning, Charter
 Amount of planning proportional to the
scope of the project – Core Planning
 Scope Planning – written statement
 Scope Definition – subdividing major
deliverables into more manageable units
 Activity Definition – determine specific tasks
needed to produce project deliverables
 Activity Sequencing – plotting dependencies
Chapter 3 – Project
Management Processes
© www.asia-masters.com

 Core Planning (continued)
 Activity Duration Estimating – determine amount of work
needed to complete the activities
 Schedule Development – analyze activity sequences,
duration, and resource requirements
 Resource Planning – identify what and how many
resources are needed to perform the activities
 Cost Estimating – develop resource and total project costs
 Cost Budgeting – allocating project estimates to individual
work items
 Project Plan Development – taking results from other
planning processes into a collective document
Chapter 3 – Project
Management Processes
© www.asia-masters.com

 Planning/Facilitating Processes – manage the
interaction among the planning processes
 Quality Planning – standards that are relevant to the
project and determining how to meet standards
 Organizational Planning – identify, document, and
assigning project roles and responsibilities
 Staff Acquisition – obtaining the human resources
 Communications Planning – determining rules and
reporting methods to stakeholders
Chapter 3 – Project
Management Processes
© www.asia-masters.com

 Planning/Facilitating Processes (continued)
 Risk Identification – determining what is likely to
affect the project and documenting these risks
 Risk Quantification – evaluating risks and
interactions to access the possible project outcomes
 Risk Response Development – defining enhancement
steps and change control measures
 Procurement Planning – determining what to buy and
when
 Solicitation Planning – documenting product
requirements and identifying possible sources
Chapter 3– Project
Management Processes
© www.asia-masters.com
 Planning/Facilitating Processes (continued)
 Order of events:
 Scope Statement
 Create Project Team
 Work Breakdown Structure
 WBS dictionary
 Finalize the team
 Network Diagram
 Estimate Time and Cost
 Critical Path
 Schedule
 Budget
 Procurement Plan
 Quality Plan
 Risk Identification, quantification and response development
 Change Control Plan
 Communication Plan
 Management Plan
 Final Project Plan
 Project Plan Approval
 Kick off
Chapter 3– Project
Management Processes
© www.asia-masters.com

 Executing Processes
 Project Plan Execution – performing the activities
 Complete Tasks/Work Packages
 Information Distribution
 Scope Verification – acceptance of project scope
 Quality Assurance – evaluating overall project
performance on a regular basis; meeting
standards
 Team Development – developing team and
individual skill sets to enhance the project
 Progress Meetings
Chapter 3 – Project
Management Processes
© www.asia-masters.com

 Executing Processes (continued)
 Information Distribution – making project
information available in a timely manner
 Solicitation – obtaining quotes, bids, proposals as
appropriate
 Source Selection – deciding on appropriate suppliers
 Contract Administration – managing vendor
relationships
Chapter 3 – Project
Management Processes
© www.asia-masters.com

 Controlling Processes – needed to regularly
measure project performance and to adjust
project plan
 Take preventive actions in anticipation of
possible problems
 Change Control – coordinating changes across
the entire project plan
 Scope Change Control – controlling “scope
creep”
 Schedule Control – adjusting time and project
schedule of activities
Chapter 3 – Project
Management Processes

 Controlling Processes (continued)
 Cost Control – managing project budget
 Quality Control – monitoring standards and specific
project results; eliminating causes of unsatisfactory
performance
 Performance Reporting – status, forecasting, and
progress reporting schedule
 Risk Response Control – responding to changes in
risk during the duration of the project
Chapter 3– Project
Management Processes
© www.asia-masters.com

 Closing Processes
 Administrative Closure – generating necessary
information to formally recognize phase or project
completion
 Contract Close-out – completion and delivery of
project deliverables and resolving open issues
 Procurement Audits
 Product Verification
 Formal Acceptance
 Lessons Learned
 Update Records
 Archive Records
 Release Team
Chapter 3 – Project
Management Processes
© www.asia-masters.com

 Overall Processes
 Influencing the organization
 Leading
 Problem Solving
 Negotiating
 Communicating
 Meetings
Chapter 3 – Project
Management Processes
© www.asia-masters.com

 Project Selection Techniques
 Comparative Approach (similar projects)
 Benefit measurement method
 Constrained Optimization (mathematical approach)
 Key aspect of scope verification is customer
acceptance
 Only 26 % of projects succeed
Chapter 3– Project
Management Processes
© www.asia-masters.com
 Project Integration Management
 Ensures that the project processes are properly coordinated
 Tradeoffs between competing objectives and alternatives in
order to meet stakeholder approval
 Project Plan Development
 Project Plan Execution
 Overall Change Control
 These processes may occur repeatedly over the project duration
 Historical Records are needed to perform project management
well, they are inputs to continuous improvement
 Files
 Lessons Learned
 Actual Costs
 Time Estimates
 WBS
 Benchmarks
 Risks
Chapter 4 – Project
Integration Management
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
 Project Plan Development
 Uses outputs from other planning processes to
create consistent document to guide project
execution and control
 Iterated several times
 Documents planning assumptions
 Documents planning decisions that are chosen
 Facilitates communication
 Defines key management reviews
 Provides a baseline to track progress
measurement and project control
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Project Plan Development Inputs
 Other planning outputs: primarily the planning
process outputs (WBS, base documents,
application area inputs)
 Historical information – verify assumptions,
records of past project performance
 Organizational policies – quality management,
personnel administration, Financial controls
 Constraints – factors that limit performance,
contractual provisions, budget
 Assumptions – risk factors
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Tools & Techniques for Plan Development
 Project Planning Methodology – any structured
approach (software, templates, forms, start-up
meetings
 Stakeholder Skills & Knowledge – tap into plan
development; use expertise for reasonableness
 PMIS – Out of the box approach to support all
project aspects through closure
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Project Plan Development Outputs
 Project Plan is a collection that changes over time as more
information about the project becomes available
 Baseline will change only in response to approved scope
change
 Project Plan includes some or all of the following:
 Project Charter
 Project Management approach or strategy
 Scope statement
 Work Breakdown Structure (WBS)
 Budget, schedule, risks
 Key Staff, Major Milestones
 Change Control Plan, Management and Communications Plan
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Project Plan Components (continued)
 Cost Estimates, scheduled start dates and responsibility
assignments
 Performance measurement baselines
 Major milestones and target dates
 Required Staff
 Risks, constraints and assumptions
 Subsidiary management plans (scope, schedule)
 Open Issues
 Pending Decisions
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Supporting Details to the Project Plan
 Outputs from planning processes
 Technical documentation
 Business requirements, specifications, and designs
 Relevant standards
 Additional information not previously known
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Project Plan Execution
 Primary process for carrying out the project plan
 Most costly aspect of project management
 Direction of organizational resources and interfaces
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Project Plan Execution Inputs:
 Project Plan
 Supporting Detail
 Organizational Policies
 Corrective Action – anything to bring expected
performance in line with the project plan
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Tools & Techniques for Plan Execution
 General Management Skills
 Product Skills and Knowledge – defined as part of
planning, provided by staffing
 Work Authorization System – formal procedure
for sanctioning work to ensure completion –
written or verbal authorization
 Status review meetings – regular exchanges of
information
 Project Management Information System
 Organizational Procedures
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Project Plan Execution Outputs
 Work results – the outcome of activities performed is
fed into the performance reporting process
 Change Requests – expand/shrink project scope,
modify costs and schedule estimates
Chapter 4 – Project
Integration Management
© www.asia-masters.com
 Overall Change Control
 Influencing factors that create change to ensure beneficial
results; ensure that change is beneficial
 Determining that change has occurred
 Managing actual changes as they occur
 Evaluate impact of change
 Meet with team to discuss alternatives
 Meet with management to present decision
 Change control requires
 Maintaining integrity of performance measurement baselines
(project plan)
 Ensuring changes to scope are accurately recorded
 Coordinating changes across knowledge areas (scheduling,
risk, cost, quality, etc.)
 Determine all factors that control change and pro-actively
preventing the occurrence; evaluate the impact of change
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Inputs to Change Control
 Project Plan – baseline performance
 Performance Reports – issue tracking, risk
management
 Change Requests – orally or written, externally or
internally initiates, legally mandated or optional
Chapter 4 – Project
Integration Management
© www.asia-masters.com
 Change Control Tools & Techniques
 All Changes must be evaluated before a decision can
be reached
 Change Control System – collection of formal
procedures, paperwork, tracking systems, approval
levels
 Change Control Board – decision making authority
 Configuration Management – documented procedure
to apply technical and administrative direction
 ID and document functional and physical characteristics
 Control changes to these characteristics
 Record and report change and implementation status
 Audit items and system to verify requirements
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Change Control Tools & Techniques
 Performance Measurement – earned value, plan
variance analysis
 Additional Planning – revised cost estimates, modify
activity sequences, plan adjustments
 Project Management Information System
 Change Control System may have
 Change Control Plan
 Change Control Board
 Change Control Procedures, Corrective Action plans
 Performance Statistics, Reports, Change forms
 Specification reviews, Demonstrations, Testing, Meetings
 Configuration Management
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Change Control Outputs
 Project Plan Updates
 Corrective Actions
 Lessons Learned – variance causes and reasoning
documented for historical purposes
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Configuration Management
 Rigorous Change Management as it relates to scope
 Subset of the change control system
 Work Authorization System
 Controls “gold plating”; defines what task is/is not
 Meetings
 Most are inefficient; keep minutes
 Status can be determined without meeting
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Lessons Learned
 Project is not complete until a Lessons Learned is
completed
 What have we done, how can we do it better
 Technical Aspects of the project
 Project Management (WBS, plans, etc.)
 Overall Management (communications, leadership)
 Best to have whole team complete and made available
 Also called “Post – Mortem”
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Integration is a result of need for
communication within a project
 Primary responsibility to decide what
changes are necessary is Management
 Project Managers must pro-actively define
and solve problems before reporting to
superiors
Chapter 4 – Project
Integration Management
© www.asia-masters.com

 Project Scope Management
 Processes required to ensure that the project
includes all, and only, work required
 Defining what “is/is not” included in the project
 Project scope – work that must be done –
measured against project plan
 Product scope – features and functions included
in the product or service – measured against
requirements
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Initiation – process of formally recognizing that
a new project exists, or an existing project
continue to next phase
 Involves feasibility study, preliminary plan, or
equivalent analysis
 Authorized as a result of:
 Market Demand
 Business Need
 Customer Request
 Technological Advance
 Legal Requirement
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Initiation Inputs:
 Product Description – characteristics of the
product/service that the project was to create
 Less detail in early phases, more comprehensive in latter
 Relationship between product/service and business need
 Should support later project planning
 Initial product description is usually provided by the buyer
 Strategic Plan – supportive of the organization's goals
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Initiation Inputs (continued)
 Project Selection Criteria – defined in terms of
the product and covers range of management
concerns (finance, market)
 Historical Information – results of previous
project decisions and performance should be
considered
Chapter 5 – Project Scope
Management
© www.asia-masters.com
 Tools & Techniques for Initiation
 Project Selection Methods:
 Benefit measurement models – comparative approaches,
scoring models, economic models
 Murder Boards
 Peer Review
 Scoring Models
 Economic Models
 Benefits compared to costs
 Constrained operation models – programming mathematical
 Linear Programming
 Integer Programming
 Dynamic Programming
 Multi-objective programming
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Tools & Techniques for Initiation
 Project Selection Methods:
 Decision models – generalized and sophisticated techniques
 Expert judgment
 Business Units with specialized skills
 Consultant
 Professional and Technical Associations
 Industry Groups
 Delphi Technique – obtain expert opinions on technical
issues, scope of work and risks
 Keep expert’s identities anonymous
 Build consensus
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Outputs from Initiation:
 Project Charter – formally recognizes project,
created by senior manager, includes:
 Business need/Business Case
 Product description & title
 Signed contract
 Project Manager Identification & Authority level
 Senior Management approval
 Project’s Goals and Objectives -
 Constraints – factors that limit project management
team’s options
 Assumptions – factors that are considered true for
planning purposes. Involve a degree of risk
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Scope Planning – process of developing a
written statement as basis for future
decisions
 Criteria to determine if the project or phase is
successful
 Scope Planning Inputs:
 Product description
 Project Charter
 Constraints
 Assumptions
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Scope Planning Tools & Techniques
 Product Analysis - developing a better
understanding of the product of the project
 Cost/Benefit Analysis – estimating
tangible/intangible costs and returns of various
project alternatives and using financial measures
(R.O.I.) to assess desirability
 Alternatives Identification – generate different
approaches to the project; “brainstorming”
 Expert Judgment
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Scope Planning Outputs
 Scope Statement – documented basis for making
project decisions and confirming understanding
among stakeholders. Includes:
 Project justification – business need, evaluating future
trade-offs
 Project Product – summary of project description
 Project Deliverables – list of summary of delivery items
marking completion of the project
 Project Objectives – quantifiable criteria met for success.
Addresses cost, schedule and metrics – unqualified
objectives indicate high risk (customer satisfaction)
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Scope Planning Outputs (continued)
 Supporting detail – includes documentation of all
assumptions and constraints
 Scope Management Plan – how project scope is
managed, change control procedure, expected
stability, change identification and classification
 Control what is/is not in the project; prevents delivering
“extra” benefits to the customer that were not
specified/required
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Scope Definition – subdividing major
deliverables into smaller, manageable
components
 Improve accuracy of cost, time, and resource
estimates
 Define a baseline for performance measurement
 Clear responsibility assignments
 Critical to project success – reduces risk of higher
cost, redundancy, time delays, and poor
productivity
 Defines “what” you are doing; WBS is the tool
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Scope Definition Inputs:
 Scope Statement
 Constraints – consider contractual provisions
 Assumptions
 Other Planning Outputs
 Historical Information
Chapter 5 – Project Scope
Management
© www.asia-masters.com

 Scope Definition Tools & Techniques
 Work Breakdown Structure – templates from
previous projects
 Decomposition – subdividing major deliverables
into manageable components:
 Major elements – project deliverables and project management
approach
 Decide cost and duration estimates are appropriate at level of
detail
 Constituent elements – tangible verifiable results to enable
performance management, how the work will be accomplished
 Verify correctness of decomposition
 All items necessary and sufficient?
 Clearly and completely defined?
 Appropriately scheduled, budgeted, assigned?
Chapter 5 – Project Scope
Management

 Scope Definition Outputs
 Work Breakdown Structure (WBS) – a
deliverable-oriented grouping of project
assignments that organizes and defines the scope
of the project
 Each descending level represents further detail; smaller and
more manageable pieces
 Each item is assigned a unique identifier collectively known as
“code of accounts”
 Work element descriptions included in a WBS dictionary
(work, schedule and planning information)
 Other formats:
 Contractual WBS – seller provides the buyer
 Organizational (OBS) – work elements to specific org. units
 Resource (RBS) – work elements to individuals
Chapter 5 – Project Scope
Management

 Scope Definition Outputs
 Work Breakdown Structure (WBS)
 First Level is commonly the same at the Project Life Cycle
(requirements, design, coding, testing, conversion and
operation)
 First level is completed before the project is broken down
further
 Each level of the WBS is a smaller segment of level above
 Work toward the project deliverables
 Break down project into tasks that
 Are realistically and confidently estimable
 Cannot be logically divided further
 Can be completed quickly (under 80 hours rule of thumb)
 Have a meaningful conclusion and deliverable
 Can be completed without interruption
Chapter 5 – Project Scope
Management

 Scope Definition Outputs
 Work Breakdown Structure (WBS) - Benefits
 Prevent work slippage
 Project team understands how their tasks fit into the overall
project and their impact upon the project
 Facilitates communication and cooperation between project
team and stakeholders
 Helps prevent changes
 Focuses team experience into what needs to be done – results
in higher quality
 Basis and proof for estimating staff, cost and time
 Gets team buy-in, role identification
 Graphical picture of the project hierarchy
 Identifies all tasks, project foundation
Chapter 5 – Project Scope
Management

 WBS phrases
 Graphical hierarchy of the project
 Identifies all tasks
 Foundation of the project
 Very important
 Forces thought of all aspects of the project
 Can be re-used for other projects
Chapter 5 – Project Scope
Management
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
 Scope Definition Outputs
 Work Breakdown Structure (WBS) – Dictionary
 Designed to control what work is done and when
 Also known as a task description
 Puts boundary on what is included in a task and what is not
included
Chapter 5 – Project Scope
Management
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
 Scope Verification Inputs
 Work results – partially/completed deliverables,
costs to date
 Product documentation – description available
for review (requirements)
 Scope Verification Tools & Techniques
 Inspection – measuring, examining, testing to
determine if results conform to requirements
 Scope Verification Outputs
 Formal acceptance – documentation identifying
client and stakeholder approval, customer
acceptance of efforts
Chapter 5 – Project Scope
Management

 Scope Change Control:
 Influencing factors to ensure that changes are
beneficial
 Determining scope change has occurred
 Managing changes when they occur
 Thoroughly integrated with other control processes
Chapter 5 – Project Scope
Management
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
 Scope Change Control Inputs:
 Work Breakdown Structure
 Performance Reports - issues reported
 Change Requests – expansion/shrink of scope
derived from :
 External events (government regulations)
 Scope definition errors of product or project
 Value adding change – new technology
 Scope Management Plan
Chapter 5 – Project Scope
Management
© www.asia-masters.com
 Scope Change Control Tools & Techniques
 Scope Change Control System – defines procedures how scope
change can occur
 All paperwork, tracking systems, approval levels
 Integrated with overall change control procedures
 Performance Measurement – determine what is causing
variances and corrective actions
 Additional Planning
Chapter 5 – Project Scope
Management
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
 Scope Change Control Outputs:
 Scope Changes – fed back through planning
processes, revised WBS
 Corrective Actions
 Lessons Learned – cause and reasoning for variances
documented for historical purposes
Chapter 5 – Project Scope
Management
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
 Management By Objectives (MBO)
 Philosophy that has 3 steps:
 Establish unambiguous and realistic objectives
 Periodically evaluate if objectives are being met
 Take corrective action
 Project Manager must know that if project is not aligned or
support corporate objectives, the project is likely to lose
resources, assistance and attention.
 MBO only works if management supports it
Chapter 5 – Project Scope
Management
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
 Project Time Management
 Processes required to ensure timely completion of the
project
 No consensus concerning differences between
activities and tasks
 Activities seen as composed of tasks –most common
usage
 Other disciplines have tasks composed of activities
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Definition: identifying and documenting
specific activities to produce project deliverables
identified in the WBS
 Must be defined to meet the project objectives
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Definition Inputs
 WBS – primary input
 Scope Statement – project justification & project
objectives
 Historical Information
 Constraints
 Assumptions
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Definition Tools & Techniques
 Decomposition – outputs are expressed as activities
rather than deliverables
 Templates – reuse from previous projects
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Definition Outputs
 Activity List – all to be performed; extension to
the WBS and includes description to ensure team
members understand work to be performed
 Supporting Detail – organized as needed and
include all assumptions and constraints
 WBS Updates – identify missing deliverables and
clarify deliverable descriptions. WBS updates
often called refinements; more likely using new
technologies in project
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Sequencing – identifying and documenting
interactive dependencies among activities. Support
later development of a realistic schedule
 Project Management software often used
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Sequencing Inputs:
 Activity List
 Product Description – product characteristics often affect
activity sequencing
 Mandatory Sequencing – physical limitations, hard logic,
prototypes needed; inherent in nature of work being done
 Discretionary Dependencies – defined by project
management team; “best practices” or unusual aspects of
project – soft logic, preferred logic, preferential logic
 External Dependencies – relationship between project
activities and non-project activities (company policies,
procurement, etc.)
 Constraints
 Assumptions
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Network Diagrams
 Shows how the project tasks will flow from beginning
to end
 Proves how long the project will take to complete
 Takes project tasks from low levels of WBS and
placing them into their order of completion (beginning
to end)
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Sequencing Tools & Techniques
 Precedence Diagramming Method (PDM) –
constructing network diagram using nodes to
represent activities and arrows to indicate
dependencies; also called Activity On Node
(AON)
 Most project management software uses
 Includes 4 types of dependencies:
 Finish to Start – “from” activity must finish before “to” activity can
begin; most commonly used
 Finish to Finish – “from” activity must finish before the next may
finish
 Start to Start – “from” activity must start before next “to” activity can
start
Chapter 6 – Project Time
Management
 Activity Sequencing Tools & Techniques (continued)
 Arrow Diagramming Method (ADM) – uses arrows to
represent activities and connecting at nodes to illustrate
dependencies
 Also called Activity On Arrow (AOA)
 Only uses finish to start dependencies
 PERT and CPM only can be drawn using AOA
Chapter 6 – Project Time
Management
© www.asia-masters.com
 Activity Sequencing Tools & Techniques (continued)
 Conditional diagramming methods
 GERT (Graphical Evaluation and Review Technique)
 System Dynamic Models
 Allow for non-sequential activities (loops) or conditional
branches – not provided by PDM or ADM methods
Chapter 6 – Project Time
Management
© www.asia-masters.com
 Activity Sequencing Tools & Techniques (continued)
 Network Templates – standardized networks can be used.
Composed of subnets, or fragnets
 Subnets are several nearly identical portions of a network
(floors on a building, clinical trials, program modules)
 Useful for several identical processes (clinical trials,
programming modules).
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Sequencing Outputs:
 Project Network Diagram – schematic display of
project activities and relationships (dependencies).
Should be accompanied by a summary narrative that
describes the diagram approach
 Activity List Updates
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Duration Estimating
 Involves assessing number of work periods needed to
complete identified activities
 Requires consideration of elapsed time, calendars,
weekends, and day of week work starts
Chapter 6 – Project Time
Management
 Activity Duration Estimating Inputs:
 Activity Lists
 Constraints
 Assumptions
 Resource Requirements – amount of labor assigned to
activity
 Resource Capabilities – human and material resources,
expertise
 Historical Information
 Project Files, or records of previous project results
 Commercial Duration Estimates – useful when durations are
not driven by actual work (approval periods, material
resources)
 Project Team Knowledge
Chapter 6 – Project Time
Management
 Activity Duration Estimating Tools & Techniques
 Expert Judgment – guided by historical information
should be used whenever possible; high risk without
expertise avail.
 Simulation – using different sets of assumptions (Monte
Carlo Analysis) to drive multiple durations
 Analogous Estimating – “top down estimating” – use
actual, similar, previous known durations as basis for
future activity duration. Used when limited knowledge
is available. Form of expert judgment
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Activity Duration Outputs:
 Activity Duration Estimates – quantitative
assessments of work periods to complete an activity.
Should indicate a range +/- of possible results
 Basis of Estimates – all assumptions should be
documented
 Activity List Updates
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Schedule Development
 Determining start and finish dates for project activities
 Without realistic dates, project unlikely to be finished
as scheduled
 Schedule development process often iterates as more
information becomes available (process inputs)
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Schedule Development Inputs:
 Project Network Diagram
 Activity Duration Estimates
 Resource Requirements
 Resource Pool Description – availability patterns;
shared resources are highly variable
 Calendars – define eligible work periods
 Project Calendars affect all resources
 Resource Calendars – affect specific resource pools or
individuals
Chapter 6 – Project Time
Management

 Schedule Development Inputs (continued):
 Constraints
 Imposed Dates – may be required
 Key events or milestones – are initially requested and
become expected during project
 Assumptions
 Lead and Lag Time – dependencies may specify
time in order to satisfy relationship (example – 2
weeks to receive order)
Chapter 6 – Project Time
Management

 Schedule Development Tools & Techniques
 Mathematical Analysis – calculating theoretical
early/late finish and start dates without regard
for resource pool limitations; indicate time
periods which activity should be scheduled given
resource limits and other constraints:
 Critical Path Method (CPM) – single early/late start and finish date for
all activities. Based on specified, sequential network and single
duration estimate. Calculates float to determine flexibility
 Graphical Evaluation and Review Technique (GERT) – probabilistic
treatment of network and activity duration estimates
 Program Evaluation and Review Technique (PERT) - sequential
network and weighted average duration to calculate project duration –
differs from CPM by using mean (expected value) instead of most-
likely estimate in CPM
Chapter 6 – Project Time
Management

 Schedule Development Tools & Techniques
 Critical Path Method: refers to estimating based on one
time estimate per activity
 One time estimate per task (Most Likely)
 Emphasis on controlling cost and leaving schedule flexible
 Drawn using AOA diagrams
 Can have dummy task
 PERT (Program Review and Estimating Technique)
 3 Time estimates per activity
 Optimistic
 Pessimistic
 Most Likely
 Emphasis on meeting schedule, flexibility with costs
 Drawn on AOA diagrams
 Can have dummy tasks
Chapter 6 – Project Time
Management

 Schedule Development Tools & Techniques
 Monte Carlo Analysis
 Uses a computer with PERT values and network
diagram
 Tells
 Probability of completing a project on any specific day
 Probability of completing a project for any specific amount
of cost
 Probability of any task actually being on the critical path
 Overall Project Risk
 Suggests that Monte Carlo simulation will create a
project duration that is closer to reality than CPM or
PERT
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Schedule Development Tools & Techniques
(continued)
 Duration Compression – look to shorten project
schedule without affecting scope
 Crashing – cost and schedule trade-offs to determine
greatest amount of compression for least incremental
cost – often results in higher costs
 Fast Tracking – performing activities in parallel that
normally would be sequenced – often results in re-work
and usually increases risk
 Simulation
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Schedule Development Tools & Techniques
(continued)
 Resource Leveling Heuristics – leveling
resources that apply to critical path activities
a.k.a. “resource constrained scheduling” – when
limitation on quantity of available resources;
sometimes called “Resource Based Method” –
often increases project duration
 Project Management Software
Chapter 6 – Project Time
Management

 Schedule Development Tools & Techniques
(continued)
 Project Manger’s role
 Provide the team with the necessary information to
properly estimate the task
 Complete a sanity check of the estimate
 Formulate a reserve
 Project Team should be involved; determine
task estimates
 Historical Records
 Guesses
 Actual Costs
 Benchmarks
Chapter 6 – Project Time
Management

 Schedule Development Tools & Techniques
 Critical Path Method: longest path through a network
diagram and determines the earliest completion of the
project
 Proves how long the project will take
 Indicates tasks that need most monitoring
 Almost always have no slack
Chapter 6– Project Time
Management
© www.asia-masters.com

 Schedule Development Outputs:
 Project Schedule – includes planned start and finish
dates for each activity; remains preliminary until
resources assignments are approved. Usually in
following formats:
 Project Network Diagrams (with date information
added) – show logical and critical path activities
 Bar or Gantt charts – activity start and end dates,
expected durations
 Milestone Charts – identifies key deliverables and
interfaces
 Time-scaled network diagrams – blend of project
network and bar charts
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Schedule Development Outputs
(continued):
 Supporting Detail – all assumptions and
constraints. May also include:
 Resource requirement by time period (resource
histogram)
 Alternative schedules (best/worst case)
 Schedule reserve/risk assessments
 Schedule Management Plan – how updates are
managed
 Resource requirement updates – leveling and
activity impact
Chapter 6 – Project Time
Management

 Schedule Control:
 Influencing factors which create schedule changes
to ensure changes are beneficial
 Determining that schedule has changed
 Managing actual changes as they occur
 Inputs to Schedule Control:
 Project Schedule – baseline approved, measure
against project performance
 Performance Reports – planned dates met, issues
 Change Requests
 Schedule Management Plan
Chapter 6 – Project Time
Management

 Schedule Control Tools & Techniques
 Schedule Change Control System – defines
procedures for schedule changes, paperwork,
approval, tracking systems
 Performance Measurement – assess magnitude of
variations to baseline; determine if corrective action is
needed
 Additional Planning
 Project Management Software
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Schedule Control Outputs:
 Schedule Updates – any modifications, stakeholder
notification
 Revisions change scheduled start and finish dates –
generally in response to scope changes. “Re-baselining”
may be needed in drastic situations
 Corrective Action – re-align performance with project
plan
 Lessons Learned
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Key knowledge points not in PMBOK
 Need to know manual calculations of network
diagrams
 Created after project charter and WBS (task estimates
and dependencies are determined)
 Mandatory dependencies (Hard Logic) – inherent in
nature of work
 Discretionary dependencies (Soft Logic) – based on
experience, desire or results
 External dependencies – based on needs and desires of
organizations outside the project
Chapter 6 – Project Time
Management

 Methods to draw network diagrams
 Activity on Node (AON) or Precedence
Diagramming Method (PDM)
 Boxes represent tasks
 Arrows show task dependencies
 4 types of task relationships
 Finish to Start (task must finish before next can start)
 Finish to Finish (task must finish before next can finish)
 Start to Start (task must start before next can start)
 Start to Finish (task must start before the next can finish)
 No dummy tasks used
Chapter 6 – Project Time
Management
 Methods to draw network diagrams
 Activity on Arrow (AOA or Arrow Diagramming Method
(ADM)
 Arrows used to represent tasks
 Only Finish to Start relationships are used
 May use dummy tasks (show dependencies)
 PERT and CPM estimating techniques can only be drawn using
AOA
 CPM (Critical Path Method) – estimating based on one time
estimate per activity (the most likely time estimate)
 Emphasizes controlling cost and allowing schedule flexibility
 Can have dummy tasks
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Methods to draw network diagrams
 Activity on Arrow (AOA or Arrow Diagramming
Method (ADM) continued:
 PERT (Program Evaluation and Review technique)
 3 time estimates per activity: Optimistic (O), Most Likely
(M), Pessimistic (P)
 Emphasizes meeting schedule, flexibility with cost
 Can have dummy tasks
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Methods to draw network diagrams
 PERT (Program Evaluation and Review
technique)
 Estimating based on 3 formulas:
 PERT Duration: (P + 4M + O)/6
 Standard Task Deviation: (P – O)/6
 Task Variance:
 Total project estimate:
 Add up all Optimistic, Most Likely and Pessimistic values of the
critical path tasks and apply P + 4M + O/6
 Total project variance (+/-):
 Add up the individual task variances and take the square root of
the value. Use the value as a +/- figure to compute the Optimistic
and Pessimistic values. The total project estimate will serve as the
basis.
Chapter 6 – Project Time
Management
[P – O]2
6
© www.asia-masters.com

 Monte Carlo Simulation:
 Uses a computer with PERT values (P, M, O) and
a network diagram but does not use the PERT
formula
 Indicates
 Probability of completing project on a specific day
 Probability of completing project for any specific amount
of cost
 Probability of any task actually being on critical path
 Overall project risk
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Estimating techniques in general:
 Should be performed by entire project team
 Project manager needs to provide information to allow
team to create estimates; sanity check; formulate reserve
 Estimates are:
 Guesses, Historical Records, Actual Costs, Benchmarks,
CPM, PERT
 Critical paths determines the earliest completion date and
identifies tasks that need monitoring
 Can be obtained by CPM, PERT and Monte Carlo
estimating techniques
Chapter 6 – Project Time
Management

 Key Definitions:
 Slack (Float): the amount of time a task can be
delayed without delaying the entire project. Tasks
on critical path have no slack.
 Slack is calculated by the difference between Early Start
and Late Start of a task
 Free Slack (Float): the amount of time a task can be delayed
without delaying the early start date of its successor
 Total Slack (Float): the amount of time a task can be
delayed without delaying the project completion date
 Lag: inserted waiting time between tasks
Chapter 6 – Project Time
Management
© www.asia-masters.com
 General Comments:
 Projects can have more than 1 critical path (increases
risk) and can involve dummy tasks
 Negative float indicates that you are behind
 Resource Leveling involves possibly letting schedule
and cost slip
 Heuristics – just means “rule of thumb” e.g. 80/20
rule
 Schedules are calendar based – makes this different
than a time estimate
 Bar Chart a.k.a. Gantt chart (track progress, report to entire team
including stakeholders, control tool)
 Network Diagram (to show task inter-dependencies, show project
organization, basis for project control)
 Milestone chart (report to Senior management, shows major events)
Chapter 6 – Project Time
Management

 General Comments:
 To shorten project schedule examine the critical path
 Crashing – add more resources to the critical path tasks
 Usually results in increased cost
 Fast Tracking – performing tasks in parallel
 Can result in re-work and increased risk
 Best to select method that has least impact on the
project (is the importance on cost, risk or schedule?)
Chapter 6 – Project Time
Management

 General Comments:
 Bar (Gantt) Charts
 Weak Planning Tool, effective progress and reporting tool
 Does not show interdependencies of tasks
 Does not help organize the project more effectively
 Network Diagrams (PERT, CPM, PDM)
 Shows task interdependencies
 Aids in effectively planning and organizing work
 Provides a basis for project control
 Milestone Charts
 Only shows major events
 Good for reporting to management and customer
 Flow Charts
 Depicts workflow and not commonly used for project
management
Chapter 6 – Project Time
Management

 General Comments:
 Free Slack (Float) – amount of time a task can be delayed
without delaying the early start date of its successor
 Total Slack (Float) – amount of time a task can be delayed
without delaying the project completion date
 Lag – inserted waiting time between tasks
 Resource Leveling – level peaks of resource usage;
stable number of resources – allows schedule and
cost slip in favor of leveling resources
 Heuristic – rule of thumb (80/20 rule)
Chapter 6 – Project Time
Management
© www.asia-masters.com

 Project Cost Management
 Ensure that the project is completed within
budget
 Concerned with cost of resources needed to
complete activities; consider effect of project
decisions on cost of using product “life-cycle
costing”
 Most prospective financial impact of using the
product is outside the project scope
 Consider information needs of stakeholders,
controllable and uncontrollable costs (budget
separately for reward and recognition systems)
Chapter 7 – Project Cost
Management
 Project Cost Management
 Estimating should be based on WBS to improve
accuracy
 Estimating should be done by the person performing the
work
 Having historical records is key to improving estimates
 Costs (schedule, scope, resources) should be managed to
estimates
 A cost (schedule, scope, baseline) should be kept and
not changed
 Plans should be revised as necessary during completion
of work
 Corrective action should be taken when cost problems
(schedule, scope and resources) occur.
Chapter 7 – Project Cost
Management

 Resource Planning:
 Determining what physical resources and
quantities are needed to perform work
 Inputs to Resource Planning:
 Work Breakdown Structure
 Historical Information
 Scope Statement – justification & objectives
 Resource Pool Description – what resources are
potentially available for resource planning
 Organizational Policies – staffing, procurement
Chapter 7 – Project Cost
Management

 Inputs to Resource Planning:
 Work Breakdown Structure
 Network Diagram
 Schedule
 Risks
 Historical Information
 Scope Statement – justification & objectives
 Resource Pool Description – what resources are
potentially available for resource planning
 Organizational Policies – staffing, procurement
Chapter 7 – Project Cost
Management

 Resource Planning Tools & Techniques
 Expert Judgment
 Alternatives Identification
 Resource Planning Outputs:
 Resource Requirements – what type & how many
resources are needed for each activity in the Work
Breakdown Structure
Chapter 7 – Project Cost
Management

 Cost Estimating:
 Develop approximate costs of resources
 Distinguish estimating from pricing
 Estimating – likely amount
 Pricing – business decision
 Identify alternatives and consider realigning costs in
phases to their expected savings
Chapter 7 – Project Cost
Management
© www.asia-masters.com

 Cost Estimating Inputs:
 Work Breakdown Structure
 Resource Requirements
 Resource Rates (if known)
 Activity Duration Estimates
 Historical Information – (project files,
commercial cost databases, team knowledge
 Chart Of Accounts – coding structure for
accounting; general ledger reporting
Chapter 7 – Project Cost
Management
 Cost Estimating Tools & Techniques
 Analogous Estimating – “top down”; using actual costs
from previous project as basis for estimate
 Reliable when previous projects are similar and individuals have
expertise – form of expert judgment
 Parametric Modeling – uses project characteristics in
mathematical models to predict costs (e.g.building houses)
 Reliable when historical information is accurate, parameters are
quantifiable, and model is scalable
 2 types: Regression analysis, Learning Curve
 Bottom Up Estimating – rolling up individual activities into
project total – smaller work activities have more accuracy
 Computerized tools – spreadsheets, software
Chapter 7 – Project Cost
Management
© www.asia-masters.com

 Cost Estimating Tools & Techniques
 Pro’s and Con’s
 Analogous Estimating
 Quick - Less Accurate
 Tasks don’t need to be identified – Estimates prepared
with little detail and understanding of project
 Less costly – Requires considerable experience to do
well
 Gives PM idea of management expectations –
Infighting at high levels of organization
 Overall project costs are capped – Difficult for projects
with uncertainty
Chapter 7 – Project Cost
Management
© www.asia-masters.com

 Cost Estimating Tools & Techniques
 Pro’s and Con’s
 Bottom Up Estimating
 More Accurate – Takes time and expense
 Gains buy-in from the team – Tendency for team to pad
estimates
 Based on detailed analysis of project – Requires that
project be defined and understood
 Provides a basis for monitoring and control – Team
infighting to get biggest piece of pie
Chapter 7 – Project Cost
Management
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 Outputs from Cost Estimating
 Cost estimates – quantitative assessments of likely costs of
resources required to complete tasks
 For all resources of the project (labor, materials, supplies, inflation
allowance, reserve)
 Expressed in units of currency
 Supporting Detail
 Description of scope (reference to the WBS)
 Documentation how estimate was developed
 Indication of range of possible results
 Assumptions
 Cost Management Plan – how cost variances will be managed
 Cost Risk: associated to seller for Fixed Price; associated to buyer
for Time and Materials budget
Chapter 7 – Project Cost
Management
© www.asia-masters.com

 Cost Budgeting
 Involves allocation of total estimate to individual
work to establish a cost baseline to measure
performance
 Cost Budgeting Inputs
 Cost Estimate
 Work Breakdown Structure
 Project Schedule – includes planned start and
finish dates for items costs are allocated to
 Needed to assign costs during the time period when the
actual cost will be incurred
Chapter 7 – Project Cost
Management

 Cost Budgeting Tools & Techniques
 Same as Cost Estimating Tools and Techniques
 Outputs from Cost Budgeting
 Cost Baseline – time phased budget to measure
and monitor cost performance
 Developed by summing estimated costs by period (S
curve of values vs. time)
 Larger projects have multiple baselines to measure
different aspects of cost performance
Chapter 7 – Project Cost
Management
© www.asia-masters.com

 Cost Control
 Concerned with influencing factors that create
changes to the cost baseline that are beneficial
 Determining that the cost baseline has changed
 Managing actual changes as they occur
 Monitor cost performance to detect variances
 Record all appropriate changes accurately in the cost baseline
 Preventing incorrect, unauthorized changes being included in
the cost baseline
 Informing stakeholders of authorized changes
 Determine the “why’s” of positive and negative variances
 Integrated will all other control processes (scope, change, schedule,
quality)
Chapter 7 – Project Cost
Management

 Inputs to Cost Control
 Cost Baseline
 Performance Reports – meet, exceed budget
 50/50 Rule – task is considered 50% complete when it begins and gets credit for
remainder 50% only when completed
 20/80 Rule - task is considered 20% complete when it begins and gets credit for
remainder 80% only when completed
 0/100 Rule – task only credited when fully completed
 Change Requests
 Cost Management Plan
 Tools & Techniques of Cost Control
 Cost Change Control System – defines the procedures by which the cost
baseline may be changed
 Performance Measurement – assess magnitude of cost variations (Earned
Value Analysis) and what is causing the variance
 Additional Planning – examine alternatives
 Computerized Tools – forecast planned costs, track actual costs, forecast
effect of cost changes
Chapter 7 – Project Cost
Management

 Cost Control Outputs
 Revised Cost Estimate
 Modifications to cost information; require stakeholder approval and
adjustments to other project areas
 Budget Updates – changes to approved cost baseline; revised in
response to scope changes
 Corrective Action
 Estimate at completion – (EAC) – forecast of total
expenditures
 Actual to date plus remaining budget modified by a factor (cost
performance index)
 Current variances are seen to apply to future variances
 Actual to date plus new estimate for remaining work
 Original estimates are flawed, or no longer relevant
 Actual to date plus remaining budget
 Current variances are typical and similar variances will not occur in the
future
 Lessons Learned
Chapter 7 – Project Cost
Management

 Earned Value Analysis
 Integrates cost, schedule and scope
 Better that comparing projected vs. actual because
time and cost are analyzed separately
 Terms:
 BCWS – Budgeted Cost of Work Scheduled (how much
work should be done)
 BCWP – Budgeted Cost of Work Performed a.k.a.
Earned Value (how much work is budgeted, how much
did we budget)
 ACWP – Actual Cost of Work Performed (how much
did the completed work cost)
Chapter 7 – Project Cost
Management

 Earned Value Analysis
 Terms:
 BAC – Budget at Completion (how much did you
budget for the total job)
 EAC – Estimate at Completion (what do we expect the
total project to cost)
 ETC – Estimate to Completion (how much more do we
expect to spend to finish the job)
 VAC – Variance at Completion (how much over/under
budget do we expect to be)
Chapter 7 – Project Cost
Management

 Earned Value Analysis
 Formulas
 Variance (Plan – Actual)
 Cost Variance (CV): BCWP – ACWP; negative is over
budget
 Schedule Variance (SV): BCWP – BCWS; negative is
behind schedule
 Cost Performance Index (CPI): BCWP
ACWP
 I am only getting x¢ out of every $
Chapter 7 – Project Cost
Management
BCWP
ACWP
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
 Earned Value Analysis
 Formulas
 Schedule Performance Index (SPI): BCWP
BCWS
 I am only progressing x % of the planned rate
 Estimate at Completion (EAC): BAC
CPI
 As of now we expect the total project to cost x$
 Estimate to Complete (ETC): EAC – ACWP; how much
will it cost from now to completion
 Variance at Completion: BAC – EAC; when the project
is over how much more or less did we spend (most
common way of calculating EVA
Chapter 7 – Project Cost
Management
BCWP
BCWS
BAC
CPI

 Earned Value Analysis
 BCWP comes first in most formulas
 If it is a variance, BCWP comes first
 If it is an index, BCWP is divided by
 If the formula relates to cost, use AWCP
 If the formula related to schedule, use BWCP
 Negative is bad; positive results are good
 ETC refers to “this point on”; EAC refers to when
job is completed
Chapter 7 – Project Cost
Management
© www.asia-masters.com

 Accuracy of Estimates
 Order of Magnitude Estimate: -25% - 75%; usually
made during Initiation Phase
 Budget Estimate: -10% - 25%; usually made during the
Planning phase
 Definitive Estimate: -5% - 10%; usually made during
the Planning phase
Chapter 7 – Project Cost
Management
© www.asia-masters.com

 Accounting Standards
 Not usually part of the exam
 Present Value (value today of future cash flows):
 PV = FV
(1 + r) N
FV = Future Value
R = Interest Rate
N = Number of time periods
Chapter 7 – Project Cost
Management
© www.asia-masters.com

 Accounting Standards
 Net Present Value: total benefits (income or revenue) less
the costs. NPV is the sum of each present value of each
income/revenue item
 Internal Rate of Return (IRR): company may select project
based on highest IRR
 Payback Period: number of time periods it takes to recover
the investment in the project before generating revenues
 Benefit Cost Ratio (BCR): compares costs to the benefits of
different projects
 Greater than 1 means benefits are greater than costs
 Less than 1 means costs are greater than benefits
 Opportunity Cost: opportunity given up by selecting one
project over another
Chapter 7 – Project Cost
Management

 Accounting Standards
 Sunk Costs: expended costs. Sunk costs should not be
considered when determining to continue with a troubled
project
 Law of Diminishing Returns: the more that is put in the
less of an outcome is received
 Working Capital: current assets – current liabilities
 Variable Cost: costs that change with the amount of
production or the amount of work (materials, wages)
 Fixed Cost: non-recurring costs that do not change
 Direct Cost: directly attributable to project work (travel,
wages, materials)
 Indirect Cost: overhead items or costs for the benefit of
more than one project (taxes, fringe benefits)
Chapter 7 – Project Cost
Management

 Accounting Standards
 Depreciation: assets lose value over time
 Straight Line depreciation: same amount is taken each
year
 Accelerated Depreciation: 2 forms
 Double Declining Balance
 Sum of the Years Digits
 Life Cycle Costing: includes operations and
maintenance phases
 Value Analysis: find a less costly way to do same work
 Make or Buy decisions – at Development (Planning)
phase, not conceptual phase
Chapter 7 – Project Cost
Management
 Accounting Standards
 Project Objectives – are not necessarily needed to fund project
 Project Definition – focus on end product initially; costs and benefits
will be evaluated later
 25% of project lifecycle expended at end of planning
 No guarantees; only most likely results
 Line of Balance charts are used for manufacturing
 Negative Float – the late start date is earlier than the early start
date
 Value Engineering/analysis – does not trade performance for
cost
 Prospectus – profitability and technical feasibility used to solicit
funding
Chapter 7 – Project Cost
Management

 Accounting Standards
 Definitive Estimate –most precise/accurate estimate for
determining project costs
 Management Reserve – over time PM wants no change to
reserve; customers wants $ back
 Cost and Schedule Data – predicts future performance
 ROI, Nest Present Value and Discounted Cash Flow – all
can be used to measure total income vs. total $ expended
 Undistributed budget – budget that contains approved
scope changes but are not planned yet
 Depreciation is not a measurement of profitability
 Pay Back Period - # of periods required to recover the
initial investment
Chapter 7 – Project Cost
Management

 Project Quality Management
 Processes required to ensure that the project will
satisfy the needs for which it was designed
 Includes all activities of the overall management
function that determine the quality policy,
objectives, and responsibilities. These are
implemented by quality planning, quality control,
quality assurance, and quality improvement.
Chapter 8 – Project Quality
Management

 3 major processes:
 Quality Planning – identifying quality standards that
are relevant to the project (Plan); Project Manager, Project
Owner
 Quality Assurance – evaluating overall project
performance to provide confidence that project will satisfy
relevant quality standards (Implement or Execution);
Project Team
 Quality Control – monitoring specific results to comply
with quality standards and eliminating unsatisfactory
performance causes (Check or Control); Project Manager,
Project Team
 Compatible with ISO 9000 and 10000 series
 Proprietary and non-proprietary approaches (total quality
management
 Must address the management of the project and the product
Chapter 8 – Project Quality
Management
 Quality – the totality of characteristics of an entity that
bear on its ability to satisfy stated or implied needs
 Critical aspect is to turn implied needs into stated needs
through project scope management
 Do not confuse with grade – category or rank given to entities
having the same functional use but different requirements for
quality
 Customer satisfaction – conformance to specifications (must
produce what is stated) and fitness for use (must satisfy real
needs)
 Prevention – avoid mistakes vs. cost of correction
 Management responsibility – requires participation of team;
responsibility of management to provide resources
 Processes within phases – plan-do-check-act cycle
 Recognize that the investment in product quality improvements may be
borne by the performing organization since the project may not last long
enough to reap reward
Chapter 8 – Project Quality
Management
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
 Quality Planning
 Identify quality standards are relevant and how to satisfy
 Inputs to Quality Planning
 Quality Policy – the overall intentions and direction of an
organization with regard to quality as expressed by
management
 Scope Statement
 Product Description
 Standards and Regulations
 Other Process Outputs – processes from other knowledge
areas (procurement planning)
Chapter 8 – Project Quality
Management
© www.asia-masters.com

 Tools &Techniques for Quality Planning
 Benefit/Cost Analysis – consider trade-offs, benefit is less
rework; cost is expense of project management activities
 Benchmarking – comparing actual or planned practices to
those of other projects
 Flowcharting
 Cause and effect diagramming (Ishikawa or fishbone
diagrams) illustrate how causes relate to potential problems or
effects
 System or Process flowcharts – show how various elements of
the system interrelate
 Helps anticipation of what and where quality problems may occur
 Design of Experiments – analytical technique which
defines what variables have most influence of the overall
outcome
 Cost and schedule tradeoffs
Chapter 8 – Project Quality
Management

 Outputs from Quality Planning
 Quality Management Plan – describes how team will
implement its quality policy; describes the project quality
system – organizational structures, responsibilities,
procedures, processes and resources needed to implement
quality management
 Operational Definitions – defines how an item is measured
by the quality control process. Also known as Metrics.
 Checklists – structured tool used to verify that a set of
required steps has been performed
 Inputs to other processes – may identify a need for further
activity in another area
 Quality Assurance
 All planned and systematic activities implemented within the
quality system to provide confidence that the project will satisfy
quality standards
Chapter 8 – Project Quality
Management

 Inputs to Quality Assurance
 Quality Management Plan
 Results of quality control measurements (testing)
 Operational definitions
 Tools & Techniques for Quality Assurance
 Quality planning tools & techniques
 Quality Audits – structured review of quality management
activities to identify lessons learned
 Outputs from Quality Assurance
 Quality improvements – taking action to increase the effectiveness
and efficiency of the project to provide added benefits to the
stakeholders
 Most likely will involve change control
Chapter 8 – Project Quality
Management

 Quality Control – monitoring specific results to
determine if they comply with quality standards and
identifying ways to eliminate causes of
unsatisfactory results
 Includes project (deliverables) and management (cost and
schedule performance) results
 Awareness of statistical quality control
 Prevention (keep errors out of process) and inspection (keep
errors from customers)
 Attribute sampling (result conforms) and variable sampling
 Special Causes (unusual events) and random causes
 Tolerances (acceptable range) and control limits (result falls
within range)
Chapter 8 – Project Quality
Management
© www.asia-masters.com
 Inputs to Quality Control
 Work results – include process and product results
 Quality Management Plan
 Operational Definitions
 Checklists
 Tools & Techniques for Quality Control
 Inspection – activities such as testing to determine if results
comply with requirements
 Control Charts – plot results over time
 Pareto diagrams – frequency of occurrence that identifies type or
category of result (80/20 rule) – guides corrective action
 Statistical sampling – select population of interest for inspection
 Flowcharting
 Trend Analysis – forecast future outcomes based on historical
results
 Technical performance (# of errors identified; # of errors that remain)
 Cost and Schedule performance (activities per period with significant variances)
Chapter 8 – Project Quality
Management

 Outputs from Quality Control
 Quality Improvement
 Acceptance Decisions (accept/reject)
 Rework – action to bring defective item into compliance
 Frequent cause of project overruns
 Completed checklists
 Process Adjustments – immediate corrective/preventive
actions
 Most likely involves change control
Chapter 8 – Project Quality
Management
© www.asia-masters.com
 Tips from the Review Guide
 Philosophy: definition of quality, avoidance of “gold plating” –
giving customer extras, prevention over inspection
 “Conformance to requirements, specifications and fitness of
use”
 Quality Management – processes required to ensure that the
project will satisfy the needs for which it was undertaken
 Continuous Improvement - small improvements to reduce
costs and ensure consistency
 Marginal Analysis – optimal quality is reached at the point
when revenue from improvement equals the costs to secure it
 Just in Time - decrease amount of inventory/decrease
investment
Chapter 8 – Project Quality
Management
© www.asia-masters.com

 Tips from the Review Guide
 ISO 9000 or 10000 – standards to ensure that
corporations follow their own quality procedures
 Total Quality Management – continuous
improvement in business practices
 Normal Distribution – most common probability –
used to measure variations
 Standard deviation (sigma) – measure how far away
from the mean (dotted vertical line)
 3 or 6 sigma – represents level of quality
 +/- 1 sigma equal to 68.26%
 +/- 2 sigma equal to 95.46%
 +/- 3 sigma equal to 99.73%
 +/- 6 sigma equal to 99.99%
Chapter 8 – Project Quality
Management
 Tips from the Review Guide
 Responsibility to quality – entire organization
 Ultimate – employee
 Overall or Primary – Project Manager
 Design and Test Specifications – engineer
 Prevention over inspection – quality must be planned in
not inspected in
Chapter 8 – Project Quality
Management

 Tips from the Review Guide
 Cost of conformance vs. non-conformance
 Quality Training vs. rework
 Studies vs. Scrap
 Surveys vs. Inventory Costs and warranty costs
 Quality Planning (Plan) – determine what will
be quality on project and how quality will be
measured – done during Planning Phases
 Identifying which standards are relevant to project – how to
satisfy them
 Benchmarking – look at past projects to determine ideas for
improvement
 Cost Benefit Analysis
 Flowcharts (fishbone)
Chapter 8 – Project Quality
Management

 Tips from the Review Guide
 Quality Assurance (Implement) – determine if your
measurement of quality is appropriate – done
during Execution phases
 Process of evaluating overall performance on a regular
basis
 Quality Audits – structured review of quality activities
that identify lessons learned
Chapter 8 – Project Quality
Management
© www.asia-masters.com

 Tips from the Review Guide
 Quality Control (Check) – perform the
measurement and compare to the quality plan –
done during Control phases
 Process of monitoring specific project results to
determine if they comply with relevant quality
standards and identify ways of eliminating
unsatisfactory performance
 Performance of the measurement or process, using
quality control tools – checking work
Chapter 8 – Project Quality
Management
© www.asia-masters.com

 Tips from the Review Guide
 Quality Control Tools
 Pareto Diagrams – 80/20 rule – the chart presents the
information being examined in its order of priority and
helps focus attention on the most critical issues
 Fishbone diagram (Cause and Effect)
 A creative way to look at the causes or potential causes of a
problem
 Helps stimulate thinking, organizes thoughts and generates
discussion
 Can be used to explore a desired future outcome and the factors
to which it relates
Chapter 8 – Project Quality
Management
© www.asia-masters.com

 Tips from the Review Guide
 Quality Control Tools
 Checklists – list of items to inspect
 Control Charts – graphic displays of the results over time –
used to determine if a process is in control
 Upper and Lower Control Limits – two dashed lines –
show the acceptable range of a variation – range
determined by company’s quality standard (sigma)
 Mean – line in the middle – shows middle of the range
of acceptable results
 Specification Limits – 2 solid lines outside the upper
and lower control limits – represent the customer's
expectations/requirements of quality
Chapter 8 – Project Quality
Management
© www.asia-masters.com

 Tips from the Review Guide
 Quality Control Tools
 Out of Control – process is out of control when:
 A data point falls outside of the upper or lower control limit
 Non-random data points are within the upper control and
lower control limits
 Rule of 7 – non-random points outside the mean - process
should be investigated
 Assignable Cause – data point the requires investigation to
determine the cause of the variation
Chapter 8 – Project Quality
Management
 PMI and Deming
 Cost of conformance – 85% of costs of quality are
responsibility of Management
 Quality Training – Rework
 Studies – Scrap
 Surveys – Inventory and Warranty costs
 Crosby – absolutes of quality
 Performance standard is zero defects; measurement
system is cost of non-conformance
 Continuous Improvement
 Japanese (Kaizen)
Chapter 8 – Project Quality
Management
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
 Marginal Analysis – optimal quality is reached
when incremental revenue from improvement equals
incremental cost to secure
 Variable – characteristic to be measured
 Attribute – measurement (objective or subjective)
 Increase quality = increased productivity,
increased cost effectiveness, decreased cost risk
Chapter 8 – Project Quality
Management
© www.asia-masters.com
 Review Guide Tips
 Primary responsibility for quality management is the
PM
 Results of increase in quality
 Increased productivity
 Increased cost effectiveness
 Decreased cost risk
 Quality attributes – can be subjective, objective and are
specific characteristics for which a project is designed
and tested
 Quality assurance – example is team training
 Cost of Conformance = team training
Chapter 8 – Project Quality
Management
© www.asia-masters.com

 Review Guide Tips
 Marginal Analysis: optimal quality is reached
when incremental revenue from improvement
equals the incremental cost to secure
 Standard Deviation: how far away from mean
 Variable: characteristic you want to measure
 Attribute: measurement (subjective or objective)
 Ultimate Responsibility – Employee
 Overall Responsibility – PM
 Design/Test Specifications - Engineer
Chapter 8 – Project Quality
Management

 Review Guide Tips
 If quality sample size increases, the quality
control band decreases
 Product Cost plus Operations and Maintenance
costs increase perceived value when balanced
 Cost of Conformance = training
 Crosby Absolutes of Quality – performance of
standard is zero defects and the measurement
system is the cost of non-conformance
 Deming & Japanese are associated with Quality
Improvement programs
 Quality Control – performed by operating
Chapter 8 – Project Quality
Management

 Review Guide Tips
 Quality objectives are approved in conceptual
stage by project owner
 QA – auditing function that provides feedback to
team and client about quality of output being
produced
 If sample size is a constant and acceptance
numbers increase, the producers risk decreases
and consumer risk increases
 85% of costs of quality are direct responsibility of
management
Chapter 8 – Project Quality
Management

 Project Human Resource Management
 Processes required to make the most efficient use
of people
 3 major processes:
 Organizational Planning
 Staff Acquisitions
 Team Development
 Keep in mind of transient nature of projects
 Apply techniques that apply to current project
needs
 Ensure HR compliance with project management
activities
Chapter 9 – Human Resource
Management
© www.asia-masters.com

 Project Human Resource Management
 1,9 manager = good relationship with team
 Project Organization
 Conflict between PM and Functional Managers
 Dual allegiance of team members
 Complex prioritization of resources
 Loss of developed procedures on project dissolution
 Compromise = both sides will lose
 Delegation
 Defer the decision
 Interpreted as passive
 Emphasize task vs. personnel
 Can be frequently used
Chapter 9 – Human Resource
Management

 Project Human Resource Management
 If there is a team of experts, PM decisions will
promote high satisfaction
 Functional/Project Managers likely to exercise:
 Power
 Authority
 Influence
 Traditional organization forms have no single
point of contact for client/sponsor
Chapter 9 – Human Resource
Management
© www.asia-masters.com

 Organizational Planning
 Identifying, documenting and assigning project roles,
responsibilities, and reporting relationships
 Individual and group assignments
 Internal and external employees
 Linked with communication planning
Chapter 9 – Human Resource
Management
© www.asia-masters.com

 Inputs to Organizational Planning
 Project Interfaces
 Organizational interfaces – formal and informal
reporting relationships among organizational units
 Technical interfaces - formal and informal reporting
relationships among technical disciplines
 Engineers, manufacturers, electrical, etc.
 Interpersonal interfaces – formal and informal
reporting relationships among individuals
 Staffing Requirements – define skill sets from
individual/group in particular time frames
Chapter 9 – Human Resource
Management

 Inputs to Organizational Planning
 Constraints – factors that limit project team’s options
 Organizational structure (strong vs. weak matrix)
 Collective bargaining agreements – contractual
arrangements
 Preferences of project management team
 Expected staff assignments
Chapter 9 – Human Resource
Management
 Tools & Techniques for Organizational Planning
 Templates – reuse a similar project’s role and
responsibility definitions
 Human Resource Practices – corporate policies,
guidelines, and practices
 Organizational Theory – how organizations are
structured
 Stakeholder Analysis – needs of stakeholders are
ensured
Chapter 9 – Human Resource
Management
© www.asia-masters.com

 Outputs from Organizational Planning
 Role and Responsibility Assignments – can vary over
time, closely linked to scope definition. Utilizes a
Responsibility Assignment Matrix (RAM) to define
responsibility for each item in the Work Breakdown
Structure/task list
 Staffing Management Plan – when and how personnel are
included and removed from the project team
 Resource leveling, reduce transition periods, eliminate “dead
time” between assignments, sensitivity to morale
 Organizational Chart – display reporting relationships
 Supporting Detail
 Organizational impact
 Job descriptions
 Training needs
Chapter 9 – Human Resource
Management
© www.asia-masters.com

 Staff Acquisition
 Ensure resources are available for project work
 Inputs to Staff Acquisition
 Staffing Management Plan
 Staffing Pool Description
 Previous experience
 Personal interests
 Personal characteristics
 Availability
 Recruitment Practices
Chapter 9 – Human Resource
Management

 Tools & Techniques for Staff Acquisition
 Negotiations with functional managers and other
teams
 Staff utilization and corporate politics
 Pre-assignment – result of a competitive
proposal, or an internal initiative
 Procurement – outside services are needed
(lacking internal skills or availability can not be
met)
 Outputs from Staff Acquisition
 Project staff assigned
 Project Team Directory – contact list
Chapter 9 – Human Resource
Management
 Team Development – enhancing stakeholders to
contribute along with maintaining the project team’s
functionality
 Personal development is the foundation
 Team members often balance responsibilities to a functional
manager and project manager
 Critical to success of project
 Inputs to Team Development
 Project Staff
 Project Plan
 Staffing Management Plan
 Performance Reports
 External Feedback
 Periodic measurements of performance
Chapter 9 – Human Resource
Management
© www.asia-masters.com

 Tools & Techniques for Team Development
 Team-building activities
 General Management Skills
 Reward and recognition systems
 Promote desired behavior
 Must be achievable; apply to the project
 Cultural differences recognition
 Co-location – place members in physical location
 Training – enhance skills, knowledge, and capabilities of
project team
 Must be factored in cost analysis of project
Chapter 9 – Human Resource
Management

 Outputs from Team Development
 Performance Improvements
 Individual skills
 Team Behavior
 Identify more efficient methods of work
 Input for performance appraisals
Chapter 9 – Human Resource
Management
© www.asia-masters.com

 Review Guide Tips
 Roles and responsibilities
 Project Manger – plan, estimate and schedule of project
 Team – help prepare the WBS, Network Diagrams, and
estimate time for tasks, complete tasks
 Senior Management – approve Overall project plan, budget
and schedule and to approve any changes that are made to
those figures
 The person experiencing the problem must try to solve it
themselves as long as means are in their control
 Powers:
 Formal (legitimate)
 Reward
 Penalty (coercive)
 Expert (earned)
 Referent – authority of a higher position
Chapter 9 – Human Resource
Management

 Review Guide Tips
 Best are Expert and Reward; Penalty is the worst
 Formal, Reward and Penalty derived from PM’s position
within the company
 Conflict
 Inevitable consequence of organizational interactions
 Can be beneficial
 Resolved by identifying the causes and problem solving by
people that are involved & their immediate manager
 Nature of project
 Limited power of the project manager
 Necessity for obtaining resources from functional managers
Chapter 9 – Human Resource
Management

 Review Guide Tips
 Avoid conflict
 Informing the team
 Clearly assigning tasks without ambiguity
 Challenging and interesting work assignments
 Conflict Sources (in order of frequency)
 Schedules
 Project Priorities
 Resources
 Technical opinions
 Administrative Procedures
 Cost
 Personality
Chapter 9 – Human Resource
Management
© www.asia-masters.com

 Review Guide Tips
 Motivational Theories
 Maslow’s Hierarchy of Needs – people work to get a
chance to contribute and use their skills
 ‘self-actualization’
 McGregor’s Theory of X and Y
 X – people need to be watched every minute
 Y – people willing to work without supervision
 Herzberg’s Theory – poor hygiene factors destroy
motivation but improving them will not improve
motivation
 Motivating Agents
 Responsibility
 Self-actualization
Chapter 9 – Human Resource
Management

 Review Guide Tips
 Responsibility Charts
 Matrix – cross references team members with tasks (does
not show time – when job is done)
 Histogram – months vs. number of resources
 Gantt Chart – shows when staff allocated to tasks
 Leadership Skills
 Directive
 Facilitating
 Coaching
 Supportive
 Team Building Skills
Chapter 9 – Human Resource
Management

 Review Guide Tips
 Projectized Organization
 Conflict between PM and Functional Managers
 Dual Allegiance of team members
 Complex prioritization of resources
 Loss of developed procedures on project dissolution
 Compromise – both sides will lose
 Delegation
 Defer the decision
 Interpreted as passive
 Emphasize task vs. personnel
 Can be frequently utilized
Chapter 9 – Human Resource
Management

 Project Communications Management
 Processes to ensure timely and proper generation,
collection, dissemination and disposition of
project information
 General communications management
 Communications Planning – determining informational
needs, who needs what and when; 90% of PM’s time is
spent communicating
 Information Distribution – making information
available
 Performance Reporting – collecting and disseminating
project information
 Administrative Closure – formalize project/phase
completion
Chapter 10 – Project
Communications Management

 Communications Planning
 Determining information requirements of stakeholders
 Tightly linked with organizational planning
 Inputs to Communications Planning
 Communication requirements – sum of the information
requirements of the stakeholders
 Define type and format of information with analysis of value of
information
 Project organization and stakeholder responsibility
relationships
 Disciplines, departments and specialties involved in project
 Logistics of number of individuals at location
 External communication needs (media)
Chapter 10 – Project
Communications Management

 Communication Technology – used to transfer
information
 Immediacy of need for information
 Availability of technology
 Expected project staffing – compatible with personnel
experience
 Length of project – will technology change during
duration?
 Constraints – factors that limit project team’s
options
 Assumptions
Chapter 10 – Project
Communications Management
© www.asia-masters.com

 Tools & Techniques for Communication Planning
 Stakeholder analysis – informational needs should be
analyzed to develop methodology suited for the project;
eliminate unnecessary information or technologies
 Outputs from Communications Planning
 Communication Management Plan
 Collection and filing structure to detail the gathering and
storage of information; updating and dissemination
 Distribution structure – who gets info in certain format;
compatible with project organization chart
 Description of information included – format, level of detail,
conventions
 Production schedules of each type of communication
 Methods for accessing information
 Method for updating and refining communications plan
Chapter 10 – Project
Communications Management

 Information Distribution – making information
available in a timely manner by implementing the
communications plan; responding to requests for
information
 Inputs to Information Distribution
 Work Results
 Communication Management Plan
 Project Plan
Chapter 10 – Project
Communications Management
© www.asia-masters.com

 Tools & Techniques for Information
Distribution
 Communication Skills – used to exchange
information. Sender is responsible for clarity; receiver is
responsible for receipt and understanding
 Information retrieval systems – filing systems,
software
 Information distribution systems – meetings,
correspondence, networked databases, video/audio
conferencing
 Outputs from Information Distribution
 Project Records – maintained in an organized fashion
Chapter 10 – Project
Communications Management
 Performance Reporting
 Collecting and disseminating performance indicators to provide
stakeholders information how resources are achieving project
objectives
 Status reporting
 Progress reporting
 Forecasting
 Project scope, schedule, cost and quality, risk and procurement
 Inputs to Performance Reporting
 Project Plan
 Work Results – deliverables completed, % completed, costs
incurred
 Other Project records
Chapter 10 – Project
Communications Management
© www.asia-masters.com

 Tools & Techniques for Performance Reporting
 Performance reviews – meetings to assess status
 Variance Analysis – comparing actual results to planned or
expected results (baseline); cost and schedule most frequent
 Trend Analysis – examining results over time to determine
performance
 Earned Value Analysis – integrates scope, cost and
schedule measures – calculate 3 keys:
 Budgeted Cost of Work (BCWS) – portion of approved cost estimate
planned to be spent on activity during a given period
 Actual Cost of Work Performed (ACWP) – total of direct and indirect
cost incurred in accomplishing work on activity in a given period
 Earned Value (Budgeted Cost of Work Performed – BCWP) –
percentage of total budget equal to percentage of work actually
completed
 Cost Variance (CV) = BCWP – ACWP
 Schedule Variance (SV) = BCWP – BCWS
 Cost Performance Index (CPI) = BCWP/ACWP

Chapter 10 – Project
Communications Management
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
Malaysian Project Management - Professional
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Malaysian Project Management - Professional

  • 1. Dr. Hassan AlsukhniDr. Hassan Alsukhni © www.asia-masters.com
  • 2.   Project – temporary endeavor undertaken to create a unique product or service  Has a definite beginning and end and interrelated activities  Programs adopt new set of objectives and continue to work; projects cease when declared objectives have been attained Chapter 1 – Introduction © www.asia-masters.com
  • 3.   Projects are unique – characteristics are progressively elaborated  Progressively: proceeding in steps  Elaborated: worked with care and detail  Scope of project should remain constant even as characteristics are “progressively elaborated” Chapter 1– Introduction © www.asia-masters.com
  • 4.   Project Management: the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a defined project – balancing the following:  Scope, time, cost, and quality  Stakeholders’ expectations  Requirements (needs) vs. unidentified requirements (expectations) Chapter 1 - Introduction © www.asia-masters.com
  • 5.   Programs are groups of projects managed in a coordinated way to obtain benefits not available from managing the projects individually  Most programs have elements of ongoing operations  Series of repetitive or cyclical undertakings  Projects are often divided into “subprojects” for more manageability  Often contracted out to external organizations Chapter 1 - Introduction © www.asia-masters.com
  • 6.   Project Phases are marked by the completion of a deliverable  Tangible, verifiable work product  Review of deliverables and approval/denial are “phase exits, stage gates, or kill points”  Phases are collected into the Project Life Cycle  Set of defined work procedures to establish management control Chapter 2 – Project Management Context © www.asia-masters.com
  • 7.   Project Life Cycle defines:  Technical work performed in each phase  Who is involved in each phase  Project Phases can overlap – “Fast Tracking”  Common Characteristics of Project Life Cycles:  Cost and Staffing levels are low at start and move higher towards the end  Probability of successfully completing project is low at beginning, higher towards the end as project continues  Stakeholder influence is high at the beginning and progressively lowers as project continues Chapter 2 – Project Management Context © www.asia-masters.com
  • 8.   Stakeholders: individuals and organizations who are actively involved in the project  Often have conflicting expectations and objectives  In general, differences should be resolved in favor of the customer – individual(s) or organization(s) that will use the outcome of the project  Stakeholder management is a proactive task  Project Mangers must determine all stakeholders and incorporate their needs into the project Chapter 2 – Project Management Context © www.asia-masters.com
  • 9.   Stakeholders are:  Project Managers  Customers  Performing Organizations, owners  Sponsor  Team  Internal/External  End User  Society, citizens  Others: owner, funders, supplier, contractor Chapter 2 – Project Management Context © www.asia-masters.com
  • 10.   Organizational Systems: Project based vs. Non- Project Based  Project Based – derive revenues from performing projects for others (consultants, contractors),”management by projects”  Non-Project Based – seldom have management systems designed to support project needs (manufacturing, financial services) Chapter 2 – Project Management Context © www.asia-masters.com
  • 11.   Organizational Cultures and Styles:  Entrepreneurial firms more likely to adopt highly participative Project Manager – accept higher risk/reward  Hierarchical firms less likely to adopt participative Project Manager – take fewer risks Chapter 2 – Project Management Context © www.asia-masters.com
  • 12.   Organizational Structures  Functional (classical) marked by identifiable superiors. Staff grouped by specialty . Perceived scope of project limited by function (Engineering, HR). Typically have part-time Project Manager  Projectized Organization –blend functional and projectized characteristics. Mix cross-department personnel with full-time Project Manger Chapter 2 – Project Management Context © www.asia-masters.com
  • 13.   Project Management Skills  General Business Management (consistently producing results expected by stakeholders)  Leading (establishing direction, aligning resources, motivating)  Communicating (clear, unambiguous, and complete)  Negotiating (conferring with others to reach an agreement)  Problem Solving (definition and decision making)  Distinguish causes and symptoms  Identify viable solutions  Influencing Organization (understanding power and politics) Chapter 2 – Project Management Context © www.asia-masters.com
  • 14.   Socioeconomic Influences  Standards – document approved that provides common, repeated use, rules and guidelines  Compliance is not mandatory  Regulations – document that identifies products, services or characteristics  Compliance is mandatory  Standards often become “de facto” regulations  Internationalization  Cultural Influences Chapter 2 – Project Management Context © www.asia-masters.com
  • 15.   Organization Structure Pro’s and Con’s  Projectized  Efficient Organization – No “home”  Loyalty – Lack of Professionalism  Effective Communication – Duplication of functions, less efficient resource usage  Matrix  Visible Objectives – not cost effective  PM Control – More than 1 boss  More support – More complex to control  Utilize scarce resources – Tough resource allocation  Information distribution – Competition of priorities  Coordination – Policies & Procedures  Home based – Potential for conflict Chapter 2 – Project Management Context © www.asia-masters.com
  • 16.   Functional Organization  Specialists – More emphasis on functions  1 supervisor – No career path in PM Chapter 2 – Project Management Context © www.asia-masters.com
  • 17.   Project Management requires active management of Project Processes  Series of actions that achieve a result  Project Management Processes  Describing and organizing the work  Product-Oriented Processes  Specifying and creating the product Chapter 3 – Project Management Processes © www.asia-masters.com
  • 18.   Process Groups:  Initiating processes: recognizing a project or phase should begin  Planning processes: devising and maintaining a workable plan  Executing processes: coordinating resources to execute the plan  Controlling processes: ensuring project objectives are met; monitoring, correcting and measuring progress  Closing processes: formalized acceptance Chapter 3 – Project Management Processes © www.asia-masters.com
  • 19.   Process Groups are linked by the results each produces  Process Groups are overlapping activities with various levels of intensity  Process Group interactions cross phases – “rolling wave planning”  Provides details of work to complete current phase and provide preliminary description of work for subsequent phases  Individual processes have inputs, tools and techniques, and outputs (deliverables) Chapter 3 – Project Management Processes © www.asia-masters.com
  • 20.   Initiating and Planning Processes  Committing the organization to begin  Initiation, High-level planning, Charter  Amount of planning proportional to the scope of the project – Core Planning  Scope Planning – written statement  Scope Definition – subdividing major deliverables into more manageable units  Activity Definition – determine specific tasks needed to produce project deliverables  Activity Sequencing – plotting dependencies Chapter 3 – Project Management Processes © www.asia-masters.com
  • 21.   Core Planning (continued)  Activity Duration Estimating – determine amount of work needed to complete the activities  Schedule Development – analyze activity sequences, duration, and resource requirements  Resource Planning – identify what and how many resources are needed to perform the activities  Cost Estimating – develop resource and total project costs  Cost Budgeting – allocating project estimates to individual work items  Project Plan Development – taking results from other planning processes into a collective document Chapter 3 – Project Management Processes © www.asia-masters.com
  • 22.   Planning/Facilitating Processes – manage the interaction among the planning processes  Quality Planning – standards that are relevant to the project and determining how to meet standards  Organizational Planning – identify, document, and assigning project roles and responsibilities  Staff Acquisition – obtaining the human resources  Communications Planning – determining rules and reporting methods to stakeholders Chapter 3 – Project Management Processes © www.asia-masters.com
  • 23.   Planning/Facilitating Processes (continued)  Risk Identification – determining what is likely to affect the project and documenting these risks  Risk Quantification – evaluating risks and interactions to access the possible project outcomes  Risk Response Development – defining enhancement steps and change control measures  Procurement Planning – determining what to buy and when  Solicitation Planning – documenting product requirements and identifying possible sources Chapter 3– Project Management Processes © www.asia-masters.com
  • 24.  Planning/Facilitating Processes (continued)  Order of events:  Scope Statement  Create Project Team  Work Breakdown Structure  WBS dictionary  Finalize the team  Network Diagram  Estimate Time and Cost  Critical Path  Schedule  Budget  Procurement Plan  Quality Plan  Risk Identification, quantification and response development  Change Control Plan  Communication Plan  Management Plan  Final Project Plan  Project Plan Approval  Kick off Chapter 3– Project Management Processes © www.asia-masters.com
  • 25.   Executing Processes  Project Plan Execution – performing the activities  Complete Tasks/Work Packages  Information Distribution  Scope Verification – acceptance of project scope  Quality Assurance – evaluating overall project performance on a regular basis; meeting standards  Team Development – developing team and individual skill sets to enhance the project  Progress Meetings Chapter 3 – Project Management Processes © www.asia-masters.com
  • 26.   Executing Processes (continued)  Information Distribution – making project information available in a timely manner  Solicitation – obtaining quotes, bids, proposals as appropriate  Source Selection – deciding on appropriate suppliers  Contract Administration – managing vendor relationships Chapter 3 – Project Management Processes © www.asia-masters.com
  • 27.   Controlling Processes – needed to regularly measure project performance and to adjust project plan  Take preventive actions in anticipation of possible problems  Change Control – coordinating changes across the entire project plan  Scope Change Control – controlling “scope creep”  Schedule Control – adjusting time and project schedule of activities Chapter 3 – Project Management Processes
  • 28.   Controlling Processes (continued)  Cost Control – managing project budget  Quality Control – monitoring standards and specific project results; eliminating causes of unsatisfactory performance  Performance Reporting – status, forecasting, and progress reporting schedule  Risk Response Control – responding to changes in risk during the duration of the project Chapter 3– Project Management Processes © www.asia-masters.com
  • 29.   Closing Processes  Administrative Closure – generating necessary information to formally recognize phase or project completion  Contract Close-out – completion and delivery of project deliverables and resolving open issues  Procurement Audits  Product Verification  Formal Acceptance  Lessons Learned  Update Records  Archive Records  Release Team Chapter 3 – Project Management Processes © www.asia-masters.com
  • 30.   Overall Processes  Influencing the organization  Leading  Problem Solving  Negotiating  Communicating  Meetings Chapter 3 – Project Management Processes © www.asia-masters.com
  • 31.   Project Selection Techniques  Comparative Approach (similar projects)  Benefit measurement method  Constrained Optimization (mathematical approach)  Key aspect of scope verification is customer acceptance  Only 26 % of projects succeed Chapter 3– Project Management Processes © www.asia-masters.com
  • 32.  Project Integration Management  Ensures that the project processes are properly coordinated  Tradeoffs between competing objectives and alternatives in order to meet stakeholder approval  Project Plan Development  Project Plan Execution  Overall Change Control  These processes may occur repeatedly over the project duration  Historical Records are needed to perform project management well, they are inputs to continuous improvement  Files  Lessons Learned  Actual Costs  Time Estimates  WBS  Benchmarks  Risks Chapter 4 – Project Integration Management © www.asia-masters.com
  • 33.   Project Plan Development  Uses outputs from other planning processes to create consistent document to guide project execution and control  Iterated several times  Documents planning assumptions  Documents planning decisions that are chosen  Facilitates communication  Defines key management reviews  Provides a baseline to track progress measurement and project control Chapter 4 – Project Integration Management © www.asia-masters.com
  • 34.   Project Plan Development Inputs  Other planning outputs: primarily the planning process outputs (WBS, base documents, application area inputs)  Historical information – verify assumptions, records of past project performance  Organizational policies – quality management, personnel administration, Financial controls  Constraints – factors that limit performance, contractual provisions, budget  Assumptions – risk factors Chapter 4 – Project Integration Management © www.asia-masters.com
  • 35.   Tools & Techniques for Plan Development  Project Planning Methodology – any structured approach (software, templates, forms, start-up meetings  Stakeholder Skills & Knowledge – tap into plan development; use expertise for reasonableness  PMIS – Out of the box approach to support all project aspects through closure Chapter 4 – Project Integration Management © www.asia-masters.com
  • 36.   Project Plan Development Outputs  Project Plan is a collection that changes over time as more information about the project becomes available  Baseline will change only in response to approved scope change  Project Plan includes some or all of the following:  Project Charter  Project Management approach or strategy  Scope statement  Work Breakdown Structure (WBS)  Budget, schedule, risks  Key Staff, Major Milestones  Change Control Plan, Management and Communications Plan Chapter 4 – Project Integration Management © www.asia-masters.com
  • 37.   Project Plan Components (continued)  Cost Estimates, scheduled start dates and responsibility assignments  Performance measurement baselines  Major milestones and target dates  Required Staff  Risks, constraints and assumptions  Subsidiary management plans (scope, schedule)  Open Issues  Pending Decisions Chapter 4 – Project Integration Management © www.asia-masters.com
  • 38.   Supporting Details to the Project Plan  Outputs from planning processes  Technical documentation  Business requirements, specifications, and designs  Relevant standards  Additional information not previously known Chapter 4 – Project Integration Management © www.asia-masters.com
  • 39.   Project Plan Execution  Primary process for carrying out the project plan  Most costly aspect of project management  Direction of organizational resources and interfaces Chapter 4 – Project Integration Management © www.asia-masters.com
  • 40.   Project Plan Execution Inputs:  Project Plan  Supporting Detail  Organizational Policies  Corrective Action – anything to bring expected performance in line with the project plan Chapter 4 – Project Integration Management © www.asia-masters.com
  • 41.   Tools & Techniques for Plan Execution  General Management Skills  Product Skills and Knowledge – defined as part of planning, provided by staffing  Work Authorization System – formal procedure for sanctioning work to ensure completion – written or verbal authorization  Status review meetings – regular exchanges of information  Project Management Information System  Organizational Procedures Chapter 4 – Project Integration Management © www.asia-masters.com
  • 42.   Project Plan Execution Outputs  Work results – the outcome of activities performed is fed into the performance reporting process  Change Requests – expand/shrink project scope, modify costs and schedule estimates Chapter 4 – Project Integration Management © www.asia-masters.com
  • 43.  Overall Change Control  Influencing factors that create change to ensure beneficial results; ensure that change is beneficial  Determining that change has occurred  Managing actual changes as they occur  Evaluate impact of change  Meet with team to discuss alternatives  Meet with management to present decision  Change control requires  Maintaining integrity of performance measurement baselines (project plan)  Ensuring changes to scope are accurately recorded  Coordinating changes across knowledge areas (scheduling, risk, cost, quality, etc.)  Determine all factors that control change and pro-actively preventing the occurrence; evaluate the impact of change Chapter 4 – Project Integration Management © www.asia-masters.com
  • 44.   Inputs to Change Control  Project Plan – baseline performance  Performance Reports – issue tracking, risk management  Change Requests – orally or written, externally or internally initiates, legally mandated or optional Chapter 4 – Project Integration Management © www.asia-masters.com
  • 45.  Change Control Tools & Techniques  All Changes must be evaluated before a decision can be reached  Change Control System – collection of formal procedures, paperwork, tracking systems, approval levels  Change Control Board – decision making authority  Configuration Management – documented procedure to apply technical and administrative direction  ID and document functional and physical characteristics  Control changes to these characteristics  Record and report change and implementation status  Audit items and system to verify requirements Chapter 4 – Project Integration Management © www.asia-masters.com
  • 46.   Change Control Tools & Techniques  Performance Measurement – earned value, plan variance analysis  Additional Planning – revised cost estimates, modify activity sequences, plan adjustments  Project Management Information System  Change Control System may have  Change Control Plan  Change Control Board  Change Control Procedures, Corrective Action plans  Performance Statistics, Reports, Change forms  Specification reviews, Demonstrations, Testing, Meetings  Configuration Management Chapter 4 – Project Integration Management © www.asia-masters.com
  • 47.   Change Control Outputs  Project Plan Updates  Corrective Actions  Lessons Learned – variance causes and reasoning documented for historical purposes Chapter 4 – Project Integration Management © www.asia-masters.com
  • 48.   Configuration Management  Rigorous Change Management as it relates to scope  Subset of the change control system  Work Authorization System  Controls “gold plating”; defines what task is/is not  Meetings  Most are inefficient; keep minutes  Status can be determined without meeting Chapter 4 – Project Integration Management © www.asia-masters.com
  • 49.   Lessons Learned  Project is not complete until a Lessons Learned is completed  What have we done, how can we do it better  Technical Aspects of the project  Project Management (WBS, plans, etc.)  Overall Management (communications, leadership)  Best to have whole team complete and made available  Also called “Post – Mortem” Chapter 4 – Project Integration Management © www.asia-masters.com
  • 50.   Integration is a result of need for communication within a project  Primary responsibility to decide what changes are necessary is Management  Project Managers must pro-actively define and solve problems before reporting to superiors Chapter 4 – Project Integration Management © www.asia-masters.com
  • 51.   Project Scope Management  Processes required to ensure that the project includes all, and only, work required  Defining what “is/is not” included in the project  Project scope – work that must be done – measured against project plan  Product scope – features and functions included in the product or service – measured against requirements Chapter 5 – Project Scope Management © www.asia-masters.com
  • 52.   Initiation – process of formally recognizing that a new project exists, or an existing project continue to next phase  Involves feasibility study, preliminary plan, or equivalent analysis  Authorized as a result of:  Market Demand  Business Need  Customer Request  Technological Advance  Legal Requirement Chapter 5 – Project Scope Management © www.asia-masters.com
  • 53.   Initiation Inputs:  Product Description – characteristics of the product/service that the project was to create  Less detail in early phases, more comprehensive in latter  Relationship between product/service and business need  Should support later project planning  Initial product description is usually provided by the buyer  Strategic Plan – supportive of the organization's goals Chapter 5 – Project Scope Management © www.asia-masters.com
  • 54.   Initiation Inputs (continued)  Project Selection Criteria – defined in terms of the product and covers range of management concerns (finance, market)  Historical Information – results of previous project decisions and performance should be considered Chapter 5 – Project Scope Management © www.asia-masters.com
  • 55.  Tools & Techniques for Initiation  Project Selection Methods:  Benefit measurement models – comparative approaches, scoring models, economic models  Murder Boards  Peer Review  Scoring Models  Economic Models  Benefits compared to costs  Constrained operation models – programming mathematical  Linear Programming  Integer Programming  Dynamic Programming  Multi-objective programming Chapter 5 – Project Scope Management © www.asia-masters.com
  • 56.   Tools & Techniques for Initiation  Project Selection Methods:  Decision models – generalized and sophisticated techniques  Expert judgment  Business Units with specialized skills  Consultant  Professional and Technical Associations  Industry Groups  Delphi Technique – obtain expert opinions on technical issues, scope of work and risks  Keep expert’s identities anonymous  Build consensus Chapter 5 – Project Scope Management © www.asia-masters.com
  • 57.   Outputs from Initiation:  Project Charter – formally recognizes project, created by senior manager, includes:  Business need/Business Case  Product description & title  Signed contract  Project Manager Identification & Authority level  Senior Management approval  Project’s Goals and Objectives -  Constraints – factors that limit project management team’s options  Assumptions – factors that are considered true for planning purposes. Involve a degree of risk Chapter 5 – Project Scope Management © www.asia-masters.com
  • 58.   Scope Planning – process of developing a written statement as basis for future decisions  Criteria to determine if the project or phase is successful  Scope Planning Inputs:  Product description  Project Charter  Constraints  Assumptions Chapter 5 – Project Scope Management © www.asia-masters.com
  • 59.   Scope Planning Tools & Techniques  Product Analysis - developing a better understanding of the product of the project  Cost/Benefit Analysis – estimating tangible/intangible costs and returns of various project alternatives and using financial measures (R.O.I.) to assess desirability  Alternatives Identification – generate different approaches to the project; “brainstorming”  Expert Judgment Chapter 5 – Project Scope Management © www.asia-masters.com
  • 60.   Scope Planning Outputs  Scope Statement – documented basis for making project decisions and confirming understanding among stakeholders. Includes:  Project justification – business need, evaluating future trade-offs  Project Product – summary of project description  Project Deliverables – list of summary of delivery items marking completion of the project  Project Objectives – quantifiable criteria met for success. Addresses cost, schedule and metrics – unqualified objectives indicate high risk (customer satisfaction) Chapter 5 – Project Scope Management © www.asia-masters.com
  • 61.   Scope Planning Outputs (continued)  Supporting detail – includes documentation of all assumptions and constraints  Scope Management Plan – how project scope is managed, change control procedure, expected stability, change identification and classification  Control what is/is not in the project; prevents delivering “extra” benefits to the customer that were not specified/required Chapter 5 – Project Scope Management © www.asia-masters.com
  • 62.   Scope Definition – subdividing major deliverables into smaller, manageable components  Improve accuracy of cost, time, and resource estimates  Define a baseline for performance measurement  Clear responsibility assignments  Critical to project success – reduces risk of higher cost, redundancy, time delays, and poor productivity  Defines “what” you are doing; WBS is the tool Chapter 5 – Project Scope Management © www.asia-masters.com
  • 63.   Scope Definition Inputs:  Scope Statement  Constraints – consider contractual provisions  Assumptions  Other Planning Outputs  Historical Information Chapter 5 – Project Scope Management © www.asia-masters.com
  • 64.   Scope Definition Tools & Techniques  Work Breakdown Structure – templates from previous projects  Decomposition – subdividing major deliverables into manageable components:  Major elements – project deliverables and project management approach  Decide cost and duration estimates are appropriate at level of detail  Constituent elements – tangible verifiable results to enable performance management, how the work will be accomplished  Verify correctness of decomposition  All items necessary and sufficient?  Clearly and completely defined?  Appropriately scheduled, budgeted, assigned? Chapter 5 – Project Scope Management
  • 65.   Scope Definition Outputs  Work Breakdown Structure (WBS) – a deliverable-oriented grouping of project assignments that organizes and defines the scope of the project  Each descending level represents further detail; smaller and more manageable pieces  Each item is assigned a unique identifier collectively known as “code of accounts”  Work element descriptions included in a WBS dictionary (work, schedule and planning information)  Other formats:  Contractual WBS – seller provides the buyer  Organizational (OBS) – work elements to specific org. units  Resource (RBS) – work elements to individuals Chapter 5 – Project Scope Management
  • 66.   Scope Definition Outputs  Work Breakdown Structure (WBS)  First Level is commonly the same at the Project Life Cycle (requirements, design, coding, testing, conversion and operation)  First level is completed before the project is broken down further  Each level of the WBS is a smaller segment of level above  Work toward the project deliverables  Break down project into tasks that  Are realistically and confidently estimable  Cannot be logically divided further  Can be completed quickly (under 80 hours rule of thumb)  Have a meaningful conclusion and deliverable  Can be completed without interruption Chapter 5 – Project Scope Management
  • 67.   Scope Definition Outputs  Work Breakdown Structure (WBS) - Benefits  Prevent work slippage  Project team understands how their tasks fit into the overall project and their impact upon the project  Facilitates communication and cooperation between project team and stakeholders  Helps prevent changes  Focuses team experience into what needs to be done – results in higher quality  Basis and proof for estimating staff, cost and time  Gets team buy-in, role identification  Graphical picture of the project hierarchy  Identifies all tasks, project foundation Chapter 5 – Project Scope Management
  • 68.   WBS phrases  Graphical hierarchy of the project  Identifies all tasks  Foundation of the project  Very important  Forces thought of all aspects of the project  Can be re-used for other projects Chapter 5 – Project Scope Management © www.asia-masters.com
  • 69.   Scope Definition Outputs  Work Breakdown Structure (WBS) – Dictionary  Designed to control what work is done and when  Also known as a task description  Puts boundary on what is included in a task and what is not included Chapter 5 – Project Scope Management © www.asia-masters.com
  • 70.   Scope Verification Inputs  Work results – partially/completed deliverables, costs to date  Product documentation – description available for review (requirements)  Scope Verification Tools & Techniques  Inspection – measuring, examining, testing to determine if results conform to requirements  Scope Verification Outputs  Formal acceptance – documentation identifying client and stakeholder approval, customer acceptance of efforts Chapter 5 – Project Scope Management
  • 71.   Scope Change Control:  Influencing factors to ensure that changes are beneficial  Determining scope change has occurred  Managing changes when they occur  Thoroughly integrated with other control processes Chapter 5 – Project Scope Management © www.asia-masters.com
  • 72.   Scope Change Control Inputs:  Work Breakdown Structure  Performance Reports - issues reported  Change Requests – expansion/shrink of scope derived from :  External events (government regulations)  Scope definition errors of product or project  Value adding change – new technology  Scope Management Plan Chapter 5 – Project Scope Management © www.asia-masters.com
  • 73.  Scope Change Control Tools & Techniques  Scope Change Control System – defines procedures how scope change can occur  All paperwork, tracking systems, approval levels  Integrated with overall change control procedures  Performance Measurement – determine what is causing variances and corrective actions  Additional Planning Chapter 5 – Project Scope Management © www.asia-masters.com
  • 74.   Scope Change Control Outputs:  Scope Changes – fed back through planning processes, revised WBS  Corrective Actions  Lessons Learned – cause and reasoning for variances documented for historical purposes Chapter 5 – Project Scope Management © www.asia-masters.com
  • 75.   Management By Objectives (MBO)  Philosophy that has 3 steps:  Establish unambiguous and realistic objectives  Periodically evaluate if objectives are being met  Take corrective action  Project Manager must know that if project is not aligned or support corporate objectives, the project is likely to lose resources, assistance and attention.  MBO only works if management supports it Chapter 5 – Project Scope Management © www.asia-masters.com
  • 76.   Project Time Management  Processes required to ensure timely completion of the project  No consensus concerning differences between activities and tasks  Activities seen as composed of tasks –most common usage  Other disciplines have tasks composed of activities Chapter 6 – Project Time Management © www.asia-masters.com
  • 77.   Activity Definition: identifying and documenting specific activities to produce project deliverables identified in the WBS  Must be defined to meet the project objectives Chapter 6 – Project Time Management © www.asia-masters.com
  • 78.   Activity Definition Inputs  WBS – primary input  Scope Statement – project justification & project objectives  Historical Information  Constraints  Assumptions Chapter 6 – Project Time Management © www.asia-masters.com
  • 79.   Activity Definition Tools & Techniques  Decomposition – outputs are expressed as activities rather than deliverables  Templates – reuse from previous projects Chapter 6 – Project Time Management © www.asia-masters.com
  • 80.   Activity Definition Outputs  Activity List – all to be performed; extension to the WBS and includes description to ensure team members understand work to be performed  Supporting Detail – organized as needed and include all assumptions and constraints  WBS Updates – identify missing deliverables and clarify deliverable descriptions. WBS updates often called refinements; more likely using new technologies in project Chapter 6 – Project Time Management © www.asia-masters.com
  • 81.   Activity Sequencing – identifying and documenting interactive dependencies among activities. Support later development of a realistic schedule  Project Management software often used Chapter 6 – Project Time Management © www.asia-masters.com
  • 82.   Activity Sequencing Inputs:  Activity List  Product Description – product characteristics often affect activity sequencing  Mandatory Sequencing – physical limitations, hard logic, prototypes needed; inherent in nature of work being done  Discretionary Dependencies – defined by project management team; “best practices” or unusual aspects of project – soft logic, preferred logic, preferential logic  External Dependencies – relationship between project activities and non-project activities (company policies, procurement, etc.)  Constraints  Assumptions Chapter 6 – Project Time Management © www.asia-masters.com
  • 83.   Network Diagrams  Shows how the project tasks will flow from beginning to end  Proves how long the project will take to complete  Takes project tasks from low levels of WBS and placing them into their order of completion (beginning to end) Chapter 6 – Project Time Management © www.asia-masters.com
  • 84.   Activity Sequencing Tools & Techniques  Precedence Diagramming Method (PDM) – constructing network diagram using nodes to represent activities and arrows to indicate dependencies; also called Activity On Node (AON)  Most project management software uses  Includes 4 types of dependencies:  Finish to Start – “from” activity must finish before “to” activity can begin; most commonly used  Finish to Finish – “from” activity must finish before the next may finish  Start to Start – “from” activity must start before next “to” activity can start Chapter 6 – Project Time Management
  • 85.  Activity Sequencing Tools & Techniques (continued)  Arrow Diagramming Method (ADM) – uses arrows to represent activities and connecting at nodes to illustrate dependencies  Also called Activity On Arrow (AOA)  Only uses finish to start dependencies  PERT and CPM only can be drawn using AOA Chapter 6 – Project Time Management © www.asia-masters.com
  • 86.  Activity Sequencing Tools & Techniques (continued)  Conditional diagramming methods  GERT (Graphical Evaluation and Review Technique)  System Dynamic Models  Allow for non-sequential activities (loops) or conditional branches – not provided by PDM or ADM methods Chapter 6 – Project Time Management © www.asia-masters.com
  • 87.  Activity Sequencing Tools & Techniques (continued)  Network Templates – standardized networks can be used. Composed of subnets, or fragnets  Subnets are several nearly identical portions of a network (floors on a building, clinical trials, program modules)  Useful for several identical processes (clinical trials, programming modules). Chapter 6 – Project Time Management © www.asia-masters.com
  • 88.   Activity Sequencing Outputs:  Project Network Diagram – schematic display of project activities and relationships (dependencies). Should be accompanied by a summary narrative that describes the diagram approach  Activity List Updates Chapter 6 – Project Time Management © www.asia-masters.com
  • 89.   Activity Duration Estimating  Involves assessing number of work periods needed to complete identified activities  Requires consideration of elapsed time, calendars, weekends, and day of week work starts Chapter 6 – Project Time Management
  • 90.  Activity Duration Estimating Inputs:  Activity Lists  Constraints  Assumptions  Resource Requirements – amount of labor assigned to activity  Resource Capabilities – human and material resources, expertise  Historical Information  Project Files, or records of previous project results  Commercial Duration Estimates – useful when durations are not driven by actual work (approval periods, material resources)  Project Team Knowledge Chapter 6 – Project Time Management
  • 91.  Activity Duration Estimating Tools & Techniques  Expert Judgment – guided by historical information should be used whenever possible; high risk without expertise avail.  Simulation – using different sets of assumptions (Monte Carlo Analysis) to drive multiple durations  Analogous Estimating – “top down estimating” – use actual, similar, previous known durations as basis for future activity duration. Used when limited knowledge is available. Form of expert judgment Chapter 6 – Project Time Management © www.asia-masters.com
  • 92.   Activity Duration Outputs:  Activity Duration Estimates – quantitative assessments of work periods to complete an activity. Should indicate a range +/- of possible results  Basis of Estimates – all assumptions should be documented  Activity List Updates Chapter 6 – Project Time Management © www.asia-masters.com
  • 93.   Schedule Development  Determining start and finish dates for project activities  Without realistic dates, project unlikely to be finished as scheduled  Schedule development process often iterates as more information becomes available (process inputs) Chapter 6 – Project Time Management © www.asia-masters.com
  • 94.   Schedule Development Inputs:  Project Network Diagram  Activity Duration Estimates  Resource Requirements  Resource Pool Description – availability patterns; shared resources are highly variable  Calendars – define eligible work periods  Project Calendars affect all resources  Resource Calendars – affect specific resource pools or individuals Chapter 6 – Project Time Management
  • 95.   Schedule Development Inputs (continued):  Constraints  Imposed Dates – may be required  Key events or milestones – are initially requested and become expected during project  Assumptions  Lead and Lag Time – dependencies may specify time in order to satisfy relationship (example – 2 weeks to receive order) Chapter 6 – Project Time Management
  • 96.   Schedule Development Tools & Techniques  Mathematical Analysis – calculating theoretical early/late finish and start dates without regard for resource pool limitations; indicate time periods which activity should be scheduled given resource limits and other constraints:  Critical Path Method (CPM) – single early/late start and finish date for all activities. Based on specified, sequential network and single duration estimate. Calculates float to determine flexibility  Graphical Evaluation and Review Technique (GERT) – probabilistic treatment of network and activity duration estimates  Program Evaluation and Review Technique (PERT) - sequential network and weighted average duration to calculate project duration – differs from CPM by using mean (expected value) instead of most- likely estimate in CPM Chapter 6 – Project Time Management
  • 97.   Schedule Development Tools & Techniques  Critical Path Method: refers to estimating based on one time estimate per activity  One time estimate per task (Most Likely)  Emphasis on controlling cost and leaving schedule flexible  Drawn using AOA diagrams  Can have dummy task  PERT (Program Review and Estimating Technique)  3 Time estimates per activity  Optimistic  Pessimistic  Most Likely  Emphasis on meeting schedule, flexibility with costs  Drawn on AOA diagrams  Can have dummy tasks Chapter 6 – Project Time Management
  • 98.   Schedule Development Tools & Techniques  Monte Carlo Analysis  Uses a computer with PERT values and network diagram  Tells  Probability of completing a project on any specific day  Probability of completing a project for any specific amount of cost  Probability of any task actually being on the critical path  Overall Project Risk  Suggests that Monte Carlo simulation will create a project duration that is closer to reality than CPM or PERT Chapter 6 – Project Time Management © www.asia-masters.com
  • 99.   Schedule Development Tools & Techniques (continued)  Duration Compression – look to shorten project schedule without affecting scope  Crashing – cost and schedule trade-offs to determine greatest amount of compression for least incremental cost – often results in higher costs  Fast Tracking – performing activities in parallel that normally would be sequenced – often results in re-work and usually increases risk  Simulation Chapter 6 – Project Time Management © www.asia-masters.com
  • 100.   Schedule Development Tools & Techniques (continued)  Resource Leveling Heuristics – leveling resources that apply to critical path activities a.k.a. “resource constrained scheduling” – when limitation on quantity of available resources; sometimes called “Resource Based Method” – often increases project duration  Project Management Software Chapter 6 – Project Time Management
  • 101.   Schedule Development Tools & Techniques (continued)  Project Manger’s role  Provide the team with the necessary information to properly estimate the task  Complete a sanity check of the estimate  Formulate a reserve  Project Team should be involved; determine task estimates  Historical Records  Guesses  Actual Costs  Benchmarks Chapter 6 – Project Time Management
  • 102.   Schedule Development Tools & Techniques  Critical Path Method: longest path through a network diagram and determines the earliest completion of the project  Proves how long the project will take  Indicates tasks that need most monitoring  Almost always have no slack Chapter 6– Project Time Management © www.asia-masters.com
  • 103.   Schedule Development Outputs:  Project Schedule – includes planned start and finish dates for each activity; remains preliminary until resources assignments are approved. Usually in following formats:  Project Network Diagrams (with date information added) – show logical and critical path activities  Bar or Gantt charts – activity start and end dates, expected durations  Milestone Charts – identifies key deliverables and interfaces  Time-scaled network diagrams – blend of project network and bar charts Chapter 6 – Project Time Management © www.asia-masters.com
  • 104.   Schedule Development Outputs (continued):  Supporting Detail – all assumptions and constraints. May also include:  Resource requirement by time period (resource histogram)  Alternative schedules (best/worst case)  Schedule reserve/risk assessments  Schedule Management Plan – how updates are managed  Resource requirement updates – leveling and activity impact Chapter 6 – Project Time Management
  • 105.   Schedule Control:  Influencing factors which create schedule changes to ensure changes are beneficial  Determining that schedule has changed  Managing actual changes as they occur  Inputs to Schedule Control:  Project Schedule – baseline approved, measure against project performance  Performance Reports – planned dates met, issues  Change Requests  Schedule Management Plan Chapter 6 – Project Time Management
  • 106.   Schedule Control Tools & Techniques  Schedule Change Control System – defines procedures for schedule changes, paperwork, approval, tracking systems  Performance Measurement – assess magnitude of variations to baseline; determine if corrective action is needed  Additional Planning  Project Management Software Chapter 6 – Project Time Management © www.asia-masters.com
  • 107.   Schedule Control Outputs:  Schedule Updates – any modifications, stakeholder notification  Revisions change scheduled start and finish dates – generally in response to scope changes. “Re-baselining” may be needed in drastic situations  Corrective Action – re-align performance with project plan  Lessons Learned Chapter 6 – Project Time Management © www.asia-masters.com
  • 108.   Key knowledge points not in PMBOK  Need to know manual calculations of network diagrams  Created after project charter and WBS (task estimates and dependencies are determined)  Mandatory dependencies (Hard Logic) – inherent in nature of work  Discretionary dependencies (Soft Logic) – based on experience, desire or results  External dependencies – based on needs and desires of organizations outside the project Chapter 6 – Project Time Management
  • 109.   Methods to draw network diagrams  Activity on Node (AON) or Precedence Diagramming Method (PDM)  Boxes represent tasks  Arrows show task dependencies  4 types of task relationships  Finish to Start (task must finish before next can start)  Finish to Finish (task must finish before next can finish)  Start to Start (task must start before next can start)  Start to Finish (task must start before the next can finish)  No dummy tasks used Chapter 6 – Project Time Management
  • 110.  Methods to draw network diagrams  Activity on Arrow (AOA or Arrow Diagramming Method (ADM)  Arrows used to represent tasks  Only Finish to Start relationships are used  May use dummy tasks (show dependencies)  PERT and CPM estimating techniques can only be drawn using AOA  CPM (Critical Path Method) – estimating based on one time estimate per activity (the most likely time estimate)  Emphasizes controlling cost and allowing schedule flexibility  Can have dummy tasks Chapter 6 – Project Time Management © www.asia-masters.com
  • 111.   Methods to draw network diagrams  Activity on Arrow (AOA or Arrow Diagramming Method (ADM) continued:  PERT (Program Evaluation and Review technique)  3 time estimates per activity: Optimistic (O), Most Likely (M), Pessimistic (P)  Emphasizes meeting schedule, flexibility with cost  Can have dummy tasks Chapter 6 – Project Time Management © www.asia-masters.com
  • 112.   Methods to draw network diagrams  PERT (Program Evaluation and Review technique)  Estimating based on 3 formulas:  PERT Duration: (P + 4M + O)/6  Standard Task Deviation: (P – O)/6  Task Variance:  Total project estimate:  Add up all Optimistic, Most Likely and Pessimistic values of the critical path tasks and apply P + 4M + O/6  Total project variance (+/-):  Add up the individual task variances and take the square root of the value. Use the value as a +/- figure to compute the Optimistic and Pessimistic values. The total project estimate will serve as the basis. Chapter 6 – Project Time Management [P – O]2 6 © www.asia-masters.com
  • 113.   Monte Carlo Simulation:  Uses a computer with PERT values (P, M, O) and a network diagram but does not use the PERT formula  Indicates  Probability of completing project on a specific day  Probability of completing project for any specific amount of cost  Probability of any task actually being on critical path  Overall project risk Chapter 6 – Project Time Management © www.asia-masters.com
  • 114.   Estimating techniques in general:  Should be performed by entire project team  Project manager needs to provide information to allow team to create estimates; sanity check; formulate reserve  Estimates are:  Guesses, Historical Records, Actual Costs, Benchmarks, CPM, PERT  Critical paths determines the earliest completion date and identifies tasks that need monitoring  Can be obtained by CPM, PERT and Monte Carlo estimating techniques Chapter 6 – Project Time Management
  • 115.   Key Definitions:  Slack (Float): the amount of time a task can be delayed without delaying the entire project. Tasks on critical path have no slack.  Slack is calculated by the difference between Early Start and Late Start of a task  Free Slack (Float): the amount of time a task can be delayed without delaying the early start date of its successor  Total Slack (Float): the amount of time a task can be delayed without delaying the project completion date  Lag: inserted waiting time between tasks Chapter 6 – Project Time Management © www.asia-masters.com
  • 116.  General Comments:  Projects can have more than 1 critical path (increases risk) and can involve dummy tasks  Negative float indicates that you are behind  Resource Leveling involves possibly letting schedule and cost slip  Heuristics – just means “rule of thumb” e.g. 80/20 rule  Schedules are calendar based – makes this different than a time estimate  Bar Chart a.k.a. Gantt chart (track progress, report to entire team including stakeholders, control tool)  Network Diagram (to show task inter-dependencies, show project organization, basis for project control)  Milestone chart (report to Senior management, shows major events) Chapter 6 – Project Time Management
  • 117.   General Comments:  To shorten project schedule examine the critical path  Crashing – add more resources to the critical path tasks  Usually results in increased cost  Fast Tracking – performing tasks in parallel  Can result in re-work and increased risk  Best to select method that has least impact on the project (is the importance on cost, risk or schedule?) Chapter 6 – Project Time Management
  • 118.   General Comments:  Bar (Gantt) Charts  Weak Planning Tool, effective progress and reporting tool  Does not show interdependencies of tasks  Does not help organize the project more effectively  Network Diagrams (PERT, CPM, PDM)  Shows task interdependencies  Aids in effectively planning and organizing work  Provides a basis for project control  Milestone Charts  Only shows major events  Good for reporting to management and customer  Flow Charts  Depicts workflow and not commonly used for project management Chapter 6 – Project Time Management
  • 119.   General Comments:  Free Slack (Float) – amount of time a task can be delayed without delaying the early start date of its successor  Total Slack (Float) – amount of time a task can be delayed without delaying the project completion date  Lag – inserted waiting time between tasks  Resource Leveling – level peaks of resource usage; stable number of resources – allows schedule and cost slip in favor of leveling resources  Heuristic – rule of thumb (80/20 rule) Chapter 6 – Project Time Management © www.asia-masters.com
  • 120.   Project Cost Management  Ensure that the project is completed within budget  Concerned with cost of resources needed to complete activities; consider effect of project decisions on cost of using product “life-cycle costing”  Most prospective financial impact of using the product is outside the project scope  Consider information needs of stakeholders, controllable and uncontrollable costs (budget separately for reward and recognition systems) Chapter 7 – Project Cost Management
  • 121.  Project Cost Management  Estimating should be based on WBS to improve accuracy  Estimating should be done by the person performing the work  Having historical records is key to improving estimates  Costs (schedule, scope, resources) should be managed to estimates  A cost (schedule, scope, baseline) should be kept and not changed  Plans should be revised as necessary during completion of work  Corrective action should be taken when cost problems (schedule, scope and resources) occur. Chapter 7 – Project Cost Management
  • 122.   Resource Planning:  Determining what physical resources and quantities are needed to perform work  Inputs to Resource Planning:  Work Breakdown Structure  Historical Information  Scope Statement – justification & objectives  Resource Pool Description – what resources are potentially available for resource planning  Organizational Policies – staffing, procurement Chapter 7 – Project Cost Management
  • 123.   Inputs to Resource Planning:  Work Breakdown Structure  Network Diagram  Schedule  Risks  Historical Information  Scope Statement – justification & objectives  Resource Pool Description – what resources are potentially available for resource planning  Organizational Policies – staffing, procurement Chapter 7 – Project Cost Management
  • 124.   Resource Planning Tools & Techniques  Expert Judgment  Alternatives Identification  Resource Planning Outputs:  Resource Requirements – what type & how many resources are needed for each activity in the Work Breakdown Structure Chapter 7 – Project Cost Management
  • 125.   Cost Estimating:  Develop approximate costs of resources  Distinguish estimating from pricing  Estimating – likely amount  Pricing – business decision  Identify alternatives and consider realigning costs in phases to their expected savings Chapter 7 – Project Cost Management © www.asia-masters.com
  • 126.   Cost Estimating Inputs:  Work Breakdown Structure  Resource Requirements  Resource Rates (if known)  Activity Duration Estimates  Historical Information – (project files, commercial cost databases, team knowledge  Chart Of Accounts – coding structure for accounting; general ledger reporting Chapter 7 – Project Cost Management
  • 127.  Cost Estimating Tools & Techniques  Analogous Estimating – “top down”; using actual costs from previous project as basis for estimate  Reliable when previous projects are similar and individuals have expertise – form of expert judgment  Parametric Modeling – uses project characteristics in mathematical models to predict costs (e.g.building houses)  Reliable when historical information is accurate, parameters are quantifiable, and model is scalable  2 types: Regression analysis, Learning Curve  Bottom Up Estimating – rolling up individual activities into project total – smaller work activities have more accuracy  Computerized tools – spreadsheets, software Chapter 7 – Project Cost Management © www.asia-masters.com
  • 128.   Cost Estimating Tools & Techniques  Pro’s and Con’s  Analogous Estimating  Quick - Less Accurate  Tasks don’t need to be identified – Estimates prepared with little detail and understanding of project  Less costly – Requires considerable experience to do well  Gives PM idea of management expectations – Infighting at high levels of organization  Overall project costs are capped – Difficult for projects with uncertainty Chapter 7 – Project Cost Management © www.asia-masters.com
  • 129.   Cost Estimating Tools & Techniques  Pro’s and Con’s  Bottom Up Estimating  More Accurate – Takes time and expense  Gains buy-in from the team – Tendency for team to pad estimates  Based on detailed analysis of project – Requires that project be defined and understood  Provides a basis for monitoring and control – Team infighting to get biggest piece of pie Chapter 7 – Project Cost Management © www.asia-masters.com
  • 130.  Outputs from Cost Estimating  Cost estimates – quantitative assessments of likely costs of resources required to complete tasks  For all resources of the project (labor, materials, supplies, inflation allowance, reserve)  Expressed in units of currency  Supporting Detail  Description of scope (reference to the WBS)  Documentation how estimate was developed  Indication of range of possible results  Assumptions  Cost Management Plan – how cost variances will be managed  Cost Risk: associated to seller for Fixed Price; associated to buyer for Time and Materials budget Chapter 7 – Project Cost Management © www.asia-masters.com
  • 131.   Cost Budgeting  Involves allocation of total estimate to individual work to establish a cost baseline to measure performance  Cost Budgeting Inputs  Cost Estimate  Work Breakdown Structure  Project Schedule – includes planned start and finish dates for items costs are allocated to  Needed to assign costs during the time period when the actual cost will be incurred Chapter 7 – Project Cost Management
  • 132.   Cost Budgeting Tools & Techniques  Same as Cost Estimating Tools and Techniques  Outputs from Cost Budgeting  Cost Baseline – time phased budget to measure and monitor cost performance  Developed by summing estimated costs by period (S curve of values vs. time)  Larger projects have multiple baselines to measure different aspects of cost performance Chapter 7 – Project Cost Management © www.asia-masters.com
  • 133.   Cost Control  Concerned with influencing factors that create changes to the cost baseline that are beneficial  Determining that the cost baseline has changed  Managing actual changes as they occur  Monitor cost performance to detect variances  Record all appropriate changes accurately in the cost baseline  Preventing incorrect, unauthorized changes being included in the cost baseline  Informing stakeholders of authorized changes  Determine the “why’s” of positive and negative variances  Integrated will all other control processes (scope, change, schedule, quality) Chapter 7 – Project Cost Management
  • 134.   Inputs to Cost Control  Cost Baseline  Performance Reports – meet, exceed budget  50/50 Rule – task is considered 50% complete when it begins and gets credit for remainder 50% only when completed  20/80 Rule - task is considered 20% complete when it begins and gets credit for remainder 80% only when completed  0/100 Rule – task only credited when fully completed  Change Requests  Cost Management Plan  Tools & Techniques of Cost Control  Cost Change Control System – defines the procedures by which the cost baseline may be changed  Performance Measurement – assess magnitude of cost variations (Earned Value Analysis) and what is causing the variance  Additional Planning – examine alternatives  Computerized Tools – forecast planned costs, track actual costs, forecast effect of cost changes Chapter 7 – Project Cost Management
  • 135.   Cost Control Outputs  Revised Cost Estimate  Modifications to cost information; require stakeholder approval and adjustments to other project areas  Budget Updates – changes to approved cost baseline; revised in response to scope changes  Corrective Action  Estimate at completion – (EAC) – forecast of total expenditures  Actual to date plus remaining budget modified by a factor (cost performance index)  Current variances are seen to apply to future variances  Actual to date plus new estimate for remaining work  Original estimates are flawed, or no longer relevant  Actual to date plus remaining budget  Current variances are typical and similar variances will not occur in the future  Lessons Learned Chapter 7 – Project Cost Management
  • 136.   Earned Value Analysis  Integrates cost, schedule and scope  Better that comparing projected vs. actual because time and cost are analyzed separately  Terms:  BCWS – Budgeted Cost of Work Scheduled (how much work should be done)  BCWP – Budgeted Cost of Work Performed a.k.a. Earned Value (how much work is budgeted, how much did we budget)  ACWP – Actual Cost of Work Performed (how much did the completed work cost) Chapter 7 – Project Cost Management
  • 137.   Earned Value Analysis  Terms:  BAC – Budget at Completion (how much did you budget for the total job)  EAC – Estimate at Completion (what do we expect the total project to cost)  ETC – Estimate to Completion (how much more do we expect to spend to finish the job)  VAC – Variance at Completion (how much over/under budget do we expect to be) Chapter 7 – Project Cost Management
  • 138.   Earned Value Analysis  Formulas  Variance (Plan – Actual)  Cost Variance (CV): BCWP – ACWP; negative is over budget  Schedule Variance (SV): BCWP – BCWS; negative is behind schedule  Cost Performance Index (CPI): BCWP ACWP  I am only getting x¢ out of every $ Chapter 7 – Project Cost Management BCWP ACWP © www.asia-masters.com
  • 139.   Earned Value Analysis  Formulas  Schedule Performance Index (SPI): BCWP BCWS  I am only progressing x % of the planned rate  Estimate at Completion (EAC): BAC CPI  As of now we expect the total project to cost x$  Estimate to Complete (ETC): EAC – ACWP; how much will it cost from now to completion  Variance at Completion: BAC – EAC; when the project is over how much more or less did we spend (most common way of calculating EVA Chapter 7 – Project Cost Management BCWP BCWS BAC CPI
  • 140.   Earned Value Analysis  BCWP comes first in most formulas  If it is a variance, BCWP comes first  If it is an index, BCWP is divided by  If the formula relates to cost, use AWCP  If the formula related to schedule, use BWCP  Negative is bad; positive results are good  ETC refers to “this point on”; EAC refers to when job is completed Chapter 7 – Project Cost Management © www.asia-masters.com
  • 141.   Accuracy of Estimates  Order of Magnitude Estimate: -25% - 75%; usually made during Initiation Phase  Budget Estimate: -10% - 25%; usually made during the Planning phase  Definitive Estimate: -5% - 10%; usually made during the Planning phase Chapter 7 – Project Cost Management © www.asia-masters.com
  • 142.   Accounting Standards  Not usually part of the exam  Present Value (value today of future cash flows):  PV = FV (1 + r) N FV = Future Value R = Interest Rate N = Number of time periods Chapter 7 – Project Cost Management © www.asia-masters.com
  • 143.   Accounting Standards  Net Present Value: total benefits (income or revenue) less the costs. NPV is the sum of each present value of each income/revenue item  Internal Rate of Return (IRR): company may select project based on highest IRR  Payback Period: number of time periods it takes to recover the investment in the project before generating revenues  Benefit Cost Ratio (BCR): compares costs to the benefits of different projects  Greater than 1 means benefits are greater than costs  Less than 1 means costs are greater than benefits  Opportunity Cost: opportunity given up by selecting one project over another Chapter 7 – Project Cost Management
  • 144.   Accounting Standards  Sunk Costs: expended costs. Sunk costs should not be considered when determining to continue with a troubled project  Law of Diminishing Returns: the more that is put in the less of an outcome is received  Working Capital: current assets – current liabilities  Variable Cost: costs that change with the amount of production or the amount of work (materials, wages)  Fixed Cost: non-recurring costs that do not change  Direct Cost: directly attributable to project work (travel, wages, materials)  Indirect Cost: overhead items or costs for the benefit of more than one project (taxes, fringe benefits) Chapter 7 – Project Cost Management
  • 145.   Accounting Standards  Depreciation: assets lose value over time  Straight Line depreciation: same amount is taken each year  Accelerated Depreciation: 2 forms  Double Declining Balance  Sum of the Years Digits  Life Cycle Costing: includes operations and maintenance phases  Value Analysis: find a less costly way to do same work  Make or Buy decisions – at Development (Planning) phase, not conceptual phase Chapter 7 – Project Cost Management
  • 146.  Accounting Standards  Project Objectives – are not necessarily needed to fund project  Project Definition – focus on end product initially; costs and benefits will be evaluated later  25% of project lifecycle expended at end of planning  No guarantees; only most likely results  Line of Balance charts are used for manufacturing  Negative Float – the late start date is earlier than the early start date  Value Engineering/analysis – does not trade performance for cost  Prospectus – profitability and technical feasibility used to solicit funding Chapter 7 – Project Cost Management
  • 147.   Accounting Standards  Definitive Estimate –most precise/accurate estimate for determining project costs  Management Reserve – over time PM wants no change to reserve; customers wants $ back  Cost and Schedule Data – predicts future performance  ROI, Nest Present Value and Discounted Cash Flow – all can be used to measure total income vs. total $ expended  Undistributed budget – budget that contains approved scope changes but are not planned yet  Depreciation is not a measurement of profitability  Pay Back Period - # of periods required to recover the initial investment Chapter 7 – Project Cost Management
  • 148.   Project Quality Management  Processes required to ensure that the project will satisfy the needs for which it was designed  Includes all activities of the overall management function that determine the quality policy, objectives, and responsibilities. These are implemented by quality planning, quality control, quality assurance, and quality improvement. Chapter 8 – Project Quality Management
  • 149.   3 major processes:  Quality Planning – identifying quality standards that are relevant to the project (Plan); Project Manager, Project Owner  Quality Assurance – evaluating overall project performance to provide confidence that project will satisfy relevant quality standards (Implement or Execution); Project Team  Quality Control – monitoring specific results to comply with quality standards and eliminating unsatisfactory performance causes (Check or Control); Project Manager, Project Team  Compatible with ISO 9000 and 10000 series  Proprietary and non-proprietary approaches (total quality management  Must address the management of the project and the product Chapter 8 – Project Quality Management
  • 150.  Quality – the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs  Critical aspect is to turn implied needs into stated needs through project scope management  Do not confuse with grade – category or rank given to entities having the same functional use but different requirements for quality  Customer satisfaction – conformance to specifications (must produce what is stated) and fitness for use (must satisfy real needs)  Prevention – avoid mistakes vs. cost of correction  Management responsibility – requires participation of team; responsibility of management to provide resources  Processes within phases – plan-do-check-act cycle  Recognize that the investment in product quality improvements may be borne by the performing organization since the project may not last long enough to reap reward Chapter 8 – Project Quality Management © www.asia-masters.com
  • 151.   Quality Planning  Identify quality standards are relevant and how to satisfy  Inputs to Quality Planning  Quality Policy – the overall intentions and direction of an organization with regard to quality as expressed by management  Scope Statement  Product Description  Standards and Regulations  Other Process Outputs – processes from other knowledge areas (procurement planning) Chapter 8 – Project Quality Management © www.asia-masters.com
  • 152.   Tools &Techniques for Quality Planning  Benefit/Cost Analysis – consider trade-offs, benefit is less rework; cost is expense of project management activities  Benchmarking – comparing actual or planned practices to those of other projects  Flowcharting  Cause and effect diagramming (Ishikawa or fishbone diagrams) illustrate how causes relate to potential problems or effects  System or Process flowcharts – show how various elements of the system interrelate  Helps anticipation of what and where quality problems may occur  Design of Experiments – analytical technique which defines what variables have most influence of the overall outcome  Cost and schedule tradeoffs Chapter 8 – Project Quality Management
  • 153.   Outputs from Quality Planning  Quality Management Plan – describes how team will implement its quality policy; describes the project quality system – organizational structures, responsibilities, procedures, processes and resources needed to implement quality management  Operational Definitions – defines how an item is measured by the quality control process. Also known as Metrics.  Checklists – structured tool used to verify that a set of required steps has been performed  Inputs to other processes – may identify a need for further activity in another area  Quality Assurance  All planned and systematic activities implemented within the quality system to provide confidence that the project will satisfy quality standards Chapter 8 – Project Quality Management
  • 154.   Inputs to Quality Assurance  Quality Management Plan  Results of quality control measurements (testing)  Operational definitions  Tools & Techniques for Quality Assurance  Quality planning tools & techniques  Quality Audits – structured review of quality management activities to identify lessons learned  Outputs from Quality Assurance  Quality improvements – taking action to increase the effectiveness and efficiency of the project to provide added benefits to the stakeholders  Most likely will involve change control Chapter 8 – Project Quality Management
  • 155.   Quality Control – monitoring specific results to determine if they comply with quality standards and identifying ways to eliminate causes of unsatisfactory results  Includes project (deliverables) and management (cost and schedule performance) results  Awareness of statistical quality control  Prevention (keep errors out of process) and inspection (keep errors from customers)  Attribute sampling (result conforms) and variable sampling  Special Causes (unusual events) and random causes  Tolerances (acceptable range) and control limits (result falls within range) Chapter 8 – Project Quality Management © www.asia-masters.com
  • 156.  Inputs to Quality Control  Work results – include process and product results  Quality Management Plan  Operational Definitions  Checklists  Tools & Techniques for Quality Control  Inspection – activities such as testing to determine if results comply with requirements  Control Charts – plot results over time  Pareto diagrams – frequency of occurrence that identifies type or category of result (80/20 rule) – guides corrective action  Statistical sampling – select population of interest for inspection  Flowcharting  Trend Analysis – forecast future outcomes based on historical results  Technical performance (# of errors identified; # of errors that remain)  Cost and Schedule performance (activities per period with significant variances) Chapter 8 – Project Quality Management
  • 157.   Outputs from Quality Control  Quality Improvement  Acceptance Decisions (accept/reject)  Rework – action to bring defective item into compliance  Frequent cause of project overruns  Completed checklists  Process Adjustments – immediate corrective/preventive actions  Most likely involves change control Chapter 8 – Project Quality Management © www.asia-masters.com
  • 158.  Tips from the Review Guide  Philosophy: definition of quality, avoidance of “gold plating” – giving customer extras, prevention over inspection  “Conformance to requirements, specifications and fitness of use”  Quality Management – processes required to ensure that the project will satisfy the needs for which it was undertaken  Continuous Improvement - small improvements to reduce costs and ensure consistency  Marginal Analysis – optimal quality is reached at the point when revenue from improvement equals the costs to secure it  Just in Time - decrease amount of inventory/decrease investment Chapter 8 – Project Quality Management © www.asia-masters.com
  • 159.   Tips from the Review Guide  ISO 9000 or 10000 – standards to ensure that corporations follow their own quality procedures  Total Quality Management – continuous improvement in business practices  Normal Distribution – most common probability – used to measure variations  Standard deviation (sigma) – measure how far away from the mean (dotted vertical line)  3 or 6 sigma – represents level of quality  +/- 1 sigma equal to 68.26%  +/- 2 sigma equal to 95.46%  +/- 3 sigma equal to 99.73%  +/- 6 sigma equal to 99.99% Chapter 8 – Project Quality Management
  • 160.  Tips from the Review Guide  Responsibility to quality – entire organization  Ultimate – employee  Overall or Primary – Project Manager  Design and Test Specifications – engineer  Prevention over inspection – quality must be planned in not inspected in Chapter 8 – Project Quality Management
  • 161.   Tips from the Review Guide  Cost of conformance vs. non-conformance  Quality Training vs. rework  Studies vs. Scrap  Surveys vs. Inventory Costs and warranty costs  Quality Planning (Plan) – determine what will be quality on project and how quality will be measured – done during Planning Phases  Identifying which standards are relevant to project – how to satisfy them  Benchmarking – look at past projects to determine ideas for improvement  Cost Benefit Analysis  Flowcharts (fishbone) Chapter 8 – Project Quality Management
  • 162.   Tips from the Review Guide  Quality Assurance (Implement) – determine if your measurement of quality is appropriate – done during Execution phases  Process of evaluating overall performance on a regular basis  Quality Audits – structured review of quality activities that identify lessons learned Chapter 8 – Project Quality Management © www.asia-masters.com
  • 163.   Tips from the Review Guide  Quality Control (Check) – perform the measurement and compare to the quality plan – done during Control phases  Process of monitoring specific project results to determine if they comply with relevant quality standards and identify ways of eliminating unsatisfactory performance  Performance of the measurement or process, using quality control tools – checking work Chapter 8 – Project Quality Management © www.asia-masters.com
  • 164.   Tips from the Review Guide  Quality Control Tools  Pareto Diagrams – 80/20 rule – the chart presents the information being examined in its order of priority and helps focus attention on the most critical issues  Fishbone diagram (Cause and Effect)  A creative way to look at the causes or potential causes of a problem  Helps stimulate thinking, organizes thoughts and generates discussion  Can be used to explore a desired future outcome and the factors to which it relates Chapter 8 – Project Quality Management © www.asia-masters.com
  • 165.   Tips from the Review Guide  Quality Control Tools  Checklists – list of items to inspect  Control Charts – graphic displays of the results over time – used to determine if a process is in control  Upper and Lower Control Limits – two dashed lines – show the acceptable range of a variation – range determined by company’s quality standard (sigma)  Mean – line in the middle – shows middle of the range of acceptable results  Specification Limits – 2 solid lines outside the upper and lower control limits – represent the customer's expectations/requirements of quality Chapter 8 – Project Quality Management © www.asia-masters.com
  • 166.   Tips from the Review Guide  Quality Control Tools  Out of Control – process is out of control when:  A data point falls outside of the upper or lower control limit  Non-random data points are within the upper control and lower control limits  Rule of 7 – non-random points outside the mean - process should be investigated  Assignable Cause – data point the requires investigation to determine the cause of the variation Chapter 8 – Project Quality Management
  • 167.  PMI and Deming  Cost of conformance – 85% of costs of quality are responsibility of Management  Quality Training – Rework  Studies – Scrap  Surveys – Inventory and Warranty costs  Crosby – absolutes of quality  Performance standard is zero defects; measurement system is cost of non-conformance  Continuous Improvement  Japanese (Kaizen) Chapter 8 – Project Quality Management © www.asia-masters.com
  • 168.   Marginal Analysis – optimal quality is reached when incremental revenue from improvement equals incremental cost to secure  Variable – characteristic to be measured  Attribute – measurement (objective or subjective)  Increase quality = increased productivity, increased cost effectiveness, decreased cost risk Chapter 8 – Project Quality Management © www.asia-masters.com
  • 169.  Review Guide Tips  Primary responsibility for quality management is the PM  Results of increase in quality  Increased productivity  Increased cost effectiveness  Decreased cost risk  Quality attributes – can be subjective, objective and are specific characteristics for which a project is designed and tested  Quality assurance – example is team training  Cost of Conformance = team training Chapter 8 – Project Quality Management © www.asia-masters.com
  • 170.   Review Guide Tips  Marginal Analysis: optimal quality is reached when incremental revenue from improvement equals the incremental cost to secure  Standard Deviation: how far away from mean  Variable: characteristic you want to measure  Attribute: measurement (subjective or objective)  Ultimate Responsibility – Employee  Overall Responsibility – PM  Design/Test Specifications - Engineer Chapter 8 – Project Quality Management
  • 171.   Review Guide Tips  If quality sample size increases, the quality control band decreases  Product Cost plus Operations and Maintenance costs increase perceived value when balanced  Cost of Conformance = training  Crosby Absolutes of Quality – performance of standard is zero defects and the measurement system is the cost of non-conformance  Deming & Japanese are associated with Quality Improvement programs  Quality Control – performed by operating Chapter 8 – Project Quality Management
  • 172.   Review Guide Tips  Quality objectives are approved in conceptual stage by project owner  QA – auditing function that provides feedback to team and client about quality of output being produced  If sample size is a constant and acceptance numbers increase, the producers risk decreases and consumer risk increases  85% of costs of quality are direct responsibility of management Chapter 8 – Project Quality Management
  • 173.   Project Human Resource Management  Processes required to make the most efficient use of people  3 major processes:  Organizational Planning  Staff Acquisitions  Team Development  Keep in mind of transient nature of projects  Apply techniques that apply to current project needs  Ensure HR compliance with project management activities Chapter 9 – Human Resource Management © www.asia-masters.com
  • 174.   Project Human Resource Management  1,9 manager = good relationship with team  Project Organization  Conflict between PM and Functional Managers  Dual allegiance of team members  Complex prioritization of resources  Loss of developed procedures on project dissolution  Compromise = both sides will lose  Delegation  Defer the decision  Interpreted as passive  Emphasize task vs. personnel  Can be frequently used Chapter 9 – Human Resource Management
  • 175.   Project Human Resource Management  If there is a team of experts, PM decisions will promote high satisfaction  Functional/Project Managers likely to exercise:  Power  Authority  Influence  Traditional organization forms have no single point of contact for client/sponsor Chapter 9 – Human Resource Management © www.asia-masters.com
  • 176.   Organizational Planning  Identifying, documenting and assigning project roles, responsibilities, and reporting relationships  Individual and group assignments  Internal and external employees  Linked with communication planning Chapter 9 – Human Resource Management © www.asia-masters.com
  • 177.   Inputs to Organizational Planning  Project Interfaces  Organizational interfaces – formal and informal reporting relationships among organizational units  Technical interfaces - formal and informal reporting relationships among technical disciplines  Engineers, manufacturers, electrical, etc.  Interpersonal interfaces – formal and informal reporting relationships among individuals  Staffing Requirements – define skill sets from individual/group in particular time frames Chapter 9 – Human Resource Management
  • 178.   Inputs to Organizational Planning  Constraints – factors that limit project team’s options  Organizational structure (strong vs. weak matrix)  Collective bargaining agreements – contractual arrangements  Preferences of project management team  Expected staff assignments Chapter 9 – Human Resource Management
  • 179.  Tools & Techniques for Organizational Planning  Templates – reuse a similar project’s role and responsibility definitions  Human Resource Practices – corporate policies, guidelines, and practices  Organizational Theory – how organizations are structured  Stakeholder Analysis – needs of stakeholders are ensured Chapter 9 – Human Resource Management © www.asia-masters.com
  • 180.   Outputs from Organizational Planning  Role and Responsibility Assignments – can vary over time, closely linked to scope definition. Utilizes a Responsibility Assignment Matrix (RAM) to define responsibility for each item in the Work Breakdown Structure/task list  Staffing Management Plan – when and how personnel are included and removed from the project team  Resource leveling, reduce transition periods, eliminate “dead time” between assignments, sensitivity to morale  Organizational Chart – display reporting relationships  Supporting Detail  Organizational impact  Job descriptions  Training needs Chapter 9 – Human Resource Management © www.asia-masters.com
  • 181.   Staff Acquisition  Ensure resources are available for project work  Inputs to Staff Acquisition  Staffing Management Plan  Staffing Pool Description  Previous experience  Personal interests  Personal characteristics  Availability  Recruitment Practices Chapter 9 – Human Resource Management
  • 182.   Tools & Techniques for Staff Acquisition  Negotiations with functional managers and other teams  Staff utilization and corporate politics  Pre-assignment – result of a competitive proposal, or an internal initiative  Procurement – outside services are needed (lacking internal skills or availability can not be met)  Outputs from Staff Acquisition  Project staff assigned  Project Team Directory – contact list Chapter 9 – Human Resource Management
  • 183.  Team Development – enhancing stakeholders to contribute along with maintaining the project team’s functionality  Personal development is the foundation  Team members often balance responsibilities to a functional manager and project manager  Critical to success of project  Inputs to Team Development  Project Staff  Project Plan  Staffing Management Plan  Performance Reports  External Feedback  Periodic measurements of performance Chapter 9 – Human Resource Management © www.asia-masters.com
  • 184.   Tools & Techniques for Team Development  Team-building activities  General Management Skills  Reward and recognition systems  Promote desired behavior  Must be achievable; apply to the project  Cultural differences recognition  Co-location – place members in physical location  Training – enhance skills, knowledge, and capabilities of project team  Must be factored in cost analysis of project Chapter 9 – Human Resource Management
  • 185.   Outputs from Team Development  Performance Improvements  Individual skills  Team Behavior  Identify more efficient methods of work  Input for performance appraisals Chapter 9 – Human Resource Management © www.asia-masters.com
  • 186.   Review Guide Tips  Roles and responsibilities  Project Manger – plan, estimate and schedule of project  Team – help prepare the WBS, Network Diagrams, and estimate time for tasks, complete tasks  Senior Management – approve Overall project plan, budget and schedule and to approve any changes that are made to those figures  The person experiencing the problem must try to solve it themselves as long as means are in their control  Powers:  Formal (legitimate)  Reward  Penalty (coercive)  Expert (earned)  Referent – authority of a higher position Chapter 9 – Human Resource Management
  • 187.   Review Guide Tips  Best are Expert and Reward; Penalty is the worst  Formal, Reward and Penalty derived from PM’s position within the company  Conflict  Inevitable consequence of organizational interactions  Can be beneficial  Resolved by identifying the causes and problem solving by people that are involved & their immediate manager  Nature of project  Limited power of the project manager  Necessity for obtaining resources from functional managers Chapter 9 – Human Resource Management
  • 188.   Review Guide Tips  Avoid conflict  Informing the team  Clearly assigning tasks without ambiguity  Challenging and interesting work assignments  Conflict Sources (in order of frequency)  Schedules  Project Priorities  Resources  Technical opinions  Administrative Procedures  Cost  Personality Chapter 9 – Human Resource Management © www.asia-masters.com
  • 189.   Review Guide Tips  Motivational Theories  Maslow’s Hierarchy of Needs – people work to get a chance to contribute and use their skills  ‘self-actualization’  McGregor’s Theory of X and Y  X – people need to be watched every minute  Y – people willing to work without supervision  Herzberg’s Theory – poor hygiene factors destroy motivation but improving them will not improve motivation  Motivating Agents  Responsibility  Self-actualization Chapter 9 – Human Resource Management
  • 190.   Review Guide Tips  Responsibility Charts  Matrix – cross references team members with tasks (does not show time – when job is done)  Histogram – months vs. number of resources  Gantt Chart – shows when staff allocated to tasks  Leadership Skills  Directive  Facilitating  Coaching  Supportive  Team Building Skills Chapter 9 – Human Resource Management
  • 191.   Review Guide Tips  Projectized Organization  Conflict between PM and Functional Managers  Dual Allegiance of team members  Complex prioritization of resources  Loss of developed procedures on project dissolution  Compromise – both sides will lose  Delegation  Defer the decision  Interpreted as passive  Emphasize task vs. personnel  Can be frequently utilized Chapter 9 – Human Resource Management
  • 192.   Project Communications Management  Processes to ensure timely and proper generation, collection, dissemination and disposition of project information  General communications management  Communications Planning – determining informational needs, who needs what and when; 90% of PM’s time is spent communicating  Information Distribution – making information available  Performance Reporting – collecting and disseminating project information  Administrative Closure – formalize project/phase completion Chapter 10 – Project Communications Management
  • 193.   Communications Planning  Determining information requirements of stakeholders  Tightly linked with organizational planning  Inputs to Communications Planning  Communication requirements – sum of the information requirements of the stakeholders  Define type and format of information with analysis of value of information  Project organization and stakeholder responsibility relationships  Disciplines, departments and specialties involved in project  Logistics of number of individuals at location  External communication needs (media) Chapter 10 – Project Communications Management
  • 194.   Communication Technology – used to transfer information  Immediacy of need for information  Availability of technology  Expected project staffing – compatible with personnel experience  Length of project – will technology change during duration?  Constraints – factors that limit project team’s options  Assumptions Chapter 10 – Project Communications Management © www.asia-masters.com
  • 195.   Tools & Techniques for Communication Planning  Stakeholder analysis – informational needs should be analyzed to develop methodology suited for the project; eliminate unnecessary information or technologies  Outputs from Communications Planning  Communication Management Plan  Collection and filing structure to detail the gathering and storage of information; updating and dissemination  Distribution structure – who gets info in certain format; compatible with project organization chart  Description of information included – format, level of detail, conventions  Production schedules of each type of communication  Methods for accessing information  Method for updating and refining communications plan Chapter 10 – Project Communications Management
  • 196.   Information Distribution – making information available in a timely manner by implementing the communications plan; responding to requests for information  Inputs to Information Distribution  Work Results  Communication Management Plan  Project Plan Chapter 10 – Project Communications Management © www.asia-masters.com
  • 197.   Tools & Techniques for Information Distribution  Communication Skills – used to exchange information. Sender is responsible for clarity; receiver is responsible for receipt and understanding  Information retrieval systems – filing systems, software  Information distribution systems – meetings, correspondence, networked databases, video/audio conferencing  Outputs from Information Distribution  Project Records – maintained in an organized fashion Chapter 10 – Project Communications Management
  • 198.  Performance Reporting  Collecting and disseminating performance indicators to provide stakeholders information how resources are achieving project objectives  Status reporting  Progress reporting  Forecasting  Project scope, schedule, cost and quality, risk and procurement  Inputs to Performance Reporting  Project Plan  Work Results – deliverables completed, % completed, costs incurred  Other Project records Chapter 10 – Project Communications Management © www.asia-masters.com
  • 199.   Tools & Techniques for Performance Reporting  Performance reviews – meetings to assess status  Variance Analysis – comparing actual results to planned or expected results (baseline); cost and schedule most frequent  Trend Analysis – examining results over time to determine performance  Earned Value Analysis – integrates scope, cost and schedule measures – calculate 3 keys:  Budgeted Cost of Work (BCWS) – portion of approved cost estimate planned to be spent on activity during a given period  Actual Cost of Work Performed (ACWP) – total of direct and indirect cost incurred in accomplishing work on activity in a given period  Earned Value (Budgeted Cost of Work Performed – BCWP) – percentage of total budget equal to percentage of work actually completed  Cost Variance (CV) = BCWP – ACWP  Schedule Variance (SV) = BCWP – BCWS  Cost Performance Index (CPI) = BCWP/ACWP  Chapter 10 – Project Communications Management